Minera Frisco El Coronel Unit Investor Presentation - 3Q16 - - PowerPoint PPT Presentation

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Minera Frisco El Coronel Unit Investor Presentation - 3Q16 - - PowerPoint PPT Presentation

Oct 02, 2022 249 likes •379 views

Minera Frisco El Coronel Unit Investor Presentation - 3Q16 Overview A mining company dedicated to the exploration and production of gold, silver, copper, lead and zinc Created in 1962 and acquired by Grupo Carso in 1985 More than 50

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Minera Frisco

Investor Presentation - 3Q16

El Coronel Unit

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Overview

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 A mining company dedicated to the exploration and production of gold, silver, copper, lead and zinc  Created in 1962 and acquired by Grupo Carso in 1985  More than 50 years of mining experience  On January 2011, GCarso spin-off Minera Frisco and has been trading independently in the Mexican Stock Exchange (MFRISCO) since then  9 operating mines and 1 project under development  9,009 employees (includes contractors)

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Location: Sonora Stage: Operating Metals: Cu Maria Location: Baja California Norte Stage: Operating Metals: Au / Ag San Felipe Location: Chihuahua Stage: Operating Metals: Au / Ag Concheño Location: Chihuahua Stage: Operating Metals:Au/ Ag/ Cu/ Pb /Zn San Francisco del Oro Location: Zacatecas Stage: Construction Metals: : Au/ Ag/ Cu/ Pb/ Zn Tayahua - Cobre Primario Location: Zacatecas Stage: Operating Metals: Au/ Ag/ Cu/ Pb/ Zn Tayahua Location: Zacatecas Stage: Operating Metals: Au / Ag El Coronel Location: Aguascalientes Stage: Operating Metals: Au/ Ag/ Cu/ Pb/ Zn Asientos Location: Aguascalientes Stage: Operating Metals: Au / Ag El Porvenir Operating Mines Expansion Projects

Geographic Footprint

Location: Chihuahua Stage: Operating Metals: Au / Ag Ocampo

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Location: Chihuahua, Mex. Exploitation Type: Open Pit & Underground Process: Dynamic Leaching Start of Operations: 2013 Capacity: 13,500 TPD Main Metals: Au / Ag Final Product: Dore Bars

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Operating Mines: open pit & underground

Concheño

Location: Chihuahua , Mex. Exploitation Type: Underground Process: Dynamic Leaching Start of Operations: 2006 Capacity: 3,000 TPD Main Metals: Au / Ag Final Product: Dore Bars

Ocampo

Location: BCN, Mex. Exploitation Type: Open Pit & Underground Process: Heap and Dynamic Leaching Start of Operations: 1994 Project expansion start-up: 2013 Capacity: 37,000 TPD Metals: Au / Ag Final Product: Dore Bars

San Felipe

TPD (tonnes per day)

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Operating Mines: open pit

Location: Zacatecas , Mex. Exploitation Type: Open Pit Process: Heap Leaching Start of Operations: 2008 Capacity: 55,000 TPD Metals: Au / Ag Final Product: Dore Bars Location: Aguascalientes, Mex. Exploitation Type: Open Pit Process: Heap Leaching Start of Operations: 2013 Capacity: 8,500 TPD Metals: Au / Ag Final Product: Dore Bars

El Coronel El Porvenir

Location: Sonora, Mex. Exploitation Type: Open Pit Process: Heap Leaching Start of Operations: 2004 Capacity: 27,000 TPD Metals: Cu Final Product: Copper - Cathodes

Maria

TPD (tonnes per day)

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Operating Mines: underground

Asientos Tayahua* San Francisco del Oro

Location: Zacatecas, Mex. Exploitation Type: Underground Process: Flotation Circuit Start of Operations: 1917 Capacity: 5,500 TPD Metals: Au/Ag/Cu/Pb/Zn Final Product: Concentrates Location: Aguascalientes, Mex. Exploitation Type: Underground Process: Flotation Circuit Start of Operations: 2008 Capacity: 3,800 TPD Metals: Au/Ag/Cu/Pb/Zn Final Product: Concentrates Location: Chihuahua , Mex. Exploitation Type: Underground Process: Flotation Circuit Start of Operations: 2004 Capacity: 4,000 TPD Metals: Au/Ag/Cu/Pb/Zn Final Product: Concentrates

*Expansion project under development

TPD (tonnes per day)

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Projects under development

Nominal installed milling/crushing capacity (tonnes/day)

Name Location Metals Exploitation type Process Current milling/crushing installed capacity* Description Additional installed capacity* Expected installed capacity* Status Tayahua Zac. Au, Ag, Pb, Zn, Cu Underground Milling and flotation 5,500 Primary copper: access ramp

  • f 6 km, crushing, grinding and

flotation plant 10,000 15,500 Under construction Expansion projects

82,700 157,300 167,300

2012 2015 2016E

  • During 2010, MFrisco initiated an aggressive growth program which consisted in the development of 2 new mining

units (Concheño and Porvenir) and the expansion 3 operating units (Coronel, San Felipe and Tayahua).

  • As a result, output capacity grew from 82,700 to 157,300 Tn / day.

Tayahua – Primary copper project

  • This is the only project still under construction and is expected to begin operations on 2017.

growth % 6.4% 90.2%

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Key Operating Data

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growth %

  • 2%

growth % 0%

  • 3%
  • 7%
  • growth %
  • 11%
  • 2%
  • 19%

18% 22% growth %

  • 3%
  • 57%
  • 3%
  • growth %
  • 18%
  • 5%

5%

  • 269

423 412 294 95 92

2013 2014 2015 9M16 3Q15 3Q16

Gold ('000 Oz)

7,523 8,855 9,331 6,756 2,221 2,323

2013 2014 2015 9M16 3Q15 3Q16

Silver ('000 Oz)

26,296 25,823 20,871 14,081 5,284 4,680

2013 2014 2015 9M16 3Q15 3Q16

Copper (tonnes)

18,914 18,275 21,642 16,072 5,208 5,117

2013 2014 2015 9M16 3Q15 3Q16

Lead (tonnes)

63,675 58,913 71,628 53,987 17,562 17,481

2013 2014 2015 9M16 3Q15 3Q16

Zinc (tonnes)

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Key Operating Data

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It does not include hedging effects.

58% 18% 7% 13% 4%

3Q16 - Revenues by product

Gold Silver Copper Zinc Lead

growth %

20%

  • 5%
  • 10%

3,336 3,511 10,305 12,398 13,611

3Q15 3Q16 2013 2014 2015

Revenues (million pesos)

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  • 5

10 15 20 25 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 3Q15 3Q16 2013 2014 2015 Ag- average price (usd/Oz) Au- average price (usd/Oz)

Gold & Silver Price

Au (Oz) Ag (Oz)

Key Financial Data

10 37%

19%

  • 14 %

growth %

  • 70%
  • 58%

32%

  • 4%
  • 8 %
  • 18%
  • margin %

36% 36% 36% 42% 34%

1,213 1,275 4,332 4,521 4,648

3Q15 3Q16 2013 2014 2015

EBITDA (million pesos)

6,027 1,797 746 976

2013 2014 2015 9M16

Capex

(million pesos)

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Key Financial Data

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Indebtedness

As of September 30th , 2016, the company continued with its metal hedging strategy and it covers most of the production estimated for the remainder 2016 year. Also, a metal hedging strategy started for 2017.

Derivative Financial Instruments

On September 30th, 2016 the Company’s debt was composed of a syndicated loan of US$1,060 MM and $5,000 MM Ps in long term bonds. When comparing 3Q16 vs. 3Q15 the total debt in American Dollars decreased by 6%, reaching US$1,316 MM vs. US$1,394 MM.

Indebtedness Variation (USD million) 3Q16/3Q15 Long term bonds 256 294

  • 13%

Syndicated loan 1,060 1,100

  • 4%

Debt 1,316 1,394

  • 6%

Exchange rate (pesos per dollar) 19.50 17.01 3Q16 3Q15

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Contact

Investor Relations: Lizbeth Munguia Samperio lmunguias@minerafrisco.com.mx

  • T. +52 (55) 2122.2624

Corporate Office: Plaza Carso Lago Zurich #245 Presa Falcon Building, 17th Floor Granada Ampliación 11529 México DF Trading Symbol: MSE: MFRISCO OTC: MSNFY www.minerafrisco.com

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Certain statements in this presentation may be related to expectations about future events of Minera Frisco. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Minera Frisco undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release.