Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
INVESTOR PRESENTATION
January 2019
B”H
Introduction
The Project
Mine to Market Strategy
The History
The Present and the Future
Summary
2
INTRODUCTION
3
OVERVIEW
4
• Shefa Yamim is a multi-commodity explorer of
precious stones operating in Northern Israel
• Significant progress since IPO in December
2017
• Three permits (two prospecting and one
exploration), covering 60,000 hectares and
three exploration targets
• Received first prospecting licence for
diamonds, gold and precious stones in the
Kishon Mid-Reach Zone 1 that covers an area
of 252 Dunams (25.2 hectares)
• Significant exploration upside within the Mid-
Reach, Proximal Reach and longer term,
Distal-Reach
• Focused on ‘Mine to Market’ strategy by
exploring, mining, designing and selling its
jewellery pieces
GEMSTONES FOUND
5
We have a mine to market proposition with a unique assemblage of precious stones in a unique locality:
• The Carmel Sapphire™ - only found in Mount Carmel (Primary source) and Kishon Mid-Reach (alluvial/secondary deposit) in Northern Israel
• Carmeltazite, found in the Carmel Sapphire™, recognised as a new mineral by the IMA.
• The stone is a registered brand and has unique qualities, as well as considerable potential as gemstones
• Natural Moissanite™ – largest quantity and size found globally to date
THE PROJECT
6
MOUNT CARMEL AND THE KISHON RIVER
7
Schematic cartoon showing
mineral distribution in
alluvial deposits within the
Rakefet Kimberlitic
Magmatic Complex (RMC)
area
EXPLORATION & PROSPECTING PERMITS
8
Exploration targets divided into three segments:
• Proximal-Reach: Primary sources
• Mid-Reach: Secondary sources (accessible)
• Distal-Reach: Secondary sources
Mid-Reach divided into three zones at different stages
of development:
• Zone 1 – Prospecting Licence + Technical Economic
Evaluation (TEE)
• Zone 2 – Partly explored
• Zone 3 – Still to be delineated, exploration target level
• Company follows the internationally recognised SAMREC
2016 Code
• Coloured gemstones found throughout the exploration and
prospecting areas
• Initial focus on Kishon Mid-Reach deposit where the
exploration of an accessible placer formation is most
advanced
Exploration and prospecting permits covering 60,000 hectares centred on Mount Carmel and the Kishon river catchment.Shefa Yamim granted its first Prospecting Licence, over its alluvial exploration target, the Kishon Mid-Reach Zone 1 Project.
KISHON MID-REACH ZONE 1 EXPLORATION
9
• Commenced Technical Economic Evaluation Report, which is in an advanced stage
• Completed 14 bulk sample campaign, recovered 6,384 tonnes sampling with 9,778.15 carats produced to date
• Estimated total content grade of 153.16 cpht
• Granted prospecting licence 869C9 covering 252 Dunams at the Kishon Mid-Reach Zone 1 – taking it one step closer to a mining licence
• Started planning and regulatory procedures to advance the area into trial mining
• Targeting trial mining and production in the next two years (subject to funding and good exploration results)
MINE TO MARKET
STRATEGY
10
GEMSTONES – A GROWING MARKET
11
*Gemval Aggregate index (GVA) is calculated as a total value of 26
standard specimens of gemstone, (GVA basis set) and represents
the overall pricing trend in the jewellery market. We have monitored
GVA values since 1st July 2005. The current value of GVA is
measured in %, as a ratio of current GVA value to the initial value
on July 2005
Source: UN Trade Data
• A growing market - US$2.4bn to US$6bn in the past five years
• Prices have outperformed diamonds circa. 37% since 2005
• Gemstone market estimated to reach US$10bn in the next 10 years
Source: Gemval
MINE TO MARKET STRATEGY
12
• Control over the exploration, development, mining, design,
and manufacture of unique jewellery mounted with Shefa
Yamim’s rare gemstones
• Partnered with world renowned jewellery designer to develop
collection of unique 24k gold jewellery
• Collections will be marketed worldwide with a licensed brand
name of gemstones from the soil of the Holy Land
• Potential for direct sales to the consumer through:
• online sales
• exclusive franchises to large marketing chains
• showroom located in one of the world’s largest trading
centres for diamonds and gemstones, located
approximately one hour’s drive from the project
• Intention is to create a fully integrated operation including
cutting and polishing, which is expected to increase the value
of the gem quality stones
• Management has considerable experience in the
manufacturing and marketing of jewellery & precious stones
YOSSI HARARIWORLD RENOWNED JEWELLERY DESIGNER
13
• Yossi Harari has partnered with Shefa Yamim to
create an exclusive jewellery collection using Shefa
Yamim’s gemstones
• Career spanning over 26 years and a multiple winner
of the Couture Design Award, the ‘Oscars’ of the
jewellery industry
• Known for timeless, handcrafted 24-carat gold
jewellery
• His jewellery has been worn by some of the most
famous women in the world – Rhianna, Jane Fonda,
Oprah Winfrey, Jessica Alba etc.
• Harari’s jewellery features in over 40 stores worldwide Source: www.yossiharari.com
Source: www.yossiharari.com
THE HISTORY
14
HISTORICAL DEVELOPMENT
15
Shefa Yamim
(A.T.M.) Ltd.
established1999
2003
2005
2012
2014
2017
2017
Secured exclusive
exploration and
prospecting rights
covering 60,000
hectares
Started drilling
program
Shefa Yamim Ltd started
trading on TASE
Started drilling
program in Zone 1
Completed CPR
in October
Shefa Yamim
(A.T.M.) Ltd listed on the LSE
in December
KEY ACHIEVEMENTS SINCE IPO
16
January 2018 January 2019
Successful equipment upgrade at the operational site in Akko
Completed
Renewal of two
Prospecting
Licences in
Ramot Menashe
and Carmel Site
Completed
Completed
bulk
sampling
campaign
Completed Completed
High grade
Spinel found –
Ilmenite and
Garnet added to
Gem-Box
PPM appointed
to conduct a
Technical
Economic
Evaluation
Started
processing
bulk samples
from Kishon
Mid-Reach
Zone 2
Kishon Mid-Reach Zone 1 – Most Advanced Deposit
Obtained IMA
accreditation
for new
mineral,
carmeltazite
Ongoing CompletedOngoing
THE PRESENT
AND THE FUTURE
17
18
• Complete Technical Economic Evaluation
• Continue exploration of Shefa Yamim’s four permitted areas covering approx. 60,000
hectares:
• Prospecting Permit 837A12 for the Carmel site covering an area of 327,551
Dunams (32,755 hectares);
• Prospecting Permit 899A7 for the Ramot Menashe site covering 112,904 Dunams
(11,290 hectares);
• Exploration permit 869B8 covering 173,636 Dunams (17,363 hectares); and
• Prospecting licence 869C9 covering 252 Dunams (25.2 hectares).
• Expand exploration efforts and bulk sampling in Zone 2 and Zone 3 in the Kishon Mid-
Reach Area as well at the primary source in the Carmel mountain range
• Targeting trial mining and production in the next two years (subject to funding and good
exploration results)
ROUTE TO PRODUCTION IN KISHON MID-
REACH ZONE 1
19
STRONG NEWSFLOW
SUMMARY
20
• Exposure to the gemstone assemblage via a
low cost route to production
• Demand for coloured gemstones in the last five
years has grown by 145% to US$6bn
• Mine to Market strategy
• Partnership with leading jewellery designer
• Kishon Mid-Reach Zone 1 has rapid
development potential
• Progressing towards trial mining in the Kishon
Mid-Reach Zone 1 (subject to funding and good
exploration results)
• Proven findings of Gem-Box: Carmel
Sapphire™, Diamond (rare), Spinel, Ruby,
Natural Moissanite™, Hibonite, Garnet,
Ilmenite, and the HIM Suite; Zircon and Rutile
APPENDICES
21
DiamondNatural
MoissaniteTMDiamondCarmel
SapphireTM
22
MOISSANITE A RARE MINERAL
NATURAL SILICON CARBIDE (SiC)
The directors believe that Shefa Yamim is the only company in
the world to find large quantities of Natural Moissanite™
• Deep blue-green colours
• Transparency
• Iridescence
• The brilliance, fire, lustre and hardness of Natural Moissanite™
make it ideal to use in jewellery
• Historically, small quantities found naturally
• Produced artificially and sold as gems
• Prices for rings range from circa.US$79 to over US$31,179 by
Charles & Colvard Ltd.
• Shefa Yamim has found Natural Moissanite™ in Mt. Carmel-
Kishon River area, Israel
• Single crystals to >4mm
• Other localities worldwide - <2mm
Very rare mineral discovered by the French chemist Henri
Moissan in 1893
23
CARMEL SAPPHIRE ™
Carmel Sapphire™ is the dominant mineral species recovered
from bulk samples to date (with grades up to 255 cpht)
• Colour typically orange-brown, transparent with pockets of volcanic
melt including metalliferous compounds
• Pockets contain a unique assemblage of minerals usually found in meteorites
• A registered brand “Carmel Sapphire”™
• Polishing reveals unique qualities and considerable potential as gemstones
• Carmeltazite, found in the Carmel Sapphire™, recognised as a new mineral
Carmel Sapphire
Rough
Carmel Sapphire
Cabochon cut
Carmel Sapphire
Full cut
24
OPERATIONAL SITE
AND MINERALOGICAL
LABORATORY
All samples (reconnaissance, follow up and
bulk types) are processed through the plants
at the Akko operational site where final
recovery is also undertaken in the on-site
laboratory.
The laboratory follows internationally
recognised procedures and standards for
mineral recovery, sorting and identification.
Uses (ArcGIS) for modelling with additional
analyses undertaken using voxler®, strater®
and surfer®.
25
WHY ISRAEL?• World’s largest trade centre for diamonds
and precious stones
• Low marketing costs
• Established corporate governance and
democratic structures
• Mining Laws based on English Law
• Established infrastructure
• Government supportive of natural resources
sector
THE BOARD AND SENIOR MANAGEMENT
Abraham (Avi) Taub, CEO and chairman
Co-founder of Shefa Yamim (A.T.M.) Ltd, Avi has over 45 years’
experience in all aspects of the gemstone sector from cutting, polishing
and marketing. A scholar of Gemology and Mineralogy, Avi is a second
generation of the founders of the Israeli diamond industry. A serial
entrepreneur, he has founded and managed a number of Israeli
companies.
26
Vered Toledo, COO
Vered has led Shefa Yamim’s exploration and operations team for over 19
years. She is responsible for field, plant and laboratory activities and
overseeing staff affairs. She has extensive in-field experience with a focus on
gemstones and especially the rare, potential moissanite (SiC) and Carmel
SapphireTM discoveries.
David Ben David, CFO
Certified CPA for 15 years (BA in Economics and Accounting, Bar Ilan
University). Auditing & analyzing financial reports for various public
companies in Israel. Has an in-depth knowledge of the Capital Market and
analyzing financial data. Experienced in internal auditing and risks
assessment and management.
THE BOARD AND SENIOR MANAGEMENT
27
Michael Rosenberg, Non-Executive Director
An expert in corporate finance with over 40 years’ experience working on
boards globally. Extensive experience of being Chairman and Non-Executive
Director of UK listed companies. He is also a mentor to The Prince’s Trust.
James AH Campbell, Non-Executive Director
A qualified geologist, James spent over 20 years with De Beers’ Global
Mining and Exploration Group before becoming Managing Director of African
Diamonds plc in 2006. Since then he has served on a number of UK and
Canadian boards including West African Diamonds plc, Stellar Diamonds plc
and Rockwell Diamonds Inc. He is currently Managing Director of Botswana
Diamonds plc.
Nathalie Schwarz, Independent Non-Executive Director
A qualified lawyer, Nathalie started her career at leading global law firm Clifford
Chance focusing on cross-border mergers and acquisitions, corporate
restructurings, IPOs and private equity. She has extensive Board experience, both
as an Executive Director and Non-Executive Director, of UK listed companies
including Channel 4 Television Corporation, Capital Radio PLC and Amiad Water
Systems PLC. She is currently a Non-Executive Director on the Board of UK
publicly listed company Wilmington Group PLC.
THE BOARD AND SENIOR MANAGEMENT
28
Gershon Fraenkel, Independent Non-Executive Director
Gershon Fraenkel is a British Citizen and founder of WST Charity Ltd, in North West
London which focuses on alleviating poverty within the Jewish Community in the area. He
has successfully launched many international businesses in the last 25 years, including
SEACO Group of Companies and Linkedell Ltd.
Hanoch Ehrlich, Independent Non-Executive Director
Hanoch Ehrlich is a qualified lawyer. He has worked on several international M&A
transactions, including advising companies in Central and Eastern Europe. He is
experienced in litigation, having represented various entities such as the Israel Military
Industries Ltd., the Shikun U’binui Group (the largest construction conglomerate in
Israel), the Ofer Brothers Group, the Yitzhak Tshuva Group, Bank HaPoalim, the Israel
Discount Bank, the Industrial Development Bank, the Israel Shipping Bank, Amdocs
(Israel) and the Israel Citrus Marketing Board.
David Nachshon, Independent Non-Executive Director
Israel David Nachshon, a graduate in Rabbinical Ordination, Mr Nachshon has extensive
ties within the Jewish community worldwide, as well as established government relations
in Israel. He has been on the board of Shefa Yamim (A.T.M.) Ltd and Shefa Yamim Ltd
since 1999, when the company was founded. Mr Nachshon is a Board member of the
Jewish community institution in Kiev, Ukraine, Chairman of the Chabad Jewish Mobil
Mitzva Centre, Chabad Youth Movement Tzivos Hashem and Chabad Educational
Institutions.
INTERNATIONAL CONSULTING TEAMProfessor William Griffin
Respected academic and Professor of Geology at Macquarie University.
Program Director for Technology Development and Industry Interaction in the ARC
National Key Centre for Geochemical Evolution and Mettalogeny of Continents
(GEMOC).
29
Dr. John Ward
Dr. Ward has a PhD in Geology and has won the Oliver Davies and Henno Martin
Medals for his contributions to academic and economic geology. A leading alluvial
diamond exploration geologist with over 35 years’ field experience.
Prof. Mike de Wit
Highly respected chief geologist focusing on diamonds and geophysicist. Worked for
two of the largest resources companies in the world, Anglo American in South Africa
and De Beers. Diamond focused geologist. A Professor at the University of Pretoria.
Dr. Renato Spaggiari
Exploration Manager at Allotropes. Previously the Vice President at C&K Mining,
Cameroon. Strong geomorphology and sedimentology background. PhD research
dealt with favourable conditions for diamond deposits along Africa’s west coast.
This presentation has been designed for your convenience only and it does not replace a full review of Shefa
Yamim (A.T.M.) Ltd ("The Company") reports.
This presentation includes forward-looking statements, including forecasts, evaluations, estimates and other
information relating to future events and issues.
Forward-looking statements and information contained in this presentation are based on present estimates
and assumptions of our management, we believe them to be reasonable, but they are inherently uncertain.
Such future statements involve risks and uncertainties, including factors outside our control, any one of which,
or a combination of which, could significantly affect our operations and cause our actual results to differ
significantly from the future statements.
Any future statement is valid only to its original date. Apart from obligations to disclose information as required
by applicable security laws, we undertake no obligation to update or revise any information contained in this
presentation, whether as a result of new information, future events or otherwise.
This presentation does not intend to be all-inclusive nor to contain all of the information that may be relevant in
making any decision concerning an investment in the securities of the company.
This presentation does not constitute, or form part of, any offer or invitation to purchase or subscribe for any
securities of the company.
30
Disclaimer