1
Investor Presentation for
NOVEMBER 2019
Investor Presentation for NOVEMBER 2019 1 CAUTIONARY STATEMENT - - PowerPoint PPT Presentation
Investor Presentation for NOVEMBER 2019 1 CAUTIONARY STATEMENT This presentation may contain certain forward-looking statements and information relating to Latitude that are based on the beliefs of the companys management, as well as
1
Investor Presentation for
NOVEMBER 2019
2
This presentation may contain certain “forward-looking” statements and information relating to Latitude that are based on the beliefs of the company’s management, as well as assumptions made by and information currently available to manage-
limited to, without limitations, exploration and development risks, expenditure and financing requirements, general eco- nomic conditions, changes in financial markets, the ability to properly and efficiently staff the Company’s operations, the sufficiency of working capital and funding for continued operations, title matters, First Nations matters, operating hazards, political and economic factors, competitive factors, metal prices, relationships with vendors and strategic partners, govern- mental regulations and supervision, permitting, seasonality and weather, technological change, industry practices, and one- time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Latitude does not assume the obligation to update any forward-looking statement or forward-looking information except as required by law.
CAUTIONARY STATEMENT
The Four Pillars Of Value Creation
3
GREAT ASSET
GROWTH POTENTIAL
FINANCIAL STRENGTH
OWNERSHIP
1 2 3 4
Latitude’s Asset Portfolio
ECUADOR COLOMBIA BRAZIL PERU BOLIVIA CHILE
Lima HUANCAVELICA CUSCO
NUEVA RECUPERADA: FLAGSHIP ASSET IN HUANCAVELICA AZOD: ACCHA ZINC OXIDE DISTRICT IN CUSCO
MINING PERMIT IN PLACE PRODUCTION CAPACITY 600 TPD PROACTIVE COMMUNITY ENGAGEMENT POWER AND ACCESS INFRASTRUCTURE IN PLACE
4
5
Great Resource and Land Package
43-101 RESOURCES (INFERRED) LAND PACKAGE
STATEMENT REGARDING MINERAL RESOURCES NI 43-101 Technical Report on Resources. Recuperada Project, Huancavelica Province, Peru. Carried out by Centro de Estudios Mineros. Qualified Person: Edmundo Tulcanaza.
TONNES AREA 7,324,365 NORTH - TANGANA NORTH - HUACHOCOLPA SOUTH - RECUPERADA 4,840,015 2,160,649 323,701 116.33 124.50 379.81 3.35 3.06 1.31 1.63 2.91 2.26 TOTAL Pb % 3.17 Ag (g/t) 130.38 Zn % 2.04 HECTARES 4,644 6,617 1,400 12,661 ORIGIN Latitude (ex BVN) Latitude (ex PAS) Latitude New Acquisitions Total Known Productive Veins 22 53 15 90
6
Enormous Geological Upside
? ? ? ? ? ? ? ?
0 m
0 km 1 km 2 km 3 km
Ore shoot - excellent depth potential Ore shoot - excellent depth potential Ore shoot - excellent depth potential
Ore shoot Mined stopes Mined stopes Mined stopes 809 813 3 802 803 812 805 811 810 150 149 4 127
Ore shoot - excellent depth potential
?
Nueva Recuperada veins: strike-slip Riedel shear regime. Unlike low-sulphidation systems, there’s enormous potential at depth in Nueva Recuperada.
> . 5 tVein typical size: LENGTH: 500 TO 1,500M DEPTH: 600 TO 800M
7
Development Spanning Half a Century
PRODUCTION VS RESERVES
700,000 600,000 500,000 400,000 300,000 200,000 100,000 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1957 Production Reserves
8
Over 50 years of Profjtable Grades
Undiluted mine grades consistently above $250/tonne at todays prices - through 56 years of production!
$ 250 / tonne Ag equivalent $ 250 / tonne Pb equivalent $ 250 / tonne Zn equivalent
30 25 20
Ore%/Oz
10 5 15 2005 2010 2013 2000 1995 1990 1985 1980 1975 1970 1965 1960 1957 $250 / tonne Ag equivalent $250 / tonne Pb equivalent $250 / tonne Zn equivalent Pb% Ag Oz Zn%
9
Cash Generation - Unlocking Value From Day 1
Pan American Silver
inferred resources (43-101) (2.04% Zn, 3.17% Pb, 130.4 g/t Ag)
Q4 2018 (300 tpd)
community relations
RESOURCES RECUPERADA PLANT COMMUNITY / HSE
10
Safety Record (Jan-Oct 2019): 63 workers on average 0 ACCIDENTS, 0 LOST DAYS
A Win-Win Strategy with Communities and Workers
11
Financial Strength
Mine production taking off Offtake agreement with Trafigura
Infrastructure in place Competitive G&A
18,000
TONNAGE
SALES MINING PRODUCTION
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 AUG-19 SEP-19 OCT-19 NOV-19* DEC-19*
*Estimate
LAYING THE FOUNDATIONS FOR VALUE GENERATION
12
José M. García CEO & Director John Gray Director Konstantin Lichtenwald CFO Jorge Benavides Director Carlos Espinosa Chairman Sebastian Wahl VP Corp Development & Director Otto Sandoval Peru GM Mike Hoffman Director
Ownership: Management-Founded Company
SKILLED AND AMBITIOUS TEAM TO GROW THE COMPANY
13
Ownership: Skin in the Game
The best performing companies have leaders that own substantial amounts of common stock relative to their level of compensation.
Shareholders’ Gold Council Strong Institutional Support Group behind initial funding to Ivanhoe Mines
Latitude’s key personnel driven by equity incentives:
Investors Directors & Management Employees Former Zincore Investors 45% 1% 51% 3%
14
NUEVA RECUPERADA IS JUST THE BEGINNING: STEPPING STONE FOR SOMETHING LARGER
Growth Potential
NUEVA RECUPERADA ORGANIC GROWTH
LATITUDE CORPORATE STRATEGY
STEP 1: Latitude, Proven Mining Operator
STEP 2: Implement Growth Vision
15
High-Exposure Growth Opportunities Are Rare
191 new listings TSX / TSXV (Jan-Aug 2019) Of that, only 17 in mining (8.9%) Of that, only 3 outside Canada (1.57%):
Source: MiG Report August 2019 (TMX)
TSX/TSXV New Listings (Jan-Aug 2019) Listed Mining Companies From Canada Listed Mining Companies Outside Canada 8.9% Non-Mining Listings
16
1 2 3 4
LATITUDE LISTING IS A UNIQUE, HIGH-EXPOSURE OPPORTUNITY IN THE SILVER + BASE METALS SPACE
GREAT ASSET
GROWTH POTENTIAL
FINANCIAL STRENGTH
OWNERSHIP
17