CORPORATE PRESENTATION Q1 2016 Confidential · readiness Initial production ... manual loading of...
Transcript of CORPORATE PRESENTATION Q1 2016 Confidential · readiness Initial production ... manual loading of...
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DISCLAIMER :
This document has been issued by Alufer Mining Limited, a company registered in Guernsey (the “Company”) and has been issued expressly to the recipient.
This document and any further materials supplied with it, or subsequently in connection with it and the accompanying live presentation and discussion (the
“Information”) are for informational purposes only and do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase
and/or subscribe for any securities and/or any investment in the Company and should not be relied on in connection with any contract or investment decision relating
thereto.
The recipient of the Information should not place any reliance on the information or opinions contained in this document or on their completeness (and in particular any
forward looking statements which are inherently risky by their nature). Neither the Company or any of its directors, employees or agents gives any express or implied
warranty or representation as to the accuracy or completeness of the information or opinions contained in the Materials and no liability whatsoever (except in relation
to fraud) is accepted by the Company, its directors, employees or agents for any loss howsoever arising, directly or indirectly, from any use of such information or
opinions or otherwise arising in connection therewith.
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OVERVIEW OF ASSETS
BEL AIR PROJECT (Alufer - 100%)
� 15km from the coast – advantageous location,
low capex, low opex
� 146Mt @46% Total Al2O3, 40.5% available Al2O3,
1.7% Reactive SiO2
� Tri-hydrate (low temperature) bauxite with low
silica
� Updated DFS underway to ensure construction
readiness
� Initial production rate of 5.5 Mtpa ramping up to
a 10.0Mtpa operation
� Mining Convention signed with the Government
of Guinea
� Construction to start Q2 2016
� Production is expected to commence in late
2017
For further detail on the Labe Project (Alufer 100%)
please see the Appendix
BEL AIR - MARKET OPPORTUNITY
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� China is buying low quality material from India at high prices
� Malaysia has banned exports for 3 months but even so, it is a short term, low quality solution
� There is a significant opportunity for Bel Air to enter the market as a premium quality bauxite
� Refineries are prepared to pay a premium for high quality bauxite
• Material from Brazil; Guyana; Ghana and Guinea can command up to 50% more than the market price
KEY SPECIFICATIONS OF BEL AIR
BAUXITE:
� Av Al2O3: 46%
� RxSio2: 1.7%
� Reactive Alumina:Silica ratio: >23
� Low organic carbon: 0.07%
BEL AIR – PROJECT OVERVIEW
� Project has low capital requirement and operating costs
due to proximity to coast and DSO production
� Short construction phase of 18 months
� Updated DFS underway:
� Independent study and Gap Analysis
� Pit to OGV Simulation and Integration
� Optimisation / Value Engineering where applicable
� Improve Construction Readiness
� Studies underway on key construction packages:
� Haul Road Development
� Materials Handling
� Civil Marine Engineering
• Jetty Construction
� Marine Infrastructure
• Transhipment
� Onshore Infrastructure
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MINING TECHNIQUE
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BENEFITS OF SURFACE MINING vs DRILL AND BLAST
� Optimised mining control - minimal dilution and mining loss
� Reduced modifying factors can reduce geological cut off – can
add 18% to reserve base and LOM
� Significantly reduces strip ratio, waste handling and haulage
costs by minimising footwall waste as part of pit development
� Lower fuel consumption
� No crushing required as equipment and operation can be set to
produce 99.5% <100mm PSD
� Improved in pit ground conditions enables multi purpose haul
fleet selection and reduced re-handling
� Improved in pit water and moisture control during the wet
season
� Reduced bulking factor for improved haulage efficiencies
CURRENT SURFACE MINING OPERATIONS
� Paragominas, Brazil
� CBK Rusal, Guinea
SURFACE MINING – (conventional truck and shovel mining will be undertaken in certain areas)
ONSHORE INFRASTRUCTURE
GEOHYDROLOGICAL INVESTIGATION
� Ground water sources defined for potable water supply
� Catchment dams proximal to mining areas considered for bulk of
dust suppression water
� Site wide water balance
GEOTECHNICAL INVESTIGATIONS
� Quarry investigations – rock for causeway
� Civil investigations focused around bridge and stockpile
structures
REVISED PROJECT LAYOUT
� Access to Bel Air Hotel enabled optimisation of site plan
� Bel Air Hotel to house all Alufer staff and offices
� Contractor Camp to be constructed on Mine Camp PIN
adjacent to Bel Air Hotel
� Export Facility -- Stand alone facility
� Mine Support -- Optimally located centre to the mining area;
Stand alone facility
HAUL ROADS
� Phased approach to haul road construction
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PRODUCT
STORAGE PAD
STOCKPILE
TRUCK TIP
Overview of Export Facility
1. Materials handling area
2.Causeway
MATERIALS HANDLING
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OUT: Export Conveyor
2,000tph
IN: ROM Tip
2,000tph
OPTION 1
RUN OF MINE (ROM) TIP
� ROM will be delivered to the ROM bin using 40m³ side
tipping trucks.
� ROM ore is withdrawn from the ROM bin using two
apron feeders (2,000tph design rate) conveying to the
vibrating grizzly through a feed box
SEMI--AUTOMATED STOCKPILE -- TELESTACK
� Lower capex but with slightly higher opex due to
manual loading of the export conveyor
� The stockpile is fed at 2,000tph from the ROM Tip
� Two additional reload bins with chain feeders at
1000tph capacity will each be provided to feed the
export conveyor
� Reload bins will be fed with Front End Loaders
EXPORT CONVEYOR
� Export Conveyor runs at a nominal 2,000tph
OPTION 2
Studying stockpile with underground reclaim
MATERIALS HANDLING
BARGE LOADING
� The proposed barge loading solution comprises two
slewing, telescopic barge loaders. This represents
the optimum balance between low capex,
simplicity of operation and functionality
� Two loaders are required to achieve an equal
spread of material over the barge, whilst each of
the loaders are specified as being capable of
achieving the nameplate capacity (2,000tph
continuous)
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MARINE INFRASTRUCTURE
� Simple geotechnical structure placed on bedrock
� Core and armor material will be supplied from
proximal quarries to be delineated and designed as
part of the Geotech field investigations
BLOCK WALL RETAINING STRUCTURE AT LOADING POINT
� Due to slewing barge selection the berth length is
significant reduced
� Lock wall berth structure also preferred as it does
not require piling during the construction phase
TR
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N
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0m 200m
CAP VERGA
100m
SCALE: 1:5000
N 1 128 000
E5
59
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0
E5
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50
0
E5
59
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N 1 128 500
-4.0
E5
59
50
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N 1 128 500
1- - - -
Wave Direction
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RUBBLE MOUND CAUSEWAY
TRANSHIPMENT
PHASE 1 -- CAPACITY
� 3 barges and 2 cranes with realistic rain and wave motion = 7.7Mtpa @ 85% OGV berth capacity = 6.5mtpa
PHASE 2 -- CAPACITY
� 4 barges and 2 cranes loading at 4000t/h with realistic rain and wave motion = 10Mtpa
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� Contracted transhipment operation
� Minimum of 284 operating days with potential
to increase operations further to 313 days
� Barge has ability to cover hatches during rain
� Maximise throughput by making use of
seasonality and large tidal range
OPERATIONAL CRITERIA
EQUIPMENT
� Purpose-designed covered barges for shallow water
loading
- 10,000t capacity
� Floating cranes
- 32,000 tpd throughput at 80% utilisation
- 100% independent for operations, maintenance and
repair
SOCIAL AND ENVIRONMENTAL STUDIES
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� Comprehensive Social and Environmental Impact Assessment Studies have been conducted by Alufer and approved by the
Government of Guinea
• Received the environmental certificate of conformity in April 2015
� Work ongoing to ensure that Alufer achieves full IFC and Performance Standard compliance
• Additional baseline assessments
• Integrated terrestrial and marine social and environmental impact assessments
• Social and environmental management plan
� Current RAP Framework
• RAP received from Okapi
• RAP principles prepared and approved
• Spatial verification ongoing
• Field validation started in February with new footprint
• Title assessments being integrated with engineers to minimise impact and reduce
compensation
� Marine SEIA
• The Marine SEIA submitted to Government. Final version being prepared, following government comments
GDP: $15.1 billion (2014 est.)
Annual Growth: Estimated to be c.6% 2016-17
Population: 10.5 million
Inflation: 9.7%
Major Industries: - Agriculture: Rice, coffee, fruit, livestock, timber
- Mining: bauxite, gold, diamonds, iron ore
- Light manufacturing and agricultural processing
Major trading partners: South Korea, India, China, Spain, Netherlands, Ireland
MINING:
� Mining accounts for over 70% of the country’s exports.
� Several ‘majors’ present in country – Rio Tinto, Rusal, CBG, GAC
� Deposits of bauxite, iron ore, gold and diamonds with significant geological potential.
� Country accounts for c. 25% of global bauxite reserves
POLITICS:
� Democratic presidential elections held in October 2015, with the incumbent Alpha Conde
winning the vote with a significant majority in the first round
� He was inaugurated for a second five term on the 14th December 2015 - will support ongoing
stability in coming years
� Is focused on creating economic wealth for the country as a whole and encourages foreign
investment within this context.
GUINEA INVESTMENT CLIMATE
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Sources: CIA Factbook; EIU, USGS
Recently declared Ebola-free
KEY MANAGEMENT
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• Mining engineer
• Expertise in development of
natural resources projects
across Africa including
diamonds, precious/base
metals and coal
• Founder and Chairman of LSE
listed Petra Diamonds and
AIM listed Chariot Oil & Gas
and other private companies
Adonis Pouroulis
Chairman
Bernie Pryor
Chief Executive Officer
• Guinea national, with strong
relationships and network
connections in Guinea
• Worked for BHP Billiton,
TOTAL and Global Alumina in
Guinea
• In-country liaison for Alufer
Lamine Touré
Executive Director: Guinea
• Chartered Accountant with 15
years experience in the mining
sector
• Previously with Anglo
American and CFO of London
Mining
• Extensive background in raising
project and corporate finance
and negotiating mining
licences, especially in West
Africa
Rachel Rhodes
Chief Financial Officer
Catherine Garcia
Environmental & Social DirectorKevin Mclean
Project Director
Tristan Clarke
Commercial Director
• Metallurgical Engineer
• 25 years of operational
experience
• Previously CEO of African
Minerals and Q Resources
• Was Head of Business
Development with Anglo
American Plc, also serving as
CEO of Anglo Ferrous Brazil
Inc.
• Geologist with 20 year across
the industry – exploration,
development and production
• Previously with Shangdong
Iron and Steel, African
Minerals and Fortescue
Metals
• Expertise in optimising and
delivering efficient mining
operations
• Over 20 years experience in
sustainable development and
community relations
• Previously with Ivanhoe, IFC,
Rio Tinto and Xstrata
• Focus on resettlement and
compensation, ESHIA,
community development,
biodiversity and stakeholder
engagement
• Broad commercial experience
- over 12 years working in the
resources and power sectors
• Previously with Shangdong
Iron and Steel, African
Minerals and Anglo American
• Specific experience in
commodities marketing,
complex negotiations, supply
chain and corporate strategy
CORPORATE AND FINANCIAL SNAPSHOT
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LATEST DEVELOPMENTS:
� Bridge loan facility for $US20m in place to finalise the DFS and ensure project to be construction ready
� Heads of Terms agreed with syndicate of strategic investors for the equity portion of the Construction Financing - a
strong endorsement of both the project and the team
� Heads of Terms signed for US$60m debt facility
� Negotiations have commenced on bauxite sales
� Mining Convention for Bel Air signed on the 1st February 2016
- Defines the operational regime and fiscal and tax incentives
- One of the first to be completed under the new Mining Code
� Bel Air is one of a select few projects seeking to commence development and production in the near term in Guinea
– strong support from the Government for it to be a success
PROJECT DEVELOPMENT IN RELATION TO THE BAUXITE PRICE
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Source: http://thebauxiteindex.com/
August 2011
First resource
statement for
Bel Air published
December 2011
PFS for Bel Air
published
October 2012
Updated resource statement
for Bel Air published
April 2013
First Bel Air Feasibility
Study published (10mtpa)
June 2013
Bel Air SEIA completed
September 2013
Bel Air exploitation
licence granted
October 2014
BFS completed (4.8 mtpa)
November 2015
DFS commenced
Feb 2016
Mining Convention
signed
December 2014
Bel Air exploitation
licence granted
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Jul-11 Apr-12 Jan-13 Oct-13 Jul-14 Apr-15 Jan-16
CF
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au
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Pri
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US
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Bauxite Price - CFR China News Event
KEY ADVISERS
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CONSULTANT / CONTRACTOR WORKSTREAM
CUTFIELD FREEMAN Financial Advisers
BDO Auditors
NORTON ROSE Legal Advisers
GEOPROSPECTS Access Preparation
GOLDERS ASSOCIATES Geotech, Hydro, Earthworks
DRA GLOBAL Integration Study
PRDW Marine Civil and Transhipment
SOUND MINING Mining
INSUCO Gap Analysis, SEP and Social and
Environmental Baselines
SIGNIFICANT GROWTH POTENTIAL
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� The Labé Project (100% Alufer) is situated in the Guinea
highlands, approximately 350km north-east of Conakry
� Total JORC compliant resource of 2.5Bt at 43% Al2O3
� High grade resource - 583Mt @ 50% Al2O3, 3% SiO2
� Engineering Concept Study completed
� Completed 11,130m auger drill programme on 600m and 300m
grids, and 252m core drill programme (only 25% of mineralised
plateaus)
� Over 13,000 samples analysed by XRF and c. 20% through bomb
digest process
� Longer term prospect due to infrastructure requirements
� Alufer will continue to evaluate other opportunities and licences
to further expand the resource base over time