1. A I M : E M E D T S X : E M D
Presentation 21 March 2013 Presentation at Proactive Conference
2. 2
DISCLAIMER
The information contained in this confidential document (“Presentation”) has been prepared by EMED Mining Public Limited (the “Company”). While the information
contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or
have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this
Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information
being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents,
employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in
respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss,
howsoever arising, from the use of this Presentation.
Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and
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obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this
Presentation which may become apparent.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers.
In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained
herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presentation is made available must make its own independent assessment
of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained
herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.
This Presentation contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance
of the Company, its subsidiaries and its projects, the future price of metals, the estimation of ore reserves and resources, the conversion of estimated resources into
reserves, the realisation of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration
expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of
mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending
litigation and regulatory matters.
Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements.
Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual
results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future
costs of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s annual information form
dated 30 March 2012.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward
looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward looking statements
contained herein are made as of the date of this Presentation and the Company disclaims any obligation to update any forward looking statements, whether as a result of
new information, future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
3. INVESTMENT HIGHLIGHTS
100% ownership of the Rio Tinto Copper Project.
World’s largest VMS system, no drilling for 25 years
Fully equipped site with operating history .
Est. start-up cost $252M with C3 costs of $1.90/lb
Cu for base case restart on the 0.5%/t Cu open pit.
Mandated $225M project financing package,
linked to product off-take to minimise equity dilution
Strong government and community support.
Strong shareholders, board and management
At execution stage for permitting & financing for
start construction H2-13 and production H2-14
Targeting progressive restart of the field
including higher-grade underground mines
3
4. EXCELLENCE IN
MINING, EXPLORATION AND DEVELOPMENT
• IPO 2005: to develop Cu-Au properties in Europe
• Assets:
– one of the largest Cu projects in Europe, within the largest VMS system in the world
– a large Au deposit in Slovakia
• Current Focus: to restart one of the mines at Rio Tinto Copper Project in Andalucia
• Next Projects: other mines at Rio Tinto in Spain, Slovakia & Cyprus
4
6. SUMMARY AND STATUS
6
Market Cap
vs NPV
• Market cap US$234M (£151M) vs NPV10% US$286M-US$633M of Base Case
for the first mine restart at Rio Tinto Copper Project, at $3.00-4.00/lb Cu
2013 Inflection
Points
in Spain*
• Engineering: updated 43-101 in Feb 2013
• Financing: have mandated product-linked financings with Goldman
Sachs (debt) and Xiangguang + Red Kite (equity and debt)
• Permitting Timelines:
• H1: Environmental Plan (AAU) & Administrative Standing (AS)
• Allowing commencement of site preliminary works (Pre-Works)
• H2: Final Restoration Plan (FRP) & Project Approval (Mining Permit)
• Allowing full start-up works (refurbishment and commissioning)
Team in Place
• Shareholders, financiers, board, senior management
• Supportive mining communities, local contractors and consultants
Solid Platform
and Pipeline of
Growth Projects
• Base Case for near term start of cash flow
• Potential brownfields copper mines next to the main mine in Spain
• Slovak Gold deposit has received initial approval of Mining Lease Area
* Represents Company’s best estimate on timing
7. EMED MINING: 2005 TO 2012
$6M IPO on
AIM with initial
Cu exploration
program only
in Cyprus
Started gold
exploration in
Slovakia
Gold discovery in
Slovakia
Acquired an
option over Rio
Tinto Copper Mine
Overcame
litigation and
acquired 100%
of the Rio Tinto
Copper District
Managed
through the GFC
by refining
projects and
finance structure
Rio Tinto
permit
applications
for original
land footprint
Rio Tinto
permit
applications
adjusted for
enlarged land
footprint
7
2005 2006 2007 2008 2009 2010 2011
IPO
on TSX
2012
Completed
consolidation of all land
for restart and expansion
at Rio Tinto
Permit processes
for restart target
production H2-14
and base case
production at end-
2015
8. RIO TINTO: MAJOR COPPER MINING FIELD
• 100% ownership of assets, including the
Cerro Colorado deposit, processing
facilities and all project lands owned or
under option
• Last operated in 2001 and was put on
care and maintenance due to then-
prevailing low Cu prices
• Excellent infrastructure in place:
– Access to towns, roads, port, power & water
– Only 75 km from Freeport McMoRan’s
Atlantic Cu smelter
8
SPAIN
Rio Tinto
SPAIN
9. EXCELLENT INFRASTRUCTURE IN PLACE
9
TAILINGS DEPOSIT
PRIMARY CRUSHER
SECONDARY &
TERTIARY CRUSHING
GRINDING AREA
FLOTATION AREA THICKENER
10. RESERVES & RESOURCES
Cerro Colorado Open Pit
10
RESERVES Mt Cu% Cu ‘000t
Proved 39 0.38 148
Probable 84 0.54 458
TOTAL Ore Reserves 123 0.49 606
RESOURCES Mt Cu% Cu ‘000t
Measured 48 0.38 179
Indicated 155 0.49 754
TOTAL Measured &
Indicated Resources
203 0.46 933
Inferred 2 0.50 10
Source: Behre Dolbear NI 43-101 Technical Report issued February 2013 and based on a 0.2% cut-off grade
RIO TINTO MINE COPPER PROJECT
11. “GROWTH AGENDA” TASKS FOR 2013, SO AS TO
RE-ESTABLISH RIO TINTO AS A MINING DISTRICT
Cerro Colorado Pit, initial target increased reserves
Drilling programs commence on permitting. No drilling below 250 meters & open
San Dionisio & San Antonio Mines , evaluate these higher grade deposits
Validate and interpret database under today’s standards and economics
Tailings Reprocessing Joint Venture, evaluate treatment of precious metal
Metallurgical testing and engineering programs to commence in 2013
11
Rio Tinto is the world’s largest VMS system.
Historical production 1.7Mt Cu, 3.4Moz Au and 56Moz Ag.
No exploration for 25 years.
12. BASE CASE for first mine to be redeveloped –
Cerro Colorado Open Pit
Base Case $3.00/lb $3.50/lb $4.00/lb
Operating cash flow (pre-tax) $Mpa 106 135 173
Project NPV US$M at
- discount rate 10%
- discount rate 7.5%
286
378
427
545
633
786
12
1. Base Case assumes extraction of existing ore reserves at 9Mtpa only over 14 years. Target Case 15Mtpa.
2. NPV is after deducting project acquisition costs (which is $142M in the $3.50 case) paid out of future cash
flows and $91M of site improvement and closure costs.
3. Scenarios under $3.50/lb assume 50% of Base Case of years 2-7 are hedged at circa $3.50/lb.
4. Operating Costs (C1): assumed $1.56/lb
5. Capital, Operating and Closure Costs (C3): assumed $1.90/lb
6. Estimates independently reviewed in accordance with Behre Dolbear NI 43-101 Technical Report issued in
February 2013
13. STEPS TO START UP 9MTPA PRODUCTION
WHILST DRILLING TO EXPAND ORE RESERVES
13
Environmental Plans (AAU)
Administrative Standing of
Mineral Rights (AS)
Environmental Bonding
Project Finance and
Product Off take
Bankable Engineering &
Technical Studies
Production Planning and
Expansion Studies
Operations Development
Operating Licences
Phase 1 Project Execution
to start up at 5Mpta ***
Phase 2 Project Execution
& Commissioning to 9Mtpa
2012 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Documentation, D. Diligence, Closing
Feasibility Studies
Capex, Opex, Schedule.
Production Planning to 9Mtpa , Drilling,
Expansion Studies beyond 9Mtpa
Systems, Contracting, Recruitment & Training
Operating Licenses are processed in parallel with project execution works
Phase 1: 3 months Pre-Works
and 9 months Refurbishment
Phase 2 Production commissioning and ramp-up
Final Restoration Plan (FRP)
Project (Mining Permit)
Environment Plans (AAU): await approval.
Everything has been submitted.
Project already cleared by IGME. CEDEX
requires further due diligence on tailings
Flows from Restoration Plan.
Administrative Standing: we
believe we have met the Legal,
Technical and EconomicTests
Flows from AAU Approval
Drilling to increase
Resource/Reserve
Target to Increase Reserves on Open Pit to trigger production higher than 9Mtpa
Target to report Resources on higher-grade underground mine/s
*** the triggering of Phase 1 depends on the timing of formal confirmation of permits and finance
THIS SYMBOL DENOTES THE EXPECTED TIMING
OF FINAL FORMAL APPROVAL.
FOR INSTANCE, WITH THE AAU THE PUBLIC
COMMENT PERIOD HAS BEEN CONCLUDED.
ALSO THE REGULATORS HAVE ADVISED DRAFT
CONDITIONS OF APPROVAL OF AS AND AAU
AND WE AWAIT THE GAZETTING OF APPROVALS.
SUBJECT TO FINANCE, PHASE 1 PRE-WORKS CAN
PROCEED AFTER FORMAL APPROVAL OF AAU
AND AS AND FULL PHASE 1 START-UP WORKS
CAN PROCEED UPON FORMAL APPROVAL OF
FRP AND MINING PERMIT.
14. FINANCE STRATEGY
14
USES OF FUNDS US$M
Repairs, plant improvements, contingency and activities prior to cash-flow generation 189
Bonding for environmental and social (this is finalised after approval of the FRP) 29
Counterparty Settlements 20
Working capital 14
TOTAL 252
All estimates in accordance with Behre Dolbear NI 43-101 Technical Report issued February 2013
Planned working capital together with finance facilities being designed with Goldman
Sachs, Xiangguang and Red Kite potentially covers $252M when “fully-bankable”.
This project start-up finance plan assumes $27M of additional capital is arranged
from non-debt (off-take-linked, royalty linked or ordinary equity) sources by mid-2013.
15. 15
GROWTH PIPELINE
– To optimise open pit
resources for higher gold
prices
– To consider the impact of
potentially higher gold prices
on the economics of deeper
zones of mineralisation
– To keep testing Hodrusa Field
– To re-start drilling after
addressing higher
priorities elsewhere
Slovakia, plan to develop
1M oz gold discovery:
Cyprus, potential for
economic discoveries
DETVA
GROWTH
RIO TINTO
CYPRUS
– To optimise open pit reserves of 123 Mt
for copper price higher than $2/lb
– To convert more of 203 Mt open pit
resources to reserves
– To increase open pit resources of 203 Mt
– To test potential to recycle tailings
Spain, plan to restart the whole Rio Tinto mining field:
– To re-evaluate the San Dyonisio and San
Antonio higher-grade underground mines
– To test other deposits RTZ reported on the
company’s Rio Tinto Mine property
– To test targets on one or more of the
surrounding mineral concessions
Gold Project
100%
Copper Project
100%
Copper
95%
16. ONE OF BEST PERFORMING COPPER SECTOR
SHARES OVER THE LAST 2 YEARS
Relative Share Performance Since December 17, 2010 – Copper Developers and Producers
The sector performed poorly in 2012 in stock market terms
EMED has outperformed the majority of TSX and TSXV listed copper exploration, development and
producing companies since the TSX IPO in December 2010
Source: Capital IQ, as of February 21, 2013
-94%
-92%
-90%
-88%
-85%
-82%
-79%
-78%
-76%
-76%
-74%
-74%
-73%
-68%
-65%
-60%
-59%
-58%
-57%
-49%
-48%
-48%
-46%
-43%
-42%
-40%
-36%
-34%
-33%
-33%
-31%
-30%
-25%
-16%
-11%
-7%
7%
8%
37%
69%
110%
111%
Baja
AQM
Intrepid
Mercator
Hana
Coro
International PBX
Copper One
Northern Dynasty
CuOro
Constantine
Sarengeti
Ivanhoe
Thundermin
Candente
VMS Ventures
Los Andes
Duran
Western Copper
Copper Mountain
Capstone
Median
HudBay
Amerigo
Polymet
Taseko
Augusta
Yellowhead
Abacus
Lundin
Redhawk
Katanga
Duluth
First Quantum
Inmet
Nevada Copper
Copper Fox
Imperial
EMED
Panoro
Lumina
NGEx
17. SUMMARY REGISTER OF SHAREHOLDERS
FULLY-DILUTED 1,252M SHARES ON ISSUE AT 31 DECEMBER 2012
OVER 5% OF THE OWNERSHIP IS BASED IN ANDALUCIA, SPAIN
17
Board and Management 6%
Resource Capital Funds
(USA/Australia, mining investor)
13%
Yanggu Xiangguang Copper Co. Ltd.
(strategic investor and off-take customer)
11%
RBC Asset Management
(Canada, institutional investor)
8%
Rand Merchant Bank
(UK/Australia, mining bank)
5%
Red Kite
(USA, metals trader and financier)
5%
Rumbo 5 Cero
(Andalucia, Spain. Investment group)
4%
Astor Holdings, formerly MRI Group
(Switzerland, metals trader and financier)
3%
Approx. 25 other shareholders owning > 0.5% of shares 33%
Approx. 800 other shareholders owning < 0.5% of shares
Many of these holders are broker nominee accounts on behalf of others
12%
18. Ronnie Beevor - Non-Executive Chairman
Director of several mining companies
Former MD, investment banking, Rothschild Australia
DIRECTORS
18
NON-EXECUTIVE DIRECTORS
Harry Anagnostaras-Adams - Managing Director
John Leach - Finance Director
Jasper Bertisen
Principal of Resource Capital Funds and engineer
Roger Davey
Mining Company director and former Senior Mining Engineer at Rothschild
Bob Francis
Former senior partner of Deloitte & Touche specialising in mining
Harry Liu
Vice President Xiangguang responsible for corporate development
Ashwath Mehra
CEO of Astor Group and commodities trader
Jose Sierra
30 years minerals policy & regulation, Spain (Director-General Mines) and EU
19. DIRECTORS & SENIOR MANAGEMENT
Harry Anagnostaras-Adams - Managing Director
Founder of EMED Mining
Serves (or has served) as non-executive Director of many other
public and private companies
Demetrios Constantinides - External Relations
30 years experience in private and government roles in Europe
Ron Cunneen - Group Geologist
Over 25 years exploration, start-up and operational experience
Bill Enrico - Chief Operating Officer
20 years general management start-up and operational experience
John Leach - Finance Director
30 years experience in senior financial and executive positions
within the mining industry
Rob Williams - Group Development
20 years project start-up and management experience
19
SENIOR MANAGEMENT
20. A I M : E M E D T S X : E M D
Presentation 21 March 2013 Presentation at Proactive Conference