COMPANY UPDATE: POST GPS METALS LAB ACQUISITION May 2016 … · Update: May 2016 CONDOTO PLATINIUM...

Update: May 2016

CONDOTO PLATINIUM NL (Noble Metals Limited) A GLOBALLY UNIQUE

INTEGRATED PRECIOUS METALS COMPANY

ASX: CPD

COMPANY UPDATE: POST GPS METALS LAB ACQUISITION

May 2016

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Update: May 2016 ASX: CPD

This Presentation has been prepared by Condoto Platinum NL (ACN 131 213 824) (“Condoto”) as a summary of the company and its operations and for general information purposes only. This Presentation is not a disclosure document and was prepared exclusively for investors to whom securities can be offered without a disclosure document (pursuant to Section 708 of the Corporations Act) for the sole purpose of providing background information to enable the recipient to review the potential for the provision of equity funding to Condoto. By participating in this Presentation or retaining these materials, you acknowledge and represent that you have read, understood and accepted the terms of this Important Notice and Disclaimer. This Presentation may contain forward looking statements estimates of future earnings, the sensitivity of earnings to gold price and gold recovery rates, future gold production and sales, capital expenditure and estimates of resources and reserves and statements regarding future exploration results and the replacement of reserves (“Projections”). Any such Projections are based on assumptions which may differ materially from the actual circumstances which may arise. Condoto undertakes no obligation to update any Projections for events or circumstances that occur subsequent to the date of this Presentation or to keep current any of the information provided. Past performance is no guarantee of future performance. Any estimates or Projections as to events that may occur in the future are based upon the best judgement of Condoto and there is no guarantee that any of these estimates or projections will be achieved. Actual results will vary from the projections and such variations may be material. Condoto has no obligation to tell recipients if it becomes aware of any inaccuracy in or omission from the information in this Presentation. This Presentation is not intended to be an offer, invitation, solicitation or recommendation with respect to Condoto securities and does not purport to cover all relevant information about any potential investment in Condoto. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. Neither the provision of this Presentation nor any information contained in this Presentation or subsequently communicated to any person in connection with this Presentation is, or should be taken as, constituting the giving of investment advice to any person. This Presentation does not contain legal, tax, accounting, investment or financial product advice and should not be used as the basis for making investment or other financial decisions in relation to Condoto securities. You should conduct your own investigations, enquiries and analysis and place no reliance on this Presentation in evaluating any potential investment in Condoto. This Presentation (and the information contained herein) is confidential to Condoto. This Presentation is not intended for and should not be distributed to any other person. By receipt of the Presentation, the recipient agrees that it will not transmit, reproduce or make available the Presentation (or any information contained herein) to anyone other than its professional advisers without the prior written consent of Condoto. Also, this Presentation may contain information which is not “generally available” within the meaning of section 1042C of the Corporations Act 2001 (Cwlth). By participating in this Presentation or retaining these materials, you represent and warrant to Condoto that neither you nor your related bodies corporate, officers, directors, employees, advisers or agents will breach Division 3 of Part 7.10 of the Corporations Act (the “insider trading” prohibitions). This Presentation, including opinions set out in it, is based on information compiled or prepared by Condoto from sources believed to be reliable, although no attempt has been made to verify such information. No representation or warranty, express or implied, is made as to the accuracy, currency, reliability, legality or completeness of the information in the Presentation. To the maximum extent permitted by law, none of Condoto, its directors, employees, advisors or agents, nor any other person, accepts any liability, including without limitation any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, Projections or prospects referred to in this Presentation. This does not apply to the extent that liability by law cannot be excluded.

IMPORTANT NOTICE AND DISCLAIMER

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CORPORATE PROFILE

• GPS Metals Group acquired 22nd April 2016. • Share Structure post acquisition:

• Market Capitalisation: $7.5 million (undiluted for options & con note, at 9 May 2016)

• Convertible Note: $400,000 (conversion – by 31March 2017) • Top 20 Shareholders: 81.2% (post acquisition)

• Cash: $0.48 million (at 31 March 2016)

Shares on Issue – post acquisition 125,722,750

Options (ex. $0.02- $0.10) 7,750,000

Fully Diluted 133,472,750

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TOP TEN SHAREHOLDERS

Global Plus Holdings 45,000,000 (35.79%)

Smart Kingdom Investments Limited 22,500,000 (17.90%)

Calveston Worldwide Limited 4,550,000 (6.62%)

East Chamber Enterprises Ltd 3,700,000 (2.94%)

Exertus Capital Pty Ltd 3,015,000 (2.40%)

P Ford Superannuation Pty Ltd <Patrick Ford Super Fund A/C> 2,000,000 (1.59%)

Jetosea Pty Ltd 1,857,270 (1.48%)

Mr A L Johnstone + Miss H L Morrison <Sunstone A/C> 1,850,000 (1.47%)

Imperium Nominees Pty Ltd 1,727,270 (1.37%)

Jaycon Investment Pty Ltd 1,680,000 (1.34%)

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COMPANY DIRECTORS AND MANAGMENT

William Hayden - Non-Executive Chairman Mr Hayden is a geologist with over 37 years experience in the mineral exploration industry, much of which has been in Africa and the Asia-Pacific region. Mr Hayden was a co-founder and past President of Ivanhoe Mines Limited (formerly Ivanplats), a Canadian company which has assembled extensive mineral holdings in South Africa, Gabon, and the Democratic Republic of Congo. Since 1986, Mr Hayden has worked in a management capacity with several exploration and mining companies both in Australia and overseas. Mr Hayden served as former President of Ivanhoe Philippines, Inc (an Ivanhoe Mines wholly owned subsidiary), and President of GoviEx Uranium Inc. He is currently a director of TSX: Ivanhoe Mines Limited, TSX: NovaCopper Inc., ASX: Globe Metals & Mining Ltd., Sky Alliance Resources and Asia Pacific Mining Limited.

Miguel Palomino - Managing Director Mr Palomino studied engineering at the University of California San Diego and received additional engineering training at Hewlett Packard. Previously, Mr Palomino has worked for HP, Denso and Magellan with extensive experience in manufacturing, quality, logistics and supply chain management. Mr Palomino is an experienced veteran entrepreneur with more than 15 years of executive management experience. Both domestically and internationally, he has demonstrated outstanding stewardship of the companies and business divisions that he has led, posting increases in sales, reduction in costs and consistent earnings. Global Plus Holdings Ltd was founded as Andaluz Inc in Delaware in 2010, and following an acquisition in 2013 was re-branded as GPHL. As CEO, Mr Palomino leads a management team of industry leaders in the fields of metal processing and refining, operations & logistics, finance and business management.

Andrew Johnstone - Non-Executive Director Mr Johnstone is a qualified geologist/geophysicist and is the former Managing Director of ASX listed Central Australian Phosphate Limited taken over by Rum Jungle Resources Limited in 2013. Mr Johnstone has held senior management positions in a number of ASX listed companies including Discovery Metals and Gulf Industrials and was founding director of Alligator Energy. During the 1990's, Mr Johnstone worked for BHP both in Australia and internationally. He brings to Condoto over 20 years experience working in exploration, resource development and mining. Mr Johnstone has a B.Sc (Hon) Economic Geology and Geophysics from the University of Tasmania and a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia. He is a member of the Australian Institute of Geologists (MAIG) and a Fellow of the Financial Services Institute of Australia (FFin).

Nicholas Raffan - Non-Executive Director Mr Raffan is a qualified geologist with over 35 years experience in company management, mineral exploration, stock broking, funds management and other financial services. Mr Raffan was formally CEO of Sovereign Gold Company Limited and has held directorships at numerous private and public companies. Mr Raffan is also a resource equities and business cycle specialist, highly sought after for resource analysis and market commentary, and is author of the Raff Report. In the past, Mr Raffan has worked within financial markets, split between stock broking and portfolio management. And in this capacity previous roles include: Co-Portfolio Manager of the NY listed Scudder Gold Fund, Senior Mining Analyst and Vice President for the Zurich Scudder Group, and Economist for Minerals and Energy, Westpac Banking Corporation. Nick started his professional career at Kennecott Explorations Australia in the 1970s.

Jay Stephenson - Company Secretary Mr Stephenson has been involved in business development for over 20 years including approximately 16 years as director, chief financial officer, and company secretary for various listed and unlisted companies. He is currently Chairman of Yonder and Beyond Group Limited and a director of Drake Resources, Doray Minerals, Nickelore, Parmelia Resources Limited and Strategic Minerals Corporation. He is also company secretary for a number of ASX Listed companies

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• Through the acquisition of GPS Metals Group, Condoto Platinum NL (Noble Metals) has become a vertically integrated precious metals company with a footprint large enough to satisfy the market’s demand of finished precious metal products.

• GPS is a specialist precious metal refiner producing platinum, gold, palladium and silver crucibles, foils, pellets, wire, sputtering targets and other precious metal products to clients’ specifications.

• GPS Metals Group is headquartered in San Diego,

California, USA. The company has sales offices in San Diego, California (USA), Hsin-Chu City (Taiwan) and manufacturing operations in Palmira, Cali (Colombia).

• The city of Cali is 100km south of Noble Metal’s existing operations at Novita (see map on next slide).

• The Cali facility is a sophisticated precious metals refinery located in ZONA FRANCA DEL PACIFICO, a world class free trade zone on the outskirts of Cali near the international airport. GPS has full accreditation for the buying, smelting, refining, selling and exporting of precious metals including:

A precious metals Buyers Permit for Colombia US Anti Money Laundering compliant (AML) ISO Accreditation Export Permit

• The acquisition of GPS has also brought a reputable and

experienced US and Colombian management team to Noble Metals, including a local skilled workforce in Colombia.

• The combination of GPS and the existing Noble Metals operations at Novita, where primary precious metal production and precious metal buying activities can take place, creates a powerful integrated group that will be able to take full advantage of all stages of value creation from mine to consumer.

GPS AQUISITION

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Novita

Cali

Choco Department

COLOMBIAN OPERATIONS

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Choco Department Yearly Production:

• Platinum 28,359 oz • Gold 653,625 oz

43% from four tribal areas: Condoto, Novita, Sipi, Tado

Source: Sistema de Informacion Minero Colombiano (2011)

Novita

Cali

PRECIOUS METAL PRODUCTION FROM CHOCO REGION OF COLOMBIA

Alluvial grains of gold (A) and platinum (B) from the area of Alto Condoto

A

B

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CALI SMELTING, REFINING AND MANUFACTURING STRATEGY

• On 11 March 2016, GPS Metals Group commissioned the smelting function of the Cali precious metals smelting, refining and manufacturing facility, which included initial smelting/gold pours for third party customers.

• Subsequently, the Cali facility has recorded its first revenues following the signing of its first smelting agreement as well as satisfying its initial orders of platinum foils and gold pellets to customers in North America and Asia.

• Condoto intends to release regular updates as the Cali facility becomes fully functional.

Chairman, Bill Hayden holding the first gold bar produced from the Cali facility. F

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CALI - REFINING AND SMELTING - OPERATIONS

• Since first gold pour in March 2016, over 100kg of gold has been smelted for third parties at the Cali facility.

Smelting Equipment Cali

Smelting Equipment Cali

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REFINING

• Precious Metal Refining Equipment Cali, being readied to begin refining metals in the second quarter of 2016

Refining Equipment Cali

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PRECIOUS METAL MANUFACTURING

• The Cali facility is capable of manufacturing the following products made from pure Gold, Platinum and Silver; as well as alloyed with Rhodium, Iridium and Palladium: Crucibles Foils Pellets Wire Sputtering targets;

and other precious metal products to the specifications of clients.

Manufacturing Equipment Cali

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COLOMBIAN SMELTING AND REFINING OPERATIONS Quality Control and Testing

• Atomic Absorption Spectrograph Equipment for purity testing in line with ISO Accreditation.

• The GPS Metals Lab Cali Smelter and Refinery is one of the only facilities of its kind in Colombia with full export licencing.

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EXPLORATION, MINING AND PROCESSING AT NOVITA

• Exclusive agreement to Explore the Novita Higher Community Council Lands covering 105,975ha, signed 25 January 2012

• Net revenue royalty payable of 17.5%

• Positions Noble Metals well to strike deals with the other indigenous communities in the surrounding area

• Owned outright, Noble Metals Novita Camp and Processing Facility is unique in the Choco Department of Colombia and provides a perfect base of operating in the region. F

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PRECIOUS METAL PROCESSING

• Heavy Density Media Separation allows concentration and separation of Precious Metals from concentrates produced at local mines and workings.

• The Mineral Processing Plant consists of a large magnetic separator, a small knelson concentrator and 2 gemini tables. The plant has been cleverly designed to recycle water and operates using a large diesel generator.

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MOBILE CONCENTRATOR – TESTING ALLUVIAL SITES

• New Mobile Concentrator Plant readied for testing alluvial sites in the Novita district.

• The plant is capable of processing 1cubic meter of material per hour and will provide statistically reliable information on alluvial grades when assessing opportunities in the area.

Mobile Concentrator Novita

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AREA SELECTED FOR ALLUVIAL TESTING IN MAY

• First test of a new Alluvial area for precious metals with the mobile plant will take place in May 2016; the area is fully licenced and permitted.

• An excavator and screen will be used to extract and classify material before running through the mobile plant.

Map of sample sites – 100 x 100m grid

Photos show sample sites being located using GPS F

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MINING AND PROCESSING STRATEGY

• Enter into Partnership or Joint Ventures with Local Miners

• Use expertise and modern equipment to leverage deals (Pumps, Trommel, Knelson and Gemini)

• Establish Alluvial Mining Operations

• Process 3rd party concentrates and wholly owned concentrates for later refining in Cali

• Buy locally produced precious metals • Explore exclusive 105,975ha. Novita

community ground for hard rock sources of precious metals, so prevalent in the area

Knelson (left) and Gemini for final ore processing

Mining operations and

trommel near Novita

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COLOMBIAN GOLD

Novita

Cali

Choco Department

LA COLOSA 12.9 Moz Au

• Total Gold produced (USGS 2013) - 1,792,243 oz - 55.7 tons

• Decrease of 15%

from 2012 production

GRAMALOTE 2.4 Moz Au

TITIRIBI 8.7 Moz Au

MARMATO 9.7 Moz Au

Large hard rock Colombian gold deposits

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PLATINUM IN COLOMBIA • 59,029oz Platinum produced 2013 (USGS)

~1.84tons • Strong global demand, increasing vehicle output

in Asia • Supply side issues in South Africa, Zimbabwe &

Russia • Historically high prices • 5 year low US $774/oz to high US $1034/oz

(April 16)

Dredging platinum in the Condoto River, 1928

“….the occurrence of Pt placers in southern Colombia (Barbacoas) and in northern Ecuador (Esmeraldas) points to a total length of more than 1000 km for this belt of zoned ultramafic intrusions…”

German mission to Choco, 1990s:

• Hard rock platinum sources identified

• Drill-ready targets abandoned due to political instability at the time

“The Pt:Au ratio in the Condoto and Iro Rivers at 3:1 is the highest in the Choco district”

“World’s only source of platinum until 1820 No modern exploration or modern production”

17.3 ounce platinum nugget from Choco - Smithsonian Institute

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Update: May 2016

A World Class PlatiCPDand Gold Project Choco Department, Colombia

ASX: CPD

Established Operations Base in Gold and Platinum Rich Choco Department of Colombia

• Large land position (105,975 ha)

• Platinum and gold production & processing

• Modern mine development & exploration

Cali Precious Metals Smelter and Refinery

• Currently smelting ~25kg per week, expanding

• Refining contracts being negotiated

• Licenced to buy and sell Precious Metals

• Licenced to export Precious Metals internationally

Corporate Structure

• 125.7 million shares on issue

• Top 20 hold 81.2%

• Experienced Board and Management

Condoto River looking east from Santa Rita to Alto Iro and Chigorodo

Alluviones de Colombia alluvial operation near township of Condoto

SUMMARY

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Corporate Contacts:

Australia

Andrew Johnstone Director [email protected] T : +61 8 6141 3500

USA

Miguel Palomino Managing Director [email protected] T : +1 877 477 4345

www.condotoplatinum.com.au ASX: CPD

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COMPANY UPDATE: POST GPS METALS LAB ACQUISITION May 2016 … · Update: May 2016 CONDOTO PLATINIUM...

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Transcript of COMPANY UPDATE: POST GPS METALS LAB ACQUISITION May 2016 … · Update: May 2016 CONDOTO PLATINIUM...