Dynamic Investing in Mining Sector | May 2020
May 2020 METAL TIGER PLC 1
Dynamic Investing in Mining Sector | May 2020 May 2020 METAL TIGER - - PowerPoint PPT Presentation
Dynamic Investing in Mining Sector | May 2020 May 2020 METAL TIGER PLC 1 Disclaimer This presentation (Presentation) is being provided to you (the Recipient) by Metal Tiger Plc (the the requirement to register as an investment
May 2020 METAL TIGER PLC 1
This presentation (“Presentation”) is being provided to you (the “Recipient”) by Metal Tiger Plc (the “Company” or “Metal Tiger”) for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any securities of the Company. The content of this Presentation has not been approved by an authorised person for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000. Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all
This Presentation is not an admission document or an advertisement and does not constitute or form part
Shares”) in the United States or any other jurisdiction where the sale of Shares is restricted or prohibited. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on in connection with or act as an inducement in relation to a decision to purchase or subscribe for
Presentation has been prepared in good faith, no representation or warranty, express or implied, is given by or on behalf of the Company, its respective directors and affiliates or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no responsibility or liability whatsoever is or will be accepted by the Company, its respective directors and affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Any such liability is expressly disclaimed. The promotion of the Shares and the distribution of this Presentation in the United Kingdom are restricted by law. Accordingly, this Presentation is directed only at (i) persons outside the United Kingdom to whom it is lawful to communicate it, or (ii) persons having professional experience in matters relating to investments who fall within the definition "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Or Order"), or (iii) high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order and any other persons who fall within other applicable exemptions under the Order, provided that in the case of persons falling into categories (ii) and (iii), the communication is directed only at persons who are also "qualified investors" as defined in Section 86 of the Financial Services and Markets Act 2000 (together, "Releva vant Perso sons"). Any investment or investment activity to which this Presentation relates is available only to, and will be engaged in only with, Relevant
You represent and agree that you are a Relevant Person. The Company does not intend to offer its securities into the U.S. through any public means and similarly does not intend to register its securities with the U.S. Securities and Exchange Commission and therefore any offer and sale into the U.S. will be required to be in compliance with an exemption or exemptions from various state and federal laws regarding securities registration. Further, the Company intends to restrict any offer and sale of its securities and its business activities to remain in compliance with exemptions from the requirement to register as an investment company in the United States. However, if the Company is unable to maintain compliance with the aforementioned exemptions and it was required to seek registration, it would likely have a material detrimental effect on the Company. The Company is not responsible to the Recipient for providing regulatory and legal protections afforded to customers (as defined in the rules of the Financial Conduct Authority) nor for providing advice in relation to the contents of this document on any matter, transaction or arrangement referred to in it. Neither of the Company nor any of its respective directors, officers or employees makes any representation or warranty, express or implied, as to the accuracy or completeness of the information or opinions contained in this Presentation. To the fullest extent permitted by law, the Company nor any of their respective members, directors,
any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this Presentation or its contents or otherwise in connection with the subject matter of this document. The contents of this Presentation are not to be construed as legal, financial or tax advice. Nothing in this Presentation is, or should be relied on as, a promise or representation as to the future. This document contains forward-looking statements, which reflect the views of the Company with respect to, among other things, the Company’s operations. These forward-looking statements are identified by the use of words such as “believe”, “expect”, “potential”, “continue”, “may”, “will”, “should”, “seek”, “approximately”, “predict”, “intend”, “plan”, “estimate”, “anticipate” or other comparable words. These forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Should any assumptions underlying the forward-looking statements contained in this Presentation prove to be incorrect, the actual outcome or results may differ materially from outcomes or results projected in these statements. The Company is under no obligation to update or review any forward-looking statement, whether as a result of new information, future developments or
The distribution of this Presentation in certain non-UK jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. Neither this document nor any copy of it may, subject to certain exemptions, be taken or transmitted into Australia, Canada, Japan, South Africa, Singapore, or the US or distributed to these countries or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organised under the laws thereof. This Presentation does not constitute or form any part of an offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe or otherwise acquire, any ordinary shares in the Company in any jurisdiction.
May 2020 METAL TIGER PLC 2
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Charles Hall Chairman Michael McNeilly Chief Executive Officer Mark Potter Chief Investment Officer Neville Bergin Non-Executive Director
For more info on directors please refer to end of presentation
Shareholder Ordinary Shares % Issued Share Capital Exploration Capital Partners 206,361,942 13.56% Michael Joseph 123,766,628 8.13% Estate of Terry Grammer 83,963,426 5.52% RIBO Trust (Rick Rule) 60,000,000 3.94%
135,526 52 Wk High/Low: 1.44/1.36p
Metal Tiger (AIM:MTR) employs a hand hands on
ynamic inve vest stment approach and pursues a hyb ybrid pu publ blic and priva vate eq equi uity investing model focused on the mining sector. The Company invests in direct asset level exposure with high return potential and a larger ownership position akin to an exploration and development company as well as primarily active and passive equity investments. Active investments are where Metal Tiger has Board representation and typically over a 10% investment stake. These investments are split into the following categories:
and are categorised into active or passive investments and can be both public or private. The Company also has a portfolio
pre-pr produ duction Roya yalties. Investments are assessed on se seve ven cor core categories that can help drive value:
Finally, if an opportunity arises that doesn’t fit the above it is categorised as a sp special si situation inve vest stment op
unity and would primarily be undertaken to balance the Company’s investment portfolio risk profile.
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Phase 1 (initial analysis):
Phase 2 (subsequent analysis):
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Metal Tiger network In-house research 1. Technical contacts/consultants 2. Brokers/Investment Bankers 3. Corporates 4. Co-investors 5. Other industry contacts 1. Desktop research 2. Bloomberg terminal 3. Technical papers 4. Licence checks (where available) 5. Industry publication subscriptions – Mining Journal and Mining News Industry Conferences
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*For demonstration purposes only, actual curve and performance will vary by individual investment
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Significant discovery potential Country / district / first mover advantage Application of improved exploration techniques Exploration value uplift potential / brownfields Financial restructuring
M&A
Macro / Micro trading
Equity Investments
Public Private Active Cobre Limited X X X X X Southern Gold Limited X X X X X X Thor Mining PLC X X X Passive Sandfire Resources Limited X X X X X X X Pan Asia Metals X X X
Project Investments
Kalahari Metals Limited X X X X X
*Investors should note that the Company holds other passive investments that are smaller in investment size and are held for trading/considered none core or legacy investments and should reference announcements or the Company’s accounts for further information. In addition the Company holds several royalties which are highlighted in this presentation and form a core part of the business.
METAL TIGER PLC 8 Metal Tiger holds the following three Royalties (under four Royalty agreements):
yalty 1: a US US$2m cap capped ed 2% net net sm smelter roya yalty over Sandfire Resources’ T3 project in the Kalahari Copperbelt (within PL190/2008 which is held by Sandfire Resources’ subsidiary Tshukudu Metals Botswana).
yalty 2: an uncap uncapped ed 2% net net sm smelter roya yalty over any future production over Sandfire Resources’ 100% held subsidiary Tshukudu Exploration Limited’s circa 8,000km2 licence holding in the Kalahari Copperbelt (including the area covered by PL190/2008 that is outside of the T3 project, in which Tshukudu Exploration Limited holds a beneficial (but not legal) interest).
yalty 3: an uncap uncapped ed cond conditional
net sm smelter roya yalty over all of Kalahari Metals Group's (“Kalahari Metals”) wholly owned licences, being seven licences covering, in aggregate, 6,650km2. These are structured as two separate royalty agreements based on how the licences are held under Kalahari Metals’ corporate structure but the ultimate guarantor is Kalahari Metals. Exciting, recently announced (17 April 2020), results at the A4 prospect located 8km west of the T3 Copper-Silver Project are already starting to add significant value potential to Roya yalty y 2. Sandfire has announced that its resource drill out was >50% complete prior to recent COVID-19 restrictions which suspended drilling. Assays are awaited for a further 12 holes drilled into the A4 resource area and six holes have commenced but not been completed as per their latest announcement. Some highlights s include: MO-A4-035D: 18m @ 5.2% Cu and 124g/t Ag from 77m down-hole (uncut), or 18m @ 3.9% Cu and 124g/t Ag from 77m down-hole (15% top-cut); and 4.4m @ 1.2% Cu and 26g/t Ag from 98m down-hole; and 6.6m @ 1.5% Cu and 39g/t Ag from 112.5m down-hole (15% top-cut) MO-A4-036D: 21.5m @ 2.4% Cu and 46g/t Ag from 67m down-hole; and 10m @ 0.9% Cu and 20g/t Ag from 102m down-hole; and 3m @ 2.3% Cu and 25g/t Ag from 133m down-hole MO-A4-039D: 24m @ 2.1% Cu and 51g/t Ag from 86.6m down-hole; including: 8.1m @ 5.2% Cu and 123g/t Ag from 93m down-hole; and 5m @ 1.0% Cu and 24g/t Ag from 142m down-hole; and 1.8m @ 1.6% Cu and 24g/t Ag from 262m down-hole May 2020
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and one other Metal Tiger Director as two nominee Board
covering a total area of 8,714km2 in the Kalahari Copper Belt of Botswana, comprising two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited and 51% held by Kalahari Metals (includes the Ngami Copper Project), and five exploration licences held by 100% owned subsidiary, Kitlanya Limited.
June 2018
US$4.2m
US$1.5m (in inclu luded in in US US$4.2m)
62.2% 2%
areas allowing for drill testing.
geophysics data collected over all project areas and processed.
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exploration company representing approximately 3.58% of Sandfire Resources Limited’s issued share capital. Majority of shares obtained as a result of the acquisition of MOD Resources by Sandfire Resources in 2019 (some purchased on market).
financing arrangement (“Financing Arrangement”) with a global investment bank (the “Lender”) pursuant to an Equity Option and Loan Facility (the “Umbrella Facility”), and as announced on 20 May 2020 a further equity derivative collar financing arrangement has been secured
in aggregate, 328,798 Sandfire shares (read full details
this latest announcement at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTR/14546430.html). The combined financing arrangements are secured over, in aggregate 2,003,923 Sandfire shares representing approximately 1.125% of Sandfire’s issued share capital.
1,675,125 Sandfire Shares from Metal Tiger;
price, being A$6.10 (subject to customary adjustments) (the “Reference Price”) (the “Put”);
agreed premium of 145% of the Reference Price (the “Call”); and
maturity date of 16 December 2022 (the “Loan”).
reflecting the value of the Put and Call at the time.
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Septe ptembe ber 2 2019 – comme mmenced tra rading on AS ASX on 31 Ja January ry 2020 (h (havi ving ra raise sed A$ A$10m m before re cost sts) s)
A$2.9m m (f (furt rther r A$ A$310,000 commi mmitted su subject to va vari rious s conditions s and appro rova val at AG AGM) M)
19.99% 99%
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5m @ 9. 9.8% 8% Cu, u, 3. 3.2g 2g/t Au, u, 34g 34g/t Ag, 3. 3.1% 1% Zn
s 3m @ 12.6% Cu, 4.7 g/t Au, 43.7 g/t Ag, 3.6% Zn
programme received assays from diamond drilling at three prospect areas within the Perrrinvale Project of Western Australia.
grade VHMS system containing primary copper, zinc, gold and silver at shallow depth including:
49m
28m
narrow massive base metal sulphide mineralisation.
including disseminated veinlet and blebby/clustered pyrrhotite, pyrite, chalcopyrite and sphalerite.
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the Perrinvale Project including: the existing Schwabe drill area, below recent drilling at Zinco Lago; off hole along the Zinco Lago - Lago Rame gossan trend; and adjacent to the recent Monti drilling.
take circa three weeks) over several targets (see image) to further refine targets for the next phase of drilling which is anticipated to commence shortly following receipt and interpretation of the results. For most of the conductors being investigated the existing Programme of Works approvals will allow for immediate drilling.
carried) minority stake in its 80% owned subsidiary Toucan Gold Pty Ltd (“Toucan”), which is the 100% holder of the Perrinvale Project.
transaction is project accretive.
completion of the transaction and approval by Cobre shareholders at their AGM anticipated to be held later this year.
Marc rch 2020
A$2.2m m (p (part rt of a A$ A$4m m ra raise se)
17.1% 1%
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May 2020 METAL TIGER PLC 17 Project Ownership Project Status Metallogenesis Historical Mining Completed Exploration Exploration Status Rig Priority
Kochang
50/50 JV with BMV*
Mine Development
Mesothermal 4 mines within 1 km Resource definition
Gubong
50/50 JV with BMV*
Mine Development
Orogenic Many mines w/i 20 km radius, 5 in immediate area Resource definition
Beopseongpo
100% Southern Gold
Granted
Low sulphidation epithermal multi-phase vein complex Local small mines Field mapping, rock chip sampling, first phase drilling, scout drilling
Drilling completed and ongoing at multiple vein targets**
Weolyu
100% Southern Gold
Granted
Low sulphidation epithermal Weolyu North main mine, small adits at Weolyu South Surface and mine adit channel sampling
1600m deep drill program prep to test 3 vein extensions***
Deokon
100% Southern Gold
Granted
Intermediate sulphidation epithermal vein breccia Main mine and nearby Shin adit (focus) Adit channel sampling, outcrop/float rock chip sampling, scout drilling
Drill ready to test below Shin Hill mine workings
Aphae
100% Southern Gold
Granted
Hybrid high/low sulphidation vein/breccia complex Former open pit and undderground mine Mine waste pile sampling
Drill ready to test down dip and along strike extensions
Dokcheon
100% Southern Gold
Granted
Epithermal Field mapping, surface outcrop/float rock chip sampling
Scout drilling planned
Hampyeong
100% Southern Gold
Granted
Epithermal Historic mine area included in package First phase drilling
Neungju
100% Southern Gold
Granted
Low sulphidation epithermal No, but 70km NW of an
Field mapping, outcrop/float rock chip sampling
Daeam Valley
100% Southern Gold
Application
Low sulphidation epithermal Local small mines Reconnaissance field mapping, rock chip campling
More detailed field mapping, petrology
Geum Mar
100% Southern Gold
Application
Epithermal Local small mines Reconnaissance field mapping, rock chip sampling
More detailed field mapping, petrology
*Bluebird Merchant Ventures (operator) ** Target veins/trends: Hand of Faith, Golden Palm, Spider *** Target veins/trends: Mystery, Surprise/Moonlight, Summit
Experienced international banker with over 30 years with HSBC in finance and insurance, appointed to Metal Tiger in December 2016.Overseas experience running complex businesses with a focus on strategy and corporate restructuring. Strong Asian ties and an Associate of the Hong Kong Institute of Bankers. Fellow of the Royal Geographic Society, BA (Hons) University of Sussex.
Experienced corporate financier spending his early career advising private, Main Market listed, AIM quoted and ISDX (NEX) listed companies appointed as Metal Tiger CEO in December 2016. Former Non-Executive Director of MOD Resources, Arkle Resources and Greatland Gold. Currently a director on numerous Metal Tiger investment and subsidiary entities – notably Kalahari Metals Limited and Cobre Limited Formerly worked for Arden Partners (AIM: ARDN) and with Allenby Capital advising public companies on corporate finance, BA (Econ) American University of Paris. Worked with early stage blockchain-focused start-ups while a corporate executive at Coinsilium (NEX: COIN).
With over 14 years’ experience in natural resources investments, is the Founder and Partner of Sita Capital Partners LLP, and investment management advisory firm specialising in mining investments appointed to Metal Tiger in January 2017. Former Director and Chief Investment Officer of Anglo Pacific Group LLP, a London listed resources royalty company where he successfully led a turnaround of the business through acquisitions and disposals. As founding member and Investment Principal for Audley Capital Advisors LLP, a London-based activist hedge fund was responsible for managing all UK listed and natural resources investments. Appointed Non-Executive Chairman of Artemis Resources Limited (ASX: ARV) – February 2020; Non-Executive Director
Graduated with an MA degree from Trinity College, University of Cambridge. May 2020 METAL TIGER PLC 18
Neville is a mining engineer with almost four decades of accumulated experience in the mining industry. He has had exposure to a range of commodities and both underground and open pit operational experience. His broad experience base encompasses many operational and executive roles, and five years’ experience as a non-executive director of both ASX listed and unlisted companies including Northern Star Resources Limited. Neville was previously Vice President of Gold Fields Australia Pty Ltd where he was in charge of operational management of two mines. Neville has extensive experience in technical due diligence having undertaken this type of investigation for several past
the Camborne School of Mines in the UK and currently runs his own mining consultancy business. May 2020 METAL TIGER PLC 19
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