Lowest Cost Gold Producer in the Sector CORPORATE PRESENTATION | - - PowerPoint PPT Presentation
Lowest Cost Gold Producer in the Sector CORPORATE PRESENTATION | - - PowerPoint PPT Presentation
Lowest Cost Gold Producer in the Sector CORPORATE PRESENTATION | SEPTEMBER 2018 Important Cautionary Statements This presentation contains forward -looking statements . Forward-looking statements include, but are not limited to,
Important Cautionary Statements
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This presentation contains “forward-looking statements”. Forward-looking statements include, but are not limited to, statements with respect to the Company’s current review of potential mineral project investments and/or acquisitions, the estimation of mineral resources, the timing and content of upcoming programs, the realization of mineral resource or reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements 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
- f the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
- statements. Such factors include, among others, risks related to international operations; actual results of planned expansion activities; changes in
project parameters as plans continue to be refined; future prices of resources; exchange rates for Canadian and U.S. currencies; possible variations in grade or recovery rates, accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events
- r results not to be as anticipated, estimated or intended. In making the forward-looking statements in this presentation, the Company has made
certain key assumptions, including, but not limited to, the assumptions that merited mineral assets or projects can be acquired and financings are
- available. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements or information made in this presentation, except as required under applicable securities legislation. NI 43-101 QUALIFIED PERSON - Neil Schofield, MS Applied Earth Sciences, MAusIMM, MAIG, a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this presentation. NOTES ON RESOURCE AND RESERVE ESTIMATES PRESENTED THROUGHOUT PRESENTATION Moose River Consolidated (MRC): Touquoy, Beaver Dam, Fifteen Mile Stream, Cochrane Hill – The Moose River Consolidated (MRC) Phase 2 Life of Mine Expansion (Touquoy, Beaver Dam, Fifteen Mile Stream, and Cochrane Hill) Mineral Reserves are current reserve estimates that are in accordance with the current Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101 - Standards of Disclosure for Mineral Projects. A Qualified Person has done sufficient work to classify these reserve estimates to current mineral reserves prepared in accordance with NI 43-101. Cochrane Hill - The Cochrane Hill Mineral Resource estimates have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) as required by NI 43-101. Fifteen Mile Stream – The Fifteen Mile Stream Mineral Resource estimates have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) as required by NI 43-101.
Atlantic’s Key Differentiators
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Best in sector shareholder alignment: Board & Management own + 35% Track record of company builders Focus on risk management Time is money Lowest decile for both cash costs and all-in sustaining costs Phase 2 Life of Mine Expansion boosts annual gold production above 200,000 ounces Demonstrable upside with “string of pearls” deposit strategy along the + 45 km un-tested host structure (The Corridor Regional Program)
Execution, Expansion, Growth, Exploration
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Phase 2 Expansion
Staged Integration of 2 Additional Satellite Deposits
into production schedule (staged capex)
Annual gold production increasing to + 200,000 oz.*
Phase 3 Growth
Resource Expansion Drill Program
Identified extensions to known mineralization
Phase 4 Exploration
Corridor Regional Program Up to 100,000 meters of drilling along the + 45km un-tested host structure
Phase 1 Execution
2018 Production Guidance
Between 82,000-90,000
- unces at low AISC between
C$675-$735 / oz. (US$513-558**)
Commercial Production Declared March 2018
*Based on forecasted results from the January 29th, 2018 pre-feasibility study **Based on current exchange rate of 0.76CAD/USD
Fifteen Mile Stream Cochrane Hill
Phase 1 – Execution
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Built on budget and schedule Mill exceeding design throughput capacity Recovery exceeding Feasibility Study assumptions 2018 production guidance (82,000-90,000 ounces) AISC between $CAD675-$735/oz. for 2018 (US$513-558/oz.*) Focus on improvements
*Exchange rate of 0.76 USD/CAD
Time is Money…..
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Consolidated Ownership of NS Deposits
Q3 2014 Q4 2014 Q4 2017 Q4 2017
Ramp Up to Full Production
Q2 2016
Execute EPC Contract
Feasibility Study work on MRC underway – target completion mid 2015
Q2 2015 Q2 2016
Debt Financing
- Macquarie / CAT Debt
Commitment C$115M
- CAT finance lease facility for
mining fleet
- MOU with Ausenco October 2015
- LSTK (Lump Sum Turn Key)
Price agreed
Q1 2016
Acquisition Feasibility Study
- Touquoy already has all
major permits in place
- Beaver Dam expected to
be straightforward given it is a satellite deposit
Commence Construction
H1 2015
Drilling Program Environmental and Permitting
Completed infill drilling program for Beaver Dam
JULY 2017
Updated Resource Estimate FMS + CH
Jan 2018
2018 Production Guidance
JAN 2018
Phase 2 LOM Expansion Study
2014
Phase 3 Expansion
Mine and Plant Commissioning
2017 2016 2018 2015
Mar 2018
Declared Commercial Production
Phase 4 Corridor Regional Program
Q2 2018 Financial Highlights
On track to meet annual production and cost guidance
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*Please refer to the Aug 15th, 2018 news release / Financial Statements and Q2 2018 operating / financial results tables and noted disclosures to the tables
CASH COSTS
CAD $569/OZ (USD $432/OZ @0.76 USD/CAD)
AISC
CAD $743/OZ (USD $565/OZ @0.76 USD/CAD)
22,269 ounces of
production for Second Quarter
Cash Generated from Operating Activities
$19.4 million for Q2 and Operating cash flow per share of $0.10 Mill throughput and recoveries exceeding design criteria
Gold recovery of 95% for Q2
CAD $35.8 million
in revenue and
$8.3 million
net income
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Sectors Lowest Cost Gold Producer
Relative AISC – Global Junior & Intermediate Producers
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Orvana (TSX) TMAC (TSX) Detour (TSX) Mandalay (TSX) McEwen (NYSE) New Gold (TSX) Asanko (TSX) Wesdome (TSX) Tahoe (TSX) Beadell (ASX) Alio (TSX) Eldorado (TSX) IAMGOLD (TSX) Perseus (ASX) Superior (TSX-V) Jaguar (TSX) Guyana Goldfields (TSX) Resolute (ASX) Leagold (TSX) Torex (TSX) Alamos (TSX) Gran Colombia (TSX) Teranga (TSX) Avesoro (TSX) SEMAFO (TSX) Red Eagle (TSX) Golden Star (TSX) Argonaut (TSX) Centerra (TSX) Goldgroup (TSX) Saracen (ASX) B2Gold (TSX) Endeavour (TSX) Kirkland Lake (TSX) Alacer (TSX) Northern Star (ASX) Pretium (TSX) Roxgold (TSX) OceanaGold (TSX) K92 (TSX-V) Dundee Precious (TSX) St Barbara (ASX) Regis (ASX) Evolution (ASX) Atlantic (TSX-V)
2018E AISC(1)(2) (US$/oz)
Source: Company Reports, Equity Research Note: Costs have been calendarized to CY2018 for Australian producers with a June 30 financial year-end
- 1. AISC are based on company guidance or consensus equity research estimates
- 2. When applicable, costs are shown net of by-product credits (K92, McEwen, and Mandalay are gold equivalent)
- 3. Using Q1 company guidance before F2018 guidance was removed
Intermediate Producers Junior Producers
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Mitigating gold price risk – CAD vs. USD gold price
Hedge Facility: CAD $1,550 / oz. As of June 30, 2018, there were 189,473 ounces committed to the gold forward contracts for delivery between July 2018 and February 2021.
CAD $1,550 Hedge
Phase 2 - Expansion
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Central Processing Facility
MRC 760,000 oz Au P&P Reserves MRC Phase 2
(Fifteen Mile Stream and Cochrane Hill)
825,000 oz Au* P&P Reserves
*Touquoy @ 0.40 g/t cut-off grade – 119,000 oz. (Proven), 306,000 oz. (Probable) , Beaver Dam: 191,000 oz. (Proven), 144,000 oz. , Cochrane Hill @ 0.30 g/t cut-off grade – 240,000 oz. (Proven), 153,000 oz. (Probable), Fifteen Mile Stream: 115,000 oz. (Proven), 316,000 oz. (Probable)*
Phase 2 Expansion Life of Mine Production Schedule
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AISC of CAD$692 / oz. Au (USD$555 / oz. Au)
- 50
100 150 200 250 300
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
73.5 96.2 93.5 171.5 230.5 254.3 244.9 202.4 80.3 13.1
Life Of Mine (years)
Moose River Consolidated LOM Production ('000 ounces)
Touquoy* Beaver Dam* Fifteen Mile Stream Cochrane Hill
Phase 4 Corridor Regional Program Phase 3 Resource Expansion Drilling Fifteen Mile Stream & Cochrane Hill
- Feasibility Study Projections for Touquoy vary from 2018 guidance
Based on forecasted results from the January 29th, 2018 pre-feasibility study
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Atlantic Peer Benchmarking
Source: Capital IQ, S&P Global Market Intelligence, NBF estimates Note: Atlantic production figures represent NBF estimates; Operating cash flow based on street consensus 1. Analyst consensus estimates 2. Aurelia production based on FY’19 company guidance; Operating cash flow represents FY’19 figure; Implied mine life based on average FY’19-FY’21 production divided by Hera and Peak reserves 3. Dacian production based on 2019 research estimate; Operating cash flow represents ‘19 figure; Implied mine life based on average ’19-’20 production divided by Mt Morgans reserves 4. Geopolitical risk ratings calculated based on weighted score of S&P Global Market Intelligence country risks (Political, Operational, Security, Terrorism) by asset, whereby weights for each risk are ascribed as follows: Insignificant = 0, Low = 2, Medium = 8, High = 10, Extreme = 12. Risk ratings for portfolios of assets calculated using production-weighted average of all assets 5. Average ‘18-’20 production divided by attributable reserves from mines currently in production 6. Based on LOM average annual gold production and total resource, incorporates FMS and Cochrane Hill
1.5 1.5 1.5 2.0 2.0 2.0 3.5 3.5 3.8 4.5 5.0 7.0 8.0
- 1.0
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Westgold Aurelia Dacian Atlantic TMAC Wesdome Teranga Golden Star Premier DPM Argonaut Avesoro Roxgold
GEOPOLITICAL RISK RATINGS (1=LOW, 10=HIGH)(4)
Low geopolitical risk in Canada
69 86 103 124 125 177 195 198 229 234 243 254 254 270
- 50
100 150 200 250 300 Wesdome Atlantic ('18) Premier TMAC Roxgold Argonaut Dacian Aurelia Teranga Golden Star Avesoro Westgold Atlantic ('23) DPM
(2%) 3% 4% 5% 7% 11% 11% 12% 13% 19% 22% 23% 24% 35%
(20%) (10%)
- 10%
20% 30% 40% 50% Avesoro Premier Atlantic ('18-'20) Golden Star Roxgold Dacian Aurelia Argonaut DPM Teranga Wesdome Westgold Atlantic ('18-'23) TMAC
PRODUCTION CAGR (’18-’20)(1)
0.9 3.5 5.7 5.9 6.2 6.3 6.4 6.6 7.1 9.1 9.9 10.9 13.3 19.6
- 5.0
10.0 15.0 20.0 25.0 Teranga Aurelia Avesoro Roxgold Golden Star Wesdome Dacian Atlantic Premier DPM Westgold Argonaut Atlantic* TMAC
Atlantic has healthy and growing reserve base to support increased production Atlantic’s growth profile among strongest relative to peers Atlantic on track to rise to the top of the junior ranks by 2023
- Incl. FMS & CH
2018E PRODUCTION (KOZ AUEQ)(1) IMPLIED MINE LIFE – PRODUCING ASSET RESERVES (YEARS)(5)
Backyard Canada
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Location advantages Low geopolitical risk Cost advantages 1 hour from provincial capital of Halifax Close proximity workforce and university research facilities
Phase 3 - Expansion
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Phase 3: Resource Expansion and Definition Program: Targeting extensions to FMS and CH deposits Infilling existing resources to M&I categories
Phase 3 Expansion Drill Program
Fifteen Mile Stream Gold Deposit
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Phase 3 Expansion Drill Program
Cochrane Hill Gold Deposit
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New High-Grade Zone at Cochrane Hill
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Long Section
Phase 4 - Corridor Exploration Targeting
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Geological maps and historical data Lithogeochemistry, alteration mapping + gold in till sampling Filtered geophysics for structural analysis Targeted drill traverses across prospective stratigraphy
19
Meguma vein-hosted vs argillite –hosted gold New model
OLD MODEL Gold-bearing quartz veins – Mainly parallel to bedding in argillite; some cross-cut the bedding NEW MODEL Gold-bearing quartz veins plus additional dispersed gold mineralization within argillite units – e.g. Touquoy Pit Strong greywacke Weak argillite
Corridor Regional Program
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Next Intermediate Gold Producer
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Companies built on successful development from operations
Atlantic’s internal growth options together with strategic and timely acquisitions of new development properties will provide the platform to build the next intermediate gold producer. OR Be acquired at a premium?
Macraes (New Zealand): 183koz pa Didipio (Philippines): 122koz pa Waihi (New Zealand): 117koz pa Haile (United States): 144koz pa 2018 Consensus Guidance: 566koz Au @ US$728 AISC** El Limon (Nicaragua): 56koz pa La Libertad (Nicaragua): 129koz pa Masbate (Philippines): 176koz pa Otjikoto (Namibia): 166koz pa Fekola (Mali): 399koz pa (LoM Avg) 2018 Consensus Guidance: 926koz Au @ US$769 AISC**
OceanaGold $2.2B Mkt Cap B2Gold $2.8B Mkt Cap Atlantic Gold Corporation $402M Mkt Cap
Touquoy Beaver Dam Cochrane Fifteen Mile 2018 Guidance: 82-90kozpa Au @ US$513-558/oz* AISC
*Based on current exchange rate of 0.76 CAD/USD & Company 2018 Guidance **Based on analyst consensus production guidance and provided by BMO Capital Markets
591.7% 12.8% (34.8%) 251.5%
(100%) 0% 100% 200% 300% 400% 500% 600% 700% 800%
Indexed Return
Atlantic Gold Corp Spot Gold (C$/oz) VanEck Vectors Junior Gold Miners ETF FAANG
ETF’s vs. FAANG vs. Atlantic Team Value Add
22
Consolidated ownership
- f Nova Scotia deposits
and gold camp Debt Financing for Moose River Consolidated Phase 1 Project Executed EPC fixed price contract with Ausenco Mine and Plant Commissioning Production guidance for 2018 Phase 2 expansion study Declaration of commercial production Phase 1 MRC Feasibility Study Commenced Phase 1 Construction Q1 2018 Financial Results
The result of applying discipline and risk management to the gold business
Q2 2018 Financial Results
Compelling value opportunity – Canadian single-asset gold company with lowest decile AISC
1. Implied P/NAV multiples for acquired companies calculated based on acquisition price and forward-curve based NAV (based on prevailing Canaccord Genuity forecasts) prior to announcement of transaction. Latest trading P/NAV multiple for AGB 2. Implied P/NAV multiples for acquired companies normalized to reflect changes in precious metal producer sector valuations since the date of acquisition. 3. Size of bubbles represents the average annual AISC margin (US$ M) assuming a gold price of $1,250/oz Au, average annual production and average AISC (based on prevailing CG estimates for three-year period following the acquisition). 4. Average annual AISC margin (US$ M) for AGB reflects average CG forecasts for the first three years following completion of the MRC Phase 2 expansion (2022E-24E) Source: Company Reports, Canaccord Genuity estimates
Atlantic Gold vs Past acquisitions of Canadian single-asset companies (P/NAV multiple vs average annual AISC)
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Richmont Mines Lakeshore Gold Brigus Gold Northgate Minerals Claude Resources AuRico Gold Osisko Mining Atlantic Gold $500 $600 $700 $800 $900 $1,000 $1,100 0.40x 0.50x 0.60x 0.70x 0.80x 0.90x 1.00x 1.10x 1.20x 1.30x
Average annual AISC (US$/oz) Implied P/NAV multiple (based on acquisition price)
(Malarctic)
Share Structure
$106 million partial drawdown from the Revolving Credit Facility CAT Finance Lease Mining Fleet facility of $13m
24
Atlantic Pro-Forma Capitalization
Shares Outstanding 236,547,724 Options 15.3 million FD S/O 251.8 million Ticker TSXV: AGB Recent Share Price $1.70 Market Cap ($M) $402-million (undiluted) Major Shareholders
- Insiders & associates ~ 35%
- Sprott Group of Companies ~ 10%
- Other Institutional ~ 25%
*Canadian Dollars unless otherwise indicated As of Sept 2018
Closed $150m Revolving Credit Facility and refinanced project loan facility - ***Refer to News
Release Sept 20, 2018
Liquidity: Total Cash as at Sept 20, 2018: ~$40m
Current Balance Sheet
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Operating and Financial Resource Expansion & Exploration
Upcoming Catalysts
Q1 2018 Financial Results
2018
Declared Commercial Production
March 2018 Closed $150m Revolving Credit Facility Aug 2018
Q2 2018 Financial Results
Oct 2018
Q3 2018 Production Results
Nov 2018
Q3 2018 Financial Results
Sept 2018 Q1 2019
Updated Resource / Reserve Estimate
2018
Corridor Regional Program - Up to 100,000 meters of drilling along + 45 km of untested host structure
2019
Incorporating Phase 3 Resource expansion drill results plus additional 2018 drilling at Cochrane Hill, Fifteen Mile Stream, and 149 Prospect
Q3 & Q4 2018
Continuation of Resource Expansion drill programs at Fifteen Mile Stream and Cochrane Hill
Q3 & Q4 2018 Drill Results Ongoing
Environmental Impact Statements
H2 2018
Progressing approval of the EIS for Beaver Dam Preparation of the FMS and CH projects EIS submission expected Q1 2019
Q1 2019 May 2018
Board and Management Strength
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Management Team
Steven Dean Chairman & Chief Executive Officer 30+ year mining career with proven successes in the junior and senior mining space. Former President of Teck Cominco. Co-founder and former Chairman of Amerigo Resources Ltd., former Chairman of Sierra Metals Inc., Chairman of Oceanic Iron Ore. Founding management of Normandy Mining and Pacific Mining Corporation in Australia. Maryse Belanger President, Chief Operating Officer & Director Over 30 years of experience with senior gold companies globally. Former Senior Vice President, Technical Services for Goldcorp. Director, Technical Services for Kinross Gold Corporation for Brazil and Chile. Wally Bucknell Director of Exploration & Director Geologist with over 44 years experience in the mining industry. Former Managing Director and CEO of Atlantic Gold NL, and General Manager, Exploration, of Plutonic Resources Ltd. Awarded AMEC’s ‘Prospector of the Year’ award. Chris Batalha Chief Financial Officer Chartered Accountant with experience in accounting, finance, corporate governance and M&A with a number of mining exploration and development companies. Spent 5 years with PricewaterhouseCoopers in the Audit and Assurance Group in Vancouver. Alastair Tiver VP Mine Development Mining engineer with 27 years of international mining experience involved in all phases of mine
- peration, planning, permitting and mine development. Held senior management roles in many
companies including BCMetals Corporation, Copper Mountain Mining Corporation and Yellowhead Mining Inc Neil Schofield Consulting Resource Geologist 25+ year career as a mineral resource consultant. Developed resource models and grade control systems experience with the Sunrise Dam, Hemlo, Kevitsa, Ernest Henry and Cannington
- mines. Mr. Schofield has co-authored several technical papers on sampling and mineral resource
estimation, published mainly by the Australian Institute of Mining and Metallurgy. Tony Woodfine General Manager 21 years experience in open pit mining with 3 previous successful startup operations. Former Mine Manager at Voisey’s Bay Nickel and former General Manager at Baffinland Iron Ore. Held positions as Head of Technical Services, Mine Planner, General Foreman and Grade Control. Sally Goodman Chief Geoscientist Structural geologist with over 30 years international experience in academia, consultancy and industry, including 12 years as Principal Structural geologist with SRK Consulting, and most recently five years in Corporate Technical Services and Exploration with Goldcorp Inc. Tom Ellard VP Business Integration & People Extensive experience working as a management consultant with clients in the mining sector including Mirabela Nickel and Barrick Gold as well as clients in executive education. Tom’s experience in gold mining includes time spent as the Director, Project Management – Technical Services for Goldcorp where he was focused on strategic projects and initiatives to improve health and safety, geology, metallurgy and operational excellence.
Board of Directors
Ryan Beedie Director President of Beedie Development Group, a leader in industrial and residential real estate development in
- BC. Recipient the 2004 Business in Vancouver's '40
under 40', the Ernst & Young 2009 BC Entrepreneur
- f the Year Award, the Queen Elizabeth II Diamond
Jubilee Medal in 2013 and Simon Fraser University's Corporate Impact Award in 2015. Robert Atkinson Vice Chairman & Director Over 30 years in the investment industry. Former President & CEO of Loewen Ondaatje McCutcheon & Co Ltd. Currently serves on the board of numerous junior resource companies. David Black Director Retired corporate and securities lawyer and former partner with DuMoulin Black LLP. Currently serves
- n
the board
- f
numerous junior resource companies. Donald Siemens Director CA and former Partner-in-Charge of Thorne Ernst & Whinney’s (now KPMG) Vancouver office Financial Advisory Services Group. Currently an independent financial advisor, specializing in Corporate Finance and M&A, and serves on the board of numerous junior resource companies. William Armstrong Director Geological Engineer with over 45 years experience in the mining sector. Recently retired from Teck, as General Manager, Resource Evaluations, and responsible for evaluation of potential acquisitions and divestitures, as well as involvement in feasibility studies, construction and operations.
Analyst Target price
27
As at Aug, 2018 Source(s): S&P Global Market Intelligence. based on Analyst consensus estimates.
Broker Report Date Discount Rate Target price / share (C$) Analyst Email Haywood Securities Feb-18 6.0% $1.80 Geordie Mark gmark@haywood.com GMP Securities 15-Feb-18 5.0% $2.65 Ian Parkinson iparkinson@gmpsecurities.com Raymond James Financial 4-Apr-18 5.0% $2.50 Tara Hassan tara.hassan@raymondjames.ca Beacon Securities 16-Aug-18 5.0% $4.00 Michael Curran mcurran@beaconsecurities.ca BMO Capital Markets 24-May-18 5.0% $2.75 Andrew Mikitchook andrew.mikitchook@bmo.com Canaccord Genuity 22-Apr-18 5.0% $3.50 Rahul Paul rpaul@canaccordgenuity.com PI Financial 23-Jul-18 5.0% $2.60 Chris Thompson cthompson@pifinancial.com National Bank Financial 25-Apr-18 5.0% $3.00 Don DeMarco don.demarco@nbc.ca Desjardins Capital Markets 4-Jul-18 5.0 - 6.0% $2.75 Raj Ray raj.ray@desjardins.com Consensus Average $2.84
Appendices
29
AGB Liquidity Analysis – Jr. Producer
As at August 31, 2018 Source(s): Bloomberg, S&P Global Market Intelligence.
0.29% 0.36% 0.23% 0.20% 0.37% 0.29% 0.38% 0.37% 0.40% 0.41% 0.46% 0.40% 0.44% 0.34% 0.41% 0.38% 0.36% 0.38% 0.55% 0.40% 0.38% 0.44% 0.36% 0.34%
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018
- Avg. Daily Volume as a % of Free Float
AGB Peers
- 0.15%
0.01%
- 0.18%
- 0.18%
0.02%
- 0.09%
- 0.17%
- 0.04%
0.01%
- 0.03%
0.10% 0.05%
- 0.20%
- 0.15%
- 0.10%
- 0.05%
0.00% 0.05% 0.10% 0.15% Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018
- Avg. Daily Volume as a % of Free Float (Delta: AGB - Peers)
AGB: Liquidity levels higher compared to junior producing peers
Peer group includes: Mandalay, TMAC, Teranga, Guyana, Beadell, Ramelius, McEwen, Golden Star, Alacer, Wesdome, Roxgold, DPM, Argonaut, Alio, Premier
Pre-Concentration Flowsheet for FMS and CH
30
Q2 and YTD 2018 Operating Results
31
Disclosure of operating results does not present comparative statistics for the prior year as MRC began producing gold in Q4 2017 and commenced commercial production effective March 1, 2018.
Three months ended June 30,2018 Six months ended June 30,2018 Operating data Ore mined Tonnes 757,865 1,852,353 Strip ratio (waste to ore) 1.39 0.85 Mining rate (Total Material) Tonnes per day 19,921 18,903 Ore milled Tonnes 567,238 986,388 Head grade g/t Au 1.28 1.35 Recovery % 95.2 94.7 Mill throughput Tonnes per day 6,233 5,450 Gold ounce produced
- zs.
22,269 40,452 Gold ounces sold
- zs.
22,728 39,915
Milled head grade for Q2 2018 was 11% below life of mine reserve grade due to constraints in the pit where historical tailings had to be removed and prevented access to higher grade ore for more than 6 weeks. Access to the higher grade mining blocks was achieved by the end of June Continue to see good reconciliation between the resource model grade and milled grade Steady-state mill operations with throughput and recoveries that continue to exceed design criteria Q2 production above guidance and supporting full year production guidance of 82,000-90,000 ounces as announced on January 19, 2018
Q2 2018 Financial Results
32
(1) MRC commenced commercial production effective March 1, 2018. As such, only financial operating results from this date are recognized in the Company’s Statement of Income (Loss) and Other Comprehensive Income (Loss) for the three and six months ended June 30, 2018. Financial operating results prior to that were capitalized to mine development within property, plant and equipment. (2) The Non-IFRS performance measures for the six months ended June 30, 2018 include pre-commercial production operating results from January 2018 and February 2018. For accounting purposes, pre-commercial production financial operating results have been capitalized to property, plant and equipment (refer to note 9 of the interim financial statements for the three and six months ended June 30, 2018). Refer to the “Non IFRS Performance Measures” section in this news release and in the Company’s Management and Discussion Analysis for the six months ended June 30, 2018. (3) As at June 30, 2018 total cash as presented above represents the cash and cash equivalents balance on the Company’s Condensed Consolidated Interim Balance Sheet of $16,075,980 plus the restricted cash balance of $17,040,432. As at December 31, 2017 total cash as presented above represents the cash and cash equivalents balance on the Company’s Condensed Consolidated Interim Balance Sheet of $22,093,914 plus the restricted cash balance of $10,593,432.
For the three months ended June 30, 2018 For the six months ended June 30, 2018 IFRS Measures(1) Revenue CAD $35,888,640 CAD $48,770,102 Mine operating earnings 15,483,426 21,373,169 Cash generated from operating activities 19,393,031 23,607,463 Net income and comprehensive income 8,342,731 11,653,286 Earnings per share - basic 0.04 0.06 Earnings per share – diluted 0.04 0.05 Operating cash flow per share – basic 0.10 0.12 Operating cash flow per share – diluted 0.09 0.11 Key Balance Sheet Items Total cash(3) CAD $33,116,412 CAD $32,687,346 Total assets 264,828,828 258,565,362 Current portion of long-term debt 47,278,643 32,210,417 Long-term debt 71,150,511 105,617,533 Non IFRS Performance Measures(2) Total cash cost per ounce CAD $569 CAD $560 AISC per ounce 743 746 Average realized price per ounce 1,583 1598 Average realized cash margin per ounce 1,014 1,038 Average realize AISC margin per ounce 840 852
Plant Site
33
Tailings Management Facility
Touquoy Pit
Coarse Ore Stockpile Facility Plant Crushing Circuit
Truck Shop
Admin Building Laboratory Mining Offices
Plant Site
34
Tailings Management Facility
35
Touquoy Open Pit
36
Grade controlled by lithology and structure
37
Current pit shell
Detailed knowledge of the Touquoy deposit has provided us with an understanding of how the mineralization is controlled by rock type – here concentrated within the grey argillite – and also by structure – for example this blue fault is a sharp boundary between
- re and waste, and may represent part of the plumbing system that fed gold-bearing fluids into the argillites.
Greywacke Argillite
3D Geology: Touquoy Pit
How Do We Approach The Business Differently?
38
The gold development business is really no different to other businesses – it's about risk management, capital discipline and execution There are more risk management tools in mining in the gold sector
- Grade control drilling in open pits provides higher data density for improved precision
for ore and waste definition in advance of mining and capital investment
- Open pit mining lower risk than underground
- Gold distribution in disseminated deposits is usually best modelled
with both geology AND modern statistical analysis
- EPC fixed price turn key contracts pass capex
- ver-run risk to contractor’s balance sheet
39