Edenville Energy plc Investor Presentation May 2019 Ticker: EDL - - PowerPoint PPT Presentation

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Edenville Energy plc Investor Presentation May 2019 Ticker: EDL - - PowerPoint PPT Presentation

June 2016 Edenville Energy plc Investor Presentation May 2019 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


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Edenville Energy plc

www.edenville-energy.com Ticker:EDL

June 2016

Investor Presentation May 2019

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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 or implied, is made as to the accuracy, fairness or completeness of the information or opinions contained in these slides or this in any doubt about the information contained in these slides or this presentation and no reliance should be placed on the accuracy, fairness

  • r completeness of the information contained in these slides and this presentation. Some of the statements 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 or employees or agents (including those of their parents or subsidiaries) accepts any liability or responsibility for any loss howsoever arising, directly or indirectly, from any use of these 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

  • r 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)); or (c) distributed to any individual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicitation or invitation to buy or subscribe any 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. The information contained in these slides and this presentation regarding the proposed Placing and the Acquisition constitutes price sensitive information or inside information with regard to the Company and its

  • securities. Recipients of the presentation should not deal or encourage any other person to deal in the securities of the Company whilst they remain in possession of such unpublished price sensitive information or

inside information. Dealing in securities of the Company when in possession of unpublished price sensitive information or inside information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act 1993 and/or the Market Abuse Regulation No. 596/2014 (MAR). Recipients of the presentation have consented to receive inside information under Article 11 (Market Soundings) of MAR and by agreeing to receive the information recipients are obliged to keep the information confidential.

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Share Price Performance Company Capitalisation

Share Price (15/05/2019) 0.10p 12 month share price range 0.43p - 0.0175p Shares in Issue 2,148,261,562* Options 244,574,707** Warrants Fully Diluted 127,500,000*** 2,392,836,269*** Current Market Cap £2.14M

Significant Shareholders as at 10 May 2019 Post Tranche 2

Pitchcroft Capital & Directors 13.0% 23.9% Brandon Hill Capital & Directors 8.7% 23.4% Edenville Directors 1.1% 5.4%

Corporate Information

Source: Yahoo

* Following issuance of Tranche 1 shares ** Options have a Volume Weighted Average Price of 0.33p *** A Further 2,050,000,000 new ordinary shares will be issued and 127,500,00 broker warrants will also be granted as part of the announced Tranche 2 Financing, subject to shareholder approval at the convened General Meeting on 17 May 2019 (not included in these numbers)

100 200 300 400 500 600 700 800 0.1 0.2 0.3 0.4 0.5 0.6 5/2/2018 8/2/2018 11/2/2018 2/2/2019 5/2/2019

Millions

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Board and Management Team

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

  • f remote coal, gold, silver and copper mines in Australia, Indonesia, Laos and the FSU.

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.

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Investment Case

  • Post fundraise and general meeting, the Company is funded to increase production to 10,000t per month within one

year by:

i.

Opening of a new mining area; and

ii.

minor refurbishments to existing infrastructure; and

iii.

Refurbishments to the plant.

  • The Board believe there is a potential market in excess of 10,000t per month, with intended infrastructure upgrades to

be funded through cash flow

  • The Board expect cashflow breakeven at a steady state of circa 6,000t of washed coal sales per month
  • Outstanding Lind Facility of US$983,250* expected to be repaid out of operational cashflow rather than through share

issuance

* Assumes shareholders approve the variation of the Lind Facility at the General Meeting on 17 May 2019

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Sales Strategy

  • The company reported revenues for the first time in H1 2018
  • Between 1 Jan 2018 and 31 March 2019, Edenville processed approximately 92,000 tonnes of Run of Mine

(“ROM”) Coal

  • Production included 18,000 tonnes of washed coal and 40,000 tonnes of fine coal
  • Circa 17,500 tonnes (mostly washed coal) were sold and shipped, the fine coal mostly stockpiled
  • Currently 8,000t per month in contracts plus several additional regular customers
  • Enquiries from industrial groups indicate there is an estimated potential market in excess of 10,000t per month
  • Beginning to sell fine coal and reviewing technology to upgrade quality and expand uses
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Rukwa Mine - Infrastructure

Source: Edenville Energy

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 offers options to take bulk coal to major centres at lower cost

  • Favourable position for infrastructure
  • Domestic and external markets accessible
  • Choice of transportation and export scenarios
  • Existing production sold FOB
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8 Positive Areas

¡

Established operation

¡

Regular sales and customers

¡

Significant potential for additional customers

¡

Plant upgrade completed

¡

New mining area acquired

¡

Beginning sales of fine coal

Areas for Expansion

¡

Increased production rate through the plant

¡

Opening up the new northern mining area

¡

Optimising water supply for plant

Existing Operations – Rukwa Mine

1000 2000 3000 4000 5000 6000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tonnes

Coal Production 2018 (non audited)

Washed Coal Production Fine Coal Production

Power Generation

  • Working towards a power plant development
  • Independent Feasibility Study on a 120MW coal-to-power project

provided an NPV10 of US$252M and IRR of 23% as announced in October 2016

  • After a Request for Qualification (RFQ) tender process put in

place by Tanesco in Q4 2018 Edenville has been advised by Tanesco that its coal-to-power project cannot proceed to development stage at this time

  • Negotiations with Tanesco continue and alternatives to the initial

terms are being explored by the Company

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Edenville Energy plc

Company Address: Aston House, Cornwall Avenue, London N3 1LF info@edenville-energy.com www.edenville-energy.com Nominated Adviser & Joint Broker: SP Angel Corporate Finance LLP www.spangel.co.uk Joint Broker: Brandon Hill Capital Limited www.brandonhillcapital.com Financial PR: IFC Advisory Limited www.investor-focus.co.uk

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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

  • The resource is drilled out to a depth of 200m at the Mkomolo and Namwele Deposits.
  • The coal measures vary between 4 metres in the south to 74m in thickness in the north.
  • The coal is ‘bar coded’ within a sequence of black shales, mudstones and clean sandstone, limestone and siltstone units.
  • The coal is classified as ‘Grade C’ Bituminous Thermal Coal which varies between 8 and 17MJ insitu.
  • At Muze only 5 drillholes have been completed outlining ~10Mtonnes of coal measures.

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.

Appendix 1 – Resource Estimate

Deposit Classification Tonnes Measured 36,958,091 Indicated 93,414,982 Inferred 1,923,817 Measured 17,158,826 Indicated 12,763,169 Inferred

  • Measured

7,355,248 Indicated 3,442,349 Inferred

  • Measured

61,472,166 Indicated 109,620,499 Inferred 1,923,817 Mkomolo Namwele Muze TOTAL

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Appendix 2 – Tanzanian Statistics

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: approximately 57.2m 2014 per capita GDP: US$912.7 Adult literacy in Tanzania has increased from 69% to 78% between 2002 and 2015 Real GDP growth 7.0% in 2015 and 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 Approximately only 33% of the population has access to electricity. According to McKinsey & Co. around 42% of businesses own generators TANESCO is currently constructing several new sub-stations and rolling out new power infrastructure in the country Due to strong economic growth, energy demand is growing at approximately 10% 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)

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Appendix 3: Operating Rukwa Mine Photos

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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Appendix 4: Plant, Loading Yard and Pit

Source: Edenville Energy