RED ROCK RESOURCES Plc · 12/21/2018 · Investor Presentation: December 2018 Operations Update....
Transcript of RED ROCK RESOURCES Plc · 12/21/2018 · Investor Presentation: December 2018 Operations Update....
www.rrrplc.com Investor Presentation: December 2018
RED ROCK RESOURCES PlcAGM PresentationLondon Stock Exchange AIM Listed: RRR
www.rrrplc.com Investor Presentation: December 2018
RESOURCE DRIVEN GROWTH
DELIVERING RESULTS
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www.rrrplc.com Investor Presentation: December 2018
Natural Resource Developer
PRIMED FOR PERFORMANCE
Revenue Foundations
• Manganese Production• Colombian Gold Royalty • Significant Cash Inflows
Investment Upside
• Gold JORC Resource - Kenya• DRC Copper / Cobalt• Gold Exploration - Ivory Coast• Oil Exploration - Benin
Project Upside
£1.2m Revenue£78k Profit
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www.rrrplc.com Investor Presentation: December 2018
Copper/Cobalt/GoldDRC
Ivory Coast/ Benin
Migori GoldKenyaFour Points
Colombia
Jupiter MinesSouth Africa
DIVERSE ASSET PORTFOLIO
Steelmin Ltd.Bosnia
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Operations Update
Steelmin LtdIPO Completed14.5% HY Dividend Yield£2.4 Million Received in 2018JMS Stake Value to RRR ~£2.8m
Jupiter Mines
Colombia Disposal
Royalty - $3M total ValueEst ~$50k/qtr + rising to $100k/qtrLoan Note - $750k Received in Q2
RRR Holds 22% equity stakeEntered Production in 2018Seeking trade partners
MULTIPLE HIGH IMPACT EVENTS
DRC – Copper/Cobalt100% Economic InterestJV Negotiations Underway Pending Licence RenewalPure Upside Potential
Kenya Gold Project DD Completed3 JV Tenements Secured with VUP JV3 Additional Congo Galaxy TenementsInitial Exploration UnderwaySubstantial 2019 Newsflow Expected
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Jupiter Mines
Manganese Producer – South AfricaIron Ore Assets – Western Australia
RRR: 0.95%
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www.rrrplc.com Investor Presentation: December 2018
Jupiter Mines• Leading Global Manganese Producer – 3rd Largest• Relisted on ASX April 2018 as A$800m Company• One of Largest and Shallowest Resources Worldwide • 163MT @ 37.1% Mm + Top Cut of 145MT @ 31.58%• Experienced Management Team • Simple Drill/Blast + Load/Haul Mining• 8km Private Rail Siding Loop (5mtpa) – Exports from 4 Ports
JMS Alone Supports RRR Market Cap
60 Years Life of Mine – 418Mt Resource
Reliable On Site Power Generation
Well Established Offtake ChannelsLocated in Kalahari Basin – South Africa
Producing:over 3Mtpa
Capacity of 3.6Mtpa Production
49.9% Ntsimibintle Mining 37.1%OM Holdings 13%
JMS Stake in Tshipi Mine
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www.rrrplc.com Investor Presentation: December 2018
RRR Jupiter Investment
18.5MShares
0.95%Stake
Focus on production optimisationGoal to increase stake in Tshipi14.5% Half-Year Dividend Yield
£2.8MValuation
$955k to RRR 2017$3.2m to RRR in 2018 (IPO + distributions)$1.2m projected to RRR in 2019
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BLUE CHIP MINING ASSET
1.88MT US$414m US$205m US$216m
Production Revenues EBITDA Cash
Results - Tshipi
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3.34MT US$612m US$259m US$116m
1H2019
FY2018
www.rrrplc.com Investor Presentation: December 2018
DRC COPPER/COBALT JV
Exploration Underway
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www.rrrplc.com Investor Presentation: December 2018
Democratic Republic of Congoo One of the most underexploited and mineral
rich countrieso Estimated $24 trillion of untapped
cobalt/copper/diamonds/goldo Major supplier of the world’s cobalt needso Prolific and historic copper producer
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Cobalto Significant gap between supply and
demand is projected after 2020o Constrained supply – single
traditional source o Uses:
• Batteries• Aircraft engines• Corrosion/wear resistant
alloys• Jewelry
Copper
10,00014,00018,00022,00026,00030,000
2014
2015
2016
2017
e20
18e
2019
e20
20e
2021
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22e
2023
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24e
2025
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‘000
tonn
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Supply Demand
o Demand expected to exceed supply after 2019
o Uses:• Construction• Electronics• Cables and wires• Coins 60,000
100,000
140,000
180,000
220,000
2017
2018
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2019
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2020
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2021
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2022
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2023
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2024
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2025
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tonn
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Supply Demand
66%+ of World’s Cobalt
Mined in DRC
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Copper-Cobalt JVo Multiple Copper-Cobalt Tenements in Katanga Segment
of the Central African Copperbelto All three assets are mining/production licenses o Enables fast-track to production and cash flowso Access to some of the best Cu/Co tenements in the world
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50.1%
RRR Share in JV Bring Minerals SAU 24.9%Vumilia Pendeza SA 25%
TREMENDOUS OPPORTUNITIES
Kasombo South License – PE23602km²² located 5km W of LubumbashiLies at the eastern part of the Kasonta anticlineAnticline hosts well known copper/cobalt depositsNearby FE Limited (ASX Explorer) reported 25m @ 3.5% CuLess historical activity relative to other licenses
Kumukongo License – PE6635.3km² located 20km SE of KolweziLies at Western end of Kansuki structural trendEvidence of artisanal mining across the propertyFurther historical data being soughtSeveral significant neighbors
Musonoi License – PE49621.7km² located 3 km W of KolweziLies in Kolwezi Klippe – most prolific cooper/cobalt district in DRC Established mining area with good infrastructure7 major cobalt/copper deposits adjacent / within 5 kmSurrounded by Majors – Glencore/Gecamines/Chinese GroupsTarget potential of 400,000 tons of Cu and 25,000t of CoRegional grades range from 3-5% Cu and 0.5-1% CoMusonoi “Super Deposit” forms part of license
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Migori Gold Project
Gold Exploration – JORC Resource – Kenya
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RRR: 100%
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Migori Gold Projecto 100% Economic Interesto Located in Kenyan Greenstone Belto JORC Gold Resource of 1.2Moz @ 1.3g/to Longstanding Court Case with Kenyan Ministry of Mining Resolvedo Licence Restoration Expected Imminently o Potential Partnership / JV Opportunities Developing
Avg Grade:1.3 g/t
JORC Resource:1.2Moz
Prospect JORC Classification Mt g/t Au Moz
KKM Indicated & Inferred 17.8 1.01 0.58
KKM-West Indicated & Inferred 4.02 1.04 0.14
Nyanza Indicated & Inferred 2.3 2.73 0.20
Gori Maria Indicated & Inferred 3.8 1.16 0.14
MK Indicated & Inferred 1.4 3.07 0.13
Total 29.4 1.26 1.2
PURE UPSIDE POTENTIAL
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Four Points Mining
Gold Producer – Colombia
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www.rrrplc.com Investor Presentation: December 2018
Four Points Miningo High Grade Gold mine and Mill at El Limon, Colombiao Operated by Para Resources (CVE:PBR)o Ore Sourced from Mine + Regional Supplierso Completed $7m Upgrade Program – Mill to 225tpd+o Forecasted production increase in Q4 over Q3o Increasing royalty payments expected in 2019
INVESTMENT PAYING OUT
Royalty Estimates to RRR2018: $50,0002019: $300,0002020: $525,000
Avg Grade:8 g/t
Mining Costs:~$156/t
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www.rrrplc.com Investor Presentation: December 2018
Steelmin
Ferrosilicon Production – Bosnia
RRR: 22%
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www.rrrplc.com Investor Presentation: December 2018
Steelmin Ltd.o Refurbished Ferrosilicon Smelter Complex o Built in Yugoslavia in Early 1970s o Two Electric Arc Furnaces on Site o Total Capacity of 48,700t of Ferrosilicon + 9,700t of Microsilica
RRR Equity Stake in Steelmin22%
Targeting €36m Revenue + €7m EBITDA
Low Cost Brownfield Investment
Strategic Position Close to Euro CustomersLocated in Jajce, Bosnia Herzegovina
Access to Cheap Hydro Power –Pending Contract Negotiation
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www.rrrplc.com Investor Presentation: December 2018
Steelmin – Background
• Plant Built in 1897 by Wacker Chemie - DE• Owned by Electrobosna – Closed after War• Steelmin Ltd Refurbished - ~€18m Spent to Date
Used to Improve Steel ProductsContains 75% Silicon + 25% IronAdds Electrical Conductivity Improves Corrosion ResistanceDemand Growing 4.7% CAGR
FeSi~$1,500+
Primary by-product of FeSi ProductionUsed to Make High Performance ConcreteUtilized in Refractories and Ceramics
Microsilica€200/t
Silicon Metal$2600+/t
Alternate Main Product to FeSi98-99% Si – Higher Purity Used in Aluminum/Silicones/Solar
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www.rrrplc.com Investor Presentation: December 2018
48MW Elkem (Norwegian) Furnaceo Built 1973o Largest Furnaceo Est. 28,560t FeSi/pa
Furnace VFurnace IV
30MW Tagliferri (Italian) Furnaceo Built 1971o Has produced both silicon and FeSio Est. 20,160t FeSi/pa
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www.rrrplc.com Investor Presentation: December 2018
Other Projects / Investments
SIGNIFICANT UPSIDE POTENTIAL
DRC
ExplorationIvory Coast
Mining
Regency Mines(AIM: RGM)
Mining + Oil & GasBattery Metals
Multiple licenses covering Cu/Co and Gold prospective areas
80% Interest Early Stage
Gold/Copper/CobaltEarly Stage Gold Exploration
Underexplored with Huge Potential
Birmian Greenstone Belt
GoldNatural Resource DeveloperBattery Metals/Technology
Metallurgical Coal Base Metals
Various
RRR:80% RRR:100% RRR:0.35%
Elephant Oil
Oil & Gas
In Colombia, Arizona and BrazilMultiple Gold Assets
Burgeoning Gold Producer
Gold
RRR:5.11% RRR:1.57%
MiningPara Resources
Onshore Exploration – BeninUnderexplored West African
Transform MarginActivity Planned for 2019
Oil
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Option to Acquire 100% of Kimberlite Operation – Botswana
Existing Plant in Place – 100tphBulk Sampling Underway
Diamonds
RRR:2.67%
ExplorationAmulet Diamond
Corporation
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Deep Project Portfolio
Significant Exploration Upside
Key Takeaways
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Multiple Sources of Cashflow
www.rrrplc.com Investor Presentation: December 2018
Contact Details
Positioned For Outperformance
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www.rrrplc.com Investor Presentation: December 2018
DISCLAIMERThese presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for anysecurities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities. TheSlides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buy securities in theCompany. If any person is in doubt as to the contents of this presentation, or wishes to obtain advice as to the investment merits of theCompany’s securities, he should seek independent advice from a person who is an authorized financial services provider.
No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation orthe completeness or accuracy of such information. The information contained in these Slides and the accompanying verbal presentation is inthe public domain, however no representation or warranty, express or implied, is given by or on behalf of the Company, its shareholders,directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slidesand the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence,but excluding any liability for fraud).
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