TSXV: IO / OTC: INCAF / Frankfurt: SU9.F July 2020
Forward Looking Statements This presentation includes forward-looking statements which are not historical facts but instead address future events and conditions which by their very nature, involve inherent risks and uncertainties. Such information can generally be identified using forward-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” “potential” and “continue” or the negative thereof or similar variations. Forward-looking information in this presentation includes, but is not limited to, intended acquisitions, upgrades and production at milling facilities, financing plans, use of proceeds and estimated net income. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices and exchange rates; (ii) change in market conditions; (III) the fact that the Company’s development and factors affecting it may be very different from other companies; (iv) availability and quality of mill feed; (v) regulatory and political developments and (vi) future operational results may not be accurately predicted based historical results and on information to date. Forward-looking statements and other information contained herein concerning the metals and mining industry and Inca One’s general expectations concerning the industry are based on estimates prepared by management using historical data from publicly available industry sources as well as from private sources, industry analysis and on assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, certain data is inherently imprecise. While Inca One is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forward- looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance on these forward-looking statements. Future-Oriented Financial Information In addition this presentation contains future-oriented financial information (“FOFI”) . The purpose of the FOFI is to provide prospective investors with information pertaining to the Company’s longer-term objectives. Readers should be cautioned that information may not be appropriate for other purposes. Currency Unless otherwise indicated, all dollar values herein are in Canadian dollars. 2 TSX.V: IO
About Inca One Inca One Gold Corp is a gold producer operating two, fully permitted, gold mineral processing facilities in Peru. The Company produced nearly 25,000 ounces of gold from its operations in 2019 and has generated over US$100 million in revenue over the last five years. Inca One, now in its sixth year of commercial production, is led by an experienced and capable management team that has established the Company as a trusted leader in servicing government permitted, small scale miners in Peru . Peru is the world’s sixth-largest producer of gold and its small-scale mining sector is estimated by government officials to be valued in the billions of dollars annually. The company possesses a combined 450 tonnes per day permitted operating capacity at its two fully integrated plants, Chala One and Kori One, and is targeting a fourth consecutive year of increased production and sales growth. Company highlights include: ➢ First publicly traded gold processing company to complete permitting under Peru’s formalization legislation. ➢ Largest public trading processor in Peru with 450 TPD permitted capacity. ➢ Over US$100 million sales in first 5 years of operations ($35M sales in 2019). ➢ Three consecutive years of increased production and sales. ➢ Experienced in house, full time management team and trustworthy Peruvian team. ➢ Ideally positioned for scale and growth with 65% unused plant capacity. 3 TSX.V: IO
Why Peru? • The most important players in the mining industry currently have Real GPD Growth Rate: Peru vs LatAm operations in Peru: 5% ➢ Newmont, Glencore, Teck, BHP Billiton, Rio Tinto, Barrick, 4.1% 4.0% 3.9% 3.9% 3.9% 3.7% Freeport McMoRan 4% 2.8% 2.8% 2.8% • Peru is among the top producers in the following commodities: 2.8% 3% 2.5% 2.0% ➢ Copper: 2 nd with 12.1% of global production % 2% 1.3% ➢ Gold: 6 th with 5.1% of global production 1% ➢ Zinc: 2 nd with 11.2% of global production 0% ➢ Silver: 2 nd with 16.6% of global production -1% -0.6% 2016 2017 2018E 2019E 2020E 2021E 2022E ➢ Lead: 4 th with 6.5% of global production Peru LatAm • Investment flows into the mining sector over the next years are expected at US$ 59.5B. • Peru is well positioned in mining space with vast reserves: Peru’s Reserves ➢ Silver, 1 st 20% 18% ➢ Zinc & Copper, 3 rd % of World Reserves ➢ Gold, 7 th 15% 12% • Politically and economically stable - pro-business environment. 10% • Second best credit rating in LatAm: 10% 7% ➢ Investment Grade since 2008 4% 5% • Outperformer of the LatAm Region with an outstanding macroeconomic environment: 0% ➢ Peru ´ s forecast growth rate above LatAm Gold Lead Copper Zinc silver ➢ Low and stable inflation Source: Ministerio de Energía y Minas (MEM) 4 TSX.V: IO
Gold Mining in Peru G O L D P R O D U CT I O N 153 151.6 151.1 Peru was the 6 th largest producer of gold in 2018, 146.8 145 with 145 fine metric tonnes (“FMT”), roughly 5 FMT 140.1 million oz. 2013 2014 2015 2016 2017 2018 2018 PRODUCTION BREAKDOWN BY REGION LA LIBERTAD 1,242,109 CAJAMARCA 1,104,795 La Libertad, Cajamarca and Arequipa among the AREQUIPA 777,694 regions with the largest production (63% of total AYACUCHO 414,488 Peruvian production). MADRE DE DIOS 358,608 OTHER REGIONS 1,091,513 ounces REPORTED SMALL SCALE GOLD PRODUCTION 24% % of total production 21% 20% 17% 16% 15% 14% 13% Small scale mining is widespread across Peruvian 12% 12% 12% Andes and represented @ 20% of all 2018 reported Peruvian gold production. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Ministerio de Energía y Minas (MEM) 5 TSX.V: IO
Small Scale Mining Sector THE NEED FOR PLANTS • As a result of small-scale mining activity, there is a need for gold processing mills. • It is estimated that at least 15,000 TPD of ore is being produced by this group of miners, with average head grades of 0.5 ounces per tonne processed. • +82% increase in production since 2001 (from 547 k oz to 996 k oz). • Mill plants are regulated by the Mining Law (approved by D.S. N ° 014-92-EM) and the Small and Artisanal Mining Formalization and Promotion Law (N ° 27651). • Only fully permitted plants are operating in the market and gold supply to these plants only comes from KEY PLAYERS IN THE MARKET formal miners or those in the process of formalization under Peruvian Laws. • The plants are continuously monitored by the CAPACITY OWNER LOCATION TPD government. • Chala/ They are strategically located in desert locations along Chala/Kori Inca One 450 Yauca the Peruvian coast in order to minimize its environmental impact. Minera Laytaruma 350 Yauca • Laytaruma Sales reported to the Tax Authority (SUNAT). • Competition to retain key gold suppliers leads to fast Veta Dorada Dynacor 330 Chala and fair payments and to highly efficient operations. 6 TSX.V: IO
The Processing Model Gold doré is Miner delivers sold and mineral to Chala exported to One/Kori One 06 Europe. plants. Sale and Export 01 Mineral Carbon is 05 Careful, Delivery harvested and Harvest and systematic testing gold/silver Smelter prior to mineral concentrate is purchase is done desorbed, to determine then smelted 02 grade and into gold doré. Measure and recovery . 04 Test Process Material 03 Mineral is Purchase and Mineral is processed and gold Stockpile purchased at inventory turns discount to spot over approximately price and every 3-4 weeks. stockpiled. 7 TSX.V: IO
Processing Facilities CHALA ONE KORI ONE Location Arequipa Arequipa Permitted Operating 100 TPD 350 TPD Capacity Tonnes Processed 2019 22,941 29,243 Inca One Ore Gold Produced 2019 12,304 12,546 Collection (oz) Depot Average Operating 47km between 0.60 0.50 Grade 2019 (oz/tonne) Lima Chala One and Kori One Upgraded and Recently upgraded and increased tailings increased tailings Tailings capacity with room for capacity with room for Kori One further expansion further expansion Chala One Note: above production figures are reported here on a calendar basis. 8 TSX.V: IO
Plant Photos: Chala One & Kori One Kori One plant – Ball mills and Crusher circuit Kori One plant - Tanks Chala One plant – Ball mills Chala One plant – North west view 9 TSX.V: IO
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