PresentingPresentingthethe

Managed by

Decorum Capital Partners (Pty) Limited

Portfolio Committee on Minerals & Energy, Parliament

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Principal Managers

Arthur Mashiatshidi

John Taylor

Neil Gardyne

Paul Mwasinga

Richard Shead

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Background & Motivation

• Mineralisation in the region

• Absence of junior mining culture

• New mining legislation in SA

• Existence of mining systems & knowledge

• Favourable investment climate

• Risk mitigation

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Description of NAMF Fund

• Incorporated in SA as a Bewind Trust

• Private Equity Fund

• Providing Risk Capital

• Competitive Return on Capital

• Focusing on Junior Mining Opportunities

• Investing in diversified minerals

• Regional Focus: The African Continent

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Framework

• Competitive Returns on Investor Capital

– Fund projects with potential for a high return

– Invest in projects with commercial merit

– Sanlam option to receive capital protection

• Support SA transformation objectives

– Access to funding (non traditional)

– Mitigate risks

– Facilitate access to skills

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Stage of FocusFocus on opportunities seeking risk capital

NAMF FOCUS

Discovery

Pre-Feasibility

ResourceDefinition

Feasibility

Incr

easi

ng P

roje

ct V

alue

Project Stages

Production

Harvest

IPO

MBO

Etc.

DecreasingRisk

Value

Cur

ve

Risk Capital (Equity) Quasi Equity Debt Finance

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Salient Terms

Aim to raise between R1 billion and R2 billion of commitments

Finite life of 10 Years

Draw-Down Basis

6 Year Commitment Period

Rand Denominated

Optional Capital Protection

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Corporate Governance

• Board of Trustees

– Reputable business and mining leaders

– Responsible for setting policy direction

• Investment Committee

– Balance between investors and trustees

– Significant investor representation

– Responsible for final investment approval

• Conflicts committee

– Actively address opportunities for conflicts

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Investors

• ABSA Corporate Merchant Bank

• BHP Billiton Limited

• Development Bank of Southern Africa

• Gold Fields Limited

• Harmony Gold Mining Limited

• Industrial Development Corporation

• International Finance Corporation

• Kumba Resources Limited

In Excess of R 460 million

alreadycommitted

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Participation Options• Sanlam Investment Management (SIM)

• 2nd Largest Asset Manager in Africa

• Manages > R 200 billion in assets

• Optional Up to R1 Billion Capital Guarantee

SIM Fund of Funds

New Africa Mining Fund

Current Investors

Other Fund Other Fund

New Investors

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Challenges/

• Skills and Expertise

– Technical

– Financial

– Managerial

– Operational

• Expectations

• Regulatory

– Commercial / BEE

– Royalties

– Beneficiation

Mentor Group

No Resources

Structured Incentives

Flow Through Shares

Access to Financial Markets

Contact Details:

Arthur +27 82 560 0469