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Kryso Resources plc
Corporate Presentation
February 2010
Disclaimer
This presentation is being supplied to you by Kryso Resources plc (‘the Company’ or ‘Kryso’) solely for your information and may not be reproduced or redistributed in whole or in part. This document has
not been approved by a person authorised under the Financial Services and Markets Act 2000 (‘FSMA’) for the purposes of section 21 FSMA.
This presentation does not constitute, or form part of, a prospectus relating to the Company nor does it constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise
acquire, or dispose of any shares in the Company or to advise persons to do so in any jurisdiction, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever.
Recipients of this presentation who are considering a purchase of shares in the Company are reminded that any such purchase must be made solely on the basis of information that the Company has
released into the public domain.
Whilst all reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that any forecasts, opinions and expectations contained in this presentation are fair and
reasonable, the information contained in this document has not been independently verified and accordingly no representation or warranty, express or implied, is made as to the accuracy, fairness or
completeness of the information or opinions contained in this presentation. None of the Company, its shareholders or any of their respective advisers, parents or subsidiaries nor any of their respective
directors, officers, employees or agents (including those of their parents or subsidiaries) accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from any use of this
presentation or its contents.
This presentation does not constitute a recommendation regarding the shares of the Company. Recipients of this presentation should conduct their own investigation, evaluation and analysis of the
business, data and property described therein. If you are in any doubt about the information contained in this presentation, you should contact a person authorised by the Financial Services Authority who
specialises in advising on securities of the kind described in this presentation.
Certain statements within this presentation constitute forward looking statements. Such forward looking statements involve risks and other factors which may affect the actual results, achievements or
performance expressed or implied by such forward looking statements. Such risks and other factors include, but are not limited to, general economic and business conditions, changes in government
regulations, currency fluctuations, the gold price, the Company’s ability to recover its resources/reserves or develop new resources/reserves, competition, changes in development plans and other risks.
Some statements may constitute the opinions of the Company’s directors.
There can be no assurance that the results and events contemplated by the forward looking statements contained in this presentation will, in fact, occur. These forward looking statements are correct or
represent honestly held views only as at the date of delivery of this presentation.
The Company will not accept any obligation to release publicly any revisions to these forward looking statements to reflect events, circumstances and unanticipated events occurring after the date of this
presentation except as required by law or by regulatory authority.
By accepting this presentation, you agree to be bound by the above provisions and limitations and to keep permanently confidential the information contained in this presentation or made available in
connection with further enquiries to the extent such information is not made publicly available (other than through a breach by you of this provision).
2
• Kryso is a London AIM listed mineral exploration and development company focused on
the development of its 100% owned Pakrut gold project in Tajikistan
Pakrut Gold Project
• Bankable feasibility study in progress; internal prefeasibility study based on production
of in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au
completed
• Drilling continues to deliver outstanding results, including an intersection of
123.7m @ 6.14 g/t Au (with 86m @ 8.48 g/t Au)
• JORC Code-compliant resources currently total 2,830,104 oz Au
Hukas Nickel-Copper Project
• Project area highly prospective for nickel-copper sulphides; an exposed mineralised
lens has been sampled, returning average grades of
Ni - 2.86%, Cu - 1.26%, Co - 0.083% and PGM - 2.3 g/t3
Overview
Pakrut Project Area
• Covers 63sqkm within the prolific Tien
Shan Fold Belt
• Contains numerous mineralised areas in
addition to the main Pakrut deposit
4
5
Pakrut Valley Gold Occurrences
6
Pakrut Valley with Kryso Camp in Foreground
• 123.7m @ 6.14 g/t Au
• (inc. 86m @ 8.48 g/t Au)
• 42m @ 11.17 g/t Au
• 50m @ 5.67 g/t Au
• 41.4m @ 4.08 g/t Au
• 30m @ 13.32 g/t Au
• 6.5m @ 37.97 g/t Au
• 40m @ 8.56 g/t Au
• 18.8m @ 5.35 g/t Au
• 34.5m @ 4.92 g/t Au
• 7.5m @ 26.23 g/t Au
7
Highlights of Drilling at Pakrut
Pakrut JORC Code-Compliant Resources
8
Total
Cut-off (g/t) Tonnage (t) Grade (g/t) Au (oz)
0.5 36,029,076 2.44 2,830,104
1.0 32,119,081 2.64 2,725,368
3.0 8,391,870 5.08 1,369,482
Measured &
Indicated
Cut-off (g/t) Tonnage (t) Grade (g/t) Au (oz)
0.5 16,990,792 2.44 1,333,539
1.0 14,796,675 2.68 1,275,000
3.0 3,527,126 5.48 621,613
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Pakrut Project BFS
• The Pakrut project bankable feasibility study is being completed by the Beijing
General Research Institute for Mining & Metallurgy (BGRIMM), a highly
reputable Chinese consulting group active in the fields of mining engineering,
mineral processing and metallurgy
• The BGRIMM has completed substantial work for well known international
companies including Kazakhmys, El Dorado Gold, SinoGold, ArcelorMittal and
Griffin Mining. The BGRIMM is ISO9000 certified
• In completing the Pakrut project BFS the BGRIMM will, where appropriate, build
on work previously completed by other consultants to Kryso including
GeoLogix Mineral Resource Consultants (resources), GBM Minerals
Engineering Consultants (metallurgical test work review and preliminary
process design), Prime Resources (social and environmental), Scott Wilson
Group (tailings dam design), SGS Group (metallurgical test work) and Turgis
Mining Consultants (mining and infrastructure)
• Completion of the BFS is targeted for early 2010
• Operating cash flow before tax of US$345m
• Post-tax NPV and IRR of US$115m and 67% respectively (10% discount rate)
• Start-up capital requirement of US$65m
• Average cash cost of US$291/oz Au
• Average production of 100,000 oz Au per annum
• Minimum mine life of 6 years, processing 1,460,000t per annum
• Combined open pit and underground operation
• Based on previous JORC Code-compliant resource totalling 1,056,587oz Au
10
Highlights of Pakrut Internal Prefeasibility
Study (February 2008)
Forward Programme
11
Pakrut Gold Project - Drilling
• Kryso has three diamond drill rigs and one RC (reverse circulation) rig
deployed at the Pakrut project
• An updated estimate of Pakrut’s total JORC Code-compliant resources
based on all 2009 drill results will be completed in the first half of 2010; a
further increase on the current total of 2,830,104 oz Au is expected
• Drilling can be undertaken at Pakrut either from surface or from within an
extensive adit system developed during the Soviet era and
extended/refurbished by Kryso
Pakrut Project License
12
• Kryso holds the Pakrut project under an exploration and trial mining license
valid until 1 April 2014
• The reserves of the project, estimated under the Russian classification system,
were approved by the State Committee for Reserves (GKZ) of the Republic of
Tajikistan on 15 December 2008
• This approval gives Kryso the exclusive right to a full mining licence valid for
20 years
• The total C1+C2+P1 resources of Pakrut under the Russian classification
system stand at 26,211,495t at an average grade of 2.44g/t for 2,055,047oz Au,
assuming a cut-off grade of 0.5g/t
• This includes total C1+C2 reserves of 14,910,748t at an average grade of 2.65g/t
for 1,257,454oz Au, assuming a cut-off grade of 0.5g/t
About Tajikistan
• One of the most stable and open countries in Central Asia
• Receptive to foreign investment
• Held peaceful elections in 2006
• Low cost base
• Excellent geological prospectivity
• Mining-friendly administration
• Numerous operating precious metal mines
• Formerly part of the USSR
• Borders with China, Uzbekistan, Kyrgyzstan and Afghanistan
13
Tien Shan Fold Belt
Hukas Ni-Cu Project
• Sulphide mineralization identified on surface and in initial drill holes
• Average grades returned by Soviet-era sampling of exposed mineralized lens:
Ni – 2.86%; Cu – 1.26%; Co – 0.083%; PGM – 2.3 g/t
• TEM geophysical survey completed during 2007, with numerous promising
anomalies identified
• A 1,500m exploration drill programme commenced at Hukas in 2008
15
16
Dr. Trevor Davenport, Non-Executive Chairman and acting Managing Director
Dr. Trevor Davenport has worked in the mining industry for more than 30 years and has been
involved in exploration and mining in over 17 countries. From 1994 to 1997 he was Chief Geologist
and Exploration Manager for Nelson Gold Limited (subsequently renamed Nelson Resources
Limited) in Tajikistan. In 1996 he was made a Director of the Zeravshan Gold Company, a
producing gold company in Tajikistan now owned by Zijin Mining
Craig Brown, Finance Director
Craig Brown qualified as a Chartered Accountant in New Zealand and has spent 14 years in the
mining industry in Central Asia. Craig has worked in various senior roles ranging from Chief
Accountant of an operating mine to CFO of a Canadian listed company
Abuali Ismatov, Executive Director
Abuali Ismatov is a prominent Tajik businessman. Since 1992, he has been integral to the activities
of numerous companies established in Tajikistan with foreign investment
Executive Directors
Andrew Malim, Non-Executive Director
Andrew Malim has over 30 years of experience in mining and exploration finance, having been
involved in the funding of numerous projects in North and South America, Asia and Africa
Ferdinand Dippenaar, Non-Executive Director
Ferdinand Dippenaar has 25 years of mining industry experience, much of it in the gold sector. He
is currently President & Chief Executive Officer of TSX-listed gold producer Great Basin Gold,
Kryso’s largest shareholder
Gennady Tolmachev, Non-Executive Director
Gennady Tolmachev is a mining engineer with 35 years of experience in the development of gold
mining projects. He has previously been involved with highly successful companies including
Peter Hambro Mining plc and Bema Gold Corporation, and its currently Head Engineer of Vertex
Mining, a private Russian company that holds shares in Kryso
Steven Poulton, Non-Executive Director
Steven Poulton is a founder director and CEO of Altus Strategies Limited and a director of ALTUS
Asset Management Limited, the investment manager of ALTUS Resource Capital, a major
shareholder in Kryso
Non-Executive Directors
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Gordon Lewis, Feasibility Study Manager
Gordon Lewis is a mining engineer with a track record of playing key technical roles in the
development of substantial gold mines. These have included the Kelian gold mine in Indonesia for
Rio Tinto plc; the Penjom and North Lanut gold mines in Malaysia and Indonesia respectively for
Avocet Mining plc; and the Gedabek gold-copper mine in Azerbaijan for Anglo Asian Mining plc
Stephen Clayson, Corporate Development
Stephen Clayson is a former financial journalist, in which capacity he focused exclusively on the
natural resources sector. He has several years of experience as a corporate development
consultant to listed mining and exploration companies
Mirahmad Umarov, Chief Geologist
Mirahmad Umarov has been involved in the discovery and evaluation of the Chore, Eastern Duoba,
Upper Kumarg and Chorroga gold deposits in Tajikistan. From 1999 to 2005 he was Chief Project
and Exploration Geologist at the Jilau gold mine in Tajikistan, which is now owned by Zijin Mining
Management
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Valuation Per oz Au Relative to Selected Peers
Note: i) Peer group composed of AIM and ASX listed, preproduction gold/gold & copper companies
ii) All figures are approximate, and are calculated as at 07/12/2009
iii) ‘Total Resources’ refers to total JORC Code/NI43-101-compliant gold equivalent resources
Market Cap.
(US$)
Total Resources
(Moz Au) US$/oz Au
Kryso Resources plc 31.9 2.83 11.27
Archipelago Resources plc 161.9 1.75 92.53
Ariana Resources plc 10.2 0.40 25.36
Chaarat Gold Holdings Ltd. 56.5 3.34 16.92
Greystar Resources Ltd. 410.6 15.02 27.34
Metals Exploration plc 56.4 1.76 31.99
Patagonia Gold plc 155.7 0.89 174.41
Red5 Ltd. 143.5 1.60 89.96
Share Price History
Equity
£500,000 Pre-IPO
£2.6m @ 10p IPO Dec 04
£1m @ 10p Placing to Great Basin Gold Dec 06
£1.46m @ 11.5p Oct 07
£930,000 @ 9p Jul 08
£500,000 @ 5.5p May 09
£1.22m @ 5p Jun-Aug 09
£500,000 @ 5p Sep 09
£500,000 @ 5.5p Oct 09
Total: £9.21m
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Fundraisings
Ticker KYS
Shares in Issue 157,595,697
Share Price (as at 04/02/2010) 11.75p
Market Capitalisation £18.5m
22
Key Share Data
Craig Brown, Finance Director
Email: [email protected]
Office: +44 (0)207 371 0600 Mob: +44 (0)7947 464 188
Stephen Clayson, Corporate Development Manager
Email: [email protected]
Office: +44 (0)207 371 0600 Mob: +44 (0)7771 871 847
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Contact