Regency Mines Corporate Presentation€¦ · Regency Mines. Corporate Presentation. London Stock Exchange AIM Listed: RGM . Disclaimer These presentation slides (the “Slides”)

Regency MinesCorporate PresentationLondon Stock Exchange AIM Listed: RGM

DisclaimerThese presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribefor any securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any suchsecurities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buysecurities in the Company. If any person is in doubt as to the contents of this presentation, or wishes to obtain advice as to the investmentmerits of the Company’s securities, he should seek independent advice from a person who is an authorized financial services provider.

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www.regency-mines.com Regency Mines PLC : AIM RGM

Company Overview

MotzfeldtNiobium + Tantalum JORC Resource

Signfiicant Upside Potential

MambareNickel JORC Resource

Large Scale and 3% Explored to Date

Horse HillOnshore UK Oil and Gas Exploration

Weald Basin – Gatwick Airport

Curzon Energy PlcCoal Bed Methane Project, Oregon, USA

Upcoming Listing in the UK


Company Overview

Rosa Coal MineMetallurgical Coal Production, AL, USA

Mine Restart Project

Coal Bed Methane and Onshore UK Oil Exploration

Oil and Gas

Met Coal ProductionNickel in PNG and Niobium/Tantalum

in Greenland

Mining

Focus on Cash Generative Assets

with Outsized Returns

Investments

Value Creation Through Joint Ventures and

Disposals

Transactions

Diverse Investor Exposure


PROJECTSMINERAL

Rosa Metallurgical Coal Investment


01

02

03

04

20% InterestInvestment in Carbon Minerals CorporationExperienced Coal Mgmt Team Existing Mine w/ Infrastructure

NI 43-101 453,000 tons of Coal Very Desirable High Quality Rosa CoalScales Well Beyond Existing Resource

Located in the Warrior Coal Basin Blount Country, Alabama, USAMultiple Regional Offtake Partners

Year 1 Target : 100,000 Tons of CoalConservative: $130 Met Coal$13m in Revenue - $10.7m in EBITDAStrong Met Coal Prices

Mine Restart Project

Historic Coal District

Production – Cash Generation

Rosa Mine Location and Geology


SE United States – Blount County, ALPlateau Coal Field Southern Appalachian Coal RegionEconomic Bituminous Coal Deposits

Lower Pottsvile FormationProduces High Quality Rosa Met CoalMid Vol Coal – Low Ash / Sulphur

Multiple Regional Offtake Parties Used for Filters and Coke ProductionMotivated Local Workforce

Historic BasinOne of Primary US Coal Production AreasLong History of Producing Both Thermal and Met Coal2015: 37 Operating Mines in AL – 13.2m tons Production

Rosa Metallurgical Coal Mine


Wash PlantEquipment in Place ~$10-12m ValueWash Coal for 3rd Parties @ $8/ton85% Clean Tons Recovery Expected

Simple Extraction ProcessMultiple Augers or Highwaller100,000 tons in Year 1120,000+ tons in Thereafter Highwaller Could Allow 600,000t+ p/a

Rosa Coal Seam – Avg 16-22in Thickness

Conducted by Calvert and Marsh 5m+ Tons Mined Through 1978Over 2,500 acres of Rosa Seam MinedMining to Take Place Along Existing Highwall

Surface Mined 1960s-80s

1.81% Ash26.20 % VM71.91% FC0.85% SUL

Avg Rosa Coal Quality

Auger ($3/t) 350ft Depth Highwall ($25/t)1,000ft Depth

Rosa Financial Projections


Production Level2,155,540 25.00% 50.00% 100.00% 125.00% 150.00%

50.00$ -97,460 $ 109,540$ 523,540$ 730,540$ 937,540$ Coal Price 100.00$ 157,540$ 619,540$ 1,543,540$ 2,005,540$ 2,467,540$

150.00$ 412,540$ 1,129,540$ 2,563,540$ 3,280,540$ 3,997,540$ 200.00$ 667,540$ 1,639,540$ 3,583,540$ 4,555,540$ 5,527,540$

Met Coal Prices Hit Multi-Year High in 2016 - $308/t

US Expected to Increase Coking Coal Production in 2017 +9m Tons

Prices Off Highs – Still 130% Up from Multi-Year Lows

Metallurgical Coal – 2017 Consensus $143/t

AssumptionsBase Case: 120,000 tpa Saleable = 100%Results in USD Attributable to RGMShareholder Agreement – 50% Div Policy


Motzfeldt – Multi Element Projecto JORC Inferred Mineral Resource of 340Mt @ 120ppm Ta2O5, 4,600ppm ZrO2, and

1,850ppm Nb2O5

o Multi-element project - niobium (Nb), tantalum (Ta), rare earth elements (REE) – significant in-situ value

o World’s largest Undeveloped Niobium-Tantalum deposits - 24km to an international airport

o Acquired for Nominal Cost (~£2.5k) – Several Millions Spent Historically

o Minimal Spend to Hold Licenses– On Care and Maintenance – Seeking Partners


Ta

Zr

REEs

Nb

Mambare Nickel Laterite Projecto Lateritic nickel-cobalt exploration in Mambare Plateau,

PNG

o One of World’s Largest Laterite Deposits – 3% Drill Tested – Significant Upside Potential

o 50:50 Joint Venture between RGM and Direct Nickel Ltd (Additional 1.36% indirect stake through DNI)

o JORC compliant Mineral Resource Estimate (MRE) announced 2012− 162.5 Mt @ 0.94% Ni and 0.09% Co (combined

Indicated & Inferred)− 47 MT @ 1.23% Ni and 0.08% Co

o Mambare Licensed to use the DNi Process – 40,000t p/a

Kokoda Township

Plateau

EL1390


Designed to Process Nickel LateritesTested at Pilot Scale in Perth, AUS

Uses Nitric Acid – Recycles 95%Sustainable and Cost Effective

Low CAPEX & OPEX - ScaleableUnlocks World’s Nickel Laterite Supply

Direct Nickel Process

& GASOil

Cumulative Flow Test Rate(3 zones)

1,688 BOPD

900 BOPD

Exciting onshore O&G prospect in the UK – PEDL 137

RGM’s Stake3.25%

Upper Portland

Lower Portland

Lower Kimmeridge

Upper KimmeridgePrimary focus lies on Kimmeridge Limestones and Portland Sandstones

90-day extended production tests planned for early 2017

Permission sought for 2 x well drilling phase – deviated sidetrack of existing HH-1 well + HH-2

Horse Hill Overview

463 BOPD

323 BOPD

Flow Test Results By Horizon

HH-1 drilled to 2,646m to test for conventional stacked targets and a

deeper gas target

Sept 2014 Oct 2014 2015 2016 2017

HH-1 WellDrill Results

Gross Oil In PlaceInitial Flow Tests

Long Term Flow Tests

Horse Hill Timeline

Results: P50 of 3.1mmbls of gross in place hydrocarbons in

Upper Portland and 16.8mmbbls in lower

Portland

Focus shifts to Kimmeridge Clays –

8,262mmbls OIIP estimated

1,688 BOPD – highest aggregate stable dry-oil flow from any onshore

UK new field

Long-term flow tests planned for Q1

Coal Bed Methane Gas Project – Acquired out of Bankruptcy645 BCF Gas in Place 273 BCF of 2C contingent resources (recoverable)Coos Bay, Oregon, USA – 50,000 acresCurzon Energy Plc to be listed in London at £4.8m valuation

Historic Spend Over $75mPre-IPO raised £650k Q3 2016IPO set to raise £2.4m+ in 2017 w/ listing on LSEFunds to Confirm Commerciality

Phased development program (Typical well costs $320k) Phase 1: 2 new wells + temporary compression facility + 5 existing wellsPhase 2: 58 new wells5 year plan - 200+ wells and 20-30 MMscf/day (3,000-5,000 boepd)

Potential for free cash flow of $24m+ in 5 years - $250m+ valuation Base case break-even of $1.0/Mscf Henry HubFirst gas in under 6 months - monthly revenue of $250kTargeting 6-7x uplift with current assets

OR, USA

RGM: £250k

~10% Stake

$20-25k to RGM


Curzon Energy Plc Overview

Curzon Development Potential


Local well test rate of 100Mscf/day seenMid case 500 MMscf per well ultimate recovery

5 Existing Wells

Typical Well Costs: $350k~2,500ft depth 5-10 zones

2 x New WellsPhase I

Crosses the property / ready for connectionFeeder line connects to interstate line

Coos Bay Gas Pipeline (12in)

Upper Coaledo

Two Horizons

Lower Coaledo

58 x New WellsPhase II

200 x New WellsPhase III

Local gas prices $5/Mscf – $2/Mscf premium to US Henry Hub16 year track record of premium pricing

“First Gas” Expected in Under 6 Months

IRR 55.4%

CAPEX Per Well

$320k

500MMscf ultimate recovery Peak rate of 150 Mscf/day

New Well Completed in Upper and Lower Coaledo with stimulation

Takes advantage of low drilling costs and preconstructed pads

Curzon Type Well Economics – Mid Case

Curzon Project - Well Economics


NPV10

$703k

Payout

4.4 Years

Peak Rate

150Mscf/day

Phase I (Mid Case)7 Wells1.8 BCF$8.3m Net Revenue$1.1m CAPEX$1.6m OPEXPayout in 1.7yrs

108%

58.4%

5 Year Plan (Mid Case)130 Mscf/Day$30.9m in net annual revenueIncludes Royalty, G&A, OPEXGoal is $200m valuation

200

IRR

Phase I + II (Mid Case)65 Total Wells30.8 BCF$141m Net Revenue$19.7m CAPEX$29.4m OPEXPayout in 4.4yrs

IRR

Wells

19

o US gas production continues to increaseo LNG export markets continue to grow – China, S.Korea, Japano LNG rising 6-8%pa as countries shift to lower carbon fuelso World natural gas supply should go into deficit by end of 2016

CBM Former “Miner’s Curse” now an exciting commercial success story

Dramatic Transformation10%

CBM fields usually increase to peak production after 6-18 months then decline like conventional reservoir

Production Profile

Natural Gas - Coal Bed Methane

Of US natural gas production comes from coal bed methane (CBM)

The “Fuel of the Future” – cleanest fossil fuel option available – key component of US energy supplies and world’s fastest growing major fuel

Natural Gas

Coal is both reservoir rock and source rock for methane

CBM

CO2 emissions 40-50% lower than coal and 25-35% lower than petroleum

Natural Gas

INVESTMENTSOTHER

Other Investments


1.94%

Exposure to oil and gas production + mineral exploration

Key Asset: Jupiter Mines producing manganese mine in South Africa

Gold JORC resource in KenyaIron JORC resource in Greenland

Oil Production in the USA

Red Rock Resources PLC (AIM:RRR)

Holding

75%

Developer of Nickel Processing Technology

Exposure to Planet Minerals Ltd –Gold Exploration in Africa

Partner at Mambare, PNG Nickel Project – RGM Indirect Stake 1.36%

Direct Nickel

Holding

2.71%

Curzon Plc IPO London Stock

Exchange

Horse Hill Long Term Flow

Tests Begins


Investor Timeline and Key Events

Rosa Coal Mine Commences Production

Mambare Ni Project

Year 2 License Fee Paid

February

March

Summary


Investing at Bottom of Cycle Valuations

Focus on Cash Generation

Exploration Holdings w/ Upside

Foundation for Outperformance

London Stock Exchange AIM listing: AIM:RGM

Share Price: 0.53p

Market Capitalisation: £2.16m

Shares in Issue: 407.384,571

Directors:Andrew Bell Chairman and CEOScott Kaintz Director and COOEdmund Bugnosen Non-Executive Director

Corporate Advisers:Nominated Adviser Beaumont Cornish LtdAuditors Chapman Davis LLPAIM Broker Dowgate Capital Stockbrokers Ltd Solicitors Ronaldsons LLP

Company Secretary: Stephen Ronaldson

Further Information

Further InformationAndrew BellChairman and CEOEmail: [email protected]

Scott KaintzDirector and COO Email: [email protected]

Registered Office:55 Gower StreetLondonWC1E 6HQ UK Incorporated in England and Wales Company No. 05227458

Business and Postal Address:Ivybridge House 1 Adam StreetLondonWC2N 6LE UK Phone: +44 (0)207 747 9960

mailto:[email protected]

mailto:[email protected]

Documents

Regency Mines Corporate Presentation€¦ · Regency Mines. Corporate Presentation. London Stock Exchange AIM Listed: RGM . Disclaimer These presentation slides (the “Slides”)