RED ROCK RESOURCES Plc...2019/02/25 · 24% HY Dividend Yield $0.025 per share due May ’19 RRR to...

www.rrrplc.com Investor Presentation: February 2019

RED ROCK RESOURCES PlcInvestor PresentationLondon Stock Exchange AIM Listed: RRR


RESOURCE DRIVEN GROWTH

DELIVERING RESULTS

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Natural Resource Developer

PRIMED FOR PERFORMANCE

Revenue Foundations

• Manganese Production• Colombian Gold Royalty • Significant Cash Inflows• Multiple Liquid Investments

Investment Upside

• Gold JORC Resource - Kenya• DRC Copper / Cobalt• Gold Exploration - Ivory Coast• Oil Exploration - Benin

Project Upside

£1.2m Revenue£78k Profit£3.6m MC

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Copper/Cobalt/GoldDRC

Ivory CoastBenin / Cameroon

Migori GoldKenyaFour Points

Colombia

Jupiter MinesSouth Africa

DIVERSE ASSET PORTFOLIO

Steelmin Ltd.Bosnia

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Operations Update

Steelmin Ltd24% HY Dividend Yield$0.025 per share due May ’19 RRR to receive ~£252k£3.3m Received since 2017JMS Stake Value to RRR ~£3.24m

Jupiter Mines

African Battery MetalsAcquired 6.89% Stake – RecapitalizedFocus on Key Battery MetalsRRR w/ Multiple Overlapping Interests

RRR Holds 22% Equity StakeEntered Production in 2018Shuttered Due to Electricity Prices Seeking Trade Partners

SIGNIFICANT UNDERVALUATION

DRC – Copper/Cobalt100% Economic InterestJV Negotiations Underway Pending Licence RenewalPure Upside Potential

Kenya Gold Project 3 JV Tenements Secured with VUP JV3 Additional Congo Galaxy TenementsInitial Exploration UnderwayFirst phase of work at Musonoi CompletedRRR seeking JORC Resource from Historical Data

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Colombia Disposal

Royalty - $3M total ValueEst ~$10k/qtr + rising to $100k/qtrShares in Para Resources (TSX:PBR)Para 1.4% stake worth £262k


Jupiter Mines

Manganese Producer – South AfricaIron Ore Assets – Western Australia

RRR: 0.95%

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Jupiter Mines (ASX:JMS)o Leading Global Manganese Producer – 3rd Largesto Relisted on ASX April 2018 – A$623m market cap o One of Largest and Shallowest Resources Worldwide o 163MT @ 37.1% Mm + Top Cut of 145MT @ 31.58%o Experienced Management Team o Simple Drill/Blast + Load/Haul Miningo 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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RRR Jupiter Investment

18.5MShares

0.95%Stake

Focus on production optimization24% FY2019 dividend yieldA$300m paid out in 3 yearsExceeded 70% payout policy

£3.24MValuation

A$852k to RRR 2017A$3.36m to RRR in 2018 (IPO + distributions)A$463k due in May 2019

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BLUE CHIP MINING ASSET

3.55MT US$756m US$399m US$216m

Production Revenues EBITDA Cash

Jupiter Mines Results

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3.34MT US$561m US$237m US$116m

LTM Nov18

FY2018


DRC COPPER/COBALT JV

Exploration Underway

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RRR: 50.1%


Democratic Republic of Congo

o 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

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

e20

22e

2023

e20

24e

2025

e

‘000

tonn

es

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

e

2019

e

2020

e

2021

e

2022

e

2023

e

2024

e

2025

e

tonn

es

Supply Demand

66%+ of World’s Cobalt

Mined in DRC

www.rrrplc.com Investor Presentation: February 2019 12

RRR License Locations

PRIME CENTRAL AFRICAN COPPER BELT TERRITORY


Copper-Cobalt JVo Tenements in Katanga Segment of the Central African Copperbelto Sizeable in-situ mineral valueso Major mining companies surround RRR holdings o 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


Majors Surround Musonoi

CENTRALY LOCATED – HUGE UPSIDE


Migori Gold Project

Gold Exploration – JORC Resource – Kenya

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RRR: 100%


Migori Gold Projecto 100% Economic Interesto Located in Kenyan Greenstone Belto JORC Gold Resource of 1.2Moz @ 1.3g/to Court Case with Kenyan Ministry of Mining Resolvedo Licence Restoration Expected Neartermo 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


Four Points Mining

Gold Interests – Colombia + USA

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RRR: Ongoing Disposal


Four Points Miningo High Grade Gold mine and Mill at El Limon, Colombia

o 3% net smelter royalty over $1mo 0.5% royalty over $2m

o Ore Sourced from Mine + Regional Supplierso Completed $7m Upgrade Program – Mill to 225tpd+o Increasing royalty payments expected in 2019-20o Operated by Para Resources (CVE:PBR)

o RRR with 1.41% stake in Para worth ~£262ko Para operating second mine at Gold Road, Arizona, USA

INVESTMENT PAYING OUT

Royalty Estimates to RRR2018: $45,0002019: $150,0002020: $500,000

Avg Grade:8 g/t

Mining Costs:~$156/t

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Steelmin

Ferrosilicon – Bosnia

RRR: 22%

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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 €35m Revenue + €7m EBITDA

Low Cost Brownfield Investment

Strategic Position Close to Euro CustomersLocated in Jajce, Bosnia Herzegovina

Access to Cheap Hydro Power

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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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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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Other Projects / Investments

SIGNIFICANT UPSIDE POTENTIAL

DRCExploration

Ivory CoastExploration

African Battery Metals(AIM: ABM)

Exploration

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

GoldFocus on Metals Key to Current

and Future Battery TechnologiesDRC/Cameroon/Ivory Coast

Recapitalized and Moving Forward

Various

RRR:80% RRR:100% RRR:6.89%

Elephant Oil Oil & Gas

Colombia and ArizonaMultiple Producing Gold Assets

Burgeoning Gold ProducerRRR with Royalty + Equity Stake

Gold

RRR:5.11% RRR:1.41%

MiningPara Resources

(TSX: PBR)

Onshore Exploration – BeninUnderexplored West African

Transform MarginActivity Planned for 2019

Oil

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Option to Acquire 100% of Kimberlite Operation – BotswanaExisting Plant in Place – 100tph

Diamonds

RRR:2.6%

ExplorationAmulet Diamond

Corporation


Deep Project Portfolio w/ Exploration Upside

MC of £3.6m w/ Listed Assets of £3.6m

Key Takeaways

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Multiple Sources of Cashflow


Contact Details

[email protected]

Positioned For Outperformance

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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 any securities of the Company andthey should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do notconstitute a recommendation regarding any decision to sell or buy securities in the Company. If any person is in doubt as to the contents of this presentation, or wishes toobtain advice as to the investment merits of the Company’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 or the completeness or accuracyof such information. The information contained in these Slides and the accompanying verbal presentation is in the 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 theinformation or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in thecase of negligence, but excluding any liability for fraud).

The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer is unlawful. The distribution of theSlides in some jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any suchrestrictions.

Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that necessarily involve risks and uncertainties. Forward-lookingstatements may generally be identified by the use of terminology such as “may”, “will”, ”expect”, ”intend”, “plan”, “estimate”, “anticipate”, “believe”, or similar phrases. Otherthan statements of historical facts, all statements, including, among others, statements regarding the future financial position of the Company, business strategy, projectedlevels of growth in its market, projected costs, estimates of capital expenditures and plans and objectives of management for future operation, are forward-looking statements.The actual future performance of the company could differ materially from these forward-looking statements. Important factors that could cause actual results to differmaterially from these expectations including known and unknown risks. Undue reliance should not be placed on these forward-looking statements.

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RED ROCK RESOURCES Plc...2019/02/25 · 24% HY Dividend Yield $0.025 per share due May ’19 RRR to...

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