RGN Vol 6 Iss 3

RESOURCE Volume 6, Issue 3

GLOBAL NETWORK

Mining, renewable energy and oil & gas worldwide

RESOURCEGLOBALNETWORK.COM

“Resource Global Network was dedicated to learning the different aspects of our story and integrating them into well-polished feature articles.

It was a pleasure working with them.”

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MINING | Brookfield Multiplex

WELCOME

London has been one of the world’s most prominent trade centres since the 1600s, when its strategic location in the developing modern world was coupled with the establishment of leading financial institutions, such as the Bank of England and the London Stock Exchange (LSE).

Executive Team Editor Jacob Ambrose Willson

Even in today’s era of globalisation, many analysts believe London remains the capital of the financial world, despite stiff competition from commercial centres in North America (New York) and the Far East (Hong Kong and Shanghai).

Content Director (APAC and Americas) David Hunter

In the world of mining, Australia and Toronto have established themselves as the sector’s largest finance hubs over the last century and a half, judging by the number of mining companies listed on their exchanges today.

Creative Director Hugo Currie

However, with a staunchly international outlook, deep pools of liquidity and an entrenched mining ecosystem, London continues to demand attention from the global mining community. This is illustrated by the LSE providing a home to 163 mining companies representing approximately 18% of the total market cap of all listed miners worldwide.

ICT Director Stuart Clark Managing Director Simon Curran

This issue of RGN explores how the London market supports mining companies of all shapes and sizes from around the world, after I visited the LSE’s headquarters earlier this year to hear from its head of international business development, primary markets, Tom Attenborough.

Our London-listed feature companies are a perfect illustration of the international outlook of London’s markets, with projects targeting the extraction of various commodities in Spain, Kazakhstan, West Africa and Namibia highlighted in the issue.

We also include a complete guide for mining companies aiming to list on London’s markets, courtesy of law firm Memery Crystal’s Michael Dawes, plus the usual news round up from the global resources industry.

Jacob Ambrose Willson, Editor

Jacob Ambrose Willson

RGN is published by Anderson Murray Media: a diverse media and information services company focused on creating and distributing engaging content to business leaders across the globe.

Anderson Murray Media Fulham Green, 69-79 Fulham High Street, Main Reception, Bedford House, London SW6 3JW Tel. +44 (0)207 148 5630

VISIT US ONLINE AT WWW.RESOURCEGLOBALNETWORK.COM

CONTENTS

LONDON STOCK EXCHANGE

NEWS 10 Global resources news Our selection of mining, oil & gas and renewable energy stories from the last month

MINING FINANCE 16 London Stock Exchange The investment market of choice for mining companies around the world 30 Memery Crystal Helping mining firms to list in the UK

COLUMNS 44 Michael Dawes (Memery Crystal) A complete guide for mining companies planning to list on London’s markets

MEMERY CRYSTAL

AFRITIN MINING

CONTENTS

ATALAYA MINING

MINING 56 AfriTin Mining Building the African tin champion 68 Atalaya Mining Multi-asset copper production in Spain 82 IronRidge Resources Creating value through discovery 94 Ferro-Alloy Resources Group The world’s lowest cost vanadium deposit in Kazakhstan 104 Bushveld Minerals Vertically integrated primary vanadium production 116 Hummingbird Resources RGN checks in with Hummingbird Resources’ MD Dan Betts

APPOINTMENTS & EVENTS 130 Appointments Notable appointments in the resources industry from the past month 131 Events Our pick of the top forthcoming mining, oil & gas and renewable energy events

IRONRIDGE RESOURCES

FERRO-ALLOY RESOURCES GROUP

BUSHVELD MINERALS

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NEWS | Brookfield Multiplex MINING

GLOBAL RESO

Our selection of mi renewable energy news

Resource Global Network

OURCES NEWS

ining, oil & gas and s from around the world

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NEWS

KAZAKH VANADIUM PRODUCER FERRO-ALLOY LISTS ON LONDON STOCK EXCHANGE Ferro-Alloy Resources Group, a vanadium producer based in Kazakhstan, has become the first junior flotation on the London Stock Exchange from the mining sector this year.

The company, which is already listed in Kazakhstan, has raised £5.2 million and issued 7,507,761 new ordinary shares at a placing price of 70 pence each, giving FerroAlloy a market cap of £219.1 million.

Chief executive Nicholas Bridgen told City A.M that the firm will gain access to investors with a good understanding of the exploration market.

“Exchanges in Toronto and Australia have a lot of interest in very small cap exploration,

and maybe their retail demand understands it better. But I still think London’s a better place for a significant company,” he said.

Ferro-Alloy is already producing vanadium pentoxide from its Balasausqandiq project and will use the money raised from the flotation to increase output at the project, which has the potential to be one of the world’s largest and lowest cost producing mines, according to Bridgen.

“Given our existing production and defined development path to build a low capex mine and production facility, Ferro-Alloy offers a fantastic opportunity to gain exposure to the growing vanadium market, the fundamentals of which continue to strengthen.”

Resource Global Network 11

TURKEY-FOCUSED GAS EXPLORER VALEURA TO MAKE SECONDARY LISTING IN LONDON TSX-listed gas firm Valeura Energy has begun trading on the London Stock Exchange’s Main Market after completing a non-dilutive secondary listing.

Valeura is testing onshore gas resources in Turkey’s Thrace basin, where it operates with Norway’s Equinor. The mid-tier firm and its partners sit on 20 trillion cubic feet, or roughly 3.5 billion barrels of oil equivalent in the basin.

The company said listing in London would help fund future drilling in the basin before adding that it would continue to trade in Toronto, with all shares becoming fully fungible between the two exchanges.

CEO Sean Guest previously stated that Valeura is not looking to tap the market through the listing having raised funds a year ago, mostly out of the UK, but is open to future fundraising.

“London has always been a good place for international oil and gas. But in the past Toronto has also been very good for raising capital for international oil and gas and mining.”

“But Toronto markets have really dried up and there isn’t that support anymore for oil and gas, and especially not for international.

“London understands the European gas story.

And that will be where we will focus,” he added.

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NEWS

BARRICK AND NEWMONT COMPLETE JV, CREATING WORLD’S BIGGEST GOLD COMPLEX Newmont Goldcorp and Barrick Gold have cleared all the regulatory conditions to combine their operations in Nevada, which will now become the largest gold complex in the world.

Both companies announced that the US Federal Trade Commission granted an early termination of the waiting period under the Hart-Scott-Rodino Act on April 19, allowing the joint venture to be completed ahead of schedule.

The new business, yet to be named, will be owned 38.5% by Newmont Goldcorp and 61.5% by Barrick, and is expected to generate savings of US$500 million a year within the first five years.

The complex will comprise of Barrick’s Goldstrike, Cortez, Turquoise Ridge, and Goldrush mines and Newmont’s Carlin, Twin Creeks, Phoenix, Long Canyon mines, plus associated processing plants and infrastructure of both companies.

“The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximise its many value-creating opportunities,” said Barrick’s President and CEO Mark Bristow.

Resource Global Network 13

RENEWABLES COULD PROVIDE 86% OF GLOBAL POWER DEMAND BY 2050: IRENA REPORT The scale-up of renewable energy and electrification of the global transport and heavy industries sectors could result in renewables meeting 86% of the world’s power demand by 2050, according to new research from the International Renewable Energy Agency (IRENA).

The IRENA report, titled Global Energy Transformation: A Roadmap to 2050, states that the widespread adoption of clean power to electrify carbon-intense sectors could deliver more than three quarters of the energy-related emission reductions needed to meet global climate goals by mid-century.

IRENA based this finding on its ‘Remap Case’ scenario, which would require all stakeholders in the global energy system to meet the requirements of the Paris

Agreement’s 2C trajectory as soon as possible, through the adoption of renewable energy to replace high carbon sources.

In this scenario, IRENA claims that renewables’ overall share of the energy mix would grow six times faster than current rates, meaning annual global energy-related CO2 emissions would peak in 2020 and decrease by 90% by 2050.

This was compared to the ‘Reference Case’, which demonstrated how current and planned national and international policies, targets and Nationally Determined Contributions (NDCs), are likely to result in CO2 emissions from energy remaining at the same level as they are today by 2050.

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LONDON STOCK EXCHANGE |

On-site

LONDON STO C K E XC H A N G E The capital market of choice for mining companies around the world

Resource Global Network

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LONDON STOCK EXCHANGE |

On-site

London Stock Exchange is a leading international capital market that is home to 163 mining companies, which account for approximately 18% of the total market capitalisation of all listed mining firms worldwide. These figures alone reveal that the London market is not exactly a well-kept secret amongst the international mining community, even though it is situated outside the world’s two largest mining hubs by number of companies - Toronto and Australia. Both of these capital markets were conceived after the discoveries of immense mineral riches in the mid-19th century and both have subsequently benefited from a century and a half of sustained mining activity. This begs the question of how has London managed to fiercely compete with these deep-rooted mining finance houses, despite having a smaller domestic industry?

The answer, according to London Stock Exchange’s head of international business development, primary markets, Tom Attenborough, is the international nature of the London market, both in terms of issuers and investors and the strength of the ecosystem that supports them.

Resource Global Network

Ardently international “The over 2,100 companies that are listed across the Main Market and AIM are businesses that operate in over 100 countries around the world.

“We are very diverse in terms of issuer nationalities, so London offers a global peer group for companies to be benchmarked against. This is particularly true in mining, whereby the nature of the sector demands an international focus.”

From an investor perspective, London provides access to all major international markets during the trading day, thanks to its position at the epicentre of modern time zones. International time zones are calculated in accordance with the Royal Observatory in Greenwich – just a 9 km journey from London Stock Exchange’s offices in Paternoster Square.

“London markets open at 8am when the Asian trading is still up and running and we are open two hours into the US trading day before markets close at 4.30pm. Investors from around the world are active during our trading day, and that gives a very diverse investor base that trades through London.”

In addition, London has accumulated a significant amount of expertise in the mining industry. A complex mining ecosystem has been shaped by dedicated fund managers and a huge quantity of research coverage on the sector down the years.

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LONDON STOCK EXCHANGE |

On-site

“In London you will find a very substantial ecosystem that knows and cares about the mining sector. This critical mass is an important differentiator for London,� Tom Attenborough, head of international business development, primary markets, LSE plc

Resource Global Network “Here you will find a very substantial ecosystem that knows and cares about the mining sector. That critical mass is important for the London markets,” says Attenborough.

Liquidity is also important, as it is for companies operating in all sectors, but especially in the mining industry, which has recently faced several internal challenges such as rising exploration and production costs.

“Being in a market where you can generate meaningful liquidity and investor following has been very important for issuers. We have seen a few issuers add a London listing over the last 12 months because these businesses want to access a more diverse investor base and generate a following in the UK market.

“Even if they aren’t raising capital, building liquidity in the London market is important for them.”

Home to giants and juniors alike While London Stock Exchange remains home to three of the five largest publicly traded mining companies – BHP, Rio Tinto and Glencore – it also attracts miners from every stage of the development cycle, from concept and early stage through to production.

“It is notable that of all the mining companies listed here, around 100 of those are subUS$100 million market cap. There are some very small companies listed here and I think that again speaks to the attractiveness of

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LONDON STOCK EXCHANGE |

On-site

Kazatomprom listing, November 2018 London and our ability to support companies

Overall, London delivered a healthy volume

of all stages and sizes.

of new listings from the mining sector last year, with 11 companies choosing to list on

“There is the AIM market at the smaller

its markets, in a combination of initial public

end, and the Premium Segment of the

offerings (IPOs) and secondary listings.

Main Market for much larger companies.

In between is the Standard Segment of the

At the larger end of the market, Kazakhstan’s

Main Market, which is what a number of the

state-run uranium producer Kazatomprom

international companies looking to dual list

listed global depository receipts (GDRs) on

have chosen.”

the Main Market in November 2018 - the largest IPO in the sector across Europe, the

Recent examples of mining companies dual

Middle East and Africa. The IPO valued the

listing in London include Danakali and MOD

world’s largest uranium producer at around

Resources in 2018. Both companies have

$3 billion.

projects in Africa and listed on the Main Market in addition to their listings on the Australian Stock Exchange.

ResourceGlobal GlobalNetwork Network 23 Resource

Meanwhile, several smaller mining firms

“Whilst it’s always disappointing to see

joined AIM in 2018, including South African

companies leave our market, I think there

fertiliser company Kropz and Republic of

are opportunities for other companies

Congo-focused Kore Potash. Kropz listed in

to benefit from investors who may have

November with a market cap of $123 million,

additional capital to invest as a result,” says

while Kore Potash debuted with a $79 million

Attenborough.

market cap in March.

This type of opportunity may continue to However, the growth in new listings from

crop up across equity markets this year after

the mining sector last year was tinged with

several high-profile mining M&A deals were

disappointment when long-term issuer

completed in the first quarter of the year,

Randgold Resources delisted from the

particularly in the gold sector.

London market, following its acquisition by Barrick Gold.

“We keep an eye on M&A, but our focus is to support companies coming to London, accessing the deep and liquid pools of

24

LONDON STOCK EXCHANGE |

On-site

international capital and London’s global

perspective, as the UK’s time zone is closely

investor base.”

aligned with much of the continent, but

African synergies

the steady stream of Africa-focused miners joining London Stock Exchange speaks

Mining companies with projects and

more to the London investors’ strong

operations in Africa have continued to

understanding of the African market.

gravitate towards London in recent years, including the aforementioned dual listing

“Across all sectors, we have over 110

firms Danakali and MOD Resources, but also

African companies listed here. It is a

companies such as Cora Gold and AfriTin

continent that London investors have spent

Mining have joined AIM in the last 18 months. lots of time focusing on and understanding the different dynamics of each country and London listing an Africa-focused company makes sense from a trading logistics

market.

Resource Global Network

“We are very proud of the fact that London-

businesses across a range of sectors.

based emerging and frontier market investors are familiar with countries across

In addition, LSEG is also collaborating with

Africa. They understand the geographies and

African stock exchanges through its business

the political and currency factors to take into

support and capital raising initiative to

account, in a way that may not be true in

support high growth private companies,

other financial centres globally.”

ELITE. The initiative launched in Morocco in 2016 in partnership with the Casablanca

Duly recognising the importance of

Stock Exchange and expanded into West

supporting high growth African businesses,

Africa in partnership with Bourse Régionale

London Stock Exchange Group (LSEG)

des Valeurs Mobilières (BVRM).

recently published the second version of its Companies to Inspire Africa report, which

LSEG has also signed an MoU with the

identifies a wide range of dynamic African

Nairobi Stock Exchange in Kenya for a

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LONDON STOCK EXCHANGE |

On-site

Tom Attenborough - head of international business development, primary markets, LSE similar partnership, and through LSEG

beyond, an unavoidable macro-concern has

Technology the Group works closely with a

been looming across the London market

number of African exchanges, including the

since the UK voted to leave the European

Johannesburg Stock Exchange, providing

Union in June 2016.

trading software and technology.

While the political uncertainty caused by Despite the healthy pipeline of listings

the referendum outcome has caused some

coming in from the mining sector and

delays to investment decisions, it is evident

Resource Global Network “The international nature of our market is arguably as strong as ever. In 2017, nine of the largest 10 IPOs on the London market were non-UK businesses. Last year, three of the largest five were international businesses.

“Many of our international issuers have voted with their feet. They look at a listing as a route to provide access to liquidity, access to investors, a sensible and transparent governance regime, and an ecosystem that can nurture these businesses.

“All these things have always made London an attractive place for international companies to list and none of that has changed,” Attenborough asserts.

Returning to the mining sector, Attenborough believes London Stock Exchange’s 2019 pipeline remains strong, despite various macro-challenges, such as the US-China trade discussions, impacting the sector outlook.

In March, London welcomed the IPO of Kazakh vanadium producer Ferro-Alloy Resources Group, in what is set to be the first of several listings from the mining sector on the London markets in 2019. that widespread fear has not enveloped across UK markets when considering London’s pipeline growth in recent years, particularly in terms of international listings.

a j

27

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30

MINING | Memery Crystal

Resource Global Network

M E M E R Y C R Y S TA L Helping mining firms to list in the UK

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MINING | Memery Crystal

On day one of the 2019 Investing in African Mining Indaba, RGN attended a seminar titled Listing in London, which was delivered

by Tom Attenborough from the London Stock Exchange, Richard Greenfield of Tamesis Partners LLP and Memery Crystal’s head of corporate Michael Dawes. Memery Crystal is a London-based firm with an international focus, and is one of the UK’s leading law firms for advising on equity capital markets transactions for natural resources companies.

Memery Crystal’s 20-strong natural resources team has been through several industry downturns and upturns over the last three decades and is therefore well primed to help companies list in the UK markets. Following the 2019 Mining Indaba, RGN’s editor interviewed Dawes to find out more about the firm’s work, particularly in the mining arena.

mining and oil & gas sectors. We do a bit of

Jacob Ambrose Willson: Michael, tell me

I think we did the second ever AIM listing

how Memery Crystal’s natural resources

and because we were involved right from

team works with businesses in the oil

the start, we naturally attracted a lot of

& gas, mining and renewable energy

technology companies and a lot of mining

markets?

and oil & gas companies.

Michael Dawes: We work mainly in the

Having done a lot of those transactions

renewables but our focus is predominantly on mining and oil & gas and if you look back over 10 years its been an equal split between each, depending on cycles.

We get introduced to companies from these sectors by some of the small-cap banks here, by people like Tom Attenborough from the LSE, by people we know and have done deals with before, and we help them access capital in the UK. That is the high level description of what we do.

We help them list in the UK and we help them with fundraising in the UK - we introduce them to the right team of brokers, accountants, PR, etc. and so we help them access the UK’s capital markets to fund their projects.

JAW: Homing in on the mining sector – How has Memery Crystal built its reputation for assisting mining companies to list and raise funds in London?

MD: I think you have to look back right to the start of AIM. When AIM was conceived as a growth market many years ago, it was particularly attractive to technology companies and natural resources companies.

Resource Global Network over the years, we built a good network of contacts in the sectors and we built a good reputation. What we have developed as a result of that is a good industry knowledge in the mining sector, not just with our senior people but with our junior people as well who are very into the sector. Of course, doing deals builds your reputation and attracts more deals.

Through a combination of being in the right place at the right time, the mining super-cycle and London historically being a big source of funds for projects in places like Africa and South America, we have been right at the epicentre of the listing process. This has allowed us to develop a reputation which has in turn attracted more work.

JAW: What are the main advantages of listing on the London Stock Exchange for mining companies?

MD: The main jurisdictions for listing mining companies are London, Australia, Toronto and Johannesburg.

The latter three jurisdictions have their own domestic mining sector to a much greater extent than we do. We have a little bit of UK mining but not very much. That is the starting point.

Michael Dawes - head of corporate, Memery Crystal

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MINING | Memery Crystal

London is still the centre of the financial

Toronto is the same, and currently in Toronto

world and its been funding mining projects

there is a lot more interest in cannabis stocks

for a century and beyond. You find a situation

rather than the mining stocks. South Africa

where the local markets tend to favour their

has a reasonably sophisticated financial

local projects. But, where you have an African

market but not the depth of capital of

project listed in Australia, it doesn’t get such

London.

a good reception because I think the investor base there is more focused on domestic

Just naturally, there is a deeper pool of

projects.

capital in London, there is a fantastic advisory

Resource Global Network

35

Just naturally, there is a deeper pool of capital in London, there is a fantastic advisory community, fantastic analysts and research written here. It’s a place where companies with assets in frontier jurisdictions can actually raise money�

Michael Dawes, Memery Crystal partner, head of corporate

community, fantastic analysts and research

asset that is not domestic and is not really

written here. It’s a place where companies

appreciated locally.

with assets in frontier jurisdictions can actually raise money.

Last year we dual-listed MOD Resources which has Botswana assets and Danakali

I would say most of the instructions and

which has Eritrean assets. Those are assets

most of the approaches we are getting from

that are well understood in London. So, when

companies these days fall into that category

they want to raise their development capital

of those with a domestic listing but an

they want to include London as well as their domestic market.

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MINING | Memery Crystal

MOD Resources listing ceremony at the London Stock Exchange, November 2018 That’s the main advantage to London. It has

title to its assets? Is there any litigation or

a deep pool of capital, a deep knowledge of

are there any problems that need to be dealt

these sorts of projects, an appetite for the

with or disclosed?

risk inherent in these projects and a good advisory community.

You’re essentially satisfying yourself and the investment community that this is a company

JAW: How complex is the listing process in

you can invest in. You’ve got a few roles

London?

really, but they all boil down to you ensuring that the listing process is done as efficiently

MD: I wouldn’t describe it as complicated.

as possible, because its quite a long process

What are you trying to do? You’re presenting

and quite document heavy.

the company to the London market, making sure that adequate due diligence has been

The value we add is that we have a deep

done on the company. Does it have good

knowledge of the sector, so we can ask

ResourceGlobal GlobalNetwork Network 37 Resource

the right questions and we have a good

accessing London now tend to be more

commercial sense for what is and isn’t

advanced. It used to be that you had a lot

important. This makes the process more

of exploration companies listing in the UK,

efficient.

mainly on AIM.

JAW: You discussed earlier the trend of

You have fewer of those now and there is

companies dual listing in London, but

less appetite than their used to be for earlier

what other trends have you identified

stage exploration. There is more appetite

in the mining sector which could have

now for development companies and

an impact on potential listings going

companies that are at least pre-feasibility

forward?

study level, moving into full feasibility and financing of a project.

MD: The dual listing is the main one, but the other trend emerging is that the companies

38

MINING | Memery Crystal

I think whilst the appetite for mining

There is also a finite amount of resources, so

companies is still there, the appetite to

irrespective of immediate-term concerns like

put public money into the earlier stage

Brexit and investor sentiment this week or

companies has dropped away and that is

next week, economically you have dwindling

now better served by private equity.

resources and increasing demand.

JAW: To what extent would you agree

I think long-term projects that are economic

that the mining sector can feel optimistic

are always going to get funded and listed

from an investment perspective, despite

because of that. Marginal projects won’t

lingering macro-challenges?

because the economics just aren’t there, or the asset or metallurgy is too difficult, etc.

MD: I think you have to take a long-term view on these things. To put it in very simplistic

If you have a good project and a good

terms, mining companies are digging stuff

management team, you can be optimistic

out of the ground, you need that stuff to

that London will fund you. If you’re only

make other stuff and as populations increase,

coming to London because you haven’t been

they need more stuff.

Resource Global Network same level of activity as we did in 2018 with regards to mining company listings?

MD: I think we will be pretty busy this year across our equity capital markets team. I currently have three ongoing IPOs and four or five pitches where I would disappointed if two or three didn’t turn into transactions.

My other partners have got similar levels of activity.

We did three of the five London IPOs of African mining companies last year – MOD, Danakali and Kropz. I’d be surprised if we didn’t do an increased number of listings this year and a similar high percentage of what happens in London will come through our doors.

So I’m optimistic that we will be busy this year despite it perhaps taking a little longer to able to raise the funds elsewhere and have

get deals going. Management of companies,

a project that is not good or too early stage,

particularly those looking for dual listings, are

then I don’t think you can be optimistic in

convinced of the logic of the dual listing, but

London or anywhere else.

they just want to get their timing right. Things are taking a little longer to get going, but I

Mining is not going away, and mining

anticipate us being very busy with mining

companies need funding. I think the UK

work this year.

provides a very unique platform for the public funding of good mining companies.

JAW: Finally, what can we expect from Memery Crystal in 2019? Will we see the

a j

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44

COLUMNS | Michael Dawes

ACCESSIN

A complete guide for mining companies

Resource Global Network

NG LONDON’S CAPITAL MARKETS

s planning to list on London’s markets, by Michael Dawes - Memery Crystal

45

COLUMNS||Ian Michael Thomson Dawes 46 COLUMNS

An increasing number of mining companies with an existing listing on the ASX or TSX are seeking a dual listing in London. Michael Dawes of Memery Crystal summarises the advantages of a dual listing and outlines the London listing process.

Why London?

The London capital markets are host to a vast number of international mining companies, and London is the pre-eminent provider of finance to mining projects. Through London, mining companies can access the deepest pools of long term, multi-currency investor capital to support exploration, development and expansion.

Funding is available from a broad range of specialist and generalist institutional investors and London has a well-developed advisory community of corporate finance advisers, brokers, lawyers and analysts, who really understand the sector.

For example, in 2018 we advised Danakali and MOD Resources on their London

Companies with a listing on the ASX or TSX,

listings. Both had an ASX listing, and assets

but with projects outside of Australia or

in Eritrea and Botswana respectively. They

Canada, for example African projects, often

felt that London’s capital markets would

find that their domestic markets are more

provide additional access to capital for the

biased towards domestic projects, whereas

development of their projects. This year we

London has appetite for projects in frontier

are seeing continuing interest from similar

jurisdictions.

companies.

ResourceGlobal GlobalNetwork Network 47 Resource

MEMERY CRYSTAL

Memery Crystal is a full service law firm based in London, but with an international practice. The firm’s Natural Resources team has a wealth of experience of listing mining companies on the UK’s capital markets, including AIM and the Main Market. During 2018 they advised on three out of the five London listings of African mining projects, including Danakali, MOD Resources and Kropz.

The team consistently ranks in the top advisers for AIM listings and the number of retained mining clients, and they have unequalled recent experience of advising on Main Market listings for companies in the sector, particularly those with an existing ASX or TSX listing who are looking to dual list in London.

MICHAEL DAWES

Overseas listed companies with domestic projects are less likely to find a dual listing appropriate, as typically funding would be sourced locally.

Choice of Market There are two serious choices of market in London – AIM and the Main Market.

Michael Dawes co-heads Memery Crystal’s Natural Resources team and has advised on listings and fundraisings for mining companies for the past 15 years. He is ranked for his work in Legal 500, Chambers and Who’s Who: Mining. He has particular expertise in advising on dual listings for ASX and TSX companies, recently advising ASX-listed Danakali and MOD Resources on their London dual listings.

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COLUMNS | Michael Dawes

AIM is more suitable for growth companies,

companies who have ambition to be in the

and it is administered by Nominated

LSE indices.

Advisers, or ‘Nomads’, who can provide advice and guidance to fledgling boards.

Accordingly, AIM has historically attracted

The Main Market is more suitable for larger

exploration companies, a Standard Listing

companies, particularly those with an

has attracted development companies and

existing listing who already have in place

a Premium Listing has attracted majors and

an experienced board and the necessary

other larger companies with substantial

governance and disclosure frameworks.

producing assets.

The Main Market is split into Standard

As a rough guide, the average market

Listings, with lower regulatory requirements,

capitalisation of mining companies on each

and Premium Listings, which have higher

of AIM, the Standard List and the Premium

standards and are aimed at blue chip

ResourceGlobal GlobalNetwork Network 49 Resource List is around £50 million, £700 million and £9 appropriate detail is included as to how billion respectively.

funds will be raised and what the contingency plans are. This is particularly useful for

By way of example, Danakali and MOD,

development companies who will be making

each of which has major assets close to

a decision to mine, and will therefore need

development and an existing ASX listing, both

to raise significant capital, within the year

chose a Standard Listing. Conversely, Kropz,

following listing. Qualified working capital

which was a private company and couldn’t

statements require detailed negotiation with

satisfy the Main Market’s more stringent free

the regulator.

float requirements (explained below) and is planning on making acquisitions, chose AIM.

Eligibility Requirements

Key advisers The main adviser for an AIM listing is the Nomad, who acts as financial adviser and

Most companies with an existing ASX or

regulator. On the Main Market, no financial

TSX listing will be eligible to join AIM or the

adviser is required for a Standard Listing

Standard Segment of the Main Market. The

(although one is usually appointed) and a

two key hurdles are free float and working

sponsor is required for a Premium Listing.

capital.

For listings on both exchanges, the For a Main Market Standard Listing, a ‘free

company will also require lawyers, reporting

float’ of at least 25% of the company’s shares

accountants and an independent competent

must be in ‘public hands’ – i.e. not held by

person, as well as registrars and financial

directors, 5%+ shareholders or other related

PR. The Nomad or financial adviser will also

parties. For unlisted companies, the free float

retain their own lawyers.

must be held in the EEA, but for companies with an existing listing the local free float can

The listing process

also be taken into account.

The process for listing on the London markets is very similar to that for other stock

AIM has no specific free float requirements,

exchanges – a detailed listing document must

but for a Nomad to consider the company

be produced, a large amount of financial,

suitable for listing in practice a reasonable

legal and technical due diligence work

free float will be required – similar to, but

supports that listing document, adequate

more flexible than, the Main Market.

corporate governance standards need to be adopted and there are various agreements

Both markets require a company to confirm

and other legal documents that must be

that it will have at least sufficient working

settled. Overall, the process should take

capital for the 12 months following listing,

around three or four months.

but for a Standard Listing the working capital confirmation can be qualified, provided that

A fundamental difference between AIM

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COLUMNS | Michael Dawes

Resource Global Network and the Main Market is that on AIM the

and reporting obligations to the ASX and TSX,

listing document (known as an Admission

although only AIM has specific requirements

Document) is approved by the company’s

around ongoing reporting of drilling results,

Nomad, whereas for the Main Market the

and neither exchange requires annual

listing document (a prospectus) is approved

reporting of resources or reserves.

by the UK Listing Authority, an independent regulator.

Only annual (audited) and half-yearly (unaudited) financial reporting is required,

Both documents are broadly similar, although although there is no restriction on quarterly a prospectus has more detailed content

reporting.

requirements. In practice, an AIM Admission Document will go through a larger number

London does have detailed restrictions on

of drafts than a Main Market prospectus,

when the disclosure of inside information

with the latter being in a materially advanced

can be delayed (and trading halts are not

stage before the regulator reviews it.

recognised here), restrictions and reporting requirements for dealings by directors,

Both markets require publication of a

management and their related parties

competent person’s report on the company’s

(including close periods for 30 days ahead

material assets, prepared to a recognised

of annual and interim results), and the

standard like JORC or CIM.

maintenance of insider lists.

AIM does have a ‘fast track’ admission

Whilst these are prescriptive, in practice

process for companies that have been listed

companies can adapt existing disclosure and

on certain designated exchanges, including

dealing policies to comply with UK law.

ASX and TSX, for at least 18 months. Whilst this is supposed to be quicker and cheaper,

Thresholds at which shareholdings must

in our experience Nomads’ desire for full

be disclosed are different in London, and in

disclosure and brokers’ requirements for a

particular are lower than those in Canada –

comprehensive marketing document mean

for AIM, disclosure is at 3% and then every

that in practice the ‘fast track’ process is

1% thereafter; for non-UK companies on the

seldom used.

Main Market disclosure is at 5% intervals up

How much work is it?

to 30% and then at 50% and 75%.

For companies already listed on the ASX or

It is an advantage to have a director based

TSX, a London listing shouldn’t add too much

in the UK, who has familiarity with the UK

extra regulatory burden, and a Main Market

markets, and investors would typically expect

listing is actually a lighter touch than AIM.

this. Corporate governance is on a ‘comply

London’s markets have similar disclosure

or explain’ basis, and for ASX and TSX listed

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COLUMNS | Michael Dawes

companies their local corporate governance

fundraisings

codes are sufficient.

AIM has no restrictions on the number of shares that a company issues or the price at

For AIM companies with businesses that

which it issues them. AIM is therefore ideal

haven’t been independent and revenue

for companies that expect to be accessing

earning for at least two years, directors, 10%+

the capital markets on a regular basis, as

shareholders and employees with holdings

fundraisings can be concluded very quickly.

over 0.5% are not permitted to sell shares for a year from listing.

Main Market companies have to publish another prospectus if they issue more than

The Main Market has no mandatory escrow

20% of their share capital in any 12-month

provisions, but in practice a broker may

period.

require an escrow from directors and major shareholders where there is a significant

This adds to the cost and timetable for a

fundraising.

major fundraising, although for a typical

Restrictions on further

development company that will aim to have just one large fundraising this alone wouldn’t be a reason to choose AIM over the Main

Resource Global Network

Market. Premium Listed companies require

In practice, the difference in cost shouldn’t be

shareholder approval for fundraisings at a

great enough to be a determining factor in

discount over 10%.

choice of market.

Costs Every company is different, and so it is difficult to give a meaningful estimate of the fees for listing in London. Typically, we would expect the initial costs of an AIM listing and

The content of this article is for general information only

a Standard Listing on the Main Market to be

and it does not constitute legal advice. Accordingly, no

comparable, with the ongoing costs of an AIM

reliance may be placed on any of the information or

listing being a bit more expensive due to the

opinions contained in this article. Each transaction is

obligation to retain a Nomad.

different and specific legal advice should be taken on each transaction and in each relevant jurisdiction, as applicable.

aj

53

Building a Multi-Asset Mid-Tier West African Gold Producer

TSX: TGZ OTCQX: TGCDF

AFRICA. IN THE PALM OF YOUR HAND.

ONLINE NOW WWW.AFRICANBUSINESSNETWORK.CO.ZA

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MINING | AfriTin Mining

AFRITIN MINING Building the African tin champion

Resource Global Network

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MINING | AfriTin Mining

Tin is an important commodity with multiple uses in modern society that go beyond widely held associations with goods such as tin cans, cups and roofs.

These outmoded beliefs are a misnomer when considering the growing importance of tin in contemporary electronics and other high-tech industries, with latest research indicating that tin can dramatically improve the performance of lithiumion batteries, for example. Tin continues to be one of the better performing commodities on the London Metals Exchange and the global tin market is anticipated to be valued at US$8.23 billion by 2023.

However, the market has been rooted in a deficit for the last five years with demand rising from industrial markets and production falling as a result of depleting global reserves and tightening regulations in China – a world leading tin producer.

This equilibrium pricing scenario in the tin sector is creating a ‘perfect storm’ for a company like AfriTin Mining, according to its CEO Anthony Viljoen. AfriTin is a Londonlisted miner which intends to become the ‘African tin champion’ through the development of its portfolio in Namibia and South Africa.

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MINING | AfriTin Mining

“Demand and supply are moving away from

developing the Uis Tin Project in Namibia,

each other quite rapidly and we saw a similar

which is focused on a pegmatite-hosted tin

scenario developing in the vanadium market

deposit that happens to be one of the largest

recently which resulted in prices going up by

open castable deposits of its kind.

1000%. We are excited by that and believe that what we call minor metals offer good

AfriTin holds three project areas at Uis, all

market fundamentals and strong upward

of which saw historical production from

price movement prospects,� says Viljoen.

the mid-20th century up to 1990, when production ceased as a result of depressed

Tin is not an abundantly occurring mineral

tin prices. Therefore, the project comes with

around the world, and large industrial scale

a non-JORC compliant resource of 73 million

deposits are rare outside of the major tin

tonnes (Mt) at 0.136% tin.

producing countries of China, Indonesia and Peru, Bolivia and Brazil from Latin America.

This historic resource is based on a large amount of drilling data conducted by SRK

Africa used to be the fourth biggest exporter

when it was operated by the South African

of tin in the world, but today there are no

state-run company Iscor, and Viljoen has

active industrial scale tin mines in operation.

no reason to believe that the figure is likely

However, AfriTin is in the process of

to change in the company’s imminent JORC resource announcement.

Resource Global Network

A giant tin resource

edition ranking it the fourth best African

In fact, if the non-JORC resource were to be

jurisdiction for mining and investment.

confirmed, it would place Uis in the top 10 tin mines globally and in the top two for Africa,

Returning to the Uis project, AfriTin will

alongside Alphamin’s Bisie project which

publish a JORC-compliant resource before

is being developed deep in the jungle of

the end of H1 2019 ahead of completing a

Democratic Republic of Congo.

scoping study and the commencement of a bankable feasibility study (BFS) by the end of

In comparison, AfriTin stands to benefit from

the year.

a strategically located project within trucking distance to Walvis Bay – a key port town on

While each of these resembles a significant

the coast of Namibia. In addition, AfriTin will

milestone in the near-term development of

be operating in a jurisdiction that encourages

the project, the company is most excited by

foreign investment in the mining sector, and

the extent of the tin mineralisation running

is regulated by a long-established Mining Act.

across the 15 km by 15 km licence area at Uis.

As a result, Namibia consistently ranks highly in the Fraser Institute’s Annual Survey of

“These pegmatite belts where the tin occurs

Mining Companies, with the most recent

run for hundreds of kilometres from the

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MINING | AfriTin Mining coast inland, and some of the belts are

Another exciting development was the recent

more mineralised than others. The ones in

discovery of lithium pegmatites at the ML

the Uis project areas are particularly highly

133 licence of the Uis project, located South

mineralised with tin,” says Viljoen.

of the main NR 134 licence. Viljoen explains how the pegmatites at Uis were formed by

During the four decades of historical tin

prehistoric lava flows which were intruded by

production at Uis, Iscor mined over 12

a variety of elements including tin, tantalite,

different open pits at points where they

niobium, beryllium and lithium.

found the pegmatite belts to outcrop. AfriTin has since conducted a geological mapping

While the ML 133 licence is outside of the

exercise and found another 180 outcropping

current development area at the Uis mine,

pegmatites all with visible tin mineralisation.

the discovery of lithium is encouraging and warrants further mineralogical testing at the

“By historic standards this would be one of

site.

the top 10 biggest tin mines in the world, but by modern standards, this is real behemoth

“It’s a non-core asset for us at this stage, but

of a deposit. We are only focusing on one

it does give us an opportunity to realise value

outcropping pegmatite at the moment, but

from the licence, either by partnering up with

there is so much upside from a resource

someone else or looking to maybe spin it off

perspective, it will take us decades to

on its own in the future,” says the CEO.

evaluate it to its fullest extent.”

ResourceGlobal GlobalNetwork Network 63 Resource

Phased production approach AfriTin has taken an unorthodox approach to the development of the Uis project, in the sense that during the last 12 months the company has begun building a phase 1 processing plant while still in the process of proving up the resource.

“We decided to do the plant and the resource confirmation concurrently because we had access to all of the historic resource information for Uis. The process flow of the circuit is not complex either, being a gravitybased separation.

“So, I’ve been able to get a really crack team of in-house engineers on the job which has given us a lot of confidence to go into phase 1 production while we are concurrently proving up the resource.”

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MINING | AfriTin Mining

Resource Global Network The other major benefit derived from building a phase 1 production facility is the opportunity to generate early cash flows while significantly de-risking the full-scale production phase.

“A phased development approach gives us cash flow rather than having to go back to market all the time, and it gets our tin out into the market,” explains Viljoen.

“When the current demand and supply elements for tin start feeding into the general market we would expect the tin price to tick up and the best way to take advantage of that is to have your tin product circulating in the market.

“Having early production really stamps our focus on the tin market and says that we are a player to watch in the future,” he adds.

AfriTin has been able to utilise the mining expertise that resides in Namibia throughout the process of confirming the resource and building the phase 1 plant for Uis. In fact, the level of expertise and equipment that is available in-country is such that the company has not had to use international suppliers, aside from a few additional components from China.

The company’s main contractors are Windhoek-based Crush Plant, a national subsidiary of South African engineering

Anthony Viljoen, AfriTin Mining CEO

group Osborn, and Metallum Fabrication who provide structural and stainless steel fabrication solutions.

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MINING | AfriTin Mining

Local beneficiation

but the multiplier effect of a large mining

Placing Uis in its geographic context in the

operation is exactly what the communities

Erongo region of Namibia, AfriTin has a duty

need, in terms of job creation and further

to ensure that the local communities benefit

long-term economic beneficiation.

from the project as much as the company will. As such, AfriTin has placed a strong focus

“We are looking at various initiatives for

on community engagement throughout the

employing as many local people as possible,

development.

particularly those semi-skilled people who worked on the mine before it closed. In

There was no natural economic activity in the

general, we plan to upgrade water and

region prior to the historic mine, but since

electricity supply which will have an indirect

operations ended in 1990, the local mining

but definite multiplier effect on economic

communities suffered as the main source of

activities.

economic activity was taken away. “We believe that a happy mine is based on a In recent years tourism has provided some

happy community, so we will look to stick to

respite to conditions of poverty in the region,

that mantra. Our local operating company

Resource Global Network

is 15% owned by a nonprofit organisation

This target would be achieved either

that looks after all of the communities near

through resource expansion at Uis or

the mine. They all have a direct exposure to

from consolidation of other assets in the

profitability and that’s the way sustainable

portfolio, notably the Mokopane project in

mining should happen these days.”

South Africa. In the near term, the company will deliver a number of catalysts for value

When the Uis mine reaches full scale

creation, starting with early production from

production it will produce in the region of

the phase 1 plant.

5,000 tonnes of tin concentrate a year. This rate would make AfriTin a significant player in the global tin market, however Viljoen aims to push the company’s overall production up to 10,000 tonnes a year.

AIM:ATM

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MINING | Atalaya Mining

Resource Global Network

ATALAYA MINING Multi-asset copper production in Spain

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MINING | Atalaya Mining

The company that is today called Atalaya Mining first started trading on London’s Alternative Investment Market (AIM) in May 2005. Exactly two years later, the company (then called EMED Mining) was granted an option to acquire the Rio Tinto Copper Mine known as Proyecto Riotinto in Spain. However, it was not until 2014 that Atalaya received the approved Unified Environmental Authorisation (AAU) for the project, which set the foundations for the firm to begin construction and refurbishment of the historically producing mine a year later. By 2016, Riotinto had commenced commercial production and during the past three years Atalaya has expanded the facilities at the mine and acquired an interest in another copper project in Spain.

Atalaya’s phased, earn-in agreement to acquire up to 80% ownership of Proyecto Touro, a brownfield copper project in Spain’s Northwest, represents a key step towards the company goal of becoming a leading multi-asset copper producer in Europe.

“We are still a small company compared with the big producers, but we are on the

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MINING | Atalaya Mining way towards becoming a mid-tier copper

quartet of cornerstone investors that are well

producer,” says Atalaya’s CEO and director

renowned across the mining industry.

Alberto Lavandeira.

Multinational commodity trading company “There is a lack of companies on the London

Trafigura and Chinese smelting company

market, and on European markets in general,

Yanggu Xiangguang Copper each hold around

that are pure copper producers. This means

22% of the company, while private equity

we give investors greater leverage to pure

group Liberty Metals & Mining Holdings LLC

copper, as opposed to a larger multi-

and Orion Mine Finance own around 14%

commodity company.”

and 13% respectively.

Strong institutional backing

“These shareholders have been very supportive when the markets were down,

Despite Lavandeira’s acknowledgement that

which has been important because we

the company is not yet competing with the

needed capital and these guys were there.

major producers, Atalaya is backed by a

Resource Global Network It’s a blessing to have these powerful

“The main benefit of being in a European

shareholders, but we also have supportive

country is you don’t have the same country

smaller funds from the UK, Spain, Italy and

risk as you might have in South American,

the US.”

Asian and African countries,” Lavandeira asserts.

A key aspect of the business that has filled investors with confidence is the location of

“Secondly, both projects are close to

Atalaya’s assets in Spain – a stable jurisdiction

industrial areas where there are smelters,

with an established mining sector and

refineries, fertiliser sources and so on. This

excellent infrastructure in place around the

gives you a pool of educated and trained

mines.

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MINING | Atalaya Mining

people and allows you to make things of a

of Seville, that is 100% owned by Atalaya

very good quality.

through its Spanish subsidiary. The current plant was built over 30 years ago and

“There is no need for camps either, so people

operated by Rio Tinto until 2000, when it was

can go to sleep in their houses. There are

placed on care and maintenance due to low

also universities, good communications and

copper prices.

ports close by in both locations.”

“The first thing we did was put together a The close proximity of Atalaya’s assets to

good, experienced team that would be able

industrial centres and existing infrastructure

to lead the initial refurbishment phase. It was

has also allowed for the projects to be

an installation that had been built over 30

developed at a low capital intensity, especially

years ago, so there were lots of things we had

when compared to conventional copper

to fix including electronics and piping, plus

mines that are usually found in remote

additional equipment to install.”

locations.

Restarting Riotinto

The restart phase of the project was completed in February 2016, when first

Proyecto Riotinto is an open pit copper mine

commercial production was declared at an

in the Iberian Pyrite Belt, 65 km Northwest

initial processing rate of 5 million tonnes

ResourceGlobal GlobalNetwork Network 75 Resource

wasted no time in starting an expansion

Steady production growth

project to better capitalise on the +25 years

While the current expansion phase is not due

mine life at Riotinto.

to be completed until mid-2019, Atalaya’s

of ore per annum (Mtpa). However, Atalaya

ambitious growth plan at Riotinto has already The expansion phase aimed to increase

resulted in steady production progress

processing capacity to 9.5Mtpa and was

over 2018, which culminated in a record Q4

duly completed on time and on budget.

performance.

Now, the company is close to finalising the third phase of the project, which will boost

The company produced a record 11,172

capacity to 15Mtpa and allow for a nameplate

tonnes of copper in the final quarter of

production rate of 50-55,000 tonnes of

last year, contributing to a full-year haul of

copper per year.

42,114 tonnes. Considering this impressive 2018 performance and its track record of

“This is impressive when you consider its only

delivering consistent near-term growth,

five years since we received the mining rights

Atalaya has set its 2019 production guidance

for Riotinto and four years since we started

at 45-46,500 tonnes.

the refurbishments,� says Lavandeira.

Atalaya has also identified additional underground potential for base metals

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MINING | Atalaya Mining including copper, zinc and lead in adjacent orebodies at Riotinto, and has subsequently set aside €2.57 million for its exploration budget this year.

“The life of a mining company is dependent on continued exploration as assets get depleted. Therefore, it’s important to set aside a percentage of annual revenues for exploration, otherwise you have a limited life.

“We have not fully discovered the extent of the mineralisation around Riotinto. It has a lot of potential and we plan to drill the areas where we know there is something. We plan to define resources and add to our reserve life.”

Atalaya acquired a 10% interest in Proyecto Touro in 2017, before quietly undertaking two years of drilling and engineering studies without making a single announcement. The project is currently at the permitting phase, with the ball in the court of the Spanish authorities after the company submitted all the relevant studies and stakeholder communications.

Once the authorities return the crucial environmental impact statement (EIS) and Atalaya agrees to the various conditions laid out in the EIS, the company will exercise an option for an additional 30% interest in Touro.

Then, once project financing is secured and construction commences, Atalaya will

Resource Global Network

Alberto Lavandeira, Atalaya Mining CEO

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MINING | Atalaya Mining

exercise another 30%, taking its total interest

to exercise our option for at least 70% by

in the project to 70%. To reach the maximum

mid-2019, which is when the permit could

80% interest, the company would then make

possibly come through.�

a simple decision to increase its interest by another 10%.

Another low cost asset Atalaya completed a pre-feasibility study

“We are expecting things to go well from a

(PFS) for an open pit mine and concentrator

permitting point of view this year. We hope

in April 2018. The PFS indicated that Touro

Resource Global Network

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In addition, the PFS also provided strong project economics with a net present value of US$180 million and a life of mine total free cash flow of $489.3 million. However, Lavandeira is most pleased with the low capital and operating costs indicated in the PFS. “This is a project that has a very low capital intensity. It is not as low as initially thought because we have to spend $165 million on pre-production expenditure, but it is still very low because we are very close to a town, an airport, motorways and a port.

“The results have been good and that is why capex is modest compared to others.

The project has a lot of potential for upside, we have very good exploration ground, so this is only going to be the starting point.”

The Atalaya team has a strong track record of delivering growth and shareholder value, and given the recent progress made at its two low cost assets in Spain, Lavandeira has every confidence in his team continuing to deliver growth on time and on budget.

“Not only are we looking at these Spanish projects, we are also looking at other contained 392,000 tonnes of copper and 2.1

opportunities in Europe and other parts

million ounces of silver, which would give an

of the world, where we can leverage our

average annual production of 30,000 tonnes

experience. We are quite sure this company

of copper and 70,000 ounces of silver.

will continue growing.”

AIM:ATYM TSX:AYM

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MINING | IronRidge Resources

IRONRIDGE RESOURCES Creating value through discovery

Resource Global Network

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MINING | IronRidge Resources

IronRidge Resources is an AIM-listed junior exploration company that thinks like a major. The Australia-based firm is focused on building a diversified portfolio of mineral assets with large scale tenure positions in African frontier jurisdictions, and to a lesser extent in Australia. “We adhere to this strategy to immunise ourselves against a one project, one company strategy, which is not conducive to multiple wealth accretive discoveries,” says IronRidge CEO Vincent Mascolo. IronRidge’s focus on lithium and gold gives investors exposure to rapidly growing lithium technology markets while hedging prominent global economic uncertainty via a large gold exploration portfolio.

“Our business model is designed for multiple discoveries of globally demanded commodities, that’s where we see the first wave of value accretion for shareholders; in the discovery process and the development to decision to mine.

“Our strategy to concurrently diversify commodities and jurisdictions means that we always have something moving along; advancing projects, adding value and delivering positive news flow is paramount.”

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MINING | IronRidge Resources

Resource Global Network Over the last three years, IronRidge has

But if a project does not deliver, we will let it

methodically built its tenure portfolios in

go,” says Mascolo.

three African jurisdictions - Ghana, Côte d’Ivoire and Chad. During this period, the

“Today, we have nine province scale projects

company has also established exploration

at various stages of development with

teams in each jurisdiction.

significant discoveries in Ghana and Chad to date and we expect multiple discoveries in

Teams are comprised of accomplished

the pro-mining jurisdiction of Côte d’Ivoire in

geoscientists and mining professionals with

the next 12 months.”

extensive in-country expertise, whilst the board has significant experience in project

Multiple discoveries

discovery, mine development and operations,

IronRidge has made three discoveries in

debt financing and delivering shareholder

three jurisdictions over the last three years

value.

– a record which very few junior explorers can make claim to. The first discovery was a

The board and management team also have

bauxite deposit back home in Australia, but

significant vested interests in the form of a

deemed not to be a company maker, the

combined 9.3% shareholding to complement

project has effectively been placed on care

a strong institutional shareholder base.

and maintenance.

IronRidge is backed by DGR Global Ltd, Assore Ltd and Sumitomo Corporation –

However, Mascolo calls IronRidge’s second

three global corporates who will support the

recent discovery a ‘spectacular’ lithium

company at each phase of the commodity

project in Ghana, with world class drill

cycle, from discovery and development

intersections from surface, first quartile

through to production and sales.

grades and in close proximity to operational infrastructure.

“We have a strong shareholder base that continues to support the business model

The Cape Coast Lithium Project contains

and we have new investors coming in to

proven high grade spodumene pegmatites

further support the company. They actually

and is significant given the fact that it is

see that the business model is designed for

the first lithium discovery made in Ghana,

exploration success.”

opening up the possibility to establish a new lithium frontier in West Africa.

Shareholders have also been struck by the agility that IronRidge demonstrates when it

“The project has been very well received in

comes to portfolio building. “The idea is to

Ghana, they are calling lithium the new white

spread our wings far and wide, capturing as

gold. We see huge potential for new industry

many highly prospective projects as we can.

there and that’s why the project is supported from the highest levels of office in Ghana.”

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MINING | IronRidge Resources

IronRidge’s third discovery was a large gold

With investor markets still warming to Chad,

mineralised structure in Chad, where there

IronRidge recently made the decision to

has been little or no modern day exploration

acquire the Zaranou Gold Project in Côte

due to a historical focus on oil. Therefore, as

d’Ivoire, further expanding the company’s

the only active minerals explorer in Chad, the

portfolio in the jurisdiction, which is well

company holds first mover advantage with

understood by the investment community.

multiple advanced gold projects and multiple

In addition, the project has the potential to

targets across a 40 km strike

mimic and potentially dwarf what has been discovered in Chad, according to Mascolo.

“The first mover advantage provides the company with the potential to make

Two hot commodities

globally recognised discoveries in largely

Considering its most recent discoveries and

underexplored frontier regions. However,

acquisitions, it becomes clear that gold and

it does take more time to develop these

lithium will be IronRidge’s focus commodities

assets in the first instance and time for the

going forward, with both favoured by the

investment communities to appreciate the

company and the investment community for

opportunity.

different reasons.

ResourceGlobal GlobalNetwork Network 89 Resource

“Gold is a universal currency and it’s the

a lithium concentrate from the spodumene

staple form of traditional currency, which

dominant pegmatite ore at the Cape Coast

we particularly like. In addition, physical

project in Ghana, which would then be fed

gold is a reliable and trustworthy asset and

into the growing battery market worldwide.

is therefore an insurance against economic uncertainty.”

“With the support of the government and the influx of major European car manufacturers

The CEO also recognises the vast exponential

coming into Ghana, we can see there is the

growth story attached to lithium, which

potential to build an industry focus around

is derived from the global process of

a battery grade product, lithium hydroxide

electrification taking place across several

being preferred for the fast-growing electric

industries, most noticeably in the automobile

vehicle industry.”

sector with the rise of electric vehicles and stored energy.

However, this remains a long-term horizon for IronRidge and right now the company

IronRidge is currently investigating small,

is focused on testing several targets at the

medium and large scale methods to produce

project. Around 14,000 metres of drilling

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MINING | IronRidge Resources

has already taken place across the project,

deep sea port of Takoradi and adjacent to

with recent results delivering multiple high

grid power.

grade lithium pegmatite intersections at the flagship Ewoyaa project and new Abonko

“When you are this close to operational

discovery.

infrastructure, it implies low capital intensity and low operational costs. In summary, the

The results to date and ongoing exploration

lithium project in Ghana has the potential

has identified additional pegmatite

to deliver first quartile lithium grades, first

mineralisation around the peripheries of

quartile capex and first quartile operating

both projects and surrounding projects

costs.”

areas, including the historical Egyasimanku Hill deposit. The company plans to continue

Striking gold

drilling until the end of the year, at which

While the Ghana lithium project is IronRidge’s

point it will produce a maiden resource.

most advanced, the company is also advancing its 900 km² gold portfolio in Chad;

IronRidge is also fortunate enough to be

a potential analogue of the intrusion related

operating within close proximity to world

gold systems in the prolific Yukon-Alaska

class infrastructure. The project is located 1

Tintina Gold Belt.

km from a major highway, 100 km from the

Resource Global Network

“Today, we have nine province scale projects across multiple jurisdictions in Africa and have already made significant discoveries in Ghana and Chad” Vincent Mascolo, CEO IronRidge Resources The main focus across the portfolio in Chad has fallen on the Dorothe Gold discovery, which has extensive artisanal workings with visible gold nuggets at surface, over a 3 km x 1 km footprint.

So far, IronRidge has completed 14,564 metres of trenching at Dorothe, plus regional air magnetics and soil sampling.

“When we drill some holes and get proof

Vincent Mascolo, IronRidge Resources CEO

of concept in the anomalous footprint, we believe it could rival some of the largest

will provide the pipeline of future discoveries

open pit gold mines in the world today,” says

over the next 12 months.”

a confident Mascolo.

To conclude, IronRidge’s African In Côte d’Ivoire, IronRidge has plenty of

diversification strategy has served it well thus

exploration activities to get busy with in the

far, as the company closes in on significant

coming months, including at the Zaranou

lithium and gold discoveries in Ghana, Chad

project after the company’s venture partner

and Côte d’Ivoire. IronRidge’s business model

had the exploration licence granted covering

is designed to return shareholder value

397 km².

through the discovery and development of multiple projects across a diverse commodity

“Côte d’Ivoire is our early stage, greenfields

and jurisdictional portfolio.

exploration jurisdiction, which we believe

AIM:IRR

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MINING | Ferro-Alloy Resources Group

Resource Global Network

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FERRO-ALLOY RESOURCES GROUP Developing the world’s lowest cost vanadium deposit in Kazakhstan

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MINING | Ferro-Alloy Resources Group

Ferro-Alloy Resources Group (FAR) is developing the giant Balasausqandiq vanadium deposit in Southern Kazakhstan and listed on the London Stock Exchange (LSE) in March 2019.

The company had previously listed on the Kazakhstan Stock Exchange in 2017 as a precursor to floating on a major international bourse, due to a legal requirement which stipulates that companies with a majority of their assets in Kazakhstan must, when placing shares abroad, place at least 20% of the shares on the domestic market. Why did FAR choose the London market? CEO Nicholas Bridgen views London as a strong exchange with good liquidity and a convenient choice. “We are registered in Guernsey and have many British shareholders so there are obvious advantages to being listed in London. The LSE uses the CREST settlement system and London has a daytime overlap with Kazakhstan so communications are easier,” he says.

The London IPO raised £5.2 million which will be used to further develop and expand production at Balasausqandiq, with FAR already in production at the site through a small-scale treatment plant which processes secondary vanadium materials.

Resource Global Network

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However, the major focus going forward

The US$10 million expansion project is

will be the development of the large-scale

already underway and it provides a quick

Balasausqandiq vanadium deposit, along

and easy way to generate cash flow ahead

with the construction of a new standalone

of the big project, according to Bridgen. The

processing plant.

expansion will allow the plant to treat a wider range of vanadium-containing feedstocks and

“The bulk of the London capital raise will go towards the expansion of the existing

to produce higher-value products.

operation. To some extent you may think that

Eyes on the prize

is counter-intuitive as 95% of our value is in

Nonetheless, the real prize for FAR centres

the main project,” Bridgen suggests.

on the successful development of the Balasausqandiq deposit, which has the

“But, although most of the money from the

potential to be one of the world’s largest and

float is for the small project, about half of it is

lowest cost sources of vanadium.

on things which will be necessary for the big project as well, so in a sense we are starting

The scale of the deposit has previously been

the big project now.”

assessed using the local GKZ system, which estimated a reserve of around 70 million

Resource Global Network

“The scale of the deposit is huge. All of our orebodies outcrop to surface so if we start further exploration and drilling there may be an awful lot more” Nicholas Bridgen, CEO Ferro-Alloy Resources Group

tonnes (Mt) of ore without going to full depth

However, the deposit is world class not

on most of the orebodies.

because of its size, but mainly due to the unique nature of its mineralisation compared

However, under the more commonly used

with most other vanadium deposits. The

JORC basis the resource for one orebody

majority of the world’s vanadium is found in

(OB1) was estimated at 24.3 Mt. The

vanadiferous titanomagnetite (VTM) deposits.

remaining four orebodies are classified under JORC as exploration targets which, taking the

Containing high levels of iron oxide, ore

centre of the estimated range, would give a

from VTM deposits must be subjected to

total resource of around 126 Mt.

a complex treatment route to produce the vanadium product. The usual process

“The scale is huge. We’ve only really scratched

involves making a magnetite concentrate

the surface of it with drilling and exploration

before roasting the material at a temperature

so far. All of our orebodies outcrop to surface

of around 1,100 °C.

so if we start further exploration and drilling there may be an awful lot more,” Bridgen

“That is an expensive process in terms of

exclaims.

both capital and operating costs. For capital

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MINING | Ferro-Alloy Resources Group

Ferro-Alloy Resources Group listing ceremony at the London Stock Exchange, March 2019 costs you need a concentrator plant and then

capital and operating costs by around 60%,

a roasting plant, which involves bringing in a

which should make FAR the lowest cost

huge amount of power further contributing

vanadium producer in the world.

to operating costs. After all those steps, the metallurgical recovery is typically only around

“We have an orebody that is amenable to a

75%.”

treatment process which is in a different class from all other vanadium deposits. That is

Fortunately for FAR, the Balasausqandiq deposit is sedimentary and contains no iron,

what’s special about us,” Bridgen proclaims.

which means the ore can be treated directly

Sweetening the deal

with sulphuric acid in an autoclave to make a

In addition, the project’s value is further

solution without the need for a concentrator

sweetened by the presence of by-

or a roaster.

products including carbon-silica, uranium/ molybdenum and potassium alum. These

Overall recovery is expected to be over 90% and acid consumption is low. This reduces

by-products will allow FAR to utilise 100% of

ResourceGlobal GlobalNetwork Network 101 Resource

the ore for saleable products, meaning the

business environment following the break-up

company will produce no tailings from the

of the Soviet Union 27 years ago, dismantling

process plant.

red tape, reducing bureaucratic procedures and making it easier to do business.

“The by-products more than pay for the whole of the operation including mining and

FAR’s CEO adds further weight to the view

treatment. I’ve often commented that if there

of Kazakhstan as an attractive investment

were no vanadium at all in the deposit, it

destination, reporting that his company

would still be economic. Based on our long-

has experienced no difficulties operating in

term price assumptions, we expect a third of

the central Asian nation, and has received

our revenue will come from by-products.”

a significant degree of government support over the years.

Operating in Kazakhstan may once have been considered a risky choice by many Western

The company has a tax incentive agreement

investors, but this is no longer the case since

with the government, whereby it will pay 0%

the government moved steadily to reform its

income tax on its processing operations until

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MINING | Ferro-Alloy Resources Group

2026 and has a property tax exemption until

grow strongly as a result of higher strength

2024. While Kazakhstan continues to face

steels being mandated for construction

legacy issues from the authoritarian Soviet

purposes, but the real upward demand

era, the political situation is described as

pressure may come from the burgeoning

stable by FAR.

energy storage industry.

“I think they have a system of government

Vanadium Flow Batteries (VFBs) have been

that suits the state of development of the

developed to support renewable energy

country and has enabled them to reform at a

facilities through storing large quantities of

very fast pace. From a business point of view

energy produced by solar and wind farms.

it’s ideal.”

The growth potential of this industry is demonstrated by a recent Adriot Market

In addition, FAR is set to benefit from

Research forecast, which stated that the VFB

excellent regional infrastructure, including

market would surpass a CAGR of 59.7% from

sophisticated road and rail networks linking

2018-25.

to markets in China, Russia and Europe and ample sources of power and water nearby.

Doubling down on demand

According to Bridgen, FAR is one of a select few primary vanadium producers that is well prepared for this potentially huge demand increase from the VFB industry.

The global steel market accounts for the lion’s share of vanadium demand, with some

“One of the good attributes of our ore and

estimates suggesting that steel applications

the process we use is that we naturally

account for over 90% of total consumption.

produce a very high purity product. It would

Demand from the steel sector is expected to

take a little more work to reach a purity

Resource Global Network

required by the battery industry, but it’s

With the London listing ticked off the agenda

much easier to reach that standard starting

and detailed plans in place for the smaller

with our product than from the typical

and main projects at Balasausqandiq, FAR is

magnetite-derived product.”

at the beginning of an exciting period which could culminate in the transformation of the

From here, a lot will hinge on how the VFB

global vanadium market.

market develops in terms of FAR’s customers for its battery grade vanadium product.

“We certainly can ramp up our production

The company is talking to various battery

quicker and far cheaper than anybody else.

manufacturers and although at this stage the

We will go from being relatively unheard of

channels to market remain unclear, Bridgen

to a middle-sized producer over the next

is confident that FAR will play a crucial role

two years, and over the next three to four

from the supply side.

we will become one of the world’s largest producers.”

“A battery industry could potentially double demand for vanadium and it’s hard to see where that will come from apart from us, because only we can turn on the taps quickly and cheaply and produce a large amount of vanadium at a price that keeps the vanadium battery market competitive.”

KASE: GG_FERR LSE:FAR

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MINING | Bushveld Minerals

BUSHVELD MINERALS

The vertically integrated primary vanadium producer

Resource Global Network

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MINING | Bushveld Minerals

The rapid rise of Bushveld Minerals in the global mineral development space has been a remarkable sight to behold, given that it has developed into one of only three operational primary vanadium producers in the world despite only being incorporated in January 2012.

Two months later Bushveld was listed on London’s AIM as a mineral development company focused on exploring and developing projects in South Africa’s Bushveld Complex.

Today the company owns three high grade vanadium assets, one already in production and two under development, which provide a total resource base of 440 million tonnes (Mt). Bushveld currently supplies around 3,000 Mt of vanadium from its Vametco mine - representing 3% of the global vanadium market. With expansion plans underway at Vametco plus targeted brownfield opportunities, Bushveld aims to expand its Group production to 10,000 Mt in the medium term.

The company consists of two flagship platforms: Bushveld Vanadium and Bushveld Energy. The former is a growing, low cost,

Resource Global Network vertically integrated primary producer which manages the three vanadium assets in the Bushveld Complex.

The latter is a leading energy storage project developer and component manufacturer, exclusively focused on Vanadium Redox Flow Batteries (VRFB) technology. “Bushveld Energy was accordingly launched in 2016, to capture a share of this attractive market,” says Bushveld’s CEO Fortune Mojapelo.

“Bushveld Energy’s business model envisages activities along the VRFB value chain and will include an electrolyte capacity in South Africa, a VRFB assembly and manufacturing as well as an energy storage project development.”

The best performing commodity Without a doubt, vanadium has been the front runner of the commodity price market in recent years, surging by more than 365% in the last three years from US$18.6 per kg of vanadium to US$81.2 per kg in 2018.

Mojapelo explains that this astronomical price increase in vanadium has been driven by a fundamental supply deficit in the vanadium market, arising from growing demand underwritten from the steel sector, which accounts for around 90% of vanadium consumption.

“The steel market is set to continue supporting robust vanadium demand,

Fortune Mojapelo, Bushveld Minerals CEO

which is expected to grow at a CAGR of approximately 2% over the next 10 years,

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MINING | Bushveld Minerals

supported by the increased intensity in use

“The market share of VRFBs compared

of steel in emerging markets, particularly

to other energy storage technologies is a

in China, underpinned by the improved

key assumption,” states Mojapelo. “Recent

enforcement of regulations.”

trends to revise energy storage forecasts upward imply that vanadium demand from

Therefore, Bushveld believes that the current

VRFBs may be greater than expected, even

vanadium price and supply/demand gap

under ‘aggressive forecasts’. Within 10 years,

suggests that there is sufficient incentive

demand for vanadium by energy storage

to stimulate new production from existing

could equate to 50-100% of today’s global

primary producers, which is exactly what the

market.

company plans to do in the near term.

“The current market dynamics point to a Bushveld’s unique position as one of three

positive price outlook, underpinned by a

operational primary vanadium producers,

growing deficit which we believe can only be

and one of only two vanadium-focused pure

closed by existing quality primary vanadium

play companies, will also allow the company

producers like Bushveld Minerals, who are in

to leverage its large low cost production base

a position to scale up production.”

and be a catalyst in the emerging energy storage industry.

Resource Global Network

The resource base

adjacent to Vametco. “The mineralisation

The Vametco Mine in Brits, North West

is outcropping and a continuation of the

Province is a low cost vanadium mine with

Vametco deposit strike with similar or higher

a 142.4 Mt resource that also produces a

vanadium grades,” Mojapelo reports.

trademark vanadium product, Nitrovan® as well as modified vanadium oxide (MVO).

Recent drilling results have indicated vanadium grades in magnetite of 1.54 - 2.09%

Bushveld increased its controlling interest

vanadium pentoxide, again similar to the

in Vametco to 74% in September 2018

mineralisation seen at the Vametco Mine.

through a series of transactions, having first

Therefore, Bushveld expects Brits to support

invested in the operation in April 2017. The

Vametco or other brownfield facilities when

firm recently commenced an operational

it comes online, but first the company must

transformation programme to enhance

complete a mineral resource estimate that is

Vametco’s production efficiency.

scheduled for Q1 2019.

Another key part of this ambitious medium-

The Mokopane Vanadium Project is the

term production target is the development of

final component of Bushveld’s vanadium

the Brits Vanadium Project, which comprises

triumvirate and happens to be one of the

prospecting rights on several farms

world’s largest primary vanadium resources,

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MINING | Bushveld Minerals

Resource Global Network

“The current market dynamics point to a positive price outlook, underpinned by a growing deficit which we believe can only be closed by existing quality primary vanadium producers like Bushveld Minerals, who are in a position to scale up production.”

Fortune Mojapelo, CEO Bushveld Minerals Mt reserves and high in-situ (1.4%) and in-

The next generation of energy storage

concentrate (1.75%) vanadium pentoxide

The formation of Bushveld Energy and

grades.

Bushveld’s subsequent entry into the VRFB

with a 298 Mt JORC resource including 28.5

sector was intended to position the company A positive pre-feasibility study was completed

at the vanguard of the next generation of

back in January 2016 which indicated a

energy storage technology.

25% IRR, $300 million capex and a 5,500 Mt per annum production rate. The intention

“The company believes that VRFBs are well

remains to secure a new order mining

positioned to take a significant share of the

right and either develop Mokopane into

global utility-scale energy storage market,

a vanadium mine and processing plant or

where their distinctive features, including

supply ore from the project to plants in China

low life-of-battery costs, 20-year life without

and/or elsewhere in the world.

performance degradation, flexible scalability, long duration energy storage capacity and

Bushveld’s target is to grow its production

inherent safety give them a significant

platform from the current levels of

advantage over other technologies.”

approximately 3,000 Mt of vanadium to 10,000 in the medium term. The company’s

VRFB technology combines the performance

assets are positioned in first to second

advantages of flow batteries with the

quartile cost curve position. Bushveld aims to

simplicity of using just one natural element

keep reducing costs and be cash generative

– vanadium. Flow batteries use a liquid

throughout the cycle.

electrolyte to store energy, this allows for near unlimited recharging (or cycling), easy scaling by just adding more electrolyte and negligible performance deterioration over long periods of time.

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MINING | Bushveld Minerals

Resource Global Network As a result, for daily energy storage of a few hours or more, flow batteries provide the most cost-effective means to store energy.

The advantage of vanadium, lies in its ability to exist in four different oxidation states and its water-solubility, allowing for a simpler battery with fewer inputs and no flammable elements.

Having said that, Mojapelo points out that the most common question about VRFBs is how they compare to lithium-ion battery technology. “There is no clear superiority, with use cases and site requirements often determining the optimal solution. VRFBs and Lithium-ion are non-competing technologies,” he says.

“Nonetheless, Bushveld has seen the global deployment of VRFBs increase year-on-year and has made significant progress defining the energy storage market opportunity, building industry awareness for VRFB and developing a business model for Bushveld Energy.

“The business model is anchored in Bushveld Minerals’ low-cost production platform and smart partnerships along the VRFB value chain.” One such relationship is with UniEnergy Technologies (UET), a US-based manufacturer of turn-key, large and mediumscale energy storage systems for utility, micro-grid, commercial, industrial and other applications.

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MINING | Bushveld Minerals

The future of Bushveld Minerals Taking into consideration the sky-high

electrolyte. The electrolyte is sold to VRFB companies or direct users/buyers of VRFB systems.”

potential of the VRFB technology industry, Bushveld Energy is set to take up a larger

Mojapelo also highlights Bushveld Energy’s

role in the wider Bushveld story, as vertical

role in developing the energy storage value

growth opportunities multiply across the

chain in South Africa through the application

Bushveld Energy division.

of South Africa-mined and beneficiated vanadium in VRFBs.

“A key part of Bushveld Energy’s strategy is the creation of an electrolyte production

“As a leading primary vanadium producer

facility which Bushveld Energy is establishing

and exporter, South Africa serves as the

with the IDC. The electrolyte manufacturing

logical base for VRFB manufacturing.

will include building and operating a

This includes multiple steps of mineral

chemicals plant that purifies vanadium

beneficiation, including converting vanadium

feedstock and converts it into a liquid

into electrolyte and assembling VRFBs locally.

Resource Global Network

“We are convinced that significant demand

acquisition opportunities to build a 10,000

will come from Africa and for similar logic to

Mt production platform in the Bushveld

locating electrolyte production here in South

Complex, along with exciting opportunities in

Africa. Especially in the South African market,

the lively VRFB technology sector.

local content plays a key determining factor and we believe that no battery technology

This growth plan provides a sound basis

can come close to competing with VRFBs on

for the company to develop into one of the

this criterion in South Africa.�

largest, lowest cost, vertically integrated primary vanadium producing companies and

Overall, Bushveld Minerals is advancing a

one of the most influential organs of South

significant horizontal and vertical growth

Africa’s emerging energy storage industry.

plan, incorporating brownfield expansion and

AIM:BMN

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MINING | Hummingbird Resources

HUMMINGBIRD RESOURCES

checks in with Hummingbird Resources’ MD Dan Betts

Resource Global Network

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MINING | Hummingbird Resources

2018 was a year of transformation for Hummingbird Resources as the AIM-listed company completed its journey from gold explorer to gold producer at the Yanfolila mine in Mali, West Africa. After ramping up to full-scale production in Q1, the miner went on to pour 91,620 ounces of gold in 2018 – only a few hundred ounces short of its top end revised guidance, after an unusually heavy wet season limited capacity at Yanfolila.

However, the Hummingbird team rose to the challenge and executed a remediation plan to get the operation back on track this year, as it works towards a 2019 guidance of 110-125,000 ounces of gold. Also on the agenda for Hummingbird this year is the construction of a second ball mill at Yanfolila and a near-mine exploration campaign. RGN’s editor catches up with Hummingbird’s managing director Dan Betts, who also discusses the firm’s partnership with Cora Gold and the Dugbe project in Liberia.

Jacob Ambrose Willson: Dan, after reaching nameplate capacity at the Yanfolila mine in Q1 last year, the

Resource Global Network primary target for Hummingbird in 2018 was to maintain those production levels.

What challenges arose over the course of the year and how happy are you with the overall gold output of Yanfolila in 2019?

Dan Betts: 2018 was an important year for us at Yanfolila, with successful ramp up of operations and consistent grade and recoveries coming out of our plant. Of course, the latter part of the year proved slightly more challenging when stability issues were identified at the Komana East pit and a public bridge on the road to site was issued a restrictive weight limit. These issues were a result of unusually heavy wet season.

With our remediation plan nearing completion though, the Group is now in a good position to return to full capacity and continue the cash generation that Yanfolila is capable of. Notwithstanding, we are one of the top 10 UK producers in year one of operation, we’re confident with the guidance figure we’ve given for 2019 and look forward to pouring more gold!

JAW: How will Hummingbird ensure Yanfolila hits its 2019 FY guidance of 110125,000 ounces and therefore ensure the company returns to full profitability?

DB: Last year’s issues have certainly made for a more experienced and skilled team and we can now take what we’ve learned from those challenges to work towards a wholly positive 2019. Our project to install a second ball mill is due to be complete in Q3 and this will

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MINING | Hummingbird Resources

Resource Global Network increase our plant throughput towards the end of the year. All together, these elements will help us deliver on our expectations.

JAW: Hummingbird also embarked on an exploration programme at Yanfolila last year. To what extent have the recent high grade returns from the Gonka and Komana West deposits increased confidence in the extension of the mine life at Yanfolila?

DB: The drilling results have been hugely encouraging. Drilling commenced in July last year and has more recently focused on the resource definition at Gonka, with some further follow up drilling at Komana West.

The results have highlighted the high grade returns from Gonka as well as signified zones at Komana West inside the minable pit shell (previously found outside the resource model). The results collectively give us encouragement that we can increase the mine life at Yanfolila.

JAW: How much further exploration is required across the six near-mine deposits in 2019 in order to convert the maximum amount of resources to reserves?

DB: So far, the Group’s exploration drilling has focused on infilling the open pit resources. Our attentions will now switch to drilling out the underground resources at Gonka, which is very exciting since this is where the highest grades and wider intervals

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MINING | Hummingbird Resources

have been previously drilled by Gold Fields

increase throughput capacity from 1Mtpa to

Ltd, the former licence owner.

1.24Mtpa (+24%) when operating at 100% fresh ore. With our service contractor AMS,

Once the exploration results are received

we are also evaluating ways to streamline

and analysed, we can set out the findings and

operations and allow further throughput on

see how these can benefit the mine life at

an ongoing basis.

Yanfolila, which should be within the course of the year.

JAW: Turning to Hummingbird’s partnership with Cora Gold, how are you

JAW: How important is it for Hummingbird

assisting them with their exploration

to continue developing Yanfolila’s

efforts in Mali near the Yanfolila mine?

facilities as it anticipates further reserve growth?

DB: We’re encouraged by Cora’s progress in Mali and while we don’t have a part

DB: Developing our capacity is a key objective

in operationally assisting the Group per

and a second ball mill will significantly

se, Yanfolila does provide optionality

IT’S IN OUR DNA TO WORK HARDER Few mining contractors know Africa like we do. For 25 years, we’ve had the mining fleet, people, safety record and know-how to mine productively anywhere in Africa.

GET TO KNOW US AT AMSGH.COM

BRINGING MORE TO MINING

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MINING | Hummingbird Resources for their exploration campaign. Bert Monro, Hummingbird’s head of business development, sits on Cora Gold’s board and is there to lend his extensive experience in the sector.

JAW: How much of a priority will the development of the Dugbe gold project in Liberia be in 2019?

DB: The Dugbe Gold Project currently has a gold resource of 4.2Moz, so it’s a significant asset and one of real value to Hummingbird.

The Dugbe Mineral Development Agreement (MDA) is now going through the final phase of approval from the Liberian Government.

Once this is complete, we will be able to consider our next steps for the project.

JAW: The partnership with Cora (who are also active in Senegal), along with Hummingbird’s own assets in Mali and Liberia, shows a real commitment to West Africa’s gold industry. What can you say about West Africa as an investment jurisdiction and as a world-class gold hub?

DB: West Africa has been a prosperous and important part of Hummingbird’s success.

We’re proud of our in-country relations and what we’ve achieved in the region to date. While we do look at a broad range of projects globally, the region speaks for itself as a prolific gold exploration and production area. Ultimately for us though, it’s about finding the right project for Hummingbird, which comes down to our experience and strengths.

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MINING | Hummingbird Resources

Resource Global Network JAW: Hummingbird undertook a targeted year-round local community beneficiation programme in 2018, which involved creating employment opportunities for local women and clean water initiatives amongst other areas. What will the company focus on in 2019 as part of its approach to responsible mining?

DB: Last year’s far-reaching responsible mining projects were carried out successfully and we’ll be setting ourselves the same ambitious goals for 2019. The programme has not been published yet but continues our focus on water and sanitation, agriculture, local employment, education and crucially, health. The latter in particular is hugely significant to us and I’m pleased that we’ll be continuing our partnership with Critical Care International (CCI) to deliver an incredibly high standard of healthcare to the mine and local communities.

JAW: Finally, if the main priority for Hummingbird last year was consolidation, what is the stand-out objective for 2019?

DB: The plan for 2019 is to focus on achieving production guidance and completing the second ball mill project to time and budget.

Together with further positive exploration results, we would hope to establish ourselves as a mid-tier mining company in 2019.

AIM:HUM

b a r j

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APPOINTMENTS & EVENTS

APPOINTMENTS MABC brings in new president and CEO The Mining Association of British Columbia (MABC) has announced the appointment of Michael Goehring as President and CEO, effective May 1, 2019.

Goehring brings more than 20 years’ experience in public affairs and strategic communications in the mining, energy, forestry, utilities, technology and trade industries.

“Mining is critical to our economy and communities across B.C., and there are significant opportunities for the industry to make an even greater contribution to our province’s future,” he said in a statement.

U.S. Gold Corp appoints former Interior Secretary Ryan Zinke to board Former US Secretary of Interior Ryan K. Zinke has landed a position on the board of directors at U.S. Gold Corp.

Zinke said that his new job does not violate any prohibitions on postadministration lobbying, after he resigned from his role as Interior Secretary earlier in the year.

“I look forward to joining a winning team. U.S. Gold Corp. has attractive exploration and development projects in two mining friendly jurisdictions of Wyoming and Nevada,” he added.

Genel Energy promotes Bill Higgs to top executive role Genel Energy has named oil veteran and chief operating officer Bill Higgs as its new chief executive officer.

Outgoing CEO Murat Özgül will not stand for re-election at the general meeting in May and will be a special adviser to the board.

“Bill was recruited by the Board as a potential successor to Murat... he is the right person to continue growing the company and delivering on our strategy,” said chairman Stephen Whyte.

Former Orsted chief becomes chairman of wind energy at GIG Macquarie’s Green Investment Group (GIG) has appointed former Orsted chief executive Samuel Leupold to the newly-created position of chairman of wind energy.

Leupold has 20-years of experience in the energy sector and was most recently head of offshore wind with Orsted before stepping down in early 2018.

Leupold said he was ‘very excited’ to be joining the team at the Macquarie-owned investment fund, which to date has invested in 14 projects totaling over 4.5GW of capacity.

Resource Global Network 131

EVENTS Our pick of the top mining, oil & gas and renewable energy events happening around the world in the months to come

Energy Mines and Money June 11-13 Brisbane Australia Future of Mining EMEA June 26-27 London United Kingdom 2019 International Renewable Energy Conference (IREC) October 23-26 Seoul South Korea

International Mining and Resources Conference + Expo (IMARC) October 28-31 Melbourne Australia

Africa Oil Week November 04-08 Cape Town South Africa

Want to promote your resources event?

Email the editor at editorial@resourceglobalnetwork.com

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