Investor Presentation 2010 February 2010 F b
C Cautionary note ti t DISCLAIMER • The information contained in this confidential document ("Presentation") has been prepared by Avocet Mining PLC (the "Company"). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this ithi th i t t i A ti l 49 f th O d th i itt d t i it A th h i thi Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation. • 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 p ) y y p y 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 the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any 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. www.avocet.co.uk 2
O Overview of Avocet Mining i f A t Mi i Gold mining company, active in 2 highly prospective districts •South East Asia •West Africa •Group Reserves and Resources of 1.5 Moz and 5.3 Moz respectively Excellent growth profile •2009 production: 109,000 oz •2010 target production: 200,000 oz 2010 t t d ti 200 000 •2011 target production: +230,000 oz West Africa – new mine set to double group’s production in 2010 West Africa new mine set to double group s production in 2010 •Inata (Burkina Faso) South East Asia – two operational mines with positive cash flow •Penjom (Malaysia) •North Lanut (Indonesia) 3
C Company snapshot h t (South East Asia) PENJOM NORTH (0.9 Moz) (0.9 Moz) LANUT LANUT & Bakan (1.0 Moz) Listing AIM (Ticker: AVM) Seruyung Doup (1 0 Moz) Doup (1.0 Moz) 87 5 87.5 p Share price close (28.01.10) 52 week low – high 107.0 – 48.0 p South East Asian ounce figures are JORC-compliant Mineral Resource Av. daily volume (90 day) 778,000 figures, 100% basis. See appendices for details Shares in issue 195.1m (West Africa) Financial year end 31 December 1 Market cap US$275.6 m Belahouro INATA Enterprise value US$315.6 m 2 (1.7 Moz) Elliott 16% Datum AS 13% Blackrock 5% Ownership JP Morgan 5% Management 5% Invesco I 4% 4% Koulekoun (0.7 Moz) 1 Effective 31 December 2009; previous year end: 31 March 2 Assuming net debt of US$40.0 m as of 9 November 2009 West African ounce figures are 43-101-compliant Mineral Resource 4 figures, 100% basis. See appendices for details
A Avocet – Board of Directors and EXCO t B d f Di t d EXCO Board of Directors Senior Management N G McNair Scott • Has been Finance Director of Helical Bar plc since 1987. Eric Vesel • Eric is an experienced expatriate professional with over 20 Previously he was a director of Johnson Matthey Plc and years experience, having worked in Namibia, Australia, Non-executive Executive Vice held various positions in the Anglo American plc and Charter Papua New Guinea, Indonesia and Malaysia. In July 2006 Chairman Consolidated groups. President, Operations he was appointed Chief Operating Officer after a two year – South East Asia period as Regional Director, South East Asia. Jonathan Henry Jonathan Henry • Appointed CEO in July 2006 having previously been FD • Appointed CEO in July 2006 having previously been FD since October 2002. He has held several positions with CEO Richard Gray • Richard joined Avocet in June 2009 following the acquisition Avocet since joining the Company in 1994 of Wega Mining. He has had a successful career in Executive Vice developing mining companies, including 15 years working in President, Operations South Africa for Gencor Ltd, and 10 years in West Africa for • Finance Director since July 2007 having previously been Mike Norris – West Africa Golden Star Resources Ltd. CFO since February 2007. Chartered accountant at Coopers & Lybrand before holding senior financial and operational Finance Director Finance Director roles at Rio Tinto PLC and Anglo American PLC. l t Ri Ti t PLC d A l A i PLC • Peter is a geologist with over 20 years experience in gold Peter Flindell and copper exploration, resource evaluation and reserve • He is the Chief Executive Officer of Datum AS, Avocet's Harald Arnet development in South East Asia, Central Asia and North Executive Vice second largest shareholder. Mr. Arnet previously held the America. He joined the Group as Chief Geologist in May President Exploration position of Senior Vice President, Corporate Finance, Non-executive Director 2002 following 12 years with Newmont Mining Corporation. Norway for Svenska Handelsbanken Hans-Arne L’orange Sir Richard Brooke Bt. • Serves on the board of Fidelity Special Values PLC and is • Hans-Arne joined Avocet in June 2009 following the Exec. Vice President chairman of other investment entities associated with J O acquisition of Wega Mining. Previously he was Acting CEO Non-executive Director Hambro Investment Management Ltd. of Wega Mining, having joined from Vyke Communications Business Plc, where he served as CEO. Prior to that position, he was Development & CEO of Birdstep Technologies, Inc. Investor Relations R A Pilkington • Managing Director of UBS Investment Bank and also a director of ASA Limited director of ASA Limited, an investment trust investing an investment trust investing Non-executive N ti Brett Richards • Brett joined Avocet in November 2009 following a six month principally in South African gold mining companies. Director consulting assignment with the Company. A human Executive Vice resources and operations executive, with previous President experience at operational and head office level. Brett’s previous employers include Katanga Mining, Kinross Gold, M J Donoghue • He is a mining engineer with over 30 years experience in Corporate Affairs and Co Steel. mining operations and new mine developments in Africa, Non-executive Director Australia, South East Asia and Europe. • Jim joined Avocet in November 2008 and was appointed Company Secretary in January 2009. He is a Chartered Jim Wynn R S Robertson • He has over thirty years experience in extractive industry Accountant and was previously employed by Anglo Company Secretary and was previously Chief Executive of Tarmac and Anglo American PLC where he held a number of roles within the Non-executive Director Industrial Minerals. Anglo Industrial Minerals division, notably Finance Manager. 5 5
St Strategic direction t i di ti “Avocet Mining is committed to becoming a leading gold mining and “A t Mi i i itt d t b i l di ld i i d exploration company” +300,000 oz pa and growing growing +5 Moz reserves Junior gold Junior gold Mid-tier gold Mid-tier gold producers producers +10 year mine lives Avocet Mining ....... Cash costs <$500/oz Avocet’s medium-term strategy is to build a portfolio of gold mines to produce in excess of 300,000 oz p.a. 6
St Strategic direction t i di ti Annual gold production (k oz p a ) (k oz p.a.) 600 • Acquisitive growth Ramp up of Inata will allow Avocet f 500 00 o to become a +200,000 oz p.a. M&A producer in 2010 400 • Organic growth Guinea Prospective pipeline of projects in 300 o both regions both regions Burkina Existing portfolio has potential to Faso o 200 add further growth beyond 300,000 oz p.a. 300 000 oz p a Indonesia 100 Malaysia 0 2010 2011 2012 2013 2014 7
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