red rock resources plc
TRANSCRIPT
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RED ROCK RESOURCES plcCorporate PresentationLondon Stock Exchange AIM Listed: RRR
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DISCLAIMERThese presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of the Company and
they 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 buy securities in the Company. If any person is in doubt as to the contents of this presentation, or wishes to
obtain advice as to the investment merits of the Company’s securities, he should seek independent advice from a person who is an authorized financial services provider.
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. The information contained in these Slides and the accompanying verbal presentation is in the public domain, however no representation or warranty,
express or implied, is given by or on behalf of the Company, its 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 are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer is unlawful. The distribution of the
Slides in some jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such
restrictions.
Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that necessarily involve risks and uncertainties. Forward-looking
statements may generally be identified by the use of terminology such as “may”, “will”, ”expect”, ”intend”, “plan”, “estimate”, “anticipate”, “believe”, or similar phrases. Other than
statements of historical facts, all statements, including, among others, statements regarding the future financial position of the Company, business strategy, projected levels of
growth in its market, projected costs, estimates of capital expenditures and plans and objectives of management for future operation, are forward-looking statements. The
actual future performance of the company could differ materially from these forward-looking statements. Important factors that could cause actual results to differ materially
from these expectations including known and unknown risks. Undue reliance should not be placed on these forward-looking statements.
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A NATURAL RESOURCE
Recovery Play
Q2 ‘17 Update
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Highlights• Mining and Petroleum Assets• Focus on Near-Term Cash Generation• Diverse Commodity Exposure• Flat Cost Structure• Bottom of Cycle Opportunities Available• Well Positioned for Outperformance
PRIMED FOR GROWTH
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Ivory Coast/ Benin
Migori Gold PgtKenya
Shoats CreekUSA
Four PointsColombia
Jupiter MinesSouth Africa
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DIVERSE ASSET PORTFOLIO
Greenland
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RRR Revenue Outlook
Colombia Note
Shoats Creek
Share Buyback Feb ’17
Potential 2nd Buyback Summer ’17
Exit Planned via Sale or IPO
Jupiter Buyback/Exit
Colombia Royalty
$3M total Value
2017 Production Est: 15,000 oz
2018 Production Est: 25,000 oz
Payable to RRR Quarterly
Ongoing Disposal
$1m in Value
Interest Due May ’17
Note Due May ‘18
Interests in LM20, LM19, LM9, LM13
LM20 In Production – LM21 Planned
Additional Workovers May be Identified
MULITPLE INCOME SOURCES
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C O R P O R AT E T R A N S A C T I O N S
JVs and Partnerships
Asset Trading / Disposals
Royalties
O I L A N D G A S
Cash Generative
Onshore USA
M E TA L S A N D M I N I N G
Large Upside Potential
Multiple Commodities
JORC Resources
Blue Chip Investments
Business Model
IDENTIFY – DEVELOP - MONETISE
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Jupiter Mines
Manganese Producer – South AfricaIron Ore Assets- Western Australia
RRR: 1.2%
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Jupiter Mines• Leading Global Manganese Producer – 5th Largest• One of Largest and Shallowest Resources Worldwide • 163MT @ 37.1% Mm + Top Cut of 145MT @ 31.58%• Experienced Management Team • Simple Drill/Blast + Load/Haul Mining• 8km Private Rail Siding Loop (5mtpa) – Exports from 4 Ports
JMS Alone Supports RRR Market Cap
60 Years Life of Mine – 418Mt Resource
Reliable On Site Power Generation
Well Established Offtake ChannelsLocated in Kalahari Basin – South Africa
3MtpaProducing:
Capacity of 3.6Mtpa Production
49.9% Nstimibintle Mining 37.1%OM Holdings 13%
JMS Stake in Tshipi Mine
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Jupiter Investment
25MShares
1.2%
Stake
JMS Exploring Strategic Options
Potential IPO
Possible Disposal of Tshipi
BOAML Evaluating
£8.3M
Valuation
Initial Buyback Completed
£537k to RRR Feb ’17
Additional Buybacks Planned
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BLUE CHIP MINING ASSET
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Shoats Creek
Onshore Oil and Gas - USA
RRR: 20%WI14.4% NRI
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Shoats Creek• 1,670 acres Beauregard Parish, LA, USA• Targeting Lower FRIO Sands • Low Cost Onshore Vertical Wells • Multiple Field and Operator Issues in 2016• Management Changes at Mayan Energy plc • Renewed Development Expected
COMING INTO FOCUS
RRR Interests:1 x New Well – LM20
3 x Reentries – LM19/9/13
2 x Planned New Wells
20%WI
14.4%NRI
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Four Points Mining
Gold Producer and Toll Milling – Antioquia –Colombia
RRR: Ongoing Disposal
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Four Points Mining• High Grade Gold mine and Mill at El Limon, Colombia• Operated by Para Resources (CVE:PBR)• Ore Sourced from Mine + Regional Suppliers• Completed Upgrade Program – Mill to 200tpd+• ~1,000 oz produced in 2016• 15,000oz Targeted in 2017 and 25,000oz in 2018• RRR with $3m Royalty + $1m Secured Promissory Note
INVESTMENT PAYING OUTRoyalty Estimates to RRR2017: $227,000
2018: $401,000
2019: $580,000
Avg Grade:
8 g/t
Break Even:
$450/oz
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Other Investments
Minerals and Petroleum Exposure
Focussed on Value Creation
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Investment Overview
SIGNIFICANT UPSIDE POTENTIAL
Goldstone Resources
(AIM:GRL)
MiningMigori Gold Project
MiningIvory Coast
MiningElephant Oil
Oil & GasMelville Bugt
MiningRegency Mines
(AIM: RGM)
Mining + Oil & Gas
Projects in the Ashanti Gold Belt in Ghana
Additional Initiatives Expected
Gold1.2m Oz Gold JORC Resource
Kenyan Greenstone Belt
License Dispute in Progress
Resolution Expected Soon
GoldEarly Stage Gold Exploration
Underexplored with Huge Potential
Birmian Greenstone Belt
Gold
Onshore Exploration – Benin
Underexplored West African Transform Margin
Recent License Extension
Oil67MT Iron JORC Resource
North Greenland
Project on Care and Maintenance
IronMulti-Project Natural Resource
Developer
Investment in Horse Hill
Base Metals
Various
RRR:7.93% RRR:75% RRR:100% RRR:5.11% RRR:60% RRR:0.35%
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More Information• AIM Listed in 2004 • Spun Out of Regency Mines plc• Originally Focussed on Gold & Steel Feed• Evolved into Diversified Natural Resource Play• Market Cap of £2.8m
467,325,740 SHARES OUTSTANDING