Century Global Commodities Corporation Corporate Presentation By - PowerPoint PPT Presentation

Century Global Commodities Corporation Corporate Presentation By Sandy Chim, CEO PDAC, March 2016

Forward Looking Statement Except for statements of historical fact, this presentation contains certain “forward -looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “project” ; “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain required permits, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally, potential environmental issues and liabilities associated with exploration and development and mining activities. The Corporation is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Corporation undertakes no obligation to update forward-looking information if circumstances or management’s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Corporation. 2 P D A C , M a r c h 2 0 1 6

Cash & Capital Structure Financial highlights ( Dec 31 , 2015) C$ Cash and bank deposits $25.2M Receivables (accounts & tax) $11.5M Total corporate working capital . . . . . . . . . Available for M&As $36.5M Exploration and evaluation assets $20.5M Investment in a joint venture (with a net cash position of ~$5.7M ) $60.8M NAV $119.1M Capital structure Share holdings Shares outstanding 98,794,571 Founding shareholders 35.5% Management 16.6% Fully diluted 112,915,071 Options/Grants: 13,120,500  WISCO (23.5%) 28.2%  Warrants: 1,000,000 Minmetals (4.7%) Market capitalization Altius Minerals Corp. 5.1% ~$30M Other public shareholders 14.6% (@ closing share price of $0.30, March 3, 2016) Total 100.0% 3 P D A C , M a r c h 2 0 1 6

Century - Well Funded C$M Cash and receivables 36.5 JV Net Cash 5.7 Market Cap ~30.0 Available for strategic plan 36.5 Century and JV cash gives flexibility to:  pursue M&A in depressed market move ahead with mining database and non-metal initiatives  maintain iron ore strategy and prepare for market recovery  4 P D A C , M a r c h 2 0 1 6

Strong Chinese SOE Strategic Partnerships for a Dual Ferrous and Non-ferrous Strategy Non-ferrous WISCO Value Acquisition and 23.5% 4.7% Century Minmetals Creation in An International  M&As: Global Resources Exploration & Undervalued Markets Down-cycle Commodities Development Development Corporation & Investment (Luxembourg) value creation  Commodity cycle upside (TSX: CNT) Ltd (PRC) Limited S.à.r.l   Mining Lower cost curve  Self-funding potential 40% 60% Database: 100%  Attraction to strategic Tracking partners value for  Strong balance sheet Tracking value and market partners & trends of mining (~$40M) for strategic M&As companies. users 100% Non-Metals Business Unit Ferrous Iron Assets Positioned for Market Recovery  Organic JV Net Cash $5.7M growth :  Joyce Lake DSO (BFS): Projects are high-grade low capex / 65% self-funded to 100% 100% opex- 1 st Priority FS and EIS  Full Moon taconite (PEA): Attikamagen Sunny Lake Duncan Lake high-volume long-term Project Project Project supply 5 P D A C , M a r c h 2 0 1 6

Non-Ferrous and Ferrous Strategies Non-Ferrous  M&A - focus on producing facilities, esp. gold  Mining Database - launching now with gold  Non-metal business targeting major EMs' demand to generate cash flow while the metals market recovers Ferrous (Quebec, Newfoundland and Labrador ) Maintaining assets for market recovery including: ▫ Joyce Lake DSO Feasibility complete ▫ Blackbird DSO Resource estimate ▫ Full Moon Taconite PEA complete ▫ Duncan Lake Magnetite PEA complete 6 P D A C , M a r c h 2 0 1 6

Joyce Lake DSO – Feasibility March 2015 Operating Cost $58.25 Opex FOB, Sept-Îles C$/t $46.61 Opex FOB, Sept-Îles US$/t Capital Cost 259.6 Capex C$M Operating Parameters 7+ Life of Mine years Oblique View of Joyce Lake Mineralization 2.5M Tonnage tpa Dry Processing Reserves Tonnage Fe % SiO 2 % 35% Product mix lump 17.72 M 59.71 11.62 Reserves (+ 52% Fe) 65% fines Environmental Impact Statement completed (waiting to submit)  Post feasibility – internal optimization complete  Project positioned to proceed quickly when market recovers as first project  development followed by others, including the Full Moon Taconite Project 7 P D A C , M a r c h 2 0 1 6

Iron Ore: Where We Are, How We Got Here  Iron Ore Price Trend Market Global China’s US$600B stimulus Over supply  bottom? financial Real estate boom in China from major 250  crisis recovery? Start of major expansions expansions 200 Mar 3, Dec 11, 2016: 2015: US$51.6 US$37.0 150 ~30% YTD (lowest in 15) US$/t 100 OR 50 7 - 8 years 0 End 2015: US$40.2 Iron Ore Spot Price (TSI (CFR China) Fe62% spot since ~2009) 8 P D A C , M a r c h 2 0 1 6

Where we are headed Iron Ore Market Dynamics in the Coming Cycle  China demand factor:  Steel demand peaked two years ago  More sustainable mid-high rate GDP growth (5-7%) driven by consumption (requiring fewer commodities than in the last cycle) and structural reforms  No massive stimulus anymore. Short-term limited and specific government target stimulus expected to maintain target (~7% in 2016) growth only  Recent surge in iron ore price due to seasonal re-stocking and supply disruption at Port Hedland due to tropical cyclone  Longer-term outlook remains positive on the strength of such massive regional initiative as One Belt One Road , started with AIIB last year  Global supply factor:  Oversupply due to major expansions and cost reductions by top producers  Major expansions to complete by 2018 (Vale sees 70mtpa capacity exit in 2016)  Cost curve is flattening as more low-cost supply enters the market  Iron ore price expected to remain low in the short to medium term 9 P D A C , M a r c h 2 0 1 6

Century Strategically Positioned  $5.7M of patient cash in Iron Ore JV  All three projects are at BFS or PEA  Carrying cost for projects is minimal  Prepared to wait two-three years or longer if necessary  Once market returns Joyce Lake DSO (EIS completed) can be brought to production in 18 to 30 months  Creating value for shareholders continues with M&A, Database and other Non-metal initiatives 10 P D A C , M a r c h 2 0 1 6

Non-Ferrous Strategy: Why diversify? US$B China’s GDP in US$B (Past and Projected) Consumption-led, service-oriented economy: 30000  Mid-high income per capita Country / Region's Share of World's 2015 GDP Growth  Demand for quality consumer products 25000  More investable assets demanding quality investment products and services Other 20000 China In 2016 36% 38% China grows Super Cycle by $740B to 15000 $12T USA EU 16% 10% China joins 10000 WTO and starts Economic Reform begins housing reform 5000 0 Low labour cost Growth by fixed Consumption-led driving cheap exports asset investment Service-oriented Source: China NBS data, IMF, Century (constant 2015 constant exchange rate in forecast years from 2016 forward) 11 P D A C , M a r c h 2 0 1 6

Two-Pronged Non-Ferrous Strategy M&A:  Focus on value proposition, precious and base metal producing opportunities  Maintaining relationships with sources of capital The Century Mining Database:  Originally built for Century use for acquisitions  Designed with proprietary algorithms for searches for both professionals and retail investors  Considering a link to strategic partners with substantial user-base community  Fully translated with focus on Chinese clientele for mining investment purposes 12 P D A C , M a r c h 2 0 1 6