Miners, Operators, Builders
…unlocking value in resource assets
November 2012
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A Unique and Proven Model
Capital Talent
Strategy
Strengthen Companies &
Increase Value
Each company has access to: § Global network of
political leaders
§ Industry experts
§ Technical teams
§ Developmental teams
§ Financial experts
…in over 30 countries around the world.
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Sulliden
Brazil Potash Belo Sun
Aguia
Aguia
Ira5
Alder Resources
Cas5llian
Alderon
Forbes Coal
Black Iron
Cas5llian Pitchblack
Allana
Allana
Silver Bear
Rodinia
Cas5llian
Rodinia
Cap-‐Ex
Cap-‐Ex
Legacy Pla5num
Dacha
Scandinavian Metals
Ferro Iron
Windamere
TAG Resources
Mason Graphite Emerita
East Asia Minerals
East Asia Minerals
Forbes Offices Projects / Opera5ons
Global Mining Footprint
What We Bring
Integrated Team Built on Technical and Operational Expertise and Accomplished Financial Markets Professionals
Stan Bharti Founder and
Executive Chairman
• Over 50 engineers • Over 50 geologists • Expertise in all
mining, energy and agriculture products
• 11 (globally) full-time securities lawyers and support staff
• Over 30 people with expertise in – M&A – Investment banking – Corporate Finance – Corporate Development – Investor relations
• Over 20 accounting and administration staff
Advisory Board
Technical Team
Legal Team
Financial Team
Admin / Accounting
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F&M at a Glance
Over the last 10 years, we have… § Discovered more than 20M oz of gold to 43-101 compliant standards worth
more than $34 billion in situ value today
§ Produced almost 1 million oz from mines that were built or re-started by our teams. Another million ounces have been produced from gold mines bought from F&M companies.
§ Discovered + 900 million tonnes of iron metal to 43-101 compliant standards (and + 3 billion tonnes of iron ore)
§ Produced 3.3 million tonnes of saleable iron ore concentrate before being acquired and another 12 million tonnes since.
§ Operated, expanded and produced successfully from coal and nickel mines.
§ Discovered under 43-101 or JORC compliant standards resources in silver, zinc, nickel, potash, phosphate, vanadium, tungsten, lithium, and other commodities.
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Building Companies & Creating Value
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Cumulative Value Added
Source: Bloomberg, F&M
• Silver Bear Resources has explora2on rights of Mangazeisky property in Yaku2a, Russia with GKZ on and off balance Russian Resources of 900Moz and NI 43-‐101 compliant resource of 62M z of silver
• The resource addi2on upside from the current license area is 170Moz based on 0.4x conversion of P1 Russian resources; the ul2mate upside is in excess of 300Moz
• SBR management has completed an internal PEA which indicates the Company would produce a peak 8M oz p.a. in a 25 yrs mine life at a cash cost of sub $10/oz and become a leading primary silver producer with an NPV of the project of $638m (8%, $30/oz)
• Strong technical management team with extensive experience of Russian operating conditions.
• Supportive shareholders including important Russian market participants to assist with operating challenges in Russia.
• Certificate of Discovery awarded in 2012 after successful drilling program accomplished
• Proposed interim development program to reach cash flow positive production in short term and minimize capital requirements. Proposed capital requirement of $50m to reach production of 2Moz p.a. through developing a near surface low cost open pit
• SBR is looking for $50 mln financing to advance its project to production; Term Sheet is included in Appendix 1.
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Mangazeisky
400 km
Case Study: Introduction
• Запасы Мангазейского месторождения серебра компании Silver Bear
Resources, по российской классификации P1+P2,составляют 900М унций и по канадской классификации NI 43-101,62М унций.
• Дополнительные извлекаемые запасы на лицензионном участке путём перевода 40% категории Р1 в извлекаемые запасы составляет 170М унций. Максимальный потенциал извлекаемых ресурсов приближается к 300М унций.
• Руководство SBR разработало своё собственное ТЭО, которое показывает, что компания способна производить до 8М унций в год на протяжении более чем 25 лет, при стоимости производства менее $10/унцию, что позволит компании стать одним из ведущих производителей серебра в мире. Дисконтированная оценка NPV проекта равна $638 миллионов (8%,$30/унцию).
• Сильная техническая команда менеджеров с большим опытом работы в России.
• Мощная поддержка акционеров, включая российских стратегических партнёров.
• Получен сертификат, устанавливающий факт открытия месторождения в 2012 году по результатам успешного выполнения программы бурения командой F&M.
• Предложен вариант программы развития проекта для достижения положительного денежного потока от производства в короткий срок и сведения к минимуму требований к капиталу. Инвестиционный капитал в размере всего $50М позволит достичь производства серебра в объёме 2 М унций в год путём открытой карьерной добычи руды.
• SBR ищет $50М для финансирования своего проекта и запуска производства; Инвестиционное предложение (Term Sheet) включено в Приложение 1.
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Mangazeisky
400 km
Silver Bear’s property in Yakutia, Russia represents one of the world’s greatest undeveloped Silver plays. World class grades in the range of 500 g/t to 600 g/t of Ag on average. Some higher grade near surface ore lenses (800 g/t to 1500 g/t Ag) have been identified, and present a unique opportunity for Silver Bear to initiate the project. Exploitation of these near surface lenses greatly reduces mining capital while supporting robust cash flows for quick payback and funding future development. The property hosts a 35 km North/South mineralized Structural corridor. Over 160 mineralized anomalies have been researched along the mineralized corridor.
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Trench K-‐6812 538.3g/t Ag over 3.0m
Grab sample 3080 1200.0g/t Ag
Trench K-‐9003 634g/t Ag over 0.5m
Nizhny Endybal NI 43-‐101 Inferred Resource 13.5Moz @ 133 g/t Ag
Trench K-‐406 521.1g/t Ag over 1.94m
15km
35km Mineralized Structural Corridor
Mangazeisky Licence
Ver5kalny NI 43-‐101 Resource 18Moz @ 514g/t Ag indicated 30.6Moz @ 554g/t Ag inferred
P1 Resources P2 ResourcesTonnes Ag Ore
(x 1,000) 7,880 8,880
Grade g/t Ag 1,717 1,891
tonnes Ag 13,500 16,800Ounces Ag 434,083,601 540,192,926
Case Study: Key Project Highlights
Лицензионный блок компании Silver Bear Resources в Якутии, Россия, является одним из самых больших неразработанных месторождений серебра в мире. Содержание серебра варьируется в диапазоне от 500 г/т до 600 г/т Ag в среднем, достигая высших показателей в мире. Залежи руды вблизи поверхности содержат 800 г/т - 1500 г/т Ag и представляют собой уникальную возможность инициировать проект. Первоначальная эксплуатация залежей руды вблизи поверхности значительно сокращает необходимые начальные инвестиции, генерирует положительные денежные потоки при быстрой окупаемости и позволяет финансировать будущее развитие проекта. На территории лицензированного участка располагается 35 км коридор минерализованных структур, проходящий с севера на юг. Вдоль этого коридора были проведены исследования более чем 160 минерализованных аномалий.
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Trench K-‐6812 538.3g/t Ag over 3.0m
Grab sample 3080 1200.0g/t Ag
Trench K-‐9003 634g/t Ag over 0.5m
Nizhny Endybal NI 43-‐101 Inferred Resource 13.5Moz @ 133 g/t Ag
Trench K-‐406 521.1g/t Ag over 1.94m
15km
35km Mineralized Structural Corridor
Mangazeisky Licence
Ver5kalny NI 43-‐101 Resource 18Moz @ 514g/t Ag indicated 30.6Moz @ 554g/t Ag inferred
P1 Resources P2 ResourcesTonnes Ag Ore
(x 1,000) 7,880 8,880
Grade g/t Ag 1,717 1,891
tonnes Ag 13,500 16,800Ounces Ag 434,083,601 540,192,926
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5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity
Project located in Kryviy Rih, Ukraine; one of the world’s major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East • Surrounded by 7 other opera5ng iron ore mines
Close to Target Markets
Large iron ore deposit with NI 43-‐101 compliant resource* • Two proper5es held – Shymanivske & Zelenivske • Shymanivske – 646 Mt Measured & Indicated resource @ 31.6% iron; addi5onal 188 Mt of
Inferred resource @ 30.1% iron, which will be concentrated to ~68% iron • Poten5al for resource expansion by further drilling of both deposits
Sizable Resource
Good access to skilled labour, power, rail & ports • 35km from city of Kryviy Rih (pop. 750k); paved road to site • 2 km from state-‐owned rail and power lines with surplus capacity & five deep water ports
accessible by rail (140-‐515km)
Excep5onal Infrastructure
Experienced management team with history of crea5ng value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo
Skilled Management
High margins due to close proximity to mul5ple steel mills, rela5ve labour cost advantage and favourable corporate tax rate of 16% • Bankable Feasibility Study for 9.2Mt of high-‐grade 68% iron ore concentrate – NPV of US
$3.5billion and 45.9% IRR
Compelling Economics
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BFS Highlights – High Grade Concentrate High Value, Low Net Cost Iron Ore Development Project
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PEA BFS Annual Production: 7.3 Mt 9.2 Mt Iron Content: 67.0% 68.0%
Estimated Capital Investment: US$896.0 million US$1,094 million
Estimated Operating Expenses: (average FOB) (average at Mine Gate)
US$52.40/t US$41.78/t
US$43.97/t US$29.67/t
Net Present Value (8%): US$3.0 billion US$3.5 billion
IRR: 42.1% 45.9%
Annual Average Cash Flow: US$383 million US$593 million
Projected Payback (8%): 2.2 years 2.2 years
Estimated Mine Life: 28 years 16 years
Proj. Plant Start-Up Q4 2015 Q4 2015
Proj. Revenue Commencement Q4 2015 Q1 2016
Production, Iron Content, NPV, IRR and Cash Flow all increase while Capital Intensity decreases
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Black Iron Value Proposition
Close to Steel Mills in: W.Europe, Turkey, Russia, Asia and Middle East Close to Target Markets
Large iron ore deposit with NI 43-‐101 compliant resource* • 646 Mt Measured & Indicated resource @ 31.6% iron; addi5onal 188 Mt of Inferred
resource @ 30.1% iron, which will be concentrated to ~68% iron • Poten5al for resource expansion to 1.1-‐1.8 Bt
Sizable Resource
Excellent access to skilled labour, power, rail & ports Excep5onal Infrastructure
Experienced management team with history of crea5ng value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo
Skilled Management
High margins due to close proximity to mul5ple steel mills, skilled labour cost advantage and favourable corporate tax rate of 16% • Bankable Feasibility Study for 9.2Mt of high-‐grade 68% iron ore concentrate – NPV of US
$3.5billion and 45.9% IRR
Compelling Economics
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