reservoir capital corp. corporate.pdf · 2015. 2. 4. · •aleksandar obrenovic, director see...

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TSX-V: REO November 2014 Reservoir Capital Corp. www.reservoircapitalcorp.com

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Page 1: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

TSX-V: REO November 2014

Reservoir Capital Corp.

www.reservoircapitalcorp.com

Page 2: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Forward Looking Statements

This presentation contains forward-looking statements and factual information that are current as of the date the presentation was originally delivered. Reservoir Capital Corp., and its subsidiaries disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future development activities, expenditures, permitting, and requirements for additional capital and access to data.

Forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks related to actual results of project development activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of projects; future prices of electricity; accidents, labor disputes and other risks of the power industry; ability to obtain financing; and delays in obtaining governmental approvals of financing.

Page 3: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Company Overview

• Reservoir Capital is a renewable energy and green technologies development business focused on projects in southeast Europe

• The Company’s flagship investment is the 59MW Brodarevo hydroelectric project in Serbia, for which positive feasibility studies were completed in 2012

• Going forward the Company has entered into agreements to participate in recycling and waste to energy projects in Italy

Page 4: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Projects Portfolio

– Brodarevo 59.1 MW hydroelectric power project on the River Lim in Serbia

• Feasibility study completed in 2012; finalizing permits to start construction

• Letter of Intent signed with Inergia (Italy) to acquire or partner to construction

– Saxa Gres ceramic tile factory in Italy (option to acquire 35% interest)

• Building up to 1,800,000 m2/yr of tiles from 2015, using a mix of clay and municipal incinerator ash waste which Saxa is paid to recycle

• Saxa also hold patented technology for photovoltaic roof tiles

– Saxa Energy 4.9 MW waste to energy power project in Italy (option to acquire 65% interest)

• Preparing technical and feasibility studies to install anaerobic digestors to process municipal organic waste to generate biogas

• Conversion of an existing 3.9MW natural gas fired plant to run on biogas

– Vranjska Banja 5 MW geothermal power project in Serbia

• Resource studies indicate potential for 10-20 MW

Page 5: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Brodarevo HPP - Serbia

• 59.1 MW hydroelectric development project in southern Serbia, projected to generate 230 GWh/year of electricity.

• Close to the regional transmission grid and with links to 1,000 MW subsea cable being developed to connect into the Italian grid.

• Project to be included under Serbia-Italy Bilateral Agreement with a an EU feed in tariff.

• Positive feasibility studies completed in 2012; construction permitting in the final stages.

• Project benefits to local area include:

– Low-head/low-impact hydro project with minimal social and environmental impact

– Significant investment into an economically depressed area

– Creation of up to 1,000 jobs during 5-year construction period

– Project includes upgrades to the local highway and transmission grid

– Long-term tax and royalty revenue to local government

Page 6: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Brodarevo 2012 Feasibility Study

Project MW Flow (m3/s) Head (m) Capacity

Factor GWh/year Capex (€)

Brodarevo 1 26.0 150.0 19.7 45% 103.4 71.8 M

Brodarevo 2 33.1 150.0 24.7 46% 129.1 74.0 M

Unlevered After-Tax Brodarevo 1 Brodarevo 2 Combined

Internal Rate of Return 13.14% 16.79% 15.07%

Net Present Value @ 8% (€000) 34,507 63,869 98,657

Net Present Value @ 10% (€000) 17,411 41,215 58,797

Levered After-Tax IRR NPV @ 8%

(€000) NPV @ 10%

(€000)

Combined 24.04% 101,202 71,725

Page 7: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Vranjska Banja GPP - Serbia

• Exploration permit covering 17.5km2 including hot springs and two existing geothermal wells

• Four season reservoir testing completed by the Company confirmed a 5MW resource around the existing wells

• Studies made by Geothermex (Schlumberger) on behalf of the Company indicate potential for a further 10-15MW within the permit area

• The hot springs already feed a small health spa and a market gardening operation

• The Company is working with an EU-based group to finance the development of a health and leisure complex in addition to exploiting the renewable energy potential of the reservoir

Page 8: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

• Reservoir has signed a Letter in Intent to acquire a 35% interest in Saxa Gres, a ceramic tile factory located on the A1 highway close to Rome.

• Saxa Gres is currently refinancing and refurbishing the factory to restart tile production in 2015. – Projected year 1 production 600,000 – 800,000m2 of tiles – Production from 2016 approximately 1,800,000m2 of tiles per annum

• Saxa Gres has an agreement in place with an international wholesaler covering purchase of the first three years of production.

• Agreement with Rome utility ACEA to receive 30,000t/yr of incinerator ash waste. – Ash is mixed in with the with the clay to produce tiles – Revenue stream of €2,700,000 for recycling the ash waste (€90/t) reduces production costs

• Saxa Gres Clay Pit – 17 hectare fully permitted clay pit in the same area – Clay resource to support long-term tile production – Potential landfill site to store additional ash waste

Saxa Gres Recycling - Italy

Page 9: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

• The Saxa Gres factory is also equipped to produce high quality ceramic roof tiles that can be fitted with patented photovoltaic panels

– Tiles visually unobtrusive when compared to typical solar roof panels

– Tiles generate electricity that can be consumed by the house or sold into the grid – your new roof effectively pays for itself

Saxa Gres Solar Tiles - Italy

Page 10: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

• Reservoir has signed a Letter of Intent to create a new spin-out company from Saxa Gres to develop waste-to-energy and renewable energy projects

• Reservoir will fund studies to assess the feasibility of acquiring the Saxa Gres 3.9MW power plant and anaerobic digesters to consume municipal organic waste

– Contemplates an expansion of the facility to a 4.9MW waste to energy power plant

• Once converted into a waste-to-energy operation, Saxa Energy would sell biogas, heat and electricity to Saxa Gres under long-term agreements

• Saxa Energy would also generate revenue from fees received for disposing of municipal organic waste

• It is intended that Saxa Energy will become the vehicle through which Reservoir and its Italian partners will develop a portfolio of energy assets in the region

– Various biomass, hydroelectric and waste-to-energy projects are already under investigation and negotiation.

Saxa Energy - Italy

Page 11: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Saxa Energy – Market Analysis

Municipal waste treated by method on a kg per capital basis

Source: Eurostat

Italy in comparison to its EU peer group

Includes WtE plants

Italy lags it’s peers in WtE waste treatment

EU W

aste

Gen

erat

ion

(kg

per

cap

ita)

Page 12: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Saxa Energy – Market Analysis

• EU has mandated that 50% of

municipal solid waste in Italy must

be diverted from landfills by 2020.

• Saxa Energy is located in central

Italy, which has a diversion rate of

only 32% (2012), but with one of

the largest per capita levels of

waste production.

• Location puts the WtE plant in a

unique opportunity to benefit, as

more waste has to be diverted from

landfill sites.

Located in the Sweet Spot of the Italian Market WtE Plant Location

% Diverted from landfill Per Capita Production

Source: Rapporto Rifiuti Urbani, Edizione 2013

Page 13: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Saxa Energy – Market Analysis

Waste To Energy the Favoured Alternative to Landfill

Cumulative Average Growth Rates since 2006

Landfilled -5% Incinerated 5% Biological Treatment 0% Composting 9% Recycling 11% Waste To Energy 22%

Source: Rapporto Rifiuti Urbani, Edizione 2013

• WtE is shows the strongest annual growth rates

across all current alternatives to landfill disposal.

• Waste To Energy offers both an energy return from

waste and an environmentally friendly alternative to

landfill.

0

1.5

3

4.5

6

7.5

9

10.5

MW

h (0

00’s

)

MW Thermal Generation MW Electricity Generation

• Generation from WtE

plants in Italy

quadrupled from 2001–

2011 and is projected

to increase a further

~50% by the end of

2014.

Page 14: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Saxa Energy – Market Analysis

Sector Ripe for Consolidation

60%

40%

Veolia and Sita Suez Other

60%

40%

5 Major Operators Other

7%

93%

9 Major Operators Other

Source: Rapporto Sul Recupero Energetico Da Rifiuti Urbani In Italia, March 2012

• The Italian waste market presents a high level of fragmentation with the nine

major operators handling only 7% of total volumes as at the end of 2012.

• Other EU markets show a much higher degree of concentration among operators:

Page 15: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Capital Structure – TSX-V:REO

Issued Shares * 11,868,772

Market Capitalization (at $0.40/share) $4,747,000

Options 252,000 @16.20 (Expiry Mar. 9, 2015) 44,750

@34.60 (Expiry Jan. 20, 2016) 6,000

@13.00 (Expiry Oct. 26, 2016) 7,500

@12.00 (Expiry Feb. 08, 2017) 10,000

@6.00 (Expiry Sept. 07, 2017) 173,750

Warrants 8,328,254 @5.00 (Expiry Dec. 18, 2014) 1,513,400

@5.00 (Expiry Feb. 05, 2015) 107,500

@0.15 (Expiry Jul. 09, 2019) 3,341,233

@0.15 (Expiry Aug. 01, 2019) 3,376,121

Fully Diluted Shares 20,449,026

* The Company is in the process of raising an additional $1m of working capital, through the issue of $0.40 units, each comprising a common share and a full warrant attached, exercisable into a common share for an additional payment of $0.60

Page 16: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Executive Management

• Miles Thompson, Executive Chairman – over 25 years experience natural resource project

management in oil & gas, mining and renewable energy in emerging markets.

• Miljana Vidovic, President & CEO – ex-Manager Business Development for Tractebel Engineering

(GDF Suez Group) in Southeast Europe.

• Chris MacIntyre, Vice-President, Corporate Development – ex-UNX Energy Corp., VP Corporate

Development at Reservoir Minerals Inc. and Lara Exploration Ltd.

• Aldemaro Spaccatrosi, Director Rev Italia - eingeneer with +30 years experience in finance,

international market, geo-strategic development projects, governmental advisory and

entrepreneurship.

• Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological

Survey. Responsible for the Company’s geothermal projects.

• Christina Cepeliauskas (CFO) – Certified General Accountant with more than 15 years of financial

accounting and treasury experience in the mineral exploration and mining industry. CFO of

Eurasian Minerals Inc. and Reservoir Capital Corp.

Page 17: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

• Lewis Reford, Lead Director – ex-Head JP Morgan Resource Banking, director of several

renewable energy companies.

• Mike Brown, Director – President of Argentex Mining. Ex-Development Manager Pacific Hydro,

developed 600MW in Chile.

• Winston Bennett, Director – VP Helios Energy Inc. a developer of large-scale solar energy

based systems, and formerly VP Investment Banking at Cormark Securities.

• Patrick Eve, Director – Managing Director of TranslateMedia, a language services provider, co-

founded and was Chief Operating Officer of ITC Ventures, an active Venture Capital Fund.

• Michael Winn, Director – 25 years in the natural resource sector and public markets. Director

and founder of several junior natural resource companies.

Independent Directors

Page 18: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Investment Summary

• Reservoir Capital has an established management team in Europe and an experienced board of Directors in Canada.

• The Company is moving to both realize value from and move its flagship 59MW Brodarevo hydroelectric project in Serbia into construction.

• The new investment into Saxa brings diversification for the Company into a well regulated, but growing waste to energy market in Italy.

Page 19: Reservoir Capital Corp. Corporate.pdf · 2015. 2. 4. · •Aleksandar Obrenovic, Director SEE Serbia – geologist with +20 years experience, ex-Geological Survey. Responsible for

Contact Information

Corporate Office: 501-543 Granville Street Vancouver, British Columbia Canada V6C 1X8 Phone: +1.604.662.8448 Fax: +1.604.688.1157

Vice President of Corporate Development: Christopher MacIntyre Suite 414, Sheraton Centre 100 Richmond Street West Toronto,Canada M5H 3K6 Phone: +1.416.703.0010 [email protected]

For general inquiries or questions regarding Reservoir Capital please email: [email protected]

Project Office: Viale de Monte Oppio 24/9 Rome, 00184 Italy Phone: +39 06 3105-1864