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Report
AUGUST 2010 STRICTLY CONFIDENTIAL
FEC MADEN ENERJI A.Ş - Company MATERIALS
Disclaimer
While the information contained herein has been prepared in good faith, the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have
authority to give, any representation or warranty, express or implied, as to the accuracy, reliability, completeness or fairness of the information or opinions contained in this Presentation or any
revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and
liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept
any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions
contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.
Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to
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information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers.
In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of
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taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and
assumptions and each recipient should satisfy itself in relation to such matters.
Forward-Looking Statements. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including,
without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating
to the Company's business) are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies
and the environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety
of factors. These forward-looking statements speak only as to the date of this Presentation and cannot be relied upon as a guide to future performance. The Company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this Presentation or reflect any changes in its expectations with regard thereto or
any change in events, conditions or circumstances on which any statement is based.
Table of content
Executive summary
Shareholder’s structure
Strategy
Project status
Project location – Turkey map
Project location – upper region
Turkish mining regulation
Gold and currencies
Gold price performance vs S&P 500
Gold price in perspective
Gold price in perspective (continued)
4
5
6
7
8
9
10
11
12
13
14
Trends in demand and supply
15
Demand per capita and type
16
Supply by type & country
17
Demographic changes in gold production
18
Mineralization and cost of gold production
19
Turkish gold market summary
20
Tethyan metallogenic belt
21
Turkish gold mine production
22
Summary of actual mine production in 2009 23
Partners
24
Contact details
25
Executive summary
4





FEC Maden Enerji A.Ş. (“FEC” or “the Company”) was established in May 2010 for the purposes of exploration, development &
production of gold in Haymana region, a district of Ankara province in Turkey.
Building on the work of its main shareholder; RNG Holdings AG (“RNG” or “RNG Holdings”), FEC obtained five gold exploration
licenses between May and June, 2010. In addition, the Company is at its final stages of receiving additional five exploration
licenses of similar character.
The licenses were acquired based on proprietary information related to the Company's own and external studies in the area. These
studies indicated high reserves potential and above average gold concentration per tonne (“pt”).
On July, 2010 the Company engaged SRK Danismanlik ve Muhendislik A.Ş. (“SRK Consulting”) to begin performing studies, with the
first results expected at early August, 2010. Spektra Jeotek Sanayi Ve Ticaret A.Ş was engaged as the contractors to assist in the
early drilling stages.
FEC is currently examining its capital needs to address its strategic expansion in exploring and developing its current resources. The
Company invites interested parties to participate in its story.
Shareholder’s structure
5
Shareholder’s Structure, graphic illustration.

FEC was registered in May, 2010 with a full legal name of F.E.C.
MADEN ENERJI PET.GAZ ELEKT.ELEKTR.ILERI TEK.PRJ ARGE ÜRÜN
SAN.TIC.A.S. The Company was registered at the following
address: Uğur Mumcu Cad. 64/6, G.O.P. 06700 Ankara/Turkey.

The main sponsor of FEC is RNG Holding, held directly.

The remaining 30% are owned directly by a Turkish partner.

FEC has no debts and its operations have been fully financed by
the sponsor’s own capital resources.
Turkish Partner
RNG Holding
29%
FEC Maden
Enerji A.Ş
71%
RNG Holding
Source: Company information.
Turkish Partner
Strategy
6






The Company’s long term vision is to develop a vertically integrated organization involved in the various stages of the
exploration, development, production and trade of gold and other metals.
Through the short to medium term, based on existing ground work, the Company would aim to cooperate with the leaders of mining
industry to progress its current projects towards operational stage.
To minimize risks, FEC employs the latest technology in exploration such as structure-metric analysis as well as traditional methods of
geophysics, seismic survey and drilling.
The Company has developed a good relationship with local authorities, and will aim to maintain the mutual understanding and
support through various social participations such as the Rotary Club, United Way along with other activities involving local
communities.
FEC will aim to adopt the highest standards related to environment and safety, that will be emphasized through the use of the latest
technology and environment and safety procedures implemented in operation.
As of August 2010, the Company incurred close to USD 2.5 million (“mln”) in total expenses. The expenses were funded through cash
meaning that the Company is debt free.
Projects status
7






The Company currently holds titles to five exploration licenses (“upper region”) and is in its final stages of approval for additional five
exploration licenses (“lower region”) in the region of Haymana, Turkey.
The upper region covers an area of 8,752 hectares (“ha”) or 87 km2 . On July, 2010 the Company engaged SRK Consulting to begin
performing geological studies, with the first results expected at early August, 2010. Spektra Jeotek Sanayi Ve Ticaret A.Ş (“Spektra”)
was sub contracted to assist in the early drilling stages. Additional details on the licenses and the location are provided on slides 7-10.
The lower region is located within the same region. Due to the most recent changes in Turkey’s mining legislation a number of
procedures in issuing exploration licenses have been modified. This resulted in minor delays in the issue of the exploration licenses
applying to the lower region. The terms between the Company and the relevant bodies have been reached. The Company is permitted
to perform basic exploration work while awaiting the full exploration licenses.
With the stage of geological studies and initial drilling completed the Company will adopt an open pit approach.
The primary product focus for the Company is gold of 21.5 to 22 carat (“ct”). In addition, the Company is expecting to produce silver,
platinum , chrome, magnesium and iron ore.
The Company currently employs seven individuals on a full time basis, three of whom are geologists with a combined 30 years
experience in mining.
Project location
8
Map of Turkey, with Ankara, (black circle) Ankara and Haymana (yellow circle) province (in red)


The project is located
approximately 20 km
south west of Haymana
town and 80 km south
of Ankara. Haymana
district covering an area
of 2,976 km2 and is
sparsely* populated.
The project’s main road
stretching from Ankara
is the D750.
Source: Wikipedia.
*According to the Turkish Statistical Institute (TSI), as of December 2009 the population of the Haymana district amounted to 34,912 of which 25,544 live in the town and villages.
Project location – upper region
9
No. Date Issued
1 31-May-10
2 31-May-10
3 31-May-10
4 31-May-10
5 16-Jun-10
Maturity
Grade Licnese Number
31-May-13 IV
201002974
31-May-13 IV
201002975
31-May-13 IV
201002976
31-May-13 IV
201002977
16-Jun-13
IV
201003725
Area (Hectare)
1,998
1,948
1,665
1,205
1,937
8,752
Source: Company accounts



The upper region licenses covers 8,752 ha or 87 km2 .
The region of the exploration and nearby surrounding
benefits from high concentration of water resources, which is a
positive factor that tends to benefit local mining. The low
density of the regions’ is also a positive factor. Lower density
eases the extraction of minerals and reduces operating
expenses.
The favorable climate combined with exiting regulation allows
a mine to operate 10 months a year.
Turkey’s mining regulation in brief
10







The mining industry in Turkey is regulated by the Turkish mining law. The General Directorate of Mining Affairs (GDMA), a unit of the Ministry of Energy and
Natural Resources, is the authorized body to regulate the mining activities and issue mining licenses.
Turkey’s modern mining regime governance dates back to Mining Law No. 3213 of 1985, amended by Law No. 5177 of June 2004 to support foreign direct
investments in the sector and promote more investor friendly environment.
In the month of June 2010, the president of the republic of Turkey, Abdullah Gul, signed a new bill into Mining law No. 5995. The amendment was received
positively by the mining community and is expected to provide more transparent and efficient framework for exploration and development activities.
In essence there are two types of licenses for prospecting and operating the mines stated under the laws of the Republic of Turkey. Prospecting license, allows its
holder to carry out exploration activities in a specific area. The operational license has to phases to it, first when an operational license is issued it allows to its
holder to carry out operational activities within the same area stated in the prospecting license. The operational permit enabling its holder to operate specific mine
as specified in the operational license.
Under the Turkish mining law, mining licenses are divided into five groups which are subject to different terms and conditions on licensing principals and procedures.
Group number four covers the key metals relevant to the F.E.C which among others include: gold, silver, chrome, magnesium and ore.
The term of the exploration concerning group IV license is granted for three years and can be extended for additional two years subject to application made with
the exploration activities reports in a timely manner. Operational license are granted for a minimum of 10 years and can be extended further up to 60 years.
Gold producers are exempt from VAT payments which applies to all stages of the Company's operations. A royalty on ore processed off site will be paid to the
state for mining activities amounting to 2% of the sales value of the ore mined. Ore processed on site at the operators' plant is reduced to 1%.
Gold and currencies
11
1,400
Gold price in USD, per ounce, January 1971 – July 2010
1,200
1,000
800
600
400
200
0
Source: Gold Market Intelligence

Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010ytd
Mean
Median
EUR
8.10%
5.90%
-0.50%
-2.10%
35.10%
10.20%
18.80%
11.00%
20.50%
28.50%
13.55%
10.60%
USD
2.50%
24.70%
19.60%
5.20%
18.20%
22.80%
31.40%
5.80%
23.90%
10.50%
16.46%
18.90%
GBP
5.40%
12.70%
7.90%
-2.00%
31.80%
7.80%
29.70%
43.70%
12.10%
23.10%
17.22%
12.40%
AUD
11.30%
13.50%
-10.50%
1.40%
25.60%
14.40%
18.10%
33.00%
-3.60%
16.70%
11.99%
13.95%
CAD
8.80%
23.70%
-2.20%
-2.00%
14.50%
22.80%
11.50%
31.10%
6.50%
11.60%
12.63%
11.56%
Yuan
2.50%
24.80%
19.50%
5.20%
15.20%
18.80%
22.90%
-1.00%
24.00%
10.59%
14.25%
17.00%
Source: Erste Bank Group, as of 1st of June 2010.
Gold has outperformed most asset classes in the past ten years, gaining an annual average of 16.5% in dollar terms and 13.55%
in EUR terms since 2001. Although copper and oil recorded similarly positive performance, their volatility was significantly higher.
Gold performance relative to S&P 500
12


Since 1971, the S&P 500 has
increased by a multiple of 11x,
whereas gold (in 1971, gold price
was set floating) had increased by a
multiple of 32x in dollar terms.
3,500
According to Erste Bank Group, on an
inflation-adjusted basis, the high of
21st of January 1980 (USD850)
amounts to USD 2,300/ounce in today
terms, basing the calculation on official
inflation statistics. On the basis of the
old shadow statistics, gold would have
to rise to USD 7,494 in order to
exceed the 1980 high in real terms.
2,000
Gold vs S&P500 rebased at 100 from January 1971- July 2010
3,000
2,500
1,500
1,000
500
0
1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
Source: Gold Market Intelligence, Bloomberg.
Gold price in perspective
13


Currently, some 0.8% of all global
financial assets are invested in gold, gold
shares, and ETFs. In 1932, the allocation
was 20% and in the last bull gold market
in the beginning of the 1980’s it was 26%.
If a total of 2% were allocated to gold,
the additional demand would amount to
about 85,000 T or the total global mining
output for almost 34 years.
A comparison with institutional cash yields
a similar result. The market capitalization
of money market funds amounted to USD
4,123bn as of 20 May. The aggregate
market value of physical gold ETFs
currently comes to slightly less than USD
70bn, i.e. only 1.7% of the volume.
Gold allocation vs money market funds
35%
100%
30%
80%
Gold allocation as a pct of total global financial; assets
30%
28%
26%
25%
60%
20%
20%
98.3%
15%
40%
10%
20%
5%
0%
0.80%
1.7%
Institutional cash and physical
gold ETF
Money Market funds Gold ETF's 70
Source: Erse Bank Group
0%
1921
Source: Erse Bank Group
1932
1948
1981
2009
Gold price in perspective (Continued)
14
10,365
10,000
8,000
6,000
1,060
1,050
862
293
247
200
Gold Bugs Index
1,419
2,000
Micorsoft
3,452
Exxon Mobile
3,755
4,000
ARCA Oil Index
NYSE
Pharamacueticals
KBW Banking Index
Source: Erse Bank Group
Nasdaq Computer
0
Dow Jones Industrial
Still, sales figures are low in comparison with the past.
The Krugerrand mint have been selling between 2 to
6 mn oz per year in the period between 1974 to
1984. In 2010, the refinery expected to sell 1mn oz.
Capitalization of major indices in bn USD
Nasdaq

The physical market sometimes completely sold out,
Munze Osterreich (Austrian Mint one of the five
largest mints in the word) posted a record result in
2009. The Company sold 1.6 mn oz, up from 0.137
mn oz in 2007. On aggregate (including gold for
trading purposes, bullions etc) their volume incased
from 0.277 mn oz to 2.1 mn oz between 2007 and
2009.
12,000
bn USD

The capitalization of the equity markets makes a
similar point. The Gold Bugs Index (“GBI”) which
contains the 16 largest unhedged gold and silver
producers and was valued at USD200 billion (“bn”)
as of 22nd May 2010 represented only 1.9% of total
market capitalization of the S&P 500.
S&P 500

Global trends in demand and supply of gold
15



On the demand side, some of the main trends include an
increase in investment demand and a reduction in gold
demand for jewelry purposes.
Part of the reasons include: financial instability and
unsustainable supply of paper money, new financial
products such as the exchange traded funds (ETFs), lower
mineralization of mines and an increase of production
costs. All these resulted in an increase of the price of gold
by 434% for the last decade and close to 3,400% since
1970’s.
Meanwhile, Turkey the largest consumer of gold in
Europe, the largest supplier of recycled gold in Europe is
one of the fastest growing gold producers in the world
reflecting a growth above 300% in terms of mine supply
between 2007 and year end 2009.
5,000
2,500
4,500
2,480
4,000
2,460
3,500
2,440
2,420
3,000
2,400
2,500
2,380
2,000
2,360
1,500
2,340
1,000
2,320
500
2,300
0
2,280
2004
2005
Supply
Source: Virtual Metals, BNP
2006
2007
Demand
2008
2009
2010f
Mine supply
Gold production in mt

Over the last decade, gold supply was characterized by
falling mine production of close to 10%, a material
increase in the supply of recycled gold of197% and a
decrease in central bank selling.
Demand & Supply in mt

Demand, Supply and mining production in mt, 2004-2010
The world’s total gold demand and supply in 2009
represented 3.4 mt and 3.9 mt respectively.
Demand per capita and type
16


Over the last decade, the
demand for gold has been
characterized by a decreasing
consumption of jewelry and an
increasing demand from
investment and industrial
purposes.
Gold demand trends, 2000 & 2009
4
4,500
3.5
4,000
3,500
3
3,000
2.5
2,500
2
2,000
1.5
1,500
For the first time in many years
investor demand might exceed 1,000
500
jewelry demand in 2010. In
0
2000, investment demand
accounted for only about 4.8%
of total demand, in 2009 for as
much as 37%.
Gold demand in grams per capita, 2009
1
0.5
0
2000
2009
Other
Industrial
Investment
Jewelry
Source: Virtual Metals, BNP
Source: Erse Bank Group
Supply by type & country
17



In 2009, only 58% (or 2,432 mt) of total
gold supply was attributed to mining
production activity. Scrap recycling
activity was the second largest contributor
with 33% (or 1,408 mt)
Traditional countries such as the USA,
Canada, Australia and South Africa are
losing importance, with countries such as
Russia, Indonesia China reporting strong
growth in production.
In 2007, China took over South Africa as
the world’s biggest gold producer,
producing 314 mt in 2009, up 11% from
2008.
Gold production source.
100%
90%
Gold producers share by country, 2009
9%
China
Other
80%
70%
13%
South Africa
33%
Australia
35%
60%
50%
9%
Recycled
9%
40%
30%
USA
Canada
Russia
58%
20%
10%
9%
4%
Mine
Production
8%
8%
Indonesia
Others
0%
Source: Virtual Metals, BNP
4%
Peru
Source: Erse Bank Group
Demographic changes in gold production
18
Gold mine production by country, 1850 - 2009
Mineralization and cost of gold production
19

From 1830 to 1920 the average content of gold per mt
was 22g, today it is 0.8g per mt. One of the main
reasons is the fact that many of the high grade, easy
extractable deposits have been depleted.
700
Estimated cost of gold production, from 2003-2011f
600
500
400

As a result, cash costs increased substantially, reaching
almost USD 500/ounce in 2009. Meanwhile the “all-in
costs” increased to USD 740/ounce. Not only are the
production costs rising exponentially – the expenditure
involved in building new mines is as well.
300
200
100
0
2003
2004
2005
Source: Erse Bank Group
2006
2007
2008
2009
2010f 2011f
Turkish mining sector
20


According to data provided by the Turkish
statistical institute, the monthly metal mining
production index in May 2010 had
increased by 34% year on year. This
compared with 13% growth with the
average industrial production and 15% with
the general mining and quarrying index.
According to the chairman of the gold
mining association, Turkey has a potential
of 6,500 mt of gold of which miners know
where 710 mt are located. An estimated
figure of USD 10 bn of capital is required
to find the rest. Today, only USD 50 mn are
spent in Turkey per year, where developed
countries with similar potential spend USD 5
bn a year.
Turkey’s monthly Industrial statistics May 2005 – May 2010 rebased in 2005.
300
Total industrial
production
Index
250
200
Industrial
production
mining &
quarrying
Index
150
100
Industrial
production
mining of metal
ores Index
50
0
2005
2006
Source: Turkish statistical institute
2007
2008
2009
2010
Tethyan Metallogenic Belt
21
Tethyan Metallogenic Belt, and existing gold mines


Turkey is located within the important
metallogenize area also known as the
Tethyan Eurasian metallogenic belt
(TEMB). The TEMB extends through
Turkey, Iran, Afghanistan and Pakistan
and through the Himalayas. Some of the
worlds largest gold and copper deposits
have been located within the boarders
of TEMB.
According to Turkish exploration
general directorate, 90 commodities are
traded in the world mineral market. Out
of this 90, 73 commodities are mined in
Turkey.
Source: Fronteer gold
Turkish gold mine production
22
Turkey’s gold production in mt, 2001 - 2009



The Mastra and Ovacik mines are operated
and owned by KOZA ALTIN İŞLETMELERİ
A.Ş., (“Koza”) a private Turkish Company
backed by Turkish capital.
The Kisladag mine is owned by Eldorado
Gold Corporate, a Canadian Company with
listings in Toronto, New York and Australian
stock exchanges.
Turkey has experienced a significant
increase in gold mine production since 2004,
an increase of more than 300% since 2004
and 800% since 2001.
16
Turkey’s gold production in mt

Turkey’s three main producing mines include
the Ovacik, Mastra and Kisladag mines.
14
12
10
8
6
4
2
0
2001
2002
2003
Mastra/Koza
Source: Mining Journal, March 2010.
2004
2005
Kisladag/Eldorado Gold
2006
2007
2008
Ovacik, Kucukdere/Koza
2009
Summary of actual mine production in 2009
23



When comparing total costs per oz
to the world average, current gold
producing projects in Turkey show
a competitive distinction.
Based on the Turkish gold mining
association, there are currently 30
firms involved in the exploration
and production. Half are funded
by foreign capital.
During 2010, Koza was listed on
the Istanbul stock exchange raising
USD436 million for a 34.5% stake,
valuing the Company at close to
USD2 bn.
Gold producing mines
2009
Company
Project
Status
Type
Eldorado
Gold
Kısladağ mine
Production
Open pit
Koza
Mastra
Production
Open pit
Koza
Mastra
Production Underground
Koza
Ovacik,
Kucukdere
Production Underground
Source: Koza and Eldorado Companies Accounts for 2009.
*From actual production
Production Au oz Total costs Au
oz
Gold grade
(g/t)
237,210
$305/oz
1.11
228,000
$312/oz
6.56
Key Partners
Jeotek Sanayi Ve Ticaret A.Ş
According the Company website:


24
Formed in 1974, SRK now employs more than 900 professionals
internationally in 36 permanent offices on 6 continents.
Among SRK's 1500 clients are most of the world's major and
medium-sized metal and industrial mineral mining houses,
exploration companies, banks, petroleum exploration companies,
construction firms and government departments.
According to public information:

The Company was founded in 1985, since then it had
provided drilling and other services in geological
engineering, geotechnical engineering, hydro geological
engineering, geophysical engineering, foundation
engineering, mining engineering and civil engineering in
the areas of consulting and implementation services.
www.fec-resources.com

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