corporate presentation q1 2018 - jangadamines.com · presentation as advice ... the republic of...

Jangada Mines PLC Corporate Presentation Q1 2018

Developing the PedraBrancaPGM/Polymetallic Project in Brazil

Corporate Presentation

Q1 2018

1


DISCLAIMER & FORWARD-LOOKING STATEMENTS

The information contained in this document (the “Presentation”) has been prepared by Jangada Mines plc (the “Company”) solely for informational purposes. It is subject to material updating,

completion, revision, verification and further amendment.

This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as amended (“FSMA”). This Presentation does not

constitute, and the Company is not making, an offer of transferable securities to the public within the meaning of sections 85B and 102B of FSMA. The Presentation is simply a summary of the assets of

the Company but existing and prospective investors should rely only on the Admission Document (whic hcan be found on the investor page of the website) and must rely on their own examination of

the legal, taxation, financial and other consequences of an investment in the Company, including the merits of investing and the risks involved. Prospective investors should not treat the contents of this

Presentation as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning any acquisition of shares in the Company.

Certain of the information contained in this Presentation has been obtained from published sources prepared by other parties. Certain other information has been extracted from unpublished sources

prepared by other parties which have been made available to the Company. The Company has not carried out an independent investigation to verify the accuracy and completeness of such third party

information. No responsibility is accepted by the Company or any of its directors, officers, employees or agents for the accuracy or completeness of such information.

The securities mentioned herein have not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under any U.S. State securities laws, and may not

be offered or sold in the United States of America or its territories or possessions (the “United States”) unless they are registered under the Securities Act or pursuant to an exemption from or in a

transaction not subject to the registration requirements of the Securities Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States, or distributed, directly or

indirectly, in the United States, or to any "US person" as defined in Regulation S under the Securities Act of 1933, including US resident corporations or other entities organised under the laws of the

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All statements of opinion and/or belief contained in this Presentation and all views expressed represent the directors’ own current assessment and interpretation of information available to them as at

the date of this Presentation. In addition, this Presentation contains certain "forward-looking statements", including but not limited to, the statements regarding the Company’s overall objectives and

strategic plans, timetables and capital expenditures. Forward-looking statements express, as at the date of this Presentation, the Company’s plans, estimates, forecasts, projections, opinions,

expectations or beliefs as to future events, results or performance. Forward-looking statements involve a number of risks and uncertainties, many of which are beyond the Company’s control, and there

can be no assurance that such statements will prove to be accurate. No representation is made or assurance given that such statements or views are correct or that the objectives of the Company will

be achieved. The reader is cautioned not to place reliance on these statements or views and no responsibility is accepted by the Company or any of its directors, officers, employees or agents in respect

thereof. The Company does not undertake to update any forward-looking statement or other information that is contained in this Presentation. Neither the Company nor any of its shareholders,

directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in

respect of, the accuracy or completeness of the information contained in this Presentation or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss,

howsoever arising, from the use of this Presentation.

Neither the issue of this Presentation nor any part of its contents is to be taken as any form of contract, commitment or recommendation on the part of the Company or the directors of the Company

to proceed with any discussions or negotiations with any prospective investors. The Company reserves the right without any notice or liability to the recipient of this Presentation or its advisers to: (i)

change any of the procedures, timetable or requirements or terminate negotiations at any time prior to the signing of any binding agreement with investors; (ii) provide different information or access

to information to different persons; (iii) agree variations to the property, rights and liabilities comprised in the Company; and (iv) negotiate at the same time with more than one person. In no

circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. This Presentation should not be considered

a recommendation by the Company or any of its affiliates in relation to any prospective acquisition of shares in the Company. No undertaking, representation, warranty or other assurance, express or

implied, is made or given by or on behalf of the Company or any of its affiliates, any of its directors, officers or employees or any other person as to the accuracy, completeness or fairness of the

information or opinions contained in this Presentation and no responsibility or liability is accepted for any such information or opinions or for any errors or omissions.

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Jangada Mines PLC Corporate Presentation Q1 2018Jangada Mines PLC Corporate Presentation Q1 2018

DON’T LOOK ELSEWHERE

SCOPING STUDY Confirmed potential for open pit, low capex and low opex operation with a potential IRR of 80%+ and 1.3 year payback

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AIM Listed Company Developing the Pedra BrancaPGM/Polymetallic Project in Brazil

PGM PROJECT Defined resource of ~1 million ounces of PGM + Au with high palladium content

EXTENSIVE ASSET3 mining licences (trial application) & 43 exploration licences covering an area of 50,000 hectares with low development risk due to previous exploration work totalling +US$35 million

POLYMETALLIC OPPORTUNITIESWider work/evaluation has highlighted significant wider polymetallic opportunities particularly in chrome, copper, cobalt and nickel

UNLOCKING NEW POTENTIALExploration focus on unlocking newly identified mineral inventory including vanadium and titanium

EXPERIENCED MANAGEMENT Extensive, proven track record and project experience

STRONG MARKET FUNDAMENTALS For all commodities particularly technology metals



WE’VE DONE IT BEFORE AND WE’RE DOING IT AGAIN

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Extensive Experience & Proven Track Record in Funding & Developing Projects in South America

Brian McMasterExecutive chairman

Brian is a member of the Institute of Chartered Accountants with 20 years’ experience in corporate

reconstruction and turnaround and performance improvement. This includes numerous large mining reorganisations and turnarounds, and he has been instrumental in the recapitalisation and listing of more than 15 companies on the ASX, TSX and AIM. His experience includes working in the United States, South America, Asia, and Australia.

Heinrich Muller

Chief Operating Officer

Heinrich was the MD of the PedraBranca PGM project for three years from 2012 on behalf of Anglo American Platinum, where he had been an employee for 10 years. Most recently, he was involved in the exploration, commissioning and profitable operation of open pit, oxide PGM mines on the Bushveld Complex in South Africa. He has extensive knowledge in the geology, mining, and processing of platinum-nickel-copper-chrome deposits. Heinrich has permanent residency status in Brazil, is fluent in Portuguese and understands the Brazilian operating environment.

Nick von Schirnding

Non-Executive Director

Nick has over 25 years' experience in the mining sector across a number of geographies. He was CEO of Asia Resource Minerals plc, a FTSE listed mining company. Prior to this Nick was a senior executive with Anglo American plc and De Beers. Nick is a director of Arc Resources, a UK listed mining company and chairman of FodereGroup, a private company that has developed technology to extract high value minerals from ore.

Luis Castro


Louis is a Chartered Accountant and fellow of The Institute of Chartered Accountants in England and Wales. He has over 30 years’ experience in corporate finance in the City, in particular with companies in the mining and oil and gas sectors. He has advised companies on all aspects of IPO’s, fund raisings, restructurings, M&A, contested bids and day to day corporate issues. Most recently he was CFO at AIM quoted Eland Oil & Gas and before then he was Managing Director at Northland Capital Partners.

Luis Azevedo


Luís is a geologist and lawyer with more than 25 years of business and mining experience in Brazil. He is an independent director of Brazil Minerals, Avanco Resources, Talon Metals and Harvest Minerals. He is the Managing Partner at FFA Legal, a legal firm he founded in Rio de Janeiro, Brazil, which is focused solely on natural resources companies. His practice is highly active in M&As for companies owning mineral assets and or operating mining enterprises in Brazil. His experience spans base metals, industrial minerals, diamonds, & precious metals.


PGMs – THE MARKET IS STRONG

Refined production supply 2017

Total Mining Supply

1,485koz

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

South Africa

Zimbabwe

North America

Russia

Other

Total Mining Supply

2018 Forecast: Falling Supply YoY

2018f 5,855 2017f 5,935

Jewellery 33%

Automotive 43%

Medical and

Biomedical 3%

Glass 2%

Electrical 2%

Petroleum 1%

Chemical 7%

Other

5%

Investment 3%

Industrial 21%

End uses 2017

South African Supply Pressure & Changing Demand

South Africa 74%

Zimbabwe 6%

North America 7%

Russia 13%

Source: World Platinum Investment Council


THIS IS NOT FAKE NEWS

335

1.47

0.0

0.5

1.0

0

200

400

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mine closures

Partial closures

Shaft delays

Cum. Pt (rhs)

Mothballed existing and future platinum capacitykoz moz

1.5

Largestannual

adjustment since 2008

Pt

Mine closures 1 moz

Partial closures 465 koz

Shaft delays 550 koz

PGM supply/demand Differential is Driving the Market

Source: World Platinum Investment Council


MORE GOOD STUFF

“As early as 2020, when EVs would still make up only 2% of new vehicle sales, related metal demand already becomessignificant, requiring an additional 390,000 tonnes of copper, 85,000 tonnes of nickel and 24,000 tonnes of cobalt per year”

Glencore, 2017

Estimated Increase in Demand over Next DecadeMining Technology, 2017

688%

Copper

Nic

kel

50%

Co

ba

lt

200%

Co

pp

er

Positive Market Dynamics for Polymetallic Portfolio

Generation and grid infrastructureKt 2020 2025 2030Cu 40 170 536

Grid storage

Kt 2020 2025 2030Cu 40 170 536Ni 20 71 150Co 7 26 55

Charging infrastructure

Kt 2020 2025 2030Cu 23 115 392

Non-ICE vehicles

Kt 2020 2025 2030Cu 304 1068 2972Ni 66 299 985Co 17 80 259

Total

Kt 2020 2025 2030Cu 391 1439 4080Ni 86 370 1135Co 24 106 314

CRU ‘Energy Furtures’, 2017


JUST THE FACTS

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Unique PGM Project with Polymetallic Upside in Supportive Jurisdiction

Country

Brazil - established, transparent, & reliable mining code favourable to mining operations & investment

Location

280km SW from the port city of Fortaleza on a paved highway

Project Area

50,000 hectares, including 3 mining licences covering 52% of the current resource & 43 exploration licences with environmental permitting

Target Areas

11 targets with confirmed PGM, chrome, nickel, cobalt & copper mineralisation – focus on Curiu, Esbarro, Cedro & Trapia

Mineralisation

Multi commodity basket with mineralisation at surface with grades including 803kt & 1.5Mt @ 2.84g/t PGM

Infrastructure

Excellent infrastructure & accessible power & water

Support

Viewed as a regional economic driver for State Government


IF YOU’VE GOT IT, FLAUNT IT

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Primed For Rapid Development

Extensive Understanding

• +US$35 million spent by previous owners

• >30,000 metres drilled to date at a drill spacing of 25-40 metres

• Metallurgical & geophysical studies completed

Strong Demand Fundamentals

• Global platinum production decreasing while demand increasing

• Trending palladium rich deposit

• Continual growth forecast for technology metals

Simple Operation

• Estimated low cost, open pit production given surface deposits

• Circa 52% of current JORC resource contained within current mining licenses

• Uncomplicated metallurgy

Stable Location

• Mining friendly jurisdiction

• Politically stable country with reliable and secure licencing and labour laws

• Ready access to infrastructure and port facilities



CHECK OUT THIS SCOPING STUDY

• Potential IRR of 80% & payback period of 1.3 years

• Low capex of US$38.4m for mine construction, processing

plant and associated infrastructure

• Potential 13-year life-of-mine at 1.1Mt per year with low

1.07 strip ratio producing 35,000 ounces PGM+Au p.a

• Multi-commodity ore suite, mined at an average grade of

1.22 g/t PGM+Au + by-products yields NPV of US$158.4m

at 10% discount rate

• 14.3Mt of run-of-mine ore to sustain shallow, open-pit

mine with conventional sulphide flotation plant producing

a saleable multi-element concentrate

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Robust, Shallow, Open Pit Operation with a Low Capex/Low Opex, Yielding Attractive Returns & Short Payback Period


IT’S A KIND OF MAGIC

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PGM+Au:~1 million ounces of including 2.5g/t

palladium equivalent

Rhodium: Potentially consistent mineralisation

Nickel: 109Mlbs grading 0.214%

Copper: 23Mlbs grading 0.045%

Chrome:600kt grading 5%

Cobalt:6.4Mlbs grading 0.013%

Vanadium:Grades in outcrop samples from five

locations average 0.33%

Titanium:5.0%

Iron:53%

“One of the best undeveloped PGM projects in the Western Hemisphere.”

“Platinum-nickel-chromium deposits: geology, exploration and reserve base.”*

*Published by Elsevier in new (2017) scientific book by Emeritus Scientist S.K. Haldar

PRECIOUS TECHNOLOGY OTHER


PFS UNDERWAY

12Jangada Mines PLC Corporate Presentation Q1 2018

Conversion of Resources to

Reserves

Updated Economic

Assessment

Upgrading of Mine Design and Production Schedule

Flotation Optimisation

PGM, Chrome and Gold Magnetic

Separation

Chrome Spiral Separation

Flowsheet Design

Completed Underway


WE’VE BEEN BUSY…

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A Value Disconnect?

June 17Listed on AIM

July 17Confirmed JORC

compliant nickel & copper resource

August 17Confirmed JORC compliant cobalt

and chrome resources

October 17Moved 77% of resources into measured &

indicated categories

October 17Finalised scoping

study - potential for low capex/opex

operation with IRR of 80%+

October 17Identified high-

grade vanadium-titanium-iron mineralisation

December 17Received local government

approval for pilot production

6.0

5.5

5.0

4.5

4.0

Jul 2

01

7

Se

pt

20

17

No

v 2

01

7

Jan

20

18

Mkt. Cap £9.9m

Mkt. Cap £8.9

Jangada Mines PLC Corporate Presentation Q1 2018Jangada Mines PLC Corporate Presentation Q1 2018Jangada Mines PLC Corporate Presentation Q1 2018

NOW THIS IS A PROJECT

HIGHLY PROSPECTIVE

EXTENSIVE LICENCES

TRENDING METALS

ROBUST ECONOMICS

INFRASTRUCTURE

BLUE-SKY

STRONG TEAM

VALUE TRIGGERS

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~1 million ounces PGM+Au resource covers 52% of the licence areas

Highly prospective & opportunity to expand JORC resource significantly

Technology metal credits greatly improve economic potential

Scoping Study – NPV $158m IRR 80%+, payback 1.3 yrs, low capex/opex

Established providing easy access

High-grade vanadium-titanium-iron mineralisation identified

Mining, in-country & capital markets experience

PFS completion Q1 2018


APPENDIX - CURRENT RESOURCE INVENTORY

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30,000 Metres of Diamond Core Drilling, Geophysical Surveys & Metallurgical Tests


CONTACTS

ST BRIDES PARTNERS LTD3 St Michael’s AlleyLondonEC3V 9DS+44 (0)20 7236 1177

Postal AddressLevel 2, 34 Dover Street London W1S 4NG

Registered Address5 Fleet PlaceLondonEC4M 7RD

[email protected]

JANGADA MINES PLC

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corporate presentation q1 2018 - jangadamines.com · presentation as advice ... the republic of...

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