Q2 2019 - Mining Expo Namibia
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Q2 2019 P R E S E N TAT I O N
DISCLAIMER These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to AfriTin Mining Limited (“the Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company. The Slides and the accompanying verbal presentation are confidential, and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company or its respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements. The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships, the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in only with such persons. Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides. The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities represented hereunder and any representation to the contrary is an offence. No document in relation to the placing of the Company shares has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the placing or the Company’s shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland. The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended. The Slides and their contents are confidential and should not unless otherwise agreed in writing by AfriTin Mining Limited be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. AFRITIN MINING PRESENTATION Q2 2019
A F R I T I N – L O N D O N ’ S O N LY P U R E P L AY T I N L I S T I N G
BUILDING THE AFRICAN TIN CHAMPION
The right commodity Low cost curve
Sound market fundamentals, supporting First quartile cash-cost curve for Phase 2
STRATEGIC
stable commodity price outlook
PRINCIPLES Early production Scalable
Phased development approach allows for
early cash flows, while significantly de-risking Large mining licence area with over 180
Phase 2 mineralised, outcropping pegmatites
Resource Historic (Non JORC) resource would place Uis in the top 10 tin mines globally
1
Confirmation Resource due H1 2019
STRATEGIC 2 Early cash-flow Target initial tin concentrate production from Phase 1 plant Q2 2019
Completion of scoping study based on Phase 1 production
OBJECTIVES
Conversion of Scoping study into a Phase 2 Bankable Feasibility Study
2019 3 BFS Cash positive pilot plant, significantly reduces Phase 2 risks
Identify and secure other tin opportunities
4 Consolidation Develop quality deposits into world-class mines – Proven Management and Board
Targeting ~ 10,000 tonnes of tin concentrate production annually
AFRITIN MINING PRESENTATION Q2 2019 3
C O M PA N Y O V E R V I E W & M A R K E T B A C K D R O P
C O R P O R AT E S U M M A R Y
Share Price Graph
Ticker ATM GBX
4.4
Market AIM
Shares in issue 544 588 5251 4.2
Market Cap £ 23.6m1 4.0
Cash & cash equivalents £ 3.1m 3.8
Debt £ 0.0m 3.6
Minority interests £ 0.0m
3.4
Enterprise value £ 20.5m
3.2
Top 10 Shareholders 3.0
29-Nov-18 06-Dec-18 13-Dec-18 20-Dec-18 27-Dec-18 03-Jan-19 10-Jan-19 17-Jan-19
Shareholder Holding % Stake
Naminco Limited 91 931 731 16.9% LME 3 Month Tin Price
$/t
Miton Asset Mgt 70 163 557 12.9%
Bushveld Minerals Limited 51 995 342 9.5%
The Orange Trust 31 541 317 5.8%
City Financial 27 142 235 5.0%
Mr Brendan M Kerr 25 000 000 4.6%
Capital International IOM 22 855 661 4.2%
Mr Stephen Pycroft 18 518 518 3.4%
Shore Capital Stockbrokers 17 777 778 3.3%
Hargreaves Lansdown Asset Mgt 16 051 432 2.9%
Total top 10 372 977 571 68.5%
Others 171 610 954 31.5%
Total 544 588 525 100.0%
1
As of 22 January 2019
AFRITIN MINING PRESENTATION Q2 2019 5
N A M I B I A : A S TA B L E I N V E S T M E N T J U R I S D I C T I O N
Walvis Bay Port currently Road between Uis
• Complimentary mining and exploration jurisdiction with a being expanded and Walvis Bay
developed transport infrastructure.
• Stable democracy with an independent, strong legal system
• The country encourages foreign investment
• Long established Mining Act - Mining law in Namibia Is mainly
regulated by the Minerals Act 33 of 1992 which was amended
in 2008
• Mining is the biggest contributor to Namibia’s economy in terms
of revenue. Consequently, it is an important industry
• Fraser Institute lists Namibia number 53 globally in terms of
investment attractiveness and number 38 globally in terms of
policy perception. *Corruption Perceptions Index 2016
• 4th most transparent country in Africa
AFRITIN MINING PRESENTATION Q2 2019 7
TIN MARKET INTELLIGENCE - DEMAND
TIN OVERVIEW LONG TERM TIN DEMAND
• Supply demand fundamentals
― Refined tin consumption of c.340-370ktpa makes it a
relatively small market with China accounting for most
of demand growth
― Production cuts from several Chinese smelters in 2016
further exacerbated what was already a prolonged
deficit
― Tin has the shortest reserve life among base metals (16
years)
Source: World Bank, CRU, Macquarie research Source: ITA
DEMAND BY END USE REFINED TIN USE BY REGION (2017)
Others Hanging Wall
9.0%
Copper Alloys
5.0%
Lead Acid Batteries
8.0%
Solder
47.0%
Tinplate
15.0%
Chemicals
16.0%
Source: WBMS, DBS Bank
AFRITIN MINING PRESENTATION Q2 2019 8
TIN MARKET INTELLIGENCE – SUPPLY SHORTAGE
SUPPLY MARKET OVERVIEW SUPPLY SHORTAGE HAS DRIVEN REFINED TIN IN A
• Apex developing in physical supply constraints as a result
PERSISTENT DEFICIT
Kt
of: 5.0
-
― Closure of Chinese production plants in Yunnan; (5.0)
(10.0)
― Reduced exports from Myanmar (15.0)
(20.0)
― Environmental and regulatory hurdles in Indonesia (25.0)
― Depleting resources and grades from Latin America (30.0)
supply (35.0)
(40.0)
― Current tin price at 20,870 USD/t 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F
Source: World Bank, CRU, Macquarie research
POTENTIAL CHANGES IN TIN MINE PRODUCTION – REFINED TIN DEMAND CURRENTLY OUTPACES SUPPLY
2017 vs 2022 (KT/pa) Hanging Wall
Persistent deficit
Source: ITA Source: World Bank, CRU, Macquarie research
AFRITIN MINING PRESENTATION Q2 2019 9
CONSUMPTION TRENDS
FUTURE TRENDS
Tin dominates new technology, specifically:
• Emerging market opportunity for tin in
lithium-ion batteries
• Electric vehicles are the largest potential
growth sector for lithium-ion batteries
• Indium Tin Oxide (ITO) is used in touch
screens and display technologies such as METALS MOST IMPACTED BY TECHNOLOGY
LCD, plasma Tin
Lithium
• ITO also used in aircraft wind shields Cobalt
Silver
Nickel
• Global touchscreen controller market Gold
Electrical Contact Materials
expected to grow from $5bn in 2016 to Tungsten
Tin, Silver, Gold
Vanadium
$15bn in 2023 Graphite Battery Materials
Niobium Lithium, Cobalt, Nickel, Zinc
Zinc (Tin, Silver, Vanadium, Graphite)
PGM (Pt, Pd)
Salt
AV/EV Robotics Renewables Oil & Gas Energy Storage IT Other
Source: MIT
AFRITIN MINING PRESENTATION Q2 2019 10
AFRITIN MINING PROJECTS
EXISTING ASSETS
Damara
Bushveld
Tin Provinces of Africa
AfriTin assets Sn, Li and Ta
AFRITIN MINING PRESENTATION Q2 2019 12UIS TIN MINE: FLAGSHIP ASSET • Conflict-free, hard-rock tin deposit • Existing infrastructure already in place • Pegmatite mapping confirms historic data • Fundamental mineralization confirmed along strike and at depth • Coarse-grained cassiterite advantageous • High-grade mineralized zones scalable • Mining licenses in place • Imminent production • Non -JORC compliant resource of 73 mt @ 0.13% Sn was calculated with an additional 2.7 mt @ 0,015% Ta2O5 AFRITIN MINING PRESENTATION Q2 2019 13
REGIONAL FOOTPRINT AFRITIN HAS AN INTEREST IN A NUMBER OF HISTORIC MINING LICENCE AREAS IN A PROVEN TIN PROVINCE AFRITIN MINING PRESENTATION Q2 2019 14
UIS TIN MINE: ASSET HISTORY
Asset is acquired by Mr Angus Munro; Imcor enlarges the plant to SRK publishes a “LOM Plan Report for 1987-2063”*.
Discovery of
Uis Tin Mining Co (SWA) is established c. 100tph and commenced These were historical estimates that were not reported
the asset
and large-scale mining commences building the village of Uis to any recognised minerals industry reporting code
1911 1948/51 1958 1966 1980 1989 1990
Imcor acquires the asset and
installs a c. 35tph tin recovery Imcor enlarges the plant to c. Uis Tin Mine is closed
plant to produce cassiterite 140tph producing c. 100-120 following the tin price collapse
concentrate tpm cassiterite in the mid-1980s
Greenhills
(Bushveld
subsidiary) Historic estimate of Uis*
purchases 85%
stake from AfriTin Tonnes Grade (Sn Contained
(kt) %) Sn (t)
Mining Namibia1
Proven Reserve 48,426.8 0.136 65,860
Probable Reserve 21,896.9 0.135 29,561
2016 2017 - AfriTin Listed on AIM with Uis as its flagship asset
Total 70,323.8 0.136 95,421
1 Was renamed to AfriTin Mining Namibia recently, during 2014/16 the entity was called Dawnmin
*Non JORC-Compliant; Source SRK report 1989
AFRITIN MINING PRESENTATION Q2 2019 15HISTORICAL RESOURCES
FULLY PERMITTED MINING LICENCE AREAS
Uis License
ML134
tonnes of tin tonnes of tantalum
ML 129*
Commodity Ore (t) Grade (%) Mineral (t)
Nainais license
Sn 0,074 1 085 ML133
1,379,906
Ta2O5 0,015 191 Tsaurob License
ML129
Hanging Wall
ML 133*
Commodity Ore (t) Grade (%) Mineral (t)
Sn 0,072 1 043
1,332,598
Ta2O5 0,015 188
Potential for lithium co-
production
ML 134*
Rossmanite
Commodity Ore (t) Grade (%) Mineral (t)
(tourmaline) sample
found in the license
Sn 70,323,750 0.136 95 640 areas
*Non JORC-Compliant, source SRK report 1989
AFRITIN MINING PRESENTATION Q2 2019 16LARGE IN-SITU (NON JORC) RESOURCE REMAINS
HISTORICAL MINING FOOTPRINT ONLY A FRACTION OF LICENCE AREA
• >73m ore tones with an average grade of 0.134% SnO2
across the huge mining licence area
• Ore bodies are up to 40m thick and over 500m
along strike
• Existing pits open ended at depth and along strike
• Scope for near term resumption of mining operations
• Surrounding pegmatites mapped with confirmed
cassiterite mineralization
• Detailed mapping programme has identified higher
grade greisenised areas
• Concurrent exploration will target higher grade
pegmatites with low stripping ratios to maintain mining
stockpiles
Source: Google Earth
AFRITIN MINING PRESENTATION Q2 2019 17GEOLOGICAL MODEL
149 drill holes over V1 V2
• Existing pits open-ended at depth and along strike
• Historic drill hole spacing is along a 25m grid
• 3-D geological model created
• Modelling indicated that the V1 and V2 pegmatites
intersect at depth
• Early confirmatory drilling validating historical resource
figures (JORC)
• Confirmed cassiterite mineralization in proximal V1 V2 Pegmatites
unexploited pegmatites
• Concurrent exploration to prioritize higher grade larger
pegmatites with low stripping ratios
• 67 meter intersection of the W17 pegmatite displayed
visible cassiterite grains over the entire intersection
AFRITIN MINING PRESENTATION Q2 2019 18V1 V2 PIT DESIGN
• The combined mine plan delivers 2.75 million tonnes V2 Pit
Phase
(represents 3% of the historical resource) of pegmatite 3
at an average waste stripping ratio of 1:1
• Mine design, at 0.5 Mtpa ROM, provides sufficient
inventory to supply Phase 1 processing plant with ore
for more than 5 years
Phase 1
• Mine design exploits outcropping pegmatites and
excavations of the historical Uis Mine
V1 Pit
Hanging Wall
• Potential for fast production ramp-up
• Conventional open-pit mining with excavator-truck Phase
4
combination mining method
Foot Wall
Phase
2
AFRITIN MINING PRESENTATION Q2 2019 19M E TA L L U R G Y
HLS results – Tin deportment
• Coarse grained allowing for efficient processing, 100%
10% 5% 8% 10%
2%
competitive advantage
90% 1%
4% 2% 3%
80%
Sn Concentrate 70% Floats 2,90
• HLS tests show Sn recoveries >74% at concentrate Beryl
60% Muscovite Floats 3,10
50%
grades of >67% Sn 40%
74%
82% 78% Floats 3,30
Sinks 3,30
30%
Slimes
• 80% rejection of waste and 90% recovery of tin 20%
10%
shown by DMS pre-concentration tests Sn Phase One 0%
6% 6% 6%
Concentrate 95% - 6mm 95% - 3.35mm 95% - 2mm
• Overall recovery for tin and tantalite concentrates HLS results – Tantalum deportment
is ±65-70% 100%
Hanging Wall
13%
90%
1%
• Tantalite associated with the concentrate Final
Concentrate
80% 44% 3%
Drying 70% 63% Floats 2,90
60%
• Final concentrate grade between 63-66% Sn First Tin Metal
50% 2%
0% Floats 3,10
Product 70% Floats 3,30
40% 2%
Sinks 3,30
• Tin metal smelted 30% 2% 47%
Slimes
20% 30%
10%
13%
5% 7%
0%
95% - 6mm 95% - 3.35mm 95% - 2mm
AFRITIN MINING PRESENTATION Q2 2019 20B E N E F I C I AT I O N P R O C E S S • Advanced process flow design for beneficiation plant • The plant design is informed by the process flow of the historical Uis Mine, known to have been an efficient operation with multiple stages of beneficiation • AfriTin have opted for Dense Medium Separation (DMS) modules as opposed to the historic jigging circuit • DMS is regarded as capable of delivering superior separation efficiency • DMS is one of the simpler gravity processes used for separating minerals of different Specific Gravities (SG) • DMS combined with a fine gravity concentration circuit will form the backbone of the beneficiation plant AFRITIN MINING PRESENTATION Q2 2019 21
PLANT CONSTRUCTION PROGRESS
Workshop. Water tank. Thickener
and Dense Control room Dense Media
Media with Filter Press Separation Plant #1,
Separation and Final Spiral circuit and
Plant #2. Concentrate store shanking tables.
in background.
AFRITIN MINING PRESENTATION Q2 2019 22E C O N O M I C I M PA C T S - R E G I O N A L
• Employment opportunities - PHASE 1 we will recruit 100 employees.
• Further 50 contractors employees during PHASE 1.
• Local Namibian Contractors used for Civil and Plant Construction.
• Purchased used plant components within Namibia.
• Plant Refurbishment and Construction done by Namibian companies.
• Namibian Contractors used for Drilling, Blasting and Mining.
AFRITIN MINING PRESENTATION Q2 2019 23E C O N O M I C I M PA C T S - L O C A L
• Utilized Human Capital from Uis town when ever possible.
• During recruitment advantage was given to persons living in Uis.
• Tin Purchases from the Uis local small miners has continued.
• Company stimulates and supports local Uis businesses.
• Supported local community with water well drilling.
• Sponsorship for youth sport activity in Uis.
AFRITIN MINING PRESENTATION Q2 2019 24KEY DEVELOPMENTS FOR 2019
• Commencement of Production
• Confirmatory JORC-compliant resource
• Completion of scoping study and commencement of BFS
• Enhancement of the AfriTin portfolio to become African Tin Champion
AFRITIN MINING PRESENTATION Q2 2019 25LONG TERM DEVELOPMENT PLAN
Company strategy
Provide a Proof of Concept Business Proposal:
• Establish a team and pilot plant capable of producing a profitable concentrate
• Make use of historic process flows to accelerate early production
Phase 1 • Become a “first mover” in the new tin mine arena
• Delineate a resource based upon historic resource numbers
• Use data produced in Phase 1 to complete a Pre Feasibility Study for Phase 2
• Expand the size and scope of the existing portfolio
Leverage production profile to expand the operations of the business:
• Conversion of Pre Feasibility Study to Bankable Feasibility Study
• Identify further mineralised pegmatites within project and regional area
Phase 2 • Expansion of current plant/replicate current plant/build a bigger plant
• Growth of portfolio through acquisition in country and elsewhere in Africa
• Revenues in excess of $100million in 5 years?
AFRITIN MINING PRESENTATION Q2 2019 26EXPOSURE TO A MAJOR TIN ASSET OF GLOBAL SIGNIFICANCE
• Clear development timeline with 2019 catalysts for value
creation:
― commencing production
― confirmatory JORC-compliant resource
― completion of Scoping Study
― commencement of BFS
• Strong geological potential from a historically producing
mine
• Multi-commodity optionality via regional expansion
• A stable mining investment jurisdiction
• Strong medium-term demand for tin underpinned by
growing applications in new technologies
AFRITIN MINING PRESENTATION Q2 2019 27APPENDIX
C O M M U N I T Y I N V O LV E M E N T • Continue to engage with the local partners and communities • A strong focus is placed on consistent participation and communication between the community and AfriTin • Honourable Tom Alweendo, Minister of Mines and Energy, plus analysts and investors, hosted at site establishment ceremony, Dec 2018 • Significant support shown by Ministry of Mines • Excitement around expected economic benefits to the region AFRITIN MINING PRESENTATION Q2 2019 29
OTHER ASSETS
MOKOPANE TIN PROJECT
• Exploration license 2205PR over six farms covering 13253 Ha
• Exploration license 2371PR over three additional neighboring farms
awaited
• Four targets identified on farms, exploration conducted on two targets
to date, with 18,447 tons contained Sn resource established
• Scoping study completed October 2014 Mokopane
Tin Project
• Base case RoM of 691ktpa to produce ~700tpa of
99.5% Sn purity metal, yields positive economics
with a significant IRR of 34.6%
• Low quartile operating costs: $14,276/tonne
of tin metal produced (as of 24 September 2014)
• Potential additional 5,000 tonnes contained
Sn resource in the Underground Lease target area
• Greenhills interest = 74%, 26% held by local
Black Economic Empowerment partners
AFRITIN MINING PRESENTATION Q2 2019 30Registered office Anthony Viljoen, CEO
18 - 20 Le Pollet info@afritinmining.com
St Peters Port Guernsey www.afritinmining.com
Representative office
2nd Floor, Building 3
Illovo Edge Office Park
Corner Harries & Fricker Road
Illovo
Johannesburg, 2116
South Africa
Tel: +27 11 268 6555
Broker & Nominated Advisor Joint Broker Joint Broker
WH Ireland 2 Park Street 8-10 Grosvenor Gardens
24 Martin Ln London London
London W1K2HX SW1W 0DH
EC4R 0DR United Kingdom United Kingdom
United Kingdom
Investor Relations – UK
1 Cornhill 55 Baker street
London Marylebone
EC3V 3ND London
United Kingdom W1U 7EU
United Kingdom
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