Developing South Americas largest and most advanced PGM project - - PowerPoint PPT Presentation

Developing South America’s largest and most advanced PGM project

INVESTOR PRESENTATION JUNE 2017

DISCLAIMER

The information contained in this document (the “Presentation”) has been prepared by Jangada Mines plc (the “Company”) solely for informational purposes. It is subject to material updating, completion, revision, verification and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as amended (“FSMA”). This Presentation does not constitute, and the Company is not making, an offer of transferable securities to the public within the meaning of sections 85B and 102B of FSMA. The Presentation is simply a summary of the assets of the Company but existing and prospective investors should rely only on the Admission Document (which can be found on the investor page of the website) and must rely on their own examination of the legal, taxation, financial and other consequences of an investment in the Company, including the merits of investing and the risks involved. Prospective investors should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning any acquisition of shares in the Company. Certain of the information contained in this Presentation has been obtained from published sources prepared by other parties. Certain other information has been extracted from unpublished sources prepared by other parties which have been made available to the Company. The Company has not carried out an independent investigation to verify the accuracy and completeness of such third party information. No responsibility is accepted by the Company or any of its directors, officers, employees or agents for the accuracy or completeness of such information. The securities mentioned herein have not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under any U.S. State securities laws, and may not be offered or sold in the United States of America or its territories or possessions (the “United States”) unless they are registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States, or distributed, directly or indirectly, in the United States, or to any "US person" as defined in Regulation S under the Securities Act of 1933, including US resident corporations or other entities organised under the laws of the United States or any state thereof or non-U.S. branches or agencies of such corporations or entities. This Presentation is not being made available to persons in Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or any other jurisdiction in which it may be unlawful to do so and it should not be delivered or distributed, directly

• r indirectly, into or within any such jurisdictions.

Jangada Mines PLC – Investor Presentation – June 2017

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FORWARD LOOKING STATEMENTS

All statements of opinion and/or belief contained in this Presentation and all views expressed represent the directors’ own current assessment and interpretation of information available to them as at the date of this Presentation. In addition, this Presentation contains certain "forward-looking statements", including but not limited to, the statements regarding the Company’s overall objectives and strategic plans, timetables and capital expenditures. Forward-looking statements express, as at the date of this Presentation, the Company’s plans, estimates, forecasts, projections, opinions, expectations or beliefs as to future events, results or performance. Forward-looking statements involve a number of risks and uncertainties, many of which are beyond the Company’s control, and there can be no assurance that such statements will prove to be accurate. No representation is made or assurance given that such statements or views are correct or that the objectives of the Company will be achieved. The reader is cautioned not to place reliance on these statements or views and no responsibility is accepted by the Company or any of its directors, officers, employees or agents in respect thereof. The Company does not undertake to update any forward-looking statement or other information that is contained in this Presentation. Neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the information contained in this Presentation or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of contract, commitment or recommendation on the part of the Company or the directors of the Company to proceed with any transaction or accept any offer and the right is reserved to terminate any discussions or negotiations with any prospective

• investors. The Company reserves the right without any notice or liability to the recipient of this Presentation or its advisers to: (i) change any of the procedures, timetable or

requirements or terminate negotiations at any time prior to the signing of any binding agreement with investors; (ii) provide different information or access to information to different persons; (iii) agree variations to the property, rights and liabilities comprised in the Company; and (iv) negotiate at the same time with more than one person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. This Presentation should not be considered a recommendation by the Company or any of its affiliates in relation to any prospective acquisition of shares in the Company. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any of its affiliates, any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted for any such information or opinions or for any errors or omissions.

Jangada Mines PLC – Investor Presentation – June 2017

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THE OPPORTUNITY

Focused on establishing a low cost open pit operation

• JORC compliant resource of approximately 1 million ounces of PGM+Au
• Fully funded to undertake further drilling & complete scoping study & permitting costs

Jangada Mines PLC – Investor Presentation – June 2017

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AIM LISTED COMPANY DEVELOPING SOUTH AMERICA’S LARGEST AND MOST ADVANCED PLATINUM GROUP METAL (‘PGM’) PROJECT WITH SIGNIFICANT POLYMETALLIC UPSIDE

Low development risk due to previous exploration work totalling + US$35 million Clear path to shallow open pit production and expected cash flow within 12-18 months

• Short term target production of 30,000 ounces p/a within 12-18 months
• Three existing mining licences in place, with mineralisation commencing at surface

44 additional licences covering 55,000 hectares

• Exploration potential remains open for PGM
• Significant upside potential for nickel, copper, chrome, rhodium, gold, and vanadium

Strong PGM market fundamentals for low cost producers Management with extensive, proven track record and project experience

• COO Heinrich Muller managed the Pedra Branca PGM project for global major Anglo American Platinum

Significant polymetallic upside potential

• Nickel, copper, chrome, rhodium, gold, and vanadium
• High grade

A TEAM TO DELIVER

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Brian is a member of the Institute of Chartered Accountants with 20 years’ experience in corporate reconstruction and turnaround and performance improvement. This includes numerous large mining reorganisations and turnarounds, and he has been instrumental in the recapitalisation and listing of more than 15 companies on the ASX, TSX and AIM. His experience includes working in the United States, South America, Asia, and Australia. Luís is a geologist and lawyer with more than 25 years of business and mining experience in Brazil. He is an independent director of Brazil Minerals, Avanco Resources, Talon Metals and Harvest Minerals. He is the Managing Partner at FFA Legal, a legal firm he founded in Rio de Janeiro, Brazil, which is focused solely on natural resources companies. His practice is highly active in M&As for companies owning mineral assets and or operating mining enterprises in Brazil. His experience spans base metals, industrial minerals, diamonds, & precious metals. Heinrich was the MD of the Pedra Branca PGM project for three years from 2012 on behalf of Anglo American Platinum, where he had been an employee for 10 years. Most recently, he was involved in the exploration, commissioning and profitable operation of open pit, oxide PGM mines on the Bushveld Complex in South Africa. He has extensive knowledge in the geology, mining, and processing of platinum-nickel-copper-chrome deposits. Heinrich has permanent residency status in Brazil, is fluent in Portuguese and understands the Brazilian operating environment.

Brian McMaster

Executive Chairman

Luis Azevedo

Non Executive Director

Heinrich Müller

COO

OVER 50 YEARS OF COLLECTIVE EXPERIENCE IN FUNDING & DEVELOPING PROJECTS IN SOUTH AMERICA + IN-DEPTH KNOWLEDGE OF THE ASSET

Nick has over 25 years' experience in the mining sector across a number of geographies. He was CEO of Asia Resource Minerals plc, a FTSE listed mining company. Prior to this Nick was a senior executive with Anglo American plc and De Beers. Nick is a director of Ortac Resources, a UK listed mining company and chairman of Fodere Group, a private company that has developed technology to extract high value minerals from ore. Louis is a Chartered Accountant and fellow of The Institute of Chartered Accountants in England and Wales. He has over 30 years’ experience in corporate finance in the City, in particular with companies in the mining and oil and gas sectors. He has advised companies on all aspects of IPO’s, fund raisings, restructurings, M&A, contested bids and day to day corporate issues. Most recently he was CFO at AIM quoted Eland Oil & Gas and before then he was Managing Director at Northland Capital Partners.

Nick von Schirnding

Non Executive Director

Louis Castro

Non Executive Director

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PEDRA BRANCA PGM PROJECT

“One of the best undeveloped PGM Projects in the Western Hemisphere” “Platinum-Nickel-Chromium Deposits: Geology, Exploration and Reserve Base”*

*Published by Elsevier in new (2017) scientific book by Emeritus Scientist S.K. Haldar

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SNAPSHOT

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Location 280km SW from the port city of Fortaleza

• n a paved highway

Mining Licence Total project area covers 55,000 hectares, which includes 3 mining licences and 44 exploration licences JORC (2012) Compliant Resource 23 Mt at 1.3 g/t containing ~1m oz PGM+Au mineralisation from surface Mine Plan Conventional open pit mining and life of mine estimated to be +20 years Mineralisation Significant and continuous PGM mineralisation in a well defined and understood geological genetic model and mineralisation style Infrastructure Good infrastructure and power accessible Support Viewed as a regional economic driver for State Government

UNIQUE OPERATION WITH A CLEAR PATH TO EARLY PRODUCTION AND CASH FLOW

LOCATION

State of Ceará - BRAZIL

KEY FACTS

BRAZIL

Stable country with European-oriented culture and business practices Established, transparent, and reliable mining code Favourable to mining operations and investments Numerous active multi-national mining companies including Anglo American, Rio Tinto & BHP Billiton operating in Brazil IMF says “confidence in the Brazilian economy is slowly reawakening” and forecasts positive growth in 2017 US$64 billion in new infrastructure investments announced 2015 - China expected to invest +US$50 billion Management team that has successfully worked in Brazil for many years

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SUPPORTIVE INVESTMENT CLIMATE

AT A GLANCE KEY FACTS

• 8
• 6
• 4
• 2

2 4

Q4 15 Q4 16 Q4 17

GDP GROWTH RATES (in %) 2 4 6 8 10 12

Q4 15 Q4 16 Q4 17

INFLATION RATES (in %)

Source: WPIC Platinum Quarterly, Q4 2016 SFA Oxford

KEY STRENGTHS

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WITH DRILL DATA, GEOPHYSICS, GEOMETALLURGICAL TESTS, GRADE CONTINUITY AND A JORC RESOURCE, THE PROJECT IS PRIMED FOR RAPID DEVELOPMENT INITIAL PRODUCTION TARGETED Q3 2018

EXTENSIVE UNDERSTANDING

Low CAPEX and OPEX project +US$35 million spent by previous owners defining the opportunity >30,000 metres drilled to date at a drill spacing of 25-40 metres All data and core owned and catalogued

STABLE LOCATION

Politically stable country with reliable and secure licencing and Labour laws Ready access to infrastructure and port facilities

SIMPLE OPERATION

Surface deposits Low cost open pit production Circa 52% of current JORC resource contained within current mining licenses Simple low OPEX processing

STRONG MARKET

Supply deficit in global platinum market New markets opening

1960s 1969 1985 2003 2005- 2006 2012 2013

Discovered by

local government geologists 43,000 tonnes of material grading 10- 28% chromite

established Gencore and Rio Tinto identified platinum-

palladium mineralisation & completed airborne magnetic & radiometric surveys, mapping, soil sampling and trenching

Anglo American Platinum & Solitario JV

commenced extensive resource drilling on the target deposits bringing the total drilled metres to circa 30,000 metres Resource estimate & scoping study Drill core process metallurgical tests

SAMREC compliant

resource estimate Regional scale, high quality airborne geophysics & additional process metallurgy test

studies on ore

Jangada acquired the project and declared a

JORC (2012) compliant resource

HISTORIC DEVELOPMENT

+US$35 MILLION SPENT PROVIDES IN-DEPTH UNDERSTANDING OF THE PROJECT, ITS POTENTIAL, AND PATH TO PRODUCTION

2015- 2017 Jangada Mines PLC – Investor Presentation – June 2017

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WITH DRILL DATA, GEOPHYICS, METALLURGICAL TESTS, GRADE CONTINUITY AND A JORC RESOURCE, THE PROJECT IS PRIMED FOR RAPID DEVELOPMENT

CURRENT RESOURCE INVENTORY

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Zone Classification Tonnes (kt) PGE (g/t) Pd (g/t) Pt (g/t) Au (g/t) PGE (koz) Pd (koz) Pt (koz) Au (koz) Oxide

Measured 1,339 1.230 0.802 0.398 0.030 52.9 34.5 17.1 1.3 Indicated 3,836 1.555 0.932 0.584 0.040 191.8 114.9 72.0 4.9 Inferred 3,636 1.920 1.133 0.767 0.019 224.4 132.5 89.7 2.3 Sub Total 8,811 1.656 0.995 0.631 0.030 469.1 281.8 178.8 8.5

Transition

Measured 698 1.255 0.831 0.404 0.020 28.2 18.6 9.1 0.4 Indicated 1,536 1.307 0.833 0.440 0.033 64.5 41.2 21.7 1.6 Inferred 2,182 1.095 0.699 0.371 0.025 76.8 49.0 26.0 1.7 Sub Total 4,416 1.194 0.767 0.400 0.027 169.5 108.9 56.8 3.9

Sulphide

Measured 949 1.481 0.973 0.487 0.022 45.2 29.7 14.9 0.7 Indicated 2,586 1.005 0.570 0.396 0.040 83.6 47.4 32.9 3.3 Inferred 6,376 0.902 0.471 0.360 0.071 185.0 96.6 73.9 14.6 Sub Total 9,911 0.984 0.545 0.382 0.058 313.7 173.8 121.6 18.5

Total 23,138 1.280 0.759 0.480 0.041 952.4 564.5 357.2 30.7

JORC (2012) COMPLIANT RESOURCE WITH POTENTIAL TO INCREASE

• Current measured, indicated and inferred resources total 23 million tonnes at 1.3g/t PGM+Au
• Exploration targets provide “walk up” resource expansion opportunity

LICENCES & TARGETS

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• 3 existing mining licences cover circa 52% of

the current resource

• Primary surface target areas include Curiu,

Esbarro, Cedro & Trapia

• Grades include 803kt and 1.5Mt @ 2.84g/t

PGM

• Additional targets identified

Pitombeiras West target: Soil and magnetometry complete

DEFINED DEVELOPMENT PLAN TO MAXIMISE PRODUCTION POTENTIAL - REGULAR HIGH IMPACT NEWS AS DEVELOPMENT PROGRAMME INTENDED TO BE IMPLEMENTED IN THE NEAR TERM

DEVELOPMENT SCHEDULE

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Activity Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Infill Reserve Drilling Bulk Metallurgy Test Resource Upgrade Scoping Study Environmental Permitting Trial Mining Regular News Flow Drill Results Updated Resource Inventory Scoping Study Permitting Trial Mining

Work de-risks the project and increase the inherent value – multiple value triggers

MINE PLAN

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CONVENTIONAL PROCESSING METHODS MEANS LOW CAPEX & OPEX WHICH UNDERPINS VALUE CASE

Source: Tharisa

PROJECT DIFFERENTIATORS

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Pedra Branca PGM Project is open-pit

• Industry currently dominated by

relatively high cost underground

• perations in South Africa, Zimbabwe,

and Russia Supportive Investment Climate

• Many peers exposed to geo-political risk

and labour concerns Production of a chrome concentrate first significantly reduces required processing capacity and cost of floatation circuit Contract mining reduces fleet capex, and existing infrastructure including grid power and water in place Beaufort Securities research note dated May 2017 provides CAPEX guidance at US$30 million for 30,000 ounces per annum and the Competent Persons Report prepared by GE21 indicated all-in OPEX costs of circa US$360 per an ounce (includes mining and milling)

Pre-scoping estimates are that Pedra Branca is likely to be producing at US$600- US$650 per Pt ox.

Cash cost US$/oz

EXPLORATION UPSIDE

Portfolio of additional 44 contiguous exploration licences 11 deposits with confirmed PGM mineralisation identified and demonstrating chrome, nickel and copper mineralisation Additional undrilled targets show positive indicators of mineralisation Substantial regional airborne magnetic and radiometric surveying and sample test work already undertaken and interpreted

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FAVOURABLE REGIONAL GEOLOGY & LICENCE PACKAGE TRANSLATE INTO SCALABILITY

INFORMED MARKET VIEW

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“Lower mine supply and strong investment demand will keep the market in significant deficit in 2016”

• Johnson Matthey, Q4 2016

“Global supply was once again constrained, while overall demand for the metal remained constant”

• World Platinum Investment

Council (‘WPIC’), Q4 2016

PLATINUM IS ONE OF THE WORLD’S RAREST METALS WITH UNIQUE PHYSICAL & CATALYTIC PROPERTIES MAKING IT HIGHLY VALUED ACROSS A NUMBER OF DIVERSE DEMAND SEGMENTS

“A supply cliff is approaching so we see substantial deficits in the years ahead, and much higher platinum-group prices as a result. ”

• John Biccard, Investec

“We’re positive on the platinum group metals, and we have been for some time. ”

• Mike Dragosits, senior

commodity strategist. TD Securities

PGM MARKET

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Forecast platinum deficit for 2016 revised from 455,000 ounces to 520,000 ounces South Africa forecast to decrease output by 6% year on year (production 2006: 5.5 million

• unces; 2016: 4.19 million ounces; 2017 est: >4

million ounces) South Africa’s capital investment in platinum production has fallen from US$4 billion to US$1billion over a 7 year period Platinum demand expected to reach 9 million

• unces by 2025

Substantial supply gap with no current substantial increases in production capacity Pedra Branca PGM Project is one of only a handful of known development ready sources of PGM globally

STRONG DEMAND DYNAMICS AND GLOBAL SUPPLY CONCERNS

GLOBAL PLATINUM PRODUCTION IS DECREASING GLOBAL PLATINUM DEMAND IS INCREASING

South Africa Zimbabwe North America Russia Other Global refined production, 2016 Automotive Industrial Jewellery Investment Drivers of Demand

Source for all data: World Platinum Investment Council, Platinum Quarterly Q4 2016

MULTIPLE POLYMETALLIC POTENTIAL

Rich multi-element ore zone at Pedra Branca demonstrates the potential to produce platinum, palladium, rhodium, nickel, copper, gold and chrome

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HISTORIC DATA INDICATES SIGNIFICANT POTENTIAL FOR BOTH PRECIOUS AND BASE METALS ON THE JANGADA LICENCE AREAS

Palladium Pedra Branca has a platinum palladium ratio of ±1:1,7 Rhodium Past mineralogical studies have shown that the ore zone contains potentially consistent rhodium mineralisation Nickel Anglo American Platinum estimated through a SAMREC compliant report that Pedra Branca contains 125 Mlbs of nickel Copper Anglo American Platinum estimated through a SAMREC compliant report that Pedra Branca contains 25 Mlbs of copper Chrome Studies by Anglo American Platinum and Rio Tinto confirmed the significant chrome mineralisation throughout the ore zone and estimated a chrome resource of between 10% and 28% - targeting chrome resource of between 1.2 Mt and 3.5 Mt

ADDITIONAL METAL CREDITS

• Each additional metal can be simultaneously mined and processed at

little additional cost - all-in opex not expected to exceed US$12.5 per tonne

• At today’s prices, final in-situ basket value estimated to be between

US$150-US$160 per tonne

• Pricing fundamentals are positive:
• Rhodium has seen an increase from a 12-month low of US$620 to a recent

high of +US$1,000

• Chrome prices improved from US$79 per tonne in 2016 to US$390 per tonne

in 2017

• Palladium has been one of the best performing commodities for 12 months,

gaining more than 50% and expected to eclipse platinum price as it continues to move into strong deficit in 2017

• Nickel and copper prices being driven by advent of electric vehicles and

alternative power markets

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THE ADDITIONAL METALS HAVE THE POTENTIAL TO INCREASE THE VALUE OF THE PROJECT

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PRICE GRAPHS FOR PB METALS

“One of the best undeveloped PGM Projects in the Western Hemisphere*”

* Published by Elsevier in new (2017) scientific book by Emeritus Scientist S.K. Haldar

INVESTMENT CASE

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UNIQUE PGM INVESTMENT OPPORTUNITY OUTSIDE SOUTH AFRICA

Largest and most advanced PGM project in South America Approximately 1 million ounces of PGM+Au – potential to extend significantly Shallow, low capex, low opex project with a clear path to early production and cash flow Known upside potential for nickel, copper, chrome, rhodium, gold, and vanadium Well connected - good infrastructure - easy access PGM market fundamentals indicate substantial supply deficit Requirement to mitigate the reliance on South African supply In depth knowledge of the asset - COO managed the Pedra Branca PGM project for global major Anglo American Platinum

CONTACTS

BEAUFORT SECURITIES LTD 63 St Mary Axe London EC3A 8AA +44 (0)20 7382 8300 ST BRIDES PARTNERS LTD 3 St Michael’s Alley London EC3V 9DS +44 (0)20 7236 1177 JANGADA MINES Postal Address Level 2, 34 Dover Street London W1S 4NG Registered Address 5 Fleet Place London EC4M 7RD info@jangadamines.co.uk