18.11.2014 the future of mongolian projects – a bodmer capital case study, reto bodme
TRANSCRIPT
WHO ARE WE?
• Swiss company
• Hybrid model between private equity
an operational company with the
guidelines of private company
• A mining company
• An exploration company
WHAT ARE WE NOT?
• A Balanced Portfolio
• Buying undervalued assets
• Only our own projects
• Maximizing returns for our shareholders
BUSINESS MODEL
• Bordering China and Russia, Mongolia is rich in mineral resources.
• Mongolia also has a well-educated workforce with a literacy rate of 97.8%
• One of the fastest growing economies in the world (11.7% annual GDP)
•Predominant religion is Buddhism .
WHY MONGOLIA?
Elements in MongoliaPeriodic Table
* Lanthanide series** Actinide series
• 82 of the total 118 elements of the Periodic Table i .e. 73% of all elements are found in Mongolia in commercial ly viable volumes.
• 25 or 62.5% of the 40 heavy elements are found in M ongolia.
Elements:
Discovered and studied
Not discovered
Ten Largest Proven Mineral Deposits in Mongolia
These 10 reserves alone contain deposits valued at > 270 times current GDP
Per Capita Mineral Resource Value of USD 1.0 Mln
• Is Mongolia the next UAE?
• Similarities are very close
• Very sparsely populated
• Large natural resources
Real GDP Growth Rates
• Mongolia is the least populated
country in the world, with a
population density of one person
per square-mile. Roughly five times
the size of Germany.
• Size of Western Europe with
the population of Berlin
WHY?
• Tremendous human capital
• Finance, Politics and Industry
• Active in Mongolia for 15 years
• Disciplined investment process
• Use of latest technology
THE BUSINESS CASE
Letters of Intent: Through its Mongolian subsidiary, Gerlux Mining
LLC, BCG owns 22 Letters of Intent in waiting, which represent
mining opportunities.
Value of mining opportunities: These Letters of Intent represent
potential mining opportunities valued at approximately CHF 450
million. Valuations were done by Russian geologists, known for their
conservative approach.
WHY BCG?
WHY BCG?
USE OF RAISED FUNDS
•Acquisition of additional mining licenses
• Increasing share holdings with larger percentage
share of existing holdings
• Doing additional certifications in JORC, Prefeasibility, Etc.
• Value lift
• Human capital: BCG’s owners and management have been deeply
entrenched in Mongolian society for the past 15 years. Knowledge is
spread from industrial areas, to politics to the financial sector.
• Personal involvement: BCG’s owners and management are involved
financially and personally
• Experience: BCG’s key personnel have a proven track record in realizing
extraordinary projects, and seeing them through from fundraising to exit
• State of the Art Technology
WHY BCG?
BCGs portfolio of mines are comprised of many different elements. Diversifying the mines
allows us to cater to many different sectors throughout the world. This way in case an
element loses strong demand and results in the reduced value (e.g. oil price), Bodmer Capital
still has other valuable elements in its portfolio to minimize any potential economic problems.
DIVERTED PORTFOLIO MINERALS
LEGAL
• Verification of ownership
• Verification of exploitation rights
• Authentication of surveys
• Signing LOI’s
FINANCIAL
• Setup of escrow
• Escrow is only released upon
completion of due diligence
• ROI
• Cost of opportunity
GEOLOGICAL
• Stress test of provided survey
• Secondary opinion
• Redundancy
• Additional opportunity
GRYPHON™ Capabilities
GRYPHON™ is vastly more sophisticated than the standard technology used in geophysical mapping and
surveying. This platform can quickly pinpoint the location of many minerals, including, gold, uranium,
phosphate, diamonds, iron oxide, copper, nickel and hydrocarbons.
AERIAL SURVEY TECHNOLOGY
• No ground access issues
• Can map under surface cover
• Can be conducted almost any time
• Large areas can be mapped 90% quicker
• Areas of interest can be mapped completely,
without any gaps in coverage
AERIAL SURVEY TECHNOLOGY
Surface geology is mapped with:
• Broadband & Deep Penetrating Time Domain
Electromagnetic Methods (TDEM)
• Gamma Ray Spectrometry
• Satellite Imagery
• LiDAR
Sub-surface geology is mapped with:
• Broadband & Deep Penetrating TDEM
• High Resolution Magnetics
Deep geology is mapped with:
• High Resolution Magnetics
• FALCON® Gravity Gradiometry
AERIAL SURVEY TECHNOLOGY
Benefits:
•Fast surveys
•Target only desirable deposits
•Discover best path for mining
•Full knowledge of deposit size,
depth, and volume
•Ignore ground cover
•Safer mining
•Less environmental damage
•More efficient drilling
•Reduced survey cost
•Reduced survey time
AERIAL SURVEY TECHNOLOGY
Bodmer Capital Group AG was created with three possible exit strategies.
EXIT STRATEGIES
IPO
• Public Offering (IPO) gives the
potential of a high-reward investment.
• There are hundreds of natural resource
Exchange Traded Funds (ETF) on the
market. These ETF’s can be for individual
elements or a mixture of all natural
resources; many with assets over 1 billon.
EXIT STRATEGIES
ASSET SALES• Asset sales can provide ROI the quickest.
After acquiring the rights to mine land leases, these rights can even be sold upon completion of our aerial survey.
• The market capitalization of the largest mining company is over 200 billion, while the one hundredth largest mining company still has over a 4 billion market capitalization.
EXIT STRATEGIES
JOINT VENTUREThe option of a Joint Venture can be very lucrative, but this option is the longest process to make a ROI.
Several components must be present in order to make it a valid option.
• The land lease must be near modern infrastructure (eg. roads, water, rail) in order to transport extracted natural resources.
• The type of natural resource must also be easy to extract like copper ore or coal.
EXIT STRATEGIES
Mining License No. 2 – Phosphate
Phosphates can be used to produce the world’s most effective plant fertilizers, and the production process will also produce, as saleable byproducts, hydrofluoric acid, phosphoric acid, DAP (diammonium phosphate)—which can be used as a fertilizer, a fire retardant, a yeast nutrient -and other phosphate products.
PHOSPHATES
PHOSPHATES
• A vital plant nutrient and its main use is in the production of fertilizers.
• Used in the Processing of Various Ceramics.
• Phosphoric acid-based chemical polishes used primarily to chemically polish (brighten) aluminum and aluminum alloys.
• Flame-retardants for textiles, plastics, coatings, paper, sealants and mastics.
• Treatment of portable (drinking) water.
• Cleaning solutions with phosphates help clean mildew and stubborn stains.
Solid fertilizers – DAP and MAP – are the most common phosphate products used by
farmers.
GROWING DEMAND
• World population of 8 billion
• 80 million more people on earth every year
• Only 60% of the worlds farmland is still usable
• We need to Increase the yield output in each acre to keep up
WHY PHOSPHATES
• We believe Phosphates are great
investments
• Repeat sales with customers
• Food security equals national security
• Several sovereign funds are purchasing
agricultural lands
• Fertilizer made from phosphates
will be needed to increase output
• Leverage its connections in Mongolia
to acquire mining licenses for deposits.
• Use state-of-the-art technology to determine
the size and value of the underlying resources.
• Monetize those licenses through sale,
public offering, or joint venture.
SUMMARY
ONE MORE THING
We increased our assets from 450 mm
to 5 billion in 18 months, based on
our pre-feasibility study's on reports
from SRK the gold standard in the
mining industry
THANK YOU
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