1 / 20

INVESTOR PRESENTATION May 2008

INVESTOR PRESENTATION May 2008. . THIS DOCUMENT AND ITS CONTENTS ARE CONFIDENTIAL AND SHOULD NOT BE COPIED OR DISCLOSED TO ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY.

jed
Télécharger la présentation

INVESTOR PRESENTATION May 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INVESTOR PRESENTATION May 2008

  2. . THIS DOCUMENT AND ITS CONTENTS ARE CONFIDENTIAL AND SHOULD NOT BE COPIED OR DISCLOSED TO ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY. The information contained in this document is subject to updating, completion, revision and amendment. No representation or warranty, express or implied, is given by the Company, its directors, employees or shareholders, (or any of their respective agents or advisers), as to the accuracy, completeness, correctness or fairness of the information contained in this document or the opinions expressed and projections contained therein and no liability whatsoever is accepted for the contents or accuracy of this document or any omission therefrom. This document is being distributed only to and is directed at persons who (i) have professional experience in matters relating to investments as contemplated in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (ii) fall within Article 49(2)(a) to (d) (“high net worth companies etc.) of the Order or (iii) are outside the United Kingdom and to whom it may lawfully be communicated (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person should not act or rely on this document or any of its contents. This document does not constitute, or form part of, any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for any shares in the Company in any jurisdiction nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. This document should not be distributed, published or reproduced in whole or in part or disclosed by recipients to any other person. May 2007

  3. INVESTMENT HIGHLIGHTS • Near Term PGM Production from Blue Ridge (50%) • Mine development commenced January 2007 • Mining of ore commenced to establish stockpile • Concentrate production on scheduled for Q4 2008 • Finance in place • Sheba’s Ridge Large Scale Advanced Ni/PGM Development Project (61.5%) • Feasibility Study – technical work complete subject to audit by SRK Consulting • Significant Resource Base • 18 million oz 4PGE attributable; 6.4 million oz attributable reserves • Experienced Management Team with Significant Technical Expertise • Attractive Valuation • US$11/oz of 4PGE Measured and Indicated resources • US$31/oz of 4PGE Proved and Probable reserves

  4. OUR METALS • Platinum • Demand strong due to increasing auto emission legislation • Jewellery swing consumer • Nickel • Demand increasing 5% pa • Palladium • - Increasing substitution for autocatalysts

  5. ISSUES FACING PGM SUPPLY • Staffing • Acute shortage of qualified technical personnel • Cost Inflation • Staffing • Increasing Depth (safety, refrigeration) • Power • Power • Eskom: No power to new projects until 2012/3 • Power restrictions for next 5 years

  6. RIDGE MANAGEMENT Executive – together 7 years • Terence Wilkinson – Chief Executive • Over 30 years of experience in PGM industry • Former Chief Operating Officer of Lonmin plc • Francis Johnstone – Commercial Director • Over 19 years of experience in mining • Former Group Projects and Operations Manager of Cluff Resources plc • Donald McAlister – Finance Director • Over 17 years of experience in mining • Previously finance director of Reunion Mining PLC Senior Management • Mining: Four former General Managers from Lonmin, 2 senior engineers from Anglo Platinum • Metallurgy: Two former Consulting Metallurgists from Lonmin, one ex-Palabora • Geology: Two professors from Witwatersrand University • Finance: Ex-Anglo Platinum • Legal: Former senior legal counsel Lonmin

  7. BUSHVELD COMPLEX– PROJECT LOCATIONS

  8. BLUE RIDGE – SUMMARY & RESOURCES • UG2 underground commencing from surface • Mining and concentration at site • Concentrate offtake agreement with Impala Platinum for Life of Mine • Development commenced January 2007 • Acquisition of Millennium – March 2008 • Opportunity to expand annual production

  9. DEVELOPMENT PROGRESS (31-3-08) North Shaft - Belt Decline: Decline development 402m Linear @ 87m Depth Two levels established South Shaft - Truck Ramp: Decline development 481m Linear @ 67m depth Two levels established Central Mine Stoping commenced Surface stockpile: 52 000 tonnes Concentrator plant: Bateman LSTK contract - scheduled completion November 2008 Power: Commitment from Eskom, standby diesel generation Low usage (decline shafts, ventilation only - no refrigeration) 9

  10. Production Tonnage Ramp-up

  11. BLUE RIDGE FORECAST PRODUCTION

  12. BLUE RIDGE – ECONOMICS Sensiti vity of NPV to Assumptions (US$M ) Exchange Rate (Rand/US$) ( - 10)% 7.66 +10% -10% 519 580 553 Basket Price (US$/oz) $1764 601 635 662 716 +10% 683 744 * 50% attributable value equivalent to £1.75 per share

  13. BLUE RIDGE – FINANCING • Loan agreements with a banking consortium including the DBSA, IDC, Investec and Standard Bank • US$92m facilities • US$13m overrun facility • Total Loan facilities US$105m • First drawdown made • 50:50 Joint Venture with Imbani Platinum • funds received • Hedging: • up to 50% Platinum over 4 years • up to 50% Palladium over 4 years • 30% Rhodium over 3 years

  14. SHEBA’S RIDGE FEASIBILITY STUDY • Large open pit mine • 18 million tonnes ore per annum for over 20 years • Projected annual production in concentrate: • 24,000 tonnes Nickel (52 million lbs) • 11,000 tonnes Copper (23 million lbs) • 390,000 ounces 3PGE+Au • Pre-feasibility study into smelter • Advanced discussions with third parties to undertake bankable feasibility study on smelting • All technical aspects completed – subject to independent audit

  15. SHEBA’S RIDGE MINERAL RESOURCEJORC audited by SRK Consulting – January 2008

  16. SHEBA’S RIDGE – SITE LAYOUT 16

  17. SHEBA’S RIDGE – JOINT VENTURE • Joint Venture with Anglo Platinum (AP) and Industrial Development Corporation of South Africa (IDC): • Current AP 35% • IDC: 26% • Ridge 39% • Ridge will acquire a further 22.5% interest in Sheba’s Ridge from AP for US$12.5 million on Decision to Mine • On Decision to Mine participating interests: • Ridge 61.5% • IDC 26.0% • Anglo Platinum 12.5%

  18. CORPORATE INFORMATION • Based in London and quoted on AIM (RDG) • Current Shares Issued 90.7 million • Share Price (12 May 2008) £1.30 • Market Capitalisation £118 million (US$231m) • Major Shareholders: • Zijin 20.0% • Black Rock 12.4% • BAC 9.5% • New Star 4.0% • Coronation Capital 3.8% • Warrants/Options: • Zijin : 7 million warrants at 70p per share (Nov 2009) • Imbani: 25 million options at 70p per share (Jun 2012)

  19. Comparable Companies Analysis

  20. INVESTMENT HIGHLIGHTS • Near Term PGM Production from Blue Ridge (50%) • Mine development commenced January 2007 • Mining of ore commenced to establish stockpile • Concentrate production on scheduled for Q4 2008 • Finance in place • Sheba’s Ridge Large Scale Advanced Ni/PGM Development Project (61.5%) • Feasibility Study – technical work complete subject to audit by SRK Consulting • Significant Resource Base • 18 million oz 4PGE attributable; 6.4 million oz attributable reserves • Experienced Management Team with Significant Technical Expertise • Attractive Valuation • US$11/oz of 4PGE Measured and Indicated resources • US$31/oz of 4PGE Proved and Probable reserves

More Related