Published on November 26, 2007
Slide1: Corporate Presentation South Africa : a market leader: South Africa : a market leader The best estimates available suggest that the total volume of gold mined over history is approximately 147,000 tonnes, of which almost 87,000 tonnes or 60% has been mined since 1950. The dominant producing country for much of the 20th century was South Africa, which in the early 1970s was producing 1,000 tonnes per annum, or over 70% of the world total at that time. This position has been eroded in the past two decades, however, as South African production has dropped (due in part to ageing mines and reduced flexibility), while other nations have expanded their output considerably. South Africa : a market leader: South Africa : a market leader Production by major region, 2002 (total, 2,590 tonnes) Mali & Ghana : the new comers: Mali & Ghana : the new comers At the other end of the scale, there are a myriad of very small “artisanal” miners operating as one-man bands, panning for alluvial gold or working shallow outcrops in many parts of Africa, Latin America and Asia, and finding perhaps only a few ounces in any one year. Increasingly gold is mined in developing countries (other than South Africa) including some of the poorest. Many of those designated as Heavily Indebted Poor Countries by the World Bank are gold producers. For some of these countries gold comprises a significant proportion of their exports; it accounts for over a third of goods exports in the case of Ghana and around half for Mali, for example. Mali & Ghana : the new comers: Mali & Ghana : the new comers World Gold Supply and Demand Summary Tables Production costs on the rise: Production costs on the rise Production costs vary widely, according to the nature of the mine, be it open pit or underground and at what depth, the nature and distribution of the ore-body (and by implication the metallurgy which affects processing techniques) and the grade. Average quoted cash costs for those commercial scale mining companies in the western world were, in the second quarter of 2003, in the region of US$218/ounce; by the time additional costs such as depreciation and amortisation, administration, exploration and other miscellaneous costs are included, the total is closer to $260/ounce. Producers have been making continued efforts to reduce costs and the cost curve was falling steadily until the first half of 2003. The world average total cash cost in late 2002 is estimated by Gold Fields Mineral Services at US$180/ounce (implied total; approximately $220/ounce) against an average price for the year of $310/ounce. The jump to $218/ounce in the second quarter of 2003 reflects increasing fuel and labour costs and appreciating currencies in South Africa, Canada and Australia, which between them accounted for 32% of world mine production in the first half of 2003. Increasing costs push prices up: Increasing costs push prices up Note also that cost figures do not include exploration and other ancillary costs and so most mining analysts add a further $30-40/ounce, depending on the mining company concerned, to come to an estimate of true total costs. The thin margins made by the mining companies in the second half of the 1990s meant that exploration expenditure did tend to suffer, and this lies behind market expectations that the trend in output will be flat at best in the next few years. Increasing costs push prices up: Increasing costs push prices up A new market player ...: A new market player ... We are a recently established entity. We are based in Canada and have affiliated companies in Turkey, Ghana and Mali. We are currently doing the explorations in Turkey, which is a country with great potential in terms of its gold reserves. We will soon start explorations in Ghana and Mali, which are also the new comers in world gold mining. A dominant player ...: A dominant player ... Our vision is to be a dominant player in the world in gold mining in emerging countries. In line with our vision, it is our mission to find new emerging countries, follow the trends, do the necessary explorations and research. We also find it highly rewarding to get in touch with local government with an aim to improve the country’s mining industry, to help educate and prosper. We also strive to comply with the global ethical rules of conducting business in local ventures and help local business environment improve. A global organization ...: A global organization ... Parent company and the headquarters will be based in Canada. A public offering in Toronto Stock Exchange is also in the agenda in 2005. Every new region will be structured under Canada as an affiliated company. Regions with bilateral tax treaties with Canada are sought to create maximum tax advantage for the parent company. Emerging targets ...: Emerging targets ... We are currently following projects in Turkey, Ghana and Mali. We have come to the exploration stage in Turkey, we have done the basic exploration in Mali and we are about to close a deal to acquire a local mine in Ghana. Total exploration area in Turkey extends 461 km2. Total target area in Mali is 158 km2 and the mine in Ghana which we plan to acquire extends over a 147 km2 area. We plan to exceed 1,500 km2 in total. We plan to continue our current business model by acquiring new mines in similar emerging countries as well as get permits from the local authorities to explore new locations. A great potential ...: A great potential ... According to present-day written and archeological findings, gold has been produced in Anatolia since 3000 B.C. However, in Turkey, there is now only silver mine production since 1987 and the Ovacık (Bergama) gold mine started production in 2001. In contrast, Turkey is one of the world’s largest gold processing and consumption markets. Its annual gold imports exceed 200 tons. Calculations based on explorations in numerous mine areas and world gold formation models reveal that Turkey’s gold potential is 6,500 tons. The mine value of this potential is worth $70 billion. The number of gold deposits constituting this potential is presumed to be 267; of these, it is estimated that 13 could contain above 150 tons of gold, 40 between 30 and 150 tons and 214 less than 30 tons. There are 9 foreign-capital owned companies that have been carrying out gold mining activities since 2002. A new mining rule ...: A new mining rule ... Gold producing foreign companies which came to Turkey subsequent to the change in the Mine Law in 1985 found economic gold deposits. Following the changes in Turkish mining and investment laws induced those mining companies to invest in Turkey, leading to recent discoveries and production. ANATOLIA, COMINCO, INMET, EUROGOLD, ODYSSEY, ANGLO TURC, ELDORADO GOLD, EURASIAN and PREUSSAG are the mentioned 9 companies active in Turkey. At the end of explorations by foreign companies, a total of 509 tons of gold and 1,184 tons of silver reserves have been found at the 9 mines illustrated in Table 3. The total value of these mines is $5.832 billion. The value added to the national economy is calculated as: 5.832x4.2= $24.494 billion. A new mining rule ...: A new mining rule ... Turkish government has started to pay the needed intensive care on the mining sector and started to provide new incitements to the miners. The government has just reduced the duty rates applied to the miners at 4% to 2%. By means of those new regulations, the sector is expected to grow at 20%. The mining law on which the revision studies continue for 3 years is being assessed as a booming factor as long as it is arranged based on the expectations of the sector. Our interests ...: Our interests ... Our present permits in Turkey extend over an area of 461 km2. We are currently adding new exploration areas to our current interests. Pregold Our interests ... Our present permits in Turkey extend over an area of 555 km2. We are currently adding new exploration areas to our current interests. Pregold A strong newcomer ...: A strong newcomer ... The mining industry in Ghana is the key sector in the economy with the principle minerals produced being gold and diamonds. Ghana has an active stock exchange. The main focus of Ghana’s mining and minerals development industry remains focused on gold. Ghana is Africa’s 2nd largest gold producer, producing 81 t in 1999, an increase of 7 t from the previous year. Production is dominated by homegrown Ashanti Gold Fields, which produced nearly half at 37 t from its five mining operations. Ghana is also a major producer of bauxite, manganese and diamonds. Ghana's major trading partners include neighboring Nigeria, Germany, Switzerland, France, the Netherlands, United Kingdom, Japan and the United States. Ghana relies on grants from some of these countries to fund areas of development. A new mining rule ...: A new mining rule ... Mining and minerals were a specific and integral part of the Economic Recovery Programme. New legislation was promulgated, financial incentives were introduced, new state institutions were set up and major rehabilitation of state-owned mines were carried out. The basic law is the Mining and Minerals Law which was passed in 1986 (PNDC Law 153). This and associated legislation combines regulation of the mining industry with fiscal incentives for investors. A new mining rule ...: A new mining rule ... Some of the more significant features of the legislation are: All minerals are owned by the State. Exclusive mining rights are granted by the Ministry of Mines and Energy. The legislation is to be applied equally to Ghanaians and foreigners, except for the provisions relating to artisan mining and exploitation of construction minerals which is reserved for Ghanaians. The Government is entitled to a free carried equity interest of 10% in mineral ventures. It also has the option of purchasing an additional 20% at a fair market price. Our interests ...: Our interests ... We are interested in acquiring potential areas which extend over 147 km2. Pregold Third largest producer in Africa ...: Third largest producer in Africa ... The mining industry in Mali has recently attracted renewed interest and investment from foreign companies. Gold and phosphate are the only minerals mined in Mali although deposits of copper and diamonds do also exist. The emergence of gold as Mali’s leading export product since 1999 has helped mitigate some of the negative impact of the cotton and Côte d’Ivoire crises. Although Mali is a landlocked country with poor infrastructure, the government’s reformed mineral code has attracted numerous foreign investors. This has resulted in several new mines (gold in particular), which has boosted the gold mining industry to be Mali’s second largest income earner after cotton. Following the opening of several new gold mines, Mali is now Africa's third largest gold producer. Gold production forms the cornerstone of the Mali mining sector, representing 95% of the country’s mineral production. A new mining rule ...: A new mining rule ... The mineral law is based on the French civil law. The mining code was revised in 1991. The State owns all the mineral rights. Standard agreements are available. A scale of fees based on area is applied to mineral licenses. Exploration is carried out under a 'Permis de Recherche‘. It is granted for three years, but after two years, half of the permit area must be relinquished in one or several areas at the discretion of the holder. An exploration permit is renewable twice for a further three years over an area which again must be reduced by half each time. No maximum size is provided in the law for the original permit area although, recently, the maximum size of gold permit has been restricted to 500 km². A new mining rule ...: A new mining rule ... Mining ventures are free of corporate tax for the first five years of production. Thereafter, the tax rate is 35 % or less when profit is reinvested in Mali (up to 27.5% depletion allowance). All equipment for the project can be imported duty free during the exploration period and for the first three years of the exploitation period. Our interests ...: Our interests ... We are interested in acquiring potential areas which extend over 158 km2. Pregold Investments continue ...: Total exploration area in Turkey increased to 555 km2 from 461 km2. Total target area in Mali is 158 km2 and the mine which we plan to acquire in Ghana extends over a 147 km2 area. Our offices in Mali and Ghana started to operate since May 2004. Development in Turkey is expected to start in 2005. Reserve studies in Ghana is expected to finalize by the end of 2004. Acquisitions in Mali are expected to materialize by the end of 2004. We started the geographical studies in Turkey with the help of local universities and their staff in mining faculties. We set up our labaratory and facilities with casting and assaying support in Mali. A similar set up is being established in Ghana. We updated our web site with recent developments at www.pregold.com . Investments continue ... Investments continue ...: Corporate set-up and headquarters in Canada will be established by the end of 2004. We plan to go public in Toronto Stock Exchange by the second half of 2005. Capital raised through public offering will be utilized in development of new sites and production. We plan to exceed an exploration area of 1500 km2 with new sites in other African countries. Investments continue ... Slide27: GOLDART HOLDING INC. 24, Kayalar Sokak Merter, 34010 İstanbul / Turkey Tel: 90(212) 637 5450 Fax: 90(212) 637 4007-08 e-mail: [email protected] UK: GOLDART (UK) LTD. 100 Hatton Garden, Suite 115/116 London, EC1N 8NX Tel: 44(20) 7831 7555 (800) 917 0827 Fax: 44(20) 7242 2999 e-mail: [email protected] U.S.A.: GOLDART INTERNATIONAL, INC. 1305 Franklin Avenue Suite: 245 Garden City, NY 11530 Tel: 1(516) 294 8370 (800) 227 7489 Fax: 1(516) 294 3888 e-mail: [email protected] GERMANY: GOLDAS GmbH Königsallee 58b 40212 Düsseldorf Tel: 49(211) 159 7126 - 27 Fax: 49(211) 159 7128 e-mail: [email protected] RUSSIA: GOLDAS LTD. Russian Federation, Moscow, 103006, Dolgorukovskaya st., Bld. 7 Sadovaya Plaza Tel: 7(095) 933 1363 Fax: 7(095) 933 1364 e-mail: [email protected] U.A.E.: GOLDAS (L.L.C.) Al Mamzar Center, 1st Floor, Office No:3, P.O.Box: 86426 Dubai Tel: 971(4) 297 8088 Fax: 971(4) 297 8188 e-mail: [email protected] THAILAND: GENERAL TRADING (CO) LTD. 919/527 Jewelery Trade Center Building 45. Floor Silom Road Bangrak, Bangkok 10500 Thailand Tel: 66(2) 630 3434 Fax: 66(2) 630 3435 e-mail: [email protected] Group ...