AN EMERGING COPPER COMPANY - Investor Presentation ASX: KMT INVESTOR PRESENTATION - FEBRUARY 2018 - Kopore Metals Limited
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AN EMERGING Investor Presentation
COPPER COMPANY ASX: KMT
INVESTOR PRESENTATION - FEBRUARY 2018
Important Notice and Disclaimer This presentation has been prepared to provide information on the Kopore Metals Limited (Kopore), its Botswana subsidiaries and Botswana projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as the sole representation of any matter that a potential investor should consider in evaluating Kopore. Its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation. Prospective investors should make their own independent evaluation of an investment in the Company. Caution Regarding Forward Looking Information This document contains forward looking statements concerning Kopore. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward- looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Kopore’s beliefs, opinions and estimates of Kopore as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
KEY INVESTMENT HIGHLIGHTS
Emerging ASX copper explorer with strong growth outlook
Underexplored copper province Immediate targets and actively
hosting major development projects consolidating additional ground in the
Cupric Canyon Capital’s Zone 5 Kalahari Copper Belt
MOD’s T3
100% ownership of 7,891km2 of
tenements with exploration
commencing in 2017
3RD PLAYER IN PORTFOLIO
BOTSWANA’S POTENTIAL FOR
WORLD CLASS OUTSTANDING
KALAHARI COPPER TIER 1 DISCOVERY
BELT
LACK OF EXPERIENCED
QUALITY COPPER AND CREDIBLE
The ASX retains a small
EXPOSURE ON MANAGEMENT Experienced in exploration &
group of listed copper THE ASX TEAM project development and
explorers and developers operations in Africa
Positive macro-outlook for copper Discovered and developed projects in
with strong demand forecast, limited Botswana
new discoveries and projects in
development
CORPORATE OVERVIEW
Capital Structure
CAPITAL STRUCTURE BOARD OF DIRECTORS & MANAGEMENT
Mining Executive with over 23 years’ experience in
SHARES ON ISSUE (M) 434.2 international resources sector. Mr Ferguson’s roles range
(post Capital Raise) GRANT FERGUSON from African resource executive positions to senior
MANAGING DIRECTOR technical roles in gold and copper mining operations,
including over 5 years residing in the SADC region.
MARKET CAP (M) 18.3 Previous Partner and leader of PWC’s global metals and
(at A$0.042) mining team, substantial experience in Africa.
TIM GOLDSMITH Tim has been an advisor to the JORC committee and
NON-EXECUTIVE held many industry positions with AusIMM and the
CHAIRMAN Minerals Council of Australia. He also has extensive
CASH (M) 2.6 global experience including substantial time across
(End December Q 2017) Africa.
Ms Coates holds a Bachelor of Laws from Murdoch
DEBT (M) 0 SHANNON COATES University and has over 20 years’ experience in corporate
NON-EXECUTIVE law and compliance
DIRECTOR Ms Coates is a Chartered Secretary and currently acts as
company secretary to several ASX listed companies
ENTERPRISE VALUE (M) 15.7
Over 30 years experience in the resource industry
including specific experience in the Kalahari Copper Belt.
DAVID CATTERALL
EXPLORATION MANAGER
OPTIONS (M) 55.1b David’s project experience ranges from grass roots
exploration to feasibility studies for open pit and
underground operations.
a. Original cash position of A$3.6m amended by MNE to conduct an airborne magnetic and electromagnetic survey (ASX announcement 25th September 2017)
b. Options are exercisable at $0.06 each, on or before the date which is three years after the date of issue
WHY THE KALAHARI COPPER BELT? Globally significant & under-explored Copper Belt Kopore sits within a major structural corridor and hosts over 200km of potential favourable horizon for mineralisation. Increased understanding of varied mineralisation control is accelerating the potential for significant discoveries.
DISCOVERY MODEL
The ‘right’ geology for hosting major discoveries
Kalahari Copper Belt
Total current resources ~7Mt Cu (15.5Bn lbs Cu) & 260Moz Ag
• The Kalahari Copper Belt is an underexplored emerging copper province that hosts major
development projects including Cupric Canyon Capital’s Zone 5 deposit and MOD’s T3 deposit
• The belt stretches for approximately 1,000 km and consists of folded and greenschist metamorphosed
metasedimentary rocks along the north-west edge of the Kalahari Craton
• Cu-Ag deposits occur in multiple stratigraphic units of shales and siltstones with the distribution of
mineralisation being structurally related. Mineralisation is typically predominately bornite, chalcocite,
and chalcopyrite.
ASSET PORTFOLIO
A dominant ground position
Kopore’s tenements cover two key areas of Botswana’s Southern Kalahari
Copper Belt
GHANZI WEST SENYETSE GROUP
AREA
6,060.2 km2 1,830.5 km2
• Preliminary exploration • Potential structural and
identified potential contact targets identified
bedrock sulphide targets • Historical reconnaissance
• Airborne EM identified sampling indicated
SNAPSHOT
‘domal’ target at GWD1 anomalism over key
• Two soil anomalies, each structural targets
approx. 10km in strike • Field reconnaissance
• Historical drill holes indicates shallower cover
intercepted pyrite than previously thought.
• Two interpreted domal
structures untested
• Kopore soil sampling • Confirmatory soil sample
confirms soil anomalies at program completed at the
2 new locations S1 Target, confirming
• Ground magnetic and EM anomaly
EXPLORATION
survey identified potential • Ground magnetics/EM to
bedrock conductors refine drill targeting
• Planned shallow drilling • Airborne magnetic and/or
programs across untested EM program over
Cu soil anomalies to occur interpreted domal
in Q1/Q2 2018 structures
• RC drilling program in • Recon drilling plan to
2018 follow – Qtr1/Qtr2. 2018
GHANZI WEST
Immediate exploration targets – Ghanzi West Group
Overview
• Recently completed airborne survey
confirms GWD1 is a large domal
target, similar to those that host
major deposits in the Kalahari Copper
belt
• Recent exploration confirms both
(GW1) and (GW2) have potential for
bedrock conductors based on
completed ground geophysical survey
• Four soil anomalies delineated with
potential bedrock conductors
delineated at GW1 and GW2
• The easternmost interpreted domal
structure (GWD2) lies along strike of
the MOD Resources announced T7
domal structure
• Historic regional aeromagnetics and
soil geochemistry confirmed which
support immediate exploration
targets
GHANZI WEST
Immediate exploration targets – Ghanzi West Group
Exploration Program
• Soil sampling over selected areas
of GWD1, GWD2 and GW3 to
validate geophysical conductors
• Further ground-based
geophysical surveys over key
airborne EM targets to assist in
refining the geological contact
position and drill targeting
• Follow-up drilling to test for
mineralisation zonation where
pyrite has been encountered and
strong EM signatures at GW1
• Drilling GW2 potential bedrock
conductors
• Focussed airborne magnetic
and/or EM programs as new
targets are identified
• Expand to other targets with
developed knowledge base
SENYETSE GROUP
Greenfields exploration potential
Overview
• New geological interpretation supports a
renewed view on the geological
prospectivity
• S1 historical anomaly confirmed by recent
soil sampling program
• Interpreted coincident fold axis and cross
cutting structure highlighting anomalous
Cu soil analysis results
Exploration Strategy
• Further soil sampling program over other
priority areas
• Basic ground magnetic and EM survey to
refine geological contact position and drill
targeting
• Focused airborne magnetic and/or EM
program over interpreted domal structures
• Drilling program in Q1/Q2 2018WORK PROGRAM
Well funded post listing to support steady news flow
ASX LISTING POTENTIAL SULPHIDE TARGETS FOR 2018 SOIL PROGRAMS GROUND GEOPHYSICAL
EXPLORATION Continue soil sampling across PROGRAMS
Listing of Kopore TARGETS IDENTIFIED • GWD1 Identified Prospects
Metals Limited Exploration completed by Initial ground geophysical
Maiden Ground magnetics
Kopore to-date will be used • GWD2 potential domal magnetic and EM programs
(ASX:KMT) identifies multiple sulphide structure
08/11/2017 to rank exploration targets across potential GWD1 and
targets, paving way for
for 2018 program • Senyetse S2 Prospect GWD2 prospects, Senyetse and
exploration in 2018 • PL210/2017 Target Area additional prospects as identified.
05/12/2017
ADDITIONAL AIRBORNE MAGNETICS COMMENCE AIRBORNE
LICENCES COMPLETED DRILLING GEOPHYSICAL SURVEY
ACQUIRED Significant airborne magnetics PROGRAM Initiate airborne magnetic and
covering 1,091.7km2 potential EM over the GWD2 Domal
Additional 2,730km2 Initiate shallow drilling
domal target at GWD1 completed Prospect and possible GW3
licences surrounding programs across untested
04/01/2018 Cu soil anomalies area.
Ghanzi West AcquiredKOPORE METALS
Well positioned for growth among peers
Competitive Landscape – ASX Copper Companies
2.76bn 1150 274 Producer Contained Cu (Right Hand Axis)
4000
200
Explorer/developer
185
180
160
3000
140 136
Market Cap (A$m)
Contained Cu (Kt)
120 114
96
2000
100
89
80 75
60 56
51
48
1000
40 36
22
18 18
20 15
0
0
OZL SFR AMI FND AL8 MOD TGS KGL AOH HGO HAV TLM RXM MEP KMT HLX HMX
Source: Discovery Capital PartnersWHY BOTSWANA?
Top tier African address
Botswana provides a lower shareholder
exposure to sovereign and political risk, an
established foreign exchange policy, literate
and skilled population and a government
that is pro-exploration & mining and
foreign investment
Fraser Institute1 Rankings
• Ranked 2nd for Investment Mining Investment
Attractiveness Index Africa & 19th globally by
country
• 3rd globally for favourable taxation regime
Taxes & Royalties
• Base corporate tax at 22% of profits
• Withholding tax of 7.5% on dividends
• Copper Royalties of 3% of revenue
1. https://www.fraserinstitute.org/categories/miningOUR HISTORICAL ASSETS
Existing Portfolio
Our existing portfolio comprises the Teutonic Project in Western Australia and Comval Project
in the Philippines which are prospective for copper, gold and other base metals
Comval Project
• Project-level interest in the
Teutonic Project Comval Copper Gold Project1
• Prospective for copper and
• Strategic tenure within gold deposits associated with
the VMS corridor which porphyry systems including:
hosts the Bentley and
• Copper/Gold/Magnetite
Jaguar VMS Zn and Cu
skarns
deposits and favourable
• Porphyry
preliminary exploration
• High grade epithermal gold
results
1. Initial 80% project-level interest that has been diluted to 36% in accordance with the original acquisition terms (see Announcement 7 November 2011, “Mining
Group to Acquire 80% Interest in Comval Copper and Gold Project in Philippines”REASONS TO INVEST
✓ RARE AND EXCITING OPPORTUNITY to participate alongside
major peers in a highly prospective Copper project
✓ DOMINANT GROUND POSITION with ‘critical mass’ in
Kalahari Copper Belt and Outstanding Opportunity for a Tier 1
discovery
✓ Botswana is MINING FRIENDLY and a key African destination
for investment
✓ STRONG MANAGEMENT TEAM including experienced in-
country expertise who have delivered mining projects
✓ LACK OF QUALITY COPPER EXPOSURE on the ASX
RIGHT TIME, RIGHT PLACE, RIGHT TEAM TO DELIVERCOPPER- A METAL OF TOMORROW Favourable growth outlook with new sectors and diminishing supply ✓ Although Cu supply and demand are in apparent parity presently, demand is expected to significantly exceed supply in the coming years leading to higher Cu prices and higher incentives to be in the Cu space. ✓ With China in the spotlight, other developing economies are overlooked such as India, with expected annual Cu demand growth to exceed 8%. ✓ It is expected that demand growth will tower mine supply growth given the current lack of capital investment and the ever-growing Chilean Cu industry challenges. TOTAL ADDITIONAL COPPER USE 2015-2030
COPPER- A METAL OF TOMORROW
Favourable growth outlook with new sectors and diminishing supply
✓ Global Copper demand is driven by many key factors:
▪ Continuous infrastructure spend requiring copper wiring, electrical equipment etc; and
▪ The growing transition to Electric Vehicles (EVs) as well as an increased want for renewable energy
(significant influence on demand)
✓ The global demand for EVs is expected to grow rapidly with exponential growth expected
over the coming 20 years
✓ As mines progress onto their lower grade stock, pressure will continue to grow on the
supply side.
Global Cu Demand/Supply EV Sales & Required Cu
300
24
20
250
Cu Required (tonnes)
22
Expected EV Sales
20
Copper (Mt)
200 15
18
150
16 10
14 100
5
12 50
10
0 0
2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
EV Sales (Million Cars) Cu/t (millions)
Refined Production (Cu) Consumption Demand (Cu)
Source: ICSG, Brook Hunt Source: Bloomberg New Energy FinanceLACK OF GREENFIELD PROJECTS
After recent heavy growth, new mine development has stalled
✓ Over recent years, ~15 greenfield copper projects larger than 50ktpa were commissioned.
✓ In contrast, only 2 large projects are currently under construction and paired with long
greenfield approval lead times, no new significant projects are anticipated to transition
into production until at least 2020.
✓ This will create a unique opportunity for all near term copper producers that will see a
strong uplift in the Cu price resulting from demand exceeding supply.
✓ In the past 3 years, capital investment across the major copper players globally fell ~50%
from $28bn to $14bn.
LARGE GREENFIELD COPPER PROJECTS RECENTLY COMPLETED AND THOSE APPROVED AND IN CONSTRUCTION: = 50-150ktpa
Caserones El Boleo = 150-250ktpa
Antas
Bisha Anlucoya
Sierra Gorda
= >250ktpa
Oyu Tolgoi Las Bambas
Ministro Hales
Jabil Sayid
Sentinel
Cobre Panama
Bozshakol Quilong
Constancia Aktogay Carrapateena
Toromocho
2013 2014 2015 2016 2017 2018 2019 2020
Source: Broadhurst Miningkoporemetals.com info@koporemetals.com Level 2, 470 Collins Street T +61 3 9867 7199 MELBOURNE VIC 3000 F +61 3 9867 8587
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