AND YEAR END RESULTS March 7, 2019 PG:TSX www.premiergoldmines.com - - PowerPoint PPT Presentation
AND YEAR END RESULTS March 7, 2019 PG:TSX www.premiergoldmines.com - - PowerPoint PPT Presentation
2018 FOURTH QUARTER AND YEAR END RESULTS March 7, 2019 PG:TSX www.premiergoldmines.com Disclaimer This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities
Disclaimer
This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the Company’s achievement of the full-year projections for ounce production, production costs, AISC costs per ounce, cash cost per ounce and realized gold/silver price per ounce, the Company’s ability to meet annual operations estimates, and statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this Presentation is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This presentation has been completed by Premier. Certain corporate projects referred to herein are subject to agreements with third parties who have not prepared, reviewed nor approved this
- presentation. The presentation is not intended to reflect the actual plans or exploration and development programs contemplated for such projects.
Please refer to Appendix A-3 for cautionary notes on non IFRS measures and production guidance. Forei eign Exchange As Assump umptions
- ns
Effective January 1, 2018, the Company has changed its presentation currency to U.S. dollars. This change is applied retroactively to restate comparative financial statements. Unless otherwise stated, all amounts discussed herein are denominated in U.S. dollars. This Accounting policy change is discussed in Note 2(f) to the December 31, 2018 audited consolidated financial statements of the Company. Ca Caut ution
- nary Notes to
to Inve nvestors - Reser erve and nd Resour
- urce Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed this Presentation have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered. Premier is not aware of any environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource estimate. The scientific and technical information contained in this Presentation has been reviewed by Stephen McGibbon, P. Geo., (Executive VP Corporate and Project Development) and a Qualified Person within the meaning of National Instrument 43-101. For further information on the technical data provided in this Presentation, including the key assumptions underlying the mineral resource herein, refer to the Sedar filings as listed below: No Note e Proj Projec ect/P /Prop
- per
erty Com
- mpany
Date
(1) Hasaga Premier Gold Mines Limited December 30, 2016 (2) Hardrock Property Premier Gold Mines Limited December 21, 2016 (3) McCoy-Cove Premier Gold Mines Limited June 29, 2018 (4) Mercedes Premier Gold Mines Limited April 18, 2018 2
Management Participants
3
Ewan Downie – President & Chief Executive Officer Steve Filipovic – Chief Financial Officer Brent Kristof– Senior Vice-President – Operations
Building a Mining Business
See Disclaimer page for notes and forward-looking statements. See the Company’s December 31, 2018 audited consolidated financial statements and 2018 year end MD&A. 4
- 100% North American focus
- World-class mining districts
- Safe jurisdictions
- Sensible partnerships
- Low-cost production:
- 2 mining operations
- 4 advanced-stage projects:
- El Niño, Nevada
- P1 pit, Nevada
- Cove, Nevada
- Hardrock, Ontario
- Strong treasury
- $43.9M (December 31, 2018)
- Q1-2019 – completed $18.3M
financing/silver stream as well as US$50M revolver
- Focus on exploration to grow
reserves and resources
Delivering a Production Pipeline
Production Exploration/Development South-Arturo McCoy-Cove Rye-Goldbanks Greenstone Gold Hasaga Rahill-Bonanza Mercedes
Building a Mining Business
Reserve & Resource Growth and Replacement
See Disclaimer page for notes and forward-looking statements 5
Gold Ounces (000’s)
- 500
1,000 1,500 2,000 2,500 3,000 3,500 4,000 2015 2016 2017 2018 Gold Ounces Tonnes (Mt) Grade (g/t Au) Tonnes (Mt) Grade (g/t Au) Tonnes (Mt) Grade (g/t Au) Tonnes (Mt) Grade (g/t Au) P+P 0.86 1.08 74.42 1.17 76.77 1.22 77.08 1.21 M+I 55.91 1.77 66.10 1.44 74.57 1.48 76.12 1.46 Inferred 16.38 3.69 42.10 1.94 44.41 2.50 44.96 2.47
Mining Operations
See Disclaimer page for notes and forward-looking statements 6
- Sou
South Art Arturo: : 2 new mining operations in construction
- Mer
ercedes: s: Achieving sustainable production, replacing reserves & resources
So Sout uth Art Arturo, Ne Nevada
- Construction of Phase 1 Open Pit & El Niño U/G mines underway
- Phase 3 & East Dee offer future production opportunities
- Refining potential heap leach mining option
Mer Mercedes, Me Mexic ico
- Achieving sustainable production levels with low operating costs
- 2019 drill program targeting resource and reserve replacement
- Complete underground definition drill program at Marianas
Focused on Quality Production
PROPERTY Gold (Au ozs) Silver (Ag ozs) Cash Costs ($/oz Au) AISC ($/oz Au) Mercedes 75,000 - 85,000 225,000 - 250,000 730 - 780 900 - 950 TOTAL 75, 75,00 000 – 85, 85,000 00 225, 225,000 0 - 250, 250,00 000 730 730 - 780 780 900 900 - 950 950
*Premier’s proportionate share of development capital at South Arturo for 2019 (excluding proceeds from pre- commercial production gold sales) is $39 million. Proceeds from pre-commercial production gold sales will be credited against development capital.
20 2019 19 Prod
- ductio
ion Gui uidance 20 2019 19 Pre-Commercial l Prod
- ductio
tion*
PROPERTY Gold (Au ozs) South Arturo 5,000 - 10,000 TOTAL 5, 5,000 000 - 10, 10,00 000
Q4 & Full Year 2018 Operating Performance
Q4 Operational Results
- Production of 23,042 ounces of gold and 120,730 ounces of silver
- Cash costs of $619 per ounce of gold sold (reduction of 28% vs Q3 2018)
- AISC of $798 per ounce of gold sold (reduction of 21% vs Q3 2018)
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for Non IFRS measures statement. See the Company’s December 31, 2018 audited consolidated financial statements and 2018 year end MD&A.
Thre hree e mont
- nths
s ended nded Decem ember er 31 Yea ear ended nded Decem ember er 31 (in millions of U.S. dollars, unless otherwise stated) (iv) 201 018 201 017 201 018 201 017 Ore milled tonnes 188,444 227,353 861,058 1,074,426 Gold produced
- unces
23,042 24,385 89,699 139,658 Silver produced
- unces
120,730 77,082 321,814 357,901 Gold sold
- unces
15,653 23,000 87,036 155,727 Silver sold
- unces
90,135 77,096 299,819 338,831 Re Realized d Pri rice (2017 as restated) (iii) Average realized gold price (i,ii) $/ounce 1,250 1,265 1,264 1,254 Average realized silver price (i,ii) $/ounce 15 16 16 17 No Non-IFRS S Per erfor
- rmance
e Mea easure res Co-product cash costs per ounce of gold sold (i,ii) $/ounce 619 665 788 524 Co-product all-in sustaining costs per ounce of gold sold (i,ii) $/ounce 798 792 927 627 Co-product cash costs per ounce of silver sold (i,ii) $/ounce 10 10 10 9 Co-product all-in sustaining costs per ounce of silver sold (i,ii) $/ounce 13 11 13 11 By-product cash costs per ounce of gold sold (i,ii) $/ounce 591 643 771 508 By-product all- in sustaining costs per ounce of gold sold (i,ii) $/ounce 785 775 917 615
(i) A cautionary note regarding Non-IFRS financial metrics is included in the "Non-IFRS Measures" section of the 2018 Year End Management's Discussion and Analysis.
(ii) Cash costs, all-in sustaining costs, free cash flow, EBITDA, adjusted EBITDA, adjusted earnings / (loss) per share, sustaining and expansionary capital expenditures as well as average realized gold\silver price per ounce are Non-IFRS metrics and discussed in the section "Non-IFRS Measures" of 2018 Year End Management's Discussion and Analysis.
(iii) 2017 restated for the presentation currency change as discussed in the "Critical Accounting Judgements and Estimates, Policies and Changes" section of the 2018 Year End Management's Discussion and Analysis. (iv) May not add due to rounding.
Q4 & Full Year 2018 Operating Performance
Q4 Financial Results
- Revenue of $19.9 million
- Mine operating income of $6.1 million
- Net loss of $8.9 million
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for Non IFRS measures statement. See the Company’s December 31, 2018 audited consolidated financial statements and 2018 year end MD&A.
Thre hree e mont
- nths
s ended nded Decem ember er 31 Yea ear ended nded Decem ember er 31 (in millions of U.S. dollars, unless otherwise stated) (iv) 2018 018 2017 017 2018 018 2017 017 Fina nanci cial Mea easu sures es (2017 as restated) (iii) Gold revenue m $ 19.4 29.0 109.6 194.6 Silver revenue m $ 0.5 1.3 4.2 5.7 Total revenue m $ 19.9 30.2 113.9 200.3 Mine operating income m $ 6.1 7.2 16.5 64.0 Net income / (loss) m $ (8.9) (3.6) (20.4) 16.2 Earnings / (loss) per share /share (0.04) (0.02) (0.10) 0.08 Adjusted earnings / (loss) per share (i,ii) /share (0.00) (0.02) (0.06) 0.08 EBITDA (i,ii) m $ (5.4) 5.7 9.3 80.4 Adjusted EBITDA (i,ii) m $ 2.9 5.7 17.6 80.4 Cash & cash equivalents balance m $ 43.9 103.0 43.9 103.0 Cash flow from operations m $ (7.5) (0.1) (10.7) 64.0 Free cash flow (i,ii) m $ (14.5) (5.4) (37.6) 42.4 Exploration, evaluation & pre-development expense m $ 4.4 5.7 22.2 26.3 Capital (2017 as restated) (iii) Total capital expenditures m $ 7.0 5.1 26.9 21.6 Capital expenditures - sustaining (i,ii) m $ 1.6 1.3 7.0 9.6 Capital expenditures - expansionary (i,ii) m $ 5.4 3.8 19.9 12.0
(i) A cautionary note regarding Non-IFRS financial metrics is included in the "Non-IFRS Measures" section of the 2018 Year End Management's Discussion and Analysis.
(ii) Cash costs, all-in sustaining costs, free cash flow, EBITDA, adjusted EBITDA, adjusted earnings / (loss) per share, sustaining and expansionary capital expenditures as well as average realized gold\silver price per ounce are Non-IFRS metrics and discussed in the section "Non-IFRS Measures" of 2018 Year End Management's Discussion and Analysis.
(iii) 2017 restated for the presentation currency change as discussed in the "Critical Accounting Judgements and Estimates, Policies and Changes" section of the 2018 Year End Management's Discussion and Analysis. (iv) May not add due to rounding.
Full Year Financial Results
- Revenue of $113.9 million
- Mine operating income of $16.5 million
- Net loss of $20.4 million
- Two new mining projects under construction – Phase 1 open
pit and El Niño underground mine
- ROM heap leach material and Phase 3 open pit option being
assessed for future production
- Continued exploration to achieve long-term production
- Acquired adjoining Rodeo Creek Property with exploration
program beginning in H1- 2019
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for “Non IFRS Measures, Production Guidance” for complete production guidance and Appendix A-4 “Global Mineral Reserves and Resources” for Reserves & Resources. 9
Overview & Highlights
Key Metrics
Mine Ownership Premier Gold 40% Barrick Gold 60% Mine Type Open Pit & Underground Processing Roaster (Goldstrike) 2019 Pre- Commercial Production* 5,000 – 10,000 ozs Au
South Arturo Mine, Nevada Reserves & Resources
PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES
Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Stockpile 0.18 1.98 11
- 0.18
1.98 11 OP 1.32 3.32 141 1.27 2.33 95 2.59 2.84 236 UG 0.01 13.61 2 0.07 11.08 25 0.08 11.24 27 tot
- tal
1. 1.51 51 3. 3.19 19 154 154 1. 1.34 34 2. 2.79 79 120 120 2. 2.84 84 3. 3.01 01 275 275
MEASURED RESOURCES INDICATED RESOURCES INFERRED RESOURCES
Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Stockpile 0.12 0.97 4
- OP
2.28 1.05 77 6.78 0.99 217 0.69 0.44 10 UG 0.002 12.11 1 0.03 10.04 11 0.07 9.73 22 tot
- tal
2. 2.40 40 1. 1.06 06 82 82 6. 6.82 82 1. 1.04 04 228 228 0. 0.76 76 1. 1.30 30 32 32 *Premier’s proportionate share of development capital at South Arturo for 2019 (excluding proceeds from pre-commercial production gold sales) is $39 million. Proceeds from pre-commercial production gold sales will be credited against development capital.
South Arturo Mine, Nevada
Q4 Operational Results
- Production of 577 ounces of Gold
- Cash costs of $385 per ounce of gold sold
- AISC of $678 per ounce of gold sold
.
(i) A cautionary note regarding Non-IFRS financial metrics is included in the "Non-IFRS Measures" section of the 2018 Year End Management's Discussion and Analysis.
(ii) Cash costs, all-in sustaining costs, free cash flow, EBITDA, adjusted EBITDA, adjusted earnings / (loss) per share, sustaining and expansionary capital expenditures as well as average realized gold\silver price per ounce are Non-IFRS metrics and discussed in the section "Non-IFRS Measures" of 2018 Year End Management's Discussion and Analysis.
(iii) 2017 restated for the presentation currency change as discussed in the "Critical Accounting Judgements and Estimates, Policies and Changes" section of the 2018 Year End Management's Discussion and Analysis. (iv) May not add due to rounding.
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for Non IFRS measures statement. See the Company’s December 31, 2018 audited consolidated financial statements and 2018 year end MD&A
Full Year Operational Results
- Production of 20,980 ounces of Gold
- Cash costs of $419 per ounce of gold sold
- AISC of $478 per ounce of gold sold
Thre hree e mont
- nths
s ended nded Decem ember er 31 Yea ear ended nded Decem ember er 31 (in millions of U.S. dollars, unless otherwise stated) (v) 2018 018 2017 017 2018 018 2017 017 Ore Ore & Metals Ore milled tonnes 5,286 44,883 195,536 390,881 Gold produced
- unces
577 4,472 20,980 57,124 Gold sold
- unces
1,280 5,882 21,276 70,442 Silver produced
- unces
1,691
- 12,649
19,918 Average gold grade grams/t 4.14 3.75 3.97 5.22 Average gold recovery rate % 82.2 82.7 84.1 87.0 Re Realized d Pri rice (2017 as restated) (iv) Average realized gold price (i,ii) $/ounce 1,279 1,287 1,305 1,253 No Non-IFRS S Per erfor
- rmance
e Mea easure res Co-product cash costs per ounce of gold sold (i,ii) $/ounce 385 386 419 304 Co-product all-in sustaining costs per ounce of gold sold (i,ii) $/ounce 678 497 478 351 By-product cash costs per ounce of gold sold (i,ii,iii) $/ounce 385 386 419 304 By-product all-in sustaining costs per ounce of gold sold (i,ii,iii) $/ounce 678 497 478 351 Fina nanci cial Mea easu sures es (2017 as restated) (iv) Gold revenue m $ 1.6 7.6 27.8 88.2 Mine operating income m $ 0.8 (0.4) 12.5 29.7 Exploration, evaluation & pre-development expense m $ 0.2 0.3 1.3 0.8 Capital (2017 as restated) (iv) Total capital expenditures m $ 3.6 0.6 8.4 1.2 Capital expenditures - sustaining (i,ii) m $ 0.0 0.3 0.0 0.4 Capital expenditures - expansionary (i,ii) m $ 3.6 0.3 8.4 0.8
- Core land position in one of the most sought
after gold districts in the world
- South Arturo Phase 2 pit was one of the
lowest cost operations in the world with 2017 AISC of US$351 /oz
- Several upside opportunities:
- El Niño u/g deposit
- Phase 3 pit
- Potential for ROM heap leach
- East Dee deposit
- Exploration targets
- Partnership with Barrick has led to additional
strategic
- pportunities
(McCoy-Cove JV; custom processing arrangement for refractory ore, Rye Property acquisition)
- Option on Rodeo Creek (100% PG)
grows Premier’s land position in this prolific district
World Class Gold District
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for Non IFRS Measures and complete production guidance. 11
Strategic Project on the Carlin Trend
See Disclaimer page for notes and forward-looking statements. 12
Multiple Development Opportunities
Phas ase e 1 Phas ase e 3 Phas ase e 2 El Ni Niño ño Un Under dergr grou
- und
nd Isom
- met
etric view look
- king
ng No North
Phase 1 Open Pit Project
- Construction underway
- ROM heap leach project continues
to be advanced with material being stockpiled during P1 mining with the potential to increase mineral reserves and resources
- East Dee and South Hinge targets
could offer significant upside (East Dee drilled in 2018) El Niño Underground Project
- Ramp construction underway
- Highlight drill results:
- EL
EL17 17-10 10: 68 68.6 m at at 15 15.92 92 g/t Au Au
- EL
EL17 17-12 12: 45 45.7 m at at 21 21.68 68 g/t Au Au
- Targeted
as a multi-year mining operation and remains
- pen
along strike and at depth Phase 3 Open Pit Project
- Targeted as the next phase of
mining at South Arturo
- Highlight drill results:
- ART17
17-01 01C: 52 52.7 m at at 7.90 90 g/t /t Au Au
- ART17
17-04 04C: 79 79.7 m at at 5.18 18 g/t /t Au Au
- ART17
17-10 10C: 35 35.7 m at at 16 16.54 54 g/t /t Au Au Phas Phase 1 1 Ope pen Pi Pit t Con
- nstructio
tion El El Ni Nino Unde Underground Mine Con
- nstr
tructio ion
East ast Dee
BD18-08C 21.3 m of 6.52 g/t Au BD18-05C 25.9 m of 5.84 g/t Au
- Major developments in 2018:
- Advanced Diluvio and Rey de Oro into 2018 mine plan
- Drift to Marianas deposit for commencement of u/g drilling
- Completed construction and commissioning of a new tailings facility
- ~40,000 meters of drilling - delineation & exploration
- Major programs in 2019 to include delineation of Marianas for inclusion
in reserves and testing multiple new exploration targets
See Disclaimer page for notes and forward looking statements See Appendix for “Non IFRS Measures” complete production guidance and mineral resource/mineral reserve parameters 13
Overview & Highlights
Key Metrics
Mine Ownership Premier Gold 100% Mine Type Underground Plant Throughput Capacity 2,000 tpd 2019 Production 75,000 – 85,000 ozs Au 225,000 – 250,000 ozs Ag 2019 Cash Cost US$730-780 /oz Au 2019 AISC US$900-950 /oz Au
Mercedes Mine, Mexico Reserves & Resources
PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES
Tonnes (kt) Grade (g/t Au) Au Ounces (000's) Tonnes (kt) Grade (g/t Au) Au Ounces (000's) Tonnes (kt) Grade (g/t Au) Au Ounces (000's) 193.20 9.01 56 3,190.22 3.31 339 3,383.42 3.63 395
MEASURED RESOURCES INDICATED RESOURCES INFERRED RESOURCES
Tonnes (kt) Grade (g/t Au) Au Ounces (000's) Tonnes (kt) Grade (g/t Au) Au Ounces (000's) Tonnes (kt) Grade (g/t Au) Au Ounces (000's) 253.39 3.33 27 3,001.26 3.41 329 1,720.17 4.18 231
Mercedes Mine, Mexico
Q4 Operational Results
- Production of 22,465 ounces of Gold
- Cash costs of $639 per ounce of gold sold
- AISC of $808 per ounce of gold sold
.
(i) A cautionary note regarding Non-IFRS financial metrics is included in the "Non-IFRS Measures" section of the 2018 Year End Management's Discussion and Analysis.
(ii) Cash costs, all-in sustaining costs, free cash flow, EBITDA, adjusted EBITDA, adjusted earnings / (loss) per share, sustaining and expansionary capital expenditures as well as average realized gold\silver price per ounce are Non-IFRS metrics and discussed in the section "Non-IFRS Measures" of 2018 Year End Management's Discussion and Analysis.
(iii) 2017 restated for the presentation currency change as discussed in the "Critical Accounting Judgements and Estimates, Policies and Changes" section of the 2018 Year End Management's Discussion and Analysis. (iv) May not add due to rounding.
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for Non IFRS measures statement. See the Company’s December 31, 2018 audited consolidated financial statements and 2018 year end MD&A
Full Year Operational Results
- Production of 68,719 ounces of Gold
- Cash costs of $908 per ounce of gold sold
- AISC of $1,073 per ounce of gold sold
Three mo month ths ended d December 31 Year r ended Decembe ber r 31 (in millions of U.S. dollars, unless otherwise stated) (iv) 2018 2018 2017 2017 2018 2018 2017 2017 Ore milled tonnes 183,158 182,470 665,522 683,545 Gold produced
- unces
22,465 19,913 68,719 82,534 Silver produced
- unces
119,039 77,082 309,165 337,983 Gold sold
- unces
14,373 17,119 65,760 85,285 Silver sold
- unces
90,135 77,096 299,819 338,831 Average gold grade grams/t 3.96 3.52 3.34 3.93 Average silver grade grams/t 44.78 33.95 35.34 37.63 Average gold recovery rate % 96.3 96.5 96.0 95.6 Average silver recovery rate % 45.2 38.7 40.9 40.9 Re Realize zed Price (2017 as restated) (iii) Average realized gold price (i,ii) $/ounce 1,247 1,258 1,251 1,254 Average realized silver price (i,ii) $/ounce 15 16 16 17 No Non-IF IFRS Perform rmanc nce Me Measure ures Co-product cash costs per ounce of gold sold (i,ii) $/ounce 639 760 908 706 Co-product all-in sustaining costs per ounce of gold sold (i,ii) $/ounce 808 894 1,073 854 Co-product cash costs per ounce of silver sold (i,ii) $/ounce 10 10 10 9 Co-product all-in sustaining costs per ounce of silver sold (i,ii) $/ounce 13 11 13 11 By-product cash costs per ounce of gold sold (i,ii) $/ounce 609 731 885 676 By-product all-in sustaining costs per ounce of gold sold (i,ii) $/ounce 795 871 1,060 832 Financ ncial Me Measure ures (2017 as restated) (iii) Gold revenue m $ 17.8 21.4 81.9 106.4 Silver revenue m $ 0.5 1.3 4.2 5.7 Total revenue m $ 18.2 22.7 86.1 112.1 Mine operating income / (loss) m $ 5.3 7.6 4.1 34.3 Exploration, evaluation & pre-development expense m $ 0.0 0.3 1.3 1.1 Capita pital (2017 as restated) (iii) Total capital expenditures m $ 3.1 3.0 17.4 18.2 Capital expenditures - sustaining (i,ii) m $ 1.6 1.1 7.0 9.2 Capital expenditures - expansionary (i,ii) m $ 1.6 1.9 10.4 9.0
Reserve Growth & Quality Production
See Disclaimer page for notes and forward-looking statements 15
Resources Identified in Four Main Zones
- Mercedes (Corona de Oro)
- Barrancas - Lagunas (Future access to Marianas)
- Klondike - Rey De Oro (RDO development underway)
- Lupita - Diluvio (Both now developed)
Exploration Opportunity
- District-wide exploration target studies have identified ~45 km of
untested structures
- Limited drilling completed outside of existing resource areas
- District has excellent potential to host additional vein systems
- Primary targets for reserve and resource definition in 2018
include Aida, Rey de Oro, Diluvio/Lupita
- Exploration drilling has identified prospective new vein horizons
at Marianas, Reyna, Zorillo and 500 de Plata
Zorillo Reyna Poncheña
Diluvio Lupita Rey de Oro Klondike Marianas Lagunas Barrancas Aida
La 500 de Plata
Mercedes Gap
16
Marianas Zone – Underground Development
Mercedes Mine, Mexico
~2 ~250 50m (Perspecti tive vie iew look
- oking no
northeast) Historic surface drilling
Lagunas Gap Barrancas Marianas
1200 m 900 m 600 m 300 m 16
- Marianas represents the down-plunge extension of the higher-grade, main Mercedes mine trend
- Previous drilling returned multiple intercepts suggesting a zone containing higher than current reserve grades
- Deposit remains open in multiple directions and represents one of the primary exploration targets at Mercedes
- Current 20,000m drill program designed to upgrade Marianas to reserves in 2019
- Recent intersections:
UG-MR19-007 - 21.35m @ 4.51 g/t Au, 64.09 g/t Ag incl 4.58m @ 11.04 g/t Au, 94.0 g/t Ag UG-MR19-006 - 3.05m @ 7.87 Au g/t, 54.07 Ag g/t
See Disclaimer page for notes and forward-looking statements.
M-639 3.0 m of 12.69 g/t Au Au M-710 5.1 m of 12.21 g/t Au M-655 4.9 m of 17.52 g/t Au UG-MR19-007 21.35 m @ 4.51 Au g/t, 64.09 Ag g/t UG-MR19-006 3.05 m @ 7.87 Au g/t, 54.07 Ag g/t
Advanced Exploration/Development
See Disclaimer page for notes and forward-looking statements and the Company’s December 31, 2018 audited consolidated financial statements and year ended 2018 MD&A for cautionary notes on Non-IFRS measures. 17
Organic Growth: One Pipeline - Two Projects
- Advancing permitting to develop two new mines in North America
- Cove: Battle Mountain Trend – Nevada, USA
- Greenstone Gold: Beardmore-Geraldton Camp – Ontario, Canada
Co Cove, Ne Nevada
- Permitting for production - hydrological flow-testing
- Preliminary Economic Assessment completed in 2018
- Drill program underway to test / define multiple targets
- Advance towards completing Feasibility Study for future production
Gr Greenstone Go Gold, d, On Ontario io
- EA and EIS have been submitted to regulatory agencies
- Federal EA approval received in Dec 2018
- Provincial EA approval expected in H1-2019
- Continued consultation with local communities
- Centerra sole-funding with $71.2M (CA$92.3M) remaining at Y-E 2018
Exploration
See Disclaimer page for notes and forward-looking statements. See Appendix A-3 for “Non IFRS Measures, Production Guidance” for complete production guidance and Appendix A-4 “Global Mineral Reserves and Resources” for Reserves & Resources. 18
Defining the Mines of Our Future
- Defining future resources through sustained exploration focus
- Excellent potential for new discoveries in prolific gold districts
Red ed La Lake, On Ontario io
- Red Lake has seen continuous production since the mid 1920’s with
nearly 30 Mozs of gold produced at an average grade of +15 g/t Au
- The Hasaga/Howey mines produced ~640,000 ounces of gold (1930-1952)
- Final step-out hole HMP176W3 - 39.0 m (23.4 m true width) @ 5.69 g/t Au
Hasaga Mineral Resources
Category Type Tonnes (kt) Grade (g/t Au) Contained Gold (koz) Indicated (OP) 42.29 0.83 1,124 Inferred (OP) 25.14 0.78 631 US$ commodity prices for mineral resource estimate: US$1,400 for Gold
Rye-Gol
- ldbanks, Nev
Nevada
- Extensive epithermal vein systems with potential for open pit and
underground mineralization
- Option to acquire a 50% interest in the Goldbanks Property from
Kinross
- Option to acquire a 100% interest in the Rye Property from Barrick
- Drilling highly prospective Rye Vein target in H1-2019
Summary
A World of Opportunity
See Disclaimer page for notes and forward-looking statements 19
Growing Production
Two new mine developments underway at South Arturo in 2018 (El Niño & Phase 1 open pit) Two projects currently being permitted for future development (Cove & Hardrock)
Growing Reserves and Resources
2019 updates planned for South Arturo, Mercedes and Hardrock New discovery at McCoy-Cove offers future upside opportunity Sustained exploration effort across entire project portfolio
Growing Cash Flow
Focused on delivering long-term cash flow through development of project pipeline
Key Contacts
20
Ewan Downie
President & CEO 807.346.1390
John Begeman
Executive Chairman 605.484.3701
Stephen McGibbon
Executive Vice-President Corporate & Project Development 613.376.6782
Matthew Gollat
Vice-President Business Development 807.346.1397
Our Leadership
A-1
John hn Begem eman an: : Exec ecut utive e Chai airman Over 35 years experience in mining - Former VP western operations for Goldcorp, COO Wolfden Resources, President of Avion Gold Corp and is currently a director of Yamana Gold Inc. and African Gold Group Inc. Ewan wan Downi wnie: e: CEO, Pres eside dent nt and d Direc ector
- r
Over 25 years experience in the exploration and mining industry - Founder of Wolfden Resources - recipient of the PDAC “Bill Dennis Prospector Of The Year” award and several Exploration and Development awards from the Northwestern Ontario Prospectors Association Steve e Filipov
- vic: Chief
ef Fina nanc ncial al Off fficer er Chartered Professional Accountant with over 18 years’ experience in financial management and reporting, M&A, and international risk management, taxation and
- structuring. Previously held senior finance and director roles with several listed mining companies.
Steph phen n Mc McGibbo bon: : Exec ecut utive e Vi Vice-Pr Presi siden dent Corpo porat ate e & Proj
- jec
ect Devel elopm pment nt Over 30 years of exploration, mine production and management experience - Former Chief Geologist and Exploration Manager at the Red Lake Mine (Goldcorp) and senior member of the team that discovered the “High Grade Zone” Brent ent Kr Krist stof
- f: Senior Vi
Vice-Pres esiden dent Oper eration
- ns
Over 35 years of experience in and leadership of underground and surface mining operations. Previously COO of Klondex, GM (Turquoise Ridge Mine), and several years managing operations for Newmont and Barrick in Canada, Nevada, Australia, and Papua New Guinea. Clau aude e Le Lemas asson
- n:
: Direc ector
- r
More than 20 years of mining and development experience - Previously held senior mine development and operational roles with Goldcorp Inc. - formerly President and CEO Guyana Goldfileds Inc. - currently President and CEO of Eastmain Resources Ron n Li Little: : Direc ector
- r
More than 30 years experience in the mining industry – Formerly President and CEO of Orezone Gold Corporation Tony ny Ma Makuc uch: h: Direc ector
- r
More than 20 years of direct mining experience - formerly Executive Vice President / President of Canadian Operations of Tahoe Resources Inc., President and CEO of Lake Shore Gold Corp. - currently President and CEO of Kirkland Lake Gold John hn Seam aman an: : Direc ector
- r
Former CFO of Premier Gold Mines and Wolfden Resources Inc. - Currently President and CEO of a large private security Company Mi Mike e Vi Vitton
- n:
: Direc ector
- r
Over 30 years experience in the mining finance industry - Formerly Executive Managing Director, Head, US Equity Sales, BMO Capital Markets, Seat Holder, NYSE; and President, New York Society of Metals Analysts.
Company Snapshot
(1) As at September 30, 2018 (2) Source: TSX infosuite and Sedi as at Feb 4, 2019 (3) Includes Ewan Downie and Orion Mine Finance See Disclaimer page for notes and forward looking statements A-2
Share Structure Shares i/o 212,430,482 (2) Options 9,755,000(1) Warrants 3,500,000(2) Analyst Coverage RBC Capital Markets Mark Mihaljevic CanaccordGenuity Tom Gallo Scotia Capital Ovais Habib CIBC World Markets Bryce Adams TD Securities Daniel Earle Cormark Securities Tyron Breytenbach BMO Capital Markets Andrew Mikitchook Exploration Insights Brent Cook Top 5 Shareholders(2) (~40%) Orion Mine Finance (12.4%) Fidelity Van Eck Associates Tocqueville Oppenheimer Insiders(2) (~15%) Total Insiders(3) 32,757,651 Ewan Downie 4,110,278
Non IFRS Measures, Production Guidance
A-3
NON-IFRS MEASURES
- The Company has included certain terms and performance measures commonly used in the mining industry that
are not defined under International Financial Reporting Standards (“IFRS”) within this document. These include: cash cost per ounce sold, all in sustaining cost (“AISC”) per ounce sold, earnings before interest, tax, depreciation and amortization (“EBITDA”), adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”), adjusted earnings / (loss) per share, free cash flow, capital expenditures (expansionary), capital expenditures (sustaining) and average realized price per ounce. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other
- companies. The data presented is intended to provide additional information and should not be considered in
isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's consolidated financial statements. Readers should refer to the Company’s Management Discussion and Analysis under the heading “Non-IFRS Measures” for a more detailed discussion of how such measures are calculated.
Gold Guidance 2019 Mine Production
- unces
Cash Cost per ounce All-in Sustaining Cost per ounce Mercedes 75,000 - 85,000 $730 - $780 $900 - $950
Mercedes mine is forecasting 225,000 - 250,000 oz silver for 2019
Global Mineral Reserves & Resources
*GREENSTONE GOLD: Mineral reserves and resources were calculated at a gold price of US$1250 and US$1320 respectively. The current independent technical report on the property, dated December 21, 2016, is entitled “Hardrock Project, Ontario, Canada” was completed by G Mining Services Inc. **M *MERCEDES: For 2018, mineral reserves and mineral resources were calculated under the supervision of Stephen McGibbon, Executive Vice-President of Project & Corporate Development at Premier Gold Mines Ltd at gold prices of US$1200 and US$1400 and silver prices of US$16.50 and US$19.25 respectively. The independent technical report on the property dated April 18, 2018, entitled “TECHNICAL REPORT ON THE MERCEDES GOLD-SILVER MINE, SONORA STATE, MEXICO” provides detail on resource estimate methodologies and assumptions. *** **SOUTH ARTURO: Calculations have been prepared by employees of Barrick under the supervision of Rick Sims, Vice President, Resources and Reserves, of Barrick, Geoffrey Locke, Manager, Metallurgy, of Barrick and Mike Tsafaras, P. Eng., Manager, Value Realization of Barrick. Except as noted below, reserves have been estimated based on an assumed gold price of US$1,200 per ounce, an assumed silver price of US$16.50 per ounce *** ***McCOY-COVE: Mineral resources at Cove were estimated using a gold price of US$1400 per ounce. One ounce of gold is equivalent to 140 ounces of silver. The current independent technical report on the property, dated June 29, 2018, is entitled “PRELIMINARY ECONOMIC ASSESSMENT FOR THE COVE PROJECT, LANDER COUNTY, NEVADA” and was completed by Practical Mining LLC *** ****HASAGA: Mineral resources at Hasaga were estimated using a gold price of US$1400 per ounce. The current independent technical report on the property, dated February 24, 2017, is entitled “NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT: HASAGA PROJECT, RED LAKE MINING DISTRICT, ONTARIO, CANADA, NTS MAP SHEETS 52K/13 AND 52 N/04” and was completed by MRB and Associates. See Disclaimer page for forward-looking statements and cautionary notes on mineral reserve and mineral resource estimates
A-4
Global Reserves Global Resources
GOLD (Au) MEASURED RESOURCES INDICATED RESOURCES MEASURED+INDICATED RESOURCES INFERRED RESOURCES PROPERTY Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Greenstone*
2.03 1.07 70 18.38 2.27 1,340 20.41 2.15 1,410 13.68 3.09 1,360
Mercedes**
0.25 3.32 27 3 3.41 329 3.25 3.4 356 1.72 4.18 231
South Arturo***
2.4 1.06 81 6.82 1.03 228 9.22 1.03 309 0.76 1.3 32
McCoy-Cove****
- 0.95
11.22 342 0.95 11.22 342 3.66 11.24 1,322
Hasaga*****
- 42.29
0.83 1,124 42.29 0.83 1,124 25.14 0.78 631
TOT OTAL
4. 4.68 68 1. 1.18 18 178 178 71. 71.44 44 1. 1.46 46 3, 3,363 363 76. 76.12 12 1. 1.45 45 3, 3,541 541 44. 44.96 96 2. 2.47 47 3, 3,576 576
SILVER (Ag) MEASURED RESOURCES INDICATED RESOURCES MEASURED+INDICATED RESOURCES INFERRED RESOURCES PROPERTY Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Greenstone*
- Mercedes**
0.25 51.23 417 3 36.94 3,564 3.25 38.05 3,981 1.72 36.11 1,997
South Arturo***
- McCoy-Cove****
- 0.95
29.53 900 0.95 29.53 900 3.66 20.89 2,457
Hasaga*****
- TOT
OTAL
0. 0.25 25 51. 51.23 23 417 417 3. 3.95 95 35. 35.16 16 4, 4,464 464 4. 4.2 36. 36.13 13 4, 4,881 881 5. 5.38 38 25. 25.76 76 4, 4,454 454
GOLD (Au) PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES PROPERTY Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's) Tonnes (Mt) Grade (g/t Au) Au Ounces (000's)
Greenstone (Hardrock)*
- 70.85
1.02 2,342 70.85 1.02 2,342 Mercedes** 0.19 9.01 56 3.19 3.31 339 3.38 3.63 395 South Arturo*** 1.51 3.20 155 1.34 2.79 120 2.84 3.01 275 TOTAL 1. 1.70 70 3. 3.87 87 211 211 75. 75.38 38 1. 1.15 15 2, 2,783 783 77. 77.08 08 1. 1.21 21 2, 2,994 994
SILVER (Ag) PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES PROPERTY Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's) Tonnes (Mt) Grade (g/t Ag) Ag Ounces (000's)
Greenstone (Hardrock)*
- Mercedes**
0.19 80.97 503 3.19 21.67 2,222 3.38 25.05 2,725 South Arturo***
- TOTAL
0. 0.19 19 80. 80.97 97 503 503 3. 3.19 19 21. 21.67 67 2, 2,222 222 3. 3.38 38 25. 25.05 05 2, 2,725 725