Dynamic Mining

Website: www.dynamicmine.com
Primary ticker: Private
Stage of development: Development
Primary minerals: Bauxite

Dynamic Mining is a Guinea bauxite development company, commencing construction at its Bon Ami Project in 2019 for first production in Q1 2020. The Company is private and was founded by Jaguar Overseas, a global EPC group with annual turnover of US$250 million and over 1,000 employees.

The Company will complete the Bon Ami DFS/ BFS in Q1 2019, including tendering the major work packages, and is planning to secure US$90 million of funding to develop the project.

Construction at the Project will include establishing a 4.5Mpta surface mining operation, a 45km dedicated haul road and river jetty for transshipment of DSO bauxite to ocean going vessels. The project will be scaled up further to 9.0Mtpa. Initial capex is est. at US$75 million (including contingency).

Management Profile

Danny Keating – CEO

Danny Keating (CEO) has over 25 years’ experience across the mining industry, including mine production, project management, corporate finance and business development. He previously worked for Anglo American, Goldfields, Alufer Mining and ABN Amro and is a professional engineer and ACMA.

Manas Agarwal – Promoter

Manas Agarwal (Promoter) represents the Company’s investors. He has 14 years of experience in EPC and Offshore Oil drilling industry from junior to management level. After completing his Masters in Management, he has been involved from ground up in various areas of the Investor Group including Operations, Finance and Strategy.

Sandeep Thenua – CFO

Sandeep Thenua (CFO) has over 22 year’s of experience in the natural resources sector with 15 years working for Rio Tinto in various capacities. Prior to joining Dynamic he was the CFO with Diavik Diamond Mines.

What is your rationale for attending 121 Mining Investment?

Dynamic Mining is developing the Bon Ami bauxite DSO project with first production targeted by Q1 2020 through the construction of a dedicated 45km haul road and river export terminal for delivery of ore to global customers.

We wish to meet investors who appreciate the evolution of the global seaborne bauxite market and merits of the quality of the Guinean bauxite used in the alumina production process. We are seeking investors to fund the construction of the project to first ore and who are open to participate in the $90 million (including $75 million capex) financing requirement.

What recent news would you like to highlight to investors attending?

In June 2018, the Company successfully signed a Mining Convention with the Government of Guinea, which was subsequently ratified by the Guinean Parliament and signed by the President. The Convention provides greater security of tenure and stability clauses around the legal and tax regime.

In recent weeks, Dynamic has commenced an EPC tendering process for the construction of the export terminal. The process is expected to be completed before the end of the year. Further tenders for Contract Mining, Haul Road construction and Transshipment services will be issued before the end of 2018.

Delivery of the DFS/BFS is scheduled for Q1 2019.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

– Conclude PIN process with Govt. to secure haul road and export terminal access
– Update Social and Environmental Management Plans to IFC standards
– Secure binding bids for the export terminal EPC contract
– Complete Definitive / Bankable Feasibility Study

6 Months:

– Secure US$90 million of project funding
– Commence early works for construction readiness
– Complete bulk sample testing by customers and marketing off-take agreements

12 Months:

– Complete construction of haul road and export terminal
– Initiate mining for export of first bauxite

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Maintaining the project development and DFS on schedule and within cost is challenging. At present the Company is also preparing its Project Execution plans to ensure it is construction-ready at first draw down of funding.

This process is managed though an experienced team and area experts with a background of successful delivery of projects in Guinea and similar jurisdictions.

In a sentence, what do you think makes your company such a compelling investment?

Low capital project (US$70 million), with short construction period (12 months) means rapid access to cash flow and returns to investors.

Dynamic is well position to benefit from the projected strength of the seaborne- traded bauxite market, especially as the decline in local Chinese bauxite supplies is hastened by increasing environmental compliance.

Dynamic’s strength has always been in its commitment to developing a robust project within schedule and cost whilst adhering to international best practices and standards in order to ensure market leading returns to the stakeholders.