investment presentation mineral & financial investment limited · 2019-08-08 · mineral &...

Mineral & Financial Investments LimitedA mining finance company

M&FI

Investment Presentation

Mineral & Financial Investment Limited

Investing with Intelligence

May 31, 2019 Mineral & Financial Investments Ltd. 1


M&FI

DISCLAIMER – Please readThis presentation (“document”) is intended only for “sophisticated investors” outside of the USA, under the relevant definitions of Chapter 6 ASIC regulations or a “wholesale client” under Chapter 7 of the relevant ASIC regulations or “self-certified sophisticated investors” in the form of Schedule 5 Part II of the UK Financial Services and Markets Act (Financial Promotion) Order 2005 or High Net Worth individuals pursuant to the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 or holders of Financial Services licences and qualified investors under any relevant legislation in any jurisdiction. Any investment into The Company or Companies should be regarded as speculative and any investors should carefully consider their financial position with the aid of professional advisors unless they are regarded as “sophisticated investors” in the international sense of the phrase. You should seek independent legal and professional financial advice before making any investment in the Company or Companies specially to investigate any relevant regulations that may disqualify either you or this document from being distributed or perused. This document is not intended for prospective investors and does not purport to provide all of the information an interested party may require in order to investigate the affairs of The Company or Companies or referenced second or third parties. This presentation does not attempt to produce profit forecasts for The Company or Companies or referenced second or third parties and should not be relied upon as a forecast or as a basis for investment into The Company or Companies or referenced second or third parties. It may present details of scoping studies and does not present and should not be construed to present financial forecasts for potential shareholders or investors. The conclusions reached in this document are based on market conditions at the time of writing and as such may not be relied upon as a guide to future developments. The Company or Companies or referenced second or third parties does not own nor control any resources or reserves at the time of publication. The information herein is provided to recipients on the clear understanding that neither The Company or Companies or referenced second or third parties nor any of its agents or advisers takes any responsibility for the information, data or advice contained or for any omission or for any other information, statement or representation provided to any recipient. Recipients of this document must conduct their own investigation and analysis regarding any information, statement or representation contained or provided to any recipient or its associates by The Company or Companies or referenced second or third parties or any of its representatives, officers, agents or advisers. Each recipient waives any right of action, which it has now or in the future against The Company or Companies or referenced second or third parties or any of its representatives, officers, advisers or agents in respect of any errors or omissions in or from this presentation, however caused. Unless otherwise annotated or clearly independently certified by Competent Persons, potential recoverable petroleum numbers are estimates only until the prospects are evaluated further by drilling and/or seismic and may be un-risked and deterministically derived. This document is the property of The Company or Companies or referenced second or third parties and it is not authorised for distribution, copying or dissemination to the general public by any means or for any reason whatsoever by parties other than The Company or Companies or referenced second or third parties. The recipient of this presentation should take appropriate legal advice as to whether such receipt contravenes any relevant jurisdiction’s financial or corporate regulatory regimes, and, if so, immediately destroy this material or return it to the sender. Neither the ASX Limited or the AIM or the LSE or any other stock exchange or regulatory authority in any jurisdiction takes any responsibility for this document or any conclusions or information herein. As new information comes to hand from data processing and new drilling and seismic information, preliminary results may be modified. Exploration and or development or production programmes which may be referred to in this document are subject to several contingencies inclusive of force majeure, access, funding, appropriate crew and equipment and may not have been approved by and relevant Joint Venture partners and accordingly constitute a proposal only unless and until approved. Any potential mention of listing in foreign jurisdictions or the raising of capital anywhere is subject to various contingencies inclusive of the state of the markets, commodity prices, appropriate support and the rules of the jurisdictions involved. This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of The Company or Companies or referenced second or third parties. These risks, uncertainties and assumptions include (but are not limited to) commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and any stock exchange listing rules in any jurisdiction or Financial Regulators’ rules, The Company or Companies or referenced second or third parties, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "estimate," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," "is designed to," "with the intent," "potential," the negative of these words or such other variations thereon or comparable terminology, may indicate forward looking statements. Such statements express the intentions, opinions, or current expectations of Mineral and Financial Investments Limited with respect to possible future events and are based on current plans, estimates and forecasts which Mineral and Financial Investments Limited has made to the best of its knowledge (concerning, amongst other things, the business, results of operations, financial position, prospects, growth and strategies of Mineral and Financial Investments Limited, Redcorp Empreendimentos Mineiros Lda, Ascendant Resources, Cap Energy, Golden Sun Resources, Cerrado Gold and/or any of our investee companies, but which do not claim to be correct in the future. Due to various risks and uncertainties, actual events or results or actual performance of Mineral and Financial Investments Limited may differ materially from those reflected or contemplated in such forward- looking statements. No assurances can be given that the forward-looking statements in this announcement will be realised. As a result, recipients should not rely on such forward-looking statements. Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found:

• under "Forward-looking statements" and "Risk management" in the Mineral and Financial Investments Limited’s annual report for the year ended June 30, 2018; and • under "Other Information - Forward-Looking Statements" in Mineral and Financial Investments Limited's trading update for the quarter ended 31 March 2018.

Subject to compliance with applicable law and regulations, Mineral and Financial Investments Limited undertakes no obligation to update these forward-looking statements. No representation or warranty is made as to the reasonableness of such forward-looking statements. No statement in this document is intended to be nor may be construed as a profit forecast for any period and no statement should be interpreted to mean that profit, EBITDA, earnings, free cash flow or any measure thereof will necessarily be greater or lesser than those for preceding financial periods. • On Slide 16 – Please refer to the RNS released by MAFL on April 1, 2019

• On Slide 18 all references to “Resources” are neither JORC or 43-101 compliant• On slide 20 all comments and estimates are from Golden Sun and the previous owners of the Bella Vista Mine all are available from publicly available sources.

May 31, 2019 Mineral & Financial Investments Ltd. 2


M&FI

A Mining Investment, Finance & Advisory Company• M&FI is an investment company focusing on natural resources and specifically Metals and Mining

• M&FI invests in, finances, and advises its investee natural resource companies.

• M&FI makes strategic investments as well as tactical (i.e. short term investments)

• Management and Board has 75 years’ of combined mining investment experience in:

o Investments; Corporate Finance; Mergers and Acquisitions; Strategic Advisory; Investor Relations, and; Mining / Geological expertise

• Our Capital is permanent and exacting capital, not bound by private equity exit restrictions or fund constraints.

• Interests are aligned with the shareholders of investee companies

• Redcorp investment provides excellent case study of how MAFL can realise value

• Tactical Portfolio investments are diversified and liquid as an offset to the specific risks in the Strategic Portfolio.

• Disciplined cost control, a critical necessity in a based commodity business

• Excellent investment track record: NAVPS has increased 39.3% p.a. since 31 December, 2015

Investor Presentation May 31, 2019 3Please refer to Disclaimer on Slide 2


M&FI

Investments

Investor Presentation May 31, 2019 4

Tactical Portfolio

Strategic Portfolio“Patient but demanding

capital”

PE Fund / SPV

•Capital Preservation with Reasonable Returns

•Liquid, High Quality•Multiple Asset Classes

•Pre-Production Stage•Longer Term Horizon•3-20% Equity Stake•Significant Upside Potential•Follow-On Investments •Provide Corporate Advisory

Services to Help Increase and Realize Value

•New Financial Ventures•Co-Investment•Intelligent Capital

Please refer to Disclaimer on Slide 2


M&FI

Deploy intelligent capital when few others would or could;Exit when opportune and appropriate.

Investor Presentation May 31, 2019

• Thorough due diligence (site visits, technical experts)

• Early drilling must have identified mineralization

• Be able to see a realistic path for the asset to go to production

• Invest and receive a “meaningful stake” in the business (Strategic Investments)

• Invest on private equity terms but without exit or mandate restrictions

• Have board representation, direct or indirect in Strategic Investments

• Mitigate certain risks to offset liquidity risk

• Be wholly aligned with the shareholders of the investee company helping management create long term value for shareholders

• Provide follow-on investment, financing and corporate advisory

• Monetize investment when timely and appropriate (normally after commercial production)

• Recycle capital into new investment opportunities


M&FI

Business Principles

1. We are in the business of investing capital

2. We work for our shareholders

3. We work with our investee companies

4. We will succeed only if our investee companies succeed

5. Our reputation is our calling card

6. Our Capital is permanent, but it is not patient capital

7. There is always a better and faster way to act.


Geological Assets

Human Assets

Financial AssetsWe focus on correct and prudent identification of the geological assets through rigorous due diligence. The remaining assets can be improved with our assistance.

Mining businesses are, we believe, comprised of three basic assets:



M&FI


S&P Commodity Index vs. S&P 500 Index

The Investment Opportunity

We believe that under investment in exploration has led to prolonged under performance versus equity markets. We expect a significant reversal is around the corner.



M&FI


Cash, Investments and Net Asset Value

£469,000

£943,000 £990,000£721,000 £690,755

£960,568£1,273,906

£1,601,913£1,980,061

£2,269,321

£3,679,130

4,451,810

£797,000

£636,000 £596,000

£655,000

£262,532£137,688

£273,519

£917,554£455,803

£422,307

£749,836

£401,544

£1,535,000£1,377,000 £1,380,000

£1,169,000

£908,623£1,048,858

£1,494,360

£2,443,373£2,546,875 £2,623,134

£4,392,940

£4,832,434

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

£4,500,000

£5,000,000

Dec 31,2013 June 30,2014

Dec 31, 2014 June 30,2015

Dec 31, 2015 June 30,2016

Dec 31, 2016 June 30,2017

Dec 31, 2017 June 30,2018

Dec 31, 2018 March 31,2019

Investments Cash & Cash Equivalents Net Asset Value

CAGR +33.8%

CAGR +67.2%



M&FI

Management• Jacques Vaillancourt, Chairman:

Jacques Vaillancourt has 35 years experience in global financial markets, during which time he was involved in over $35 billion of financings for the resource sector. Mr Vaillancourt is currently President of Mount Everest Finance Limited, which invests innatural resource companies. Previously, he was at HSBC as Managing Director and Global Head of Metals & Mining. From 1992 to 2009 he was at BMO Capital Markets as Managing Director and Head of European Equity Products. Additionally, he has been a sell-side analyst at RBC Capital Markets and is a graduate of McGill University. He is the chairman of Redstar Gold Corp, a TSX-listed gold exploration company.

• James Lesser, Chief Operating Officer:James "Jamie" Lesser has 20 years experience in equity capital markets, of which 15yrs focused on the resource sector. After 6yrs financing AIM juniors he spent 6yrs as Director of HSBC's Top 10 Extel Ranked Mining Team. Mr Lesser was Co-founder and Executive Director of Chalkstone Partners Ltd. which mitigates political and social risks for natural resources companies in emerging markets by improving community relations. He also runs Tono Resources Ltd., consulting to governments, NGO's and Universities on issues around Artisanal and Small-Scale Mining (ASMs). He has extensive experience in the analysis and appraisal of mining companies across the globe as corporate broker and sell-side resources specialist sales.

• Sean Keenan, Director:Sean Keenan is a geologist with 20 years of experience and a deep and wide ranging experience in mining, mineral exploration andfinance. M. Keenan has previously held roles as CEO of Pure Minerals Ltd, and General Manager of Corporate Development for Chalice Gold Ltd., both Perth-based mineral exploration companies. He spent seven years with Resource Capital Funds (RCF), one of the largest mining focused Private Equity fund management companies, and six years at BMO Capital Markets, one of the world’sleading mining investment banks, in both mining research and investment banking. Mr. Keenan has a BSc. in Geology from the University of Western Australia and MSc. from the Imperial College, Royal School of Mines. Sean is currently a director of Redstar Gold Corp, a TSX-listed gold exploration company.

• Miles Nicholson, Corporate Secretary, Administration and Finance:Miles Nicholson is a chartered accountant with more than 30 years experience in providing administrative support and advice to expanding businesses. For the last 10 years he has specialised in assisting AIM listed investment companies in the natural resources sector.



M&FI

Investor Presentation May 31-2019 10

M&FI

Cash Tactical Portfolio (M&FI’s Treasury)

Gold ETF Silver ETF

Copper ETF Platinum ETF

~3% of Ascendant Resources

(Honduras, Zinc)

Barrick Gold (Global Gold)

Trevali Minerals (Global Zinc)

Imperial Metals (Canada, Copper)

Artemis Resources (Australia, Gold &

Lithium)

Cabral Gold

(Brazil)

Avrupa Minerals (Portugal,

Polymetalic)

Alamos Gold (Canada)

Newmont

Goldcorp

Encana Corp

(E&P Americas)

Strategic Assets

(Long term Asset)

75% of Redcorp1

Lagoa Salgada (Portugal, Zinc, Lead)

1% of Cerrado Gold

(Brazil)

~3.0% Golden Sun Resources (Costa Rica,

Gold)

~2% of Cap Energy (Guinea Bissau, Senegal,

Oil & Gas)

Toro Gold

(Senegal, Mali)

New Financial Ventures

Listed Secs.

Unlisted Secs.

7.6%

22.2%

70.3%

Portfolio Allocation

Net cash

Tactical Portfolio

Strategic Portfolio

7.6%

28.1%

48.2%

16.1%

Commodity Allocations

Net Cash

Precious Metals & Secs.

Base Metals & Secs.

Energy Secs.


1 Subject to an Earn-in Agreement with Ascendant Resources


M&FI


Quarterly NAVPS & Operating Costs as % of NAV

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

31/12/2

015

31/03/2

016

30/06/2

016

30/09/1

6

31/12/1

6

31/03/1

7

30/06/1

7

30/09/1

7

31/12/1

7

31/03/1

8

30/06/1

8

30/09/2

018

31/12/1

8

31/03/2

019

NAVPS Op Costs as % of NAV (Quarterly)

CAGR 39.3%



M&FI

12

ConclusionWe Believe that M&FI Offers Investors:

1. Strong performance over 5 years. NAV is up 33.8% p.a. since Dec 31, 2013

2. Conservative financials – No debt, good cash position and strong liquidity

3. Experienced management team that are significant shareholders

4. Low operating costs

5. Strategic investment opportunities unavailable to the public markets.

6. Thorough due diligence prior to making strategic investments

7. Portfolio diversification in a volatile sector

8. A structure that allows tax efficiency of capital gains

9. The majority of our assets offer exposure to non GBP denominated assets.

10. A 36% discount to its NAV estimate of 13.56p

Please refer to Disclaimer on Slide 2Investor Presentation May 31, 2019


M&FI

13

Appendix Slides & Notes:


M&FI


Zinc Market FundamentalsInsufficient Global Zinc Refining Capacity Results in Surplus Zinc Concentrate and Tight Zinc Metal Supply

Zinc:• After declining substantially in 2016, global zinc production increased in both 2017

and 2018, reaching 13.2Mt and 13.4Mt respectively, according to mining research by Global Data.

• However, the global market still remains sluggish and has been in a severe deficit since 2016, impacted by several mine closures and production cuts over prices concerns.

• Deficits in past 5 years have driven down Zinc Inventories• LME refined zinc inventories have decreased 70,000 tonnes year-to-date in 2019 • Less than 80,000 tonnes of refined zinc remaining on LME• SHFE stocks have increased 95,000 tonnes year-to-date in 2019• Decreased Chinese refined production is increasing demand for refined imports

into China • Smelter cuts announced in Q1-2019:

o Elektrozinc Russia (80,000 tonnes): permanently closed due to safety infractions following a fire at the smelter

o Skorpion: closing for 5 weeks, strike at mine reduces oxide stockpileso Queensland Townsville zinc smelter: at risk due to flooded rail lines

• Teck originally forecast global mine production would grow 7.9% or over 800,000 tonnes in 2018

‒ Due to start up of large mines, Dugald River, Gamsberg, New Century and restarts by Glencore

• Global mine production in 2018 missed Teck’s forecast by almost 600,000 tonnes

‒ Slow or delayed start-ups at New Century, Gamsberg, and several smaller mines

‒ China originally expected to increase 250,000 tonnes contained in 2018, but now estimated to be down 150,000 tonnes contained in 2018

• Today, Teck forecasts an 8.1% increase in mine production in 2019, but significant risks continue

‒ Mine guidance has already decreased around 120 thousand tonnes in Q1 2019

‒ Queensland flooding has put several large operations there at risk of meeting 2019 guidance

‒ Chinese environmental inspections continue at domestic mines and may restrict production into H2 2019

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2017 2018 2019 2020 2021 2022 2023

ROW Others China Glencore Dugald RiverGamsberg New Century New Mines

Zinc Mine Production1

(Thousand tonnes contained)

Zinc SupplyMine Production Missed forecast in 2018

BASE METALS

8

0

500

1,000

1,500

2,000

2,500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Thou

sand

s Mt

US$D

/ Mt

LME Stocks Bonded SHFE Price

Daily Zinc Prices & Stocks1.2

(US$/lb)

10

Zinc Metal StocksConsecutive deficits decreasing zinc inventories

• Deficits in past 5 years have driven down stocks

• LME refined zinc stocks have decreased 70,000 tonnes year-to-date in 2019

• Less than 60,000 tonnes of refined zinc remaining on LME

• SHFE stocks have increased 95,000 tonnes year-to-date in 2019

• Decreased Chinese refined production is increasing demand for refined imports into China

• Smelter cuts announced in Q1 2019:‒ Elektrozinc Russia (80,000 tonnes): permanently

closed due to safety infractions following a fire at the smelter

‒ Skorpion: closing for 5 weeks, strike at mine reduces oxide stockpiles

‒ Queensland Townsville zinc smelter: at risk due to flooded rail lines

BASE METALS



M&FI


M&FI

M&FI

TH Crestgate GmbH

Ascendant Resources Inc.

Redcorp Empreedimentos

Mineiros Lda.

Lagoa Salgada Project

EDM

Q1-2019 11

Current Ownership of the Portuguese Assets

100%

75%

25%*

85% WI

15% CI/WI1

1 Awaiting approval from Portuguese government


Redcorp Empreedimentos Mineiros Lda.Lagoa Salgada – Significant Resource with Significant Upside Potential

Mineral and Financial Investments Limited

confidence in the potential to quickly increase high-grade tonnes to the known Mineral Resource. An update to the Mineral Resource Estimate is expected in January.”

He continued, “In addition to the drill program the company has completed ground and downhole IP surveys. The results from these surveys have identified a 1.6 km IP anomaly coincident with the massive sulphide mineralization intersected by the drill program from the layered massive sulphides in the northwest (Massive Sulphide Zone) to the Stockwork Zone in the southeast. The IP anomaly is also coincident with a significant regional gravity anomaly which greatly expands exploration potential to the east.”

Drill Hole Details Tables 1 and 2 below provide assay results for 9 holes in the Main Massive Sulphide Zone and 5 holes in the Stockwork Zone. Drill holes in this program were collared in an area targeting the eastern expansion of the known main volcanogenic massive sulphide mineralization contained within the current Mineral Resource Estimate as defined in the National Instrument 43-101 report dated January 5, 2018 and targeting expansion of the Stockwork Zone.

The drill holes were drilled at an angle of 60o to provide additional information of the true thickness and orientation of the ore zone. Significant thickness of gossan and massive sulphide mineralization were intersected in holes LS_MS_07, LS_MS_16 through LS_MS_20. In several of the holes, including LS_MS_07, LS_MS_16, LS_MS_18 and LS_MS_19, a second massive sulphide horizon was intersected on the west side of a major fault identifying a possible new lens.

Figure 1: Plan View of the 2018 Planned Drill Holes

Mineral and Financial Investments Limited

The IP anomaly is also coincident with the more extensive regional Bouguer gravity anomaly that stretches southeast by approximately 8km to the Rio de Moinhos Target (Figure 3), highlighting a significant number of targets for the future. Pseudosections prepared for the 2018 IP lines indicate a second target southeast of the Main Massive Sulphide Zone, near the eastern end of lines 8-10 and extending as far south as line 14. This target shows a clear association with the anomaly shown on the map of residual Bouguer Gravity. We are establishing a naming convention referring to the greater areas within Lagoa Salgada region as indicated on Figure 3. Note that the Company’s work to date has be focused within the LS West area.

Figure 3: Gravimetric Survey Map with High Bouguer Gravity Coincident with Known Mineral

Resources

Table 1: Drill Intersections Main Zone (Massive Sulphide Zone)

From To Length True

Width Cu Pb Zn Sn Au Ag Zn Eq2

(m) (m) (m) (m) (%) (%) (%) (%) (ppm) (ppm) With Sn

(%)

LS_MS_07* 168.95 300.00 131.05 106.15 0.54 2.72 3.22 0.17 0.81 77.86 11.51

including 176.00 297.00 121.00 98.01 0.58 2.89 3.42 0.18 0.87 82.95 12.24

gossan 168.95 182.15 13.20 11.35 0.06 1.00 0.23 0.35 1.73 143.08 10.32 including 176.00 181.00 5.00 4.30 0.11 1.57 0.25 0.76 3.91 324.80 21.87

1st MS 182.15 253.90 71.75 55.25 0.33 4.49 4.89 0.14 1.09 98.21 14.91 including 216.00 236.00 20.00 15.40 0.20 6.35 8.07 0.18 1.58 112.20 21.00

STKW 262.00 274.00 12.00 9.24 3.19 0.14 0.91 0.33 0.01 28.42 12.68


16

w w w . a s c e n d a n t r e s o u r c e s . c o mT S X : A S N D OTCQX: ASDRF

High-Grade Polymetallic VMS Deposit in the Prolific Iberian Pyrite Belt

Lagoa Salgada Exploration Project

• 25% interest in Redcorp with an option to increase to 80%.*

• Low-cost entry to a high-grade polymetallic VMS deposit with significant exploration upside.

• Located along the Iberian Pyrite Belt in Portugal; home to multiple world class mines that have been transformational for Lundin Mining (Neves Corvo) and Trafigura (Aguas Tenidas).

• Iberian Pyrite Belt has a long history of successful VMS discoveries demonstrating typical characteristics of VMS deposits: large in scale, multiple lenses, high-grade in nature.

• Newly updated NI 43-101 Mineral Resource Estimate demonstrates large and high-grade deposit and near-term development potential.

• High-grade polymetallic VMS deposit:

• Jurisdictional and commodity diversification in a region with strong community and government support.

*Ascendant acquired a 25% interest in Redcorp – Empreendimentoes Mineirs, LDA., which owns an 85% interest in the Lagoa Salgada Project as well as acts as the operating entity. Ascendant has an option to increase ownership to 80% upon completion of certain milestones and payments. On a pro rata basis Ascendant currently owns an effective 21.25% of the Project.

16

Zn Pb Ag Cu Sn

ALJUSTREL

NEVES CORVO

AGUAS TENIDAS

LAGOA SALGADA PROJECT

Copper-rich Iberian Pyrite Belt

RIO TINTO

GRUPO MEXICO

FIRST QUANTUM

Atlantic Copper Smelter

16

Au

• M&FI has a 75% ownership, Ascendant Resources has a 25% interest in Redcorp with an option to increase to 80%.*




• Newly updated NI 43-101 Mineral Resource Estimate demonstrates large and high-grade deposit and near- term development potential.



16












16

Zn Pb Ag Cu Sn

ALJUSTREL

NEVES CORVO

AGUAS TENIDAS



RIO TINTO

GRUPO MEXICO

FIRST QUANTUM


16

Au

16












16

Zn Pb Ag Cu Sn

ALJUSTREL

NEVES CORVO

AGUAS TENIDAS



RIO TINTO

GRUPO MEXICO

FIRST QUANTUM


16

Au

16












16

Zn Pb Ag Cu Sn

ALJUSTREL

NEVES CORVO

AGUAS TENIDAS



RIO TINTO

GRUPO MEXICO

FIRST QUANTUM


16

Au


M&FI

Investor Presentation May 2019 16

Redcorp Empreedimentos Mineiros Lda.Lagoa Salgada – Resource Estimate for the LS North, LS Central and LS South

Deposits Significant Resource with Significant Upside Potential

16


Newly Updated Large and High-Grade Resource with Significant Upside Potential Remaining

Lagoa Salgada Mineral Resource Estimate

Average GradeCategory MinZones Tonnes Zn-Eq2 Cu Zn Pb Sn Ag Au

kt % % % % % g/t g/tMeasured All Zones 1,761 11.02 0.38 3.09 3.19 0.15 62.41 0.84Indicated All Zones 6,082 7.61 0.50 2.09 1.84 0.09 48.61 0.40M + I All Zones 7,843 8.38 0.47 2.31 2.15 0.10 51.71 0.50Inferred All Zones 12,823 6.37 0.36 1.68 1.63 0.04 38.62 0.61

Average GradeCategory MinZones Tonnes Zn-Eq Cu Zn Pb Sn Ag Au

kt % % % % % g/t g/t

NorthZone

Measured Total 1,761 11.02 0.38 3.09 3.19 0.15 62.41 0.84Indicated Total 4,293 8.71 0.47 2.18 2.22 0.12 58.73 0.54M + I Total 6,054 9.38 0.44 2.44 2.50 0.13 59.80 0.63Inferred Total 7,847 7.43 0.31 1.90 2.22 0.07 50.34 0.58

SouthZone

Indicated SW2 1,789 4.99 0.58 1.88 0.95 0.00 24.33 0.07Inferred SW2 3,899 4.50 0.52 1.65 0.89 0.00 22.36 0.06

Central Zone Inferred Total 1,078 5.41 0.11 0.17 0.06 0.00 12.15 2.89

Total Mineral Resource Estimate – Effective February 8, 2019

Mineral Resource Estimate By Zone

Notes:(1) Mineralized Zones, GO=Gossan, MS=Massive Sulphide, SW=Stringer, SW2=Stockwork(2) Cut-off: Zn-Eq ≥ 3.00%(3) Zn-Eq = [Zn%]+([Cu%]*2.652)+([Pb%]*0.913)+([Au g/t]*1.585)+([Ag g/t]*0.025)+([Sn%]*7.565)(4) Densities: GO = 3.11, MS = 4.85, SW = 2.91, SW2 = 2.91(5) The Mineral Resource content for Lagoa Salgada was completed and approved by Charlie Murahwi, M.Sc., P.Geo., Pr. Sci. Nat., FAusIMM, Senior Geologist, Micon International Ltd.

16


Newly Updated Large and High-Grade Resource with Significant Upside Potential Remaining

Lagoa Salgada Mineral Resource Estimate

Average GradeCategory MinZones Tonnes Zn-Eq2 Cu Zn Pb Sn Ag Au

kt % % % % % g/t g/tMeasured All Zones 1,761 11.02 0.38 3.09 3.19 0.15 62.41 0.84Indicated All Zones 6,082 7.61 0.50 2.09 1.84 0.09 48.61 0.40M + I All Zones 7,843 8.38 0.47 2.31 2.15 0.10 51.71 0.50Inferred All Zones 12,823 6.37 0.36 1.68 1.63 0.04 38.62 0.61

Average GradeCategory MinZones Tonnes Zn-Eq Cu Zn Pb Sn Ag Au

kt % % % % % g/t g/t

NorthZone

Measured Total 1,761 11.02 0.38 3.09 3.19 0.15 62.41 0.84Indicated Total 4,293 8.71 0.47 2.18 2.22 0.12 58.73 0.54M + I Total 6,054 9.38 0.44 2.44 2.50 0.13 59.80 0.63Inferred Total 7,847 7.43 0.31 1.90 2.22 0.07 50.34 0.58

SouthZone

Indicated SW2 1,789 4.99 0.58 1.88 0.95 0.00 24.33 0.07Inferred SW2 3,899 4.50 0.52 1.65 0.89 0.00 22.36 0.06

Central Zone Inferred Total 1,078 5.41 0.11 0.17 0.06 0.00 12.15 2.89

Total Mineral Resource Estimate – Effective February 8, 2019

Mineral Resource Estimate By Zone

Notes:(1) Mineralized Zones, GO=Gossan, MS=Massive Sulphide, SW=Stringer, SW2=Stockwork(2) Cut-off: Zn-Eq ≥ 3.00%(3) Zn-Eq = [Zn%]+([Cu%]*2.652)+([Pb%]*0.913)+([Au g/t]*1.585)+([Ag g/t]*0.025)+([Sn%]*7.565)(4) Densities: GO = 3.11, MS = 4.85, SW = 2.91, SW2 = 2.91(5) The Mineral Resource content for Lagoa Salgada was completed and approved by Charlie Murahwi, M.Sc., P.Geo., Pr. Sci. Nat., FAusIMM, Senior Geologist, Micon International Ltd.



M&FI


Ascendant Resources (ASND- TSX)3


Why Ascendant Resources?A Compelling Investment Opportunity

A Unique Zinc Opportunity

Long-Term Low Cost Producer

Multiple Avenues for Growth

• The only pure-play junior zinc producer in a tight zinc market

• 2018 Cost Guidance US$70-80/t

• Organic growth opportunities at El Mochito with accretive growth opportunities like Lagoa

Deeply Discounted to Peers• Undervalued vs peers: EV/EBITDA & P/NAV

The only junior pure-play

ZINC PRODUCERExploration Upside Potential• Lagoa Salgada high-grade polymetallic VMS project

in the Iberian Pyrite Belt • El Mochito potential as yet untested

7


Opportunity for Robust Growth and Expansion of El Mochito

Expansion & Optimization PEA Highlights

Table of Key Project Highlights

Project IRR after taxes & royalties 58%

Project NPV (8%) after taxes & royalties $83.0 million

Project undiscounted after-tax cash flow $146.5 million

Project construction period 2 years

Project payback period 2 years

Life of mine (including current operations) 10 years

Average annual ZnEq metal production (rounded) 120 million lbs

Project development capital expenditures $32.8 million

LOM sustaining capital expenditure (excluding closure) $129.7 million

Average annual operating costs after construction $61.85/t milled

Average annual operating costs after construction

$0.58/lb ZnEqPayable

Average annual AISC after construction $0.97/lb ZnEqpayable

Three Key Areas of Focus:

Mining Operations Expansion:• 26% increase in contained metal

production.

• new subvertical shaft for increased hoisting capacity and significantly shortened hauling distances.

Processing Plant Upgrades:• 27% increase in processed tonnes to

2,800 tpd.

• Upgrades made to the crushing circuit, process plant and tailings handling to meet increased production.

Improved underground water management system:• Upgrade to a new underground

pumping and water management system will have a significant positive impact on cost structure.

Note: Based on metal price assumptions of $1.21/lb zinc, $1.09/lb lead and $15/oz silver.


8


Operating ResultsContinuous Improvements in 2018 at El Mochito to Drive Robust 2019

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Contained Zinc Production (lbs) Contained Lead Production (lbs)

Zinc Equivalent Production (lbs) Direct Operating Costs $/t Ore Milled

38% Increasein contained metal production for 2018 of 91.4 million ZnEqlbs vs 2017

2019 Guidance10% mean increase from 2018

90 - 110 million ZnEq lbs of contained metal production

Record Gradeof 7.0% ZnEq achieved in Q4 2018

Higher grades to drive production increase in 2019

5


Zinc-Lead-Silver Mine

Flagship El Mochito Mine

• 100% owned underground mine.

• Continuous operation since 1948 producing 27+ million tonnes ZnEq over its lifetime. (~8 million ozsAuEq)

• 2018 production of +91 MM lbs ZnEq. 2019 guidance of 90-110 MM lbs ZnEq.

• Significant Mineral Resource base with deposits remaining open in most directions.

• 11,000 ha land package; ~150 ha mined with majority unexplored.

• Secure 8-year offtake agreement in place with Nyrstar N.V.

Typical NSR breakdown:

Zn 70% Pb 20% Ag 10%

6


Operating In HondurasLas Vegas, Honduras

El Mochito Mine, Honduras ( 100% )

Underground Zn/Pb/Ag mine on an 11,000 hectare land package, operating since 1948

Country Snapshot• El Mochito represented ~3% of exports in 2014. The

mining industry (2 mines) represented 4% of GDP in 2015.

• S&P Honduras’ credit rating BB- with positive outlook.

• Overwhelming local community support.

• Business friendly jurisdiction with a long history of mining.

• Stable democratic constitution; Incumbent President re-elected in 2017.

• Decentralized government; municipalities have autonomy.

• Solid infrastructure; 2 hour drive from San Pedro Sula.

• 25% Corporate Tax Rate + 5% NSR ($53MM in tax losses available for 2018/2019).


M&FI

3CAP Energy

The Company

The Assets

§ Exploration portfolio focused on North-West African Atlantic Margin:

§ 24% working interest in shallow water Block 1, Guinea-Bissau

§ 27% working interest in deepwaterBlock 5B, Guinea-Bissau

§ 44.1% working interest in shallow water Block Djiffere, Senegal

§ Focused on exploration and production of conventional hydrocarbons in sub-Saharan Africa

§ Dynamic management team with +60 years experience operating in Africa

§ First mover in the prolific MSGBC Basin in 2013

§ Headquartered in London & regulated in the UK

§ Incorporated in 2005

Overview

Investor Presentation May 31, 201918

Cap Energy (Unlisted)Regional Overview – MSGBC Basin

9CAP Energy

FAN-1950 MMbbls STOIIP

CAP Energy

CAP Energy

SNE-12C 543 mmbbls

Dome Flore1 billion bbls STOIIP

Sinapa170 MMbbls STOIIP

Senegal

Guinea-Bissau

Mauritania

Tortue-115 Tcf gross

Marsouin-170m net gas pay

Ahmeyim-278m net gas pay

SNE-2DST: 8,000 bopd

SNE-3DST: 5,400 bopd

BEL-1Positive E&A results

Teranga-131m net gas pay

Kosmos Energy/BP – Mauritania/Senegal ² BP farms into 6 exploration blocks offshore Mauritania &

Senegal – first supermajor entry into the basin

² 100% success rate in 6 consecutive wells drilled by Kosmos offshore Mauritania & Senegal

Cairn Energy/Woodside Energy – Senegal² SNE-1 is the world’s largest discovery in 2014² 100% success rate in 9 consecutive E&A wells drilled

CNOOC – AGC (Senegal/Guinea-Bissau)² CNOOC completes farm-in as operator of Impact Oil’s

AGC Profond licence offshore Senegal & Guinea-Bissau

Total – Senegal/Guinea-Conakry² Total acquires operatorship of 2 deep & ultra-deep

exploration blocks offshore Senegal with NOC Petrosen² Technical Evaluation Agreement with NOC ONAP, to study

deep & ultra-deep areas offshore Guinea-Conakry

ExxonMobil/Shell – Mauritania² Exxon acquires 3 deepwater exploration blocks ² Shell is latest Basin entrant with acquisition of 2 offshore

exploration blocks

Yakaar-145m net gas pay

FAN South-131�API oil

Guinea-Bissau: Block 5B

14CAP Energy

Guinea-Bissau27% interest inBlock 5B

Operator: Trace Atlantic Oil

LicenceParticipants

Equity Interest

Cost Interest

Trace Atlantic Oil (operator) 58.5% 65%

CAP Energy 27% 35%

Petroguin (NOC) 10% -

SPQSC 4.5% - (*)

Licence Summary

Operator Location Surface Area Seismic Completed Next activities

TraceAtlantic Oil Limited

Offshore in 200 –4,000 metreswater depth

5,500 km2

• 1,900 km vintage 2D survey • 1,530 km new 2D survey

(2011)• 1,500 km 2D infill survey

(2013)• 2,871 km2 3D survey (2014)

• Drilling of 1 exploration well

(*) carry limited to the 2D and 3D seismic surveys

7A

Block Company

1 CAP Energy, Trace

2 Svenska, FAR

4A Svenska, FAR

4B Bissau Exploration

5A FAR, Svenska

5B CAP Energy, Trace

6A Larsen Oil and Gas

6B Larsen Oil and Gas

7A Supernova Energy

7B Sonangol

X* Oryx Petroleum

Y* Oryx Petroleum

Z* CNOOC, Impact

* Located in AGC (Joint Administration Zone between Senegal & Guinea-Bissau)

Senegal: Block Djiffere

21CAP Energy

Senegal44.1% interest inBlock Djiffere

Operator: Trace Atlantic Oil

Block Company

A BP, Kosmos Energy

B African Petroleum

C T5 Oil & Gas

D Tender Group

E BP, Kosmos Energy

G Africa Fortesa

H Africa Fortesa

I A-Z Petroleum

J Total, Petronas

K Cairn, Woodside, FAR

N Tender Group

O Cairn, Woodside, FAR

P CAP Energy

R Elenilto

LicenceParticipants

Equity Interest

Cost Interest

Trace Atlantic Oil (operator) 45.9% 51%

CAP Energy 44.1% 49%

Petrosen (NOC) 10% -

Licence Summary

Operator Location Surface Area Seismic Completed Next activities

TAOL DjiffereLimited

Offshore in 0-250metreswater depth

4,459 km2

• 3,750 km new 2D survey acquired (2014); processing & interpretation complete

• 380 km2 new 3D survey (2015); processing & interpretation complete

• Drilling of 1 exploration well

BD

H



M&FI

www.cerradogold.com 4

Monte do Carmo Project: Location Map

Concessions:

2km from Monte do Carmo(pop. 6,700)

40km from Porto Nacional (pop. 52,000)

100km from Palmas(pop. 265,000)

19

Cerrado Gold (Unlisted)


Monte do Carmo Project

Monte do Carmo town with the Serra Alta deposit in the background.


Complete restart by Cerrado using best practice principles since September 2017:

• Mapping, sampling, channel sampling and definition drill of 75 holes totaling approx. 10,000 metres completed.

• Compilation, evaluation and adaptation of extensive historical data base.

• Implementation of rigorous QA/QC protocols and procedures.

Geological Resource (Non NI 43-101 compliant):

WHY CERRADO GOLD?

Serra Alta Area581,470oz @ 2.07

Giant Quartz Veins134,273 oz @ 1.46 g/t

YE 2018: 2.5MM oz @ 2.5 g/t

Long-term: Volumetric +5 million oz


Serra Alta: Mineral Resources 24/08/2018

Perspective Serra Alta

**SG - 2.6

***Oz - 31.1035g

Total up to 180m search range

Cut-off

(g/t)Tons Au g/t Oz

0.5 8,748,810 2.07 581,470

Non NI 43-101 compliant

Investor Presentation May 31, 2019 Please refer to Disclaimer on Slide 2


M&FI


Golden Sun Resources (Unlisted)

BellaVista mine

Summary of Investment

• Golden Sun’s Bellavista Mine is permitted and expected to be in production in Q3-2019

• Most recent historic resource estimate of about 1.0 million ounces of gold (22Mt @ 1.46g/t Au)

• The Bellavista Mine produced gold at an annual rate of about 50,000 oz p.a in 2005-2007 period.

• Investment valuation a very attractive $8/ounce of in-situ gold resources

• Highly attractive convertible terms: 20% interest rate, five-year term and secured

• Board and management team, with high levels of experience and significant investments in Golden Sun, pursuing a prudent, gradual, self-financing production expansion plan.

Country Property Descriptive Ore (T) Descriptive NotesGrades Au (gr/t)

In-Situ Au (oz)

Costa RicaBellavista (31/12/15) Proven 8,410,500 (@ 0.5g/t Cut-off) 1.46 394,790

Costa RicaBellavista (31/12/15) Probable 1,139,500 (@ 0.5g/t Cut-off) 1.81 66,311

Costa Rica Bellavista Measured 7,005,000

Measured (excludes Proven & Probable) 1.19 268,007

Costa Rica Bellavista Indicated 4,111,300

Indicated (excludes Proven & Probable) 1.16 153,330

Costa Rica Bellavista Inferred 4,248,000

Inferred (0.5g/t Cut-off) (excludes

Proven & Probable) 1.68 229,448

Costa Rica BellavistaInferred on Leach pad 3,000,000

Estimated on Leach Pad 0.85 81,984

24,914,300 Average Grade: 1.39 1,111,886

Historic Resource summary and description (Non-JORC Compliant)

Mine Site, Buildings and equipment

PHASE 1 (Q3-2019): • High grade (+8 g/t) ores vat leached in

a bank of 2 large concrete cells (1,000 t/cell) to generate early cash flow

• Small-scale 12,000 t.p.a. leaching capacity. We expect this layout can deliver gold production of 2,700 oz p.a.

• Partially leached ore stockpiled for future milling.

• Phase 1 production expected to generate cash flows to finance future development phases.

PHASE 2: • Potentially expand production to

12,000 oz p.a. via open pit mining and additional leaching capacity.

PHASE 3:• Potentially expand underground

mining and install a CIL/Merrill Crowe processing plant;

• Undertake Montezuma exploration less than 500m from the Bellavista Processing plant;

PHASE 4:• Undertake a feasibility study to build a

3,500 tpd mine/mill complex as per the original operating capacity in 2007.

• Estimated potential annual production of 45,000 oz p.a.

• Expand exploration footprint, seek acquisition opportunities and custom milling opportunities elsewhere in Costa Rica that may supplement ore feed.

Planned Expansion Phases


investment presentation mineral & financial investment limited · 2019-08-08 · mineral &...

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