Introducing GoldBridges Global Resources Plc October 2014 - - PowerPoint PPT Presentation
Introducing GoldBridges Global Resources Plc October 2014 - - PowerPoint PPT Presentation
Introducing GoldBridges Global Resources Plc October 2014 Important notice The content of information contained in these slides (the Presentation) has not been approved by an authorised person within th e meaning of the Financial Services
Important notice
The content of information contained in these slides (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation has been prepared by, and is the sole responsibility of, the directors of GoldBridges Global Resources Plc (the “Company”). Those directors have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefore. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, partners, employees or advisers or any other person as to the accuracy, fairness or the completeness of the information or opinions contained herein, and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions or any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the
- Company. The contents of this Presentation are subject to updating, completion, revision, further verification and amendment without notice.
The Presentation is directed at authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles
- f the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5))
and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation nor take any action upon it. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, South Africa, Japan, Australia or the Republic of Ireland, or to any corporation, partnership or
- ther entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory
- requirement. The recipients should inform themselves about and observe any such requirements or relationship.
The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, South Africa, Japan, Australia or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, South Africa, Japan, Australia or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one
- r more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or
- projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the
date of this Presentation.
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Astana Sekisovskoye mine Almaty
GoldBridges Global Resources Plc was previously known as Hambledon Mining Plc. It changed its name after an offer was accepted by African Resources to acquire up to 60% of Hambledon shares. The company is AIM listed, ticker GBGR LN GBGR owns 100% of the Sekisovskoye
- pen pit gold mine in East Kazakhstan and is focused on
developing the higher grade underground deposit. In 2013 GBGR produced 30,670 oz of gold and 34,905 oz
- f silver. H1 2014 gold production was 12,673oz.
Sekisovskoye mine development project has been approved for inclusion in the State Program on Forced Industrial-Innovative Development (SPFIID). We expect gold output to be greater than 100,000oz from 2017 onwards. Growth options beyond Sekisovskoye, such as the Karasuyskoye Goldfields.
Introducing GoldBridges Global Resources Plc
Management Team – Proven Track Record
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The Assaubayev family is a proven operator of gold mines in Kazakhstan and is supported by an experienced Board. Mr Aidar Assaubayev appointed CEO African Resources offer made to Hambledon
Financial Results – A Profitable Business
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* Includes a write back of US$9.3M of provisions in FY13 after the successful resolution of the fines imposed from the tailings dam 3 incident in 2011. Includes US$2m tax credit in H1 FY14 H1 FY14 FY13 FY12 Revenue (US$m) 16.7 42.4 38.9 Operating profit (US$m) 3.3 3.1
- 20.5
Net profit * (US$m) 3.8 1.5
- 22.1
EPS (c/share) 0.19 0.15
- 2.36
Net assets (US$m) 78.6 58.4 29.3 Operating cashflow (US$m)
- 0.8
7.3
- 9.9
Investing cashflow (US$m)
- 5.1
- 7.5
- 9.3
Financing cashflow (US$m) 22.3
- 0.3
20.0 Total cash flow (US$m) 16.4
- 0.4
0.7 Year end (31 Dec/30 June) cash position (US$m) 18.5 2.1 2.5
Sekisovskoye - Production Results – Significant Improvements YoY
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- Operating cash cost per ounce of US$903 in FY13, a 15% reduction from US$1,046 in 2012. Now
reduced to US$744/oz in H1 FY14;
- Positive FY13 contribution from underground mining of 7,157oz (2012: 3,347oz);
- Average FY13 underground grade of 3.5g/t vs 2.75g/t in 2012.
H1 FY14 FY13 FY12 YoY % change Total ore milled (t) 333,490 701,361 628,731 12% Gold grade (g/t) 1.42 1.61 1.37 18% Recovery (%) 83.4 84.3 80.4 5% Poured gold (oz) 12,694 30,670 22,470 37% Poured silver (oz) 17,380 34,905 27,198 28%
Sekisovskoye – an Operating Mine with Huge Expansion Opportunities
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- Producing gold for 8 years from open pit but
vast underground reserves and resources already delineated.
- Move from small open pit mine to large
underground operation will increase gold
- utput significantly and life of mine.
- Geology and metallurgy well understood.
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Hole Identification Number Northing (m) Easting (m) RL (masl) Azimuth (Degrees) Hole Angle (Degrees) Hole Length (m) Intercept Start (m) Intercept Finish (m) Interval (m) Grade (g/t) EXP276 7,233.6 6,744.6 276.0 225.6 10.5 6 6 9.2 EXP226 7,224.8 6,764.4 263.9 46.4 81.0 15 15 15 5.9 EXP219 7,225.2 6,772.4 263.9 46.4 64.5 18 4 18 14 6.5 EXP209 7,219.9 6,780.8 263.8 46.4 64.5 17 16 16 9.8 EXP210 7,219.4 6,780.2 263.9 46.4 85.5 15 8 8 13.1 EXP259 7,248.1 6,738.6 264.2 46.4 57.5 18 1 10 9 6.9 EXP255 7,244.6 6,742.1 264.2 46.4 58.5 18 4 14 10 5.3 EXP240 7,234.4 6,753.0 264.4 46.4 81.5 16 0.5 5.1 4.6 24.1 EXP238 7,234.5 6,753.2 264.8 46.4 30.0 12 4 4 17.9 EXP231 7,228.1 6,761.5 263.9 46.4 83.0 14 14 14 4.5 EXP271 7,253.8 6,730.1 264.2 226.4 68.5 9 8 8 6.1 EXP268 7,257.2 6,734.4 264.7 46.4 53.0 19.5 9 9 5.8 EXP269 7,257.0 6,734.2 264.3 46.4 84.0 15 15 15 9.5 EXP265 7,251.1 6,736.2 264.2 226.4 89.0 15 15 15 4.7 EXP263 7,251.1 6,736.3 264.9 46.4 41.0 12 11 11 11.0
Near Term Drilling Results For 2014 Drilling Programme To Date
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Hole Identification Number Northing (m) Easting (m) RL (masl) Azimuth (Degrees) Hole Angle (Degrees) Hole Length (m) Intercept Start (m) Intercept Finish (m) Interval (m) Grade (g/t) D316 7,399.1 6,882.5 258.4 225.6 34.0 200 137 143 6 8.2 and 181 193.5 12.5 15.8 D315 7,399.1 6,882.5 258.1 227.3 42.6 207 194 207 13 7.0 D316A 7,399.1 6,884.5 258.4 226.0 34.6 200.5 182 198.2 16.2 4.4 D215 7,376.7 6,863.5 262.8 217.4 34.0 160.5 124.2 139 14.8 3.0 D215 7,376.7 6,863.5 262.8 220.6 27.3 157.5 137 149 12 10.0 D216 7,376.7 6,863.5 262.8 220.3 18.3 171 149 160 11 6.8 D217 7,376.7 6,863.5 262.8 225.5 48.6 180 169 180 11 5.2 D219 7,376.7 6,863.5 262.8 226.8 33.8 166.5 158 163.3 5.3 8.5 D226 7,376.7 6,863.5 262.8 235.3 17.1 171 153 163.2 10.2 13.3 D225 7,376.7 6,863.5 262.8 235.8 25.2 169.5 148 161.6 13.6 3.1 D223 7,376.7 6,863.5 262.8 235.9 31.9 175.5 154 169.7 15.7 6.4
Mid Term Drilling Results For 2014 Drilling Programme To Date
Surface (+350masl)
- 400masl
- 800masl
0masl
Hole Identification Number Northing (m) Easting (m) RL (masl) Azimuth (Degrees) Hole Angle (Degrees) Hole Length (m) Intercept Start (m) Intercept Finish (m) Interval (m) Grade (g/t) SK-1 7,540.6 7,072.6 0.9 226.4 77.0 771.0 513.0 516.0 3.0 10.3 519.0 522.0 3.0 12.2 546.0 549.0 3.0 18.2 594.0 597.0 3.0 12.4 630.0 633.0 3.0 10.5 705.0 708.0 3.0 12.5 741.0 744.0 3.0 11.5 SK-3 7,596.4 7,015.2 0.8 226.4 77.0 828.0 237.0 240.0 3.0 12.5 258.0 261.0 3.0 14.1 270.0 273.0 3.0 11.2 309.0 312.0 3.0 13.1 336.0 342.0 6.0 9.7 369.0 372.0 3.0 16.3 387.0 390.0 3.0 13.4 399.0 402.0 3.0 10.5 429.0 432.0 3.0 12.5 450.0 453.0 3.0 13.4 477.0 480.0 3.0 11.5 504.0 510.0 6.0 7.8 558.0 561.0 3.0 13.3 591.0 594.0 3.0 10.1 642.0 645.0 3.0 12.7 672.0 675.0 3.0 17.6 702.0 705.0 3.0 14.3 774.0 777.0 3.0 11.6 813.0 816.0 3.0 12.2 SK-6 7,653.4 6,959.1 0.6 226.4 77.0 828.0 213.0 216.0 3.0 10.1 435.0 441.0 6.0 10.9 447.0 453.0 6.0 10.2 462.0 477.0 15.0 6.6 630.0 639.0 9.0 4.8 654.0 663.0 9.0 4.9 SK-9 7,766.6 6,845.9 0.6 226.4 77.0 645.0 219.0 258.0 39.0 5.5 273.0 285.0 12.0 4.6 567.0 612.0 45.0 6.1 618.0 624.0 6.0 10.8
- 800masl
- 400masl
2014 Deep Drilling
263masl
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Sekisovskoye - Underground Orebody & Mining Zones
Surface (+350masl)
- 400masl
- 800masl
- 1500masl
- 400masl
Competent Person’s Report- Due Q4 2014
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Venmyn Deloitte appointed in November 2013 to prepare an Independent CPR with the objectives of;
- Preparing an updated JORC Compliant Reserve and Resource Estimate from internal GKZ
estimates
- CPR to validate key strategic review outcomes(released Q4 2013) of:
Key strategic review outcomes (Q4 2013) Management U/G gold resource estimate 6Moz, up from 1.8Moz Management U/G resource grade estimate 5.34g/t Au Life of mine production ~100,000oz by 2017 Life of mine 22 years LOM production costs US$560/oz Development capex US$130m Estimated free cash flow over LOM ~US$1bn
Conceptual Timeline for the Underground Development
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- The processing plant and surface infrastructure is already in place - minimal capex
required
- The open pit mine will gradually phase out by 2016.
- During 2014-15 development work will continue for the underground which
includes;
- An initial haulage decline to access early near surface gold ore
- Development of the hoisting and ventilation shafts for deeper ore in the
future.
- Underground ore production expected to match plant capacity of 0.85Mtpa during
2016, with the potential to expand.
Gold Processing – Proven Technology
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- Metallurgy well understood - GBGR
has 8 years experience at Sekisovskoye mine.
- Test work on the Sekisovskoye
underground ore indicates 84% recovery for gold and 75% for silver, in line with recoveries achieved processing near surface ore
Growth Beyond Sekisovskoye Mine
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- GBGR purchased the geological data for the Karasuyskoye Goldfields for US$27.5M.
- It is adjacent to the current Sekisovskoye operations.
- Potential to contain internal GKZ resources of 9Moz of gold and 16Moz of silver.
- Karasuyskoye covers an area of approximately 198 km2.
- There is potential for both open pit and underground mining.
- GBGR has applied for a mining licence covering the Karasuyskoye Goldfields.
- Assuming this approval is forthcoming, the following is planned:
- Completion of limited additional verification work
- Engage a geological and mining consultant to undertake an independent CPR.
Karasuyskoye provides GBGR with gold production growth potential beyond the Sekisovskoye underground expansion. The opportunity exists to combine both operations, which could eventually ensure significantly higher gold production.
Environmental and Social Compliance all in Place
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- All regulatory permits are in place to allow open pit and underground mines to operate at
Sekisovskoye.
- GBGR operates to the approved Environmental and Social Impact Assessment and reports
performance quarterly to the authorities.
- GBGR conducts consultative meetings with its external stakeholder when implementing new mining
plans or changes to existing ones.
- GBGR makes a 1% of operating costs contribution as required law for compliance with the
Environmental laws in Kazakhstan.
Contact us
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Aidar Assaubayev, CEO Rajinder Basra, CFO Louise Wrathall, Investor Relations +44 (0) 207 932 2456 +44 (0) 7789 602 352 louise@aglocore.com
Appendix: market information
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Market information Share price (p/share) 2.8 Ticker GBGR LN Issued capital (m) 2,211.30 Market capitalisation (£m) 61.9 3 month average daily volume 2,048,400 Cash (US$m) 18.5 Net cash (US$m) 8.8 Enterprise value (£m) 90.6 Nomad / Broker Strand Hanson / Peat & Co Top shareholders African Resources 65.1% Blackwill Trade 5.3% Morstan Nominees 5.2% State Street Nominees 3.5% BBHISL Nominees 2.3% The Bank of New York Nominees 1.4% Barclayshare Nominees 1.3%
Appendix: A strong and experienced team
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Kanat Assaubayev, Chairman Kanat Assaubayev is one of Kazakhstan's leading entrepreneurs with a wealth of experience in natural resources. The first Kazakh to get a doctorate in metallurgy, his early career was in academia where he rose to Chairman of the Metallurgy and Mining Department of the Kazakh National Polytechnic University. He began his business career in the 1990s and has led a number of natural resources enterprises to national and international success. Aidar Assaubayev, CEO Aidar Assaubayev is an Executive Director of AltynGroup Kazakhstan. He was formerly Executive Vice Chairman of KazakhGold and formerly Vice President and a Board member of JSC MMC Kazakhaltyn, the gold exploration and development group. He has completed over $1billion in IPO and M&A transactions in recent years. He was educated at the Kazakh National Technical University, Almaty, and holds a degree in economics from the Institute of Systemic Analysis in Moscow. Ken Crichton, Executive Director Ken Crichton is a mining engineer with over 27 years’ experience. He is currently the Chief Executive Officer of ASCOM Precious Metals Mining. Previously, he worked for 15 years with BHP Billiton in both Australia and Indonesia, including as the President Director of PT Billiton
- Indonesia. He is also a non-executive director of Kemin Resources.
Appendix: A strong and experienced team contd.
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Rajinder Basra, CFO and company secretary Rajinder Basra qualified as a chartered accountant with BDO LLP in1990, leaving in 2002 to co-found a chartered accountancy practice. He has extensive experience advising companies within the natural resources sector, and has worked with a number of mining and exploration companies based in Kazakhstan. He has more recently been assisting and advising mining and oil companies preparing for IPO’s and other corporate transactions. Ashar Qureshi, Non-Executive Director Ashar Qureshi is a U.S. qualified lawyer who was previously a partner with international law firm Cleary Gottlieb Steen & Hamilton LLP. He is currently Executive Vice Chairman of Luminaire Films, a director of Hanson Asset Management and a partner of Naya Capital Management He was educated at Harvard Law School and Harvard College and holds a Juris Doctor. William Trew, Non-Executive Director William Trew has over 32 years' experience in the mining industry and has served as a director of a number of mining companies.He holds a B.Eng. (Mech.) Hon. from the University of Wales Institute Science and Technology, and an M.Eng. from Rand Afrikaans University, Johannesburg. Alain Balian, Non-Executive Director Alain Balian was a Deputy Governor of the Central Bank of Lebanon from 2003 - 2008. His earlier experience includes working at Kleinwort Wasserstein, ABN AMRO Corporate Finance, and Lebanon Invest in mergers and acquisitions, corporate finance, and private equity.