ATHOL GOLD & WOODBOURNE SQUARE AG Tom Winnifrith – Chief Investment Officer
HAMELDON RESOURCES AIM classified Investment Vehicle Due to be withdrawn for non investment 26 th October 2010 – £500,000 raised via private placing 27.5m shares at 0.25p (premium to cash at time) 431,643 £1 Convertible Loan Notes – 0 Coupon (convertible at 0.25p) Increased NAV from 0.91p pre placing to 0.22p. Last stated NAV 0.591p Mandate to invest in Gold and Precious Metal stocks across LSE, ASX and TSX TW appointed CIO – no direct fee payable. T1ps IM – fee equivalent to 25% increase in NAV payable in shares at NAV each quarter (excl shares held by t1ps funds)
WHAT WE HAVE DONE Complete Board Overhaul Waseem Shiraz – Executive Director Director Crosby Capital Alistair Ford – Executive Director Leading junior gold miner commentator Editor of Minesite.com 17 Investments ranging between £30,000 - £43,000 Fully diluted Market Cap: £4.1m
ASCOT MINING 22 Nov 2010 – placing 111.7m shares at 0.6p Investment via £429,999 of Loan Notes Converted immediately (20p strike) 2,149,995 ordinary shares 3,009,993 Warrants (20p) – currently 29.5p Every 10p on Ascot share price – 0.1p on NAV
ASCOT - THE VALUATION Fully diluted Market Cap at 47.5p = £38m £3m cash (fully diluted) January: 600 – 1,000 oz March: 1,500 oz June (Boston + 3 smaller mines): 3,000 oz 3,000 oz at $1,400 – all in cash costs of c$400 Free cash flow of $3,000 (£2m) pcm Annualised cash flow of £24m June 2011 p/e of 1.5... Move to AIM imminent La Toyota lawsuit claim – further £24m?
THE PORTFOLIO African Consolidated Resources Market Cap: £33.2m 1 st mover in Zimbabwe Multiple Assets Huge potential JORC compliant Resources Ariana Resources Market Cap: £10.4m Turkey focused Red Rabbit – 50% JV – 2012 = 20,000oz, cash cost of $400 $1,400 Gold Price - $10m ($6.5m) free cash attributable Major upside through JV with European Gold Fields
Archipelago Resources (placing) Market Cap: £358m Toka Tindung Project, Indonesia (+other targets) 160,000 oz annualised $1,500 Gold, $425 cash costs Call that £146m free cash pa Chaarat Gold Market Cap: £106m Tulkubash Project Large & Growing JORC Gold Resource (4.009m oz at 4.15g/t)
Conroy Diamonds & Gold Market Cap: £16.6m Ireland Based Explorer (news expected imminently) Clontibret – 1m oz JORC Resource (potentially much larger) Clay Lake – recent drilling implies large resource Gold Prospect Precious Metals Market Cap: £42.8m Last NAV (31.12.10) – 128p Hambeldon Mining Market Cap: £39m 2011 – 30,000oz Au Move to underground mine – 100,000oz by 2013 $1,400 Au Price, low cash cost (underground) C$80m (£50m) free cash flow
Kryso Resources Market Cap: £44.5m Hot t1p for takeover in 2011 Large Chinese stakeholder 70% funding of Pakrut by China Non-Ferrous Metals Metallum Northern Ireland-centric focused 25 licenses covering 1,000km2 Privately held - PLUS IPO imminent at big uplift Private placing at 6p
Minera Market Cap: £108m Latin American focused low cash cost producer Corihuarmi in production since 2008 Don Nicolas: 50,000 – 70,000 oz early 2012 (news imminent) Ollachea: 120,000 oz to increase production to 200,000 by 2014 Norseman Gold Market Cap: £115m Australian focused producer 2011 – 100,000oz Au, cash cost of c$700, $1,400 Au price Call that £45m free cash flow Short term production via North Royal (completion of dewatering) estimated to increase production to 140,000oz pa
Olympus Pacific Minerals Market Cap: £120m Vietnam and Malaysia focus Producing from Bong Mieu & Phuoc Son – Vietnam 2011 – 80,000oz Bau Goldfield The next Medusa? – potential JORC resource of up to 4.75m oz Ortac Resources Market Cap: £38m RTO Templar Minerals – Central EU focus Kremnica Project Imminenet 760,000 JORC Resource update Current Resource – only along 1.1km of 6.5km strike
Ovoca Gold Market Cap: £29.4m Russian operative Net Tangible Assets (as of 30.6.10) £32m (shares in Polymetal through disposal of Goltsovoge Silver deposit) Stakhanovsky – internal resource estimate = 700,000+ oz Au Rassoshinskaya – ‘ Olcha ’ Au deposit – JORC + potential v high grade Nevsko-Pestrinskoye – surrounds huge Goltsovoge Ag deposit Pan African Resources Market Cap: £158m African Focused -100,000oz pa producer Net cash (30.6.10) – £c£13m - dividend Pheonix Platinum forecast within 2011 At $1,500 Gold – 20p per share Valuation: £290m
Vatukoula Gold Mines Market Cap: £148m Fijian Focus June 2011 – 100,000oz, cash cost $655oz $1,400 Gold price - $75m (£49m) free cash $1,700 Gold price - $105m (£70m) free cash Volta Resources Market Cap: £141m West African Focus Multiple Assets across: Burkina Faso, Ghana, Mali Circa 3m oz Resource due to be built upon
Portfolio also contains a material weighting in Silver via: First Majestic Silver Great Panther Silver Covered within the Woodbourne Square Portfolio...
WOODBOURNE SQUARE AG Rescue of failing media play 17 November 2010 – TW appointed as CIO Mandate to invest in Ag and precious metals – exposure to Silver producers via AIM Board changes Russell Darvill – RSH uk FD Nicolas Hall – CEO of Angel Mining EGM passed 7 th Jan 2011 - £1.5m net cash assuming non core asset sold for £175,000 ( c3.1p per share) Possible windfall tax claim of up to 4.5p per share So far 5 investments Current Market Cap at 5.38p: £2.7m
THE PORTFOLIO (SO FAR) First Majestic Silver Market Cap: £770m TSX listed Mexico focused Pure Senior Silver producer – currently 3 operating mines Flag Ship Mine - La Encantada – 4m oz Ag production pa Exploration upside across 4,000ha property La Parilla Mine – 1.4m oz Ag pa - 90m oz 43-101 resource San Martin Mine – 1.3m oz Ag pa – 65m oz 43-101 resource Del Toro – 3m oz by 2012 5 th Mine – Real de Catorce – potentially largest of all 2012 production atleast 9.7m oz $50/oz Ag price + $7.5 all in cash costs 2012 free cash flow $415m (£270m) Huge upside from 5 th mine likely to be largest producing mine
Kootenay Gold Market Cap: £25.3m TSX listed explorer and developer via JVs in Canada & Mexico Flagship Promontorio Silver mine in Sonora State, Mexico Initial estimates 10m oz resource (more drilling in 2011) Currently 5 projects awaiting drill results Numerous other options over assets 23.12.10 $6m placing – strong Balance Sheet Cash to accelerate drilling on flagship Silver Mine £200,000 warrants in Ascot Mining – 20p strike Justifiable due to the huge upside
Silver Wheaton Market Cap: £7.8bn (established in 2004) 15 long term Silver purchase agreements from high quality senior player assets Purchase Silver at or below Market price 2010 – 24m oz Silver forecast 2013 – 40m oz Company also has agreements to purchase 20,000oz Gold at $300/oz Highly operationally geared play on Silver and Gold with fixed operating costs of $3.9/oz and $300/oz respectively Great Panther Market Cap: £167m Primary Silver producer – 23% of Revenue from Au (produced as by product) 2 operating mines in Mexico – no royalty payments Low operating costs of $6-7/oz 2010 – 2.2m oz Silver 2012 – 3.8m oz 2012 – 3.8m oz at $50 = $167m (£105m) free cash (excl Au Revenues)
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