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Corporate Presentation | August 2019
Disclaimer
2
The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by anauthorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of thisPresentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising ininvestments of this kind. The information contained in this document does not purport to cover all matters that may be relevant for the purposes ofconsidering whether or not to make any prospective investment and is not intended to provide, and should not be relied upon, for accounting, legal ortax advice. This Presentation is supplied to you solely for information.
The information contained in this Presentation has been prepared by Caerus Mineral Resources (the "Company"). The Presentation and any furtherconfidential information made available to any recipient, either orally or in writing, must be held in complete confidence and documents containing suchinformation may not be reproduced, used or disclosed without the prior written consent of the Company.
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Certain statements in the Presentation are forward-looking statements, and the Presentation itself has been based upon a number of assumptions,forecasts and projections of the Company which by their nature are forward looking. Forward-looking statements are typically identified by the use offorward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "potential", "anticipate", "plans" or"assumes" or similar expressions, or by discussions of strategy that involve risk and uncertainties. By their nature, forward-looking statements,assumptions, forecasts and projections involve a number of risks and uncertainties, and in some cases are based on estimates and incompleteinformation, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements or by thePresentation as a whole. These risks and uncertainties, and the impact they have on the assumptions, forecasts and projections contained in thePresentation, could adversely affect the outcome and financial effects of the plans and events described herein.
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Resource development & a production focus
3
Low-cost, de-risked redevelopment of former
copper-gold mines hosting significant residual
mineralisation, strike extensions and new targets underpinned by low-technology reprocessing of oxide ores and dumps for early cash flow to fund future growth
with financing of initial production achieved from the
planned fundraise
Caerus at a glance
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Kambia EPL
Kalavasos EPL
Vrechia EPL
Black Pine EPL
Nicosia
Larnaka
Limassol
Mediterranean Sea
Previously operating mines prematurely
closed in 1974– Leaving ore in the
ground- Closures occurred
prior to introduction of heap leach technology
Growth opportunity - Extensions to mines defined but
never evaluated- New known targets know to previous operators but not tested
- Significant dump and bulk oxide potential
- Gold mineralisation not prioritised by former producers
9 exploration licences, consisting of four target project
areas- Covering a cumulative 31.56 km²
- Includes 16 former producing mines all with identified
resources
4 major options to early production
- First heap leach to be commissioned during 1st year
Production target of 15 – 20Mt at >1% Cu
& 1g/t Au- Existing UG sulphide resource - - Multiple
mineralised dumps & surface oxides
Corporate Overview
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Founders 3.5M shares. 24-month lock-in
Seed Investor (Wentworth Group) 3.3m shares. 24-month lock-in
Directors (inc related parties) 2.6m shares. 24-month lock-in
IPO (Round 3) Cornerstone Investor Shares (River Capital plc) 7.65m at 10p. 24-month lock-in
Acquisition Consideration shares 8.5m at 10p. 24-month lock-in
IPO Placing up to 17,500,000 at 10p
Shares in issue post-IPO 41,900,000
Market Capitalisation at Admission
ca. £4.2M
Working Capital immediately post-IPO
ca. £2M
18 Month Budget Up to £1.75M
MarketStandard,
LSE
TickerTo be
assigned
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MICHAEL JOHNSON, CHAIRMAN: Mike Johnson DSc. PhD., MSc., held the Rio Tinto Chair of EnvironmentalScience at the University of Liverpool (1994-2005). He remains External Adviser to Rio Tinto plc, Lundin MiningCorporation and New Boliden AB. He was chairman of Glebe Mines Ltd, the principal fluorspar mining company inWestern Europe, and variously held similar Director roles with Savannah Resources plc and Columbus Copper Incduring the period 2009-2016. Professor Johnson also holds advisory positions with the World Bank/IFC and UnitedNations (Environment Programme).
MARTYN CHURCHOUSE, CEO: Martyn is a geologist with 33 years’ experience in Europe and Africa in exploration,mine development, feasibility and as a mine manager. He worked for Anglo American and Gold Fields before joining theJunior Mining Sector and has been involved in bringing a number of exploration companies to the AIM Market. Martynwas an adviser to Georgian Mining Corporation prior to which he was Senior Adviser New Business Development toLundin Mining Corporation.
ANDREW DANIELS, NON-EXECUTIVE DIRECTOR: Andrew has more than 30 years of experience in capital markets, exploration and management. Former Global Mining Finance director for Deutsche Bank. Andrew also worked for various groups including Anglo American, Western Mining Corp, Kilborn SNC, Lavalin and Minorco Services BV. Executive management experience includes roles as VP Exploration and COO for a number of junior exploration companies.
NIGEL CHAPMAN, EXPLORATION MANAGER (non-Board): Nigel is a geologist specialising in project generation,implementation and management of exploration and Resource assessment programmes. Most recently he has been aconsultant with Rio Tinto Exploration in Peru focusing on VMS and IOCG Copper projects.
Board and Management
Our Licences 7
Kambia EPL
Kalavasos EPLVrechia EPL
Black Pine EPLLimassol
Larnaca
Nicosia
OXIDE RESOURCES Oxides never previously
targeted now representing an obvious low-cost short-term
cash flow option
DUMP RESOURCES Low-cost easily accessible
heap or tank leach option. First HL production scheduled from
initial budget
BULK TONNAGE SCOPE Kalavasos, Mala & N.
Mathiatis stockwork gold and copper
NEW TARGET GENERATING STRATEGY
No modern exploration since 1974 – obvious targets missed
by previous explorers
HIGH GRADEResidual sulphide
mineralisation in 13 prematurely closed mines all
within CMR’s licences
COPPER & GOLD RESOURCES
Focus on early productionA potentially new gold province
Strategy
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• Prematurely closed mines with known Resources
• Extensions to existing mine Resources
• Known mineralisation not previously tested
• Newly generated targets using modern techniques
• Reprocessing of dumps & tailings via HL
• Bulk copper-gold hypogene targets
• Multiple sources of ore provides scope for incremental growth
• Rapid & low-cost generation of JORC Mineral Resources & early cash flow from development of heap leach operations
• Benefit from gold credits
• De-risking drilling & exploration by focusing on brownfield sites
Multiple sources of feedstock including:
Kalavasos Licence
9
LandariaMavri Sykia
Mousoulos Petra
• Two exploration licences capturing 12 historic high-grade Cu mines (8.75km2)
• 13 UG mines commissioned and developed between1937-77
• Remnant sulphide ore to be recovered by CMR totalling 2.58Mt at >1.5% copper
• Historic mining of 61,450t of oxide zone produced 16,490oz of gold (8.3g/t)
OBJECTIVE – ANNOUNCE 1ST UG JORC RESOURCE
>1MT @ >1% CI & 0.5G/T AU – NOVEMBER 2019
OBJECTIVE – HEAP LEACH PRODUCTION OF UP TO 500KT OXIDE ORE @ 0.5 TO 1% Cu –
WITHIN 6 MONTHS
OBJECTIVE – ROLL OUT & EXPAND HEAP LEACH
PRODUCTION >1MT @ 0.5% CU - COMMENCING Q2 2020
USING CASH FLOW FROM INITIAL 500KT HL PILOT
Kalavasos Production
10
UG Sulphide Flotation (Cu & Au)
Resource (Mt) 3,000,000Production Rate (tpa) 300,000LOM (yrs) 10Head Grade Cu (%) 1.5Head Grade Au (g/t) 1.5Recovery Cu (%) 90Recovery Au (%) 75Cu Price (US$/t) 7,000Au Price (US$/oz) 1,300Mining Method open stoping Processsing Method Flotation
Project NPV (US$m) 70
Heap Leach (Pilot Module)
Resource (t) 500,000Production Rate (tpa) 500,000LOM (months) 18 months Head Grade Cu (%) 1.0Head Grade Au (g/t) N/ARecovery Cu (%) 60%Recovery Au (%) N/ACu Price (US$/t) 6,500Au Price (US$/oz) N/AMining Method Heap LeachProcesssing Method Acid Leach
Project NPV (US$m) 9.5IRR (%) 50
Heap Leach Expansion & Roll-Out
Resource (Mt est) 10,000,000Production Rate (Mtpa) 1,000,000LOM (yrs) 10Head Grade Cu (%) 1.0Recovered Cu (t) 60,000Cu Price (US$/lb) 3Cash cost (Cu eq. US$/lb) 1.0
Project NPV (US$m) 300
Estimates do not include anyadditional sulphide ore related to
extensions to existing mines, new discoveries, stockwork mineralisationor low-grade Cu-Au bulk tonnage type ore
N. Mathiatis Licence
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• Former open pit mined for high-grade pyrite
• Two targets:• 3Mt Cu oxides in dumps
• Bulk Cu-Au mineralisation surrounding mined-out pyrite core
• Historic drilling achieved multiple intersections of copper over significant mineralised widths:
• 2.2% copper over 40m, 1.0% copper over 70m, 0.52% copper over 60m, 0.45% copper over 80m, 0.45% copper over 50m, 0.36% copper over 70m, 0.33% copper over 120m
• Scope for low-cost early cash flow heap leach development from existing 3Mt dumps.
• Planned evaluation of bulk tonnage Cu-Au halo estimated to be in excess of 7Mt at 0.50% Cu and 0.5g/t Au
OBJECTIVE – INITIAL JORC RESOURCE ESTIMATE OF LEACHABLE DUMPS - NOVEMBER 2019
N. Mathiatis Production Targets
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Sulphide Footwall Halo (Cu & Au)
Resource est (Mt) 7,000,000
Production Rate (tpa) 1,500,000
LOM (yrs) 5
Head Grade Cu (%) 0.50
Head Grade Au (g/t) 0.50
Recovery Cu (%) 90
Recovery Au (%) 75
Cu Price (US$/t) 7,000
Au Price (US$/oz) 1,300
Mining Method Open pit
Processsing Method Flotation
Recovered Cu (t) 32,000
Recovered Au (oz) 115,000
In-Situ Value (US$m) 370
Heap Leach (Cu only)
Resource (Mt est) 3,000,000
Production Rate (Mtpa) 1,500,000
LOM (yrs) 2
Head Grade Cu (%) 0.5
Recovered Cu (t) 9,000
Cu Price (US$/t) 7,000
In-Situ Value (US$m) 60.0
Test work required to determine viability of flotation of 3Mt dumps containing estimated 0.5% Cu and 0.5g/t Au as an option to the heap leach of the dumps to recover Cu only)
Mala Licence
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Strike extensions both W & E of the
former pit
Au-bearing tailings
OBJECTIVE – POSITIVE TEST WORK ON Au EXTRACTION FROM DUMPS AND TAILINGS & CONFIRMATION OF EXTENSION TO
EXISTING UG RESOURCE
• 2 targets for immediate follow-up
o 500Kt Au-Au dumpo Ca 500Kt Au-Cu sulphide
• Sulphide drill intercepts inc:
o 25m at 1.23g/t Au, 0.34% Cu & 1.16% Zn
o 39m at 0.59g/t Au, 0.39% Cu & 0.30% Zn
• Low-cost gravity recovery of Au in dumps. Estimated 1g/t Au
• Flotation of Cu-Au sulphide resource
Activity Comment Total Spend (£)
% of Direct Exploration
Drilling Minimum 5,000m RAB 150,000
Assay Costs Inc sample preparation, core logging and met testwork 350,000
Field Exploration Mapping, sampling, trenching, channel sampling, consultants
240,000
Licence Renewal Maintaining licence status & acquiring extensions 40,000
Baseline, Met Test Work & commissioning Phase 1 heap leach production
Baseline studies on priority targets 395,000
Geochemistry & Geophysics Ground surveys for extensions on former mines 200,000
Operating Costs 375,000
Total 1,750,000 100
Use of Proceeds
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Direct exploration
79%
Admin, compliance &
staffing21%
• Listing costs met from Pre-IPO seed capital
• 18-month budget of up to £1.75 million
• Includes Kalavasos heap leach pilot programme
ALLOCATION OF up to £1.75M BUDGET
Investment Case
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PROLIFIC MINING HISTORY27 mines with an average grade of 2% copper operated in the Country. 15 of
these mines located within CMR’s licenses
LOW RISKRedeveloping mines with known remnant
ore and extensions
EXPLORATION UPSIDEProven extensions to former mines
identified and drill-readySix ore types to be evaluated
STRATEGIC DEVELOPMENT Government actively supporting sector
growth
SUSTAINABLE OPERATING ENVIRONMENT
Simple technology/techniques with little impact on the environment
LOW COST PRODUCTIONHeap leach & Flotation
NEAR TERM CASHFLOWOxide heap leach from pits
STRONG COPPER SUPPLY & DEMAND FUNDAMENTALS
• Magmatic high-grade nickel-copper sulphides possibly overprinted with copper-gold VMSmineralisation
• Six new licences acquired giving Caerus circa 40km of mineralised strike length
• Drilling at Pevkos and Laxia in 2014 confirmed this mineralisation and presence of a significant cobalt-gold component
>8g/t Au in grab samples from mineralised outcrop
Black PineNickel – Cobalt Project
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Contacts & Advisers
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Chief Executive Officer: Martyn Churchouse
m
Financial PR: Megan Ray & Rachael Brooks
E: [email protected]: [email protected]
Tel: +44 (0) 20 7138 3204
Brokers: Turner Pope
Solicitors: Druces LLP
Bankers: Coutts & Co
Auditors: PKF Littlejohn
Public Relations: Blytheweigh
Registrars: Share Registrars