Primero Mining Q1 Results

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<ul><li>1.First Quarter 2011 Results TSX:PMay 17, 2011</li></ul> <p>2. Cautionary Statement TSX:PThis presentation may contain forward-looking statements within the meaning of Canadian securities legislation and the United States Private SecuritiesLitigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflectmanagements expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can beidentified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates orbelieves, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might, or will betaken, occur or be achieved, or the negative of these words or comparable terminology. By their very nature forward-looking statements involveknown and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from anyanticipated 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 innational and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessaryexploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors aredescribed in the Companys annual information form and will be detailed from time to time in the Companys continuous disclosure, all of which are, or willbe available, for review on SEDAR at presentation uses the terms measured resources, indicated resources and inferred resources. The Company advises readers that although theseterms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI43-101)),the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineraldeposits 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 fora Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economicallyor 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 anyobligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicablelaw. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially fromthose currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements.Unless otherwise indicated, all dollar values herein are in US$.2 3. Q1 2011 ResultsTSX:P1234563 4. Strong Financial PositionIncreasing Cash BalanceTSX:P $65IncreasedExchange TSX:P BALANCE SHEET at Mar 31, 2011million Cash Balance Cash$65 million Promissory note1 $50 million Convertible note2$60 million$90 Strong OWNERSHIPmillion3Operating Cash FlowGoldcorp 36% Management &amp; insiders~3% Institutional &amp; float ~61%$5PrudentCAPITAL STRUCTUREmillionShares outstandingrepayment per Level Of Debt88 million Fully Diluted117 million year Market Cap. At May 12, 2011 $410 million1. Goldcorp: 5 year, 6% note repaid $5M/yr with balloon payment at end of year 52. Goldcorp: 1 year, rolling, 3% note convertible at CDN$643. Estimated 5 year average after-tax cash flow based on Primeros five-year plan. 5. Financial ResultsTSX:P(US$ thousands, except per share amounts) Q1 2011Q1 2010Q4 2010Revenues 33,988 -41,425Earnings from Mine 10,912 -13,250OperationsEarnings (loss)(7,895) (318)6,893Earnings (loss) per share (0.09) (0.11)0.08Cash provided by (used in) 11,779(129) 11,517operating activities5 6. Operating Results TSX:P 1Q1 2011Q4 2010 Q3 2010 Increasing Throughput (tonnes per day) Throughput1,870 1,840 1,580 2,000 30tpd (tonnes per day) Gold equivalent production 24,100 24,800 21,800 1,500 (gold equivalent ounces) Gold production20,500 21,200 18,400 (ounces)1,000 Q3 2010Q4 2010Q1 2011 Silver production 1.23 1.211.01 (million ounces)Reducing Costs $ per AuEq ounce Gold grade4.03 4.014.03 (grams per tonne) Silver grade250236227$21$600 (grams per tonne)2 Cash cost$624 $645 $653 ($ per gold equivalent ounce)2 Cash cost by-product $491 $524 $552 ($ per gold ounce) $500Q3 2010Q4 2010Q 20111. The San Dimas mine was acquired by Primero on August 6, 2010. Operating data for Q3 2010 comprises results during Goldcorps ownership (July 1 Aug 5).2 .Cash cost is a non-GAAP measure. Refer to the first quarter 2011 MD&amp;A for a reconciliation of cash costs to operating expenses. 6 7. Production Guidance MaintainedTSX:P 3 2011EProduction up 15%Gold equivalent production110,000 - 120,000(gold equivalent ounces)Silver sold at spot partial Q2/Q3 Gold production90,000 - 100,000(ounces)Silver at spotDevelopment up 50%: (ounces) 500,000 750,000 $11.4 million or 8,900 metresTotal silver production4.5 5.0(million ounces)1Exploration doubled to $12 million: Cash cost gold equivalent $550 - $570($ per gold equivalent ounce) 54,000 metres diamond drilling 30% 1,2 more than 2010 levelsCash cost by-product$350 - $370($ per gold ounce) 3,800 metres exploration drifting Ten- fold increase over 2010 levels Capital Expenditures$31(millions)1. Cash cost is a non-GAAP measure.2. Cash costs (by-product) per gold ounce reported for San Dimas by Goldcorp Inc. are not comparable to Primero cash cost numbers due to certain inter-company transactions that are reversed for Goldcorp Inc.s consolidated reporting.3. 2011 forecasts assume an average gold price of $1,400 per ounce; an average silver price of $6.63 per ounce, as according to the silver purchase agreement the first 3.5 million ounces and 50% of the excess of silver are sold at $4.04 7 per ounce and the balance is sold at spot, which is assumed to be $24 per ounce. 8. San Dimas Growth ProfileCash Flow FundedTSX:P200 Estimated San Dimas Gold Equivalent Production1 (thousand gold equivalent ounces)180Sinaloa Graben160140120Central Block100806040Sta. Lucia20 Sta. Rita Tayoltita0 20102011E2012E 2013E1. Forecast production figures were calculated using the following metal prices: 2011: gold $1,400 per ounce; silver $24 per ounce; silver price received from Silver Wheaton $4.04 per ounce. 2012: gold $1,450 per ounce; silver $25 perounce; silver price received from Silver Wheaton $4.08 per ounce. 2013: gold $1,270 per ounce; silver $21 per ounce; silver price received from Silver Wheaton $4.12 per ounce.8 9. Disciplined StrategyTSX:PGROWTH OBJECTIVEGold Eq. ounces (000)LEADING MID-TIER1 GOLD PRODUCER400 Double San Dimas production by 20131 Additional exploration opportunity LATIN AMERICAN ACQUISITIONS3002 SAN DIMASACQUISITIONS Cash costs trending below $450 per AuEq oz1OPTIMIZATION200 Reduce taxes EXPLORATION3OPTIMIZATION100 Maintain balance sheet strength SAN DIMAS(GOLD EQUIVALENT OUNCES) Americas pro-mining jurisdictions only Committed to leading CSR programs0 2010 2011E2012E 2013E1. See Primero Press Release of January 17, 2011.9 10. Silver AgreementIncreased Revenue, Tax Impact RemainsTSX:PAmended Agreement Anniversary August 6 First 3.5 million oz annual Ag production plus 50% of excess sold to SLW at ~$42010-2014 50% of annual Ag production above 3.5 million oz sold at spot First 6 million oz annual Ag production plus 50% of excess sold to SLW at ~$42015-LOM 50% of annual Ag production above 6 million oz sold at spot Silver Agreement Impacts on PrimeroDisproportionate Tax: Estimated Quarterly Variation In Revenues1Primero currently pays tax on silver at spotQuarterly Volatility:Anniversary August 6, not calendar year1. UBS Research, Higher sales leads to a strong Q4 result, February 2011. Assumes flat gold ($1,400/oz) and silver ($30/oz)10 11. Silver Tax Mitigation StrategyTSX:P12320114ongoing511 12. San DimasLong Life, High-Grade TSX:PPRIMEROS GOLD RESERVES &amp; RESOURCES0.9M 4.7ozs Gold Reserves grams per tonne grade DoloresMulatosPinos Altos Ocampo2.0M 3.7ozs Gold Inferred Resources grams per tonne gradeEl SauzalLa Cienega Penasquito Durango MazatlanPRIMEROS SILVER RESERVES &amp; RESOURCESSan Dimas63Mozs Silver Reserves332grams per tonne gradeGold-Silver MineDURANGO MEXICOVentanasExploration Property179M 330DURANGO MEXICOozs Silver Inferred Resources grams per tonne grade12 13. District Wide Potential Longitudinal Section TSX:PSan Antonio Sinaloa Graben Central Block Tayoltita Block AranaMined 1987-2002 Mined 2002-Current Mined 1975-2002 2011 EXPLORATION Hanging Wall West Block PRIORITYSWNE3,000 m. 6.8 4.73,000 m. g/t average grade g/t average grade2,000 m. 3 811.5 2,000 m. m average width m average width1,000 m. 1,000 m. Source: San Dimas Geology OfficeMineralization Ore BodiesExtension of the Favorable Horizon01 2Favorable Horizon PotentialK I L O M E T E R S1. Indicative of exploration results to date 13 14. Sinaloa Graben Key to GrowthHigher Grade &amp; WiderTSX:PSinaloa Central Block Tayoltita Block Arana Hanging WallSan Antonio West Block GrabenDevAg g/t Au g/t m Block 1. RAMP7-129W 1,115 10.30 2.75RAMP8-129E 2,05422.8 3.207 RAMP8-129E 1,44914.0 4.20DDHAg g/t Au g/t mSANVICENTE2. TGS-S-22 958 6.81 8.56TGS-S-15 403 8.08 7.52Santa Rita 3. PIL 7-01 508 16.0 2.9064. SOL-9-02 549 10.67 1.81mine 5. MAR-9-17 514 8.86 2.45 6. RO-20-05 514 4.23 1.2757. A-25-217(1)778 7.9 0.803 4 HW-4G-01B302 8.7 0.60 TAYOLTITA LEGEND2 TOWN &amp; MILL1 Ag-Au HighGrade TrendSan Antonio Proposed Tunnel mineTunnel 2011Tunnel doneVein NFaultTown 0 12 km Piaxtla River (Source: San Dimas Geological Office)14 15. Sinaloa Graben (Elia Vein) Sinaloa Graben Key to Growth Higher Grade &amp; Wider TSX:P15 16. Optimization &amp; Expansion PlanTSX:PINCREASE MINE DEVELOPMENTKey to production growthOPERATE MILL AT DESIGN CAPACITYCurrent:~1,890 tpd, Design: 2,100 tpdEXPAND MILL TO 2,500 TPD BY 2013Mill: 2,100 tpd, Leach: 2,500 tpdPOTENTIAL EXPANSION BEYOND 2,500 tpd2011 review16 17. 2011 ObjectivesTSX:P COMMENCED ON-TRACK ON-TRACK ON-TRACK ON-GOINGQ3Q4Q117 18. PRIMERO MINING CORP.Richmond Adelaide Centre INVESTOR RELATIONS120 Adelaide Street West, Suite 1202 Tamara BrownToronto, ON M5H 1T1Vice President, Investor RelationsT 416 814 3160 F 416 814 3170T 416 814 3168TF 877 619 3160tbrown@primeromining.comFirst Quarter 2011 Results </p>