Financing junior mining in southern Africa

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Financing junior mining in southern Africa

• Botswana Resource Sector Conference July 2008
• Rand Merchant Bank FNB Botswana

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The junior sector in southern Africa Equity
Markets and primary listings Complements to
equity financing
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The junior sector in southern Africa
Few surprises, but would have expected to see
greater activity in coal
RMB research, for indicative purposes only
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Not all juniors are created equal
Average size of companies mostly driven by
differences in cost of entry and returns to scale
in sector
RMB research, for indicative purposes only.
Sources I-Net Bridge, Reuters Bloomberg 18
July 2008
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The junior sector in southern Africa Equity
Markets and primary listings Complements to
equity financing
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Companies by primary listing (by number of
companies)
RMB research, for indicative purposes only.
Sources I-Net Bridge, Reuters Bloomberg 18
July 2008
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Companies by primary listing (by market cap)
RMB research, for indicative purposes only.
Sources I-Net Bridge, Reuters Bloomberg 18
July 2008
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And not all junior mining companies are listed
RMB research, for indicative purposes only.
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The junior sector in southern Africa Equity
Markets and primary listings Complements to
equity financing
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Project stage and appropriate financing
Resource definition
Opportunity selection and early exploration
Pre-feasibility to bankable feasibility
Project development
Steady state mining
Value
Time/Project Stage
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Project stage and appropriate financing
Resource definition
Steady state mining
Opportunity selection and early exploration
Pre-feasibility to bankable feasibility
Project development
Senior debt
Project Finance
Value
Structured Equity
Equity
Equity
Time/Project Stage
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FNB Botswana Pele Moleta Head - Mining Public
Sector Business Tel [phone] Rand
Merchant Bank Leigh Bregman Resource Finance -
Junior Mining Tel [phone] William
McFerren Resource Finance - Junior Mining Tel
(27) 11 282-1309 Henk Deist Resource Finance -
Head Tel [phone] Henk de
Hoop Resources - Business Development Tel (27)
11 282-4970