Objective Capital Global Mining Investment Conference - Gold: Brian Moritz


Published on

Junior Gold Company focused on Africa
Global Mining Investment Conference
30 Sep 2009
Junior Gold Company focussed on Africa
by Brian Moritz, Chairman-Goldplat plc

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Objective Capital Global Mining Investment Conference - Gold: Brian Moritz

  1. 1. London Global Mining Investment Conference Stationers Hall, London Wednesday 30 th September 2009 www.ObjectiveCapitalConferences.com 9.55 Gold Brian Moritz Chairman Goldplat plc
  2. 2. Global Mining Investment Conference Junior Gold Company focussed on Africa Presentation by Goldplat plc Chairman, Brian Moritz 30 September 2009
  3. 3. Goldplat Overview <ul><li>AIM quoted profitable and highly cash generative gold producer in Africa </li></ul><ul><li>Strategy to create a mid-tier mining house focussed on gold production, leveraged through revenues generated from its gold recovery operations </li></ul><ul><li>Three primary assets: </li></ul><ul><ul><li>South Africa - gold recovery plant </li></ul></ul><ul><ul><li>Ghana - gold recovery plant </li></ul></ul><ul><ul><li>Kenya - Kilimapesa Gold mining project </li></ul></ul>production totalled 21,068 oz Au for FY2009 “ Goldplat is profitable, therefore development is predominantly financed through its recovery operations”
  4. 4. Goldplat Recovery (Pty) Limited – SA <ul><li>Market leader in precious metal recovery from by-products of the mining process such as woodchips, fine carbon and waste grease </li></ul><ul><li>Provides an economic method for mines to dispose of waste materials while meeting environmental obligations </li></ul><ul><li>Produced 13,960 oz Au for FY2009 - generating significant cash flow and profit </li></ul><ul><li>Stocks of materials for processing increased to record levels of circa 53,000 oz Au </li></ul><ul><li>Continual upgrading of machinery enabling materials to be processed more efficiently - enhances economies of scale </li></ul><ul><li>Compliant with South Africa’s Black Economic Empowerment (‘BEE’) rules </li></ul>
  5. 5. Gold Recovery Ghana Limited <ul><li>Gold recovery plant at the free port of Tema, Ghana (Free Zone Status with accompanying tax benefits) </li></ul><ul><li>Strategic location provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D’Ivoire, Senegal, DRC and Mauritania </li></ul><ul><li>Gold production increased 42% to 7,108 oz Au (2008: 4,083 oz Au) </li></ul><ul><li>Further improvements scheduled to maximise the plant’s efficiency and production - a new fluidised bed carbon incinerator was installed July 2009 </li></ul><ul><li>89,000 tonnes of artisanal tailings stockpiled estimated to contain up to 35,000 oz Au - further stockpiles being evaluated </li></ul>Strong relationships with major mining houses
  6. 6. Kilimapesa Gold Ltd, Kenya <ul><li>Project located within historically producing Migori Archaean Greenstone Belt in south west Kenya – now 100% owned </li></ul><ul><li>Commenced processing development ore in January 2009 </li></ul><ul><li>First sales due Q4 2009 - the mine will be developed using revenues from gold sales </li></ul><ul><li>Targeting high grade veins reached through adits at Kilimapesa Hill </li></ul><ul><li>Currently defining a JORC compliant resource – planning to expand production in stages with target of 20,000 oz per annum </li></ul><ul><li>Investigating other known high grade areas within the licence area with surface mining potential </li></ul>
  7. 7. The Increasing Gold Price As we all know, the gold price goes from strength to strength! <ul><li>Gold price is currently consolidating near the psychologically important US$1,000 barrier </li></ul>
  8. 8. The Decreasing Gold Price <ul><li>Strengthening South African Rand against the Dollar: R7.45 = $1 </li></ul>Viewed from Johannesburg the graph is not the same
  9. 9. Falling Gold Production <ul><li>The output of the world’s gold mines fell by 3.6% last year </li></ul><ul><li>More than half the 88-tonne fall in production was accounted for by a slump in gold mining in Indonesia </li></ul><ul><li>Supply from South Africa, recently the world’s largest producer, fell by 14% partly due power shortages </li></ul><ul><li>Australia’s output also fell by 14% amid reports that some fledgling mining firms faced closure because of scarce credit </li></ul><ul><li>Of the world’s six big producers, China, Russia and Peru all increased output </li></ul><ul><li>Investment taking over from jewellery as main user of gold </li></ul>
  10. 10. African Gold Production <ul><li>Africa contributes over 20% of world gold production </li></ul><ul><li>South Africa remains dominant in production, as well as finance and expertise for the whole continent </li></ul><ul><li>Ghana has cemented its position as the continent’s second largest producer </li></ul>
  11. 11. Factors of Operating in Africa <ul><li>The investment climate – are governments pro foreign direct investment? </li></ul><ul><li>Are all countries the same – political, economic and social factors to consider, including corruption? </li></ul><ul><li>Mining codes – improvements over the last few years </li></ul><ul><li>Security of tenure – is the mining right secure? </li></ul><ul><li>Infrastructure – roads, water supply, power grids, telecommunications </li></ul><ul><li>Artisanal miners - “Go where the gold is” </li></ul>
  12. 12. Operating in South Africa <ul><li>Positive </li></ul><ul><li>Long history of mining </li></ul><ul><li>World class design and construction facilities </li></ul><ul><li>Skilled labour available at all levels </li></ul><ul><li>Low operating costs by European standards </li></ul><ul><li>Good infrastructure </li></ul><ul><li>Sophisticated banking system with availability of mining finance </li></ul><ul><li>Equity investment available through JSE and AltX </li></ul><ul><li>A great climate, good hotels and restaurants! </li></ul><ul><li>Negative </li></ul><ul><li>Exchange control </li></ul><ul><li>Bureaucracy </li></ul><ul><li>Over-valued Rand </li></ul><ul><li>Inflation </li></ul><ul><li>Power and water problems </li></ul><ul><li>Crime </li></ul>
  13. 13. South African Mining Law <ul><li>The Minerals and Petroleum Resources Developments Act – effective 1 May 2004 </li></ul><ul><li>Surface rights and mineral rights </li></ul><ul><li>“ Old Order” and “New Order” rights </li></ul><ul><li>Prospecting rights </li></ul><ul><li>Mining rights </li></ul><ul><li>Changes of control over mineral rights </li></ul><ul><li>Black Economic Empowerment </li></ul>
  14. 14. Corporate Issues for Junior Miners <ul><li>Fund raising </li></ul><ul><li>Professional advisers </li></ul><ul><li>Liquidity </li></ul><ul><li>The share price </li></ul><ul><li>Corporate governance </li></ul><ul><li>IFRS </li></ul><ul><li>Why do we do it? </li></ul>
  15. 15. Contact <ul><li>Brian Moritz </li></ul><ul><li>Goldplat plc </li></ul><ul><li>Tel: +44 (0) 20 7318 0459 </li></ul><ul><li>Mobile: +44 (0) 7976 994300 </li></ul><ul><li>Email: brian@36doverstreet.co.uk </li></ul>
  16. 16. London Global Mining Investment Conference Stationers Hall, London Wednesday 30 th September 2009 www.ObjectiveCapitalConferences.com Brian Moritz Chairman Goldplat plc Brian Moritz is a former Senior Partner of the London office of Grant Thornton, the 5th biggest accounting firm worldwide. In the late 1990s Mr Moritz initiated Grant Thornton’s move into the junior PLC area by forming a new Capital Markets division and registering as a Nominated Adviser for AIM companies. While Mr Moritz chaired that division, Grant Thornton floated more than 100 companies on AIM, of whom the majority were his personal contacts, concentrating on the natural resources sector. Mr Moritz was previously Chairman of Metal Bulletin PLC and African Platinum PLC before they were acquired by Euromoney and Impala Platinum respectively. Mr Moritz is currently Chairman or Non Executive Director of a number of smaller public companies, most of which are listed on the AIM and operate in mining and exploration in Africa.