A SCARCE ASSET IN A TRUE MINING DISTRICT March 2017
FORWARD LOOKING STATEMENT other unanticipated difficulties or interruptions; the possibility of cost overrun or This presentation of Guyana Goldfields Inc. (the "Company") contains statements that constitute "forward-looking statements." Such forward-looking unanticipated expenses in the work program; the risk of environmental statements involve known and unknown risks, uncertainties and other factors contamination or damage resulting from the Company's operations; risks that may cause our actual results, performance or achievements, or associated with title to mineral properties; and other risks and uncertainties developments in our industry, to differ materially from the anticipated results, discussed appear elsewhere in the Company's documents filed from time to time with the Toronto Stock Exchange and Canadian securities regulators. performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," These statements are based on a number of assumptions, including "aims," "plans," "anticipates," "believes," "intends," "estimates," "projects," assumptions regarding general market conditions, the availability of financing for "potential" and similar expressions, or that events or conditions "will," "would," proposed transactions and programs on reasonable terms, the cost of exploration and development and the ability of outside service providers to "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource and mineral reserve deliver services in a satisfactory and timely manner. Forward-looking statements estimates may also be deemed to be forward looking statements, as such are based on the beliefs, estimates and opinions of the Company's information constitutes a prediction of what might be found to be present when management on the date the statements are made. Except as expressly and if a project is actually developed. Forward-looking statements this document required by applicable securities laws, the Corporation undertakes no obligation to update these forward-looking statements in the event that management's include statements regarding: the Company's expectations regarding drilling and exploration activities on properties in which the Company has an interest; beliefs, estimates or opinions, or other factors, should change. and the Company's statements regarding estimates of reserves and resources on properties in which the Company has an interest. This presentation uses the terms "Inferred Resource", "Indicated Resource", “Measured Resource” and "Mineral Resource". The Company advises readers that although these terms are recognized and required by Canadian securities There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in regulations (under National Instrument 43-101 "Standards of Disclosure for such statements, and readers are cautioned not to place undue reliance on Mineral Projects"), the US Securities and Exchange Commission does not these forward-looking statements that speak only as of their respective dates. recognize these terms. Readers are cautioned not to assume that any part or all Important factors that could cause actual results to differ materially from the of the mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred Resources" have a great amount of uncertainty as to their Company's expectations include among others, risks related to fluctuations in mineral prices; uncertainties related to raising sufficient financing to fund existence, and economic and legal feasibility. It cannot be assumed that any planned work in a timely manner and on acceptable terms; changes in planned part of an Indicated or Inferred Mineral Resource will ever be upgraded to a work resulting from weather, logistical, technical or other factors; the possibility higher category. Under Canadian rules, estimates of Inferred Mineral Resources that results of work will not fulfill expectations and realize the perceived potential may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined and permitted under of the Company's properties; uncertainties involved in the estimation of resources and reserves; the possibility that required permits may not be National Instrument 43-101. Readers are cautioned not to assume that part or obtained on a timely manner or at all; the possibility that capital and operating all of an Inferred Resource exists, or is economically or legally mineable. The costs may be higher than currently estimated and may preclude commercial Mineral Resources stated in this presentation are not Mineral Reserves and, in development or render operations uneconomic; the possibility that the estimated the absence of a current feasibility study, do not demonstrate economic viability. The determination of Mineral Reserves can be affected by various factors recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or including environmental, permitting, legal, title, taxation, socio-political, and marketing issues. 2 www.guygold.com
INVESTMENT HIGHLIGHTS High grade +200 average koz/yr Au producer with +15 years reserve life with upside Simple metallurgy and mine plan, positive grade reconciliation to date A Scarce Asset Exceptional free cash flow generation No by-products 100% Pure Gold Minimal currency exposure Exposure Oil price hedged for the near term up to 2019 Organic Growth +20% annual production growth 2017 to 2018 via mill expansion from 5,600 – 8,000 tpd Strong Balance Cash position of US$73M vs. debt of US$78M as at Dec 31, 2016 Sheet +200,000 acre land package in highly prospective & underexplored greenstone belt District Potential Targeting open pit exploration targets within a 30km radius from Aurora Mill 3 www.guygold.com
WHAT STANDS US APART? Aurora is a High Grade Gold Mine Proven and Probable Reserves Grade – Precious Metals Only (g/t Au equivalent) 3.4 2.9 2.7 2.3 2.2 1.7 1.5 Median: 1.3 g/t 1.3 1.3 1.2 1.0 1.0 0.8 0.7 0.7 0.6 0.4 (1) (2) (3) SEMAFO Guyana Torex Alacer Primero Alamos OceanaGold B2Gold IAMGOLD Eldorado Tahoe Detour New Gold Kinross Centerra Silver Standard Yamana Source: Company filings and BMO Capital Markets Note: Includes precious metals, converted to AuEq grade using LT pricing of US$1,250/oz Au and US$18.00/oz Ag when not converted by the company. 4 www.guygold.com
2016 HIGHLIGHTS: An Impressive Year Achieved upwardly revised production guidance in first year of commercial production ! Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 2016 Guidance (ounces) 140,000 - 160,000 Gold Sold (ounces) 40,500 36,600 33,300 45,500 156,000 Gold Produced (ounces) 41,300 32,000 34,400 43,800 151,600 Average Realized Gold Price US$/ounce 1,196 1,269 1,334 1,204 1,245 Gross Revenue (US$ mlns) 48.5 46.4 44.4 54.8 194.2 Ore mined (tonnes) 553,600 623,400 642,200 688,000 2,507,200 Waste mined (tonnes) 1,409,300 1,076,700 1,315,100 1,899,800 5,700,900 Total Mined (tonnes) 1,962,900 1,700,100 1,957,300 2,587,800 8,208,000 Strip ratio (waste:ore) 2.5 1.7 2.0 2.8 2.3 Tonnes mined per day 21,600 18,700 21,300 28,100 22,400 Ore processed (tonnes) 462,600 427,700 491,200 507,500 1,889,000 Tonnes processed per day 5,100 4,700 5,300 5,500 5,200 Head grade g/t Au 3.07 2.61 2.42 2.94 2.74 Recovery (%) 89.2 91.1 88.7 90.6 90.2 Cash costs per ounce – before royalty¹ ($/ounce) 525 524 499 446 496 AISC¹ ($/ounce) 767 729 796 678 738 767 842 811 750 Cost of sales (prod, royalty and dep) ($/ounce) 789 5 www.guygold.com
2017 Guidance: Ramping up to 200koz/yr Producer 2017 Guidance (@ $1,200/oz) Gold production (000’s ounces) 160 - 180 Cost of sales (production costs, royalty and $800 - $850 depreciation) ($ per ounce) Cash cost¹, excluding royalty ($ per ounce) $500 - $550 All-in sustaining 1 (“AISC”) ($ per ounce) $775 - $825 • Due to mine sequencing gold production is expected to be slightly higher in the second half of the year relative to the first half. • Due to the timing of sustaining capital expenditures, AISC¹ are expected to be higher in the first half of the year relative to the second half. 1. This is a non-GAAP measure. Refer to non-GAAP Performance Measures section in the latest MD&A. 6 www.guygold.com
CONTINUING TO ACHIEVE NEW RECORDS: YTD 2017 Results Continuously Setting New Records ! January February TOTAL Gold Produced ounces 13,986 13,958 27,994 Ore Mined tonnes 157,693 181,538 339,231 Waste Mined tonnes 723,822 853,303 1,577,125 Total Mined tonnes 881,516 1,034,841 1,916,357 Tonnes mined per day tpd 28,436 36,959 32,481 Ore processed Tonnes 188,897 194,650 383,547 Tonnes processed per day tpd 6,093 6,952 6,501 Head grade g/t Au 2.62 2.67 2.65 Recovery % 90.0 90.8 90.3 7 www.guygold.com
Recommend
More recommend
