Corporate Presentation Yenipazar Polymetallic Mining Project a wholly owned subsidiary of Sept 2019
CAUTIONARY STATEMENT Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potential future events or performance (often, but not always, using words or phrases such as “believes”, “expects” “plans”, “estimates” or “intends” or stating that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “are projected to” be taken or achieved) are not statements of historical fact, but are forward-looking statements. Forward-looking statements relate to, among other things, all aspects of the development of the Yenipazar project in Turkey and its potential operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting timelines; statements and information regarding future studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth; future production costs; future financial performance; future financing requirements; and mine development plans. A variety of inherent risks, uncertainties and factors, many of which are beyond the Company’s control, affect the operations, performance and results of the Company and its business, and could cause actual results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include fluctuations in the price of gold, silver, copper, lead and zinc; variations in the cost of operations; the availability of qualified personnel; the Company’s ability to obtain and maintain all necessary regulatory approvals and licenses; risks generally associated with mineral exploration and development, including the Company’s ability to develop the Yenipazar project; the Company’s ability to obtain financing when required on terms that are acceptable to the Company; challenges to the Company’s interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in Turkey; general economic conditions worldwide; and the risks identified. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and except as required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements. The views, opinions and advice provided in this presentation reflect those of the individual presenters and are provided for information purposes only. All dollar figures are stated in United States (“US”) dollars unless stated otherwise. 2
INVESTMENT HIGHLIGHTS 1 High-Quality Asset (Gold, Silver, Copper, Lead, Zinc) High-Quality Asset (Gold, Silver, Copper, Lead, Zinc) 2 Attractive Project Economics (IRR > 32%, NPV: ~US$300M) Attractive Project Economics (IRR > 32%, NPV: ~US$300M) 3 De-Risked Execution (Updated NI 43-101 and All Permits Obtained) De-Risked Execution (Updated NI 43-101 and All Permits Obtained) 4 Shovel-Ready Project with Near-Term Value-Creation Milestones Shovel-Ready Project with Near-Term Value-Creation Milestones 5 Clear Pathway to Immediate Construction Clear Pathway to Immediate Construction 3
PROJECT HIGHLIGHTS – YENIPAZAR • High-grade, shovel-ready open pit VMS deposit – 2.3Moz at 2.42g/t AuEq (1) • 1. High Polymetallic deposit provides commodity diversification • Quality Significant exploration upside with 90% of prospective property unexplored • Conventional flowsheet with clean concentrates Asset • Strong existing partnerships, including offtake with ability to blend concentrates • Low capital costs of US$218 million plus capitalized SG&A costs of US$12 million • Low operating costs with LOM co-product cash costs <US$680/oz AuEq 2. Attractive • Strong cash flow generation potential with average annual EBITDA of >US$110 million and Project UFCF over 10 years of ~US$920 million at a cash cost of <US$660/oz AuEq Economics (2) • After-tax project NPV 10% of ~US$300 million and unlevered IRR of >32% • Turkish-American CEO and executive team based in Turkey with support and sponsorship of strong local partner • Trafigura is a strong marketing and offtake partner, additionally providing technical expertise and confirming product saleability 3. De-Risked • Long standing relationship with the community, along with local, state and federal governments Execution • Fully permitted, including Operational License • Infrastructure in place including road, rail, port, power, water, and qualified labour • 2019 Feasibility Study and Optimization Study update complete with detailed capex and opex estimates based on a comprehensive tender process • Land acquisition process completed • Indicative term sheets for project finance up to US$200M received (1) Based on updated 2019 Optimization Study (2) Based on street consensus metal prices attached in Appendix 4
TURKEY IS AN ATTRACTIVE MINING JURISDICTION ~15 gold mines built or in development 1 Strong Support for Mining in Turkey in Turkey in the last 10 years • Significant increase in mining sector GDP • No. 1 gold producer in Europe • Mature construction industry • Diverse and highly qualified labor force • No security issues within the mining sector 2 People • Turkish-American CEO leads a team of highly-experienced employees in Turkey • Access to highly-productive and low-cost labor force with mining expertise 3 Local Partner • Metallurgium Investment Limited • In depth understanding of Turkey, including the political environment 4 Policy • Government focused on attracting foreign (Çöpler) (Öksüt) (Gokırmak) mining investment • Investment incentives to lower corporate US$350M Project Finance US$150M Project Finance US$120M Project Finance tax to below 10% into 2027 • More than one mine development per year during the last ~20 years 5
ATTRACTIVE LOCATION AND SITE CONDITIONS 10 km 2 Project 10 km 2 Project Fence Line Fence Line N OUTCROPS OUTCROPS 100 sq. km concession PLANT PLANT EGLENCE 10 km 2 Project 10 km 2 Project PIT PIT VILLAGE Fence Line Fence Line TMF TAILINGS TAILINGS CLEAN CLEAN WRD WRD Waste Rock Waste Rock WATER WATER BEACH BEACH POND POND Dump (WRD) pit backfill Dump (WRD) pit backfill (starts Year 5) (starts Year 5) TAILINGS TAILINGS POND POND 1 km Established strong community relations with existing infrastructure in place 6
SHALLOW OPEN PIT Simplified Longitudinal Section of the Yenipazar Au-Ag-Cu-Pb-Zn Massive Sulphide Deposit, Central Turkey NORTH SOUTH Flat lying, well distributed deposit open along strike to the north 7
EXPLORATION UPSIDE Significant upside potential to the North • Drill holes located on the boundary of the reserve area confirmed mineralization extending to the north • Indicated grades for both precious and base metals are higher than the average grades reported for the project’s reserves • NE-03: 6.13% lead, 7.78% zinc, 1.06% copper, 1.79 g/t gold and 118 g/t silver over 17m • NE-04: 5.48% lead, 4.84% zinc, 0.56% copper, 3.11 g/t gold and 116 g/t silver over 14m • NE-05: 2.06% lead, 2.32% zinc, 0.013% copper, 0.50 g/t gold and 42 NE-05 g/t silver over 16m NE-03 NE-04 North end of pit 90% of concession unexplored 8
Recommend
More recommend
