corporate presentation november 2012
DESCRIPTION
Corporate Presentation November 2012TRANSCRIPT
TSX: CRK OTCQX: CROCF FRANKFURT: XGC
A New Mid-Tier Gold Producer
CORPORATE PRESENTATION
TSX:CRK OTCQX: CROCF
Forward Looking Information
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This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but are not limited to, statements with respect to the development potential and timetable of the projects; the Company’s ability to raise additional funds as necessary or on commercially reasonable terms; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology 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 information is based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors consultants and management involved in building a mine and other factors described in the technical reports and Annual Information Form filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scoping study. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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 information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves.
Certain information contained herein may be considered to be future-oriented financial information, which was designed and approved by management of Crocodile Gold for the purposes of assessing the value of the acquisition. Readers are cautioned that such information may not be appropriate for their use, and readers should consult their financial advisors as appropriate.
Bill Neilsen P.Geo. Vice President of Exploration at Crocodile Gold is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this presentation
Non-GAAP Measures
Crocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.
“Cash Cost per Ounce” is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency at the operations. It is determined by dividing the operating expenses, excluding stock-based compensation allocated to the operating expense and next of silver revenue, by the number of ounces of gold sold. There are variations in the method of computation of ‘cash cost per ounce” as determined by the Company compared with other mining companies. For more detail on Cash Cost per Ounce determination for Corocidle gold, please visit www.sedar.com or www.crocgold.com and review the latest Annual Financial Statements issued on March 19, 2012.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
Note for Page 5: For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: REPORT ON THE
MINERAL RESOURCES & MINERAL RESERVES OF THE NORTHERN TERRITORY GOLD AND BASE METALS PROPERTIES FOR CROCODILE GOLD CORP. dated April 4th, 2011; NI43-101 TECHNICAL
REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR CROCODILE GOLD CORP dated April 29th, 2012; NI43-101 TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIA
PREPARED FOR CROCODILE GOLD CORP dated April 9th, 2012. These documents are available on the company website and at www.sedar.com.
TSX:CRK OTCQX: CROCF
Investment Advantage
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Assets
Production
Exploration
Two operating mines and one new mine nearing commercial production:
One 2.4MM TPA central processing facility in the Northern Territory Complex at Union Reefs
Two 1.0MM TPA processing facilities in the State of Victoria
Expanding production profile with decreasing cash costs
New projects are being added to the production profile
Outstanding potential to discover additional resources
Extensive exploration project and development pipeline, with further joint venture opportunities
Australian-based production and exploration
Mineral Resources: M&I of 4.1 million oz, Inferred of 2.8 million oz
Over 4,000 sq. km land package with proven historical production
Significant infrastructure and accessibility
TSX:CRK OTCQX: CROCF
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Our Assets
TSX:CRK OTCQX: CROCF
Our Assets
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Burnside Property Cosmo - anticipated commercial
production in Q1 2013 West Howley / Rising Tide - ceased
production in Q2 2012 Ore processed at centralized Union Reefs
Mill
Production
Pre - Production International Pit (Pine Creek) –
Preparatory stage
Advanced Exploration Union Reefs Maud Creek
Victoria State Assets
Fosterville Stawell
Production
Northern Territory Complex Mineral Resources* Tonnes Au Grade Au
(MM) (g/t) (Koz)
Proven & Probable Reserves
Cosmo 3.1 4.2 420
Fosterville 2.4 4.7 365
Stawell 1.0 3.4 107
Pine Creek 3.0 1.7 162
Burnside 1.6 1.5 80
Reserves 11.1 3.2 1,134.0
Measured and Indicated Resources (incl. of Reserves)
Cosmo 5.3 4.6 776
Fosterville 13.9 2.9 1289
Stawell 4.7 2.6 399
Pine Creek 5.5 1.6 289
Union Reefs 0.2 2.4 18
Maud Creek 9.3 3.1 935
Burnside 11.3 1.4 493
Mt Bundy 20.2 1.0 664
M&I Resources 65.2 1.9 4,087.0
Inferred Resources
Cosmo 5.7 3.7 676
Fosterville 5.0 2.9 477
Stawell 1.0 4.7 145
Pine Creek 2.3 2.4 183
Union Reefs 3.7 1.7 204
Maud Creek 1.1 2.4 82
Burnside 13.0 1.5 647
Mt Bundy 10.5 1.0 350
Inferred Resources 42.4 2.0 2,764.0
*Please refer to cautionary language and Note for Page 5 on page 2 of this presentation
TSX:CRK OTCQX: CROCF
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Northern Territory Complex - Production / Pre-Production
Cosmo (Underground)
Asset on Burnside property, historically produced approximately 430 Koz Au since 1873 (with Howley)
Development initiated in February 2011
Trial stoping completed in Q1 2012
Production stoping initiated in September, with first transverse stope successfully extracted
Ramping-up and targeting 80,000 oz Au per year
Delineation drilling program confirming expectation in terms of grade and tonnage
Union Reefs Mill
Centralized CIL mill with a capacity of 2.4MM TPA
Gravity and Carbon-in-Pulp plan designed to recover gold from free-milling ore sourced from Burnside and Pine Creek
Plant is capable of recovering coarse gold by gravity concentration and fine gold by cyanide leaching and absorption on activated carbon
Union Reefs Mill, Northern Territory
TSX:CRK OTCQX: CROCF
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Northern Territory Complex - Production / Pre-Production
Pine Creek – International Deposit (Open Pit)
Located approximately 20 km from Union Reefs mill
Previously produced 745 Kt @ 1.6g/t for 31 Koz Au until mining ceased in 1995
Granted in-principle approval for redevelopment and proposed preparatory work; initiated surface drilling for optimizing and finalizing mining activities
Expected to produce 1.4 Mt @ 1.3g/t for 47 Koz over 3 year LOM (Waste:Ore - 3.5:1)
Next Steps
Q4 2012: Production decision
Q2 2013: Expect mining to start
Conceptualized pit
International Conceptualized
Open Pit
Union Reefs Mill
Prospect
Crosscourse
International
TSX:CRK OTCQX: CROCF
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Northern Territory Complex - Exploration Assets
Union Reefs -- Prospect Deposit
Located within 1 km from existing infrastructure
Historical production of 800 Koz Au from open pits (Anglo Gold); ore treated at the Union Reefs mill
Completed a 11,500 m drilling program; key exploration results include*:
Prospect: 4.2 m@27g/t Au, 2.5 m@240g/t Au
Crosscourse: 181.2 [email protected] g/t Au, 12.3 [email protected] g/t Au
Next Steps
Q3 2012: Update of resource model & desktop study
Q4 2012: Board decision on Phase II – Underground exploration decline
* Refer to Oct 13, 2011, Jan 20, 2012 and May 9, 2012 press releases for detailed results
Union Reefs, Prospect
and Crosscourse Union North
Lady Alice
Union
Reefs Mill
Complex
Prospect
Crosscourse
TSX:CRK OTCQX: CROCF
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Northern Territory Complex - Exploration Assets
Maud Creek
Near town of Katherine, 8 km from highway
Previously produced 174 Kt @ 3.3 g/t Au for 19 Koz Au
Desktop Scoping study - Conceptual design
Open pit to be followed by underground operation
Partially refractory ore; testing indicates 90-95% recovery by flotation with concentrates grading 3-6 oz/t
applicability of Fosterville BIOX® technology
Next Steps
Update of mineral resource, metallurgy and scoping study are expected this year
Q4 2012: Recommendation on next phase – revised resource estimate and desktop study in progress
Union Reefs Mill
Prospect
Maud Creek
International
Moline
TSX:CRK OTCQX: CROCF
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Victoria State Assets
Fosterville (Underground)
Located approximately 150 km north of Melbourne and 20 km from Bendigo, accessible by all weather roads
Producing since 1992 with own processing facility (capacity of 800 Ktpa) with a bacterial oxidation process uses BIOX technology
Expected to produce 82-87 Koz Au in 2012 (including production prior to May 4, 2012 acquisition)
Current mine life of 3 years based on reserves & resources; production of approximately 85-95 Koz Au annually
Recently announced results from high-grade gold intersections from drill holes on strike extension of the Phoenix ore body (Press Release dated Aug. 30, 2012)
Fosterville Production Facility
TSX:CRK OTCQX: CROCF
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Victoria State Assets
Stawell (Underground)
Located alongside the town of Stawell, in central Victoria, approximately 250 km west of Melbourne
Expected to produce 69-74 Koz Au in 2012 (incl. production prior to May 4, 2012 acquisition)
Standard CIL gold recovery circuit following crushing and grinding and sulphide flotation; processing capacity is 1.0MM tpa
Decision to ramp-down underground mining activities by end of 2013; will continue to provide cash flow due to savings on capital expenditure
Opportunity to economically treat historical surface stockpile beyond 2013
Next Steps
Q4 2012: Decision to carry out additional work on known deposit extension on the mining lease
Stawell Production Facility
TSX:CRK OTCQX: CROCF
Northern Territories
Suspension of surface mining occurred in Q2 2012
Ramp-up of Cosmo Mine
Production 40,000 to 45,000 ounces in 2012
State of Victoria
Integration of Fosterville and Stawell mines in Victoria.
Decision to ramp down U/G operations at Stawell
Production 151,000 to 161,000 ounces in 2012
Q3 – YTD Production
93,376 ounces
141,625 ounces, including FGM and SGM production prior to May 5th
Production 2012 – Outlook
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2012 Production Profile
2012 Cash Costs
2012 Cost Guidance $1,100 - $1,300 $2,028.00
$1,167.00 $1,176.00
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
Q1 Q2 Q3
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
0
10,000
20,000
30,000
40,000
50,000
60,000
Q1 Q2 Q3 Q4
Cu
mu
lati
ve O
un
ces
Ou
nce
s
CRK Total Total CRK Cumulative Total Cumulative
TSX:CRK OTCQX: CROCF
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Strategy
Exploration Goals
2012 Objectives
Exploration
Assessment of information collected in 2011 for
identification of next opportunities
Assessment of recently acquired land position in State of
Victoria
Advance Union Reefs & Maud Creek projects
Increase reserves from 1.1MM oz to 1.5MM oz
Increase resources from 7.6MM oz to 10.0MM oz
Growth through greenfield and brownfield exploration
TSX:CRK OTCQX: CROCF
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Our Growth Strategy
Short Term Medium Term Long Term
Maximize Value of Gold Assets
Advance projects such as Union Reefs and Maud Creek
Assessment of expanded land position in the State of Victoria
Consolidate assets
Explore
Continued investment in exploration on an annual basis
Focus on successful conversion of existing resources into reserves
Prioritization of higher quality deposits and projects
Value creating acquisitions
Focus on Higher Quality Ore
Ramp-up of Cosmo mine
Integration of Fosterville and Stawell operations
Reap benefits of increased scale and synergies, both in operations and in cost of capital
Permitting of International Mine (Pine Creek)
TSX:CRK OTCQX: CROCF
Capital Structure
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Share Structure (At October 31, 2012)
Basic: 406.4 Million
Warrants: 56.75 Million
Options: 029.8 Million
Fully Diluted: 493.35 Million
Market Capitalization: $137.3 Million
52 Week Trading Range $0.29 – $0.80
Source: Consensus estimates, Bloomberg. EDV pro forma acquisition of Avion.
Third Quarter 2012 Results
At September 30, 2012 (US$): Total Asset Value: 473,498,092
Cash Position: $20,383,957
Three months ended September 30, 2012 (US$): Revenue: $78,721,463
Operating Earnings: $7,028,408
Cash from Operations: $32,511,747
1.4x
1.2x
0.9x
0.8x 0.8x
0.7x 0.7x
0.5x
0.4x
0.2x
GSC RSG OGC SBM TGZ EDV BAA JAG CRK ORA
52 Week Share Price Performance Gold Producer P/NAV Multiples
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
TSX:CRK OTCQX: CROCF
Management
Chantal Lavoie, P. Eng., President & Chief Executive Officer, Chairman
Mr. Lavoie is a Professional Mining Engineer with extensive experience in mining operations and projects. Mr. Lavoie has spent the last eight years at De Beers Canada Inc. ("De Beers") where he was responsible for the Canadian operations of De Beers including Snap Lake and Victor mines, the Gahcho Kue project and was acting CEO of De Beers. Mr. Lavoie has also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at the former Louvicourt mine.
Rob Dufour, Director of Finance, Interim Chief Financial Officer
Mr. Dufour is a Chartered Accountant with over 10 years of finance and accounting experience. He started his career with the Toronto office of PriceWaterhouseCoopers and later joined Northgate Minerals Corporation as Corporate Controller and subsequently was promoted to Group Financial Controller for Northgate Australian Venture Corporation (NAVCO), which was more recently acquired by Crocodile Gold Corporation.
Bill Nielsen, P. Geo, Vice President Exploration
Mr. Nielsen is an accredited geologist with over 35 years of worldwide mineral exploration and development experience. Most recently, he has been working as a senior industry consultant to mining exploration companies working with a variety of commodities in various countries and geological environments. From 2003 to 2008, Mr. Nielsen was the V.P. Exploration of Nevsun Resources Ltd., where he played a significant role in the discovery of the Bisha gold-VMS deposit in Eritrea. He has worked for companies within the Forbes & Manhattan Group since early 2010.
Colinda Parent, Vice President Corporate Development
Ms.Parent has extensive capital markets experience having spent over 15 years in institutional equity sales and 5 years in investment banking in Toronto. Previously, Ms. Parent was one of the founders of Sandfire Securities, a Toronto-based institutional equity boutique focused on raising funds for and trading stocks in small and mid-cap Canadian-listed resource companies. She also served on the Board and Executive Committee at Sandfire. Ms. Parent
is a CFA charter holder and has an MBA from the Ivey School of Business.
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Operations Team :
Ian Holland, General Manager, Stawell Gold Mine
Troy Cole, General Manager, Fosterville Gold Mine
Peter Crooks, General Manager, Northern Territory
TSX:CRK OTCQX: CROCF
Board Of Directors
George Faught, CA, Lead Director
Mr. Faught is a Chartered Accountant with over 25 years of senior management experience and is currently the Chief Executive Officer of Aberdeen International Inc. He has served as the Chief Financial Officer of publicly traded companies in the natural resources, financial services and pharmaceutical industries. Mr. Faught has broad financial management, corporate development and operating experience and from 1999 to 2005 served as the Chief Financial Officer for North American Palladium Ltd., a mid-tier platinum group metal producer. Prior to that, he served as Chief Financial Officer for Hudson Bay Mining & Smelting Co. Ltd., an integrated base metals producer, and William Resources Inc., an international gold producer. He also serves as a director of several public companies in the resource sector.
Robert Getz, MBA, Director
Mr. Getz is a managing director and a co-founder of Cornerstone Equity Investors, LLC. Mr. Getz has strong experience in public and private debt and equity financings and domestic and international mergers and acquisitions. Mr. Getz has served as a director of several public and private metals and mining companies. He completed a B.A., cum laude, International Relations at Boston University in May 1985, and obtained his MBA, Finance in February 1990 from The Stern School of Business at New York University.
Kevin Conboy, Director
Mr. Conboy was President and Chief Executive Officer of Acordia, Inc., a subsidiary of Wells Fargo based in Chicago. As well, he served as Chief Executive Officer for the NIA Group of Paramus, New Jersey. Mr. Conboy possesses a wealth of experience in the financial markets and has considerable exposure to financial instruments and business transactions. He sits on a number of corporate and charitable boards. Mr. Conboy completed a B.A. from Colorado State University in 1973.
Peter Tagliamonte, P. Eng., Director
Mr. Tagliamonte is a professional mining engineer and also holds an MBA from the Richard Ivey School of Business, at the University of Western Ontario. He is currently the President and CEO of Sulliden Gold, the former President and CEO of Central Sun Mining Inc. and former Chief Operating Officer of Desert Sun Mining Corp. where he was responsible for the development of the Jacobina Mine in Brazil into a 4,200-tonne-per-day mining operation. Mr. Tagliamonte has over 25 years of progressive managerial experience building and operating mines worldwide, notably in Central and South America. In 2005, he received the Mining Journal's "Mine Manager of the Year" award in recognition for his work in the mining sector.
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On February 29, 2012 a new Board of Directors was constituted and Chantal Lavoie was appointed as Chairman.
TSX:CRK OTCQX: CROCF
Investor Contact Information
Chantal Lavoie Chairman, President and CEO 416-861-2964 [email protected]
www.crocgold.com Find us on:
A Member of the Forbes & Manhattan Group of Companies
Investor Relations Rob Hopkins 416-861-5899 [email protected]
TSX: CRK OTCQX: CROCF FRANKFURT: XGC
Crocodile Gold Corporation
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