analyst presentation belo horizonte, bra - vdiodato
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5/25/2018 Analyst Presentation Belo Horizonte, Bra - VDioDato
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Delivering ValueOn Plan to Reach Mid-Tier Status
Funded Plan to AchieveSignificant Growth
And Cash Flow
March/Apr i l 2010
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Certain statements in this presentation constitute "Forward-Looking Statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Canadian securities legislation. The Forward-Looking Statements in this presentation include statements concerning steady gain of the Companys financialperformance, including operating cash flow and earnings. Forward-Looking Statements can be identified by the use of words such as "are expected", "is forecast",istargeted,"approximately" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" betaken, occur or be achieved. Forward-Looking Statements involve known and unknown risks, uncertainties and other factors, which may cause the actual timing ofcommissioning, completion dates or use of proceeds to be materially different from any future results or performance expressed or implied by the Forward-LookingStatements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drillingresults and other geological data, fluctuating gold prices and monetary exchange rates, the possibility of project cost delays and overruns or unanticipated costs andexpenses, uncertainties relating to the availability and costs of financing needed in the future, uncertainties related to production rates, timing of production and the cashand total costs of production, changes in applicable laws including laws related to mining development, environmental protection, and the protection of the health andsafety of mine workers, the availability of labor and equipment, the possibility of labor strikes and work stoppages and changes in general economic conditions. Althoughthe Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-lookinginformation, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. These forward-looking statements
represent the Company's views as of the date hereof. Subsequent events and developments could cause the Company's views to change. The Company does notundertake to update any forward-looking statements, either written or oral, that may be made from time to time by or on behalf of the Company subsequent to the date ofthis discussion. For a discussion of important factors affecting the Company, including fluctuations in the price of gold and exchange rates, uncertainty in the calculationof mineral resources, competition, uncertainty concerning geological conditions and governmental regulations and assumptions underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSand "RISK FACTORS" in the Company's Annual InformationForm for the year ended December 31, 2009 filed on System for Electronic Document Analysis and Retrieval and available at http://www.sedar.com and the Companys
Annual Report on Form 40-F for the year ended December 31, 2009 filed with the United States Securities and Exchange Commission and available at www.sec.gov.
This presentation presents estimates of future "total cash cost per ounce" that are not recognized measures under United States generally accepted accounting principles("US GAAP"). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce thatthe Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirementcosts, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to
the most comparable GAAP measure. A reconciliation of the Company's total cash cost per ounce to the most comparable financial measures calculated and presentedin accordance with US GAAP for the Company's historical results of operations is set forth in the notes to the financial statements in the Company's Annual Report onForm 40-F for the year ended December 31, 2008 filed with the United States Securities and Exchange Commission on March 24, 2009, as well as the Company's mostrecent interim and annual financial statements filed with the Canadian Securities Administrators.
Cautionary Note to U.S. Investors concerning estimates of Inferred and Measured and Indicated ResourcesThis presentation includes the term "inferred resources" and "measured and indicated resources". The Company advises U.S. investors that while such terms arerecognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not toassume that any part or all of the mineral deposits in these categories will ever be converted into proven or probable reserves. "Inferred resources" have a great amountof uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineralresource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or othereconomic study. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable.
Forward Looking Statements
2
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3
Corporate Overview
Listing: TSX / NYSE: JAGShares Outstanding:Basic: 83.7
4.5% Senior Convertible Notes as if issued: 12.9Fully Diluted: (incl. options) 101.3
Share Price(A): $11.43
Debt Outstanding: $ 177.04.5% Senior Convertible Notes issu ed 10-Sep-09= $ 165.0
Other long-term debt (B) = $ 9.4Market Capitalization (C) : $1,010Total Assets (estimated as of 31-Dec-2009) $551
Cash & cash equivalents (as of 31-Dec-2009) $121.3
(A) NYSE close as of March 22, 2010(B) Other long-term debt consists of deferred compensation liability, future income taxes and asset retirement obligations
(C) Based on fully diluted shares excluding 4.5% Senior Convertible Notes as if issued
Goal: increase gold production, reservesand shareholder value at minimal risk
(Millions except Share Price/US$)
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Resources & Reserve Base
Total Gold Resources
7,841,112 oz
Note:Mineral Reserves as filed of March 21, 2010 excludes Northern Brazil. Target reserves for Gurupi have been estimated at2.3 mm ounces based on 64 million tonnes at an average grade of 1.13 g/t. (See page 23 herein)
Measured (t) g/t Indicated (t) g/t Measured +
Indicated (t)
g/t Inferred (t) g/t Measured
+
Indicated
Inferred
Nothern Brazil
Total - - 70,159,952 1.12 70,159,952 1.12 18,821,168 1.02 2,516,326 618,595
Southern Brazil
Total 12,435,820 3.54 15,856,410 4.24 28,292,230 3.93 7,332,800 4.79 3,577,590 1,128,600
Total In-Situ Resources 98,452,182 1.93 26,153,968 2.08 6,093,916 1,747,196
Table 1 - Summary of Estimated Mineral Resources
RESOURCES (tonnage in metric tonnes and grades in grams/tonne) RESOURCES
Proven (t) g/t Probable (t) g/t Proven +
Probable (t)
g/t Ounces Au
Nothern Brazil
Total
Southern Brazil
Total 7,269,960 3.15 10,632,100 3.76 17,902,060 3.51 2,021,120
Total Reserves 7,269,960 3.15 10,632,100 3.76 17,902,060 3.51 2,021,120
Table 2 - Summary of Estimated Mineral Reserves
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Jaguar Operations Southern Brazil
Iron Quadrangle one of theworld largest mining camps:
Gold: > 50 million oz
reported productionIron ore (VALE)
Brazil Total: 575,000 acres of Mineral ConcessionsProlific Greenstone Belt with Existing Operations
Great continuity at depth
Excellent infrastructure
Lower risk profile
Lowers cost structure
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Southern Brazil
Underground Mines - Potential at Depth(1)
2,400 M
500 M
1,000 M
District's ProvenContinuity Jaguar Today
Jaguar Projected toDepth
Surface
> 50 Mil oz Produced
4.6 Mil ozResources
10 Mil ozTarget
ProvingPotential
(1) Theoretical down-dip projection of Jaguar resources; the estimates presented herein reflect targeted conversionof reserves based on historical conversion rates, which the Company believes to be reasonable
Nearly 45 km Undergrou ndDevelopment In-Place thru Q4 09
New
Resources to
800 Meters
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Resource Potential Southern Brazil
Based on its knowledge of the geological characteristics of gold mineralization in the Iron Quadrangle, the
structural control and continuity, adding more resources deeper in the operating mines and in lateral
targets, some of which possess historical non NI43-101compliant resources, Jaguars team is confident it
can increase the resource base in the Iron Quadrangle to 8 million oz Au in 3-5 years.
0
2
4
6
8
10
Dec-10 Potential
Au (Moz)
4.6
8.0
Caet
Pacincia
Turmalina
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Turmalina Mine(Ore bodies A, B and C)
Turmalina Plant
1
23
Fazenda Experimental Target
Pontal TargetFaina Target
Ore body D
N
Alluvial Sediments
Upper Unit (metasediments)
Intermediate Unit (sediments + volcanics)
Basal Unit (metamafics)
Mineral Rights
Geology
Granite
Banded Iron Formation
Concession Base: 20,900 Acres
Southern Brazil
Turmalina Site Geology
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N
Turmalina Mine Schematic block
PONTAL
FAINA
DA and B
( M + I = 626,710 oz )
----250 m
----250 m
------------310 m
----------500 m
C
( M + I = 235,180oz )( M + I = 301,860oz )
??
? ??
M + I (Measured + Indicated) Inferred + Potential
RESOURCES ( Base Dec / 2009 )
1,163,750 oz
14.3 km UndergroundDevelopment In-Place
Reserves: 555,460 oz
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10
Turmalina - CIP Plant
First gold pour: January 3, 2007
Operations Summary2009 - Ore treated: 587,949 t
Feed Grade: 4.81 g/t
Au recovered: 82,070 oz
Annual Production TargetTons Milled ROM Grade Ounces Au Produced
2010 700,000t; 5.28 g/t 95 101,000 oz
2011 800,000t; 5.34 g/t 115 - 125,000 oz
2012 800,000t; 4.84 g/t 110 - 115,000 oz
2013
800,000t; 4.84 g/t 110 - 115,000 oz2014 800,000t; 4.84 g/t 110 - 115,000 oz
Nov 2004 : Property acquired from AngloGold
Jan 2005 to Jul 2006 : Development
Aug 2006 to Mar 2007: Construction
New 1,000 TPD Mill
Placed in-service Oct. 5, 2009
Au Recovery 89-90%
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Turmalina Profile Production and Operating Cash Cost
0
50
100
150
2007 2008 2009 2010 2011 2012 2013 2014
45
7381
95
115110 110 110
6
10
5 5 5
95-101
115-125
110-115 110-115
Estimated range of
production$490
$540$540 $540
$424
$490 $500
$550 $550 $550
$300
$400
$500
$600
2009 2010 2011 2012 2013 2014
Low High
Product ion (000 oz) (1) Operating Cash Cost $/oz (1, 2)
---------- Est im ated ----------
110-115
(2) Assumes Exchange Rate: R$1.75=US$1 for 2010 - 2014.(1) Based on detailed production plans.
-------------- Est imated --------------
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Southern Brazil
Pacincia Project
Santa IsabelMine
So Vicente lineament40 km
2nd Access Ramp to St. Isabelmine in development (NW1)
16.9 km Total UndergroundDevelopm ent In-Place thru Q409
40,770 acres of Minerals Concessions
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N
Pacincia Schematic block
NW03 NW02 NW01SANTA ISABEL
( M + I = 614,510 oz)
SE01
445 m ----
?
M + I (Measured + Indicated) Inferred + Potential
RESOURCES ( Base Dec / 2008 )
1,089,230 oz
RIO DE PEIXE
( M + I = 474,720oz )
Reserves: 405,430 oz
9.5 km UndergroundDevelopment In-Place
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First gold pour: July, 2008.
Operations Summary2009 Ore treated: 645,556 t
Feed Grade: 3.41 g/t
Au recovered: 66,671 oz
Annual Production Targets
Tons Milled ROM Grade Ounces Au Produced2010 700,000t; 3.97 g/t 75 - 81,000 oz
2011 980,000t; 4.29 g/t 120-130,000 oz
2012 1,400,000t; 4.23 g/t 170-180,000 oz
2013 1,710,000t; 4.31 g/t 215-225,000 oz
2014 1,710,000t; 4.32 g/t 215-225,000 oz
2003 & 2006 : Properties acquired from AngloGold and others.
2004 to Q3 2007: Development
Aug 2007 to Jun 2008: Construction
Pacincia Complex - CIP Plant
Au Recovery 92-93%
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Pacincia Profile Production and Operating Cash Cost
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014
24
67 75
120
170
210 215
6
10
10
10 10
75-80
120-130
170-180
210-220
Estimated range ofproduction
$495$485 $485
$470 $470
$502$510
$495 $495 $480 $480
$300
$400
$500
$600
2009 2010 2011 2012 2013 2014
Low High
Product ion (000 oz) (1) Operat ing Cash Cost $/ oz (1, 2)
215-225
(1) Based on detailed production plans.(2) Assumes Exchange Rate: R$1.75=US$1 for 2010 - 2014.
---------- Est im ated ---------- --------------- Est imated ---------------
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Southern Brazil
Caet Target Locations and Geology
Shipping Ore toPacincia Thru Q1
13.4 km Tota l UndergroundDevelopm ent In-Place thru Q4 09
To Belo:45 KM
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Annual Production Targets
Tons Milled ROM Grade Ounces Au Produced
2010 330,000t; 3.89 g/t 30 - 35,000 oz
2011 810,000t; 4.06 g/t 90 - 100,000 oz
2012 1,000,000t; 4.23 g/t 115 - 125,000 oz
2013 1,180,000t; 4.27 g/t 140 - 150,000 oz
2014 1,400,000t; 4.39 g/t 170 - 180,000 oz
April 2009 to Apr 2010: Construction of CIPPlant and underground development of RoaGrande and Pilar mines.
Pilar Mine
Roa Grande Mine
Caet Project
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Caet Plant Construction: as o f March 17, 2010
Au Recovery 90%
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Caet Schematic block
N
RG01 and RG07
----545 m
M + I (Measured + Indicated) Inferred + Potential
RESOURCES ( Base Dec / 2008 )
PILAR
( M + I = 880,910 oz )( M + I = 1,245,890 oz )
?
250 m-----------------
100 m----
100 m
-------440 m
RG02
RG03RG06
??
??
??
2,126,800 oz
10.5 km UndergroundDevelopment In-Place
Reserves: 1,055,180 oz
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Caet Profile Production and Operating Cash Cost
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014
30
90
115
140
170
5
10
10
10
10
30-35
115-125
140-150
Estimated range of production
$500
$435
$425$420
$415
$510
$445$435
$430
$420
$300
$400
$500
2009 2010 2011 2012 2013 2014
Low High
Product ion (000 oz) (1) Operat ing Cash Cos t $/oz (1, 2)
170-180
90-100
(2) Assumes Exchange Rate: R$1.75=US$1 for 2010 - 2014.(1) Based on detailed production plans.
--------------- Est imated --------------- --------------- Est imated ---------------
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Gurupi Project
X
MARANHOPAR
CEAR
Gurupi
General Location
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Project Overview
Potential
Potential
Potential
Potential
Detail 1
Detail 2
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Gurupi Project Production Overview
PRODUCTION
Based on Pincock, Allen & Holts NI 43-101 Statement of Resources (Dec.2009) and AMEC plc Feasibility Study (March 2010*).
Open pit production, beginning 2012
Mill throughput - 14,700 tpd (5.0M tpy).
Mineral inventory - 70.6M tons @ 1.11 g/t (2.52M oz).
Target reserves* of 64M tons @ 1.13 g/t (2.33M oz).
Avg. production - 157,000 oz/year.
Mine recovery - 91%
Plant recovery - 90.4%.
* - As announced on March 23, 2010. NI 43-101 Technical Report to be filed.
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OperationsCash Operating Cost and Margin (Non-GAAP Measure)
2006 2007 2008 2009
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Cash Operating Cost and Margin(Non-GAAP Measure)
Exchange RateR$/US$ 2.17 1.95
1.84 2.02 1.75
Present cash cost based on FY2010 Plan; is not intended to represent a forecast of future performance.Cash margin based on $1,108oz gold price (Kitco close on 1/19/2010).
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CAPEX Plan, By Operation
26
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
59.242.4 41.1 49.8 35.7
20.2 19.2 15.0 15.0 16.0
52.4
44.9 56.3 30.5
25.1
25.5 22.2
22.2 23.2 24.2
20.8
7.56.3
8.3
7.3
7.2 7.3 7.1 7.6 8.2
6.1
34.4
111.7
6.9
0.5
0.5 0.5 0.5 3.5 7.5
1.6
0.5
1.8
18.5
21
84.7
30.97.7
7.7
7.7 12.8
4.3
0.31.7
1.8
2.7
1.6
1.1 1.3
Other
RefractoryGurupi
TurmalinaPacincia
Caet
$ Millions
146.2 143.5
220.2
97.785.8
75.7
136.4
77.2
58.0 64.8
Note: Gurupi estimates preliminary estimates based on pre-feasibility study
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CAPEX Plan, By Category
27
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
35.6 34.4
111.7
6.9
42.4 62.0
51.9
41.9 31.718.2
78.2
23.3
53.6 33.8
35.9
37.444.1
43.6
46.3
48
49.4 52.1
11.7 10.7
16.4
9.611.3
12.6
9.3
4.5
4.5 4.5
2.9 2.8
4.3
1.91.7
1.5
2.7
1.5
1.1 1.3
Contingency
Exploration
Sustaining
ExpansionProjects
$ Millions
146.2 143.5
220.2
97.785.8
75.7
136.4
77.2
58.0 64.8
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Gold Production
28
0
250
500
750
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
18 38
70
115
155
3597 125 149
181 198
81
126
177
221221
221
101
124
112
112112
112
0
111
133 148
Gurupi
Turmalina
Pacincia
Caet
000 oz
217
347
414
593
647679
Actual
2008 2013E CAGR: 39%
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Cash Margin and Operating Cash Flow
20092010 2011 2012 2013 2014 2015
$20.2$63.2
$124.6$154.6
$225.3
$270.9
$302.6
$20.2
$84.0
$148.3
$189.9
$271.6
$325.4$359.7
$20.2
$104.8
$168.6
$229.3
$318.2
$380.2$416.8
@$1,050/oz
@$1,150/oz
@$1,250/oz
Operating Cash Flowat Projected Gold Price of:($millions)
$/oz
2010 2011 2012 2013 2014 2015
$494 $452 $476 $471 $464 $448
$556 $598 $574 $579 $586 $602
AverageCash
Op. Cost/oz
CashMargin
Average Cash Margin$1,050/oz gold and R$1.75=$1.00 exchange rate
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Year-end Cash Balance
2009 2010 2011 2012 2013 2014 2015
$121.3$50.0 $50.0 $50.0
$107.5
$301.8
$509.0
$121.3
$52.2 $59.6 $50.0
$233.8
$482.6
$767.0
$121.3$93.7 $115.7 $134.0
$364.4
$668.1
$1,009.6
@$1,050/oz
@$1,150/oz
@$1,250/ozProjected at Gold Price of:($millions)
$8.7 $9.9 $11.2 - - -
- - $1.5 - - -
- - - - - -
Required borrowings to meet CAPEX*:@$1,050/oz@$1,150/oz
@$1,250/oz
* Assumes maintaining minimum cash position of $50 million.
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Market cap (US$ bn) Gold production (000 oz) 2010E
Source: Company filings, equity research.
Note: Market data as of 3/22/10. Estimates based on management projections where provided. Reserves and resources adjusted to exclude discontinued ops and pending transactions.
Gold reserves and resources (mm oz) Market Value per Resource ounce
Undervalued Relative to Peers
34.1
16.0 14.713.4
11.29.7 8.7 8.1 7.8
6.1 5.43.8 3.3 3.0
1.5
IAMGOLD
Eldorado
Northgate
RedBack
New
Gold
Centerra
Osisko
GoldenStar
Jaguar
Alamos
Gammon
Minefinders
Nevsun
Andean
Resources
SanGold
6.9
5.3
4.8
3.0 2.8
1.8 1.71.2 1.2 1.0 1.0 0.9 0.9 0.7 0.6
IAMG
old
Eldorado
RedB
ack
Osisko
Centerra
Gamm
on
Alam
os
Jagu
ar
Andean
Resour
ces
NewG
old
Northg
ate
SanG
old
GoldenS
tar
Minefind
ers
Nev
sun
970
670
575505
400345 319
260209 188 168
115
0 0 0
IAMGo
ld
Centerra
Eldorad
o
New
Go
ld
GoldenStar
Minefinders
Jagua
r
Northgate
Alamo
s
SanGo
ld
Nevsu
n
Osisk
o
Andea
n
Resource
s
RedBack
Gammo
n
Mid-point of 2010 guidance or average of equity researchestimates where company guidance has not been provided.
$-
$150
$300
$450
$600
$588$512
$431$389
$270$217 $185 $159 $130
$/oz
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Why Jaguar
Lower risk profileFunded plan to achieve grow th targets
Significant production/resources growthCaetPro jec t Acc elerates Grow th
Gurupi Wil l Prov ide Addi t ional Growth
Long-lived operations beyond current knownresources
Tremendous exploration potential Outstanding infrastructure
Experienced operating team
top related