Weatherly International One2One Investor Presentation 18th April ...

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Weatherly International One2One Investor Presentation 18th April ...

From Junior to Mid Tier mining company:!

Producing, Developing & Exploring for Copper


Disclaimer!

This presentation may contain forward-looking statements that reflect

Weatherly’s current expectations regarding future events, its liquidity and

results of operations and its future working capital requirements and

capital raising activities. Forward-looking statements involve risks and

uncertainties. Actual events could differ materially from those projected

herein and depend on a number of factors, including the success of the

Company’s development strategies, the ability of the Company to obtain

additional financing for its operations and the market conditions affecting

the availability and terms of such financing.!


AGENDA!

Why Copper?!

Why Namibia?!

Why Weatherly?!

Our Assets!

Investment Case!

Appendix


WHY COPPER?


WHY COPPER?

Countries continue to

urbanise & industrialise.!

!

Total world copper

production 17 million

tonnes per annum.!

!

World consumption over

the next 24 years will

exceed all of the copper

metal ever mined to

date.

Source: Commodities Outlook for Copper Andrew Sheldon


WHY COPPER?

Globally economic copper

resources are being

depleted with the equivalent

production of 3 world class

mines per year.

Based on an extrapolation

growth rate of 2%, copper

could run out in 25 years.

21 of the 28 largest copper

mines in the world are not

amenable to expansion.

Source: China Copper No. 6 Issues 2009 Copper Supply Balance


WHY COPPER?

An average new mine needs to dig 700t of ore and waste to produce 1t of

copper, up from 196t in 1990.

Source: Standard Charted digging for dirt. Quincy Krosby Prudential Financial Inc


WHY COPPER?

The Global Copper Project Pipeline


WHY NAMIBIA

Global Map of Political Risk

Source: Standard Charted digging for dirt.


WHY NAMIBIA?

WHY WEATHERLY?


WHY NAMIBIA?

Namibia

• Is a stable multi-party democracy

• Promotes inward foreign investment

• Has a long established mining act

• Operates under an independent legal system

• Rated the 6th Best African nation for mining!

(Fraser Institute Survey 2011/12)

During it’s 6 years in Namibia, Weatherly developed strong

relationships with all stake holders.


WHY WEATHERLY?

Weatherly is an international resources company focused !

on copper in Africa.

We produce, develop and explore for copper.”


WHY WEATHERLY?

Resource base containing 712,000t

of copper (JORC).

Two copper producing mines –

Otjihase and Matchless

Production growth from Tschudi mine

development (+17,000t Cu)

Further exploration potential at

Matchless and Tschudi leases.

Strategic 25% investment in China

Africa Resources (Berg Aukas Pb/Zn

mine).


WHY WEATHERLY?

Strong Boards and management in

London & Namibia. (see appendix)

Profitable operations with cash in the

bank.

Prudent hedging strategy

Considerable tax credits in operating

company in Namibia.


OUR ASSETS


OUR ASSETS

Weatherly Mining Namibia’s (WMN) assets comprise:

Two operating copper mines

Otjihase

Matchless

Three projects (on granted ML’s)

Tschudi

Tsumeb West

Tsumeb Tailings

One prospect area

EPL132A

Strategic investment in China African Resources


OUR ASSETS Underground Operations


Quarterly Production


OUR ASSETS Underground Operations


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

Production through development !

of Old Matchless


OUR ASSETS What Next for Weatherly?


Potential to Extend Mine Life Through Regional Consolidation

Regional

Copper

Resources

Tonnes

(mt)

Grade

(%)

Weatherly 12.4 1.9

Other 11.8 1.8

Total 24.2 1.9


OUR ASSETS Tschudi Project


Test Pits!

Underground Portal!

Source: D&B Switzerland 2012


OUR ASSETS Tschudi Project


Summary of Feasibility Results – Production

Mine type

Resources

Reserve

Mining rate

Mine life

Open pit

50.1mt at 0.86% Cu

22.7mt at 0.95% Cu

~17mt/yr

11 years

Stripping ratio 7.45/1

Processing method

Processing rate

Solvent Extraction, Electro-Winning (SX-EW)

2.0-2.6mt/yr ore

Recovered copper 184,275t

Annual production

~17,000t/yr

PIT SHELLS

TYPICAL SECTION


OUR ASSETS Tschudi Project


Summary of Feasibility Results – Financial

Initial capital

Life of mine capital

Life of mine cash cost (C1)

After tax NPV (8%) – Consensus

Case 1

After tax IRR - Consensus Case 1 32.1%

Payback from start of production

After tax NPV (8%) - Alternative Case 2

$N693m ( ~US$81m)

$N941m (~US$109m)

US$4,267/t Cu (US$1.94/lb)

$N915m (US$105m)

2.43 yrs

After Tax IRR - Alternative Case 2 50.8%

Payback from start of production

$N2,055m (US$238m)

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.


OUR ASSETS Tschudi Project


How Does Tschudi Compare?

In the lowest cost quartile on Goldman Sachs chart


Tschudi


OUR ASSETS Tschudi Project


Current Status / Timeline to Production

1 2 3 4 5 6 7

Month +1 – 3 Month +4 Month +8 Month +16 Month +17 Month +18 Month +19

First copper

Start front end

engineering

Start earthworks

and

civil construction

Mining

contractor

mobilises

Commence

mining ore

Commission

Crushers

Complete first

leach pad cells

Commence

irrigation

Commission

SX-EW plant

Obtain

environmental

clearance

Funding

completed


INVESTMENT CASE


INVESTMENT CASE

CAPITALISATION

Listed on London’s AIM (1) WTI

Common shares 537 million

Warrants & options 27.7 million

Market cap (fully diluted)

~ £20 million

Cash US$ 7.2 million

Debt ~ US$ 4.1 million

Note 1 – as at 30 th March 2013

Note 2 – Webster (5.1%), Martinick (3.6%)

Note 3 – GRN (5.1%), GIPF (2.4%)


INVESTMENT CASE

KEY SHAREHOLDERS

Legal & General 14.3%

Directors & associated companies (2)

8.7%

Namibian Interests (3) 7.6%

Blackrock 7.5%

38.1%

Good Liquidity with ~1million shares traded daily on average

Note 1 – as at 30 th March 2013

Note 2 – Webster (5.1%), Martinick (3.6%)

Note 3 – GRN (5.1%), GIPF (2.4%)


INVESTMENT CASE

PRODUCTION TARGETS


INVESTMENT CASE

SUMMARY

Cashflow Underground mines producing a profit

Growth Pipeline Old Matchless development

Regional Consolidation Opportunities

Investments Strategic investment in China Africa Resources

Tschudi Project Funding being finalised


US$105m NPV at consensus prices

This NPV equates to ~350% of current market cap


Weatherly International Plc

Weatherly London Office!

180 Piccadilly !

London !

W1J 9HF

T +44 (0)207 917 2989!

F +44 (0)207 439 0262

info@weatherlyplc.com!

www.weatherlyplc.com


APPENDIX


WHY WEATHERLY?

Directors & Senior Management, London

John Bryant

Non-Executive Chairman

John Bryant is the Senior

Independent Director of AIM listed

IGas plc and a Non-executive

Director of China Africa

Resources. He was previously

Chairman of Gas Turbine

Efficiency plc, KP Renewables plc

and a board member of Attiki

(Athens) Gas Company. He also

served as President of Cinergy

Global Resources Corp,

responsible for all international

business and global renewable

power operations of this USbased

electricity and gas utility

provider.

Rod Webster

Chief Executive Officer

Rod Webster is a graduate mining

engineer from the University of

Sydney. He has over 36 years

experience in the resources industry,

including more than 15 years in

managing director or chief executive

positions. Prior to founding

Weatherly, he was with First

Quantum Minerals (CEO Kansanshi

Mining), Western Metals (CEO &

founder), Homestake Gold and BHP

Minerals.

Alan Stephens

Senior Independent Non-Executive Director

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. Alan has experience

across Africa, Europe, Asia and

Latin America.


WHY WEATHERLY?

Directors & Senior Management, London

Charilaos Stavrakis

Non-Executive Director

Mr Stavrakis, aged 57, recently

served the Republic of Cyprus as

Finance Minister from 2008 to 2011

and was the Governor for the

Republic of Cyprus at the European

Investment Bank (EIB). He has over

25 years experience in the banking

sector, the majority of which spent

at the Bank of Cyprus, where he

ultimately held the role of Deputy

Group CEO from 2005 to 2008.

Mr Stavrakis has extensive

international banking experience in

Cyprus, Australia, Russia and the

UK. He is a graduate of Economics

from the University of Cambridge

and holds a MBA from Harvard

University.

Dr Wolf Martinick

Non-Executive Director

Dr Martinick is an environmental

scientist with over 40 years of

international experience in the

mineral resource industry. He is a

Non-executive Director of a

number of ASX companies

including Azure Minerals Ltd;

Carbine Resources Limited; Sun

Resources Limited; Uran Limited;

and is Executive Chairman of Oro

Verde Limited. Dr Martinick is a

Fellow of the Australian Institute

of Mining and Metallurgy.

Kevin Ellis

Chief Financial Officer

Mr Ellis is a Chartered Accountant

and Weatherly's Chief Financial

Officer based in our London Head

Office. Mr Ellis has lengthy

experience in senior financial

positions across a number of

industries including mining,

consumer healthcare,

pharmaceuticals and public

practise. He worked in Namibia

for 5 years including a year as

Financial Controller of

Weatherly's Namibia Operations.


WHY WEATHERLY?

Directors & Senior Management, Namibia

Cleophas Mutjavikua

Senior Non-Executive Director

Cleophas brings a wealth of experience to

the Weatherly Board in Namibia. While he

started his career as a teacher he soon

moved into mining covering a number of

relevant roles. He was General Secretary

of the Mineworkers Union in Namibia, in

charge of Industrial Relations for the City

of Windhoek and is now Regional

Governor for the Erongo Region in

Namibia. Cleophas has held a number of

board roles including The Roads

Construction Company in Namibia, the

Meat Board in Namibia, Labor Investors

Holdings, MOBIPAY, Namibia Customer

Smelters, Sanlam investment

management, and Prime Health Namibia.

Frans J P Ndoroma

Non-Executive Director

Appointed as Managing Director of

Telecom Namibia Limited on 1 November

2002. During the same period he was

simultaneously Chief Executive Officer of

Namibia Post & Telecom Holdings Limited

(NPTH), the company under which

Telecom Namibia, NamPost and Mobile

Telecoms (MTC) reside. Frans is a

metallurgical graduate with over 21 years

with NAMDEB, including Divisional Plant

Superintendent, Metallurgical Manager,

Mine Manager of the Orange River Mines

and finally Assistant General Manager of

NAMDEB. He is a director on several

boards amongst others Neotel, and De

Beers Marine Namibia.

Titus Haimbili

Non-Executive Director

Titus is 53 years old and has 28 years of

experience in both the private and public

sector, many in Senior Executive roles

such as General Manager, Chief

Executive and Chairman of the Board.

Titus was most recently employed as the

Chief Executive Officer of TransNamib,

the Namibian para-statal Rail service

provider and is currently serving as a

Senior Lecturer in Business Management

at the International University of

Management (IUM), Namibia. Titus

received a Masters of Business

Administration at University of Maastricht,

Netherlands and is currently studying a

Doctorate of Business Administration at

the University of Namibia.


WHY WEATHERLY?

Directors & Senior Management, Namibia

Craig Thomas

Chief Operating Officer

Craig Thomas is an

Australian mining

engineer with over 20

years of diverse

operational experience.

He was previously

General Manager of Lihir

Gold’s Ballarat mine,

and has also played key

leadership roles in the

development and

production start-up of

open pit and

underground mines in

several countries.

Andrew Thomson

Technical Director

Mr Thomson is a 52 year

old Namibian geologist,

studied at the University

of Natal, South Africa.

Mr Thomson has worked

in various senior roles

from Chief Geologist,

General Manager of the

Otjihase mine, Technical

Director and Country

Manager.

Chuck Carnie

General Manager – Central

Operations

Chuck is a geologist with

over 20 years experience

in the mining and 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 at the

Ballarat Gold Mine in

senior technical roles.

Mike Stuart

Exploration & Development Manager

Mike Stuart is a geologist with

over 16 years exploring for,

and developing, copper and

gold deposits in Africa. He was

Chief Geologist for First

Quantum Minerals at both the

Kansanshi Mine in Zambia and

the Guelb Moghrein Mine in

Mauritania. He spent three

years as a sell-side mining

analyst in the City of London.

Mike is a Professional Member

of the Institute of Materials,

Minerals and Mining (MIMMM).


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) 5,208


STATEMENT OF RESERVES & RESOURCES

Reserve Reserve tonnes and grade Contained metal

Reserves

Category Mt Cu (%) Ag (g/t) Au (g/t) Cu (t) Ag (kg) Au (kg)

Underground (at 1% cut off)

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

Total 3.04 1.61 7.11 0.28 48,853 21,645 867

Proven – – – – – – –

Matchless (West extension)*

Probable 0.51 1.89 – – 9,726 – –

Total 0.51 1.89 – – 9,726 – –

Grand total – Underground 3.56 1.65 6.08 0.24 58,579 21,645 867

Open pit (at 0.3% cut off)

Proven 4.37 1.14 – – 49,765 – –

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 – –

Resource In situ tonnes and grade In situ metal

Resources

Category Mt Cu (%) Ag (g/t) Au (g/t) Cu (t) Ag (kg) Au (kg)

Underground (@ 1% cut off)

Measured 3.34 2.37 8.88 0.42 79,239 29,673 1,412

Otjihase*

Indicated 3.83 1.94 7.76 0.32 74,217 29,639 1,204

Inferred 3.72 1.41 5.19 0.23 52,335 19,293 839

Total 10.89 1.89 7.23 0.32 205,791 78,605 3,455

Measured – – – – – – –

Matchless (West extension)*

Indicated 0.43 2.14 – – 9,180 – –

Inferred 0.23 2.32 – – 5,346 – –

Total 0.66 2.20 – – 14,526 – –

Measured 0.04 2.45 13 – 864 458 –

Tsumeb West*

Indicated 0.52 2.24 20.02 – 11,680 10,417 –

Inferred 0.41 1.88 16.35 – 7,757 6,757 –

Total 0.97 2.09 18.20 – 20,301 17,632 –

Grand total – Underground 12.52 1.92 7.69 0.28 240,618 96,237 3,455

Open Pit (at 0% cut off)

Measured 4.45 1.09 – – 48,550 – –

Tschudi°

Indicated 28.88 0.85 – – 247,979 – –

Inferred 19.70 0.72 – – 142,205 – –

Total 53.03 0.83 – – 438,734 – –

Grand Total – Open pit 53.03 0.83 – – 438,734 – –

* As at 30 Jun 2012 ° As at 31 Dec 2012

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