INVESTOR PRESENTATION NOVEMBER 2016

Transcription

1 INVESTOR PRESENTATION NOVEMBER 2016

2 DISCLAIMER Neither the issue of this Presenta/on nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transac/on and the right is reserved to terminate any discussions or nego/a/ons with you. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connec/on with any appraisal or inves/ga/on of the Company. In furnishing this Presenta/on, the Company does not undertake or agree to any obliga/on to provide the recipient with access to any addi/onal informa/on or to update this Presenta/on or to correct any inaccuracies in, or omissions from, this Presenta/on which may become apparent. This Presenta/on should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In par/cular, this Presenta/on does not cons/tute an offer or invita/on to subscribe for or purchase any securi/es and neither this Presenta/on nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presenta/on is made available must make its own independent assessment of the Company ader making such inves/ga/ons and taking such advice as may be deemed necessary. In par/cular, any es/mates or projec/ons or opinions contained herein necessarily involve significant elements of subjec/ve judgment, analysis and assump/ons and each recipient should sa/sfy itself in rela/on to such magers. This Presenta/on may contain forward- looking statements that reflect the Company s current expecta/ons regarding future events, its liquidity and results of opera/ons and its future working capital requirements and capital raising ac/vi/es. Forward- looking statements involve risks and uncertain/es. Actual events could differ materially from those projected herein and depend on a number of factors, including the success of the Company s development strategies, the ability of the Company to obtain addi/onal financing for its opera/ons and the market condi/ons affec/ng the availability and terms of such financing. These forward- looking statements speak only as at the date of this Presenta/on. The Company expressly disclaims any obliga/on or undertaking to disseminate any updates or revisions to any forward- looking statements contained in the Presenta/on to reflect any change in the Company s expecta/ons with regard thereto or any change in events, condi/ons or circumstances on which any such statements are based. As a result of these factors, prospec/ve investors are cau/oned not to rely on any forward- looking statement. Neither this Presenta/on nor any copy of it may be: (a) taken or transmiged into Canada, Japan, the Republic of South Africa or the United States of America (each a Restricted Territory ), their territories or possessions; (b) distributed to any U.S. person (as defined in Regula/on S under the United States Securi/es Act of 1933 (as amended)); or (c) distributed to any individual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicita/on or invita/on to buy or subscribe for any securi/es or in the context where its distribu/on may be construed as such offer, solicita/on or invita/on, in any such case except in compliance with any applicable exemp/on. The distribu/on of this Presenta/on in or to persons subject to other jurisdic/ons may be restricted by law and persons into whose possession this Presenta/on comes should inform themselves about, and observe, any such restric/ons. Any failure to comply with these restric/ons may cons/tute a viola/on of the laws of the relevant jurisdic/on. By par/cipa/ng in and/or accep/ng delivery of this presenta/on you agree to be bound by the foregoing restric/ons and the other terms of this disclaimer. 2

3 COMPANY SNAPSHOT Market Capitalisa3on 9.0m Share Price 0.85p Tschudi Tsumeb (acid) Towns Mines Number of Shares in Issue As of 23 rd Nov 2016 Key Shareholders million Orion 24.6% Walvis Bay (port) Matchless Otjihase Windhoek (capital) Main Assets Tschudi Open Pit Mine Otjihase & Matchless Logiman 11.1% L&G Investment Management 9.4% Polo Resources Limited 5.2% Christopher Chambers 4.3% Directors & related par/es 3.5% Namibia Epangelo 2.6% Total 60.7% As of 25 th Oct 2016 Debt USD Orion 105.4m As of 1 st July

4 TSCHUDI A new open pit, heap leach, SX- EW opera/on producing 17ktpa of LME Grade A copper cathode Solvent Extrac3on Heap Leach Crush & Agglomerate Electro- Winning Open Pit 4

5 TSCHUDI A de- risked producing asset with excep/onal nearby infrastructure Na/onal Highway Regional Substa/on Smelter & Acid Plant Tschudi 66kV Powerline Tsumeb Rail 5

6 TSCHUDI KEY STATISTICS Interim and Final Pits Project Descrip3on Mine type Resources Reserve (O.P) Mine life Open pit 49.7mt at 0.8% Cu 22.7mt at 0.85% Cu 9 years Stripping ra/o 6.3 to 1 Processing Method Processing rate Heap Leach, Solvent Extrac/on, Electro- Winning (SX- EW) 2.6mt/yr ore Typical cross sec/on Annual Produc/on 17,000t Cu As of 30 June

7 TSCHUDI SUMMARY Open pit copper mine producing 17ktpa of LME Grade A cathode for the next 9 years at US$1.75/lb C1 De- risked producing asset with excellent infrastructure paved roads, rail, port, grid power, excellent industrial services, reliable water supply, adjacent sulphuric acid supply from Dundee s Tsumeb smelter Brand new plant built on /me and on budget by the Weatherly team a modern site with no legacy issues SX- EW capacity for 20ktpa mine & leach scheduling op/misa/on in progress Competent Namibian management team in place who built it, commissioned it and ramped it up Declining acid consump/on forecast 11.4kg/t is low by industry standards Recovery of 85% of total copper for panels completed to date on target Refined copper cathode product trucked to Walvis Bay port and sold to Orion at point of export

8 OTJIHASE & MATCHLESS Otjihase & Matchless are two established underground copper mines and a concentrator adjacent to the Namibian capital city of Windhoek Otjihase Windhoek Matchless 8

9 OTJIHASE & MATCHLESS Two underground copper mines and an 800ktpa concentrator on care and maintenance - opera/ng un/l Sep 2015, producing high quality copper concentrate sought ader for blending Mines and concentrator being maintained ready for immediate restart, with underground workings dewatered and faces accessible Excellent infrastructure adjacent to Windhoek, power and water supply secure, road and/or rail to port, excellent industrial services Evalua/ng poten/al opportunity to produce 10-12ktpa at US $2/lb C1 for the next 10 years for capex of under US$10M Would represent one of the lowest capital intensity copper projects in the world Geology and metallurgy risks low Oqake agreement in place concentrate trucked to Walvis Bay port and sold to Louis Dreyfus at point of export

10 WHY WEATHERLY? Produc/on target in Namibia of 30ktpa within 3 years at less than US$2/lb with minimal capex Highly- leveraged to copper price Skilled developer and operator of medium sized base metal mines in Africa with proven project development exper/se and specific capabili/es in open pit & underground mining, plus heap leach, SX- EW and flota/on processing technologies Seeking to apply this compe//ve advantage to new opportuni/es in low- risk parts of Africa

11 GROWTH OPPORTUNITY Strategic target production growth 35,000 30,000 25,000 Copper (t) 20,000 15,000 10,000 5, Tschudi Otjihase 11

12 NAMIBIA S INVESTMENT ENVIRONMENT Consistently ranked in the top four African countries by the Fraser Ins/tute in terms of the Policy Percep/on Index which serves as a report card on the agrac/veness of government mining policies. Stable mul/- party democracy; promotes foreign investment; has a long established Mining Act; and operates under an independent legal system. Weatherly has been opera/ng in Namibia for ten years and enjoys a construc/ve and transparent rela/onship with relevant Ministries and authori/es, and is a member of the Council of the Namibian Chamber of Mines. Local Boards with strong majority Namibian representa/on, experienced Namibian senior management, and the Chief Execu/ve Officer has resided in Namibia for the last six years. Weatherly explicitly supports Government s Harambee Prosperity Plan and longer term development plans. Namibian en//es hold 6.6% equity in the assets. 12

13 SENIOR MANAGEMENT Peter Chris3ans (Tschudi General Manager) is a Namibian mining engineer with over 30 years of interna/onal mining experience. Peter has held senior management posi/ons in Namibia, Australia, USA, Tanzania, Russia, Mali, and Ghana with companies including Rio Tinto, AngloGold Ashan/, Bannerman Resources, Uranium One, ARMZ and Goldfields. Andrew Thomson (Otjihase General Manager) is a Namibian geologist with over 30 years of experience with the Otjihase & Matchless assets in par/cular (including as General Manager during full scale opera/ons) as well as with the wider ex- Goldfields / TCL portolio in Namibia. Kevin Ellis (CFO & Company Secretary) is a UK Chartered Accountant with over 25 years of experience across a number of industries. Kevin worked in Namibia for 5 years including a year as Financial Controller of Weatherly s Namibian opera/ons, giving him a strong understanding of both Namibian and UK financial and tax regula/ons. Mike Stuart (Business Development Manager) is a UK geologist with over 20 years experience, who led the drill out and produc/on startup of Kansanshi and Guelb Moghrein for First Quantum as Chief Geologist, worked on the Tschudi BFS and then built the mining team and ran the mining opera/on for the first 18 months as Mining Manager. Mike has also worked in explora/on (Zambia, Congo, Tanzania, Namibia), and as a sell- side mining analyst in the City. 13

14 NAMIBIAN BOARD NON-EXECS Honourable Cleophas Jens- Mutjavikua is a long term Director with Weatherly in Namibia. Currently Governor of Erongo Region. Former General Secretary of the Mineworkers Union of Namibia and former CEO of Labour Investment Holdings. Frans Ndoroma is a Metallurgist with over 21 years with NAMDEB including Manager of the Orange River Mines and Assistant General Manager of NAMDEB. Most recently Managing Director of Telecom Namibia. Titus Haimbili Currently Senior Lecturer in Business Management at the Interna/onal University of Management (IUM). Former CEO of TransNamib, the Namibian para- statal transport en/ty. 14

15 WEATHERLY BOARD John Bryant (Independent Non- Execu3ve Chairman) is the senior independent director of IGas, a Non- Execu/ve Director of Victoria Oil & Gas and a Non- Execu/ve Director of China Africa Resources, all AIM listed companies. John has had considerable African experience involving electricity supply to the Zambian Copperbelt, power genera/on in Kenya and gas supply in South Africa. Craig Thomas (CEO) is a mining engineer with over 25 years of experience in the mining industry in Namibia, Botswana, Papua New Guinea and Australia, with companies including Lihir Gold, IamGold, Placer Dome, Western Metals and Mt Isa Mines. Prior to his appointment as CEO, Craig worked for Weatherly for 5 years as COO living in Namibia. Alan Stephens (Senior Independent Non- Execu3ve Director) is a geologist with over 40 years of experience in the mining industry. Alan is currently President, CEO and Director of Coro Mining Corp, a TSX quoted, Chile focused, mining company with growing copper produc/on and an advanced copper development project. Rod Webster (Non- Execu3ve Director) is a mining engineer with over 40 years experience in the mining industry, including 20 years in managing director or chief execu/ve posi/ons. Prior to founding Weatherly, Rod was with First Quantum Minerals (CEO Kansanshi Mining), Western Metals (CEO & founder), Homestake Gold and BHP Minerals. Edwin BenneZ (Non- Execu3ve Director) Orion shareholder representa/ve Krzysztof Szymczak (Non- Execu3ve Director) LogiMan shareholder representa/ve 15

16 CONTACT Weatherly Interna3onal Plc Orion House Bessemer Road Welwyn Garden City AL7 1HH T +44 (0) F +44 (0) Company Secretary Kevin Ellis info@weatherlyplc.com Investor & Press Rela3ons Blytheweigh Tim Blythe /m.blythe@blytheweigh.com Camilla Horsfall camilla.horsfall@blytheweigh.com +44 (0)

17 APPENDIX 17

18 6.6% NAMIBIAN EQUITY Epangelo (EMC) and Bank Windhoek (BW) own 3.2% of the UK parent Weatherly Interna3onal plc = WTI Foreign 96.8% EMC 2.6% Weatherly Mining Namibia = WMN WTI 99%* Foreign 95.8% EMC 2.6% BW 0.6% BW 0.6% Ongopolo Mining Limited = OML PWN 1% PWN 1% Pre-Weatherly Namibian (PWN) shareholders own 1% of the Namibian parent and Labor Investment Holdings (LIH) owns 2.5% of the Namibian operating company WMN 97.5% LIH 2.5% Foreign 93.4% EMC 2.5% BW 0.6% PWN 1% Total Namibian 6.6% LIH 2.5% 6.6% Namibian *WTI owns 100% of Weatherly St Lucia, which in turn owns 99% of WMN 18

19 LEVERAGE TO COPPER Mid- Oct to mid- Nov, copper up by 20% WTI tripled Source : Bloomberg 19