proven success | outstanding assets | emerging gold producer proactive investor forum | october 2012

21
PROVEN SUCCESS | OUTSTANDING ASSETS | EMERGING GOLD PRODUCER PROACTIVE INVESTOR FORUM | OCTOBER 2012

Upload: noah-brent-allen

Post on 16-Dec-2015

218 views

Category:

Documents


1 download

TRANSCRIPT

PROVEN SUCCESS | OUTSTANDING ASSETS | EMERGING GOLD PRODUCER

PROACTIVE INVESTOR FORUM | OCTOBER 2012

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

2

EMERGING GOLD PRODUCER – AIM : AFCR

High grade 4.3 million ounce JORC–certified deposit

1.9m Measured & Indicated + 2.4m Inferred

BFS commencing – 2012 Q4: Targeting -

1.6m troz Open Pit @ 2g/t Au > 50% Measured + Indicated

+ 1.6m Shallow u/ground: +4g/t > 50% Measured + Indicated

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

3

Executive Team

Roy TuckerExecutive Chairman

Roy Tucker is a Chartered Accountant whose background is as a tax consultant. He has co-founded and been involved in the management of various financial businesses particularly in the banking and commodity sectors. He is a co-founder of South Africa based Legend Lodges Group, which holds African tourism interests. Roy Tucker is based in the UK.

Andrew CranswickChief Executive Officer

Andrew Cranswick is a fourth-generation Zimbabwean and has lived almost all of his life in the country. He has a geological background with extensive commercial experience in the mining and metals industry of Southern Africa. In the 1990s he established a successful group of IT companies in Zimbabwe, including the nation's first Internet Service which he sold to an International concern before the dot com crash. More recently a major stake-holder in the Australian cattle industry he returned to Zimbabwe to found ACR.

Mike KellowTechnical Director

Mike Kellow is an exploration geologist with over 27 years' experience in diverse gold, base-metals and uranium exploration in Archaean and Proterozoic terranes both in Australia and Africa. He was team leader in discoveries of virgin mineral systems in Western Australia and the Northern Territory. He has worked in Australia with a range of junior and mid-cap exploration companies, and consulted in Australia and Africa with companies including Anglo American and Gold Fields. He was also a founder of e-geology firm Intierra.

Stuart Bottomley Non-Executive Director

Stuart Bottomley has an extensive financial background having previously worked for Fidelity International focussing on UK and European markets. He has consulted for numerous private and public companies, advised a number of Australian companies on admissions to AIM and assisted in IPOs and other fundraisings. He is currently a non-executive director of Polar Star Mining Corp, and Verona Pharma Plc. He was previously the senior non-executive director of Centamin Egypt Ltd.

Julian Emery Non-Executive Director

Julian Emery is an experienced mining analyst and combines practical mining experience with financial experience. Upon graduating from the Camborne School of Mines, he joined Union Corporation in South Africa where he gained experience of all aspects of the mining industry and subsequently worked for Tsumeb and New Jersey Zinc. He has worked in the City since 1970, in research and fund management for mining houses and a number of brokers. He was voted Mining Analyst of the Year in 2008 by the Association of Mining Analysts.

Lloyd ManokoreNon-Executive Director

Lloyd Manokore is a law graduate from the University of Zimbabwe and has 20 years of legal experience. He was previously company secretary for Cairns Holdings, where he spearheaded the legal portfolio for the largest food production company in Zimbabwe. He moved to Innscor Africa in 1996 as group legal advisor and oversaw the reverse listing of the group onto the Zimbabwe Stock Exchange in 1998. In 2000 he founded Ibis Africa, a corporate advisory business focusing on Pan African opportunities.

David Curas-ThompsonChief Financial Officer

Roy Tucker is a Chartered Accountant whose background is as a tax consultant. He has co-founded and been involved in the management of various financial businesses particularly in the banking and commodity sectors. He is a co-founder of South Africa based Legend Lodges Group, which holds African tourism interests. Roy Tucker is based in the UK.

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

4

Central Africa – Geologists’ Heaven

ZIMBABWE/ZAMBIA

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

5

History, Strategy & Positioning

• AIM IPO 2006: Exploration | Resource-development | Production • Phase 1 – Zimbabwe 5-10yr window of opportunity: 2012 = Year 6/7• Phase 2 – Zambia – quality assets + stability = sovereign risk offset• Highly experienced board, management, capabilities & technical team

• First-Mover Advantage in Zimbabwe – gold production targets

• Zambia successes in stable environment: • Key projects: North-West (Cu/Ag/Au); • North-East (Phosphates + REEs)

• Local relationships + aggressive exploration programme yielded world-class discoveries in four diverse mineral types

INCUBATOR: ZIMBABWE TURNAROUND + ZAMBIA STABILITY

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

6

Value creation

Ground staked

In-house / JV development

Possible Sale of Assets

Build Mines

$ Value Accretion

JORC

Macro-Targeting Geo-chemistry

Geophysics

Drilling – resource definition

$ Value Accretion

$ Value Accretion

Pre-Feasibility & BFS

Value to shareholders :

Targeted exploration drilling

INCUBATION – Development - VALUE EXTRACTION

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

7

Capabilities & Track Record

• Highly competent management & technical team – all in-country

• In-house XRF assay lab – base metal, gold-indicator tests; diamond-indicator picking

• Professionally built Fire-assay gold laboratory

• In-House aerial geophysical survey capacity – own aeroplane

• Employee Profile – 98% Local

• Sampling – 120,000+ soil samples assayed

• Drilling – 130,000+ metres drilled & assayed to date with legacy drilling digitised & plotted

HIGH VOLUME + LOW COST + LATEST SCIENCE = RAPID DISCOVERY RATE

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

8

Incubation: developing the portfolio

• Copper: Zambia brownfield + greenfield

• REEs Zambia: 3-23% TREOs including critical REEs

• Phosphates: Zambia & Zimbabwe: 12-26% P2O5 – metallurgy good and high demand

• Nickel : 28km strike Ni Sulphide belt with proven mineralisation

• PGMs on Great Dyke: drilling for high grade zone

• Diamonds: Marange & Others

GROWTH FUTURE VALUE

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

9

…and GOLD

GOLD: CURRENCY OF THE PAST CURRENCY OF THE FUTURE

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

10

Zimbabwe – the crystal ball

• Attractive gold-producer climate – taxation, costs, infrastructure, free export of gold, hard currency

• Indigenisation?

• Political Future – next watershed – world view - Investment

GOLD is GOLD - in any jurisdiction

• Build asset base / minimise risk / produce GOLD

PERCEIVED POLITICAL INSTABILITY = EARLY MOVER OPPORTUNITY

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

11

9Moz

8Moz

7Moz

6Moz

5Moz

4Moz

3Moz

2Moz

1Moz

19

75

20

05

19

95

19

85

Yilgarn

Zimbabwe

Ou

nce A

u /

pa

Year

Gold pricePote

nti

al

Point of International De-Regulation

Gold geology – a terrane comparison

Western Australia vs Zimbabwe – gold production

POSITIONED TO FILL THE GAP

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

12

Zimbabwe Midlands Gold Projects

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

13

Pickstone Section:Grade distribution model

State-of-the-art technology applied – BFS simplified

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

14

Best Practice Resource Definition

BFS simplified

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

15

EMERGING GOLD PRODUCER – AIM : AFCR

4.3m troz JORC; GOOD GRADE; >40% M&I;

BLUE SKY: Open along strike; at depth; at width

How do you buy GOLD @ under $4 per oz ?

And ACR’s other assets – value?

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

16

Share price influence

March 2011 – Zimbabwe Indigenisation Regulations announcement; Share price down 70% in 9 months. Sensible compliance in progress

ZIMBABWE POLITICS – PRICE - SHADOW

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

17

Share value proposition

• Near term gold production – geological peer comparison – Barberton (see table – next slide)

• Recent Acquisitions - $/troz ~$30 - $120 vs. $3-$5 / troz implies potential multiplier of 7–40 x

• Additional Value – Zambian Assets – lower sovereign risk - Cu / REE / P

• Additional Value – non-gold assets including Copper, phosphate, REEs, PGM, nickel

• Cash generation potential - Gold and Copper assets - Newsflow

UNDERPINNED BY GOLD – ENORMOUS UPSIDE POTENTIAL

EMERG

ING

PROD

UCER - VALU

E UPLIFT

POTEN

TIALPickstone Mine B

Geology Terrane Greenstone Greenstone

Region Southern Africa Southern AfricaStock Exchange Listing AIM AIM

Historical Production – TROZ 500,000 660,000Jurisdiction Zimbabwe South Africa

Parallel Ore Bodies 2 1Total Resource – JORC 3,200,000 2,050,000Avge Resource Depth 280m 1,950m

Likely Min Reserve 1,600,000 1,000,000Surface JORC Ounces 1,600,000 0

Surface Mine Grade 2+g/t Au n/aShallow 150-450m 800,000 Mined out

Shallow U/G Mine Grade 4+ g/t Au n/aMedium Depth 450-800m 800,000 Mined out

Medium Depth Grade 5.5 g/t Au n/aDeeper - 800m - 2,000m Open 2,050,000

Deeper Mine Grade Range 6-10g/t Au 6-10g/t Au Targeted Production Per Annum 100,000 100,000

Approx Production Cost $/ troz 700 750~Attributable Market Cap ($m) $ 11.5m _ $ 336m

$ / Troz Resource $3.60 _ $164.00

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

19

Key data

Financial Summary: AFCR Key Shareholders (approx)

Share Price (£) 2.5p City Securities 9%

52-week High (£) 4.25p Williams de Broë - Pvt Clients 11%

52-week Low (£) 2.14p Investec – Various funds 8%

Shares Outstanding 586m London & Amsterdam Trust Company

6%

Market Cap (£) £14.6m

Alabastra Mining 5%

Cash / Near-cash assets (£) 3 m Board & Management (incl Incentive Schemes)

5%

Implied Projects’ Value (£) £11.6m

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

20

Disclaimer

This presentation (‘Presentation’) has been presented to selected parties (‘Recipients’). The Presentation and the information contained here is confidential to African Consolidated Resources Plc (‘ACR’ or ‘the Company’). It is not intended for and should not be distributed to any other person other than as permitted herein.

By viewing this Presentation, the Recipient agrees that he/she will not transmit, reproduce or make available the Presentation (or any information contained herein) to anyone other than to his/her professional advisers without the prior consent of ACR. Any such disclosure to the advisers of the Recipient must be on a confidential basis, for the purpose only of assessing the information contained herein as adviser to the Recipient.

This Presentation has been prepared as a summary only and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and rights and liabilities.

The information contained in this Presentation or subsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of ACR and its directors, officers, employees, advisers, agents or consultants (‘Information’) is provided to the Recipients on the terms and conditions set out in this notice.

The purpose of this Presentation is to provide Recipients with Information relating to ACR. The Presentation has been prepared by ACR and each Recipient must make his/her own independent assessment and investigation of ACR and its business and assets and should not rely on any statement or the adequacy and accuracy of any Information contained in this Presentation.

ACR makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the Information. ACR and its directors, employees, agents or consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or any omissions from the Presentation, except liability under statute that cannot be excluded.

The Presentation contains reference to certain intentions, expectations and plans of ACR. These intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may or may not be met or on which views may differ. The performance and operations of ACR may be influenced by a number of factors, many of which are outside the control of ACR. No representation or warranty, express or implied, is made by ACR any of its directors, officers, employees, advisers, agents or consultants that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. This Presentation does not constitute in any way an offer or invitation to subscribe for securities in ACR.

| AFRICAN CONSOLIDATED RESOURCES PLC | PROACTIVE INVESTORS | OCTOBER 2012

21

Contacts

Andrew Cranswick

CEO, African Consolidated Resources plc

T: +44 7920 189 010 | E: [email protected]

Andrew Godber | Panmure Gordon (UK) Limited

T: +44 20 7604 8385 | E: [email protected]

Susie Geliher | St Brides Media & Finance Limited

T: +44 20 7236 1177 | E: [email protected]