18.11.2014 the future of mongolian projects – a bodmer capital case study, reto bodme

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Page 1: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme
Page 2: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme
Page 3: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme
Page 4: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme
Page 5: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme

WHO ARE WE?

• Swiss company

• Hybrid model between private equity

an operational company with the

guidelines of private company

Page 6: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme

• A mining company

• An exploration company

WHAT ARE WE NOT?

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• A Balanced Portfolio

• Buying undervalued assets

• Only our own projects

• Maximizing returns for our shareholders

BUSINESS MODEL

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• 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?

Page 10: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme

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

Page 11: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme

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

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• Is Mongolia the next UAE?

• Similarities are very close

• Very sparsely populated

• Large natural resources

Real GDP Growth Rates

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• 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

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WHY?

• Tremendous human capital

• Finance, Politics and Industry

• Active in Mongolia for 15 years

• Disciplined investment process

• Use of latest technology

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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?

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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

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• 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?

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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

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LEGAL

• Verification of ownership

• Verification of exploitation rights

• Authentication of surveys

• Signing LOI’s

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FINANCIAL

• Setup of escrow

• Escrow is only released upon

completion of due diligence

• ROI

• Cost of opportunity

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GEOLOGICAL

• Stress test of provided survey

• Secondary opinion

• Redundancy

• Additional opportunity

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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

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• 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

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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

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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

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Bodmer Capital Group AG was created with three possible exit strategies.

EXIT STRATEGIES

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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

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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

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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

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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

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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.

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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

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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

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• 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

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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

Page 42: 18.11.2014 The Future of Mongolian Projects – A Bodmer capital case study, Reto Bodme

THANK YOU

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