Edenville Energy plc
www.edenville-energy.com Ticker:EDL
June 2016
Edenville Energy plc Company Presentation May 2018 Ticker: EDL - - PowerPoint PPT Presentation
June 2016 Edenville Energy plc Company Presentation May 2018 Ticker: EDL www.edenville-energy.com The information contained in these slides and this presentation is being supplied to you by Edenville Energy plc (the "Company) solely for
www.edenville-energy.com Ticker:EDL
June 2016
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The information contained in these slides and this presentation is being supplied to you by Edenville Energy plc (the "Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person. This document has not been approved by a person authorised under the Financial Services and Markets Act 2000 (as amended) (“FSMA”) for the purposes of section 21 FSMA and therefore these slides and this presentation is being delivered and made only to a limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the FSMA (Financial Promotion) Order 2005 (the“ Order”) or are high net worth persons within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. By accepting the slides and/or attending this presentation and not immediately returning the slides, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the slides and attend the presentation. These slides and this presentation do not constitute, or form part of, a prospectus relating to the Company nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any ordinary shares in the Company or advise persons to do so in any jurisdiction, nor shall they, or any part of them, form the basis of or be relied on in any connection with any contract or commitment whatsoever. Recipients of these slides and/or persons attending this presentation who are considering a purchase of ordinary shares in the Company are reminded that any such purchase must be made solely on the basis of the information that the Company has officially released into the public domain. Whilst all reasonable care has been taken to ensure that the facts stated in these slides and this presentation are accurate and the forecasts, opinions and expectations contained in these slides and this presentation are fair and reasonable, the information contained in this document has not been independently verified and accordingly no representation or warranty, express
are the opinions of the members of the Company. None of the Company, its members or any of their respective advisers, parents or subsidiaries nor any of their respective directors, officers
slides or this presentation or their contents. These slides and this presentation do not constitute a recommendation regarding the shares of the Company nor should the slides or the presentation be considered as the giving of investment advice by the Company or any of their shareholders, directors, officers, agents, employees or advisers. Recipients of these slides and this presentation should conduct their own investigation, evaluation and analysis of the business, data and property described therein. If you are in any doubt about the information contained in these slides or the presentation, you should contact a person authorised by the Financial Conduct Authority who specialises in advising on securities of the kind described in these slides and presentation. Certain statements within this presentation constitute forward-looking statements. Such forward-looking statements involve risks and other factors which may cause the actual results, achievements or performance expressed or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, general economic and business conditions, changes in government regulations, currency fluctuations, competition, changes in development plans and other risks. There can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation will, in fact, occur. These forward-looking statements are correct or represent honestly held views only as at the date of delivery of this presentation. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances and unanticipated events occurring after the date of this presentation except as required by law or by regulatory authority. By accepting these slides and/or attending this presentation, you agree to be bound by the provisions and the limitations set out in this disclaimer. You agree to keep permanently confidential the information contained in these slides or this presentation or made available in connection with further enquiries to the extent such information is not made publicly available (otherwise than through a breach by you of this provision). Neither the slides nor any copy of it may be (a) taken or transmitted into Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or the United States of America (each a “Restricted Territory”), their territories or possessions; (b) distributed to any U.S. person (as defined in Regulation S under the United States Securities Act of 1933 (as amended));
securities or in the context where its distribution may be construed as such offer, solicitation or invitation, in any such case except in compliance with any applicable exemption. The distribution of this document in or to persons subject to other jurisdictions maybe restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.
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KEY FACTS
¡Edenville Energy (“Edenville” or the “Company”) owns a 90% interest in the 170mt Rukwa Thermal Coal Mine, located in
Tanzania.
¡The Company is using a dual approach strategy to extract the most value from the project by combining near-term cash
flow generation from small-scale mining, while it advances the higher-value coal-to-power project in partnership with a Chinese multinational power company, SinoHydro China.
¡The Mine is currently producing up to 4,000t per month of coal for sale and the Company is seeking to increase production
up to 10,000t per month in the near term
¡At the higher production rate, Edenville expects the mine to generate sufficient cash flow to cover corporate overheads and
contribute to advancing the coal-to-power project, reducing future dilution for investors
¡The Feasibility Study on a 120MW coal-to-power project returned an NPV10 of US$252m (£176m) and IRR of 20%. ¡Edenville is examining the potential to increase power production to 300MW, potentially improving these robust economics. ¡The Bankable Feasibility Study for the coal-to-power project is being undertaken and funded by SinoHydro.
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Company Capitalisation
Shares in Issue 1,547,746,370 Warrants and Options 293,678,147 Fully Diluted 1,841,424,517 12 month share price range 0.35 – 0.84p Share Price (04/05/2018) 0.37p Market Capitalisation £5.7M
Board and Management
Jeffrey Malaiholo Non-Executive Chairman Rufus Short CEO Arun Srivastava NED Rakesh Patel Company Accountant
Major Shareholder
Interactive Investor Services Nominees Limited 15.58% HSDL Nominees Limited 11.60% Barclays Direct Investing Nominees Limited 11.15% Hargreaves Lansdown (Nominees) Ltd 10.40% W.B. Nominees Ltd 6.56% JIM Nominees Limited 5.99% HSBC Client Holdings (Nominees) Ltd 3.81%
Share Price Performance
Source: Yahoo
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Jeffrey Malaihollo, Non-Executive Chairman – Over 23 experience in varied roles within resources and finance. A PhD in geology having worked for Newcrest Mining and Rio Tinto. A mining analyst with Loeb Aron, a corporate finance firm in London, followed by several years of CEO/MD roles with AIM-listed Central China Goldfields, AIM-ASX listed Bullabulling Gold and ASX-listed Arc Exploration. Currently a Director of Copper Lake Resources, a TSX-V listed company. Rufus Short, Chief Executive Officer – Over 26 years experience in the resources industry in Australia, UK, Asia and Africa. Minerals Surveyor with MSc in Mineral Economics. Previously 6 years as an investment banker with Investec plc working on debt management, hedge funds, listed and private equity investments. Extensive experience in engineering and development
Arun Srivastava, Non-Executive Director – Previously CEO and founder of Essar Power India. 40 years experience in the power industry, spread across the turnkey development and operation of power plants, acquisition of fuel sources, liaison with regulators and industry representation; significant exposure to complete management of large size power projects, particularly coal and gas based projects. Rakesh Patel, Company Accountant (Non-Board) – Over 21 years as a Chartered certified accountant ; extensive experience in corporate finance, mergers, divestments and acquisitions, private placing and stock market flotation. Acted in
partner at Adler Shine LLP, a London based firm of Chartered Accountants.
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¡
Construction completed. Mining and washing operations underway. Commercial sales made.
¡
Thermal power plant quality coal – Typical washed values 5,800kcal, Ash 20%, Moisture 5%-9%.
¡
Tanzanian Government directive to ban or restrict coal imports provides market opportunities.
¡
10 Year Mining Plan developed to open up both commercial mining opportunities and coal to power.
¡
Planned production of up to 10,000 tonnes per month of processed coal, with stockpiling of power plant quality fine coal.
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Mining is managed by Edenville and a mix of owner operated fleet with haul trucks and support equipment from a local Tanzanian contractor.
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The wash plant is owned and operated by Edenville – Results in a considerable saving on plant processing costs compared with using a contract washing facility.
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Opening up of the coal mine is confirming both the quality and magnitude of fuel for the planned future development of the power project.
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The mine is located in a strong position in western Tanzania for transportation and logistics ______ Excellent road network north and south of the project Multiple access to Zambia going south (140/240km) ______ Lake Tanganyika (140km) provides barging options to take coal north to NW Tanzania, Burundi, Rwanda and the DRC ______ Access to the rail network via Mpanda (240km) Rail network of Tanzania undergoing major upgrade for both freight and passenger services
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Top: A Crushed Coal Stockpile Bottom: Mining Upper Seam Coal Top: Washed Coal Stockpile Bottom: Wash Plant Top: Mining Coal
Source: Edenville Energy
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Edenville has been formally asked to move forward plans on a coal fired thermal power project in the Sumbawanga area by the Ministry of Energy and Minerals (MEM).
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Edenville Project Concept Study has been accepted and approved by Tanesco.
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Rukwa Power Project is part of the “MEM Power System Master Plan 2016 Update”.
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MOU signed with Sinohydro of China who will complete the Bankable Feasibility Study at their cost.
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Independent Financial Model Developed which supports strong economics of previous study – NPV10 US$252m; +20% IRR.
¡
Updated mineable resource assessment and bulk sampling shows majority of coal can be fed to power plant with only minimal washing treatment required –providing a considerable cost saving on fuel and adding upside to the Feasibility Study.
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Potential to increase size of power plant further improving the economics.
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Power Plant Environmental Impact Assessment Study underway – c. 40% complete.
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10 Tanesco Planned National Grid System
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Planned New 400KV transmission line linking north- south within 7km of Rukwa.
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Part of “East Africa Power Pool” development plan, which will see a total of 2,302km under construction between Kenya, Tanzania and Zambia (ZTK Project).
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Completion of NW Powerline Project planned for 2020.
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Updated Feasibility Study
transmission line completed by international consultants for Tanesco – Project undergoing regulatory and funding requirements.
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Construction of Mbeya to Sumbawanga section planned in parallel with Rukwa Coal to Power Project.
Rukwa is strategically positioned for regional power consumption
Minemouth Power Plant Scenario
Source: Edenville Energy Source: Tanesco
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Company Address: Nominated Adviser & Broker: Financial PR: Aston House Northland Capital Partners Limited IFC Advisory Cornwall Avenue info@northlandcp.co.uk www.investor-focus.co.uk London www.northlandcp.co.uk N3 1LF info@edenville-energy.com www.edenville-energy.com
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¡
The Company’s core asset is the Rukwa Coal-to-Power Project, located in western Tanzania, ~25km by road to the north-east of the major commercial centre of Sumbawanga.
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The Rukwa Coalfields are comprised of the Mkomolo, Namwele and Muze deposits – historical small scale mining having taken place
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Total in-situ JORC Resources across 3 deposits: 173Mt
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90% of this resource tonnage lies within Mkomolo and Namwele; Muze still to be fully evaluated – high potential because of a historical 60 million tonne resource
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Approximately USD15M spent to date by Edenville to develop the asset and mine
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Edenville Energy plc through its Tanzanian subsidiary Edenville International Tanzania Ltd own a 90% interest in the coal project
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Ideally suited for coal fired power generation
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Edenville Energy plc own 100% of Edenville Power Tanzania Ltd established to develop the power plant
RUKWA COAL PROJECT
Source: Edenville Energy
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The JORC Compliant Mineral Resource Estimate completed in 2013 from Independent Consultants SMS outlined 173 Million Tonnes of which 61.5 Million Tonnes are in the Measured Category
Historically Muze contains the largest resource with a figure of 60Mtonnes quoted by the Geological Survey in 1943. Further drilling is required to complete the resource evaluation of this deposit.
Deposit Classification Tonnes Measured 36,958,091 Indicated 93,414,982 Inferred 1,923,817 Measured 17,158,826 Indicated 12,763,169 Inferred
7,355,248 Indicated 3,442,349 Inferred
61,472,166 Indicated 109,620,499 Inferred 1,923,817 Mkomolo Namwele Muze TOTAL
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Source: IMF, World Bank, Wikipedia, Cantor Fitzgerald
Tanzania is facing the dual challenge of under-development of its electricity sector and strong demand growth
Country Statistics
Population: 47.2m 2014 per capita GDP: US$912.7 Literacy: 73 to 76% Real GDP growth estimates: 7.5% (2015), 7.1% (2016) Political system: Unitary presidential democratic republic Next elections: Oct 2020, every 5 years
Power & Electricity Overview
Tanzania has total installed electricity capacity of around 1,500MW Presently, only 45% of urban areas are electrified and this falls to below 5% for rural areas. According to McKinsey & Co. around 42% of businesses own generators With support from the World Bank, Government of Finland, Japan and
Due to strong economic growth, energy demand is growing at approximately 8% p.a.
Power Generation Potential for Select African nations by Technology(1)(3)
Source: IMF, World Bank, Wikipedia, Cantor Fitzgerald
Distribution of population without access to electricity by region,
% of total population, 2011(6)