an evolving junior gold producer in the timmins camp · $127 0.4 $356 1.0 $134 kirkland lake gold...
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1
St Andrew Goldfields Ltd. An Evolving Junior Gold Producer
in the Timmins Camp
On The Radar (TMX Equicom)
Calgary/Vancouver
November 14-15, 2012
TSX: SAS OTCQX:STADF
2 © St Andrew Goldfields Ltd. 2012
Forward-looking Information This presentation contains forward-looking information and forward-looking statements (collectively, "forward-looking information") as defined under applicable securities laws, concerning SAS’ business, operations, financial performance, condition and prospects, as well as management’s objectives, strategies, beliefs and intentions. This presentation uses words such as “estimate”, “intend”, “believe”, “expect”, “anticipate” , “plan”, “potential” and similar terminology to identify forward-looking information. Specifically, this presentation contains forward-looking information including: the production, grade and throughput assumptions at the Holt, Holloway and Hislop Mines; the completion of various exploration drilling programs to be completed by the Company in 2012; as well as the expansion of mineral resources, mineral reserves and increase in the level of production through successful exploration and development; cash costs and start-up capital; the assumptions of the Taylor bulk sample, development and production assumptions, and the timing thereof; and the Company's ability to achieve its 2012 objectives.
Forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, including relating to the interpretation of the geology, continuity, grade and estimates of reserves and resources; fluctuations in gold prices and currency exchange rates; unanticipated operational or technical difficulties; changes in laws or regulations; changes in general economic conditions and changes in conditions in the financial markets; the Company’s dependence on key employees; the Company’s ability to compete with other mining companies possessing greater financial resources; the Company’s ability to obtain requisite permits and licenses; risks arising from challenges to the Company’s title to its assets, including those arising in respect of aboriginal rights; the potential for conflicts of interest to arise. A description of these risks and uncertainties can be found in the Company’s Annual Information Form obtained on SEDAR at www.sedar.com. SAS disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.
3 © St Andrew Goldfields Ltd. 2012
Q3 Highlights
Second Consecutive
Quarter of Free Cash
Flow
Achieved Production Rate that will Sustain ~100,000 Ounces of Annual
Production
Large Land Position with Exploration
Upside
Experienced Team Dedicated to
Achieving Success
SAS
Simply Achieving Success
4 © St Andrew Goldfields Ltd. 2012
2012 Highlights • Steady Increase in Production and Decrease in Mine Cash Costs
• Increase in Revenues with Increase in Cash Margin
• Generating Free Cash Flow for Q2/2012 and Q3/2012
• Advancing the Taylor Project through the Advanced Exploration
Phase with Production anticipated in Q2/2014
• Focussed Exploration Programs to Extend Mine Life and Increase
Level of M&I Resources
US$1,695/ounce US$1,620/ounce US$1,640/ounce
US$
699
US$
745
US$
701
Average Realized Price Per Ounce of Gold Sold
5 © St Andrew Goldfields Ltd. 2012
Land Position in the Timmins
District
Hislop
North
Ghost
Targets/
Zone 4
Ontario/Québec
Border
6 © St Andrew Goldfields Ltd. 2012
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1 2 3 4 5 6
Increased Production Through
Organic Growth
2009A 2010A 2011A 2012E 2013E 2014E
90
,00
0 -
10
0,0
00
95
,00
0 -
10
5,0
00
12
0,0
00
- 1
30
,00
0
OU
NC
ES
The Holloway Mine commenced production in Q4/2009 The Hislop Mine commenced production in Q2/2010 The Holt Mine commenced production in Q2/2011 Production from Holt and Holloway will continue to increase in 2012 and 2013 Taylor is expected to commence production in 2014
Reducing Mine Cash Costs
US$800-$850
7 © St Andrew Goldfields Ltd. 2012
Q3/2012 Operating Results
Overview
Note
(1) Assuming gold prices at current levels
(2) Mine Cash Costs and Cash Costs (Per Ounce of Gold Sold) are non-GAAP measures. Refer to 2012 Q3 Financial Report and MDA for full disclosure.
Q1/2012 Q2/2012 Q3/2012
YTD
2012
2012
Forecast
Gold Production
21,018 23,016 25,742 69,677 90,000 – 100,000
Mine Cash
Costs US$858 US$785 US$768 US$799 US$800-US$850
Royalty Costs US$138 US$134 US$127 US$134 US$135-US$145(1)
Cash Costs(2) US$996 US$919 US$895 US$933 US$935-US$995
8 © St Andrew Goldfields Ltd. 2012
Q2/Q3 2012 Cash Costs Among
Peer Group
Average Q3/2012 Cash Cost
US$933/ounce*
No
t A
va
ilab
le a
t Th
is T
ime
No
t A
va
ilab
le a
t Th
is T
ime
No
t A
va
ilab
le a
t Th
is T
ime
* The average Cash Cost quoted is based on the selected group of companies used for this comparative
Q2/2012 Total Cash Cost per ounce of gold sold
Q3/2012 Total Cash Cost per ounce of gold sold
Royalty Costs per ounce of gold sold
9 © St Andrew Goldfields Ltd. 2012
2012 Share Price Performance SAS compared to a selection of peers (SAS, BRD, CRJ, SGR, LSG, RIC, KGI)
10 © St Andrew Goldfields Ltd. 2012
Comparison to Peer Group EV/Ounce of Reserves and Ounce of M&I Resources
Company Name EV (C$Millions)
Reserves (Moz’s)
EV/ Ounce (P&P)
Resources (M&I) (Moz’s)
EV/ Ounce (M&I)
Brigus Gold Corp. $222 1.9 $119 2.1 $113
Claude Resources
Inc. $127 0.4 $356 1.0 $134
Kirkland Lake Gold $849 1.5 $576 1.6 $487
Lake Shore Gold Corp.
$458 0.8 $555 2.1 $185
Richmont Mines $80 0.4 $218 0.8 $183
San Gold Corp. $261 0.2 $1,249 0.6 $637
St Andrew Goldfields Ltd.
$153 0.7 $216 3.2 $42
Group Median $222 0.7 $356 1.6 $127
* Source, company filings & website, EV based on Q2 financial results
11 © St Andrew Goldfields Ltd. 2012
Holt, Holloway and Hislop Mines
HOLT MINE (Underground)
•Reserves (2.4mt @ 5.36 g/t Au – 415,000 ounces)
•M&I Resources (5.8mt @ 5.86 g/t Au – 1.1 million ounces)
•Production Rate ~1,000tpd
•2012 Production ~50% of total production
HOLLOWAY MINE (Underground)
•Reserves (224,000t @ 4.29 g/t Au – 31,000 ounces)
•M&I Resources (748,000t @ 4.57 g/t Au – 110,000 ounces)
•Production Rate ~700tpd
•2012 Production ~25% of total production
HISLOP MINE (Open Pit)
•Reserves (1.5mt @ 1.88 g/t Au – 93,000 ounces)
•M&I Resources (5.7mt @ 1.95 g/t Au – 359,000 ounces)
•Production Rate ~1,300tpd
•2012 Production ~25% of total production
12 © St Andrew Goldfields Ltd. 2012
Taylor Project PFS Opportunities for Improvement
• Mineral reserves of 985,000t @5.45g/t Au for
173,000 ounces with estimated annual
production of 41,000 ounces over the mine life.
• A conservative analysis was used for the
estimation of the resources and the
conversion of resources to reserves. As the
project advances underground,
re-interpretation may lead to better grade,
additional resources, and additional reserves.
• This study only looks at the WPZ; additional
upside is possible with further exploration and
additional work on the Shoot Zone.
Pre-tax Cash Flow Pre-tax NPV5%
Pre-tax IRR
$70 Million $50 Million
56%
$20 Million $12 Million
22%
US$1,319 Per Ounce US$1,600 Per Ounce
*Resources (M&I) West Porphyry & Shoot Zones 2,625,000t @5.42g /t Au (457,000 ounces)
13 © St Andrew Goldfields Ltd. 2012
180 Million Ounce Gold Belt
14 © St Andrew Goldfields Ltd. 2012
2012 Exploration Program ~
$ 8
Mill
ion
Holt Mine
Hislop Mine
GHOST ZONE
Updated Resource Pending
Zone 4 Extension
Follow-up Drilling Expected from
Underground
Hislop North Project
Continued drilling along northern property
boundary to test 147 Zone and Grey Fox extensions
(ongoing)
15 © St Andrew Goldfields Ltd. 2012
HOLT – Ghost Zone Location
16 © St Andrew Goldfields Ltd. 2012
Ghost Zone - Selected Results Hole Number
Intersection (Metres) (Metres) Gold Grade
(g/t) From To True Width
GZ12-004 595.8 599.0 2.9 7.10
GZ12-006B 535.4 548.0 9.8 5.91
GZ12-009B 526.9 536.1 5.8 3.89
GZ12-011 566.7 585.0 14.5 4.93
GZ12-013 563.5 571.0 6.1 5.28
GZ12-013 573.5 576.5 2.4 9.56
GZ12-013 579.0 585.0 4.9 4.11
GZ12-014 456.5 484.2 17.8 3.82
GZ12-015 494.4 502.5 5.4 4.17
GZ12-017B 583.5 601.5 15.2 4.16
GZ12-019 556.5 571.5 11.2 7.85
GZ12-023 404.6 423.5 12.3 6.34
* See press release dated May 7, 2012 and July 31, 2012
17 © St Andrew Goldfields Ltd. 2012
HOLT – Zone 4 *Reserves for Zone 4
1,215,713 t @ 5.18 g/t Au
(202,316 ounces)
925m Level
1075m Level
Underground
Drilling
Drilling Targets from
Surface
Highlights of Underground Drilling
13.01/ 11.6m
11.30/ 13.5m
6.80/ 12.8m
10.20/ 12.5m
9.32/ 20.7m
7.34/ 18.1m
8.32/ 21.4m
11.28/ 12.8m •g/t Au/metres
•All lengths are core length
18 © St Andrew Goldfields Ltd. 2012
Hislop North Project
See press release dated July 31, 2012
19 © St Andrew Goldfields Ltd. 2012
Hislop North - Selected Results
Hole Number
Intersection (Metres) (Metres) Gold Grade
(g/t) From To True Width
H12-003 45.0 107.2 62.2 1.97
incl 45.0 55.5 10.5 3.63
incl 85.5 97.1 11.6 5.10
H12-005 83.1 84.1 1.0 32.00
H12-006 157.0 164.0 7.0 2.91
incl 157.0 158.0 1.0 8.81
incl 163.0 164.0 1.0 7.42
H12-008 102.8 127.2 24.4 8.56
incl 106.5 118.5 12.0 11.29
H12-010 101.9 111.9 10.0 9.72
incl 109.5 111.0 1.5 32.00
* See press release dated May 7, 2012 and July 31, 2012
20 © St Andrew Goldfields Ltd. 2012
Exploration Resulted in Significant
Increases in Resources and
Reserves
Replaced all mined
Mineral Reserves
and
added an additional 43,000 ounces
Proven & Probable Reserves
~700,000 Ounces
Increase in M&I Mineral
Resources by
11% since 2009
Measured & Indicated Resources
~3.2 Million Ounces
* Mineral Resources are inclusive of Mineral Reserves, see Company website for more details
21 © St Andrew Goldfields Ltd. 2012
Share Structure
368.2 million Shares
Outstanding
Stock Options
Fully Diluted
12.5 million
380.7 million
Major Shareholders
Abramson Family
Trapeze Asset Management
Sprott Asset Management
* Share structure as of October 31, 2012, Market Cap as of November 8, 2012
Market Capitalization ~170 Million
22 © St Andrew Goldfields Ltd. 2012
2012 Capital Expenditures
2012E
Total Capex (in millions of C$)
Holt Mine ~$17
Holloway Mine ~$10
Hislop Mine ~$ 2
Holt Mill ~$ 2
TOTAL ~$31
Taylor Project (less revenues from bulk sample)
~$ 6
23 © St Andrew Goldfields Ltd. 2012
Cash Flow and Cash Resources As of September 30, 2012
Cash and cash equivalents $20.7 million
Revolving Credit Facility US$10.0 million (undrawn)
Bank Debt* US$13.0 million
*interest rates vary depending on the Company’s total debt ratio and ranges between 2.00% and 2.75% above prime,
based on prime rate advances, or 3.00% and 3.75% above LIBOR, based on LIBOR advances.
*the Company must make semi-annual payments of US$2million to reduce the term credit owing. in September, SAS
made its first semi-annual payment of US$2million on the term debt.
Estimated Operating Cash Flow for 2012* ~$58 million
*based on 95,000 ounces at cash costs of US$995/ounce, and an average annual POG of US$1,600
Nine Months Ended September 30, 2012
EPS (fully diluted) $0.04
CFPS (fully diluted) $0.09
24 © St Andrew Goldfields Ltd. 2012
Experienced Team
Louis Gignac (Chairman) D. Eng David Michael Petroff B.MATH, MBA
Herbert Abramson Catherine A. Gignac Jacques Perron P. Eng.
John Hick B.A., LLB Graham Farquharson P. Eng. Warren Seyffert Q.C.
DIRECTORS
Jacques Perron P.Eng
President and CEO
Formerly Senior VP, Operations with IAMGOLD and Cambior.
Ben Au
CFO and VP of Finance
Formerly Controller with Agnico-Eagle Mines.
Duncan Middlemiss P.Eng
COO and VP Operations
Formerly Mine Manager with Kirkland Lake Gold and Chief Mine Engineer for Holt-McDermott Mine (Barrick).
Pierre Rocque P.Eng
VP of Engineering
Formerly Director of Technical Services with Lakeshore Gold
Corp., and AMEC Americas Ltd.
Doug Cater P.Geo
VP of Exploration
Formerly with Sabina Silver Corp and Dundee Precious
Metals.
SENIOR MANAGEMENT
25 © St Andrew Goldfields Ltd. 2012
Q4 Goals and 2013 Objectives
26
APPENDIX
27 © St Andrew Goldfields Ltd. 2012
Holt Mine – LONG SECTION LOOKING NORTH
Zone 4
1075 Level
775 Level
925 Level
Exploration Potential – future drilling
*Reserves for Zone 4
1,215,713 t @ 5.18 g/t Au
(202,316 ounces)
*Reserves (Proven & Probable)
2,408,125t @ 5.36 g/t Au (415,148 ounces)
* As at December 31, 2011
Zone 6 Upper
Zone 6 Lower
775 Level
925 Level
1075 Level
Completed development
Planned development
Mined stopes
300 m
28 © St Andrew Goldfields Ltd. 2012
550 Level Blacktop Drift
Blacktop
Zone 3000
Elev
3000
Elev
Surface
867m, shaft
bottom
Blacktop
Exhaust Raise/ Backfill
Lightning Zone
Holloway Mine – LONG SECTION LOOKING NORTH
1km
Smoke Deep
Zone Smoke Deep Zone
Decline Ramp
780m Level
Ventilation
raise
*Reserves (Proven & Probable) 224,000t @ 4.29 g/t Au
(30,800 ounces)
* As at December 31, 2011 Exploration Potential future drilling
Backfill raise
Completed development
Planned development
Mined stopes
29 © St Andrew Goldfields Ltd. 2012
Hislop Mine - LONG SECTION LOOKING NORTH
*Reserves (Proven & Probable)
1.5 M tonnes @ 1.88 g/t Au (92,587 ounces)
1.5km
West Pit – Reserves (included in total reserves)
0.5 Mt @ 1.99 g/t = 30,700 oz
Re-optimizing Pit Design
East Pit – Reserves (included in total reserves)
1.1 Mt @ 1.83 g/t = 61,831 oz
* As at December 31, 2011
Mined-out
LOM Strip Ratio 4.8 : 1 waste : ore
mined out overburden removed
*On surface ore stockpile
37,000 t @ 1.43 g/t Au (1,692)
To be mined Historic underground workings
30 © St Andrew Goldfields Ltd. 2012
Taylor Project - Timeline
WPZ Advanced
Exploration Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q4/2013 Q2/2014
Pre-feasibility Study
Dewatering and
Rehabilitation
Initial Bulk Sampling
Program (top of zone)
Ramp Development to
depth of known zone
Second Bulk Sampling
Program (bottom of zone)
Commercial Production
COMPLETED
COMPLETED
31 © St Andrew Goldfields Ltd. 2012
Mineral Resources - December 31, 2011
Measured Indicated Inferred
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Holt Mine 2,981 5.45 522 2,801 6.29 567 1,045 6.81 229
Holloway Mine 396 4.53 58 352 4.60 52 2,755 5.10 452
Hislop Mine 37 1.43 2 5,686 1.95 357 5,338 1.80 309
Taylor Project 0 0.00 0 2,625 5.42 457 1,929 3.96 246
Aquarius Project 0 0.00 0 23,111 1.50 1,106 502 0.80 14
Clavos Project 26 7.80 6 117 8.10 31 529 6.50 110
At December 31, 2011 3,440 5.32 588 34,692 2.31 2,570 12,098 3.50 1,360
At December 31, 2010 2,654 5.21 445 33,564 2.22 2,392 9,383 3.67 1,106
Notes:
• Mineral Resources are inclusive of Mineral Reserves;
• Mineral Resources were estimated according to CIM Definition Standards – For Mineral Resources 2010;
• Mineral Resources for Holloway and Holt were estimated using an average long-term gold price of US$1,200 per ounce and an exchange rate of $1.00 = US$0.98;
• Mineral Resources for Holloway and Holt were estimated at a cut-off grade of 3.0 g/t Au;
• Mineral Resources for Hislop were estimated at a cut-off grade of 0.94 g/t Au, and uses an average long-term gold price of US$950 per ounce and an exchange rate of $1.00 = US$0.85;
• There was an ore stockpile consisting of approximately 37,000 t grading 1.40 g/t Au from Hislop at December 31, 2011;
• Mineral Resources for Taylor were estimated using a cut off grade of 2.5 g/t Au, and uses an average long-term gold price of US$1,200 per ounce using an exchange rate of $1.00 = US$0.98
• Mineral Resources for Aquarius are as of the October 2, 2006, RPA Technical Report. Mineral Resources were calculated using a long term gold price of US$500 per ounce and an exchange rate of $1.00 = US$0.90. No cut-off grade is applied because
of uncertainty about selectivity within the deposit;
• Mineral Resources for Clavos are as of the October 2, 2006, RPA Technical Report. Mineral Resources were estimated at a cut-off grade of 4.0 g/t Au, using a long-term gold price of US$500 per ounce. Mineral Resources for the Clavos Project do not
reflect development activities in the mineralized areas from October 2006 until May 2007;
• The Clavos Project was optioned to Sage Gold Inc. in 2010 whereby Sage Gold Inc. can earn-in a 60% interest in the property by completing $3.0 million of exploration and paying approximately $260,000 (in cash and shares) to SAS over a three year
period;
• Tonnes and gold ounce information is rounded to the nearest thousands as such, rows and columns may not add exactly due to rounding.
32 © St Andrew Goldfields Ltd. 2012
Mineral Reserves – December 31, 2011
Proven Probable Proven & Probable
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Tonnes
(‘000)
Grade
(g/t Au)
Ounces
Au
(‘000 oz)
Holt Mine 860 4.92 136 1,548 5.61 279 2,408 5.36 415
Holloway Mine 153 4.26 21 70 4.35 10 224 4.29 31
Hislop Mine 37 1.43 2 1,498 1.89 91 1,534 1.88 93
Taylor Project 0 0 0 985 5.45 173 985 5.45 173
At December 31, 2011 1,050 4.70 159 4,101 4.19 553 5,151 4.29 711
At December 31, 2010 982 4.25 134 4,399 3.76 532 5,382 3.85 666
Notes:
• Mineral Reserves are included within the Mineral Resources;
• Mineral Reserves were estimated according to CIM Definition Standards – For Mineral Reserves 2010;
• Mineral Reserves for Holloway Holt and Hislop were estimated using an average long-term gold price of US$1,100 per ounce and an exchange rate of $1.00 = US$0.98;
• Mineral Reserves for Holloway and Holt were estimated using a cut-off grade of 3.5 g/t Au;
• Mineral Reserves for Hislop were estimated using a cut-off grade of 1.7 g/t Au;
• There was an ore stockpile consisting of approximately 37,000 t grading 1.40 g/t Au from Hislop at December 31, 2011;
• Mineral Reserves for Taylor were estimated using a cut off grade of 3.5 g/t Au, an average long-term gold price of US$1,319 per ounce and an exchange rate of $1.00 = US$0.99
• Tonnes and gold ounce information is rounded to the nearest thousands as such, rows and columns may not add exactly due to rounding.
33 © St Andrew Goldfields Ltd. 2012
HOLT- Ghost Zone Drilling
See press release dated July 31, 2012
34 © St Andrew Goldfields Ltd. 2012
www.sasgoldmines.com 20 Adelaide Street East
Suite 1500
Toronto ON M5C 2T6
Canada
Toll Free: 1-800-463-5139
Tel: 416-815-9855
Fax: 416-815-9437
TSX: SAS OTCQX: STADF
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