Primero corporate presentation january 2015 update final

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<ul><li><p>TSX P I NYSE PPP I </p><p>CORPORATE UPDATE JANUARY 2015 </p></li><li><p>TSX P I NYSE PPP I </p><p>This presentation may contain forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect managements expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might, or will be taken, occur or be achieved, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Companys operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Companys annual information form and will be detailed from time to time in the Companys continuous disclosure, all of which are, or will be available, for review on SEDAR at This presentation uses the terms measured resources, indicated resources and inferred resources. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$. </p><p>Cautionary Statement </p><p>2 </p></li><li><p>TSX P I NYSE PPP I 3 </p><p>Stable Platform for Growth OUR KEY FOCUS </p><p>Producing in Americas Top Mining Jurisdictions </p><p>Established Growth Profile from Assets in Production </p><p>Disciplined Cost Management </p><p>Experienced Board and Management </p><p>Strong Financial Position </p><p>Track Record of Delivering on Stakeholder Commitments </p><p>Corporate Office (Toronto) </p><p>Producing Mine Development Project Exploration Property </p><p>Black Fox </p><p>Grey Fox </p><p>San Dimas </p><p>Cerro Del Gallo </p><p>Ventanas </p></li><li><p>TSX P I NYSE PPP I </p><p>111 </p><p>143 161 </p><p>180 190 </p><p>215 64 </p><p>80 </p><p>100 </p><p>100 </p><p>2012 2013 2014 2015E 2016E 2017E</p><p>Black Fox San Dimas 300-350 </p><p>250-270 </p><p>280-300 </p><p>Targeted Production Growth Profile (AuEq koz) 1,2 </p><p>4 </p><p>1. Strong balance sheet </p><p>2. Measured growth </p><p>3. Disciplined cost management </p><p>4. Low-risk jurisdictions </p><p>5. Responsible mining </p><p>Operating in attractive mining jurisdictions with: Long mining history Stable Government Established permitting process </p><p>Located in areas with: Existing infrastructure Skilled local workforce Suppliers Community support </p><p>Established Organic Growth Profile FROM ASSETS IN PRODUCTION </p><p>225 </p><p>*See final slide for footnotes. </p></li><li><p>TSX P I NYSE PPP I </p><p>Increased Production by 57% in 2014 </p><p>2013 2014 </p><p>Gold equivalent production1 (gold equivalent ounces) </p><p>143,114 225,100 </p><p>Gold production (ounces) </p><p>111,983 190,000 </p><p>Silver production1 (million ounces) </p><p>6.05 6.15 </p><p>All-in Sustaining Costs3 ($ per gold ounce) </p><p>$1,077 $1,217 </p><p>Cash cost3 ($ per AuEq ounce) </p><p>$599 $687 </p><p>5 </p><p>DISCIPLINED COST MANAGEMENT </p><p>*See final slide for footnotes. </p><p>0</p><p>50,000</p><p>100,000</p><p>150,000</p><p>200,000</p><p>250,000</p><p>2013 2014</p><p>+57% </p><p>Production (AuEq ounces) </p></li><li><p>TSX P I NYSE PPP I 6 </p><p>A Further 20% Production Growth in 2015 </p><p>2014 Black Fox San Dimas Outlook 2015 </p><p>Attributable gold equivalent production1 (gold equivalent ounces) </p><p>225,100 75,000-85,000 175,000-185,000 250,000-270,000 </p><p>Gold Production (ounces) 190,000 75,000-85,000 145,000-155,000 220,000-240,000 </p><p>Silver Production1 (million ounces) 6.15 6.5-7.5 6.5-7.5 </p><p>Total cash costs3 (per gold equivalent ounce) $687 $820-$870 $590-$640 $650-$700 </p><p>All-in Sustaining Costs3 (per gold ounce) $1,217 $1,075-$1,125 $840-$890 $1,000-$1,100 </p><p>*See final slide for footnotes. </p><p>2015 GUIDANCE </p></li><li><p>TSX P I NYSE PPP I 7 </p><p>Lower 2015 Capital Expenditures </p><p>Capital Expenditures Estimated 2015 Costs </p><p>San Dimas Underground Development $15.2 million </p><p>San Dimas Sustaining Capital $10.8 million </p><p>San Dimas Projects $15.4 million </p><p>San Dimas Sub Total $41.4 million </p><p>Black Fox Underground Development $13.4 million </p><p>Black Fox Sustaining Capital $4.5 million </p><p>Black Fox Projects $3.4 million </p><p>Grey Fox Development Studies $1.3 million </p><p>Black Fox Sub Total $22.6 million </p><p>Cerro del Gallo Development $2.7 million </p><p>Total $66.7 million </p><p>2014 Capital Expenditure $80 million Note: Figures may not add due to rounding. </p><p>2015 GUIDANCE </p></li><li><p>TSX P I NYSE PPP I 8 </p><p>Continuing to Invest in Exploration 2015 GUIDANCE </p><p>Capitalized Exploration Expenditures Estimated 2015 Costs </p><p>San Dimas Diamond Drilling $3.1 million </p><p>San Dimas Drifting $1.9 million </p><p>San Dimas Regional Diamond Drilling $0.9 million </p><p>Ventanas Regional Diamond Drilling $0.5 million </p><p>San Dimas Sub Total $6.4 million </p><p>Black Fox Diamond Drilling $5.0 million </p><p>Grey Fox &amp; Regional Exploration $7.3 million </p><p>Black Fox Complex Sub Total $12.3 million </p><p>Cerro del Gallo Geology Mapping $0.4 million </p><p>Total $19.1 million </p><p>2014 Exploration $35 million </p></li><li><p>TSX P I NYSE PPP I </p><p>Strong Financial Position </p><p>Exchanges TSX: P NYSE: PPP </p><p>Balance Sheet (September 30, 2014) </p><p>Cash </p><p>Line of Credit5 </p><p>Total Liquidity </p><p>Convertible Debenture (6.5%, due March 2016, $14 conversion) </p><p>Line of Credit Draw Down5 (Due May 2017) </p><p>Total Debt4 </p><p>$22 million </p><p>$45 million </p><p>~$67 million </p><p>$48 million </p><p>$30 million </p><p>$78 million </p><p>Capital Structure </p><p>Common Shares Outstanding 6 </p><p>Fully Diluted 7 </p><p>Market Cap. At Jan 19, 2015 </p><p>160 million </p><p> 190 million </p><p>C$895 million </p><p>POSITIONED FOR GROWTH </p><p>Source: 2014E-2016E Operating Cash Flow Capital IQ consensus CFPS multiplied by current 160 million shares outstanding. </p><p>$67M </p><p>STRONG Liquidity </p><p>$78M4 PRUDENT Debt Level </p><p>September 30, 2014 </p><p>Consensus Estimated Operating Cash Flow ($ millions) </p><p>9 </p><p>$72 $79 $115 </p><p>$155 </p><p>$0</p><p>$50</p><p>$100</p><p>$150</p><p>$200</p><p>2013 2014E 2015E 2016E</p><p>*See final slide for footnotes. </p></li><li><p>TSX P I NYSE PPP I </p><p>Experienced Board and Management </p><p>10 </p><p>Joseph Conway | President &amp; CEO 30 Years of Experience Appointed CEO in June 2010 Former CEO, President and Director of </p><p>IAMGOLD and Repadre Capital </p><p>Wendy Kaufman | CFO 20 Years of Experience Appointed CFO in September 2014 Former VP, Finance and Treasury of </p><p>Inmet Mining Corp. </p><p>Wade Nesmith | Chairman Founder of Primero Founding and current director of Silver </p><p>Wheaton </p><p>200+ Years of Combined Industry </p><p>Experience </p><p>Entrepreneurs </p><p>BOARD OF DIRECTORS </p><p>MANAGEMENT </p><p>David Demers | Director 2,3,4,5 Founder, CEO and Director Westport </p><p>Innovations Director of Cummins Westport and </p><p>Juniper Engines </p><p>Grant Edey | Director 3,5 President &amp; CEO, Khan Resources Former Director of Breakwater Resources, </p><p>Queenstake Resources, Santa Cruz Gold, CFO, IAMGOLD </p><p>Rohan Hazelton | Director 1 VP, Strategy, Goldcorp Formerly with Wheaton River and </p><p>Deloitte &amp; Touche LLP </p><p>Proven Track Record of Asset Turnaround </p><p>Capital Markets Expertise </p><p>Disciplined Approach to Business Development </p><p>Eduardo Luna | Director 1 Former Chairman and CEO of Silver </p><p>Wheaton, Executive VP of Goldcorp and Luismin (San Dimas) </p><p> Former President of Mexican Mining Chamber </p><p>Brad Marchant | Director 1 Co-founder of Triton Mining Corporation Founder of BioteQ Environmental </p><p>Technologies Inc. </p><p>Robert Quartermain | Director 2,3 Founder and President &amp; CEO, Pretium </p><p>Resources Former President of Silver Standard </p><p>Resources </p><p>Michael Riley | Director 2,5 Chartered accountant with more than 26 </p><p>years of accounting experience Chair of Primero Audit Committee </p><p>Board Committees: 1. Health, Safety and Environment 2. Human Resources 3. Governance and Nominating 4. Lead Director 5. Audit </p></li><li><p>TSX P I NYSE PPP I </p><p>1.9 </p><p>1.5 </p><p>1.1 </p><p>0</p><p>0.5</p><p>1</p><p>1.5</p><p>2</p><p>2011 2012 2013</p><p>Track Record of Delivering on Stakeholder Commitments </p><p>Primero All Injury Frequency Rate SHAREHOLDERS </p><p>Superior Value Creation </p><p>ENVIRONMENT </p><p>Certified Clean Industry </p><p>COMMUNITY </p><p>Awarded Socially Responsible Company </p><p>SAFETY Lowering All Injury Frequency Rate </p><p>11 </p><p>(100%)</p><p>(40%)</p><p>20%</p><p>80%</p><p>140%</p><p>Primero Mining Corp. S&amp;P/TSX Global Gold Index(Source Thomson One) </p><p>Delivering Superior Returns to Primero Shareholders </p><p>January 2012 to Present </p></li><li><p>TSX P I NYSE PPP I </p><p>o Commence expansion to 3,000 TPD o Increase access to high-grade </p><p>Victoria vein </p><p>o Implement 7 day, 12-hour shifts to optimize mine throughput </p><p>o Complete tunnels connecting Central Block to Sinaloa Graben, increasing efficiency and reducing costs </p><p>Location Mine Type Ownership </p><p>Durango, Mexico Underground, Gold &amp; Silver </p><p>100% (silver stream) 1 </p><p>Proven &amp; Probable Gold Reserves (koz) (4.9M tonnes at 5.5 g/t) </p><p>870 </p><p>Measured &amp; Indicated Gold Resources (koz) (Inclusive of Reserves) (4.3M tonnes at 7.2 g/t) </p><p>997 </p><p>Inferred Gold Resources (koz) (7.3M tonnes at 4.2 g/t) </p><p>998 </p><p>2015E Production1 (AuEq koz) 175-185 </p><p>2015E Cash Costs3 ($/AuEq oz) $590-$640 </p><p>2014 2015 2016 </p><p>o 23% increase in gold reserve grade o Mill expansion to 2,500 TPD </p><p>completed in Q1 </p><p>o Expanded top producing veins through successful exploration </p><p>o Discovered new high-grade veins o Achieved record production of </p><p>161,000 AuEq oz </p><p>o Complete expansion to 3,000 TPD o Increase mined grade to current gold </p><p>reserve grade of 5.5 g/t </p><p>World Class Platform Asset </p><p>12 </p><p>SAN DIMAS </p><p>*See final slide for footnotes. </p></li><li><p>TSX P I NYSE PPP I </p><p> -</p><p> 500</p><p> 1,000</p><p> 1,500</p><p> 2,000</p><p> 2,500</p><p> 3,000</p><p> 3,500</p><p>Q3 2010 Q3 2012 Q3 2014 Q3 2016E</p><p>*See final slide for footnotes. </p><p>Expansion to 3,000 TPD SAN DIMAS </p><p>Construction Mill expansion to 3,000 TPD began in Q1 2015 and is expected to be completed by Q2 2016 </p><p>Capital Cost Currently estimated at $26 million, including a 30% contingency After-tax IRR8 is expected to be 78% with a 12 month payback period9 </p><p>Production An estimated increase by more than 30% over 2014 to approximately 215,000 gold equivalent ounces </p><p>Cash Cost Expected to drop by ~$50 per ounce from current levels </p><p> 89% </p><p>GROWTH </p><p>San Dimas Mill Throughput (TPD) </p><p>13 </p></li><li><p>TSX P I NYSE PPP I </p><p>2015 Mine Expansion Plan </p><p>14 </p><p>SAN DIMAS </p><p>1600</p><p>1800</p><p>2000</p><p>2200</p><p>2400</p><p>2600</p><p>2800</p><p>3000</p><p>3200</p><p>tpd </p><p>Actual</p><p>Forecast</p><p>Mill Expansion </p><p>Base Production </p><p>Mine Production to 2,150 tpd </p><p>Mine Production to 2,500 tpd </p><p>Mill Expansion </p><p>2011 2012 2013 2014 2015 2016 </p><p>Mine Production to </p><p>2,900 tpd </p></li><li><p>TSX P I NYSE PPP I </p><p>Proven History of Reserve &amp; Resource Growth </p><p> 505</p><p> 660</p><p> 870</p><p> 577</p><p> 780</p><p> 997</p><p> 704</p><p> 762</p><p> 998</p><p>2011 2012 2013</p><p>P&amp;P Reserves ( Au Koz)</p><p>M&amp;I Resources (Au Koz)</p><p>Inferred Resources (Au Koz)</p><p>(M&amp;I Resources Include Mineral Reserves) </p><p>See slides 27, 28, 29, &amp; 30 </p><p>Significant Exploration Upside with Low Finding Costs o Completed 80,000 metres of drilling 2014, 2014 reserves and </p><p>resources to be released in Q1 2015 o 2015: $6.4 million, 25,000 metres of drilling </p><p>SAN DIMAS </p><p>Low Finding Cost Per Ounce </p><p>247 311 </p><p>$53.0 $34.7 </p><p>2012 2013</p><p>P&amp;P Reserves Discoverd (Koz Au)P&amp;P Discovery Cost(US$/oz Au)</p><p>15 </p></li><li><p>TSX P I NYSE PPP I </p><p>Note: Based on public data, average depth of listed mines is 1,633 metres. </p><p>Established Jurisdiction with Proven Depth Potential Over 200 Million Ounces of Historical Production </p><p>BLACK FOX </p><p>16 </p></li><li><p>TSX P I NYSE PPP I </p><p>o Continue building underground long-hole stope inventory </p><p>o Finalize mill and tailings optimization o Continue in-fill drilling of central </p><p>zone </p><p>o Goal of identifying resources to depth of 1,000 metres </p><p>2014 2015 2016 </p><p>o Completed acquisition and integration of Black Fox Complex </p><p>o Commenced optimization program, focused on cost reduction </p><p>o Increased efforts on underground exploration and development </p><p>o Discovered high-grade intercepts at depths up to 800 metres </p><p>o Review the concept of sinking a shaft to access deep mineralization </p><p>o Complete detailed economic analysis to potentially include Grey Fox as part of long term development at the Black Fox Complex </p><p>Turnaround Opportunity to Create Value BLACK FOX </p><p>Location Mine Type </p><p>Ownership </p><p>Timmins, Ontario Open-Pit &amp; Underground, Gold </p><p>100% (8% gold stream) 1 </p><p>Proven &amp; Probable Gold Reserves (koz) (3.8M tonnes at 4.3 g/t) </p><p>538 </p><p>Measured &amp; Indicated Gold Resources (koz) (Inclusive of Reserves) (4.0M tonnes at 5.1 g/t) </p><p>653 </p><p>Inferred Gold Resources (koz) (0.7M tonnes at 7.6 g/t) </p><p>168 </p><p>2015E Production1 (AuEq koz) 75-85 </p><p>2015E Cash Costs3 ($/AuEq oz) $820-$870 </p><p>17 *See final slide for footnotes. </p></li><li><p>TSX P I NYSE PPP I </p><p>Focused on Reserve &amp; Resource Development Lateral &amp; Depth Expansion </p><p>BLACK FOX </p><p>18 </p></li><li><p>TSX P I NYSE PPP I </p><p>Grey Fox Promising Exploration Project GREY FOX </p><p>o Completed 76,000 metres of drilling in 2014. </p><p>o Planned another 50,000 metres in 2015. </p><p>o Positive exploration results announced to date from underground and open pit targets. </p><p>o Further results pending. Location Ownership 4 km from Black Fox, Ontario 100% (no stream)</p><p>Measured &amp; Indicated...</p></li></ul>