Investor Presentation November 2006 · 2018-12-08 · Investor Presentation November 2006. 2...

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Investor Presentation November 2006

Transcript of Investor Presentation November 2006 · 2018-12-08 · Investor Presentation November 2006. 2...

Page 1: Investor Presentation November 2006 · 2018-12-08 · Investor Presentation November 2006. 2 Disclaimer ... • Bankable feasibility study (‘BFS’) commissioned from RSG Global

Investor PresentationNovember 2006

Page 2: Investor Presentation November 2006 · 2018-12-08 · Investor Presentation November 2006. 2 Disclaimer ... • Bankable feasibility study (‘BFS’) commissioned from RSG Global

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Disclaimer

These Presentation Materials (the "Presentation Materials") are being solely issued to and directed at persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Financial Promotions Order").These Presentation Materials are exempt from the general restriction on the communication of invitations or inducements to enter into investment activity and has therefore not been approved by an authorised person as would otherwise be required by section 21 or the Financial Services and Markets Act 2000. Any investment to which these Presentation Materials relates is available to (and any investment activity to which it relates will be engaged with) only persons described in the above paragraph. Persons who do not fall within the above category of investor should not rely on these Presentation Materials nor take any action upon these Presentation Materials, but should return them immediately to Corporate Synergy plc, 30 Old Broad Street, London EC2N 1HT. Postage and other reasonable delivery costs will be refunded.It is a condition of your receiving these Presentation Materials that you fall within, and you warrant to the Company that you fall within, the category of persons described in Article 19(5) of the Financial Promotions Order.These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in Chromex Mining plc (‘the Company’) nor shall they or any part of them form the basis of or be relied upon in any manner or for any purpose whatsoever.These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an investment activity and any decision in connection with a purchase of shares or other securities in the Company must be made solely on the basis of the final form AIM Admission document to be issued at a later stage, which may be different from the information contained within these presentation materials. Accordingly, neither Corporate Synergy plc nor the Company nor its directors makes any representations undertaking or warranty in respect of the contents of the Presentation Materials.The information contained in the Presentation Materials maybe subject to amendment, revision and updating in any way without notice or liability to any party. The Presentation Materials contain forward-looking statements which involve risk and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements depending on a variety of factors. No representations undertaking or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained herein, which have not been independently verified. The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has been no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials.The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’s professional advisers) or published, in whole or in part, for any purpose whatsoever. In particular, they must not be distributed to persons with addresses in Canada, Australia, Japan, the Republic of Ireland, or the Republic of South Africa, or to persons with addresses in the United States of America, its territories or possessions, or to any national or resident of Canada, Australia, Japan, the Republic of Ireland, the Republic of South Africa or the United States or to any corporation, partnership, or other entity created or authorised under the laws thereof. Any such distribution could result in a violation of Canadian, Australian, Japanese, Irish, South African or United States law. The Presentation Materials may not be used for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction. By agreeing to receive these Presentation Materials you are deemed to agree with the terms above pursuant to which the Presentation Materials are released.

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Overview

• Admitted to AIM September 2006

• Experienced management in place to advance project

• Established to acquire, control and expand chromite mining and processing operations in Southern Africa

• Initial focus South Africa – circa 70% of world’s known chromite deposits

• 74% equity stake in Chromex Mining Company (Pty) Ltd, which has a prospecting permit over the farm Mecklenburg 112 KT on the chromite rich Eastern limb of the Bushveld Complex in South Africa

• Bankable Feasibility Study in progress undertaken by RGS Global

• In discussions for off-take agreements and further chrome deposits

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Group Structure

Prospecting Rights overThe Farm Mecklenburg 112KT

Chromex Mining Company (Pty) Ltd

Umnotho weSizwe Investment Holdings*

Chromex Mining PLC

100%

74% 26%

*Umnotho is Chromex Mining plc’s BEE partner in Chromex Mining Company (Pty) Ltd as required in terms of the South African Mineral, Petroleum and Resources Development Act No. 28 of 2002

Following the issue by the Department of Minerals and Energy of a New Order prospecting right and the approval of the Minister to transfer ultimate ownership of that right to Chromex Mining PLC the group structure is:

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Board of Directors

Robert is a Chartered Accountant operating in Guernsey with many years experience of the Channel Islands financial services sector. He is a director of two listed investment trusts

Robert SinclairNon Exec Director

CEO of Umnotho, the Company’s BEE partner. He has developed the portfolio of Umnotho to include diamond, Platinum and coal assets thereby gaining substantial experience in the African resources sector. He is an International Management post-graduate of the University of Pretoria.

Vusi Nkosi Non Exec Director

James has spent 20 years working in the City. Having worked with Sheppards and Chase, PinchinDenny and C T Pulley, in 1992 he set up his own business, Everett Financial Management, which he chaired until 2003, when the business was sold to Sky Capital, an AIM quoted stock broker.

James BurgessNon Exec Director

An independent consultant geologist having retired from his role as senior geologist with Anglo Platinum after 26 years with the company. He is a well known authority on platinum having chaired leading conferences during his career and has an extensive knowledge on the Bushveld complex. He is a Geology graduate from the University of London.

Dr Chris LeeNon Exec Director

Nigel has held senior positions in a number of mining related and engineering companies, primarily in Southern Africa. These include group marketing director of a De Beers subsidiary group supplying specialised materials, engineering and technology to the industrial and mining sectors, and commercial director of Dunlop Industrial Products (Pty) Ltd, South Africa.

Nigel WyattChief Executive

Chartered accountant and former Senior Partner at Grant Thornton, Brian is a Director of a number of junior mining companies listed on AIM. He is well known in the junior mining financial community.

Brian MoritzChairman

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Strategy

• Create a chrome mining company controlling 100m tonnes chromite resource

• Complete the BFS for the Mecklenburg mine on the Eastern limb of the Bushveld Complex

• Raise mining finance to develop Mecklenburg mine

• Identify, acquire and develop additional chrome projects focused in Southern Africa

• Form strategic partnerships with other chrome players

• Become a cash generative profitable mining company and take advantage of the strong demand chrome ores

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Chromite

• Southern Africa contains circa 70% of the world’s chromite deposits and produces over 50% of the world’s ferrochrome (Source; Mineral Resources of South Africa - Council for Geoscience).

• Used in the manufacture of stainless steel.

• Other uses include chromium chemicals, chrome plating and foundry sands.

• No practical alternative to chrome in the manufacture of stainless steel.

• Demand for chrome ore is increasing - largely driven by stainless steel production in China.

• Metal Bulletin Research forecast that Chinese stainless steel production will increase by 30% in 2006, following an increase of over 21% in 2005.

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Mecklenburg Property

Source: The Company

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Mecklenburg Project

• Situated in central portion of Eastern limb of Bushveld Complex

• The property is host to the LG-6 and LG-6A duplex chromitite layers of the Bushveld Complex

• The LG-6 and LG-6A unit outcrops on surface on the property. The LG-6 unit is extensively mined to the south of the project

• Short lead time to production potential following completion of BFS

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Mecklenburg Mine - Location

Source: CPR Report by Caracle Creek International Consulting Inc. (“CCIC”)

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Property Maps

Source: CPR Report by CCIC

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Mecklenburg Mine Overview

• 10-year mine life

• Prospecting right granted December 2005 with automatic conversion to mining right

• Competent Person’s Report (‘CPR’) and Preliminary Mining Plan completed

• Bankable feasibility study (‘BFS’) commissioned from RSG Global – completion early 2007

• Fund raising for mining finance first half 2007

• Construction of the mine and associated plant – six to nine months

• Commence production by end of 2007

• Cash flow will be utilised to assist in development of further chromite deposits

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Drilling Programme

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Current Resource Calculation

Available for beneficiation5.8m

Inferred Resource2.27m

Indicated Resource7.15m

In situ chromite Resource9.42m

CategoryTonnes

Resource estimates consist of chromite contained within LG-6 and LG-6A chromitite layers.Drilling currently commencing is intended to move resources into measured category

(Estimates are SAMREC compliant - March 2000)

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Bord and Pillar Mining

Source: Wayne Sweet Consulting Report

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Project Scope

• High percentage of chrome content -above 40% Cr2O3

• High percentage lumpy material

• Cr:Fe ratios above 1.5

• Resource outcrops on surface and accessible via “on reef” incline shaft

• Low-cost mechanised bord and pillar mining

• DMS beneficiation

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Estimated Project Schedule

BFS commenced Aug 2006

6 – 9 month construction period

Est. production commences

Second fund raising

“17 months to production”

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Mining Finance

• At admission to AIM Chromex had raised a total of £1.7m

• Preliminary estimates of mining finance requirement approximately £11m, including all costs until positive cash flow is achieved

• The mining finance is expected to be raised by a combination of:• Contribution from BEE partner • Bank finance • New equity issue

• Funds required during the first half of 2007, immediately following BFS completion and conversion to mining rights

Notes: Figures calculated based on exchange rate of: £1.00 = R13.75. All figures are approximate

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Why Invest in Chromex?

• Defined development strategy

• Key prospecting permit over the farm Mecklenburg, which is located in world’s premier chromite mining district – reduced risk profile

• Short timeframe to production – cash generation - profitability

• Demand for chrome ores has resulted in prices reaching current levels

• Expansion potential - discussions currently in progress re additional chromite ore deposits

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The Local Area

Source: The Company

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Key Participants

RSG GlobalFeasibility StudyERM Southern AfricaEnvironmental Assessment

St Brides Media & Finance Financial PRFluxmansLegal Services S.A.Grant ThorntonFinancial Auditors S.A.Chantrey VellacottUK AuditorsMemery CrystalUK SolicitorsCorporate SynergyNominated Advisor/Broker

Project Participants

Corporate Participants

Steve Gaine ConsultingGeological ReportSweet ConsultingPreliminary Mine DesignCaracle Creek Intl. Consulting IncCompetent Person

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Contacts

Nigel Wyatt(Chief Executive)

Email: [email protected]: +27 (0) 82 900 6827

Brian Moritz(Executive Chairman)

Email: [email protected]: +44 (0)7976 994300

Website: www.chromexmining.co.uk