Livingstone Presentation - Weatherly International PLC

Producing Producing, Developing
& & Exploring Exploring for for Copper
Copper
WEATHERLY INTERNATIONAL PLC – JANUARY 2013

Disclaimer
This presentation may contain forward-looking statements that reflect
Weatherly’s Weatherly s current expectations regarding future events events, its liquidity and
results of operations and its future working capital requirements and capital
raising activities activities. Forward-looking statements involve risks and uncertainties
uncertainties.
Actual events could differ materially from those projected herein and depend
on a number of factors, including the success of the Company’s Company s development
strategies, the ability of the Company to obtain additional financing for its
operations p and the market conditions affecting g the availability y and terms
of such financing.
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 2

Namibia
Weatherly International has good relationships
with all important stake holders.
Namibia
• Is a stable multi-party multi party democracy
• Promotes inward foreign investment
• Has a well established mining act
• Operates under an independent legal
system
• Is the 6th Best African nation for mining
(Fraser Institute Survey 2011/12).
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 3

Weatherly – History
Ongopolo
acquisition
Global financial
crisis –
underground
mines closed
Sale of
Tsumeb
smelter
Underground
mines
reopened
Tschudi
– Bankable
feasibility
delivered
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 4

Capitalisation, cash & shareholders
Listed on Londons AIM (1) WTI
Common shares 537 million
Warrants & options 27.7 million
Market cap (fully diluted) ~ £30.3 million
Cash US$ 6.7 million
Debt ~ US$ 4.3
million
Key shareholders
Legal & General 14.3%
Directors & associated
companies (2) p
8.7%
Namibian Interests (3) 7.6%
Blackrock 7.5%
Note 1 – as at January 2013
38.1%
Note 2 – Webster (5.1%), Martinick (3.6%)
Note 3 – GRN (5.1%), GIPF (2.4%)
WEATHERLY INTERNATIONAL PLC – JANUARY 2013
5

Weatherly International (WTI)
WWeatherly th l iis an iinternational t ti l
resources company focused
on copper iin Af Africa i
Weatherly’s strategy in Namibia is to develop
a coppe copper mining g business bus ess capable capab e of o sustaining sus a g
25,000 tpa of copper at average industry
cost of production
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 6

Namibian assets
Weatherly Mining Namibia’s (WMN) assets comprise:
Two operating copper mines
Otjihase (Cu)
Matchless (Cu)
Three projects (on granted ML’s)
Tschudi (Cu)
Tsumeb West (Cu)
Ts Tsumeb meb Tailings (C (Cu) )
One prospect area
EPL132A (Cu)
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 7

Production targets
30000
25000
20000
15000
10000
5000
0
2013 2014 2015 2016 2017
Central Ops Old Matchless Tschudi
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 8

Tschudi –
In production by 2014
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 9

Tschudi project
Summary of feasibility results – Production
Mine type Open pit
RResources 50 50.1mt 1 t at t 00.86% 86% CCu
Reserve 22.7mt at 0.95% Cu
Mining rate ~17mt/yr
Mine life 11 years
Stripping ratio 7.45/1
Processing method Solvent Extraction, Electro-Winning (SX-EW)
Processing rate 2.0-2.6mt/yr ore
Recovered copper 184,275t
Annual production ~17,000t/yr
PIT
SHELLS
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 10
TYPICAL
SECTION

Tschudi project
Summary of feasibility results – Financial
Initial capital $N693m (~US$81m)
Lif Life of f mine i capital it l $N941 $N941m ( (~US$109m) US$109 )
Life of mine cash cost (C1)
After tax NPV (8%) – Consensus
US$4,267/t Cu (US$1.94/lb)
Case1 $N915m (~US$105m)
After tax IRR - Consensus Case1 32.1%
Payback from start of production 2.43 yrs
After tax NPV (8%) - Alternative Case2 $N2,055m (US$238m)
After Tax IRR Alternative Case2 After Tax IRR - Alternative Case 50 8%
2 50.8%
Payback from start of production 1.98 yrs
1 Consensus Case – uses industry consensus forecasts for exchange rates and copper prices.
2 Alternative Case – uses exchange rates and copper price as at December 2012.
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 11

Tschudi project image
Offices
Workshop
Existing electrical substation
Crushing circuit
Leach pads
Openpit
Solvent
extraction
Waste rock
dump
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 12
Electro–
winning

Current status / timeline to production
1 2 3 4 5 6 7
Month +1 1 – 3 Month +44 Month +8 8 Month +16 16 Month +17 17 Month +18 18 Month +19 19
Start front end
engineering
Obtain
environmental
clearance l
Complete
Funding
Start
earthworks and
civil
construction
Mining
Commence
Mining ore
contractor Commission
mobilises Crushers
Complete First
leach pad cells
Commence
irrigation
Commission
SX-EW plant
First copper
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 13

Benchmarked against the global copper project
pipeline
Tschudi
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 14

Underground operations operations,
a platform for for growth
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 15

Quarterly production
Cash cost US$
7000
6500
6000
5500
5000
4500
4000
3500
Contained copper (t)
3000
500
1-Sep-11 1-Dec-11 1-Mar-12 1-Jun-12 1-Sep-12 1-Dec-12
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 16
11,700 700
1,500
1,300
1,100
900
700

Ongoing initiatives to drive down costs
Increase production to fill Otjihase
concentrator
Otjihase
• New areas to increase flexibility
• Reduce dependence on pillar
recovery (2 years)
Matchless
• Double production through development
of Old Matchless
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 17

Potential to extend mine life through regional consolidation
Regional
Copper
Resources
Weatherl
y
Tonnes Grade
(mt) (%)
12.4 1.9
Other 11.8 1.8
Total 24.2 1.9
Reserve 3.0mt 1.61%
Resource 10.9mt 1.89%
Historical
Resource 3.3mt 2.0%
Reserve 0.5mt 1.89%
Resource 0.7mt 2.20%
Resource 8.5mt 1.76%
Capacity – 1mt pa
Current utilisation – 48%
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 18

Summary investment case
Cashflow Underground mines
Growth Pipeline
– Tschudi resource expansion potential
– Old MMatchless t hl development
d l t
Investments Strategic investment in China Africa Resources
Tschudi Project
– Funding being finalised
– US$238 NPV at current prices
– This NPV equates to ~490% of current market
cap
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 19

Weatherly International Plc
Weatherly London office
180 Piccadilly
London
W1J 9HF
T +44 (0)207 917 2989
F +44 44 (0)207 439 0262
info@weatherlyplc.com
www.weatherlyplc.com
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 20

Appendices
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 21

Board of Directors
John Bryant Rod Webster Alan Stephens Charilaos Stavrakis Dr Wolf Martinick
John Bryant – Non-executive Non executive Chairman
Charilaos Stavrakis Stavrakis– Non-executive Non executive Director
Mr Bryant is the Senior Independent Director of AIM listed IGas plc and a Non-executive Mr Stavrakis, aged 57, recently served the Republic of Cyprus as Finance Minister from
Director of China Africa Resources. He was previously Chairman of Gas Turbine Efficiency 2008 to 2011 and was the Governor for the Republic of Cyprus at the European
plc, KP Renewables plc and a board member of Attiki (Athens) Gas Company. He also
Investment Bank (EIB). He has over 25 years experience in the banking sector, the
served as President of Cinergy Global Resources Corp, responsible for all international
majority of which spent at the Bank of Cyprus, where he ultimately held the role of Deputy
business and global renewable power operations of this US-based electricity and gas utility Group CEO from 2005 to 2008.
provider. id
Mr Stavrakis has extensive international banking experience in Cyprus, Australia, Russia
Rod Webster – Chief Executive Officer
and the UK. He is a graduate of Economics from the University of Cambridge and holds a
Mr Webster is a graduate mining engineer from the University of Sydney. He has over 36 MBA from Harvard University.
years experience in the resources industry, including more than 15 years in managing
Dr Wolf Martinick – Non-executive Director
director or chief executive positions. Recently he was a senior executive of First Quantum Dr Martinick is an environmental scientist with over 40 years of international experience in
Minerals (FQM) (FQM), developing copper mines in Zambia and Mauritania Mauritania, and previously the the mineral resource industry. industry He is a Non Non-executive executive Director of a number of ASX
CEO of Western Metals and a senior manager with Homestake Gold and BHP Minerals.
companies including Azure Minerals Ltd; Carbine Resources Limited; Sun Resources
Alan Stephens – Senior Independent Non-executive Director
Limited; Uran Limited; and is Executive Chairman of Oro Verde Limited. Dr Martinick is a
Alan Stephens joined Weatherly in July 2008 and has 33 years of experience in the mining
industry. Alan is currently President, CEO and Director of Coro Mining Corp, a TSX quoted,
Latin American focused, copper development company with an advanced copper-gold
project in Argentina and several earlier stage projects in Chile. He is also Chairman of
Valley High Ventures, a Vancouver based junior exploration company. Alan has experience
across Africa, Europe, Asia and Latin America.
Fellow of the Australian Institute of Mining and Metallurgy.
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 22

Management
Craig Thomas Kevin Ellis Chuck Carnie
Andrew Thomson
Craig Thomas – Chief Operating Officer
Mike Stuart – Exploration & Development Manager
Mr Thomas is an Australian mining engineer with over 20 years of diverse operational
Mike Stuart is a geologist with over 16 years experience exploring for, and developing,
experience. He was previously General Manager of Lihir Gold’s Ballarat mine, and has also copper and gold deposits in Africa. He was Chief Geologist for First Quantum Minerals at
played key leadership roles in the development and production start-up of open pit and
both the Kansanshi Copper Mine in Zambia and the Guelb Moghrein Copper/Gold Mine in
underground mines in Africa, New Guinea and Australia.
Mauritania, bringing both projects from feasibility into production. He has also spent three
Kevin Ellis – Chief Financial Officer
Mr Ellis is a Chartered Accountant and Weatherly's Chief Financial Officer based in our
years as a sell-side mining analyst in the City of London. Mike is a Professional Member
of f the th Institute I tit t of f MMaterials, t i l Mi Minerals l and d Mi Mining i (MIMMM) (MIMMM).
London Head Office. Mr Ellis has lengthy experience in senior financial positions across a Andrew Thomson – Technical Director
number of industries including mining, consumer healthcare, pharmaceuticals and public Mr Thomson is a 52 year old Namibian geologist, studied at the University of Natal, South
practice. He worked in Namibia for 5 years including a year as Financial Controller of
Africa. He has a deep understanding of the company’s Namibian mining assets having
Weatherly's Namibia Operations.
worked with them throughout his 30 year career. Mr Thomson has worked in various
Ch Chuck k CCarnie i – GGeneral l MManager – CCentral l Operations O i
senior roles in Weatherly including General Manager of the Otjihase mine mine, and Technical
Chuck is a geologist with over 20 years experience in the mining and resources sector
working across precious and base metals. He has worked in organisations ranging from
grass roots exploration to large scale producing operations. Most recently he was Chief
Executive Officer with Aussie Q Resources Ltd and previously spent some 6 years at the
Ballarat Gold Mine in senior technical roles.
Director .
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 23

Annual Results 2012
Financial highlights
• Profit after tax of US$21.4 million for the year ended 30 June 2012
• US$10.4 million of cash generated from operating activities
• US$8.5 million cash at bank at 30 June 2012
Production Total
Ore treated (t) 367,505
Grade (%) 1.53
Recovery (%) 92.48
Copper concentrate (t) 21,472
Copper Contained (t) 55,208 208
WEATHERLY INTERNATIONAL PLC – JANUARY 2013 24

Statement of Reserves & Resources
Reserves
Underground (at 1% cut off)
Reserve
Category Mt
Reserve tonnes and grade
Cu (%) Ag (g/t) Au (g/t)
Contained metal
Cu (t) Ag (kg) Au (kg)
Proven 2.76 1.67 7.06 0.30 45,958 19,468 825
Otjihase*
Probable 0.29 1.01 7.57 0.15 2895 2177 42
TTotal t l 304 3.04 161 1.61 711 7.11 028 0.28 48 48,853 853 21 21,645 645 867
Proven – – – – – – –
Matchless (West extension)*
Probable 0.51 1.89 – – 9,726 – –
Total 0.51 1.89 – – 9,726 – –
Grand total – Underground
Open pit (at 0.3% cut off)
3.56 1.65 6.08 0.24 58,579 21,645 867
Proven 437 4.37 114 1.14 – – 49 49,765 765
– –
Tschudi°
Probable 18.33 0.9 – – 164,937 – –
Total 22.70 0.95 – – 214,702 – –
Grand total - Open pit 22.70 0.95 – – 214,702 – –
Resources
Underground (@ 1% cut off)
Resource
Category Mt
In situ tonnes and grade
Cu (%) Ag (g/t) Au (g/t) Cu (t)
In situ metal
Ag (kg) Au (kg)
Measured 3.34 2.37 8.88 0.42 79,239 29,673 1,412
Otjihase*
Indicated
Inferred
3.83
3.72
1.94
1.41
7.76
5.19
0.32
0.23
74,217
52,335
29,639
19,293
1,204
839
Total 10.89 1.89 7.23 0.32 205,791 78,605 3,455
Measured – – – – – – –
Matchless (West extension)*
Indicated
Inferred
0.43
0.23
2.14
2.32
–
–
–
–
9,180
5,346
–
–
–
–
Total 0.66 2.20 – – 14,526 – –
Measured 0.04 2.45 13 – 864 458 –
Tsumeb West*
Indicated
Inferred
0.52
041 0.41
2.24
188 1.88
20.02
16 16.35 35
–
–
11,680
77,757 757
10,417
66,757 757
–
–
Total 0.97 2.09 18.20 – 20,301 17,632 –
Grand total – Underground
Open Pit (at 0% cut off)
12.52 1.92 7.69 0.28 240,618 96,237 3,455
Measured 4.45 1.09 – – 48,550 – –
Tschudi°
Indicated
Inferred
28.88
19.70
0.85
0.72
–
–
–
–
247,979
142,205
–
–
–
–
Total 53.03 0.83 – – 438,734 – –
Grand Total – Open pit
* As at 30 Jun 2012 ° As at 31 Dec 2012
53.03 0.83 – – 438,734 – –
WEATHERLY INTERNATIONAL PLC – JANUARY 2013
25