Objective Capital Global Mining Investment Conference - Gold: Brian Moritz
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Transcript of Objective Capital Global Mining Investment Conference - Gold: Brian Moritz
London Global Mining Investment Conference
Stationers Hall, LondonWednesday 30th September 2009
www.ObjectiveCapitalConferences.com
9.55 Gold
Brian MoritzChairmanGoldplat plc
Global Mining Investment ConferenceJunior Gold Company focussed on Africa
Presentation by Goldplat plc Chairman, Brian Moritz30 September 2009
Goldplat Overview
AIM quoted profitable and highly cash generative gold producer in Africa
Strategy to create a mid-tier mining house focussed on gold production, leveraged through revenues generated from its gold recovery operations
Three primary assets: South Africa - gold recovery plant Ghana - gold recovery plant Kenya - Kilimapesa Gold mining project
£0£2,000,000£4,000,000£6,000,000£8,000,000
£10,000,000£12,000,000
Year Ended30/06/07
Year ended30/06/08
Year ended30/06/09
Revenues PBT
production totalled 21,068 oz Au for FY2009
“Goldplat is profitable, therefore development is predominantly financed through its recovery
operations”
Goldplat Recovery (Pty) Limited – SA
Market leader in precious metal recovery from by-products of the mining process such as woodchips, fine carbon and waste grease
Provides an economic method for mines to dispose of waste materials while meeting environmental obligations
Produced 13,960 oz Au for FY2009 - generating significant cash flow and profit
Stocks of materials for processing increased to record levels of circa 53,000 oz Au
Continual upgrading of machinery enabling materials to be processed more efficiently - enhances economies of scale
Compliant with South Africa’s Black Economic Empowerment (‘BEE’) rules
Gold Recovery Ghana Limited
Gold recovery plant at the free port of Tema, Ghana (Free Zone Status with accompanying tax benefits)
Strategic location provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D’Ivoire, Senegal, DRC and Mauritania
Gold production increased 42% to 7,108 oz Au (2008: 4,083 oz Au)
Further improvements scheduled to maximise the plant’s efficiency and production - a new fluidised bed carbon incinerator was installed July 2009
89,000 tonnes of artisanal tailings stockpiled estimated to contain up to 35,000 oz Au - further stockpiles being evaluated
Strong relationships with major mining houses
Kilimapesa Gold Ltd, Kenya
Project located within historically producing Migori Archaean Greenstone Belt in south west Kenya – now 100% owned
Commenced processing development ore in January 2009
First sales due Q4 2009 - the mine will be developed using revenues from gold sales
Targeting high grade veins reached through adits at Kilimapesa Hill
Currently defining a JORC compliant resource – planning to expand production in stages with target of 20,000 oz per annum
Investigating other known high grade areas within the licence area with surface mining potential
The Increasing Gold Price
As we all know, the gold price goes from strength to strength!
Gold price is currently consolidating near the psychologically important US$1,000 barrier
The Decreasing Gold Price
Strengthening South African Rand against the Dollar: R7.45 = $1
Viewed from Johannesburg the graph is not the same
Falling Gold Production
The output of the world’s gold mines fell by 3.6% last year
More than half the 88-tonne fall in production was accounted for by a slump in gold mining in Indonesia
Supply from South Africa, recently the world’s largest producer, fell by 14% partly due power shortages
Australia’s output also fell by 14% amid reports that some fledgling mining firms faced closure because of scarce credit
Of the world’s six big producers, China, Russia and Peru all increased output
Investment taking over from jewellery as main user of gold
African Gold Production
Africa contributes over 20% of world gold production South Africa remains dominant in production, as well as finance and expertise for the
whole continent Ghana has cemented its position as the continent’s second largest producer
Factors of Operating in Africa
The investment climate – are governments pro foreign direct investment?
Are all countries the same – political, economic and social factors to consider, including corruption?
Mining codes – improvements over the last few years
Security of tenure – is the mining right secure?
Infrastructure – roads, water supply, power grids, telecommunications
Artisanal miners - “Go where the gold is”
Operating in South Africa
Positive
Long history of mining
World class design and construction facilities
Skilled labour available at all levels
Low operating costs by European standards
Good infrastructure
Sophisticated banking system with
availability of mining finance
Equity investment available through JSE and
AltX
A great climate, good hotels and restaurants!
Negative
Exchange control
Bureaucracy
Over-valued Rand
Inflation
Power and water problems
Crime
South African Mining Law
The Minerals and Petroleum Resources Developments Act – effective 1 May 2004
Surface rights and mineral rights
“Old Order” and “New Order” rights
Prospecting rights
Mining rights
Changes of control over mineral rights
Black Economic Empowerment
Corporate Issues for Junior Miners
Fund raising
Professional advisers
Liquidity
The share price
Corporate governance
IFRS
Why do we do it?
Contact
Brian MoritzGoldplat plc
Tel: +44 (0) 20 7318 0459Mobile: +44 (0) 7976 994300
Email: [email protected]
London Global Mining Investment Conference
Stationers Hall, LondonWednesday 30th September 2009
www.ObjectiveCapitalConferences.com
Brian MoritzChairmanGoldplat plc
Brian Moritz is a former Senior Partner of the London office of Grant Thornton, the 5th biggest accounting firm worldwide.In the late 1990s Mr Moritz initiated Grant Thornton’s move into the junior PLC area by forming a new Capital Markets division and registering as a Nominated Adviser for AIM companies. While Mr Moritz chaired that division, Grant Thornton floated more than 100 companies on AIM, of whom the majority were his personal contacts, concentrating on the natural resources sector.Mr Moritz was previously Chairman of Metal Bulletin PLC and African Platinum PLC before they were acquired by Euromoney and Impala Platinum respectively. Mr Moritz is currently Chairman or Non Executive Director of a number of smaller public companies, most of which are listed on the AIM and operate in mining and exploration in Africa.