the true depth - promoting mining investment in africa presentation march 2013.pdf · largest...
TRANSCRIPT
The true depth
of new ideas
March 2013
Forward-looking statements
Certain statements in this presentation constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable
securities laws. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Ivanplats Limited (the “Company”), or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by
the use of words such as “may”, “would”, “believe”, “plan”, “estimate”, and other similar terminology, or state that certain actions, events or
results “may” or “would” be taken, occur or be achieved.
Forward-looking statements are based on a number of assumptions that may or may not prove to be correct, and involve significant risks and
uncertainties, and accordingly should not be read as guarantees of future performance or results, and will not necessarily be accurate
indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the forward-
looking statements set forth in this presentation. These factors include, but are not limited to: (i) the matters described in the Final Prospectus of
the Company dated October 17, 2012, (the “Final Prospectus”), which includes a discussion under the heading “Forward Looking Statements”
regarding relevant forward-looking statements and the assumptions, risks and uncertainties related thereto that are important to an
understanding of the forward-looking statements included in this presentation; and (ii) those risks and uncertainties affecting the Company
which are included throughout the most recent MD&A of the Company. Investors are directed to the “Risk Factors” section of the Final
Prospectus and of the most recent MD&A of the Company, which identify in detail several of the important risks relating to the Company that
may have an impact on the forward-looking statements included in this presentation, copies of which are available on under the Company’s
profile at www.sedar.com.
The forward-looking statements contained in this presentation are based upon the Company’s current expectations and are made as of the date
of this presentation. The Company cannot assure investors that actual results will be consistent with these forward-looking statements and they
are expressly qualified in their entirety by this cautionary statements. Subject to applicable securities laws, the Company assumes no obligation
to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this
presentation.
IMPORTANT INFORMATION
This presentation relating to the Company is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to
buy securities to the public in the United States and should not be considered as a recommendation that any person should subscribe for or
purchase any securities of the Company.
For almost a generation, Ivanplats has been
effectively developing its core strengths
in Africa’s mineral fields.
Launched in 1994 as African Gold and began
exploring in South Africa.
Active in Democratic Republic of Congo
since 1996.
US$255 million from private financings
invested in projects to end of 2011.
Japanese investors, led by trading house
Itochu, invested US$290 million for a 10%
stake in the Platreef PGM Discovery
in South Africa.
18 years of company-building field experience
Exceptional exploration successes
We’ve done it once already...Oyu Tolgoi
in Mongolia now producing copper and gold
In October 2012, Ivanplats began trading on the TSX following
a successful IPO that raised CDN$306 million (US$308 million).
Total equity issued in connection with IPO was CDN$499 million
(US$501 million), including conversion into common shares
of CDN$193 million in pre-IPO bonds.
Largest Canadian mining IPO since 2010.
Successful IPO and TSX listing in October 2012
marked a new beginning for Ivanplats
Ian Cockerill Former CEO, Gold Fields Lead Independent Director
Dr. Rilwanu Lukman
Former Secretary General and President, OPEC
Oyvind Hushovd
Former CEO, Falconbridge
Guy de Selliers
Former Executive Committee, EBRD
Dr. Marc Faber
Former Director, Ivanhoe Mines
Peter Meredith
Former Deputy Chairman, Ivanhoe Mines
Cyril Ramaphosa
Deputy President, ANC; Chairman, MTN
William Hayden
Former President, Ivanplats
Charles Russell
Former President, Diamond Fields Resources
William Lamarque
Former Executive Director, Rothschild
Board of Directors
Robert Friedland,
Executive Chairman and founder
Lars-Eric
Johansson
CEO
Former Chief Financial Officer of Falconbridge, Noranda,
Kinross Gold and Boliden.
Marna Cloete
CFO
Formerly with PricewaterhouseCoopers; client base included
Rio Tinto, BHP Billiton and Harmony Gold.
Michael Gray
COO
Former President of McIntosh Engineering; experience at
Grasberg, Bingham Canyon, El Teniente and Olympic Dam.
Steve Garcia
EVP & Chief
Development Officer
Former Executive Vice President of Ivanhoe Mines;
directed construction of Oyu Tolgoi Mine (2005-2012)
David Broughton
EVP Exploration
Key participant in Kamoa and Flatreef discoveries and
Kansanshi pre-feasibility; involved in Tenke-Fungurume.
Michel Dufresne
VP Projects
Over 25 years of development and operational experience
at Collahuasi, Sudbury, Koniambo, Kidd Creek and Raglan.
Experienced management team
Platreef Project South Africa
Platreef PGE-Gold-Nickel-Copper Project
Average thickness of 24 metres @ 2 g/t 4PE cut-off.
Potential for safe, mechanized mining and significant
by-product credits.
Significant exploration upside and open along strike
for several kilometres.
Tonnage
(Mt)
4PE
(g/t)
Nickel
%
Copper
%
True
Thick-ness (m)
Contained Metal
4PE
(Moz)
Ni
(M lbs)
Cu
(M lbs)
Indicated Resource
223 4.1 0.34 0.16 24.3 29.2 1,700 800
Inferred Resource
410 3.3 0.32 0.18 18.0 44.0 2,900 1,600
Platreef 43-101-Compliant Mineral Resource, February 2013 @ 2 g/t 4PE cut-off
Note: Mineral Resources estimated assuming underground selective mining methods. 4PE = (Pt+Pd+Au+Rh).
Nominal cut-off criteria for 2 g/t grade shell is minimum 3 metres.
Bushveld Complex produces 73%
of global primary platinum production
PGE production mainly
from Merensky and UG2 reefs
Legend
Anglo Platinum
Impala
Lonmin
Other
Town / City
Smelter / refinery
100 km
PLATREEF PROJECT
~30 km Platreef
horizon dips west.
Platreef PGE-Au-Ni-Cu
mineralization
has thicknesses
up to hundreds
of metres.
Platreef licences
on Northern Limb
Key
Platreef
Ivanplats
Ivanplats JV
City
Anglo Platinum
Mine
Fault
Property
Boundary
Lonmin
5 km
Platreef
Rietfontein
JVTurfspruit
Macalacaskop
Mokopane5km
Platreef history
15
2000-2006: Discovery
of open-pit resource;
563 holes, 187,000 metres.
2007-2012: Discovery
of underground resource;
413 holes; ~443,000 metres.
2010: Discovery of thick
high-grade Flatreef.
2011: 30 drill rigs; discovery
of southwest extension.
Area 1
SW
extension
Cross-
Section
Pla
treef
Macalacaskop
Turfspruit
Rietfontein
UMT
deposit
AMK
+ ATS
deposits
Flatreef cross-section
Highest grades occur at top of Platreef
UMT in Flatreef
Drillholes
ATS & UMT shallow
holes
4.2 km
500 m
NE SW
1000
0 m
2000
500
1500
Main Zone
Flatreef
Selective High-Grade Zone
View to northwest
Coarse-grained sulphides in Flatreef
Merensky Reef, Rustenberg
drill hole UMT015D1
Flatreef: Merensky grades at Platreef widths
Merensky Reef
Flatreef(1)
Grade 4 - 10
g/t 3PE 4.1 g/t 4PE
True thickness
~ 0.4 – 1.5 m
24.3 m
Grade - thickness (g-m/t)
< 5 - 15 99.6
(1) Indicated Mineral Resource,
cumulative T1m plus T2 zones,
2 g/t 4PE (Pt + Pd + Rh + Au) cut-off
18.8-metre intercept @ 4.57 g/t 3PE,
0.65% nickel & 0.28% copper
708.5m
727.3m
Flatreef deposit
Flatreef Mineral Resource, Feb. 2013*
Exploration Targets
Range Tonnes
(Mt)
4PE
(g/t)
Ni
(%)
Cu
(%)
Target 1
2.5 km2
low 31 3.36 0.26 0.13
high 62 5.03 0.38 0.19
Target 2
7.6 km2
low 50 2.91 0.24 0.12
high 220 4.11 0.32 0.16
3 km
Note: These exploration targets are conceptual in nature and there has been insufficient exploration to define the exploration targets as a mineral resource. It is uncertain
whether further exploration will result in these exploration targets being delineated as a mineral resource. For a discussion on the material assumptions of the exploration
targets, please refer to the Platreef Technical Report.
Untested areas:
37.5 km2
Step-out
drill hole
This area contains:
Indicated – 223Mt @ 4.1 g/t
4PE, 0.34% nickel, 0.16%
copper.
Inferred – 410 Mt @ 3.3 g/t
4PE, 0.32% nickel, 0.18%
copper. *selective underground mining, 2 g/t 4PE cut-off
Strong and supportive strategic partners
Sep 2010: Itochu Corp. of Japan acquired 2% of Platreef for US$10M.
May 2011: Itochu, JOGMEC and JGC purchased additional 8%
for US$280M.
Potential for Japanese government-supported project financing.
Itochu site visit to Platreef, 2011
Kamoa Project Democratic Republic of the Congo
Kamoa Project, 2011
Kamoa Copper Project
First major Copperbelt discovery in DRC since early 1900s.
The world’s largest undeveloped high-grade copper
discovery.
Positioned to become a low-cost copper producer using
conventional mining methods.
Kamoa 43-101-Compliant Mineral Resource, December 2012
Note: Mineral Resources have an effective date of December 10, 2012. Mineral Resources are reported using a total copper (Cu) cut-off grade of 1% Cu
and a minimum assumed mining thickness of 3 metres. A 1% Cu cut-off grade is typical of analogue deposits in Zambia.
Copper cut-off Tonnage (Mt) Copper Grade Contained Copper
(billion lbs)
Indicated Resource
3.00% 224 3.85% 19.0
2.00% 550 3.04% 36.9 1.00% 739 2.67% 43.5
Inferred Resource
3.00% 19 3.40% 1.4 2.00% 93 2.64% 5.4 1.00% 227 1.96% 9.8
Redefining the prolific Central African Copperbelt
DRC mines have world’s highest average copper grades.
Outcropping copper oxide mineralization
typical of DRC Copperbelt
Tenke-Fungurume, September 2003
Exploration target:
520-790Mt @
1.6%-2.5% copper.
High-grade open
down-dip to east; open
along strike to south.
58,000 metres
of drilling planned
& budgeted
Q1 2013-Q1 2014.
Excellent potential
to expand resources
Note: Exploration Targets are conceptual in nature and there has been
insufficient exploration to define such Exploration Targets as Mineral
Resources. It is uncertain if further exploration will result in these
Exploration Targets being delineated as Mineral Resources.
Mineral zonation
No artisanal mining.
True thicknesses from 2.4 to 17.6 metres; averages 5.6 metres.
High-grade bornite-chalcocite, open down-dip for expansion.
Note: not to scale
sandstone
West East
Note: not to scale
M. & I.
Inf.
Copper Grade
Inferred
Meas. & Ind.
World’s top 10 deposits
with over 2.5% copper
Kamoa now ranks as Africa’s largest high-grade copper discovery
19.7
13.0
6.5 4.6 2.9 1.0 1.0 0.8 0.8 0.8
4.5
4.9
2.5 3.6
0.6 1.9 0.5 0.5
2.7% 2.6% 5.4% 4.4% 4.5% 3.2% 3.8% 5.5% 2.7% 5.1%
2.0% 2.0% 3.6% 4.1% 5.0% 3.1% 3.6% n/a n/a 5.3%
Co
nta
ined
Co
pp
er
(Mt)
Source: Brook Hunt – A Wood Mackenzie Company
Note: Measured & Indicated Mineral Resources, inclusive of Mineral Reserves,
and Inferred Mineral Resources, for top ten global deposits with grades >2.5% Cu
25.0 19.7
14.6 14.3 12.5
10.1 8.7 7.5 7.1 6.9
6.3
4.5 8.6 10.0
2.7 10.2 6.8
1.5
3.8
--
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
0
5
10
15
20
25
30
35
Co
nta
ined
Co
pp
er
(Mt)
The world’s top 10 undeveloped copper deposits
Inferred Measured & Indicated
Average
copper
grade
Copper
Grade
Source: Brook Hunt – A Wood Mackenzie Company. Note: Measured & Indicated Mineral Resources, inclusive of Mineral
Reserves, and Inferred Mineral Resources for top 10 global undeveloped copper deposits
Initial Mining Rate (Base Case)
5 Mtpa
Copper Production 143,000 tpa
Cash Cost $0.95/lb Cu
Initial Capex $2.0 billion
NPV10 @ $2.85 Cu $1.2 billion
NPV10 @ $3.50 Cu $2.1 billion
Mine Life 61 years
Updated PEA expected
first half of 2013.
Preliminary work indicates
7.5 Mtpa allows more
efficient use of capital.
Scalable production:
Potential mining rate
of up to 20 Mtpa.
Note: The Preliminary Economic Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to
have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the projected results of
the Preliminary Economic Assessment will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
1. Average first 10 years of production
2. Average first 10 years’ cash cost after acid credits (before credits $1.19/lb Cu)
3. After-tax NPV, discounted at 10%, assuming a long term copper price of $2.85/lb and $3.50/lb, respectively
(2)
(3)
Preliminary Economic Assessment (PEA)
(1)
(3)
Positioned to become a low-cost
copper producer
--
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
2012E
Cash
Co
st
(US
$/lb
Cu
)
Cumulative Production (kt Cu)
(1)
1. Represents C1 cash costs which reflect the direct cash costs of producing paid metal incorporating mining, processing and offsite
realisation costs having made appropriate allowance for the co-product revenue streams.
Source: Brook Hunt – A Wood Mackenzie Company
2012E Copper Cash Costs (1)
Kamoa first 10 years
Average: US$0.95/lb
DRC regional infrastructure
DRC power lines are 10 km
from Kamoa.
Agreement with state power
company to refurbish two
hydro-electric plants.
April 2012: power line supplying Kolwezi.
DRC regional infrastructure
April 2012: power line supplying Kolwezi.
Mwadingusha dam
DRC regional infrastructure
April 2012: power line supplying Kolwezi.
Katanga electrified railway line
Kamoa camp
April 2012: power line supplying Kolwezi.
Kipushi #5 Shaft, 2011
Kipushi Project Democratic Republic of Congo
Kipushi Zinc-Copper Project
Past-producing high-grade zinc-copper mine.
Focused on defining prospective Big Zinc deposit.
Underground access available for redevelopment.
Historical Resource Estimate
Historical cut-off:
Low grade: 1% < copper < 2% and 7% < zinc < 14%.
Waste: copper < 1% and zinc < 7%.
Note: A Qualified Person has not done sufficient work to classify these historical estimates as current Mineral Resources and Ivanplats is
not treating such historical estimates as current Mineral Resources. Historical resource estimate by Techpro Mining and Metallurgy in
1997.
Tonnage (Mt) Zinc Grade Copper Grade
Measured &
Indicated 16.9 16.8% 2.3%
- including Big
Zinc deposit 4.7 38.6% 0.8%
Inferred 9.0 23.3% 1.9%
Kipushi: in southeast DRC adjacent to Zambia
Ivanplats (operator) owns 68% interest; Gecamines owns 32%.
Past production (1924 - 1993): 60 Mt @ 11% zinc, 7% copper,
~278 tonnes of germanium.
Historical unmined resources, including Big Zinc deposit.
Redeveloping Kipushi
Kipushi Project, April 2012
Installation of dewatering pump at Shaft #5, 2012
Redeveloping Kipushi
Exploration drilling, March 1925
Historical photos
Kipushi open pit, November 1928
Historical photos
Kipushi geology and infrastructure
Kipushi Fault was mined 1924-1993 to ~1,150 level
Discovery of Big Zinc deposit prior to closure, never mined
OPEN
Shafts
~100 m x 40-80 m x 300 m,
open at depth.
Historical M & I Resource
stated to 1,500-metre
depth.
Drilling confirms
continuation below
the 1,640-metre level.
1300
1400
1500
1600
41m
44% Zn
85m
45% Zn
95m
43% Zn
82m
45% Zn
VERTICAL SECTION WITH DRILL INTERCEPTS
1272mL
Big
Zinc
deposit
Kipushi
Fault
zone
Big Zinc deposit
OPEN
Key milestones
KAMOA
PLATREEF
2013
Update PEA
PFS
Update resources
Commence shaft
Q3 Q2 Q1
2012
Q4 Q4 Q3
KIPUSHI Dewater to
1,250mL
Underground Drilling
Refurbish shaft
Apply for Mining Right
Financial information
Trading
symbol TSX:IVP
Shares
outstanding
Class A Common Shares: 405,468,145
Class B Common Shares: 123,347,684
Market cap C$2.2 billion
Major
shareholders
Robert Friedland
Ontario Teachers Pension Plan
Tocqueville Asset Management
EBX Group Co.
Fidelity
Information current as of February 26, 2013
The new source
of key minerals
for world markets