third quarter 2020 results · 2020. 11. 12. · third quarter 2020 results. november 12, 2020....

THIRD QUARTER 2020 RESULTSNovember 12, 2020

Lombardo Paredes, PresidentMike Davies, CFO

Exploring, Developing and Producing Gold in Historic Districts in the Americas1

Forward-Looking StatementsThis presentation of Caldas Gold Corp. (the “Company” or “Caldas”) is for information only and contains "forward-looking information", under applicable securities law, which mayinclude, but is not limited to, statements with respect to strategies, expectations, planned operations, future actions or the future financial or operating performance of the Company and itsprojects, and, specifically, statements concerning anticipated growth in annual gold production, the completion of anticipated financing and security offerings, the development of theMarmato Project including the building or expansion of any processing facilities or the achievement of future production levels, the exploration upside at Marmato, the anticipated cash flowand internal rate of return from expanding the Marmato Project, and the performance of the Company’s stock. Statements as to Mineral Reserves and Mineral Resources are further qualifiedby the language continued under “Technical Information” below. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments,performance or achievements that the Company anticipates or expects may or will occur in the future (in whole o in part) should be considered forward-looking information. Often, but notalways, 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 (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken,occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements ofCaldas to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differmaterially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's annual information form for the financial year endedDecember 31, 2019 dated as of August 17, 2020 and filed at www.sedar.com. Such factors are based on information currently available to the Company, including information obtainedfrom third-party industry analysts and other third-party sources, and are based on management’s current expectations regarding future growth, results of operations, future capital (includingthe amount, nature and sources of funding thereof) and expenditures. Forward-looking statements contained herein are made as of the date of this presentation and Caldas disclaims, otherthan as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimatesor opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially fromthose anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained in thispresentation is expressly qualified by the cautionary statement.

Technical InformationA Preliminary Feasibility Study is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferredmining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includesa financial analysis based on reasonable assumptions on any modifying factors and the evaluation of any other relevant factors which are sufficient for a Qualified Person, actingreasonably, to determine if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of reporting. A Preliminary Feasibility Study is at a lower confidence levelthan a Feasibility Study.

The Mineral Resources and Mineral Reserves described in this presentation were estimated using the Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) Standards on MineralResources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council and incorporated by reference inNational Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The Inferred MineralResource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. There is no certainty thatInferred Mineral Resources will be converted to the Measured and Indicated Resource categories through further drilling, or into Mineral Reserves, once economic considerations are applied.As such, readers are cautioned not to assume that part or all of an Inferred Mineral Resource exists, or is economically or legally mineable.

For all Marmato Project drilling results described in this presentation, verification by the Qualified Person included a review of the quality assurance and quality control samples, and reviewof the applicable assay databases and assay certificates. The core samples were prepared by SGS Laboratories Ltd (ISO 9001:2008) at their laboratory in Medellin, and assayed in theirlaboratory in Segovia, Colombia. Gold was assayed by 30 g fire assay with atomic absorption spectrophotometer (“AAS”) finish. Samples over 10.0 g/t gold were re-assayed by 30 g fireassay with gravimetric finish. Silver was assayed by aqua regia digestion and AAS finish. Blank, standard and duplicate samples were routinely inserted for quality assurance and qualitycontrol.

DISCLAIMERTSX-V: CGC

OCTQX: ALLXF

2

2020MILESTONES

FEB MAR APR MAY JUN

Completed RTO and Listed on the TSX-V (CGC)

Drilling Results at Marmato Prove the Down-Dip Extension of the Recently Discovered New Zone

During the COVID-19 pandemic, Caldas provided support to vulnerable low-income families in its local communities

Drilling Results at Marmato Extend the Strike of the Recently Discovered New Zone to More Than 400 Meters

Announced US$110 Million Precious Metals Stream with Wheaton Precious Metals on the Marmato Project; Launched Gold Notes and Concurrent Equity Financing to Fund the Marmato Project Expansion

CA$14 Million Private Placement With Gran Colombia to Fund JubyProject Acquisition

Shares begin trading on the OCTQX (ALLXF)

JUL

Juby Project Acquisition Closed on July 2, 2020

Announced PFS Results for MarmatoProject on July 6, 2020

Closed CA$50M bought deal of Special Warrants on July 29, 2020AUG SEP

Filed National Instrument 43-101 Technical Report for its Marmato Project in Colombia

Closed US$83 Million Private Placement of Subscription Receipts

TSX-V: CGCOCTQX: ALLXF

Completed Exercise of Special Warrants; Announces Listing of new Warrants (TSX-V: CGC.WT); Jeffrey Couch Appointed as Director

OCT

Filed National Instrument 43-101 Mineral Resource update for its Juby Project in Ontario, Canada

NOV

Announced Closing of the Precious Metals Stream with Wheaton Precious Metals on the Marmato Project

At Marmato, Extended Main Zone More than 300 Meters Along Strike; Announced Record Intercept of 5.73 g/t Au Over 63.20 Meters in New Zone

3


Protecting our Workforce and Supporting Vulnerable CommunitiesONGOING COVID-19 RESPONSE

Increased Security & Protection Protocols

Installation of Facial Recognition Technology

Employee Sanitization Stations

Donations of Protein Groceries

Sanitation Kits for First Responders

Collaboration with Local Economy to Sew and Donate Face Masks

4

Third Quarter and First Nine Months HighlightsRESULTS


(1) Refer to the Company’s MD&A for computation.

Third Quarter First Nine Months

2020 2019 2020 2019

6,899 6,221 Gold production (ozs) 16,651 18,693

$1,881 $1,467 Realized gold price ($/oz) $1,728 $1,357

$1,359 $1,163 Cash cost ($/oz) (1) $1,309 $1,131

$1,827 $1,254 AISC ($/oz) (1) $1,675 $1,210

$13.3M $10.0M Revenue $30.2M $25.8M

$2.4M $1.9M Adjusted EBITDA (1) $4.5M $4.1M

$(24.9)M $1.0M Net income (loss) $(49.4)M $2.1M

$(0.32) $0.03 Per share $(0.04) $0.07

$437K $971K Adjusted net income (loss) (1) $(2.1)M $2.1M

$0.01 $0.03 Per share $(0.04) $0.07

$4.0M $1.9M Operating Cash Flow $4.7M $3.2M

$5.3M $1.8M Capex and exploration $12.0M $4.4M

5

PROJECT FINANCING

CA$50 million bought deal offering of Special Warrants (1)

22,222,222 Special Warrants at CA$2.25 each.

Exercised on September 28, 2020 for one common share and one listed warrant (TSX-V: CGC.WT)Warrants exercisable at CA$2.75 per share, 5-year term and acceleration after 3 years.

US$83M of Subscription Receipts (2)Exchangeable into US$83M of Senior Secured Gold-Linked Notes

and 16.6M listed warrants on same terms as above.

Announced on November 11, 2020 that the Escrow Release Conditions have been met.Will be converted to Gold Notes on November 18, 2020.

(1) Refer to Company press releases dated July 29, 2020 and September 29, 2020.(2) Refer to Company press release dated August 26, 2020.

Net proceeds will be used to fund the Marmato Expansion Project


6

CAPITAL STRUCTUREWarrants

Listed (TSX-V: CGC.WT): 22.2 million @ CA$2.75 (2025 expiry)

Unlisted: 10.8 million @ CA$3.00 (2024 expiry)

Stock Options5.2 million @ CA$2.00 to CA$2.73 (2021-2025 expiry)

Broker Warrants0.1 million @ CA$2.00 (2022 expiry)

Subscription Receipts83,066 Units - exchangeable into US$83.1M Gold Notes plus

16.6 million additional CGC.WT Warrants

Common Shares

99.8 millionMarket Capitalization

CA$201.6 millionClose – November 10th: CA$2.0252 Week High: CA$3.0652 Week Low: CA$1.30


0

50,000

100,000

150,000

200,000

250,000

300,000

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

31-M

ar-2

05-

Apr

-20

10-A

pr-2

015

-Apr

-20

20-A

pr-2

025

-Apr

-20

30-A

pr-2

05-

May

-20

10-M

ay-2

015

-May

-20

20-M

ay-2

025

-May

-20

30-M

ay-2

04-

Jun-

209-

Jun-

2014

-Jun-

2019

-Jun-

2024

-Jun-

2029

-Jun-

204-

Jul-2

09-

Jul-2

014

-Jul-2

019

-Jul-2

024

-Jul-2

029

-Jul-2

03-

Aug

-20

8-A

ug-2

013

-Aug

-20

18-A

ug-2

023

-Aug

-20

28-A

ug-2

02-

Sep-

207-

Sep-

2012

-Sep

-20

17-S

ep-2

022

-Sep

-20

27-S

ep-2

02-

Oct

-20

7-O

ct-2

012

-Oct

-20

17-O

ct-2

022

-Oct

-20

27-O

ct-2

01-

Nov

-20

6-N

ov-2

0

Volume Close

7

External Validation from a World Class PartnerPROJECT FINANCING

Definitive agrrement (1) signed with Wheaton Precious Metals for US$110M precious metals stream to fund mine expansion at the Marmato Project.

6.5% and 100% of payable gold and silver delivered to Wheaton until 190koz and 2.5Moz of payable gold and silver delivered, stepping down to 3.25% and 50%

thereafter.

For each ounce of delivered gold and silver, Wheaton will make a cash payment to Caldas of 18% of spot gold and silver, increasing to 22% once the upfront deposit has

been reduced to nil.

(1) Refer to Company press release dated November 5, 2020.


8

Mine Expansion into the DEEP ZONEMARMATO PROJECT


9Source: Moon Patrol Video (2020)

Plan View of Marmato Deep ZoneMARMATO PROJECT


N

MT-IU-076

LEGENDIntercept Gold (Au) Grade (g/t)

> 3.02.5 – 3.02.0 – 2.5

MT-IU-073

MT-IU-070

MT-IU-068MT-IU-071-A

MT-IU-072

MT-IU-067

MT-IU-069

> 5.0 g/t Au

Block Model PFS (March) – Gold Grade (Au)

2.0 – 5.0 g/t Au

1.5 – 2.0

MT-IU-066

MT-IU-065

Record Intercept

Two wildcat holes exploring the Fortaleza Zone

north of the MDZ

MT-IU-067 extends the Main

Zone > 300 m along strike

10

Cross Section of the Relationship between the MZ and NZMARMATO PROJECT


* Offset 200 m

AA’Level 21

NESWLevel 20

MT-IU-076 MT-IU-073

MT-IU-070

LEGEND

Au Grade (g/t)< 1.7

1.7 – 2.02.0 – 2.52.5 - 3.0

Intercept

High Grade (HG)New Zone (NZ)

High-grade Zone at 1.7 g/t Au cut-off

Medium Grade (MG)

> 3.0

Main Zone

MT-IU-7663.20m @ 5.73 g/t Au

MT-IU-7333.77m @ 5.10 g/t Au

MT-IU-7048.70m @ 3.0 g/t Au

MT-IU-7360.70m @ 4.59 g/t Au

MT-IU-7339.04m @ 3.74 g/t Au

MT-IU-7325.08m @ 3.72 g/t Au

New Zone

Looking NW

11

Plan View Showing the Extension of the Main Zone Along StrikeMARMATO PROJECT


MT-IU-060

MT-IU-069

MT-IU-067

MT-IU-078

Breccia (BXH)

> 5.0 g/t Au

LEGEND


Au Grade (g/t)< 1.71.7 – 2.02.0 – 2.52.5 - 3.0> 3.0

Planned drill hole

Intercept

2.0 – 5.0 g/t Au

Deeps Main Zone High Grade (HG)Deep Main Zone A (MZA)Deep Main Zone B (MZB)Deep Main Zone C (MZC)

Planned StopesMT-IU-67 MZC27.35m @ 2.62 g/t Au

MT-IU-69 MZC41.65m @ 2.37 g/t Au

MT-IU-69 MZA23.51m @ 2.47 g/t Au

Drill hole completed (results pending)

Main Zone

12

Cross Section of the Two Exploration Holes in the Fortaleza ZoneMARMATO PROJECT


Level 20

MT-IU-068

Level 21

NESW

Main Zone

* Offset 20m MT-IU-071-A

A A’

> 5.0 g/t Au

LEGEND


Au Grade (g/t)< 1.71.7 – 2.02.0 – 2.52.5 - 3.0> 3.0

Intercept

2.0 – 5.0 g/t Au

Zone A (ZA)Zone B (ZB)

Vein

Level 19

MT-IU-71-A24.0m @ 2.27 g/t Au

MT-IU-6824.0m @ 1.77 g/t Au

MT-IU-71-A21.10m @ 2.18 g/t Au

MT-IU-6834.95m @ 1.60 g/t Au

13

Exploration PipelineJUBY PROJECT

Completed acquisition of 100% interest in July 2020.

Advanced exploration-stage gold project within the Shining Tree area in the southern part of the Abitibi greenstone belt.

Over 14,000 acres controlled through claims covering 10 km strike length on the mineralized trend.

Updated Mineral Resource estimate (“within pit”) of 773,000 ozsof Indicated (21.3 Mt @ 1.13 g/t) and 1,488,000 ozs of Inferred (47.1 Mt @ 0.98 g/) announced on October 5, 2020.

Preparing for a drilling program for execution in 2021.


14

HighlightsINVESTING IN CALDAS GOLD

Highly Attractive Project with Low Cost Position and High Margins

Funded with External Validation and Shareholder Support from Gran Colombia Gold

Strong Management with Experience Building Mines in Colombia

Commitment to ESG

Significant Exploration Upside in Historic Mining Districts

Equity Re-rating Potential in Current Gold Price Environment


15

For Further Information, Contact:

Mike DaviesChief Financial Officer

(416) [email protected]

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16

third quarter 2020 results · 2020. 11. 12. · third quarter 2020 results. november 12, 2020....

Documents