June 2016 Edenville Energy plc Company Presentation July 2017 AIM code: EDL www.edenville-energy.com
Key Facts and Strategy KEY FACTS Listed on the London’s AIM Market, focussed on the Rukwa Coal to Power project in Western Tanzania Construction stage on the Rukwa coal mine – full production in Q3 2017 supplying coal to local industries Pre-development stage on the Rukwa Coal to Power Project – opportunities for Stage 1 120 MW Plant with potential for 300 MW Directors and management team all have extensive technical, commercial and corporate experience with several decades developing mines or power plants STRATEGY Near Term : To initiate commercial mining operations at the project - Operations on track for full commercial production in Q3 2017 To advance the Rukwa Coal to Power Project through its pre-development to construction – Tanzanian Ministry of Energy and Minerals (MEM) have requested the Project move ahead to development Long Term : To fully monetise the Rukwa coal deposit through the development of a mine mouth coal-to-power project providing electricity to the Tanzanian grid system 2 www.edenville-energy.com
Corporate Information Edenville Energy: Thermal coal developer in Tanzania Developer of Tanzania’s brownfield Rukwa Coalfields with a measured & indicated resource of 170Mt Share Price Performance Company Capitalisation Shares on Issue 1,106,060,312 Warrants and Options 232,852,298 Fully Diluted 1,338,912,610 0.33 – 1.19p 12 month share price range Share Price (26/06/2017) 0.8p Market Capitalisation £8.85M Source: [Yahoo] Board and Management Major Shareholder Jeffrey Malaiholo Non-Executive Chairman Jim Nominees Limited 12.80% Rufus Short, CEO CEO Barclayshare Nominees 10.95% Arun Srivastava NED TD Direct Investing Nominees (Europe) 8.58% HDSL Nominees Limited 6.81% WB Nominees Limited 4.46% Rakesh Patel Finance Consultant (former CFO) Hargreaves Lansdown (Nominees) Ltd 4.07% HSBC Client Holdings (Nominees) Ltd 3.75% 3 www.edenville-energy.com
Board and Management Team Jeffrey Malaihollo, Non Executive Chairman – 23+ experience in varied roles within resources and finance. A PhD in Geology having worked for Newcrest Mining and Rio Tinto. A mining analyst with Loeb Aron, a corporate finance firm in London, followed by several years of CEO/MD roles with AIM-listed Central China Goldfields, AIM-ASX listed Bullabulling Gold and ASX-listed Arc Exploration. Currently a Director of Copper Lake Resources, a TSX-V listed company. Rufus Short, CEO – 26 years+ experience in the resources industry in Australia, UK, Asia and Africa. Minerals Surveyor with MSc in Mineral Economics. Previously 6 years as an investment banker with Investec plc working on debt management , hedge funds, listed and private equity investments. Extensive experience in engineering and development of remote coal, gold, silver and copper mines in Australia, Indonesia, Laos and the FSU. Arun Srivastava, Non Executive Director – Previously CEO and founder of Essar Power India. 40 years experience in the power industry, spread across the turnkey development and operation of power plants, acquisition of fuel sources, liaison with regulators and industry representation; significant exposure to complete management of large size power projects, particularly coal and gas based projects. Rakesh Patel, Company Accountant – 21 years+ as a Chartered certified accountant ; extensive experience in corporate finance, mergers, divestments and acquisitions, private placing and stock market flotation. Acted in 30 + AIM admissions and transactions. Interim / part-time director to private and public companies. Corporate finance partner at Adler Shine LLP, a London based firm of Chartered Accountants. 4 www.edenville-energy.com
Rukwa Coal to Power Project Rukwa Region - Tanzania Tanzania – Part of the East Africa Power Pool (EAPP) Project located in Western Tanzania - opportunity for Coal and Power Coal Mine and Wash Plant Under Construction Long Term Opportunity to Develop up to 300MW of Power Supply 5 www.edenville-energy.com
Key Points - Mining MINING PROJECT AT ADVANCED STAGE Full Commercial Coal Production targeted for Q3 2017 Asset quality and scale – 173 million tonnes JORC resource + exploration upside – Thermal power plant quality coal – Typical washed values 5,000kcal, Ash 20%, Moisture 5% Mining Environmental Impact Assessment Certificate granted Mining Licence Granted over Mkomolo – rapid application process took 7 months Recent Tanzanian Government directive to ban or restrict coal imports provides potential market opportunities Bulk Sampling completed for wash and quality with analysis by SGS South Africa 10 Year Mining Plan developed to open up both commercial mining opportunities and coal to power Wash Plant purchased and in construction Commercial sample deliveries already taken place to several customers 6 www.edenville-energy.com
Transport and Logistics Infrastructure The mine is located in a strong position in western Tanzania for transportation and logistics ______ Excellent road network north and south of the project Multiple road access to Zambia going south ______ Lake Tanganyika provides barging options to take coal north to NW Tanzania, Burundi, Rwanda and the DRC ______ Access to the rail network via Mpanda Rail network of Tanzania undergoing major upgrade for both freight and passenger services 7 www.edenville-energy.com
Bulk Sampling in Stage 1 Pit Completed Coal is near to surface with low strip ratio of overburden of 2:1 8 www.edenville-energy.com
Project Development Top: New Edenville Volvo EC300 Excavator Top: New Road to Mine Bottom: Mkomolo Coal Top: Plant Site; Centre: Road Construction Drainage; Bottom: Wash Plant arriving in Tanzania Bottom: Crushed Coal Stockpile 9 www.edenville-energy.com
Sumbawanga and Site Area Centre: New +200km Road Connection near Top: Community assistance to local Top: Airstrip in Sumbawanga site schools Bottom: Old Namwele Pit Workings Bottom: Sumbawanga – Regional Centre 10 www.edenville-energy.com
Key Points – Power Development POWER DEVELOPMENT KEY POINTS Edenville Energy plc have formally been asked to move forward plans on a coal fired thermal power project at Sumbawanga by the Ministry of Energy and Minerals (MEM) Edenville Project Concept Study already accepted and approved by Tanesco Rukwa Power Project is part of the “MEM Power System Master Plan 2016 Update” MOU signed with Sinohydro of China who will complete the Bankable Feasibility Study Previous Lahmeyer (India) Feasibility Study on 120MW Project indicates strong economics of +20% IRR – expansion potential to fully utilise resource Independent Financial Model Developed which supports strong economics of Lahmeyer study – NPV10 $252m; +20% IRR Updated mineable resource assessment and bulk sampling shows majority of coal can be fed to power plant with only minimal washing treatment required – thus providing a considerable cost saving on fuel Power Plant Environmental Impact Assessment Study underway – approx 40% complete Moving forward in 2017 towards development alongside Sinohydro and the Tanzanian Authorities 11 www.edenville-energy.com
Regional Power Landscape Planned New 400KV transmission line linking north- south within 7km of Rukwa Tanesco Planned National Grid System Part of “East Africa Power Pool” development plan, which will see a total of 2,302km under construction between Kenya, Tanzania and Zambia (ZTK Project) Completion of NW Powerline Project planned for 2020 Updated Feasibility Study on transmission line completed by international consultants for Tanesco – Project undergoing regulatory and funding requirements Construction of Mbeya to Sumbawanga section planned in parallel with Rukwa Coal to Power Project Minemouth Power Plant Scenario Rukwa is strategically positioned for regional power consumption 12 www.edenville-energy.com
Appendix 1 - Rukwa Coal to Power Project The Company’s core asset is the Rukwa Coal to Power Project, located in western Tanzania, ~25km by road to the north-east of the major commercial centre of Sumbawanga. The Rukwa Coalfields are comprised of the Mkomolo, Namwele and Muze deposits – historical small scale mining having taken place Total in-situ JORC Resources across 3 deposits: 173Mt RUKWA COAL 90% of this resource tonnage lies within Mkomolo and PROJECT Namwele; Muze still to be fully evaluated – high potential because of a historical 60 million tonne resource Approximately USD12M spent to date by Edenville to develop the asset Edenville Energy plc through its Tanzanian subsidiary Edenville International Tanzania Ltd own a 90% interest in the coal project Ideally suited for coal fired power generation Edenville Energy plc own 100% of Edenville Power Tanzania Ltd established to develop the power plant 13 www.edenville-energy.com
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