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Inves estor or Presenta ntati tion on Marc rch 2013 - Iron n Ore and Manganes anese e Develop elopmen ent t in Afric ica Iron n ore and mang ngane nese e develop opment nt in Afric ica Disclaimer IMPO PORTANT INFORMATION


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Inves estor

  • r Presenta

ntati tion

  • n – Marc

rch 2013 - Iron n Ore and Manganes anese e Develop elopmen ent t in Afric ica

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Disclaimer

IMPO PORTANT INFORMATION These presentation slides and the accompanying verbal presentation (“Presen entation

  • n Materials”) are being provided in connection with a marketing presentation by Ferrex Plc (the “Company

ny”) and have been prepared by the Company. These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company (“Com Company ny Sec ecur urities es”) nor shall they or any part of them form the basis of or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment with respect to Company Securities. These Presentation Materials do not constitute a recommendation regarding any decision to sell or purchase Company Securities. FinnCap Limited (" ("Finn nnCa Cap") ") is acting in the provision of corporate finance business to the Company,within the meaning of the Financial Services Authority's Conduct of Business Sourcebook ("COBS"), and no-one el se in connection with the proposals contained in this Presentation. Accordingly, recipients should note that FinnCap is neither advising nor treating as a client any other person and will not be responsible to anyone other than the Company for providing the protections afforded to clients of FinnCap under the COBS nor for providing advice in relation to the proposals contained in this Presentation. These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither the Company, its subsiduaies (together the Company or the “Group”) nor any of the Group’s directors, employees, agents or advisers makes any representation or warranty in respect of the accuracy or completeness of the contents of the Presentation Materials or otherwise in relation to the Group or its businesses, and responsibility and liability therefore (whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise) is expressly disclaimed, provided that nothing herein is intended to limit the liability of any such person for fraud. No duty of care or advisory obligation is owed by the Group or any of its directors, employees, agents or advisers to any recipient of the Presentation Materials. No reliance may be placed for any purpose whatsoever on the information contained in these Presentation Materials or the completeness or accuracy of such information. In particular, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained herein, which have not been independently verified and may be in draft form. The figures and projections included in these Presentation Materials are based on internal assumptions made by the directors and employees of the Group and have not been reviewed or verified as to their accuracy by any third party. The information contained in these Presentation Materials is provided as at the date of this presentation and is subject to updating, completion, revision, verification and further amendment without notice. However, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update these Presentation Materials or to correct any inaccuracies in, or omissions from these Presentation Materials which may become apparent. The content of these Presentation Materials has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on the Presentation Materials 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. Any person who is in any doubt about the subject matter to which this presentation relates should consult a person duly authorised for the purposes of FSMA who specialises in the acquisition of shares and other securities. These Presentation Materials do not constitute an offer of transferable securities to the public for the purposes of section 85 FSMA. These Presentation Materials are exempt from the general restriction set out in section 21 FSMA on the communication

  • f financial promotions on the grounds that they are directed only at: (i) persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have

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  • ns”). Persons of any other description, including those that do not have

professional experience in matters relating to investment, should not rely or act upon the Presentation Materials. Any investment, investment activity or controlled activity to which the Presentation Materials may ultimately relate is available only to Relevant Persons and will be engaged in only with such Relevant Persons. These Presentation Materials do not constitute an offer of securities for sale in the United States, Canada, Australia, Japan or the Republic of South Africa or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement, nor must they be distributed to persons with addresses in the United States, Canada, Australia, Japan or the Republic of South Africa, or to any national or resident of the United States, Canada, Australia, Japan or the Republic of South Africa, or to any corporation, partnership, or other entity created or authorised under the laws thereof. Any such distribution could result in a violation of American, Canadian, Australian, Japanese or South African law. It is the responsibility of each recipient outside the United Kingdom to ensure compliance with the laws of and regulations of any relevant jurisdiction. The Company Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Sec ecur urities es Act"), or the securities laws of any state or other jurisdiction of the United States and may not be offered and sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will be no public offering of Company Securities in the United States. These Presentation Materials contain forward-looking statements, including in relation to the Company and the Company’s proposed strategy, plans and objectives. Such statements are generally identifiable by the terminology used, such as “may”, “will”, “could”, “should”, “would”, “anticipate'', “believe'', “intend”, “expect”, “plan”, “estimate”, “budget'', “outlook'' or other similar wording. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability to complete the Proposed Transaction; imprecision

  • f reserve and resource estimates, ultimate recovery of reserves, resource prices, general economic, market and business conditions; industry capacity; competitive action by other companies; production and marketing margins; the ability to produce and

transport resources to markets; the ability to market and sell resources; the effects of weather and climate conditions; fluctuations in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including approvals and increases in taxes; contingent liabilities; changes in environmental and other regulations; risks attendant with mining operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of the Company. Furthermore, the forward-looking information contained in the Presentation Materials is made as of the date of the Presentation Materials and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements. The forward-looking information contained in these Presentation Materials is expressly qualified by this cautionary statement. The Presentation Materials are confidential and being supplied to you solely for your own information and may not be reproduced, further distributed, or the contents otherwise divulged, directly or indirectly, to any other person or published, in whole or in part, for any purpose whatsoever.

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Corporate Overview

PROFILE

AIM quoted iron ore (‘Fe’) and manganese (‘Mn Mn’’) development compan any focussed sed in Africa ica

PROJECTS

Iron

  • n Ore: Mebaga, Gabon & Malelane, South Africa

Manganes anese: Nayega, Togo & Leinster, South Africa

STRATEGY

To advance ance low w capex deposits

  • sits whic

ich h offer er signif ifican icant t va value lue uplif ift t pot

  • ten

ential tial throug

  • ugh

h resou source e delinea ineation, tion, into

  • productio
  • duction

VALUE

Milest lestone

  • ne driv

iven en develo elopmen ment t programm ammes es targeting ting near ar term m productio

  • duction and cash

shflo flow Revi viewing ing syner ergistic istic acquisiti isition

  • n oppor
  • rtu

tuniti ities es

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Proven Track Record in Africa

Feasibi asibility lity Studie ies s Comple leted ed and Mines es Developed loped

  • Eureka

a Gold d Mine, Zimbabwe – 1.8mtpa (Delta Gold)

  • Ngezi Platinu

inum Mine, Zimbabwe – 2.2mtpa (Zimplats)

  • Leeuw

uwkop

  • p Platinu

inum Mine, South Africa – commenced development before takeover (Afplats)

  • Stellit

lite Chrome e Mine – South Africa - 480,000 tpa (Chromex)

Compan any Trad ade e Sale les

  • Zimpla

lats ts (ASX) SX) – c.US$400m (D Reeves, R Pitchford)

  • Afplat

lats (AIM) IM) – c.US$600m (D Reeves, R Lamming, B Moritz, R Pitchford,)

  • Chromex (AIM)

M) – c.US$50m (R Lamming, B Moritz)

  • MD - Dave Reeves ● Chairman - Brian Moritz ● Finance Director James Carter
  • Non Exec Director - Russell Lamming ● Non Exec Director - Roy Pitchford ●

“The Board has a proven record of building value for shareholders through developing assets into production and successfully completing trade sales”

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Market & Demand

  • Iron ore and manganese are the two main

ingredients in steel making

  • BHP Billiton, Rio Tinto and Vale currently

control 75% of the seaborne iron ore trade

  • Long term iron ore demand and price is

supported by:

  • Demand growth driven from China
  • Rising capital intensity
  • Replacement of higher cost Chinese

production

  • Manganese price currently

US$5.40/dmtu (46% Mn CIF China)*

  • Iron Ore spot price currently US$145/t

(62% Fe CIF China)**

* Source Ferroalloy.net ** Source Thomson Reuters

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Corporate Structure

*Subject to completion of purchase of 17% *

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Mebaga DSO Iron Ore Project - Gabon

Initial mapping results return up to 68% Fe Land Posit ition

  • n

309 309 sq sq km km

82 per cent. Holding*

High Grade e Zone

1. 1.8km m stri trike

Identified by historical work by BRGM

DSO Grade e

20Mt @ 60% Fe

‘Exploration Target’ Proximity imity to Infr frastr astructure ucture

30km to seale led d highw hway 100km m north th of wo working rking rail Rail l deliv iver ers s to deep wa water er port

*Subject to completion of purchase of 17%

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Mebaga Iron Ore – Exploration Programme

  • Previous deep pitting results by BRGM

include:

  • 27m @ 58.4% Fe*
  • 18.5m @ 57.5% Fe*
  • 10.5m @ 61.4% Fe*
  • *Mineralisation was still open at the base of

all these pits

  • Reconnaissance and detailed geological

mapping of the BIF trend has been completed: portable XRF results up to 68% Fe recorded

  • Geophysical

data has been bought and is processed

  • Drilling

programme planned to delineate JORC resources in H2 2013

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Scoping Study and Infrastructure

  • Gabon has excellent infrastructure
  • Sealed Highway 30km from site
  • New 90kV power line located 30km from

site to be fed by new hydro scheme currently under construction

  • Trans Gabon rail, built for 10mtpa, currently

moving 3.5mtpa, located 100km due south, would require 60km of road to access

  • Port of Owendo, currently shipping 3.5mtpa
  • f manganese
  • Scoping Study to investigate best access to

infrastructure and most effective size of

  • peration
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Mebaga Iron Ore Peer Comparison

Compan pany Exch change nge Loca cation ion Comments ents Resou

  • urce

ce/ Exploration Target Market ket Cap (GBP)* )* EV/t Contained ined Fe (GBP) BC Iron ASX Australia In Production @ 4 mtpa 81mt @ 54% 320 million 7.32 African rican iron Republic of Congo Takeover 2012, PFS 55mt @ 55% 220 million 7.71 Western ern Desert ert Resourc urces es ASX Australia (NT) Planning 3mtpa, late 2013 32mt @57% 160 million 8.78 Territ ritory

  • ry Iron

Australia (NT) Takeover 2011, 2mtpa 9mt @ 58% 119 million 22.05 Mebag aga AIM Gabon Commencing Resource Work 20mt @ 60% 12million 1.00** * As of 13 March 2013 ** Assuming the exploration target is converted to a resource

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Nayega Manganese Project - Togo

Land Posit ition

  • n

92,390 ha

5 exploration licences in northern Togo

Indica icated ed Resour urce ce

7.3Mt t @ 14.7% Mn Mn

Low Opex

US$2/dmtu FOB

Initial estimate for 250,000 tpa production

Low Cape pex

US$15m 5m

Initial estimate for 250,000 tpa production

Bankab able e Study

H1 2013

Devel elopme

  • pment

nt

H2 2013

Towards Production

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Nayega Manganese Project - Togo

Fast-tracki cking to Develop lopment ment

  • Focussed on developing an open pit, zero

strip mining operation

  • Simple beneficiation route using washing,

screening and gravity

  • Good road access to Lome Port (600km

away and undergoing USD50m expansion for third container port). Backloading of 350,000 tpa available (US AID)

  • Undertaking a Definitive Feasibility Study

with a view to completing in H1 2013

  • Exploitation permit application submitted
  • Regional

evaluation has delineated additional targets for Mn mineralisation to increase resource

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Malelane Iron Ore Project – South Africa

CAP APEX EX US$1 $139m 39m

&

OPEX EX US$53. $53.5/t 5/t FOB

Explorat ation ion Target

775 - 930Mt

34 – 36% Fe

Inferr erred ed Resour

  • urce

ce

139Mt @ 37% Fe

Modelled on 1.1km of 14km

NPV US$523m 523m (10%) IRR of 72% %

(pre e tax)

Proxim imity ty to Infr frastructure astructure

6km and 170km

From rail and deep water port of Maputo respectively

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Malelane Iron Ore Project - Geology

Malel lelane ne Inf nfer erred ed Resou

  • urce

ce at various ious cut-of

  • ffs

Cut- Off (%) Tonnes (m) Fe % CaFe % Al2O3 % SiO2 % P % S % LOI 1000 50 4.9 52.2 56.7 1.4 10.8 0.08 0.018 8.0 40 50.9 44.3 47.7 2.0 22.3 0.07 0.020 7.3 20 138.9 36.9 40.1 4.0 30.1 0.06 0.029 8.0

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Malelane Scoping Study Results & Development

  • 1.8mtpa output of iron ore fines, LOM16.6 years
  • Conventional open pit mining, strip ratio 1.55:1
  • Process plant crush and HPGR to 6mm, gravity separation
  • Concentrate conveyed to rail siding 6km away
  • Build a rapid load out station for rail loading at existing siding
  • Rail to Port of Maputo approx 170km. Requires port expansion

to 20mtpa to free up capacity in the existing loading area.

Pre-Feasibility Study

Physicals Scoping Study Economics

  • NPV @10% - 523USD m (pre-tax)
  • IRR 72% (pre-tax)
  • Capital Cost USD139m
  • Capital Intensity USD77/t
  • Operating Cost USD53.5/t FOB
  • Revenue USD 95/t FOB
  • Payback 1.9 years
  • Starter DSO operation

Project Upside

  • Drill

programme and preliminary metallurgical testwork confirmed potential for low capex iron-ore development at Malelane

  • Further detailed geological mapping of the Spago

ridge by structural geological consultant completed to aid drill targeting to update the resource

  • Environmental Studies and Social and Labour Plan

drafting has commenced in preparation for a mining licence application

  • Positive preliminary metallurgical testwork - very

coarse grind size is optimal for pre-concentration to 57% Fe

  • Pre-feasibility drilling to commence at end of wet

season for upgraded resource and confirmatory met testwork

  • Pre-feasibility study to be complete 2013
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Malelane Capital Intensity

*Source Macquarie March 2012

$0 $50 $100 $150 $200 $250 $300

  • Mt. Gibson Extension Hill

Macarthur Minerals Ularring Atlas Iron North Pilbara African Minerals Tonkolili Phase I Malelane Cliffs Bloom Lake phaseII Atlas Iron McPhee Ck/SE Pilbara Fortescue Pilbara expansion London Mining Marampa IOC Carol Lake Northern Iron Sydvarangar Expansion ArcelorMittal Liberia project phase I&II Sundance Mbalam Alderon Kami Champion Fire Lake North Rio Tinto Simandou Northland Resources Kaunisvaara Rio Tinto Pilbara expansion BHP Billiton Inner harbour expansion Northland Resources Hannukainen New Millenium KeMag and LabMag Oceanic Hopes Advance ArcelorMittal Mont Wright Black Iron Shymanivske Aquila West Pilbara Macarthur Minerals Lake Giles BHP Billiton Outer harbour expansion Gindalbie Karara Grange Resources Southdown Adriana Lac Otelnuk

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Additional Projects

  • One further Gabon DSO iron application,

similar size to Mebaga and well positioned to shipping. Previously explored.

  • Two South African potential DSO iron

projects located near to existing Malelane Project

Leinster Manganese – South Africa Applications

Aeromag survey completed – drilling planned Known deposit open in all directions & historical data secured Anglo American drilled 51 holes (1977-1988) 20km from Aquila's Avontuur Project (147.8Mt @ 38.2% Mn) Land position of 47,004 ha over 10 farms Exploration target 5.5 -8.7Mt @28.6 – 31.3% Mn (Coffey Mining)

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Portfolio - Key Milestones

  • Nayeg

ega Manganes anese e Proj

  • jec

ect t – Togo

  • go

 Resource defined 7.3Mt at 14.7%  Positive economics calculated – low capex and

  • pex

 Met test work undertaken

  • Malela

lelane Iron

  • n ore

e Proj

  • jec

ect t – South th Africa ica

 Resource defined – 139Mt at 36.9%  Scoping study completed with excellent economics  Further resource programmes underway

  • Sec

ecured ed new w DSO O proje ject - Gabon bon

 Secured project with an exploration target of 20Mt at 60%  Proximity to infrastructure with access to regional ports

  • Nayeg

ega Manganes anese e Proj

  • jec

ect t – Togo

  • go
  • Secure exploitation permit
  • Complete Definitive Feasibility study H1 2013
  • Fast-track to mine development H2 2013
  • Malela

lelane Iron

  • n ore

e Proj

  • jec

ect t – South th Africa ica

  • Increase and upgrade resource
  • Complete environmental study
  • Pre-feasibility H2 2013
  • Meba

baga DSO proj

  • jec

ect t – Gabon bon

  • Define a maiden DSO resource
  • Fast track to Scoping Study status by Q4 2013
  • Co

Conti tinued ed evaluation aluation

  • f
  • f

synergis synergistic tic

  • ppor
  • rtunities

ities in in Afri rica

  • Complement

low-capex/ near to infrastructure/early production investment criteria

Completed Milestones 2012 2013 Value Drivers

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Development Summary

Nayega Togo

Early cashflow to fund and develop iron ore portfolio in Africa

Mebaga Gabon

Proximity to infrastructure potentially enabling rapid development to exploit DSO resource potential

Malelane South Africa

Strong economics - robust NPV, IRR and low capital intensity (first quartile of iron ore projects globally)

Establishing its position as a leading low-capex iron ore and manganese exploration and development company with near-term production potential in Africa

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Contacts

Dave Reeves Ferrex PLC Email: dave@ferrexplc.com Felicity Edwards/ Elisabeth Cowell St Brides Email: felicity@sbmf.co.uk elisabeth@sbmf.co.uk T: +44 (0)207 236 1177 Elizabeth Johnson/ Joanna Weaving FinnCap Limited T: +44 (0)20 7220 0500

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Appendix

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Key Data

MARKET AIM TICKE KER FRX SHARE PRICE CE 1.675p (15 15.03 03.13 13) MARKET CAP £12.69m (15.03.13)

0.00% 47.02% 21.49% 10.78% 20.71%

Shareholders >15% Shareholders 10%<>15% Shareholders 5%<>10% Shareholders 2.5%<>5% Shareholders 0%<>2.5%

Shareholder eholder Analy alysis is

12 12 MONTH HIGH/LOW 1.68 68 / 1.6p SHARES IN IN ISSUE 765 765,179 179,963 963 * NOMAD finnCap nnCap BROKER finnCap nnCap

Share e Price Directors’ Shareholdings

* 40m shares conditional on the sale of 17% in Ressources Equatoriales

Dave Reeves 14.70% Roy Pitchford 10.32% Russell Lamming 5.60% Brian Moritz 1.91% James Carter 0.36% Total 32.90%

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Board

Brian an Moritz Non-Execut utive ive Chairma rman Brian is a Chartered Accountant and former Senior Partner of Grant Thornton, London. He formed Grant Thornton’s Capital Markets Team which floated over 100 companies on AIM under his chairmanship. In 1995 he retired from Grant Thornton to concentrate on bringing new companies to the market as a director. He concentrates on mining companies, primarily in Africa, and was formerly chairman of African Platinum PLC (Afplats) and Metal Bulletin PLC as well as currently being chairman of several junior mining companies. Dave Reeves Managin ing Director Dave holds a first class honours degree in mining engineering from the University of New South Wales, a graduate diploma in applied finance and investment from the Securities Institute of Australia, and a Western Australian first class mine managers certificate of competency. He has spent the last 14 years operating in Africa including Zimbabwe Platinum Mines Ltd (Zimplats) and Afplats. He is a non-executive director of ASX company Minbos Resources. James es Carter er Finance Director James is a CPA with 17 years experience in the mining industry. James was most recently CFO of Straits Resources, a diversified metals group listed on the ASX. Prior to this James was CFO and Company Secretary of SGX listed Straits Asia Resources and was integral to its development as a 10 million tonne per annum coal producer in Indonesia. His work at Straits included debt and equity capital markets, tax strategy, M&A and corporate governance. James was involved with equity and debt capital markets raisings of $2 billion in the last 5

  • years. James is a board member of Worldwide Energy, an aspiring Indonesian coal company and PTT Asia Pacific

Mining. Roy Pitchf hford Non-Execut utive ive Director Roy, a Charted Accountant, has more than 25 years senior management and executive experience. Previously CEO of Cluff Resources Zimbabwe Ltd, Delta Gold Zimbabwe (Pvt) Ltd, Zimplats, Afplats and African Minerals Ltd. Roy currently sits on numerous public and private mining companies’ boards. Russel ell l Lammin ing Non-Execut utive ive Director Russell Lamming is a qualified geologist with an honours degree in geology from the University of the Witwatersrand and a Bachelor of Commerce in Economics from the University of Natal. Russell has a broad range

  • f experience including directorship of a South African mining consultancy and precious metals analyst for a

leading international broker. Russell led the commercial process at Afplats and was most recently CEO of AIM listed Chromex Mining, which was bought in 2010 at a significant premium to its listing price. He is currently MD

  • f GoldPlat.
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Management Team

Mark Styles les Explora loration ion Mana nager er Mark is a geologist with a first class honours degree obtained from the University of Western Australia and 20 years experience in exploration and project management worldwide. His experience covers a range of precious metals, base metals and industrial minerals in Australia, Saudi Arabia, Tanzania, South Africa, Canada and Mexico, where he was country manager for ASX-listed explorer Azure Minerals Limited. In 2008, Mark established a geological consulting company specialising in property evaluation, target identification and exploration management with Cliffs Asia Pacific Iron Ore as a major client. Justin in Longle ley Genera General Manager er, Wes est Africa Justin holds a an honours degree in geology from University College London, and an MBA from Imperial College London. For over 20 years he has worked throughout Africa to identify and develop mineral resources, bring mines into production, and generally realise commercial

  • pportunities. Justin has served as senior management for Diamondworks in Angola, Oryx

Natural Resources in the DRC, and Mukuba Resources in Zambia. He has also led the turnaround of poorly performing businesses on behalf of Barclays Bank in Kenya. Gus Simban baneg egavi Genera eneral Manager er, Sou

  • uth

th Africa Gus is a mining engineer who has worked his whole career in Southern Africa. He has developed gold mines in Zimbabwe and was a Mine Manager for Zimplats at their platinum

  • peration in Zimbabwe. Most recently Gus was General Manager Operations for Aquarius

Platinum and has a wealth of open pit and underground experience.