RED ROCK RESOURCES Plc - AGM Presentation London Stock Exchange AIM Listed: RRR
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RED ROCK RESOURCES Plc
AGM Presentation
London Stock Exchange
AIM Listed: RRR
www.rrrplc.com Investor Presentation: December 2018
RESOURCE
DRIVEN GROWTH
DELIVERING RESULTS
www.rrrplc.com Investor Presentation: December 2018 2
Natural Resource Developer
Revenue Foundations Investment Upside
• Manganese Production
• Colombian Gold Royalty • Gold JORC Resource - Kenya
• Significant Cash Inflows £1.2m Revenue • DRC Copper / Cobalt
• Gold Exploration - Ivory Coast
£78k Profit • Oil Exploration - Benin
Project Upside
PRIMED FOR PERFORMANCE
www.rrrplc.com Investor Presentation: December 2018 3
Steelmin Ltd.
Bosnia
Ivory Coast Migori Gold
Four Points / Benin Kenya
Colombia
Copper/Cobalt/Gold
DRC
Jupiter Mines
South Africa
DIVERSE ASSET PORTFOLIO
www.rrrplc.com Investor Presentation: December 2018 4
Operations Update
Jupiter Mines Steelmin Ltd
IPO Completed
RRR Holds 22% equity stake
14.5% HY Dividend Yield
Entered Production in 2018
£2.4 Million Received in 2018
Seeking trade partners
JMS Stake Value to RRR ~£2.8m
Colombia Disposal Kenya Gold Project DRC – Copper/Cobalt
100% Economic Interest DD Completed
Royalty - $3M total Value JV Negotiations Underway 3 JV Tenements Secured with VUP JV
Est ~$50k/qtr + rising to $100k/qtr Pending Licence Renewal 3 Additional Congo Galaxy Tenements
Loan Note - $750k Received in Q2 Pure Upside Potential Initial Exploration Underway
Substantial 2019 Newsflow Expected
MULTIPLE HIGH IMPACT EVENTS
www.rrrplc.com Investor Presentation: December 2018 5
Jupiter RRR: 0.95%
Mines
Manganese Producer – South Africa
Iron Ore Assets – Western Australia
www.rrrplc.com Investor Presentation: December 2018 6
Jupiter Mines
JMS Stake in Tshipi Mine
• Leading Global Manganese Producer – 3rd Largest
• Relisted on ASX April 2018 as A$800m Company
49.9% Ntsimibintle Mining 37.1%
OM Holdings 13%
• One of Largest and Shallowest Resources Worldwide
• 163MT @ 37.1% Mm + Top Cut of 145MT @ 31.58%
• Experienced Management Team
• Simple Drill/Blast + Load/Haul Mining
• 8km Private Rail Siding Loop (5mtpa) – Exports from 4 Ports
Capacity of 3.6Mtpa Production
Producing: 60 Years Life of Mine – 418Mt Resource
over 3Mtpa Reliable On Site Power Generation
Located in Kalahari Basin – South Africa
JMS Alone Supports RRR Market Cap
Well Established Offtake Channels
www.rrrplc.com Investor Presentation: December 2018 7
RRR Jupiter Investment
18.5M £2.8M 0.95%
Shares Valuation Stake
$955k to RRR 2017
Focus on production optimisation
$3.2m to RRR in 2018
Goal to increase stake in Tshipi
(IPO + distributions)
14.5% Half-Year Dividend Yield
$1.2m projected to RRR in 2019
www.rrrplc.com Investor Presentation: December 2018 8
Results - Tshipi
1H2019 1.88MT US$414m US$205m US$216m
FY2018 3.34MT US$612m US$259m US$116m
Production Revenues EBITDA Cash
BLUE CHIP MINING ASSET
www.rrrplc.com Investor Presentation: December 2018 9
DRC
COPPER/COBALT JV
Exploration Underway
www.rrrplc.com Investor Presentation: December 2018 10Democratic Republic of Congo
o One of the most underexploited and mineral
66%+ of
rich countries World’s
o Estimated $24 trillion of untapped Cobalt
Mined in
cobalt/copper/diamonds/gold DRC
o Major supplier of the world’s cobalt needs
o Prolific and historic copper producer
Copper Cobalt
o Demand expected to exceed o Significant gap between supply and 220,000
30,000
supply after 2019 demand is projected after 2020
26,000 o Constrained supply – single 180,000
o Uses:
‘000 tonnes
22,000 traditional source
tonnes
• Construction o Uses:
140,000
18,000
• Electronics • Batteries
14,000 100,000
• Cables and wires • Aircraft engines
10,000
• Coins • Corrosion/wear resistant 60,000
2014
2015
2016
2017e
2018e
2019e
2020e
2021e
2022e
2023e
2024e
2025e
2017
2018e
2019e
2020e
2021e
2022e
2023e
2024e
2025e
alloys
• Jewelry
Supply Demand Supply Demand
www.rrrplc.com Investor Presentation: December 2018 11Copper-Cobalt JV
o Multiple Copper-Cobalt Tenements in Katanga Segment 50.1%
of the Central African Copperbelt
o All three assets are mining/production licenses
RRR Share in JV
o Enables fast-track to production and cash flows Bring Minerals SAU 24.9%
Vumilia Pendeza SA 25%
o Access to some of the best Cu/Co tenements in the world
Kumukongo License – PE663
5.3km² located 20km SE of Kolwezi
Lies at Western end of Kansuki structural trend
Evidence of artisanal mining across the property
Musonoi License – PE4962
1.7km² located 3 km W of Kolwezi
Further historical data being sought
Lies in Kolwezi Klippe – most prolific cooper/cobalt district in DRC
Several significant neighbors Established mining area with good infrastructure
7 major cobalt/copper deposits adjacent / within 5 km
Surrounded by Majors – Glencore/Gecamines/Chinese Groups
Target potential of 400,000 tons of Cu and 25,000t of Co
Kasombo South License – PE2360 Regional grades range from 3-5% Cu and 0.5-1% Co
2km²² located 5km W of Lubumbashi Musonoi “Super Deposit” forms part of license
Lies at the eastern part of the Kasonta anticline
Anticline hosts well known copper/cobalt deposits
Nearby FE Limited (ASX Explorer) reported 25m @ 3.5% Cu
Less historical activity relative to other licenses TREMENDOUS OPPORTUNITIES
www.rrrplc.com Investor Presentation: December 2018 12Migori Gold RRR: 100%
Project
Gold Exploration – JORC Resource – Kenya
www.rrrplc.com Investor Presentation: December 2018 13Migori Gold Project JORC Resource:
1.2Moz
Avg Grade:
o 100% Economic Interest 1.3 g/t
o Located in Kenyan Greenstone Belt
o JORC Gold Resource of 1.2Moz @ 1.3g/t
o Longstanding Court Case with Kenyan Ministry of Mining Resolved
o Licence Restoration Expected Imminently
o Potential Partnership / JV Opportunities Developing
Prospect JORC Classification Mt g/t Au Moz
KKM Indicated & Inferred 17.8 1.01 0.58
KKM-West Indicated & Inferred 4.02 1.04 0.14
Nyanza Indicated & Inferred 2.3 2.73 0.20
Gori Maria Indicated & Inferred 3.8 1.16 0.14
MK Indicated & Inferred 1.4 3.07 0.13
Total 29.4 1.26 1.2
PURE UPSIDE POTENTIAL
www.rrrplc.com Investor Presentation: December 2018 Slide: 14Four Points
Mining
Gold Producer – Colombia
www.rrrplc.com Investor Presentation: December 2018 15Four Points Mining
o High Grade Gold mine and Mill at El Limon, Colombia Avg Grade:
o Operated by Para Resources (CVE:PBR) 8 g/t
o Ore Sourced from Mine + Regional Suppliers Mining Costs:
o Completed $7m Upgrade Program – Mill to 225tpd+ ~$156/t
o Forecasted production increase in Q4 over Q3
o Increasing royalty payments expected in 2019
Royalty Estimates to RRR
2018: $50,000
2019: $300,000
2020: $525,000
INVESTMENT PAYING OUT
www.rrrplc.com Investor Presentation: December 2018 16RRR: 22%
Steelmin
Ferrosilicon Production – Bosnia
www.rrrplc.com Investor Presentation: December 2018 17Steelmin Ltd.
22% RRR Equity Stake in Steelmin
o Refurbished Ferrosilicon Smelter Complex
o Built in Yugoslavia in Early 1970s
o Two Electric Arc Furnaces on Site
o Total Capacity of 48,700t of Ferrosilicon + 9,700t of Microsilica
Access to Cheap Hydro Power – Targeting €36m Revenue + €7m EBITDA
Pending Contract Negotiation
Low Cost Brownfield Investment
Located in Jajce, Bosnia Herzegovina Strategic Position Close to Euro Customers
www.rrrplc.com Investor Presentation: December 2018 18Steelmin – Background
• Plant Built in 1897 by Wacker Chemie - DE
• Owned by Electrobosna – Closed after War
• Steelmin Ltd Refurbished - ~€18m Spent to Date
Primary by-product of FeSi Production
Used to Improve Steel Products Microsilica Used to Make High Performance Concrete
FeSi Contains 75% Silicon + 25% Iron €200/t Utilized in Refractories and Ceramics
~$1,500+ Adds Electrical Conductivity
Alternate Main Product to FeSi
Improves Corrosion Resistance Silicon Metal
98-99% Si – Higher Purity
Demand Growing 4.7% CAGR $2600+/t
Used in Aluminum/Silicones/Solar
www.rrrplc.com Investor Presentation: December 2018 19Furnace V
Furnace IV
48MW Elkem (Norwegian) Furnace
o Built 1973
o Largest Furnace 30MW Tagliferri (Italian) Furnace
o Est. 28,560t FeSi/pa o Built 1971
o Has produced both silicon and FeSi
o Est. 20,160t FeSi/pa
www.rrrplc.com Investor Presentation: December 2018 20Other Projects / Investments
RRR:80% RRR:100% RRR:0.35% RRR:5.11% RRR:1.57% RRR:2.67%
Mining Mining + Oil & Gas
Exploration Oil & Gas Mining Exploration
Ivory Coast Battery Metals
DRC Elephant Oil Para Resources Amulet Diamond
Regency Mines
(AIM: RGM) Corporation
Gold/Copper/Cobalt Gold Various Oil Gold Diamonds
Multiple licenses covering Cu/Co Early Stage Gold Exploration Natural Resource Developer Onshore Exploration – Benin In Colombia, Arizona and Brazil Option to Acquire 100% of
and Gold prospective areas Underexplored with Huge Battery Metals/Technology Underexplored West African Multiple Gold Assets Kimberlite Operation – Botswana
80% Interest Potential Metallurgical Coal Transform Margin Burgeoning Gold Producer Existing Plant in Place – 100tph
Early Stage Birmian Greenstone Belt Base Metals Activity Planned for 2019 Bulk Sampling Underway
SIGNIFICANT UPSIDE POTENTIAL
www.rrrplc.com Investor Presentation: December 2018 21Key Takeaways Multiple Sources of Cashflow Deep Project Portfolio Significant Exploration Upside www.rrrplc.com Investor Presentation: December 2018 22
Contact Details
Positioned For
Outperformance
Exploration@rrrplc.com
www.rrrplc.com
www.rrrplc.com Investor Presentation: December 2018 23DISCLAIMER
These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any
securities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities. The
Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buy securities in the
Company. If any person is in doubt as to the contents of this presentation, or wishes to obtain advice as to the investment merits of the
Company’s securities, he should seek independent advice from a person who is an authorized financial services provider.
No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or
the completeness or accuracy of such information. The information contained in these Slides and the accompanying verbal presentation is in
the public domain, however no representation or warranty, express or implied, is given by or on behalf of the Company, its shareholders,
directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides
and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence,
but excluding any liability for fraud).
The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer is
unlawful. The distribution of the Slides in some jurisdictions may be restricted by law and persons into whose possession this document comes
should inform themselves about and observe any such restrictions.
Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that necessarily involve risks
and uncertainties. Forward-looking statements may generally be identified by the use of terminology such as “may”, “will”, ”expect”, ”intend”,
“plan”, “estimate”, “anticipate”, “believe”, or similar phrases. Other than statements of historical facts, all statements, including, among others,
statements regarding the future financial position of the Company, business strategy, projected levels of growth in its market, projected costs,
estimates of capital expenditures and plans and objectives of management for future operation, are forward-looking statements. The actual
future performance of the company could differ materially from these forward-looking statements. Important factors that could cause actual
results to differ materially from these expectations including known and unknown risks. Undue reliance should not be placed on these forward-
looking statements.
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