UNICORN CAPITAL PARTNERS LIMITED

INVESTMENTS

DRILLING AND BLASTING SERVICES

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JEF DRILL AND BLAST

JEF is a specialised drilling and blasting entity offering a complete blasting solution for opencast mine blasting requirements. Clients are offered a comprehensive range of specialised blasting techniques and associated services including blast design, vibration control, hard and soft rock as well as consulting services for drilling and blasting related problems.

JEF has been able to sustain fairly high return on assets over an extended period, in good and bad times. Drilling and blasting in reality, requires fairly little to be a sustainable business delivering attractive returns. The first requirement is long-term contracts with blue chip customers. Long-termin drilling and blasting means about four years, on average, and blue chip customers mean that JEF will get paid on a continuous basis through good and bad times. Secondly, keeping drill rig maintenance up to date which ensures plant availability as well as ensuring an optimal direct drilling costs per meter is maintained. Thirdly, deliver targeted drill metres and quality blasts to keep the customer happy and revenue flowing. If plant utilisation could then be kept at above the eighty percent level, the business is likely to deliver attractive return on assets.

www.jefdrillandblast.co.za

MOBILE CRANE HIRE

Ritchie Crane Hire utilises a large fleet of heavy duty mobile cranes with capacities that range from 25 to 220 tonnes for the provision of craneage services. The company is engaged in crane hire projects in the mining and construction sectors in Gauteng, Mpumalanga and Limpopo. Ritchie has been the most consistent performer of all the operating companies within the Unicorn portfolio over an extended period. Ritchie has been able to deliver fairly high return on assets by getting the basics right and maintaining standards. Well trained crane operators with impeccable safety records are a prerequisite. The implications of a crane tipping over on a mining site are such that customers are willing to pay more for an impeccable safety record than go for cheaper options and run the risk of a safety incident. A portfolio of blue chip customers also means that you will always get paid as long as you deliver a quality job.

www.ritchiecranehire.co.za

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RITCHIE CRANE HIRE

EXPLORATION DRILLING

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GEOSEARCH GROUP OF COMPANIES

The Geosearch group of companies offers its clients a comprehensive range of exploration, grade control and geotechnical drilling services to suit even the most demanding conditions. Geosearch operates from well-established operating bases in Kempton Park (South-Africa), Tete (Mozambique) and Francistown (Botswana). Geosearch consist of three standalone operating companies namely Buenti Drilling in South Africa, Myna Projects in Botswana and AguaTerra in Mozambique. Exploration drilling is a late cycle performer and requires stable commodity prices and markets to deliver a fair return on capital. Exploration contracts are generally fairly short dated, three to nine months, while grade control drilling contracts tend to be longer dated.

Due to a historical down turn in the exploration industry and historical low utilization during this period, Geosearch drill rigs and plant and equipment have been written down to low values. The benefit Geosearch has is that its substantial fleet is in fair working condition and on hand to bedeployed on new contracts to take advantage of any upswing in exploration activity. The opportunity for Geosearch therefore lies in winning more tenders and by doing so achieving and sustaining higher utilisation levels in the coming years.

www.geosearchinternational.com

ANTHRACITE MINING

Nkomati Anthracite is situated in the Mpumalanga province of South Africa. As at 30 June 2017 the total Inferred, Indaceted and Measured reserves amounted to 8.7 million tonnes. Anthracite is produced as a coke blend for domestic and export consumption, from opencast and underground operations. Unicorn holds 50.3%, Mpumalanga Economic Growth Agency (MEGA) 33.6% and the local community 16.1% of the shareholding of Nkomati.

During 2015, Nkomati was under care and maintenance and in the process of being sold. Since then we have made many changes to ensure the extraction of maximum output from the open pit mine and completed planning to re-open the underground mine. The anthracite resource is huge, stretching over eleven thousand hectares. However, our current open pit and underground operations cover less than four hundred hectares.

During 2017 an Industrial Development Corporation (IDC) loan was secured in order to finance the mine’s expansion. Nkomati is now in a position to complete the phase two expansion and achieve steady state open pit and underground production by the first quarter of 2018.

To date, Unicorn has provided roughly R230 million through a shareholder loan to develop the mine. Once the IDC loan is repaid the Unicorn shareholder loan will be repaid and only then will dividends be available to shareholders. Nkomati has secured long-term offtake agreements. The potential value to unlock is substantial and is by far the single biggest opportunity in Unicorn’s portfolio. For more detail refer to the latest resource statement. (Link to latest resource statement)

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NKOMATI ANTHRACITE

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UNICORN CAPITAL PARTNERS LIMITED

OTHER INVESTMENTS

SENTULA COAL

Sentula Coal administer the Anglo Coal New Vaal contract which is fully
outsourced to third party operators.