Q4 2018 THE BEL AIR BAUXITE MINE: FROM GRASSROOTS TO PRODUCTION - - PowerPoint PPT Presentation

Q4 2018 THE BEL AIR BAUXITE MINE: FROM GRASSROOTS TO PRODUCTION

COMPANY OVERVIEW

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ALUFER IS ONE OF THE MOST ATTRACTIVE BAUXITE MINING COMPANIES GLOBALLY

Commenced production at flagship Bel Air Project

• First Ore on Ship – On Time, On Budget, LTI Free

Rare development story:

• Alufer discovered the deposit through maiden

drilling in 2011

• Completed detailed feasibility studies and extensive

social and environmental work

• Secured financing in 2016
• Commenced construction in 2017
• Commenced production in Q3 2018

Upside potential from Bel Air North and Labe licences Focused on delivering a long term, sustainable mining

• peration and creating value for all stakeholders

Phase 1: Construction – Complete Phase 2: Ramp up – over the next few months Phase 3: Steady State

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BEL AIR PROJECT - HIGHLIGHTS

Control of own logistics

• Have built a dedicated haul

road, export facility, port and berth

• Control full production chain

from pit to ship High value product

• Well suited to low temp

refinery

• Low reactive silica - notable

advantage

• Low deleterious elements

Responsible, sustainable bauxite production

• Using global best practice

mining methods

• Adopting IFC and Equator

Principles > 15 year Life of mine

• 146mt JORC resource

identified - Direct Shipping Ore

• Ramping up to steady state

rate of 5.5mtpa Developing a long lasting legacy

• Over 40 community projects

completed to date

• Will continue to contribute

through Local Development fund Location advantage

• 15km from the coast
• Easily accessible from

Conakry by road

• Simple operational set up

required

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KEY MANAGEMENT

Bernie Pryor Chief Executive Officer

• Metallurgical Engineer with 35 years of operational and project experience
• Extensive African experience in project acquisition, evaluation and development, construction and mine
• perations
• Was Head of Business Development with Anglo American Plc, also serving as CEO of Anglo Ferrous Brazil Inc

Rachel Rhodes Chief Financial Officer

• Chartered Accountant with 15 years experience in the mining sector
• Previously with Anglo American and CFO of London Mining
• Extensive background in raising project finance and taking mining operations through construction to

production

Lamine Toure Vice-Chairman, BAM

• Great deal of experience in government liaison and representation for a number of companies inGuinea
• Has worked across a variety of sectors – mining, textiles and urban project development
• Previously worked with Mobil, Global Alumina, Koumba IronOre

Kevin Mclean Project Director

• Geologist with 20 years across the industry – exploration, development and production
• Previously with Shangdong Iron and Steel, African Minerals and Fortescue Metals
• Expertise in optimising and delivering efficient mining operations

Tristan Clarke Commercial Director

• Broad commercial experience - over 12 years working in the resources and power sectors
• Previously with Shangdong Iron and Steel, African Minerals and Anglo American
• Specific experience in commodities marketing, complex negotiations, supply chain and corporate strategy

Denis Leblanc HR Director

• Over 30 years experience in HR management and strategy, organisational development and governance
• Previously with SRD Nordgold, CBG and Xstrata Nickel
• Strong focus on balancing team work with individual development and business objectives

Jason Peirce E & S Director

• Over 17 years experience working in sustainability within the mining and development sectors in Africa.
• Wide range of expertise in social and environmental assessments, community relations, stakeholder

engagement, Previously with INSUCO, Anglo Gold Ashanti and the Belgian Development Agency

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OTHER BOARD MEMBERS

Adonis Pouroulis Chairman

• Mining engineer with 25 years experience in the natural resources sector
• Expertise in discovery and development of projects across Africa including diamonds, precious/base metals and coal
• Founder and Chairman of LSE listed Petra Diamonds and AIM listed Chariot Oil & Gas and other private companies

Mason Hills Non-Exec Director

• Commercial lawyer specialising in corporate and finance law in the resources sector
• Advised RCF since 2001 and joined in an in-house capacity in2006.
• Also serves on the Board of First Bauxite Corp, First Drilling Group and Global Advanced Metals

Osam Iyahen Non-Exec Director

• Director at the AFC
• Responsible for the natural resources team and has led their rapidly expanding franchise across sub-Saharan

Africa

• Over 15 years experience in international finance and businessdevelopment.

Keith Johnson Non-Exec Director

• 25 years in the natural resourcessector
• Previously managed Rio Tinto’s global bauxite and alumina business and was head of Business Resources

responsible for the integration ofAlcan

• Prior to that he was BG Group as GM of strategy and portfoliodevelopment

David Brown Non-Exec Director

• Chartered Accountant with 20 years experience in the resourcessector
• Extensive Board experience, currently on the Board of Coal of Africa andVodacom
• Previously with Impala Platinum, Edcon andMobil

Mukuna Ilunga Non-Exec Director

• CharteredAccountant
• 16 years experience in the mining industry and currently CFO of Dangote Cement in the DRCMining and Sierra

Rutile

• Previously with Endeavour , Anglo Gold Ashanti and De Beers.

Dorian Barak Non-Exec Director

• Legal and investment background
• Private equity investor and asset manager focused on Africa, the Middle East and Europe
• Advises clients, companies and funds on investments in the natural resources, aviation and tech sectors

Andrew Ferguson Non-Exec Director

• 14 years experience in global financial markets with a focus on naturalresources
• CEO and Head of Investment at APAC Resources Limited
• Previously co-founded New City Investment Managers – a natural resources fund and worked for EMG Suisse S.A

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BAUXITE OVERVIEW

• Bauxite is the main commercial mineral from which aluminium oxide is extracted, which in turn is smelted

to form aluminium metal:

• The aluminium industry is no longer as integrated as it used to be - pricing power is shifting upstream to

alumina and bauxite producers

• However, aluminium demand drives alumina and bauxite growth - medium to long term demand is

still strong

• Iron ore and copper usage matured following rapid industrialisation in China and other emerging

markets - aluminium is still in its early stages

• Demand continues to grow in key sectors including transportation, construction, power, packaging

and consumer products

Bauxite mining Alumina refining Aluminium smelting Consumers and Fabrication 5t Bauxite Ore 2t Alumina 1t Aluminium

BAUXITE IS THE PRINCIPAL ORE OF ALUMINIUM

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PROJECT OVERVIEW - OPERATIONAL SUMMARY

Stage 2: Short Haul

• Material is then

transported via truck from the pits to the export facility at the coast

• Low opex, minimal re-

handling, high efficiency

• Alufer have control of

dedicated logistics facilities

SIMPLE LOGISTICS SET-UP: MINING - SHORT HAUL - CAUSEWAY CONVEYORS - TRANSHIPMENT

Stage 1: Mining

• DSO material is mined

from a minimum of 2 pits at a time

• Open cast, strip

mining with surface miners

• Minimises loss and

dilution

• Enables ongoing

rehabilitation during LOM Stage 4: Shipping

• Transhipment

handled via self- propelled barges and transhipment vessel (TSV)

• Ocean Going Vessels

loaded 32 km

• ffshore
• Optimal method for

bulk export

• Significant storage

capacity on TSV Stage 3: Export Facility

• Automated materials

handling set up

• Ore is stockpiled and

handled via conveyor

• ver a 1.2km rubble

causeway and loaded

• nto barges
• Provides access from

shore to suitable water depth for 10,000 DWT barges

THE PROCESS HAS BEEN OPTIMISED FOR CAPEX, OPEX AND THE OPERATING ENVIRONMENT

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SOCIAL AND ENVIRONMENTAL

• Ongoing management plans will be in place to ensure compliance with

IFC Performance Standards and meet Equator Principles

• Ongoing work includes:
• Baseline assessments
• Integrated terrestrial and marine, social and environmental impact

assessments

• Social and environmental management plans
• A Stakeholder Engagement plan
• A detailed Land Access and Resettlement framework and plan
• A Critical Habitat review, including Biodiversity action and

management plans

• The project was awarded the Environmental Certificate of Conformity

from the Government of Guinea in June 2013 which has since been renewed annually

• Throughout the project the team will work with the community to

develop local enterprise initiatives and promote local supply ALUFER IS COMMITTED TO PROMOTING & DELIVERING SUSTAINABLE DEVELOPMENT

STAKEHOLDER ENGAGEMENT IS A CORE FOCUS

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SUSTAINABLE INITIATIVES

Education:

• Building of schoolrooms and teacher accommodation

Water:

• Installation and repair of wells to ensure potable supply

Health

• Building of health posts and provision of equipment
• Raising awareness and education on malaria, HIV / AIDS, sanitation

Local Business

• Training, assistance and support of local enterprise (such as local car

wash facility) Livelihood

• Set up of food cropping projects to provide high value produce

(eggplant, cassava, chilli) for the community and site Rehabilitation

• Planting of seedlings and creation of nurseries for re-vegetation of

the mine and camp site Solar

• Generation of power for domestic and public lighting

40 COMMUNITY DEVELOPMENT PROGRAMMES COMPLETED TO DATE THAT WILL HAVE LONG TERM BENEFITS

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LIVELIHOOD

TO OFFSET IMPACTS OF ECONOMIC DISPLACEMENT WE HAVE DEVELOPED A RANGE OF LIVELIHOOD RESTORATION PROJECTS Food cropping projects to provide high value produce (eggplant, chilli) for the community and site

• Reinforces social networks, teaches new agricultural techniques and

provides extra income

• Cooperatives are being rolled out across further local villages

A salt culture livelihood restoration project – new methodology taught

• Less firewood required; is healthier, safer, reduces deforestation and

produces better quality salt

• Alufer has also repaired a berm in the mangrove area and constructed a

storage room Other livelihood restoration projects are in development, including agricultural projects and the creation of ‘multi-function platforms’

• Use of centralised equipment for processing crops, peanuts for example,

for which users pay a small fee

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MINING OPERATIONS

CAUSEWAY, BERTH AND EXPORT FACILITY

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LOADING THE BARGES AND TRANSHIPPING

APPENDICES

STRONG STAKEHOLDER SUPPORT

• Alufer’s Mining Convention signed on 1 February 2016:
• The first under the new 2013 Guinean Mining Code
• The first signed by the new Mines Minister
• Fiscal concessions received to encourage investment and protect

sustainability of operation

• Ratification by Parliament of the Mining Convention was completed
• n the 1 June 2016
• Through the Mining Convention, a tax regime has been developed

to promote investment in Guinea and to deliver a fair revenue balance for all stakeholders

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• Alufer has a good working relationship with the Guinean Government
• Bel Air was declared a Project of National Interest” (PIN) in December

2014

STRONG RELATIONSHIP WITH GOVERNMENT MINING CONVENTION

CONSTRUCTION FINANCING AND COMMENCEMENT

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• In December 2016, Alufer successfully secured a $205m financing

package from a consortium of international investors

• US$80m Senior Debt Facility
• Orion Mine Finance
• US$125m of Convertible Loan Notes and Equity
• Resource Capital Funds
• The Africa Finance Corporation
• Orion Mine Finance
• Six Year Offtake Agreement with Orion Mine Finance
• Working with Alufer to market the bauxite product
• Construction commenced in January 2017 and the project was
• fficially opened by President Alpha Conde on the 3rd February 2017.

LABE - SIGNIFICANT GROWTH POTENTIAL

• The Labé Project (100% Alufer) is situated in the Guinea highlands, approximately 350km north-east of Conakry
• Longer term prospect due to infrastructure requirements
• Engineering concept study completed
• Total JORC compliant resource of 2.5Bt at 43% Al2O3
• High grade resource - 583Mt @ 50% Al2O3, 3% SiO2
• Previously completed 11,130m auger drill programme on 600m and 300m grids, and 252m core drill programme

(only 25% of mineralised plateaus)

• Over 13,000 samples analysed by XRF and c. 20% through bomb digest process

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DISCLAIMER

• This document has been issued by Alufer Mining Limited, a company registered in Guernsey (the “Company”) and has been

issued expressly to the recipient.

• This document and any further materials supplied with it, or subsequently in connection with it and the accompanying live

presentation and discussion (the “Information”) are for informational purposes only and do not constitute or form part of any

• ffer or invitation to sell or issue, or any solicitation of any offer to purchase and/or subscribe for any securities and/or any

investment in the Company and should not be relied on in connection with any contract or investment decision relating thereto.

• The recipient of the Information should not place any reliance on the information or opinions contained in this document or
• n their completeness (and in particular any forward looking statements which are inherently risky by their nature). Neither

the Company or any of its directors, employees or agents gives any express or implied warranty or representation as to the accuracy or completeness of the information or opinions contained in the Materials and no liability whatsoever (except in relation to fraud) is accepted by the Company, its directors, employees or agents for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.