Regent Pacific Presentation COMPANY OVERVIEW Dece Decembe mber 2 r 200 009
Company Overview
Company Snapshot Market Statistics About Regent Pacific Group • Share price (21 Dec 2009) HK$0.206 / US$0.027 Incorporated in the Cayman Islands in 1991 and listed in Hong Kong in 1997, Regent Pacific Group 52 week high - low HK$0.33 - HK$0.10 Limited (ticker: 575, “Regent Pacific”) is a Shares outstanding 3,949m diversified mining group focused on the Asia Market capitalisation US$105m Pacific region Cash and cash equivalent 1 US$67m • Regent Pacific's principal assets are located in Debt (30 Jun 2009) None Yunnan Province, Inner Mongolia and Xinjiang Enterprise value 2 US$40m Province, China Note: Exchange rate is US$1 = HK$7.76 • Major assets: Base metals: Dapingzhang Mine (40%), – Yinzishan Mine (97.5%) Year-to-Date Share Price Performance Thermal coal: Ji Ri Ga Lang Project (51%), Zhun – Dong Project (100%) 3 and ACIL – Project I (25%) 0.35 400 350 0.30 Other investments: equity stakes in Kalahari – 300 0.25 Minerals, BC Iron, Bannerman Resources, Polo Share Price (HK$) Volume (million) 250 0.20 Resources and Red Dragon Resources 200 0.15 150 0.10 100 0.05 50 Source: FactSet - - 1 Cash includes a US$3.5m non-refundable deposit paid by the purchaser of the Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Zhun Dong Coal project 2 Includes minority interests of US$2m Volume [RHS] Regent Pacific Hang Seng Composite (Rebased) 3 Zhun Dong is contracted to be sold, which is expected to complete by end of May 2010 3
Our Asset Portfolio Asset Locations Equity Market Investments Ji Ri Ga Lang Zhun Dong Company 2 Commodity % interest Project Project 1 Coal resource – Coal resource – 92.2Mt (JORC) Kalahari Uranium/base 2.9Bt (est.) 3.34% Minerals metals explorer Iron ore BC Iron 15.70% explorer ACIL – Project I Bannerman Uranium 1.05Mtpa 3.91% Dapingzhang coking-chemical Resources developer Mine + 110Ktpa Resources of methanol 374Kt Cu + 260Kt Polo Uranium / coal Zn + Au-Ag-Pb 4.35% Resources investments Red Dragon Uranium 5.74% Resources explorer Producing Exploration/Development 1. An agreement has been entered into for the sale of Zhun Dong, which is expected to complete by end of May 2010 2. Company websites: Kalahari Minerals: www.kalahari-minerals.com BC Iron: www.bciron.com.au Bannerman Resources: www.bannermanresources.com Polo Resources: www.poloresources.com Red Dragon Resources: www.reddragonresources.com 4
History and Milestones Since e 2005 Regent t Pacific has shifted ted its focus to metals and mining investm tment ents 1997 1997 2005 2005 2007 2007 Apr 2008 May 2009 Jun 2009 Listed on the Acquired 40% of Acquired CCEC for Announced Subscribed for Acquired 7.3m SEHK under the Dapingzhang c.US$160m. CCEC 92.2Mt JORC 4m shares shares in BC Iron ticker 575, copper / zinc held the ACIL Coal resource at Ji Ri Kalahari for A$1.10/sh focused on its mine through a Project, the Ji Ri Ga Ga Lang Resources for and now hold asset JV with two Lang Coal Project c.US$1.50/sh 13.1m shares management Chinese parties and several business for US$20m acquisition options 2000 ……. ……. 2005 2005 2006 2006 2007 2007 2008 2008 1991 1991 1997 1997 2000 2009 2009 1991 1991 2000 2000 2006 2006 May 2009 Nov 2009 Incorporated Subscribed for Received deposit Technology focused; Acquired in the business areas 10m shares in of US$3.5m in exploration Cayman include: Bannerman relation to Zhun rights in Islands Resources for Dong disposal; Asset management Yunnan‟s A$1.00/sh total Technology Yinzishan area investments consideration and increased to Corporate finance introduction of and online financial US$67.4m from Stephen Dattels services US$35m Regional al Asset management t Base metal Base metal and Incorporat orporation ion divers rsif ifie ied d mining g focus focused coal l focused group 5
Regent – The Way Forward
Our Vision • Transforming our group to become Hong Kong’s next major mid tier mining house • Acquiring, exploring and developing strategic mining assets covering targeted commodities Our Vision • Leveraging off our expert international and local teams to conquer difficult markets, deliver results and achieve global recognition • As a Hong Kong listed mining company, to serve as a platform for growth and a cultivator of high quality, accretive mining assets across Asia-Pacific 7
What We Are Doing Buildin lding g a HK based mid tier mining g house • Taking advantage of SEHK„s strong liquidity and demand for resources equities • Regent Pacific has assembled an expert in-house team dedicated to identifying strategic mining assets across Asia-Pacific Growth by M&A Grow • Seeking bulk commodity, base metal, gold and uranium assets in the Asia Pacific region Adopt ptin ing g a diversif ified ied resources model • Pursuing acquisitions accretive to shareholders • Building an Asia Pacific diversified resources • Three strategic regional offices charged with identifying portfolio comprising of bulk commodities, base projects/assets with short to long term value-add metals, gold and uranium potential • Identifying and addressing specific shortages of • Regent Pacific has the highly credentialled in-house resources in targetted commodities M&A and execution team to deliver results Expan andin ding g production ion at Dapingz gzhan ang Optimis isin ing g existing g coal l propertie ties • Continue to support separate commercial • Supporting growth opportunities in respect of copper & zinc concentrate production (since our ACIL investment May 2008) • • Planning for 3Mtpa thermal coal production at Ji Supporting growth in production capacity to Ri Ga Lang 4,400ktpa from the current 2,500ktpa by end of March 2010 8
Our Strategy Near-ter term Mid Mid-te term rm Long-te term rm Optimise existing asset portfolio Growth by accretive acquisitions Build Hong Kong‟s next major mining house Focus on expansion plan at Focus on select regional – – Dapingzhang mine acquisition opportunities of Develop a mid tier diversified – greenfield exploration sites or Obtain mining license and achieve resources company focused on – operating mines in bulk commercial production at Ji Ri Ga bulk commodities, base metals commodities, base metals and Lang and gold in the Asia Pacific region gold Monetise non-core liquid – Identify and acquire strategic investments – assets at differing stages of the value chain Generate a pipeline of accretive – projects that will deliver returns to shareholders over a sustained period * * Dapin ingz gzhan ang Proces essin ing g Plant HK based diversif ifie ied d mining g house 9
Why We Will Succeed Stron ong g credentiale tialed d Board d and management t with signif ific ican ant t mining g and corporate rate finan ance expertis ise 1 Co-Chairman, James Mellon: over 20 years investment and asset management experience and in Asia and abroad, including with GT Management plc and the Thornton Group Co-Chairman, Stephen Dattels: Former Executive VP Corporate Finance and Director of Barrick Gold Corporation CEO, Jamie Gibson: direct investment specialist (ex-Clifford Chance, KPMG and PwC) Regent Pacific has now assembled a world class team of M&A, technical and project managers dedicated to maximising value from existing assets and identifying new strategic opportunities Divers rsif ifie ied d commodit ity and geograph phic ical l coverag age 2 Dapingzhang Cu/Zn mine in Yunnan Province, PRC Quality thermal coal development asset in Inner Mongolia Province, PRC Equity interests in companies with base metal, uranium and iron ore assets in Australia, North America and Namibia Offices in Hong Kong, Beijing (PRC), Yunnan (PRC) and East Kalimantan (Indonesia) Pas Past success and track record 3 Significant prior experience through Dapingzhang operations Achieved commercial Cu/Zn concentrate production and completed concentrate delivery ahead of schedule – Ability to fund production capacity increase with internal cash flow – Track record in growing the Company‟s asset portfolio through strategic investments in companies with uranium, coal and bulk commodity exposures Manag agemen ment expert rtise, geogra raph phical cal coverag age and strong g track k record 10
Asset Overview
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