Century Global Commodities Corporation Corporate Presentation By - - PowerPoint PPT Presentation

PDAC, March 2016

Century Global Commodities Corporation

Corporate Presentation By Sandy Chim, CEO

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Forward Looking Statement

Except for statements of historical fact, this presentation contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “project”; “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based

• n the opinions and estimates of management at the date the statements are made, and are subject to a

variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain required permits, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally, potential environmental issues and liabilities associated with exploration and development and mining activities. The Corporation is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Corporation undertakes no obligation to update forward-looking information if circumstances or management’s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Corporation.

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Cash & Capital Structure

Financial highlights (Dec 31, 2015) C$

Cash and bank deposits $25.2M Receivables (accounts & tax) $11.5M Total corporate working capital . . . . . . . . . Available for M&As $36.5M Exploration and evaluation assets $20.5M Investment in a joint venture (with a net cash position of ~$5.7M) $60.8M NAV $119.1M

Capital structure

Shares outstanding 98,794,571 Fully diluted

• Options/Grants: 13,120,500
• Warrants: 1,000,000

112,915,071 Market capitalization (@ closing share price of $0.30, March 3, 2016) ~$30M

Share holdings

Founding shareholders 35.5% Management 16.6% WISCO (23.5%) Minmetals (4.7%) 28.2% Altius Minerals Corp. Other public shareholders 5.1% 14.6% Total 100.0%

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Century - Well Funded

Century and JV cash gives flexibility to:

• pursue M&A in depressed market
• move ahead with mining database and non-metal initiatives
• maintain iron ore strategy and prepare for market recovery

C$M Cash and receivables 36.5 JV Net Cash 5.7 Market Cap ~30.0 Available for strategic plan 36.5

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Iron Assets Positioned for Market Recovery

 Joyce Lake DSO (BFS): high-grade low capex /

• pex- 1st Priority

 Full Moon taconite (PEA): high-volume long-term supply

Value Acquisition and Creation in An Undervalued Markets

 Commodity cycle upside  Lower cost curve  Self-funding potential  Attraction to strategic partners  Tracking value and market trends of mining companies.

• M&As:

Down-cycle value creation

• Mining

Database:

Tracking value for partners & users 100%

Non-Metals Business Unit

• Organic

growth :

Projects are self-funded to FS and EIS

Strong Chinese SOE Strategic Partnerships for a Dual Ferrous and Non-ferrous Strategy

Minmetals

Exploration & Development (Luxembourg) Limited S.à.r.l

WISCO

International Resources Development & Investment Ltd (PRC)

4.7%

23.5% 60% 100%

Century

Global

Commodities Corporation

(TSX: CNT) Duncan Lake Project Sunny Lake Project Attikamagen Project

100% 65%

JV Net Cash $5.7M

Non-ferrous Ferrous

Strong balance sheet (~$40M) for strategic M&As

100%

40%

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Non-Ferrous and Ferrous Strategies

Non-Ferrous

• M&A - focus on producing facilities, esp. gold
• Mining Database - launching now with gold
• Non-metal business targeting major EMs' demand to

generate cash flow while the metals market recovers Ferrous (Quebec, Newfoundland and Labrador ) Maintaining assets for market recovery including:

▫ Joyce Lake DSO Feasibility complete ▫ Blackbird DSO Resource estimate ▫ Full Moon Taconite PEA complete ▫ Duncan Lake Magnetite PEA complete

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Operating Cost Opex FOB, Sept-Îles C$/t

$58.25

Opex FOB, Sept-Îles US$/t

$46.61

Capital Cost Capex C$M

259.6

Operating Parameters Life of Mine years

7+

Tonnage tpa

2.5M

Processing

Dry

Product mix lump

35%

fines

65%

Joyce Lake DSO – Feasibility March 2015

Reserves

Tonnage

Fe % SiO2 %

Reserves (+ 52% Fe)

17.72 M 59.71 11.62

Oblique View of Joyce Lake Mineralization

• Environmental Impact Statement completed (waiting to submit)
• Post feasibility – internal optimization complete
• Project positioned to proceed quickly when market recovers as first project

development followed by others, including the Full Moon Taconite Project

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50 100 150 200 250 US$/t

Iron Ore Spot Price (TSI (CFR China) Fe62% spot since ~2009)

Iron Ore: Where We Are, How We Got Here

7 - 8 years

Dec 11, 2015: US$37.0

(lowest in 15)

End 2015: US$40.2

Iron Ore Price Trend

Global financial crisis

• China’s US$600B stimulus
• Real estate boom in China
• Start of major expansions

Over supply from major expansions Market bottom? recovery?

Mar 3, 2016: US$51.6 ~30% YTD

OR

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Where we are headed

Iron Ore Market Dynamics in the Coming Cycle

• China demand factor:
• Steel demand peaked two years ago
• More sustainable mid-high rate GDP growth (5-7%) driven by consumption

(requiring fewer commodities than in the last cycle) and structural reforms

• No massive stimulus anymore. Short-term limited and specific government

target stimulus expected to maintain target (~7% in 2016) growth only

• Recent surge in iron ore price due to seasonal re-stocking and supply

disruption at Port Hedland due to tropical cyclone

• Longer-term outlook remains positive on the strength of such massive

regional initiative as One Belt One Road, started with AIIB last year

• Global supply factor:
• Oversupply due to major expansions and cost reductions by top producers
• Major expansions to complete by 2018 (Vale sees 70mtpa capacity exit in

2016)

• Cost curve is flattening as more low-cost supply enters the market

 Iron ore price expected to remain low in the short to medium term

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Century Strategically Positioned

• $5.7M of patient cash in Iron Ore JV
• All three projects are at BFS or PEA
• Carrying cost for projects is minimal
• Prepared to wait two-three years or longer if necessary
• Once market returns Joyce Lake DSO (EIS completed)

can be brought to production in 18 to 30 months

• Creating value for shareholders continues with M&A,

Database and other Non-metal initiatives

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5000 10000 15000 20000 25000 30000

China’s GDP in US$B (Past and Projected)

In 2016 China grows by $740B to $12T

Non-Ferrous Strategy: Why diversify?

Source: China NBS data, IMF, Century (constant 2015 constant exchange rate in forecast years from 2016 forward)

Low labour cost driving cheap exports

Growth by fixed asset investment Consumption-led Service-oriented

China joins WTO and starts housing reform

Consumption-led, service-oriented economy:

• Mid-high income per capita
• Demand for quality consumer products
• More investable assets demanding quality

investment products and services Super Cycle

Economic Reform begins

US$B China 38% USA 16% EU 10% Other 36%

Country / Region's Share of World's 2015 GDP Growth

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Two-Pronged Non-Ferrous Strategy

M&A:

• Focus on value proposition, precious and base metal

producing opportunities

• Maintaining relationships with sources of capital

The Century Mining Database:

• Originally built for Century use for acquisitions
• Designed with proprietary algorithms for searches for

both professionals and retail investors

• Considering a link to strategic partners with

substantial user-base community

• Fully translated with focus on Chinese clientele for

mining investment purposes

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For professional and retail investors, to:

• rank and compare data or metrics of choice
• access results by search questions, by markets and mining metrics
• directly link to 800+ company reviews and access 3,500 projects
• Expl. and mining companies,

TSX/TSXV, LSE/AIM, ASX, HKEx + others Starting with gold includes:

• >1500 companies, market cap >US$100B
• 100+ countries, >5 billion oz. gold

Bilingual - English and Chinese Feature highlights:

• asset location maps
• regional analysis and data downloading
• benchmarking and custom tracking tools

The Century Mining Database

Supported by A Growing List of Strategic Partners: ICBC; TIME; MC

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China’s Pent-Up Liquidity –

To be released when RMB internationalizes

High Net Worth Individual Holdings Overseas High Net Worth Individuals Planning Overseas Investments 19% 33% 37% 57% 0% 10% 20% 30% 40% 50% 60% HNWI Ultra-HNWI 2011 2015 2011 2015 50% 40% 40% 45% 0% 20% 40% 60% 80% 100% HNWI Ultra-HNWI

Increase Unchanged Decrease Increase Unchanged Decrease

Investment Sector Growth 2008-2015 (CAGR %) China Total Investable Assets 2015 - US$ 17T

7.73 0.67 2.53 2.53 2.00 1.20 Cash and Deposits Overseas Bank WM Products

Capital Markets Life Insurance

14% 18% 19% 25% 30% 38%

CASH AND DEPOSITS LIFE INSURANCE INVESTMENT PROPERTY CAPITAL MARKET PRODUCTS BANK WM PRODUCTS OVERSEAS INVESTMENT

*Sources: Bain & Company

Century Global Commodities Corporation (TSX:CNT)

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Middle Class Demand for Quality Food

Century Food, a Start-up Venture

• Distributing western-sourced high quality food products to the Chinese

market

• Enormous potential - rising demand from 115M middle class adults
• Century Food is run by a separate, lean team of professionals based in

Hong Kong, with a proven track record in the sector

• Building on knowledge and distribution network in the China market
• Minimal incremental overhead and minimal Capex required
• To generate cash flow while the metals market recovers providing a strong

position to take advantage of market cyclicality  To Date: Century has successfully established a distribution network to supermarkets, hotel and restaurant chains, and international airlines in Hong Kong, from an exclusive distribution agreement with a large Australian egg producer (China-Australia FTA signed and sealed) and is now moving into other high quality food products

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Summary

Century is also well funded with $36.5M working capital in the Company and $5.7M cash in its JV to pursue its strategic plans Century has been restructured as an international company for:  Ferrous strategy (waiting for market recovery)  Non Ferrous strategy (M&A and Mining Database)  Century Food venture in China Key activities going forward:  Launching and growing the mining database  Rigorously identifying mining M&A opportunities  Growing our food business in China  Continuing to position our massive iron ore deposits and advanced projects for market recovery  Potential multiple spin-outs to crystalize value in due course

Market cap of ~C$30M

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Thank You!

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