regency mines corporate presentation dec 2018 update · 2018-12-07 · mambare - png nickel -...

Regency Mines

Corporate Presentation

Dec 2018 UpdateLondon Stock Exchange AIM Listed: RGM

Nickel-Cobalt

“Energy Revolution”

Battery Metals

Metallurgical Coal

Natural Gas

Hydrocarbons

EsTeq Ltd.

Battery Storage

Battery Technologies

Mining Technologies

Technology

Joint Ventures

Disposals

Asset Sales

Transactions

www.regency-mines.com Regency Mines PLC : AIM RGM

Regency Overview

Mambare - PNGNickel - Cobalt JORC Resource

Large Scale and 3% Explored to Date

New Framework Agrement with JV Partner

Licenses Renewed – 2019 Workplan

Curzon Energy PLC– OR, USACoal Bed Methane Project

$20m Historic Spend

5 Wells in Place

Further Development Planned


Mining Equity Trust- USAMet Coal Roll Up Vehicle

Completed First Acquisition – Omega Holdings

Production at Omega Ongoing

Additional Targets Under Consideration

Global Footprint

EsTeq Limited - UK RGM Subsidary – 100% Owned

Battery Storage and Related Technologies

2 Investments Made to Date

RGM Leveraged to Disruptive Changes in Global Battery Technologies and Battery Proliferation


Strategic Themes

Battery Metals

o Mambare – Nickel / Cobalt Project

o Key Elements of Cathode Raw Materials

o Metals for Lithium Ion Batteries

o Electric Vehicles / Battery Storage / Grid Storage

Battery Technologies

o EsTeq – Energy Storage Technologies

o Battery Focused Subsidiary

o Whitecar Ltd –all Electric Rental Cars

o Battery End Uses

o Allied Energy Services -power generation and grid management

o Future Targets Under Consideration

Hydrocarbons

o Curzon - Coal Bed Methane Project

o Natural Gas

o Cleanest Fossil Fuel

o Metallurgical Coal

o High Value Special Use Coals

o Use in Steel/Filters/Other

PROJECTSMINERAL


o Coal roll-up vehicle set up to acquire US coal assetso 47% interest in MET with Legacy Hill Resources (LHR)

o LHR - UK Based Private Mining Houseo RGM funded $2m towards first acquisition o Aug 18 MET acquired Omega Holdings LLCo Omega currently in production in SW Virginia, USA

Metallurgical Coal Interests

MET – US Met Coal Acquisitions Vehicle

47%

o Speciality Producto Carries Higher Priceso Multiple Offtake Opportunities

• Coke - Steel Producers• Ferrosilicon• Filters• Cosmetics

Metallurgical Coal

2015 2020e 2025e 2030e 2035e

Supply Demand

Mining Equity Trust (MET)

Coal with a Future – Demand Expected to Remain Strong

Omega Holdings LLCFirst MET Acquisition

100%


EconomicsLarge offtake partner under contractProvides baseline and stabilityAdditional tons sold into met coal marketsDedicated trading function addedMET to improve margins

In Production 2 HW300 Highwall Miners OperatingMultiple historic seams – from existing highwallSmall footprint – 70 person teamMultiple years of production in place 3rd Party Coal Purchases Added

Multiple Historic Coal Seams Exploited at 2 Sites

100% owned by METCurrently in production in SW Virginia5 Year track record of operationHigh quality management teamExisting operation with room for optimization

Omega Holdings LLC

700,000 Tons

$30m+ Revenues

Production Forecasts

Highwall ~1,000ft Depth

Omega Coal Operations


Met Coal Operations

2 x Highwall Miners Located at 2

Sites at Omega


o Historic Nickel/Cobalt project at Mambare in Papua New Guinea

o Option to acquire interest in North American Vanadium exploration project

o Seeking to leverage exposure and upside to the raw materials making the energy storage revolution possible

o Nickel – key to battery density

o Cobalt – key to battery stability

o Vanadium – utilized in vanadium-redox batteries providing efficient storage and controlled energy release in industrial and grid applications

Battery Metal Interests

Cobalt

Nickel + Cobalt + Vanadium

60,000

100,000

140,000

180,000

220,000

20

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Supply Demand

Nickel

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Supply Demand

o Significant gap between supply and demand is projected after 2020

o Uses:• Steel production• Batteries• Metal plating• Coins• Turbine blades• Kitchenware

o Imbalance of supply and demand is expected to widen

o Uses:• Batteries• Aircraft engines• Corrosion/wear resistant

alloys• Jewelry

Source: Wood Mackenzie

Source: Canaccord Genuity

o One of World’s Largest Laterite Deposits o Main target 3% Drill Tested – Significant Upside Potential

o JORC compliant Mineral Resource Estimate (MRE) – 2012:• 162.5 Mt @ 0.94% Ni and 0.09% Co (combined Indicated & Inferred)• 47 Mt @ 1.23% Ni and 0.08% Co• Compares Favorably to CleanTeq’s Sunrise Project

o Mambare Licensed to use the DNi Process – 40,000t p/a

o New framework agreement in place with JV Partner

o 2019 workplan being prepared

o DSO options under consideration

Kokoda Township

Plateau

EL1390


Mambare Nickel Cobalt Project

WORLDWIDE BUSINESS

o Designed to Process Nickel Laterites

o Tested at Pilot Plant Scale, Perth, AUS

o Uses Nitric Acid – 95% Recycled

o Sustainable and Cost Effective

o Low CAPEX and OPEX

o Unlocks World’s Lateritic Nickel Resources

Direct Nickel Technologies

Nickel – Cobalt Project1.53m tonnes Nickel

146,000 tonnes Cobalt

50%


o 45-day Option to acquire a 50% interest in a North American vanadium exploration project

o Up to 45 km of potential strike

o Target – vanadium in black shale deposits, which favour low-cost mining and processing methods

o Historical soil, silt, rock sampling outlined broad zones of anomalous vanadium

o Limited to date drill testing identified multiple vanadium bearing intervals

Vanadium Project Option North American Vanadium Project Vanadium

o Vanadium price spiking in recent years

o >70% is produced through co-production with steel

o Uses:• Steel alloys• Chemical industry• Energy storage• Ceramics

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/lb

V2O5 Vanadium Pentoxide 98% Price

& GASOIL

o US Focused E&P Companyo Listed in 2017 in UK on the LSE:CZNo 100% stake in Coos Bay, Oregon - Coal Bed Methane projecto Exploring other project opportunities

o Coos Bay – Acquired out of Bankruptcy - $20m+ historic spendo 1,000 BCF Gas in Place; 273 BCF of 2C contingent resourceso 45,000 acres / 400 potential well locations o 5 wells drilled by previous operator

o Coos Bay Advantageso 16 Year Historic Gas Premium to Henry Hubo Ready Access to Regional Pipeline and Gas Network o Low Cost Drilling on Industrial Logging Land

o 2018 Work Program Focused on Reworking Existing Wells o 5 wells currently on long term test o Curzon exploring further development optionso New wells under consideration o Discussions ongoing with potential farm-out partners


Curzon Energy PLC

Natural Gas

o Natural Gas - bridge in transition to decarbonized economy – share expected to grow

o CO2 emissions 40-50% lower than thermal coal and 25-35% lower than petroleum

o 10% of US natural gas production from coal bed methane (CBM)

o Uses:• Electricity generation• Heating• Transportation

21%

22%

23%

24%

25%

26%

2000 2014 2035e

Worldwide natural gas share in primary energy (Source: BP)

Curzon Energy PLC

8.4%


Workovers completed – May 2018

Opened Upper and Lower Coaledo to production

Perforated new zones and cleaned out wells

Targeting rate of 100Mscf/day

5 Existing Wells

Typical Well Costs: $350k~2,500ft depth 5-10 zones

2 x New Wells

Phase I

Crosses the property / ready for connection

Feeder line connects to interstate line

Letter of Intent signed to purchase Curzon gas at premium to Henry Hub

Coos Bay Gas Pipeline (12in)

Upper Coaledo

Two Horizons

Lower Coaledo

58 x New Wells

Phase II200 x New Wells

Phase III

Curzon Development Potential

Extensive Infrastructure

Oversized pads already pre-cleared

- includes several new well

locations

One of five existing wells on the

property – 2 new to be drilled

Existing Wells


LimitedEsTeq

Current battery technologies rely heavily on scarce and often previously ignored metals – Lithium, Cobalt, Nickel and others

Battery Technologies/MetalsCreated to invest in and develop energy technology projects and applications

EsTeq Overview

Demand driven by transition to electric vehicles (EVs), home power storage units, industrial storage and consumer electronics

Battery End UsesGreater reliance on renewable energy sources means greater reliance on demand power, backup generation, frequency response, capacity management and energy storage services

Grid Services


Energy Storage Technologies


EsTeq Investments

o Grid Storage / Management / Services

o Battery Metals

o Battery Technologies

o Power Storage Applications

Additional Targets

o EV Only Rental Cars – 100% Electric Fleet

o Tesla + ultimately other EVs

o Order via app / no queuing/ once price / no extra charges

o Operating in the UK – European Expansion Underway

o Commenced operations in Oslo and Munich

o Entry planned into Germany and Switzerland

o Projected 915 Cars / 41 sites / £13.5m EBITDA in 4 years

o Nearest Comp – Silvercar Acquired by Audi in 2017 @ > $100m valuation

Whitecar Limited

o Distributed power generation and grid management services to the National Grid and other commercial clients across the United Kingdom

o Heads of Terms signed with major industrial partner on 50MW site in the UK

o Formal planning permission submitted on second 20MW site

o Partnership offered that may allow the purchase of several permitted sites varying between 20MW and 50MW

o Various forms and structures of finance being explored

Allied Energy Services


Hydrocarbons/ Battery Metals/ Technology

Blue Sky Exploration and Development

Underpinned by Met Coal Production

Foundations for Outperformance

Optimal Positioning

London Stock Exchange AIM listing: AIM:RGM

Share Price: 0.40p

Market Capitalisation: £3.18m

Shares in Issue: 796,239,654

Directors:Andrew Bell Chairman and CEOScott Kaintz Director and COOEdmund Bugnosen Non-Executive Director

Corporate Advisers:Nominated Adviser Beaumont Cornish LtdAuditors Chapman Davis LLPAIM Broker First Equity Ltd Solicitors Druces LLP

Company Secretary: Stephen Ronaldson

Further Information

@Regency_Mines

Disclaimer

These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for anysecurities of the Company and they should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slidesand the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buy securities in the Company. If anyperson is in doubt as to the contents of this presentation, or wishes to obtain advice as to the investment merits of the Company’s securities, heshould seek independent advice from a person who is an authorized financial services provider.

No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or thecompleteness or accuracy of such information. The information contained in these Slides and the accompanying verbal presentation is in the publicdomain, however no representation or warranty, express or implied, is given by or on behalf of the Company, its shareholders, directors, officers oremployees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanyingverbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability forfraud).

The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer isunlawful. The distribution of the Slides in some jurisdictions may be restricted by law and persons into whose possession this document comes shouldinform themselves about and observe any such restrictions.

Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that necessarily involve risks anduncertainties. Forward-looking statements may generally be identified by the use of terminology such as “may”, “will”, ”expect”, ”intend”, “plan”,“estimate”, “anticipate”, “believe”, or similar phrases. Other than statements of historical facts, all statements, including, among others, statementsregarding the future financial position of the Company, business strategy, projected levels of growth in its market, projected costs, estimates of capitalexpenditures and plans and objectives of management for future operation, are forward-looking statements. The actual future performance of thecompany could differ materially from these forward-looking statements. Important factors that could cause actual results to differ materially fromthese expectations including known and unknown risks. Undue reliance should not be placed on these forward-looking statements.


regency mines corporate presentation dec 2018 update · 2018-12-07 · mambare - png nickel -...

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