TSXV:FURA Investor Presentation January 2019 - - PowerPoint PPT Presentation
TSXV:FURA Investor Presentation January 2019 - - PowerPoint PPT Presentation
TSXV:FURA Investor Presentation January 2019 http://www.furagems.com/ 1 http://www.furagems.com/ TSXV:FURA Legal Disclaimer This presentation contains, or incorporates by reference, forward -looking information within the meaning of
2 http://www.furagems.com/ TSXV:FURA Legal Disclaimer
This presentation contains, or incorporates by reference, “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, but is not limited to, statements with respect to the future performance of Fura Gems Inc. (“Fura” or the “Company”), Fura’s mineral properties, the future price of emeralds, rubies and other gemstones, the estimation of mineral resources and mineral reserves, results of exploration activities and studies, the realization of mineral resource estimates, exploration activities, costs and timing of the development of new deposits, the acquisition of additional mineral resources, the results of future exploration and drilling, costs and timing of future exploration of the mineral projects, requirements for additional capital, management’s skill and knowledge with respect to the exploration and development of mining properties, government regulation of mining operations and exploration operations, timing and receipt of approvals and licences under mineral legislation, the Company’s local partners, and environmental risks and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fura to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks associated with the Company’s dependence on the mineral projects; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; risks associated with dependence on key members of management; conclusions of economic evaluations and studies; currency fluctuations; future prices of emeralds, rubies and other gemstones; uncertainty in the estimation of mineral resources, exploration and development risks; infrastructure risks; inflation risks; defects and adverse claims in the title to the projects; accidents, political instability, insurrection or war; labour and employment risks; changes in government regulations and policies, including laws governing development, production, taxes, royalty payments, labour standards and occupational health, safety, toxic substances, resource exploitation and other matters; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; insufficient insurance coverage; the risk that dividends may never be declared; and liquidity and financing risks related to the global economic crisis. Such forward-looking statements are based on a number of material factors and assumptions, including: that contracted parties provide goods and/or services on the agreed timeframes; that on-going contractual negotiations will be successful and progress and/or be completed in a timely manner; that no unusual geological or technical problems occur; that plant and equipment work as anticipated and that there is no material adverse change in the price of emeralds and rubies. Although Fura has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events
- r results to differ from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this presentation. There can be no assurance that forward-
looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance
- n forward-looking statements due to the inherent uncertainty therein.
Ricardo A. Valls, M.Sc., P.Geo., of Valls Geoconsultant, Toronto, Ontario, a Qualified Person as defined by National Instrument 43-101, has reviewed the scientific and technical information disclosed in this presentation.
3 http://www.furagems.com/ TSXV:FURA Presentation Outline ▪ Company Overview ▪ Fura’s Experienced Management Team ▪ Fura’s Products – Colombian Emeralds and Mozambique Rubies ▪ Gemstone Market Overview ▪ Fura’s Assets in Colombia and Mozambique ▪ Key Upcoming Milestones ▪ Capital Structure and Share Metrics
4 http://www.furagems.com/ TSXV:FURA Company Overview – Creating Value by Ethical Route to the Market
*: Targets subject to operational performance and financing requirements
Quick Facts
▪ Listing – TSX Venture Stock Exchange (FURA.V) ▪ Sector – High-margined Colour Gemstones ▪ Business – Mining of rough gemstones, Marketing across the value chain ▪ Capital Raised – C$35mn
Management Experience
▪ Developed world’s largest Emerald mine in Zambia (valuation: US$550mn) ▪ Developed world’s largest Ruby mine in Mozambique (valuation: US$1bn) ▪ Produced over 100mn carats emeralds and rubies ▪ Sold over US$650mn rough emeralds and rubies
Flagship Assets
▪ Emerald – Colombia, Coscuez SA mine ▪ Ruby – Mozambique (exploration, operating licenses, recent Mustang takeover) ▪ No greenfield exploration projects; focused on brownfield projects in order to achieve positive cash flows sooner ▪ Not vertically integrated (Fura does not cut and polish gemstones; focused on mining and marketing)
Growth Targets and Key Milestones
▪ Market Share – 10% by year 5, 15% by year 10 ▪ Revenue Flow – *Q2 2019 (Colombia), Q3 2019 (Mozambique) ▪ Colombia – 43-101 code complaint Resource announced in December 18 ▪ Mozambique Technical Feasibility Study (Q2 2019)
5 http://www.furagems.com/ TSXV:FURA Management Team with over 75 years of Combined Experience in Color Gemstones Mining and Marketing
Dev Shetty – President and CEO
- Former COO and Board Member of Gemfields.
- Played a significant role in the turnaround of the loss-making
company and in developing Gemfields' mine and market strategy
- Responsible for initiating Gemfields entry into Ethiopia and Colombia
Ashim Roy – Vice President, Operations
- Former General Manager for Gemfields’ Montepuez ruby mine in
Mozambique
- Head of Geology and Exploration at the Kagem emerald mine in Zambia
- Developed the greenfield ruby project, Montepuez ruby mine, believed to
be one of the largest ruby deposits in the world.
Rupak Sen – Vice President, Marketing and Sales
- Former Acting Global Marketing & Polished Sales Director of
Gemfields and Marketing & Polished Sales Director for Asia
- Responsible for building brand via advertising, PR, research,
sponsorships, education & training
- Former work experience with De Beers and The Swatch group
Dibya Baral – Director, Technical Services
- Former General Manager, Gemfields’ Kagem emerald mine in Zambia,
the world’s largest supplier of emeralds.
- Solid previous experience in multi-commodity exploration,
development and mining with mining majors like Vedanta and Tata Steel
Rahul Gopal – Director, Security and Risk Control
- Former Head of Security for Gemfields Montepuez Ruby Mine in
Mozambique.
- 15 years of experience in security field includes security for
petrochemical plant in Nigeria.
- Former Indian Army Major
Ryan Ptolemy – Chief Financial Officer
- Experienced CFO for public and private mining sector companies listed on
the TSX and TSX venture exchange within the Forbes and Manhattan group.
Tarun Malkani – Director, India
- Chief Operating Officer for Rio Tinto's Bunder diamond project, India
- Formerly held senior management positions with Rio Tinto, Alcan,
Eastman Chemicals, Monsanto, Bayer and Exim Bank.
- Corporate securities lawyer and legal consultant to various Toronto
Stock Exchange and TSX Venture Exchange listed companies within the Forbes and Manhattan group.
Damian Lopez – Legal Counsel
6 http://www.furagems.com/ TSXV:FURA Colombian Emerald - A Legend!
1. Symbol of legacy and heritage – preferred by Royals, Celebrities…! 2. Resource-rich mining landscape 3. Mines with huge potential – in need of modernization 4. Accounts for 50% of world emerald supply by value 5. Buzzing marketplace – Bogota and New York 6. Global demand – USA 40%, followed by China and Europe
1 5 2 4 3
7 http://www.furagems.com/ TSXV:FURA Mozambique Ruby – 21st Century Discovery!
1. Discovered in 2009 2. Open-pit mines in Cabo Delgado Province 3. Accounts for of 80% of world ruby supply by volume! 4. Thailand – the Ruby Capital of the World 5. Global demand – China 50%, followed by USA and India
2 3 4 1
8 http://www.furagems.com/ TSXV:FURA Gemstone Market Overview and Fura’s Opportunity to Capture Market Share
* https://resourcegovernance.org/sites/default/files/documents/governing-the-gemstone_sector-lessons-from-global-experience.pdf
0.5 2.0 4.5 13.0 0.0 15.0
Global Rough Gemstone Sales ($23bn) 2015*
Other Coloured Gemstones Emerald, Ruby and Saphire Jade Diamond
10 20 30 40
De Beers ALROSA Sodium Dominion Rio Tinto Petra Informal Others
Rough Diamonds
Sale: % Value by Producer (source : De Beers ‘The Diamond Insight Report 2017) 23 45 68 90 113 Gemfie ield lds
- Govt. an
and Infor
- rmal
l Se Sector
Emerald, Ruby and Sapphire
Sector % By Company (source : Gemfields annual accounts for 2016 revenue
Fura’s Growth Targets ▪ Capture 10% of the current market by Year 5 ▪ Capture 15% of the enlarged market by Year 10
(Expected market size in Year 10: $5bn)
18.04 ct Rockefeller Colombian Emerald USD $305,000 pct 25.59 carat (ct) Sunrise Ruby USD $1,200,000 per carat (pct) 163.41 ct colorless Diamond USD $202,000 pct
Rough Gemstone Prices
9 http://www.furagems.com/ TSXV:FURA The Time is Right Now!
The National, August 29, 2018 The Dailymail January 2018, 75th Golden Globes Red Carpet
10 http://www.furagems.com/ TSXV:FURA Fura’s Colombian Assets – The Iconic Coscuez Emerald Mine
Location
- Boyaca region, Colombia
- 245km from capital city of Bogota
- Western corridor (on Muzo formation)
Brief History
- In existence since 1646
- Produced some of world famous emeralds
Guinness emerald with 1759 carats
- Mined and developed traditionally
- Lacking investment in geology, infrastructure
and had no long term plans Fura Acquisition
- Date of Acquisition
22 January 2018
- Ownership
76% Fura 24% Local partners (free carry, non- dilutive)
- Consideration
US$ 10MN (US$ 4.5MN paid, balance payable
- ver 2 yrs.)
- Estimated
development cost US$ 15Mn
11 http://www.furagems.com/ TSXV:FURA Fura’s Colombian Emerald Assets – Achievements in 12 months
A) Transaction Completion
▪ Transaction completed : January 2018 ▪ Investment to date : C$13.5 million ▪ Employees hired: 282 ▪ Completed Health and Safety Trainings for the employees
3D model of Muzo Formation showing all the major tunnels, bulk sampling location and Core drilling
B) Bulk Sampling Program
▪ Initiated on March 2018 ▪ Phase 1 of 10,000 tonnes completed and Phase 2 initiated ▪ Mining Focus : Various levels of La Paz tunnel ▪ Total tonnes of material mined: 15,297 tonnes ▪ Total tonnes of material washed: 2,777 tonnes ▪ Total emerald recovered: 16,723 ct ▪ Average Grade (carats per tonnes) : 6 ct/t ▪ A promising mix of high, medium, low quality of emeralds recovered
C) Diamond Core Drilling:
▪ Initiated in June 2018 ▪ Phase 1 of 1,509 meters completed and Phase 2 initiated ▪ 10 number of holes drilled till date ▪ Indications so far: subsurface continuity of the mineralised Muzo formation for another 120 meters below the lowest tunnel. The mineralised body is believed to remain open at depth.
12 http://www.furagems.com/ TSXV:FURA Geology and Mining Method Identified
Black shale Black shale with Calcite veins Breccia Zone Muzo Formation
1136msl 962 msl 789 msl 1328 msl
Proposed levels for Decline
- r Shaft
▪ The Muzo formation key for the emerald mineralisation is proven with 200m thickness and 700m vertical depth (with potential to continue further) ▪ The Ore Body has been identified as Black Shale with Calcite veins and Breccia Zone ▪ Mining Method been evaluated with third party consultant, Mining-One Australia. A trade-off study been evaluated between :
❑
330 m Vertical Shaft from 1136 level
❑
2km Decline from 1110 level
13 http://www.furagems.com/ TSXV:FURA Maiden 43 101 Code compliant Resource – “minimum” 30 years Life of Mine
The Coscuez mine – Muzo Formation and Tunnels
▪ 43-101 Code compliant inferred resource announced
❑
Total Ore resource of 3million tonnes
❑
Grade: 2 carats per tonnes
❑
Mining Rate of 105,000 tonnes per annum
❑
Life of Mine (“LOM”): 30 years
❑
Emeralds Production over LOM: 6 million carats
❑
Average price per carats: US$150 - US$200 per carats (QP Verified)
▪ Additional Resources Opportunity over and above Inferred resource of 146million carats
14 http://www.furagems.com/ TSXV:FURA CSR Programs – 96% acceptance from the community for Coscuez Project
The Coscuez mine – Muzo Formation and Tunnels Economic alternatives and new business
OVER 85 FAMILIES BENEFICIARIES Seamstress workshop Carpentry workshop Bakery association
Community development support
EDUCATION program English lessons, school kits, culture syllabus 370 beneficiaries Elderly support program Agriculture self-sustainment program – Alphabetization -
Health and psychological support 80 BENEFICIARIES
youth SUPPORT PROGRAM Arts and reading, music, sports and environmental promotion – new talent development Over 200 beneficiaries Road improvement Tertiary commercial roads maintenance Over 2000 beneficiaries
15 http://www.furagems.com/ TSXV:FURA Promising Bulk Sampling Results at Fura’s Colombian Emerald Coscuez Mine
16 http://www.furagems.com/ TSXV:FURA Fura’s Ruby Assets in Mozambique (Largest Landbank Holder in Ruby Belt)
Diamond World, July 17, 2018 Marketwatch.com, September 19, 2017 globenewswire.com, January 25, 2018 Bloomberg News, August 13, 2018
17 http://www.furagems.com/ TSXV:FURA Fura’s Ruby Mine in Mozambique – Low-Cost, High-Margin Model
▪ 2 Mining licenses with 25 years tenure ▪ Shallow Deposit, no drilling, no blasting required ▪ Well-defined geology with 46% control on the main ruby belt ▪ Infrastructure available, 2 wash-plants each with 100tph capacity ▪ Mining contractor appointed ▪ Drilling for 10,000 mts commenced ▪ Bulk Sampling / Production mining to commence February 2019 ▪ Total spent till date : C$9 million
Gravel Bed (secondary) Amphibolite (primary)
18 http://www.furagems.com/ TSXV:FURA Near Surface Ruby Occurrences in Mozambique
Gravel Bed (secondary) Amphibolite (primary)
19 http://www.furagems.com/ TSXV:FURA Key Upcoming Milestones
Colombian Emerald Assets
❑ Q1 2019: Wash plant construction in Colombia ❑ Q1 2019: Colombia Scoping Study ❑ Q1 2019: Marketing initiatives expected to be launched (educate consumers and prove chain of custody – implementing blockchain model) ❑ Q2 2019: Auction for Emeralds ❑ Q3 2019: Large scale underground mine in Colombia to be operational
Mozambique Ruby Assets
❑ Q1 2019: Marketing initiatives expected to be launched (educate consumers and prove chain of custody – implementing blockchain model) ❑ Q2 2019: Mozambique Technical Feasibility report ❑ Q2 2019: Large scale open-pit expected operational in Mozambique ❑ Q3 2019: Auction for Rubies
Corporate
❑ Q2 2019: Intention to dual list on London Stock Exchange
20 http://www.furagems.com/ TSXV:FURA Capital Structure and Share Metric
May’17 July’17 Feb’18 Sep’18 Nov’18
C$ 3.05mn
@C$0.21 per share
C$ 4.0mn
@C$0.40 per share
C$ 12.40mn
@C$0.60 per share
C$ 10.05mn
@C$0.40 per share C$ 5.25mn @C$0.40 per share
Forbes & Manhattan & Related Parties 43,073,094 Seven Hills Holdings & Related Parties 16,375,000 Dev Shetty 6,591,152 Portillion Capital 6,234,994 Wanhe Investments Ltd 5,730,000 IP and Co 2,000,000
Top 5 Shareholders
Stock Exchange TSX Venture Exchange Ticker FURA.V Price (C$/share) 0.33 Shares Outstanding (MM) 134.42 Market Cap (C$MM) 43.69 Warrants and Options (MM) 17.80 Fully Diluted Market Cap (C$MM) 50.23 52 weeks high (C$/share) 1.13 52 Weeks low (C$/share) 0.28 Capital Raise to Date (C$MM) 34.8
Share Metrics as of January 08, 2019 Funds Raised to Date: CAD $34.8 million 2 Year Stock Chart
21 http://www.furagems.com/ TSXV:FURA
CONTACT INFORMATION Dev Shetty President and Chief Executive Officer dev.shetty@furagems.com +971- 50 187 2487/+44 77475 62 475 Dubai Fura Services DMCC, 26J Almas Tower, Jumeirah Lake Towers, Dubai, UAE Canada Fura Gems Inc, 65 Queen Street West, Unit 800, Toronto, Ontario - M5H 2M5, Canada www.furagems.com