BUILDING THE FUTURE WITH BASE METALS

Transcription

1 December 2018 BUILDING THE FUTURE WITH BASE METALS

2 FORWARD LOOKING STATEMENTS This presentation includes certain "forward-looking statements" and forward looking information (as defined under applicable securities laws), based on management s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the plans for future exploration and development of the Pangeni Copper Project and the acquisition of additional base metal projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts", "anticipates" "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such statements, including but not limited to: risks related to the Pangeni Copper Project; risks related to international operations; risks related to general economic conditions, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including copper and other base metals; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in resource estimates, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration, development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which the Company operates. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. The Company disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any forward-looking statements or forward looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to the Company s most recent filings under its profile at including its Filing Statement dated July 18, 2018 for further information respecting the risks affecting the Company and its business. John Wilton (Pr.Sci.Nat), President, CEO and Director of BeMetals Corp. is the qualified person for the purposes of the National Instrument Standards of Disclosure for Mineral Projects (NI ), and he has reviewed and approved the technical disclosure contained in this presentation. 2

3 DIRECTORS, MANAGEMENT & ADVISORS CLIVE JOHNSON DIRECTOR Currently serves as President, CEO & Director at B2Gold (NYSE: BTG, TSX: BTO) and previously at Bema Gold (NYSE & TSX: BGO). Collectively he has raised over US$2 billion in equity and debt financings for the construction of numerous profitable operating mines around the globe. Today, B2Gold has grown to become a leading senior gold producer. TOM GARAGAN, BSc (Honours) Geology DIRECTOR Currently serves as Senior Vice President, Exploration at B2Gold (NYSE: BTG, TSX: BTO) and previously at Bema Gold (NYSE & TSX: BGO). He has led the exploration teams which have discovered over 32 million ounces of gold, 6 billion pounds of copper and 56 million ounces of silver. His teams discoveries include Refugio and Cerro Casale in Chile as well as Kupol in far-east Russia. DEREK IWANAKA, B.Comm (Marketing) VP, INVESTOR RELATIONS & CORPORATE DEVELOPMENT Brings a wealth of investor relations and marketing experience. During his 15+ years in the mining sector he has built an extensive network of analysts, news letter writers, retail investors and institutional investors. He started his career with Bema Gold (NYSE & TSX: BGO) in 2002 and has since been instrumental in the mergers, acquisitions, and divestures of over 20 gold, silver, nickel, and uranium properties and companies. JOHN WILTON, BSc (Honours) Geology PRESIDENT, CEO & DIRECTOR 28 years of experience in the minerals industry including roles in target generation, feasibility studies, and business development for base and precious metals. From , he was the Regional Exploration Manager of Africa at Antofagasta PLC. He was also a senior member of both the discovery and resource development teams of the Otjikoto Gold Mine in Namibia with AnglovaalMining. ROGER RICHER, BA, LLB DIRECTOR Serves as the Executive VP, General Counsel & Corporate Secretary of B2Gold (NYSE: BTG, TSX BTO) and previously at Bema Gold (NYSE & TSX: BGO). Currently he oversees the legal affairs, corporate records and corporate governance of B2Gold. KRISTEN REINERTSON CHIEF FINANICAL OFFICER, CORPORATE SECRETARY & DIRECTOR Also currently serves as Vice President, Corporate Finance of Fiore Management & Advisory Corp. where she has over 10 years of experience in corporate administration and financial advisory services for public companies in the natural resource sector. RICHARD SILLITOE, Ph.D. TECHNICAL ADVISOR - ECONOMIC GEOLOGIST World-renowned economic geologist who has been an economic geological consultant for over 40 years and has worked in more than 100 countries. He has made major contributions to the discovery of a variety of deposits and has authored over 130 economic geology articles as well as three books. Specializes in deposit modeling using field observations and drill core. DENNIS STANSBURY, P.Eng TECHNICAL ADVISOR - MINING ENGINEER Serves as Senior Vice President, Engineering & Project Evaluations at B2Gold (NYSE: BTG, TSX: BTO) and was previously Senior VP, Development & Production at Bema Gold (NYSE &TSX: BGO). He has over 40 years of engineering, construction, production and management experience at surface and underground mines in fifteen different countries. Lead the development teams in completing 5 mines on schedule and on budget. 3

4 OUR STRATEGY AND COMPETITIVE ADVANTAGE THE NEW PLAYER IN BASE METAL EXPLORATION & DEVELOPMENT Assemble a balanced portfolio of base metal projects focused on acquiring: 1. Near-term development assets or producing mines with expansion and exploration potential 2. Exploration properties with worldclass discovery potential Founded by executives of B2Gold Corp. who have a demonstrated track record of identifying, funding, constructing, and operating numerous mines around the globe. Utilize the team s extensive network to access large deal flow of projects and lever their technical expertise to select high-value projects for exploration, development and production. Utilize the founding team s demonstrated banking relationships and ability to raise over US$2B for global acquisitions, exploration, construction and operation of 10 mines world-wide. Building a base metal company that will focus on efficient delivery of high value exploration and mining development projects. 4

5 OUR GROWTH STRATEGY 1. Acquire a flagship development stage base metal project using the following guiding criteria: Quality: High value ore with robust mine economics Stage: DFS, PFS, or PEA (Short-lead time to production) Size: Initial moderate tonnage and capex (credibility to JV larger scale projects) Potential Deposit Types: VMS, Skarn, Vein-hosted, Oxide, Sediment-hosted Jurisdiction: Open to a range of regions (Team has extensive global experience) 2. Exploration of Pangeni Copper Project Advancing early-stage exploration with Tier 1 discovery potential 3. Build a balanced portfolio of projects Expedite growth with parallel development and exploration assets DFS = Definitive Feasibility Study PFS = Pre-feasibility Study PEA = Preliminary Economic Assessment Capex = Capital Expenditure VMS = Volcanogenic Massive Sulphide 5

6 MANAGING RISK OUR COMPETITIVE ADVANTAGE PROVEN TRACK RECORD OF MANAGING POLITICAL, PERMITTING, AND FINANCING RISKS 1988 Chile 1998 Russia 2003 (& 1990) South Africa 2004 Zambia 2009 Nicaragua 2011 (& 1999) Namibia 2013 Philippines 2014 Mali 2014 (& 1988) USA RESPECT FAIRNESS TRANSPARENCY ACCOUNTABILITY Building positive relationships in the communities and at all levels of government in the regions in which we operate Adopting a winwin approach Ongoing commitment to stakeholders including shareholders, employees and local communities Delivering on our promises 6

7 PROVEN TRACK RECORD 10,286% GROWTH ,200% GROWTH BEMA GOLD Est. on Dec. 8 with a Market Capitalization of CDN$33.7 M BEMA GOLD Acquired by Kinross Gold for CDN$3.5 B B2GOLD IPO d on Dec.6 for proceeds of CDN$100 M B2GOLD Current Market Capitalization of CDN$3.3 B BeMetals Current Market Capitalization of CDN$18 M This is just the beginning! Kupol Gold Mine, Russia B2Gold s Otjikoto Mine, Namibia 7

8 THE WORLD NEEDS BASE METALS Uses of Copper Highly Conductive Building construction Electrical & electronics Transportation equipment Consumer products Machinery Uses of Zinc Anti Corrosive Building construction Consumer products Galvanized steel such as in car bodies Electrical & Electronics Transportation 8

9 THE WORLD NEEDS BASE METALS: GROWING COPPER DEMAND A Shortfall of Copper Supply Is On The Horizon Tonnes (In thousands) 35,000 30,000 25,000 20,000 15,000 Annual consumption growth estimated at 1.8% and has averaged 2.5% over the last 40 years Existing Mines Refined Production 5Mt 10, Source: RBC Capital Markets estimates: Wood Mackenzie 9

10 THE WORLD NEEDS BASE METALS: SHRINKING COPPER SUPPLY 6 month LME Cu Warehouse Stock Levels 5 year LME Cu Warehouse Stock Levels Tonnes (In Thousands) % Decrease Tonnes (In thousands) % Decrease 0 5/7/2018 6/6/2018 7/6/2018 8/7/2018 9/6/ /8/ /6/2013 9/8/2014 7/9/2015 5/10/2016 3/10/2017 1/10/

11 THE WORLD NEEDS BASE METALS GROWING ZINC DEMAND Global Consumption of Zinc Tonnes (in thousands) 16,000 14,000 12,000 10,000 8,000 6,000 10,648 11,000 11,000 11,219 11,574 32% Increase 10,914 12,646 12,726 12,378 13,148 13,674 13,398 13,752 14,071 4,000 2, Source: Statista 11

12 THE WORLD NEEDS BASE METALS: SHRINKING ZINC SUPPLY 6 month LME Zn Warehouse Stock Levels 5 year LME Zn Warehouse Stock Levels Tonnes (In Thousands) Decrease Tonnes (in thousands) % Decrease /7/2018 6/6/2018 7/6/2018 8/7/2018 9/6/ /8/ /6/2013 9/8/2014 7/9/2015 5/10/2016 3/10/2017 1/10/

13 ZAMBIAN COPPERBELT: PANGENI EXPLORATION PROJECT ZAMBIA World-class exploration potential under the Kalahari sand cover in the Copperbelt Recent history of new mine developments: First Quantum: Kansanshi Mine, Sentinel, Kansanshi Smelter Barrick: Lumwana Mine BeMetals can earn up to 72% of Pangeni property through an agreement with Copper Cross Zambia and Pangeni Mineral Resources by: 1. US$2.5M expenditures on property over 2 years and cash payments of US$300k & 500k shares (for 67.5%) 2.Completing a feasibility study & US$750k (for 4.5%) DRC Kamoa Kolwezi Kakula Angola PANGENI COPPER PROJECT Kansanshi Sentinel Lumwana Konkola Nchanga Nkana Zambia Central AfricanCopperbelt Pre 2000 Discovery/Mine Development Post 2000 Discovery/Mine Development Mufulira Baluba/Luanshya 200 km Population of 16.5 million Stable democracy & judicial system Strong and long history of copper mining which is a fundamental sector of Zambia s economy Mining corporate tax = 35% Variable copper price based royalty 13

14 PANGENI JV: REGIONAL PEDIGREE & COMPETITORS Ivanhoe Mines Kamoa-Kakula Deposits Combined Indicated Resource: 80.7 Blbs Cu Metal (1) Combined Inferred Resource: 13.0 Blbs Cu Metal (1) Kamoa Kolwezi BeMetals Pangeni Property Covers 575km 2 Mining Operation N First Quantum Minerals - Trident Indicated Resource: 12.0 Blbs Cu Metal Inferred Resources: 1.1 Blbs Cu Metal Kakula First Quantum Minerals - Kansanshi Indicated Resource: 11.0 Blbs Cu Metal Inferred Resources: 5.8 Blbs Cu Metal Footnotes: (1) At 1.0% Cut-off Grade (Cu%) PANGENI JV PROJECT Trident Kansanshi Lumwana Barrick - Lumwana Indicated Resource: 7.7 Blbs Cu Metal Inferred Resources: 2.2 Blbs Cu Metal Konkola Nchanga Nkana Mufilara Baluba Luanshya Zambian Copperbelt - Kafue Anticline Deposits Combined Indicated Resource: Blbs Cu Metal 14

15 PANGENI JV: PROOF OF CONCEPT INITIAL RESULTS CENTRAL TARGET Discovery of significant Cu + Co mineralization with setting similar to other mines in Zambian Copperbelt Intersections: CT1, 0.34% Cu (and 320ppm Co) (from 39m) CT3, 0.35% Cu (from 176m) Other meaningful Cu mineralized zones intersected Mineralization over at least 500m strike, >25km strike potential of thrust structure under thin cover Chalcopyrite, CT1, 147m Bornite, CT3, 198m SW TARGET Discovery of a significant Cu mineralized system Intersections: SW1, 0.30% Cu (from 121.5m) SW1, 0.48% Cu (from 142.5m) SW2, 0.28% Cu (from 112.1m) Other meaningful Cu mineralized zones intersected Mineralization over at least 1200m strike; strike potential several km Chalcopyrite, SW1, 135m Chalcopyrite, SW1, 148m 15

16 PANGENI JV: HIGH VALUE EXPLORATION POTENTIAL aircore Line D2 3 Diamond-drilled core boreholes at Central Target Line C4 Line A CT2 CT3 CT1 Line B Central Target: Copper Clearing Central Target Line E5 SW Target Line E3 SW1 SW2 Extent of next map Line E2 2 Diamond-drilled core boreholes at SW Target Possible extension of Zambian Copperbelt Extensive but thin Kalahari sand cover and limited historical exploration in this region Completed Phase 1 aircore drill program of US$300k; Yielding encouraging results Completed Phase 2 aircore drill program of US$300K in November 2018; Results pending 16

17 SW TARGET PHASE 1 AIRCORE RESULTS Line E2 Phase 1 aircore drill results. See news release dated November 15,

18 PANGENI JV: COPPERBELT SCALE DELIVERY POTENTIAL Line D2 Line C4 Basement Units Central Thrust Belt Line A Line B Central Target CENTRAL TARGET COPPER DISCOVERY CT1, 0.34% Cu, 320ppm Co (from 39m) CT3, 0.35% Cu (from 176m) Line E3 Line E5 Line E2 SW TARGET COPPER DISCOVERY SW TARGET South West Target COPPER DISCOVERY SW1, 0.30% Cu (from 121.5m) SW1, 0.48% Cu (from 142.5m) Basement Units 18

19 CORPORATE OVERVIEW (As of November 30, 2018) SHARE OWNERSHIP CAPITAL STRUCTURE Retail 64% Insiders & Advisors 36% Issued & Outstanding Stock Options Fully Diluted Shares 68.1 M 6.3 M 74.4 M SHARE PRICE PERFORMANCE ENTERPRISE VALUE Share Price (CDN$) $0.40 $0.30 $0.20 $0.10 $ Jul Aug Sep Oct Nov Volume (in thousands) Market Cap Cash Debt C$16.0 M ~C$1.0 M NIL 19

20 INVESTMENT HIGHLIGHTS - VALUE PROPOSITION 1. Led by an experienced base metals management team. Supported by some of the best mine finders, builders, and operators in the mining industry. 2. Large access to deal flow. Targeting to acquire a high-value base metal (primarily copper and/or zinc) near-term development assets that can be efficiently brought into production. 3. Access to equity and debt financing. Even under challenging market conditions our team has demonstrated an ability to access capital for acquisitions and mine building. 4. Building a balanced portfolio. Focused on acquiring cornerstone development project(s) and value adding discovery. 20

21 Contact Us Derek Iwanaka Vice President, Investor Relations & Corporate Development Tel: BeMetals Corp. Suite 3123, 595 Burrard Street PO Box Vancouver, BC Canada V7X 1J1 Web: FOLLOW US 21