1 / 21

The Rapu Rapu Project

Get an overview of Lafayette Mining Limited's Rapu Rapu Project, including information on the people involved, project location, social and political aspects, statistics, prospects, schedule, financing, and company valuation.

cheaton
Download Presentation

The Rapu Rapu Project

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Rapu Rapu Project Lafayette Mining Limited

  2. Overview • People • Project - Location - Description - Social and Political - Statistics • Prospects - Schedule - Financing - Company - Valuation

  3. Management • Andrew McIlwain – CEO with a proven track record of project management and operations • David Ronayne Mahony – Executive Director with extensive finance and banking background • Rod Watt - Country Manager with more than 7 years in-country experience

  4. Location

  5. Ungay Pit Resource

  6. Mine Plan

  7. Statistics • First new mine in the Philippines • Favourable tax incentives • Offtake Agreement for all production • Average Annual Production 10,000 t Copper 50,000 oz Gold 14,000 t Zinc 600,000 oz Silver

  8. Support Pres. Gloria Arroyo, Gov. Bichara and local leaders meet on Rapu Rapu

  9. Support VILLAGE - MOA’s with villages – relocation, mine development & operation • Land purchase complete PROVINCIAL - MOA with Province, Public Hearing and Senate Inquiry - Public support from Governor FEDERAL • Seeking foreign investment through resource development • President Arroyo publicly endorsed the project - ECC & EPEP signed by DENR - Declaration of Mining Feasibility issued by MGB

  10. Project Financials • Copper cash costs US $0.30/lb • Gold cash costs US $53/oz • Zinc cash costs US $0.11/lb Add back by-product credits: • Copper cash cost < US $0.05/lb or • Gold cash cost < US $20/oz

  11. Project Financials • Capex: US $45m (owner operated) • NPV @10%: A$ 75m - LAF mkt cap A$ 24m • IRR: 35% • Payback: < 2 years

  12. Advantages • High Margin Operation • Lower quartile of cost curve • Profitable throughout the metal price cycle • Medium Size • Capex under US$50 million • Short development timetable • Simple and readily achievable financing • Solid Partnership • LG International Corp • KORES

  13. Advantages • Complimentary Revenue Streams • Liquid markets for all products (Cu, Au, Zn, Ag) • Low Operating Risk • Conventional technology • Low risk mining • Low Political Risk • Established mining culture and laws • Export of commodities • Repatriation of earnings

  14. Project Schedule • Land purchase complete Qtr 1 ’03 • Credit approval Qtr 2 ‘03 • Commence construction Qtr 2 ‘03 • First ore mined Qtr 4 ‘03 • Plant commissioned Qtr 2 ’04

  15. Financing • Capex: US$45m(owner operated scenario) • Indicative Underwritten Project Debt: US$30m • plus interest capitalisation • subject to credit approval • LG/Kores: US$10m • Additional funding: • supplier finance/BOO contracts for power plant, camp and design plus mine fleet, prestrip cost deferral • value estimate up to US$10m

  16. Capital Structure • Lion Selection Group 32.6% • Bell Potter Nominees 14.1% • KAP Investments 4.1% • National Nominees 3.6% • Allundy 3.4% • Commonwealth Custodians 3.3% • Issued Shares 303.7m • Top 20 74.3% • Total Shareholders 1,304

  17. Exploration Outcropping massive sulphides 18 km strike length of untested host horizon High grade sulphides 28 outcrop samples averaging 8.6 g/t Au

  18. Valuation • LAF market cap @ 8cps A$ 24m • Rapu Base Case NPV @ 10% A$ 75m • NPV / Issued Cap A$ 0.24 • Hixbar and U/G NPV @ 10% A$ 15m • Total NPV A$ 90m • Total NPV / Issued Cap A$ 0.29

  19. The Rapu Rapu Project Lafayette Mining Limited

More Related