Headquarter is in Stockholm, Sweden. The Company also has an
Transcription
Headquarter is in Stockholm, Sweden. The Company also has an
OVERVIEW OF SOTKAMO SILVER ■ Headquarter is in Stockholm, Sweden. The Company also has an operations office in Oulu and a field office in Sotkamo, Finland ■ The primary listing is on the NGM Equity stock exchange in Stockholm with secondary listing on the Nasdaq OMX Helsinki ■ Current market capitalization is about € 20 million ■ The Company had € 2.9 million of net cash at the end of Q2 2013 1 BENEFTS TO INVEST IN SOTKAMO SILVER • EXPERIENCED MANAGEMENT - WE DELIVER • LOW TECHNICAL AND GEOLOGICAL RISK • PROVEN MANAGEMENT TEAM • FORECASTED OPERATING CASH FLOWS ARE STRONG • JORC RESERVES AND RESOURCES • ADITIONAL EXPLORATION TARGET AND POTENTIAL (JORC) 2 2 PRESS RELEASE 130828 • THE VOLUME OF THE EXPLORATION TARGET IS MORE THAN 20 M TON MINERAL RESOURCES • TOTAL 33 M TON (resources + potential) • THIS INCREASE THE TARGET SUBSTANTIALLY “The result of this study shows clearly the great potential, which Silver Mine deposit has towards depth and strike. This increases the potential of the Silver Mine projektet and our expectations of the deposit quality. I am certain that the Silver Mine will have much longer life time than the actual reserves shows today.” 3 Comments Timo Lindborg, CEO 3 INCREASED POTENTIAL DOWN TO - 2 000 M Open Pit Mine Decline Planned Decline Total Mineral Resource (JORC) 13 Mill.t, Ag 60 g/t Ore Reserve (JORC) 3 Mill.t, Ag 86 g/t 500 m Drill Intersections R-110: 27.25 m, Ag 92 g/t R-106: 23.40 m, Ag 148 g/t Exploration Target (JORC) >20 Mill.t, Ag 60 g/t 2 Km 4 SENIOR MANAGEMENT HAVE EXTENSIVE MINING EXPERIENCE IN THE NORDIC REGION Timo Lindborg – President & CEO ■ Doctor of Technology, MSc ( Civil Engineering) and BSc (Geology). Professor at Oulu University ■ 35 years experience with mining projects and Nordic companies ■ Former Chief Executive Officer of Endomines AB, Endomines Oy and Kalvinit Oy ■ Extensive experience in silver and gold mining projects ■ Born 1955 pic Ilkka Tuokko – Managing Director Sotkamo Silver Oy ■ MSc in Geology and mineralogy from Oulu University ■ More than 30 years experience in mining projects, precious metals and international mining companies ■ ”Competent Person” status, according to Australian JORC and Swedish SveMin ■ Former Group Geology & Mining Manager of Mondo Minerals B.V. ■ Born 1950 5 BOARD OF DIRECTORS HAVE EXTENSIVE MINING EXPERIENCE IN THE NORDIC REGION Mauri Visuri – Chairman of the Board (since 2011) ■ MSc in Economics from the University Of Vaasa ■ Bachelor of Science in Machinery Engineering from Vaasa Polytechnic ■ Extensive experience in mining and process industry ■ Mr. Visuri is also Managing Director of Teknoventure Oy ■ Born 1957 Teuvo Jurvansuu – Board member (since 2010) ■ 35 years experience in the mining industry ■ Worked in various mines in Finland during that period including Vihanti, Keretti, Enonkoski and Pyhäsalmi mines ■ In 2001 he entered the position of Managing Director of Pyhäsalmi Mine Oy and at the same time, Inmet Finland Oy (retired in 2009) ■ Born 1948 Joanna Kuntonen-van ‘t Riet – Board member (since 2012) ■ MSc in Environmental Sciences from the University of Helsinki ■ Over 13 years experience in environmental and safety management in the mining industry ■ Presently Environmental and Safety Manager at Northland Resources ■ Born 1974 Jarmo Vesanto – Board member (since March 2013) ■ MSc (Geology and Mineralogy) ■ Member of the Australian Institute of Mining and Metallurgy ■ More than 30 years experience in mining and exploration including 10 years in Australia and Canada with Outokumpu Oyj ■ Currently General Manager - Finland at Altona Mining Ltd ■ Born 1954 6 RAMP-UP PHASE WILL BENEFIT SIGNIFICANTLY FROM THE EXISTING WORK Mining plan ■ The existing mine decline of 2.6 km and ramp access (25 m2) , as well as the vertical ventilation shaft extending 350 meters from the surface, are both already in place and ready for operational use. ■ The projected mine life is 9 to 10 years based on current estimated mineable ore reserves of approximately 3.0Mt Open pit Existing ventilation shaft Existing Mine Decline (brown) Backfill with waste rock Year Colour 2014 Green, Brown 2015 Red 2016 Yellow 2017 Blue 2018 Black 2019 – 2021 Grey Planned extension of the decline (green) 7 REPUTABLE KEY SHAREHOLDERS WITH EXTENSIVE EXPERIENCE IN MINING SECTOR INVESTMENTS % ownership Market value (EUR’m) Teknoventure Oy 14.2 3.5 Finnish Industry Investments Ltd 14.2 3.5 Timo Lindborg (through a company) 10.2 2.5 Jouko Jylänki 8.9 2.2 Ilmarinen Mutual Pension Insurance Company 8.5 2.1 Total top five shareholders 56.0 13.9 Other shareholders 44.0 10.9 100% 24.8 Top five shareholders Total 8 ORE RESERVES AND MINE ECONOMICS KEY PROJECT SUMMARY Ore reserves Ore tonnage Ag Grade Ag Proven 1.19 Mt 90.18 g/t 3 442 141 oz Probable 1.78 Mt 83.40 g/t 4 786 353 oz Proven and probable ore reserves 2.97 Mt 86.11 g/t 8 228 494 oz MINE ECONOMICS Production of payable silver 0.8 million oz Ag per annum and 7.4 million oz Ag over LOM Operations commencement date Q4 2014 Average operating cash costs € 10.5 / oz Ag over LOM (US$ 13.7) Required capital expenditure (including infrastructure) € 30.7 million Required net financing (including contingency, working capital and guarantees) € 40 million KPMG Corporate Finance (“KPMG”) has been retained by Sotkamo Silver as exclusive Financial and Strategic adviser in connection with the Project. 9 FURTHER EXPLORATION POTENTIAL ■ Exploration projects ongoing in the surrounding Silver Mine region, with claims made on plots covering over 3,000 hectares in the Tipasjärvi greenstone belt ■ The map illustrates locations of the applied claims (previous Mining Act) and ore exploration permit applications ■ Additional prospects include Hopeavuori (Vammala Migmatite Zone) in Southern Finland. Management believe there is significant potential in these zones 10 Effective implementation of the mining project There are key points in the mining (development project) process where the resource model is critical to mining decisions, since the resource estimate controls financial expectations at each stage. • Back to basics – There are no guarantees with new technology. • Conceptual study • Pre-feasibility study stage • Feasibility study stage • Planning for the unforeseeable – do you have plan B or C • Mining is cyclical - Volatility is the new stability. • The licence to operate demands better technology and sustainability. 11 11 DEVELOPMENT STAGES Timo Lindborg 12 12 ENTREPRENEURIAL APPROACH • Use infrastructure by innovative and effective way. • Acquire knowledge and experience. • Lack of capital – low cost approach and good cost control. • Work hard to create added value. • Innovations comes from people with expertise and experience. 21.11.2 13 Timo Lindborg 13 INNOVATIVE USE OF INFRASTRUCTURE • • • • • • • • Geological Survey of Finland TEKES - National Technology Agency of Finland Subsidies Ministry of Employment and the Economy Municipalities Potential customers Financiers Good project portfolio 21.11.2 14 Timo Lindborg 14 WORK HARD TO CREATE ADDED VALUE Low salaries, long nights, unsafe future, lost carrier opportunities… … but lot of hope and fun! 19 472 m drilling in 172 hole 21.11.2 15 Timo Lindborg 15 INFORM PROPERLY YOUR STAKEHOLDERS ETHICS – HONESTY - The level of the ethics of the Company comes from the entrepreneurs, owners, management and board. COMPANY'S GOVERNANCE - The stock exchange rules and legislation obliges. - Mining Industry Association’s recommendations INFORMATION AND COMMINUCATION - Adequate transparency + credibility - NI 43 101; JORC; FINNMIN; SVEMIN; CIM; NI 43 101 World bank; EQUDOR PRINCPLES; etc….. 16 16 RULES REDUCE RISKS • Ni 43 101 • JORC CODE • SVEMIN • FINNMIN • CESR JORC or NI43101 CODE MINERAL RESOURCES ORE RESERVES (IN SITU) (MINEABLE) Increasing level of geological knowledge and confidence Consideration of economic, mining, metallurgical, marketing, and governmental factors PROVEN Committee of European Securities Regulators MEASURED PROBABLE INDICATED INFERRED Timo Lindborg 17 17 LOW RISK AND SIGNIFICANT GROWTH POTENTIAL Low risk mining and processing ■ Deposit mineralogy is simple, well understood and easy to process, with standard grinding and flotation with recovery above 86%. Significant growth potential ■ Geophysical surveys suggest substantial extension to potential mine life and resource mineralization. ■ Exploration mineral resource estimate in the inferred category (NI 43-101 compliant) is 13 Mt of ore for 26 Moz silver at 65g/t (cutoff grade 30 g/t Ag) + the Exploration target is 20 Mt at 60g/t. ■ Substantial pipeline of promising exploration projects in the surrounding Silver Mine region. Management ■ The management team has wide experience of running mines in team with Finland. Both CEO Timo Lindborg and Managing Director Ilkka proven track Tuokko are experienced mining professionals with a proven track records record of exploration and production. Environment ■ Equator Principles Assessment received with no significant issues noted. 18 SILVER MINE AREA THE NECESSARY MINING LICENSE AND ENVIRONMENTAL PERMIT RECEIVED 19 PRIMARY CONTACT REGARDING THIS INVESTMENT OPPORTUNITY KPMG Corporate Finance contacts Rama Ayman Mikko Harju Tommi Valento Partner, Global Head Metals & Mining Corporate Finance +44 20 7311 5092 Mob. +44 7826 918 994 rama.ayman@kpmg.co.uk Senior Manager, Corporate Finance +358 20 760 3288 Mob. +358 50 339 5910 mikko.harju@kpmg.fi Senior Manager, Head of Debt Advisory +358 20 760 3246 Mob. +358 40 720 8951 tommi.valento@kpmg.fi 20
Similar documents
g/t - ProKaivos
FURTHER EXPLORATION POTENTIAL ! Exploration projects ongoing in the surrounding Silver Mine region, with claims made on plots covering over 3,000 hectares in the Tipasjärvi greenstone belt ! The...
More information