TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com Corporate Presentation – November 2019
Disclaimer This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Tinka, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Readers are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional work is needed to upgrade these mineral resources to mineral reserves. Certain information in this presentation contains forward-looking statements and information within the meaning of applicable securities laws (collectively "forward- looking statements"). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, delays in or failure to obtain the necessary permits, drilling program results varying from expectations, timing of geological reports, the Company’s ability to realize the results of the PEA, approvals from local authorities, community relations, timing and completion of any surface rights agreements, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement. The Mineral Resources disclosed in this presentation have been estimated by Mrs. Dorota El Rassi, P.Eng., an employees of Roscoe Postle Associates Inc. (RPA). Mrs. El Rassi is a Qualified Person as defined under the meaning of Canadian National Instrument 43-101 (“NI 43-101 ”) and independent of Tinka. Mr. William Colquhoun, Principal Metallurgical Consultant with Amec Foster Wheeler (Perú) S.A., a Wood company, a Qualified Person as defined in NI 43-101 and independent of Tinka, is responsible for the PEA results contained in this presentation. Ms Stella Searston, RM SME, a Principal Geologist Associate with Amec Foster Wheeler E&C Services, a Wood company, a Qualified Person as defined in NI 43-101 and independent of Tinka, is also responsible for the PEA results contained in this presentation. Mr. Edwin Peralta, P.E., a Senior Engineer with Wood Mining and Metals USA, a Qualified Person under NI 43-101 and independent of Tinka, is also responsible for the results of the PEA. Mr Adam Johnston, CP (Metallurgy) of Transmin Metallurgical Consultants, a Qualified Person as defined in NI 43-101 and independent of Tinka, is responsible for the metallurgical and recovery inputs contained in this presentation. Dr. Graham Carman, CEO and a Director of Tinka, and a Qualified Person as defined in NI 43-101, is responsible for other technical information in this presentation (information not directly related to the Mineral Resource Estimate or the PEA). 2
Focusing on the Ayawilca Zinc-Silver Project o Ayawilca Zinc Zone: over 7 billion pounds of zinc in underground resources o July 2019 Preliminary Economic Assessment (PEA) showed a robust project: Peru • After-tax NPV 8% of US$363M with IRR of 27% (Pre-tax NPV 8% of $609M with 37% IRR) using $1.20/lb Zn, $0.95/lb Pb, $18/lb Ag, and $65/t NSR cut-off • Initial capex US$262M, payback period 3.5 years after-tax (2.3 years pre-tax) Ayawilca • Average production of 200,000 tonnes zinc con/year (PERU TOP 5) and 0.9 million ounces silver/year with a 21 year mine life • Good infrastructure (power, water, roads) o Colquipucro Silver Zone: ~18 million ounces silver in open pitable resources o Significant exploration upside on the 100%-owned 170 km 2 property Work Program: o Drilling for high grade (both zinc and silver) & exploration on other targets o PEA optimization work to further increase economic potential o Company funded for current work: ~C$8 million cash (June 30, 2019 ) 3
Market Capitalization & Investors Major Shareholders TSXV & BVL: TK | OTCPK: TKRFF Institutional: Shares Issued: 264.6 M Sentient Equity Partners 24% Options (priced at $0.325 to $0.50) 11.4 M IFC (World Bank) 11% Warrants (priced at $0.45) 12.4 M Fully diluted: 288.9 M JPMorgan UK 7% Other institutions ~10% Market cap @ C$0.16/share: C$42 M Total institutional 52% Cash (Jun. 30, 2019): ~C$8 M Enterprise Value @ C$0.16/share: C$34 M Management & insiders 2% Retail/other 46% Analyst Coverage Ian Parkinson Kevin MacKenzie George Topping 4
Management & Board Management – Extensive Peru and Zinc Experience Dr Graham Carman President & CEO, Director Geologist, 2 5 years global exploration experience with Rio Tinto, Savage, Pasminco, juniors. Alvaro Fernandez-Baca VP Exploration, Peru Geologist, 20 years global exploration experience with Gitennes, AQM Copper & Hochschild. Cesar Carbajal HSEC Manager Social management specialist, 15 years experience with Teck, MWH, Peru Ministry of Mines. Mariana Bermudez Corp. Secretary 20 years regulatory compliance services experience. Nick Demare CFO, Director CPA, CA, extensive junior board experience. Independent Directors Chairman of the Board. Mining engineer, MBA, with 25 years experience in mining, oil & gas, and Ben McKeown private equity. Sentient Group representative. Professional engineer with over 20 years’ experience as a mining Pieter Britz professional and as a mining investment professional. Mary Little Founder of Mirasol Resources, geologist, MBA, 20 years in Latin America. 5
Zinc Inventories – Declining for Seven Years o Zinc prices have declined 30% from 2018 highs due to the trade war between the US and China, and concerns that zinc market will go into surplus – sentiment is bearish, but improving o While zinc demand has been impacted by the trade war, inventories continue to decline o A rebound in China zinc demand could send zinc prices substantially higher Start of Zinc inventories China-US continue to trade war decline despite China slowdown 6
Zinc Market – Upcoming Supply Gap o Forecasters have been predicting big increases in zinc mine production that have failed to materialize (e.g., Teck predicted 800kt increase in mine supply in 2018 – actual growth was 200kt) o China zinc mine production has lagged expectations due to declining ore grades and stricter environmental regulations & inspections o Teck expects zinc mine production to peak in 2021, with a supply gap of at least 700 kt by 2023 7
Exploration During 2015-2018 o Tinka has successfully grown the Ayawilca zinc resource year-on-year o Further potential exists to grow the resource quality, tonnage and grade o Tinka will aim to upgrade resources again following 2019 drilling Ayawilca Resource Growth 2015 to 2018 60 INFERRED 50 40 Resources (Mt) Inf. 2018; 6,738 Inf. 2017; 6,873 30 Inf. 2016; 3,385 Inf. 2015; 2,258 20 Ind. 2018; 2,149 INDICATED 10 Bubble size indicates contained zinc-equivalent pounds (Mlbs) 0 2014 2015 2016 2017 2018 2019 8
Ayawilca Resource – One of the Largest in a Junior 9 1 ZnEq includes all metals. Source: GMP Securities, July 2019
Tinka – Compelling Valuation in Junior Zinc space 10 1 ZnEq includes all metals. Source: GMP Securities, July 2019 TK valuations based on $C0.25 share price
2019 Ayawilca PEA Highlights (in US dollars) Robust Economics : $200 $2,000 o 5,000t/day underground zinc mine with 21 year mine life $150 $1,500 Cumulative Cash Flows (US$ millions) Annual Cash Flows (US$ millions ) o Modest initial capex of $262M $100 $1,000 o Pre-tax NPV 8% = $609M with 37.2% IRR $50 $500 o After-tax NPV 8% = $363M with 27.1% IRR $0 $0 o Payback period of 2.3 years pre-tax and 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 3.5 years after-tax -$50 -$500 o Average annual production of 101 kt zinc After-tax cash flow -$100 -$1,000 Pre-tax cash flow and 0.9 Moz silver Cumulative after-tax cash flow -$150 -$1,500 o Total cash flows of $1,611M pre-tax and Cumulative pre-tax cash flow $1,051M after-tax -$200 -$2,000 PEA metal prices: $1.20/lb Zn, $0.95/lb Pb, and $18/oz Ag Nov. 4/19 spot: $1.17/lb Zn, $0.99/lb Pb, and $18/oz Ag 11
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