The true depth of new ideas March 2013
Forward-looking statements Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Ivanplats Limited (the Company ), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as may, would, believe, plan, estimate, and other similar terminology, or state that certain actions, events or results may or would be taken, occur or be achieved. Forward-looking statements are based on a number of assumptions that may or may not prove to be correct, and involve significant risks and uncertainties, and accordingly should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the forwardlooking statements set forth in this presentation. These factors include, but are not limited to: (i) the matters described in the Final Prospectus of the Company dated October 17, 2012, (the Final Prospectus ), which includes a discussion under the heading Forward Looking Statements regarding relevant forward-looking statements and the assumptions, risks and uncertainties related thereto that are important to an understanding of the forward-looking statements included in this presentation; and (ii) those risks and uncertainties affecting the Company which are included throughout the most recent MD&A of the Company. Investors are directed to the Risk Factors section of the Final Prospectus and of the most recent MD&A of the Company, which identify in detail several of the important risks relating to the Company that may have an impact on the forward-looking statements included in this presentation, copies of which are available on under the Company s profile at www.sedar.com. The forward-looking statements contained in this presentation are based upon the Company s current expectations and are made as of the date of this presentation. The Company cannot assure investors that actual results will be consistent with these forward-looking statements and they are expressly qualified in their entirety by this cautionary statements. Subject to applicable securities laws, the Company assumes no obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this presentation. IMPORTANT INFORMATION This presentation relating to the Company is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities to the public in the United States and should not be considered as a recommendation that any person should subscribe for or purchase any securities of the Company.
18 years of company-building field experience Exceptional exploration successes For almost a generation, Ivanplats has been effectively developing its core strengths in Africa s mineral fields. Launched in 1994 as African Gold and began exploring in South Africa. Active in Democratic Republic of Congo since 1996. US$255 million from private financings invested in projects to end of 2011. Japanese investors, led by trading house Itochu, invested US$290 million for a 10% stake in the Platreef PGM Discovery in South Africa.
We ve done it once already...oyu Tolgoi in Mongolia now producing copper and gold
Successful IPO and TSX listing in October 2012 marked a new beginning for Ivanplats In October 2012, Ivanplats began trading on the TSX following a successful IPO that raised CDN$306 million (US$308 million). Total equity issued in connection with IPO was CDN$499 million (US$501 million), including conversion into common shares of CDN$193 million in pre-ipo bonds. Largest Canadian mining IPO since 2010.
Board of Directors Robert Friedland, Executive Chairman and founder Peter Meredith Former Deputy Chairman, Ivanhoe Mines Cyril Ramaphosa Deputy President, ANC; Chairman, MTN William Hayden Former President, Ivanplats Charles Russell Former President, Diamond Fields Resources William Lamarque Former Executive Director, Rothschild Ian Cockerill Former CEO, Gold Fields Lead Independent Director Dr. Rilwanu Lukman Former Secretary General and President, OPEC Oyvind Hushovd Former CEO, Falconbridge Guy de Selliers Former Executive Committee, EBRD Dr. Marc Faber Former Director, Ivanhoe Mines
Experienced management team Lars-Eric Johansson CEO Marna Cloete CFO Former Chief Financial Officer of Falconbridge, Noranda, Kinross Gold and Boliden. Formerly with PricewaterhouseCoopers; client base included Rio Tinto, BHP Billiton and Harmony Gold. Michael Gray COO Former President of McIntosh Engineering; experience at Grasberg, Bingham Canyon, El Teniente and Olympic Dam. Steve Garcia EVP & Chief Development Officer Former Executive Vice President of Ivanhoe Mines; directed construction of Oyu Tolgoi Mine (2005-2012) David Broughton EVP Exploration Key participant in Kamoa and Flatreef discoveries and Kansanshi pre-feasibility; involved in Tenke-Fungurume. Michel Dufresne VP Projects Over 25 years of development and operational experience at Collahuasi, Sudbury, Koniambo, Kidd Creek and Raglan.
Platreef Project South Africa
Platreef PGE-Gold-Nickel-Copper Project Average thickness of 24 metres @ 2 g/t 4PE cut-off. Potential for safe, mechanized mining and significant by-product credits. Significant exploration upside and open along strike for several kilometres. Platreef 43-101-Compliant Mineral Resource, February 2013 @ 2 g/t 4PE cut-off Tonnage (Mt) 4PE (g/t) Nickel % Copper % True Thickness (m) Indicated Resource 4PE (Moz) Contained Metal Ni (M lbs) Cu (M lbs) 223 4.1 0.34 0.16 24.3 29.2 1,700 800 Inferred Resource 410 3.3 0.32 0.18 18.0 44.0 2,900 1,600 Note: Mineral Resources estimated assuming underground selective mining methods. 4PE = (Pt+Pd+Au+Rh). Nominal cut-off criteria for 2 g/t grade shell is minimum 3 metres.
Bushveld Complex produces 73% of global primary platinum production PGE production mainly from Merensky and UG2 reefs PLATREEF PROJECT 100 km Legend Anglo Platinum Impala Lonmin Other Town / City Smelter / refinery
Key Platreef Mine Ivanplats Ivanplats JV City Anglo Platinum Lonmin Fault Property Boundary Turfspruit Macalacaskop Rietfontein JV Platreef licences on Northern Limb ~30 km Platreef horizon dips west. Platreef PGE-Au-Ni-Cu mineralization has thicknesses up to hundreds of metres. Platreef 5km Mokopane 5 km
Area 1 Rietfontein Platreef history Turfspruit SW extension Cross- Section UMT deposit AMK + ATS deposits Macalacaskop Platreef 2000-2006: Discovery of open-pit resource; 563 holes, 187,000 metres. 2007-2012: Discovery of underground resource; 413 holes; ~443,000 metres. 2010: Discovery of thick high-grade Flatreef. 2011: 30 drill rigs; discovery of southwest extension. 15
Flatreef cross-section View to northwest 4.2 km 0 m 500 SW Selective High-Grade Zone Main Zone NE 1000 Flatreef 1500 2000 500 m Drillholes UMT in Flatreef ATS & UMT shallow holes Highest grades occur at top of Platreef
Coarse-grained sulphides in Flatreef
Flatreef: Merensky grades at Platreef widths Merensky Reef, Rustenberg Flatreef deposit 708.5m Merensky Reef Flatreef (1) Grade True thickness Grade - thickness (g-m/t) 4-10 g/t 3PE ~ 0.4 1.5 m 4.1 g/t 4PE 24.3 m < 5-15 99.6 drill hole UMT015D1 18.8-metre intercept @ 4.57 g/t 3PE, 0.65% nickel & 0.28% copper 727.3m (1) Indicated Mineral Resource, cumulative T1m plus T2 zones, 2 g/t 4PE (Pt + Pd + Rh + Au) cut-off
Flatreef Mineral Resource, Feb. 2013 * This area contains: Indicated 223Mt @ 4.1 g/t 4PE, 0.34% nickel, 0.16% copper. Inferred 410 Mt @ 3.3 g/t 4PE, 0.32% nickel, 0.18% copper. *selective underground mining, 2 g/t 4PE cut-off 3 km Target 1 2.5 km 2 Exploration Targets Range Tonnes (Mt) 4PE (g/t) Ni (%) Cu (%) low 31 3.36 0.26 0.13 high 62 5.03 0.38 0.19 Target 2 low 50 2.91 0.24 0.12 7.6 km 2 high 220 4.11 0.32 0.16 Untested areas: 37.5 km 2 Step-out drill hole Note: These exploration targets are conceptual in nature and there has been insufficient exploration to define the exploration targets as a mineral resource. It is uncertain whether further exploration will result in these exploration targets being delineated as a mineral resource. For a discussion on the material assumptions of the exploration targets, please refer to the Platreef Technical Report.
Strong and supportive strategic partners Sep 2010: Itochu Corp. of Japan acquired 2% of Platreef for US$10M. May 2011: Itochu, JOGMEC and JGC purchased additional 8% for US$280M. Potential for Japanese government-supported project financing. Itochu site visit to Platreef, 2011
Kamoa Project Democratic Republic of the Congo Kamoa Project, 2011
Kamoa Copper Project First major Copperbelt discovery in DRC since early 1900s. The world s largest undeveloped high-grade copper discovery. Positioned to become a low-cost copper producer using conventional mining methods. Kamoa 43-101-Compliant Mineral Resource, December 2012 Copper cut-off Tonnage (Mt) Copper Grade Contained Copper (billion lbs) Indicated Resource 3.00% 224 3.85% 19.0 2.00% 550 3.04% 36.9 1.00% 739 2.67% 43.5 Inferred Resource 3.00% 19 3.40% 1.4 2.00% 93 2.64% 5.4 1.00% 227 1.96% 9.8 Note: Mineral Resources have an effective date of December 10, 2012. Mineral Resources are reported using a total copper (Cu) cut-off grade of 1% Cu and a minimum assumed mining thickness of 3 metres. A 1% Cu cut-off grade is typical of analogue deposits in Zambia.
Redefining the prolific Central African Copperbelt DRC mines have world s highest average copper grades.
Outcropping copper oxide mineralization typical of DRC Copperbelt Tenke-Fungurume, September 2003
Excellent potential to expand resources Exploration target: 520-790Mt @ 1.6%-2.5% copper. High-grade open down-dip to east; open along strike to south. 58,000 metres of drilling planned & budgeted Q1 2013-Q1 2014. Note: Exploration Targets are conceptual in nature and there has been insufficient exploration to define such Exploration Targets as Mineral Resources. It is uncertain if further exploration will result in these Exploration Targets being delineated as Mineral Resources.
Mineral zonation West East sandstone Note: not to scale Note: not to scale No artisanal mining. True thicknesses from 2.4 to 17.6 metres; averages 5.6 metres. High-grade bornite-chalcocite, open down-dip for expansion.
Kamoa now ranks as Africa s largest high-grade copper discovery Contained Copper (Mt) M. & I. Inf. Copper Grade 2.7% 2.6% 5.4% 4.4% 4.5% 3.2% 3.8% 5.5% 2.7% 5.1% 2.0% 2.0% 3.6% 4.1% 5.0% 3.1% 3.6% n/a n/a 5.3% 4.5 4.9 World s top 10 deposits with over 2.5% copper Meas. & Ind. Inferred 19.7 13.0 2.5 6.5 3.6 0.6 1.9 0.5 0.5 4.6 2.9 1.0 1.0 0.8 0.8 0.8 Source: Brook Hunt A Wood Mackenzie Company Note: Measured & Indicated Mineral Resources, inclusive of Mineral Reserves, and Inferred Mineral Resources, for top ten global deposits with grades >2.5% Cu
The world s top 10 undeveloped copper deposits Contained Copper (Mt) 35 30 25 20 6.3 Measured & Indicated 4.5 Average copper grade 8.6 10.0 Inferred Copper Grade 3.0% 2.5% 2.0% 1.5% 15 10 5 0 25.0 19.7 14.6 2.7 14.3 12.5 10.2 6.8 1.5 3.8 10.1 8.7 7.5 7.1 6.9 1.0% 0.5% -- Source: Brook Hunt A Wood Mackenzie Company. Note: Measured & Indicated Mineral Resources, inclusive of Mineral Reserves, and Inferred Mineral Resources for top 10 global undeveloped copper deposits
Preliminary Economic Assessment (PEA) Initial Mining Rate (Base Case) Copper Production Cash Cost Initial Capex NPV 10 @ $2.85 Cu NPV 10 @ $3.50 Cu Mine Life 5 Mtpa 143,000 tpa $0.95/lb Cu $2.0 billion $1.2 billion $2.1 billion 61 years (1) (2) (3) (3) Updated PEA expected first half of 2013. Preliminary work indicates 7.5 Mtpa allows more efficient use of capital. Scalable production: Potential mining rate of up to 20 Mtpa. Note: The Preliminary Economic Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the projected results of the Preliminary Economic Assessment will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. 1. Average first 10 years of production 2. Average first 10 years cash cost after acid credits (before credits $1.19/lb Cu) 3. After-tax NPV, discounted at 10%, assuming a long term copper price of $2.85/lb and $3.50/lb, respectively
Positioned to become a low-cost copper producer (1) 2012E Cash Cost (US$/lb Cu) $3.50 2012E Copper Cash Costs (1) $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 -- Kamoa first 10 years Average: US$0.95/lb 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Cumulative Production (kt Cu) 1. Represents C1 cash costs which reflect the direct cash costs of producing paid metal incorporating mining, processing and offsite realisation costs having made appropriate allowance for the co-product revenue streams. Source: Brook Hunt A Wood Mackenzie Company
DRC regional infrastructure DRC power lines are 10 km from Kamoa. Agreement with state power company to refurbish two hydro-electric plants. April 2012: power line supplying Kolwezi.
DRC regional infrastructure Mwadingusha dam April 2012: power line supplying Kolwezi.
DRC regional infrastructure Katanga electrified railway line April 2012: power line supplying Kolwezi.
Kamoa camp April 2012: power line supplying Kolwezi.
Kipushi Project Democratic Republic of Congo Kipushi #5 Shaft, 2011
Kipushi Zinc-Copper Project Past-producing high-grade zinc-copper mine. Focused on defining prospective Big Zinc deposit. Underground access available for redevelopment. Historical Resource Estimate Tonnage (Mt) Zinc Grade Copper Grade Measured & Indicated 16.9 16.8% 2.3% - including Big Zinc deposit 4.7 38.6% 0.8% Inferred 9.0 23.3% 1.9% Historical cut-off: Low grade: 1% < copper < 2% and 7% < zinc < 14%. Waste: copper < 1% and zinc < 7%. Note: A Qualified Person has not done sufficient work to classify these historical estimates as current Mineral Resources and Ivanplats is not treating such historical estimates as current Mineral Resources. Historical resource estimate by Techpro Mining and Metallurgy in 1997.
Kipushi: in southeast DRC adjacent to Zambia
Redeveloping Kipushi Ivanplats (operator) owns 68% interest; Gecamines owns 32%. Past production (1924-1993): 60 Mt @ 11% zinc, 7% copper, ~278 tonnes of germanium. Historical unmined resources, including Big Zinc deposit. Kipushi Project, April 2012
Redeveloping Kipushi Installation of dewatering pump at Shaft #5, 2012
Historical photos Exploration drilling, March 1925
Historical photos Kipushi open pit, November 1928
Kipushi geology and infrastructure Shafts OPEN Kipushi Fault was mined 1924-1993 to ~1,150 level Discovery of Big Zinc deposit prior to closure, never mined
VERTICAL SECTION WITH DRILL INTERCEPTS 1272mL Big Zinc deposit 1300 1400 Kipushi Fault zone Big Zinc deposit 41m 44% Zn 85m 45% Zn ~100 m x 40-80 m x 300 m, open at depth. Historical M & I Resource stated to 1,500-metre depth. 1500 95m 43% Zn Drilling confirms continuation below the 1,640-metre level. 82m 45% Zn 1600 OPEN
Key milestones 2012 Q3 Q4 Q1 2013 Q2 Q3 Q4 KAMOA Update PEA PFS PLATREEF Update resources Commence shaft Apply for Mining Right KIPUSHI Refurbish shaft Dewater to 1,250mL Underground Drilling
Financial information Trading symbol TSX:IVP Shares outstanding Market cap Class A Common Shares: 405,468,145 Class B Common Shares: 123,347,684 C$2.2 billion Major shareholders Robert Friedland Ontario Teachers Pension Plan Tocqueville Asset Management EBX Group Co. Fidelity Information current as of February 26, 2013
The new source of key minerals for world markets