international mineralsmar13presentation
TRANSCRIPT
1
“Silver Producer with a Golden Future”
PDAC Trade Show and Investors Exchange
March 2013
www.intlminerals.com
2
Cautionary Statement
Some of the statements contained in this presentation are “forward-looking statements” within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements in this presentation include statements regarding drilling and development programs on the Company’s projects, timing of commencement of production, reserve/resource additions, completion of feasibility studies, obtaining of required environmental and production permits, timing and significance of future cash flows and dividends.
Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserves; risks relating to project capital, production costs and cash flows; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risk; general financial market and credit risks; other risks and uncertainties detailed in the IMZ’s Annual Information Form (dated September 28, 2012) and Management Discussion and Analysis for the year ended June 30, 2012, both of which are available at www.sedar.com.
Any forward-looking financial information provided may not be appropriate in relation to reporting under International Financial Reporting Standards (IFRS). Please refer to the Company’s latest financial statements and notes. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Qualified Person: The Company’s VP Corporate Development, Nick Appleyard.
Dollar and Year References: “$” and “US$” refer to US dollars unless otherwise noted. Years refer to the respective calendar year unless otherwise noted as fiscal year (June 30).
Au = gold; Ag = silver; g/t = grams per metric tonne; M = million; $M = million dollars; Mt = million tonnes; oz or ozs = troy ounces; tpd = metric tonnes per day; Gold-to-Silver ratio for gold equivalent ounces based on 55:1 for production statistics and variable ratio for reserves and resources based on Technical Reports.
3
Focus: Gold and Silver Deposits in the Americas
Large Reserve Base: 1.3M Gold Equiv. Proven + Probable ozs
7.9M M + I Resources (includes Reserves)
Pallancata Silver Mine, Peru (40% IMZ, 60% Hochschild)
Estimated Production in 2013: ~8.8 Million Silver Equiv. ozs
Inmaculada Gold-Silver Project, Peru (40% IMZ, 60% Hochschild)
Production Start-up: 2H 2014
Production: ~200,000 Gold Equiv. ozs/year
Nevada (100% IMZ)
Gemfield Gold Mine: Estimated Start-up mid-2015
Converse Gold Deposit: Project under review
Ecuador:
Pending sale of assets
Financial Strength: $57M in Cash and Debt Free
Initial Dividend of C$0.12/share (approx. 2.9% yield) paid Jan 31, 2013
Overview
Pallancata, Peru
Peru 14%
USA 86%
M + I Resources
(Au Equiv. Ozs)
4
Shares Issued: 117.6 million
Fully Diluted Shares: 121.4 million
Options: 3.8M
Recent Share Price: C$4.19
52-Week Range: C$4.00-C$5.81
Capital Structure and Stock Performance
Dundee Securities (C) – D. Mah
National Bank (C) – S. Parsons
TD Securities (C) – S. Green
Dahlman Rose (US) – A. Graf
Bank Vontobel (SW) – P. Rafaisz
Canaccord Genuity (UK) – T. Dudley
Zürcher Kantonalbank (SW) – M. Schreiber
Analyst Coverage
Listings - Toronto and Swiss: Symbol “IMZ”
Swiss Performance Index (SPI): Top 100
Market Capitalization: C$486 million
(~$491 million)
Cash: $57 million
Debt Free
One year relative performance
Weighted in US$
GDJX -44%
GOLD -7%
HUI -30%
IMZ -22%
5
Key Financial Data - Fiscal years end June 30th
10%
5%
0%
Re
turn
on
Eq
uit
y %
% Return on Equity (Cont. Ops; Pre-Tax Basis)
Pre-Tax Net Income from
Continuing Operations
15%
7.2%
US
$M
illio
ns
Pre-Tax Cash Flow from Continuing
And Discontinued Operations
09 11 10 12
20% 20.6%
Note: Effective fiscal year 2011, numbers reflect adoption of IFRS.
13
* annualized
US
$M
illio
ns
$10
$40
$0
-$5
$30
4.0
09 11 10 12
$20
$50
$60
$70
$80
35.9
18.9
39.7
19.3
72.4
$10
$5
$0
-$5
$15
09 11 10 12
$25
56.7
$35
$30
16.2
$45
$20
$50
$55
$60
15.3
Min
e R
oyalt
y
30.4
29.1
9.8%*
$40
8.8% 9.5%
8.7
8.6
13 (year-to-date)
13 (year-to-date)
6
Property Locations
7
Production
Development
Drill Targets
Pallancata
Converse
Gemfield (Est Prodn 2015)
Inmaculada (Est Prodn 2014)
Project Pipeline
Peru
U.S.A. (Nevada)
Del Oro/Rye Acoma
McMahon Ridge/Goldfield Main
Pallancata, Peru
Stonewall Spring
8
Reserves / Resources
Notes: 1. Average Au equiv conversion of 61:1 Ag to Au ratio for reserves and 62:1 for resources.
2. P+P = Proven and Probable Reserves
3. M+I = Measured and Indicated Resources
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
M+I Resources (83%)
(Total 7.89 M ozs Au Eq)1,3
P+P Reserves
(Total 1.32 M ozs Au Eq)1,2
Inferred Resources (17%)
(Total 1.65 M ozs Au Eq)1
5.5
Go
ld E
qu
iva
len
t O
un
ce
s (
Millio
ns
) 6.0
10
5
0
Go
ld E
qu
iv
(Mil
lio
n O
zs
)
08 10 07 09 Total M+I Gold Equiv Resources
11 12 Go
ldfi
eld
(10
0%
)
Co
nve
rse
(10
0%
)
USA
Pa
lla
nca
ta (
40
%)
Inm
ac
ula
da (
40
%)
Peru
Peru 14%
USA 86%
M + I Resources
(Au Equiv. Ozs)
Goldfield, Nevada
9
Major Project Summaries – Attributable to IMZ
Pallancata
(40%)
Inmaculada
(40%)
Gemfield
(100%)
Location Peru Peru Nevada
Metals Ag + Au Au + Ag Au
Type of Operation Underground Underground Open Pit
Status Production Development Development
Production Date N/A 2H 2014 Mid 2015
Annual Production 3.0M ozs Ag
10,400 ozs Au
50,000 ozs Au
I.7M ozs Ag
66,000 ozs Au
Estimated Mine Life (1) 3.5 years 6.5 years 7.0 years
Initial Capital Costs N/A $112M $133M
Total Cash Costs/oz (2) $11-12/oz Ag $265-275/oz Au $600-650/oz Au
Economic Parameters(3)
at $1,500 Au, $25 Ag:
• P+P Cash Flow $80-100M $335M $229M
• NPV @ 8% Disc. Rate $70-80M $188M $110M
• IRR --- 55% 29%
(1) Mine life does not include current resources.
(2) Total cash costs/oz per the Gold Institute definition.
(3) All amounts are pre-tax.
10
Pallancata76M oz M+I Ag Eq
(160 sq km)
Central Area(370 sq km)
Selene
Inmaculada1.5M oz M+I Au Eq
(210 sq km)
10 km
100% Hoch
60% Hoch40% IMZ}
Pallancata Silver Mine (40% IMZ), Peru
Pallancata West
Central
Zone
Main
Structure
To Mariana/
Mercedes/
San Javier
(Looking Northwest)
Suyamarca River
Ranichico
Mercedes
Camp
Pallancata- Plan View
Central Zone
(35% 2013 prodn.)
View of Photograph
Pallancata West
(37% 2013 prodn.)
Rina
Pallancata East
(9% 2013 prodn.)
District Map
19% 2013 prodn.
11
Pallancata Mine, Peru (40% IMZ)
Mine • Underground, 3,000 tpd
• Flotation circuit (concentrate)
• Recoveries: 83% Ag, 70% Au
Mine Life • ~3.5 years (not including resources)
2012 2013E
Ore production (tonnes) 1,070,500 t 1,050,000 t
Head grade Ag/Au 256 g/t /1.1 g/t 261 g/t / 1.1 g/t
Production Ag/Au (oz) 7.44M oz Ag
26,000 oz Au
7.4M oz Ag
26,000 oz Au
Direct site costs/oz Ag
(net of gold credit)
$5.14
$6.70-7.00E
IMZ total cash costs/oz Ag
(net of gold credit)
$9.16 $11.00-12.00E
2013 Est. Operating Cash Flow to IMZ
Ag Price / Ounce
$55
$28 $30 $32 $34 $36 $38
$45
$35
$ 25
Millio
ns
$40
$65
$49
$43
$31
$25
$61
Post-Capex/Pre-Tax
2013E 2009 2010
100% Production (40% to IMZ)
7.4
26
8.4
32
10.1
36
2011
8.8
34
2012
26
7.4
Gold (,000 ozs) Silver (M ozs)
$55
$37
Note: Direct site costs and total cash costs per Gold Institute definition.
12
Pallancata - Resources Replace Production; Inmaculada is Growing!
-
20
40
60
80
100
120
140
160
180
0
20
40
60
80
100
120
140
160
180
Se
p-0
7
No
v-0
7
Jan
-08
Ma
r-0
8
Ma
y-0
8
Ju
l-0
8
Se
p-0
8
No
v-0
8
Jan
-09
Ma
r-0
9
Ma
y-0
9
Ju
l-0
9
Se
p-0
9
No
v-0
9
Jan
-10
Ma
r-1
0
Ma
y-1
0
Ju
l-10
Se
p-1
0
No
v-1
0
Jan
-11
Ma
r-1
1
Ma
y-1
1
Ju
l-1
1
Se
p-1
1
No
v-1
1
Mil
lio
ns o
f O
un
ce
s
Milli
on
s o
f O
un
ce
s
Pallancata Silver Equiv. Resources
M&I ounces Inferred ounces Mined Ounces
Inmaculada M&I Inmaculada Inferred
Note: For initial investment of ~$5M, IMZ has received ~$120M in cash distributions from Pallancata
Pallancata Mined Ag Eq ozs: ~48M
Inmaculada M + I
Resources
Inmaculada Inferred
Resources
0
13
0 0.5 1.0
Kilometers
Angela Vein
Tensional Lourdes
Cymoid
Angela SW
Plan View – Multiple Veins near to Angela Vein*
Inmaculada
Further potential along Angela Vein (Long Section looking Northwest)*
Inmaculada Project (40% IMZ), Peru
*Source: Hochschild Mining Plc
Vein Outcrop
Approximate Eastern
Limit of Feasibility Study
Development adit at Inmaculada
14
Inmaculada, Peru - IMZ 40%
Operation • Underground, 3,500 tpd
• Conventional cyanidation (dore)
• Recovery: 96% Au, 91% Ag
Mine Life • 6.5 years (basis initial reserves)
Production
Estimates • Average/year: 124,000 oz Au, 4.2M oz Ag
• Direct cash costs /oz Au: $133 (net of Ag credit)
• Total cash costs/oz Au: $172 (net of Ag credit)
Initial Capital • $315M: Jan 2012 Feasibility Study
• $370M: Nov 2012 update
• Debt financing of $140M planned in March 2013
Feasibility Study
Base Case
Economics
$1,100 Au, $18 Ag
• NPV0%: ~$323M ($194 after-tax)
• NPV5%: $181M ($90 after-tax)
• IRR: 18% (12% after-tax)
Feasibility Study
Sensitivity
$1,500 Au, $25 Ag
• NPV0%: $821M ($492 after-tax)
• NPV5%: $551M ($313 after-tax)
• IRR: 38% (27% after-tax)
Outlook • Permitting ongoing, decline underway
• Production date : 2H 2014
Production Estimates
(100% Basis)
35
1.0
136
121
4.3
5.0 108 5.0
2014 (3 months)
2015 2016 2017
Gold (,000 ozs) Silver (M ozs)
2015 Est. Pre-tax Operating Cash Flow to IMZ
Au Price / Ounce
$1000 $1200 $1400 $1600 $1800
$100
$75
$50
$ 25
Millio
ns
$125
$2000
$129
$112
$44
$61
$78
$95
$2200
$150 100% Basis $146
15
Goldfield, Nevada - IMZ 100% - Development Stage
Three Gold Deposits (Gemfield, McMahon Ridge, Goldfield Main)
P+P Reserves*: 0.51M oz Au (14.3Mt at 1.1 g/t Au)
M+I Resources: 1.23M oz Au (31.1Mt at 1.2 g/t Au)
Inferred Resources: 0.44M oz Au (10.9Mt at 1.3 g/t Au)
Targeting Heap Leach Prodn in Mid 2015 (Gemfield only)
Basic engineering to be completed by Q2 2013
66,000 Au ozs/year, 6,000 tpd open-pit heap leach operation
• Possible 7,500 tpd scenario with 14% lower
processing costs and G & A
Capex estimate: $133M (Plant/Infrastructure $93M, Mine $20M, Road $20M)
Total cash cost: $600-650/oz Au
New mine plan and updated resources and reserves in Q2 2013
Testing new drill targets outside of existing mineralized areas
* Gemfield deposit P+P Reserves included in M+I Resources.
16
Reno - 4.5 hours
Las Vegas - 2.5 hours
Goldfield, Nevada – Principal Gold Deposits
X-section
17
Goldfield, Nevada: Gemfield Deposit Feasibility Study - July 2012
Operation • Open Pit, 6,000 tpd (possible 7,500 tpd (1))
• Heap leach (dore)
• Recovery: 84% Au
Mine Life • 7 years (basis initial reserves)
P&P Reserves (2)
$1,350/oz Gold
• 511,000 oz Au (14.3 Mt @ 1.1 g/t Au)
M&I Resources(2)
(includes reserves)
Inferred Res. (2)
• 574,000 oz Au (17.0 Mt @ 1.0 g/t Au)
• 74,000 oz Au (4.2 Mt @ 0.6 g/t Au)
Production
Estimates • Average/year: 66,000 oz Au
• Direct cash costs /oz: $526
• Total cash costs/oz: $611
Initial Capital • $133 million (based on feasibility study July 2012)
Base Case
Economics $1,350 Au
• NPV0%: ~$168M ($132M after-tax)
• NPV 7%: $ 83M ($59M after-tax)
• IRR: 22% (18% after-tax)
Outlook • Permitting ongoing, basic engineering underway
• Production Date: Mid 2015
Production Estimates
40
83
75
2015 Est. Pre-tax Operating Cash Flow (3)
Au Price / Ounce
$1000 $1400 $1800
2015 (6 months)
2016 2017
Gold (,000ozs)
$40
$30
$20
$ 10
Millio
ns
$50
$2200
$68
$52
$20
$36
(1) See November 1, 2012 press release on Gemfield update.
(2) Silver is not material.
(3) Production and pre-tax operating cash flow on operating year basis.
$70
$60
See appendix for details of July 2012 Feasibility Study.
$1200 $1600 $2000
$28
$44
$60
18
Converse, Nevada – Location Map and Project Summary
Trout Creek
Trenton Valmy
Trenton North Peak
Phoenix
Fortitude
80
4 4 9 0 0 0 0 N
4
5 0 0 0 0 0 N
4
5 2 0 0 0 0 N
490000E 470000E
Humboldt County
Lander County
Humboldt County
Pershing County
Converse IMZ MARIGOLD MINE
VALMY
Trenton Canyon Main
NEWMONT COPPER BASIN AREA
BUFFALO VALLEY MINE
NEWMONT COPPER CANYON AREA
LONE TREE MINE
480000E
80
Gold Mine, deposit
IMZ- fee land
IMZ- BLM land
N
GOLDCORP/BARRICK
45
10
00
0N
NEWMONT
NEWMONT
0 1 2 3
Miles
TRENTON CANYON MINE NEWMONT
Measured and Indicated resources: 5.2M ozs Au
(320Mt at 0.5 g/t Au, 3.7 g/t Ag)
Inferred resources: 0.5M ozs Au
Total drilling to date ~76,000 meters
2011 scoping study details:
• 45,000 tpd heap leach scenario
• Average annual Au production 160,000 ozs
• Mine life ~13.5 years
• Direct cash cost (net of Ag credit) ~$750/oz
• Total cash cost (net of Ag credit) ~$1,000/oz
• Capital cost ~$455M
• NPV @ 8% $1,200 Au: $70M
• NPV @ 8% $1,600 Au: $440M
Project under review
Converse, Nevada
19
5 Year Estimates: Project Time Lines
Pallancata, Peru
Inmaculada, Peru
Goldfield, Nevada(1)
Converse, Nevada
2013 2014 2015 2016
Q1 Q2 Q3
Under Review
Permit / Construction
Permit / Construction
Production
Production
2017
Production
(1) Goldfield: Heap leach scenario for Gemfield deposit only.
Pallancata, Peru
Goldfield, Nevada
20
5 Year Estimates: IMZ Production and Costs 2012-2017
80,000
60,000
2016E
2012
2013E
2014E
Go
ld E
qu
iva
len
t O
un
ce
s*
100,000
1. Pallancata: Basis Dec 31, 2011 reserve and resource estimates.
2. Inmaculada: Basis Jan 2012 Feasibility Study, with IMZ updates.
3. Goldfield: Basis July 2012 Feasibility Study.
4. Total cash and production costs are per the Gold Institute definition.
120,000
140,000
160,000
180,000
Pallancata (40% IMZ)
Total Cash Costs(4)
Goldfield (100% IMZ)
Total Production Costs(4)
Inmaculada (40% IMZ) 200,000
240,000
220,000
2015E
$800
$600
$400
US
$/o
z P
rod
uctio
n C
ost
$1000
260,000
280,000
300,000
320,000
$1100
$200
Inmaculada, Peru
* Gold Equiv ozs based on average 55:1 silver-gold ratio
** Industry-average costs basis GFMS Gold Survey 2012 updated Sept 2012 – figures are 1H 2012 average (excludes exploration costs).
2017E
$900
$700
$500
$300
Industry-Avg Total Prodn Costs**
1H 2012 ($930)
Industry-Avg Total Cash Costs**
1H 2012 ($727)
21
5 Year Estimates: Pre-tax Cash Flow from Ops + Equity Financing
$0
2013E
2014E
2015E
$200
$100
$1,000 gold
$1,500 gold
$1,800 gold
1.1. Goldfield: Basis July 2012 Feasibility Study.
2.2. Inmaculada: Basis Jan 2012 Feasibility Study, with IMZ updates (IMZ 40%).
3.3. Pallancata: Basis Dec 31, 2011 reserve and resource estimates.
4. 2012 does not include $38M from sale of Ruby Hill royalty.
5. Estimates based on Au equivalent ozs at Ag:Au ratio of 55:1.
$300
Goldfield (100% IMZ)
Pallancata (40% IMZ)
Inmaculada (40% IMZ)
2016E
2017E
$ 0
$200
$100
$300
$1000 Au
$1,500 Au
$1,800 Au
Inmaculada, Peru
2012
Angela Vein
Outcrop
$50M Equity Raise
22
5 Year Estimates: Total Costs Attributable to IMZ
(1) Goldfield: Basis July 2012 Feasibility Study. Initial capex of $133M reduced by $75M of debt financing in 2014. Includes sustaining capital.
(2) Inmaculada: Basis Jan 2012 Feasibility Study. Updated capex in Nov 2012. IMZ $112M share of initial capex estimate reduced by $50M of debt
financing in 2013/2014 as part of $140M project debt financing. Includes annual exploration estimates and sustaining capital .
(3) Pallancata: Basis Dec. 31, 2011 reserve and resource estimates. Includes annual exploration estimates and sustaining capital.
(4) Other costs include general exploration, G&A, dividend payments and debt repayments.
Goldfield(1)
Inmaculada(2)
Pallancata(3)
Other costs(4)
Projects (All-in cash costs) $60
$100
$0
$80
$40
$120
$20
$140
2012 2013E 2014E 2015E 2016E 2017E
$60
$100
$ 0
$80
$40
$120
$20
$140
Goldfield, Nevada
74
54
118 121
27
14
30
42
54 55
123 126
23
5 Year Estimates: Cum. Op. Cash Flow + Equity Financing vs Spending
$200
2012 2013E(1) 2014E(1,2) 2015E
$ 0
2016E
$600
$400
$800
$1,000
2017E
Cum. Spending
Cum. Op. Cash. Flow +
Equity Financing
@ $1,500 Au
$200
$ 0
$600
$400
$800
$1,000
Cum. Op. Cash Flow +
Equity Financing
@ $1,000 Au
(1) Assumes $140M debt financing in 2013/2014 at Inmaculada.
(2) Assumes $75M of debt financing and $50M of equity financing for Goldfield in 2014.
(3) Estimates based on Au equivalent ozs at Ag:Au ratio of 55:1.
Cum. Op. Cash Flow +
Equity Financing
@ $1,800 Au
24
Kir
kla
nd
Lak
e
Ala
mo
s
B2G
old
Au
ric
o
Lak
e S
ho
re
S
an
Go
ld
Tim
min
s
Ala
ce
r
Se
ma
fo
Arg
on
au
t
IMZ
GO
LD
CO
RP
BA
RR
ICK
AG
NIC
O
Enterprise Value Gold Resource Ounces (M+I only)
$200
$100
$50
EV
US
$/G
old
Re
so
urc
e O
zs
$250
$300
$350
$400
Source: -Company Disclosure, Bloomberg as of February 19, 2013. Based on most recent financials.
- Enterprise Value = market capitalization plus debt less cash.
16
14
12
10
8
6
M +
I (o
zs
)
18
2
20
$62
160 220 93
4
$150
$68
AN
GL
OG
OL
D
Go
lden
Sta
r
$77 $62
Total Resource Ozs
$61 $74
Au
rizo
n
$128
28
$109
$174 $194
$265 $286
$90 $75
$210
$192
$157
25
The Investment Case
Growing Production and Cash Flow
Pallancata (IMZ’s 40% interest)
• 2013: ~3.5M oz Ag Equiv. (64,000 oz Au Equiv.)
• 2013: ~$20-25M free cash flow
Inmaculada (IMZ’s 40% interest)
• Production date: 2H 2014
• 80,000 oz/year Au Equiv. (Avg LOM estimate)
• 2015 free cash flow: $60-65M
Growth from Nevada Project (IMZ 100%)
Production at Gemfield - mid 2015
“Call Option” on 5M M+I Au ozs at Converse
Maintain Active Exploration Program
Brownfield exploration on Goldfield lease, NV.
Central Nevada (Del Oro/Rye)
Southern Nevada (Stonewall Spring)
Southeastern Peru (Acoma)
Strong Balance Sheet
$57M in cash and debt-free
C$0.12/share Annual Dividend (~2.9% yield)
Camp at Inmaculada, Peru
Development Adit, Inmaculada, Peru
26
News Flow/Catalysts in 2013
Fiscal Q3 Financial Results: - Q2 2013
Nevada, USA:
Goldfield:
- Resource, mine plan and capital cost update - Q2 2013
Del Oro/Rye:
- Commence drilling - Q1 2013
Stonewall Spring:
- Commence drilling - Q2 2013
Peru:
Pallancata Resource/Reserve update - Q1 2013
Inmaculada project update - Q2 2013
Acoma – commence drilling - Q2 2013
Ecuador:
Sale of projects - H1 2013
27
Contact Information
Website: www.intlminerals.com
Email: [email protected]
Investor Relations
• Paul Durham
VP - Corporate Relations
Office phone: +1 (203) 883 8359
Cell Phone: +1 (203) 940 2538
Email: [email protected]
• Christine Stewart
Renmark Financial (Canada)
Toronto Office: +1 (416) 644 2020
Montreal Office: +1 (514) 939 3989
Email: [email protected]
Headquarters (U.S.A.)
• Scottsdale, Arizona: +1 (480) 483 9932
Fax: +1 (480) 483 9926
Email: [email protected]
• Oliver Holzer
Marketing Consultant (Europe)
Swiss office: +41 44 853 00 47
Mobile: +41 79 402 39 33
Email: [email protected]
28
APPENDIX & FOOTNOTES
1. See slides attached for the details of Pallancata and Inmaculada reserve/resource estimates. Please refer
to the Company’s NI 43-101 reports and related news releases filed on SEDAR for a discussion of
assumptions, parameters and material risk factors. Estimated mineral resources that are not mineral
reserves do not have demonstrated economic viability.
2. The Inmaculada feasibility study information and reserve and resource estimates were announced in a
news release dated January 11, 2012. A Technical Report on Inmaculada was filed by the Company on
SEDAR on February 24, 2012.
3. The Goldfield feasibility study information and reserve and resource estimates were announced in a news
release dated July 17, 2012. A Technical Report on Inmaculada was filed by the Company on SEDAR on
August 31, 2012.
4. The Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent
consultant R. Mohan Srivastava, a Qualified Person under NI 43-101 and has an effective date of February
1, 2011.
5. IMZ uses the Gold Institute’s definitions for costs per ounce:
Direct Site Costs per ounce: direct mining costs; processing; mined ore inventory adjustment; mine
G&A costs; and by-product credits.
Total Cash Costs per ounce: Direct Site Costs plus: management fees; product transportation,
smelting and refining costs; and taxes (other than federal income tax).
Total Production Costs per ounce: Total Cash Costs plus: depreciation and amortization.
Reclamation costs are not included by IMZ.
6. IMZ accounts for its 40% ownership of the Pallancata Mine and the Inmaculada project on an equity
accounting basis.
29
Pallancata - December 31, 2011 Reserves & Resources
Notes: 1. Gold equivalent and silver equivalent values based on 60:1 silver-gold ratio
2. Measured and Indicated Resources include Proven and Probable Reserves
3. Cut-off grade of 144 g/t silver.
4. Resource and reserve estimates have an effective date of December 31, 2011.
5. Numbers have been rounded in all categories to reflect the precision of the estimates.
6. Hochschild’s data and methodology were reviewed by IMZ’s VP of Corporate Development, Nick Appleyard and VP Special Projects,
Alan Matthews, both Qualified Persons as defined by National Instrument 43-101.
100% Basis (40% Attributable to IMZ)
Basis $1,080 gold, $18.00 silver
Reserves Million
Tonnes
Silver
(g/t)
Gold
(g/t)
Silver
(oz)
Gold
(oz)
Silver
Equiv (1)
(ozs)
Gold
Equiv(1)
(ozs)
Proven 2.74 289 1.4 25,487,000 121,000 32.8M 546,000
Probable 0.71 278 1.3 6,362,000 31,000 8.2M 137,000
Proven &
Probable
3.45 287 1.4 31,848,000 152,000 41.0M 683,000
Resources
Measured 4.20 382 1.8 51,500,000 238,000 65.8M 1,096,000
Indicated 0.82 323 1.5 8,506,000 40,000 10.9M 182,000
Measured &
Indicated (2)
5.02 372 1.7 60,006,000 278,000 76.7M 1,278,000
Inferred
Resources 2.81 347 1.5 31,335,000 132,000 39.2M 654,000
30
Pallancata Longitudinal Section - Looking Northeast
"
!
DDH OROVEGA
DDH HOC . ejecutado
DDH Programa 2010
DDH Programa 2011
SYMBOLS LITHOLOGIES
T. And. - Pómez
T. And. - Lapilli
L. And.Porf.
T. And.- Lit..
L. And.Afan. Domo / Flujo
Rhyodacite
Hipabisal
Diorite
! "Measured Resources
Indicated Resources
Inferred Resources
RESOURCES
EXTREMO
SUR ESTE
Domo Sarnahuiri
3,000
3,400
3,800
4,200
4,400
4,600
4,800
4,000
3,600
3,200
HUARARANI
NW PALLANCATA
SOUTHEAST PALLANCATA
CENTRAL
PALLANCATA
WEST PALLANCATA
EAST
EXTREME
SOUTHEAST
PALLANCATA
WEST = Areas Currently in Production
1,300m 5,000m
PALLANCATA
SOUTHEAST = Areas in Development
A A’
31
Inmaculada, Peru - Reserves & Resources- January 2012
1. Numbers are rounded to reflect the precision of a resource estimate.
2. Measured and Indicated Resources include Proven and Probable Reserves.
3. Cut-off grade for estimated Reserves is 2.3 g/t gold equivalent. Cut-off grade for estimated Resources is 1.5 g/t gold equivalent. Gold equivalent ounces are
estimated for mineral resources using a 60:1 silver to gold ratio.
4. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.
5. The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM),Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council December 11, 2005.
6. The reserve and resource estimates have an effective date of January 11, 2012.
Reserves Million
Tonnes
Gold
(g/t)
Silver
(g/t)
Gold
(oz)
Silver
(oz)
Gold Equiv
(oz)
Proven 3.84 3.4 106 421,000 13,125,000 640,000
Probable 3.96 3.3 134 424,000 17,796,000 707,000
Proven & Probable 7.80 3.4 120 845,000 30,140,000 1,347,000
Resources
Measured 3.28 4.1 128 430,000 13,500,000 655,000
Indicated 3.78 4.1 159 490,000 19,300,000 812,000
Measured & Indicated (2) 7.07 4.1 144 930,000 32,800,000 1,477,000
Inferred Resources 4.94 3.9 152 620,000 24,200,000 1,023,000
100% Project Basis, 40% Attributable to IMZ Base-Case: $1,100 Gold, $18.00 Silver
32
Inmaculada - Multiple Targets
21,000 ha. property
Inmaculada
Angela Vein
Angela Vein
Outcrop
33
10
10
50
50
100 10
50
4600 m
50
50
10
10
SW NE
4200 m
25
10
25
50
10
10
25
25
50
100
50
139
10
25
100
10
100
50
100
50
10
00
0
100
25
100
100
25
25
25
100
10
05
0
10
10
0
10
15
0
10
20
0
10
25
0
10
30
0
10
35
0
10
40
0
10
45
0
10
50
0
10
55
0
10
60
0
10
65
0
10
70
0
10
75
0
10
80
0
10
85
0
10
90
0
11
40
0
11
00
0
11
45
0
11
10
0
11
20
0
11
30
0
11
50
0
11
60
0
11
70
0
11
80
0
11
90
0
12
00
0
Meters
50 100 0 200
o
o
o
o
o
o
Surface
Grade-Thickness Contours: Au Equivalent (g/t) x true width (m)
Drill Holes with
No Significant Values
Drill Hole Mineralized Intercepts
25 50
10
100
o
Eastern Limit of Feasibility Study
Inmaculada - Angela Vein - Long Section (Looking Northwest)
4300 m
4400 m
4500 m
Inmaculada
Vein Outcrop
21,000 Hectares (210 sq km) - 60 km SW of Pallancata
Low-Sulfidation Epithermal Vein System
Over 2 km in Strike Length and 300m Vertical Extent
Open East and West and One of Multiple Veins on Property
99% of Known Mineralization Not Exposed on Surface
34
Inmaculada, Peru (40% IMZ, 60% HOC) – Jan. 2012 Feasibility Study Results
Item Units 100% Project IMZ 40%
Base Case gold price $ per ounce $1100 $1100
Base Case silver Price $ per ounce $18 $18
Initial Mine life years 6.3 6.3
Expected Production Date date Dec. 2013 Dec. 2013
Average annual gold production ounces/year 124,000 49,600
Average annual silver production ounces/year 4,204,000 1,682,000
Average annual gold equiv. production4 ounces/year 194,000 78,000
Life-of-mine gold production ounces 783,000 313,000
Life-of-mine silver production ounces 26,488,000 10,600,000
Life-of-mine gold equiv. production 4 ounces 1,220,000 488,000
Plant processing rate (3,500 tpd) tonnes/year 1,260,000 1,260,000
Metallurgical recovery – gold % 95.6% 95.6%
Metallurgical recovery – silver % 90.6% 90.6%
Initial capital 2 $ millions $315 $91
Direct site costs 3 per tonne processed $74 $74
Direct site costs3,5 per ounce Au (with Ag credit) $133 $133
Total cash operating costs3,5 per ounce Au (with Ag credit) $172 $262
IRR pre-tax/post-tax % 18% / 12% 26% / 21%
Pre-tax /post-tax cash flow (non-
discounted)
$ millions $323 / $194 $136 / $95
Pre-tax/post-tax NPV, 5% discount rate $ millions $181 / $90 $85 / $57
Pre-tax/post-tax NPV, 8% discount rate $ millions $120 / $46 $63 / $40
1. IMZ owns a 40% interest in the Inmaculada project. Under the joint venture agreement signed between IMZ and Hochschild, in December
2010, Hochschild must contribute the first $100 million of feasibility study, project development and capital costs with subsequent costs
funded 60% by Hochschild and 40% by IMZ. Hochschild will receive a 7% management fee as operator of Inmaculada.
2. Initial capital includes $25 million in contingency allowance and is based on Q4 2011 estimates. No escalation factors have been applied.
3. Direct site costs include mining, processing and mine administration. Total cash operating costs include direct site costs plus estimates of
refining charges and government royalty (but do not include workers profit sharing which is 8% of net income). IMZ costs also include
estimate of management fee.
4. Gold equivalent (“gold equiv.”) numbers are estimated using a silver-to-gold ratio of 60:1 calculated by using the ratio of the base case
metal prices.
5. By-product accounting is in accordance with the Gold Institute definition.
35
Inmaculada, Peru - Sensitivity to Gold & Silver Prices
Gold Price / Silver Price ($/oz)
BASE CASE
Category
$900 /
$15.00
$1,100 /
$18.00
$1,300 /
$21.00
$1,500 /
$25.00
$1,700 /
$28.00
$1,900 /
$31.00
IRR 5% / 9% 18% / 26% 28% / 40% 38% / 55% 46% / 67% 53% / 78%
Cash Flow
($ millions)
$88 / $42 $323 / $136 $559 / $231 $821 / $335 $1,057 / $429 $1,292 / $523
NPV 5%
($ millions)
$6 / $15 $181 / $85 $356 / $155 $551 / $233 $726 / $302 $901 / $372
NPV 8%
($ millions)
-$28 / $3 $120 / $63 $268 / $122 $433 / $188 $581 / $247 $729 / $306
Pre-tax Sensitivity Analyses 100% Project Basis v 40% Attributable to IMZ
(base-case in bold)
NOTE: $181 / $85 = 100% Project Basis / 40% Attributable to IMZ
36
Value Added by Acquisition of Ventura Gold
Ventura Gold Acquisition 2010 (for Inmaculada property)
US$ M
Acquisition cost, net 0.4
Exploration spending by IMZ 12.1
Total IMZ investment 12.5
Total Au Equiv. M + I ozs (IMZ 40% share) 0.59 M*
*excludes 0.41 M Inferred ozs
Cost Per Ounce (Au Equiv.) US$
Acquisition cost per ounce 0.68
Development cost per ounce 20.51
Total cost per ounce Au 21.19
Tangible Results to Date
Inmaculada under construction
Reduced IMZ initial capital obligations
Significant resource expansion potential
37
Milltown
Gemfield
Principal
Gold Deposit
Other Targets
Goldfield Main: 421,000 oz
Gemfield: 574,000 oz
McMahon Ridge: 238,000 oz
Gold Resources:1.2M M+I ozs
Goldfield, Nevada – Principal Target Areas
Main Goldfield
Reno - 4.5 hours
Las Vegas - 2.5 hours
McMahon
Ridge
Gemfield
Midnight
Belmont
NE
Goldfield
Tognoni
Tom
Keane
Central
Zone
Milltown
Mineral
Wealth
Sinter
Simerone
Es
me
rald
a C
ou
nty
Nye
Co
un
ty
Miles
0 0.5 1.0 1.5
38
Goldfield, Nevada - Mineral Resources - February 2011
Deposit Resources Tonnes Gold
(g/t)
Contained
Gold (oz)
Gemfield
(cut-off 0.3 g/t
gold)
Measured 12,182,000 1.1 438,000
Indicated 4,852,000 0.9 136,000
M & I 17,034,000 1.0 574,000
Inferred 4,173,000 0.6 74,000
Proven 11,041,000 1.2 412,000
Probable 3,246,000 0.9 99,000
P & P 14,287,000 1.1 511,000
McMahon
Ridge (cut-off
0.4 g/t gold)
Measured -------- ----- ---------
Indicated 5,514,000 1.3 238,000
M & I 5,514,000 1.3 238,000
Inferred 108,000 1.1 4,000
Goldfield
Main (cut-off 0.4
g/t gold)
Measured -------- ----- ---------
Indicated 8,549,000 1.5 421,000
M & I 8,549,000 1.5 421,000
Inferred 6,591,000 1.7 360,000
Total
Goldfield
(see cut-off
grades above)
Measured 12,182,000 1.1 438,000
Indicated 18,915,000 1.3 795,000
M & I 31,097,000 1.2 1,233,000
Inferred 10,872,000 1.3 438,000
Proven 11,041,000 1.2 412,000
Probable 3,246,000 0.9 99,000
P & P 14,287,000 1.1 511,000
*Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent consultant R. Mohan Srivastava, a Qualified Person under NI 43-101 and has an
effective date of February 1, 2011. Gemfield reserve estimate was prepared by D. Anderson of Micon International Ltd (July 2012). Gemfield and McMahon Ridge resource
estimates were calculated by R. Mohan Srivastava with an effective date of July 17, 2012.
39
Goldfield, Nevada - Gemfield Deposit: Feasibility Study Results- July 2012
Item Units 100% Project
Base Case gold price $ per ounce $1,350
Initial Mine life years 6.5
Average annual gold production ounces/year 66,000
Life-of-mine gold production ounces 430,000
Plant processing rate (6,000 tpd) tonnes/year 2,190,000
Average Metallurgical recovery – gold % 84%
Initial capital cost 1 $ millions $133
Sustaining capital cost $ millions $16
Direct site costs 2 per tonne processed $15.67
Cash operating costs (with Ag credit) 2,4 per ounce Au $526
Total cash operating costs (with Ag credit) 2,4 per ounce Au $611
IRR pre-tax/post-tax 3 % 22% / 18%
Pre-tax /post-tax cash flow (non-discounted) 3 $ millions $168 / $132
Pre-tax/post-tax NPV, 5% discount rate 3 $ millions $102 / $75
Pre-tax/post-tax NPV, 7% discount rate 3 $ millions $83 / $59
1) Initial capital of $133M includes $20M in contingency allowance and is based on Q2 2012 estimates. No escalation factors have
been applied. Capital breakdown: Plant and Infrastructure $93M, Road $20M, Mine $20M.
2) Direct site operating costs include mining, processing and G&A costs. Cash operating costs include direct site costs plus
estimates of transport and refining charges, net the silver credit. Total cash costs include cash operating costs plus a 5% NSR
royalty and the Nevada Net Proceeds on Minerals tax. Direct site operating costs per tonne of ore comprise processing $6.36,
mining $6.39 and G&A $2.92.
3) Cash flow and NPV estimates all include a 5% Net Smelter Return (“NSR”) royalty due to a third party.
4) By-product accounting is in accordance with the Gold Institute definition.
40
Goldfield, Nevada – Gemfield Deposit: Sensitivity to Gold Price
Pre-tax Sensitivity Analyses
Note: Based on feasibility study at 6,000 tpd.
41
Goldfield, Nevada - Gemfield Deposit - Cross Section
Cross Section 47,000N (Looking North)
42
IMZ – Value Added by Acquisition of Metallic Ventures
Metallic Ventures Purchase 2010 (for Goldfield and Converse projects)
US$ M
Acquisition cost, net 51.5
Cash received from royalty -47.8
Net cost to IMZ 3.7
Exploration spending by IMZ 25.4
Total IMZ investment 29.1
Total Au Equiv. M + I ozs 6.79 M*
(*excludes 0.98 M Inferred Au Equiv. ozs)
Cost Per Ounce (Au equiv.) US$
Acquisition cost per ounce 0.54
Development cost per ounce 3.74
Total cost per ounce Au 4.28
Tangible Results to Date
One project (Gemfield) in development
Significant resource expansion potential
43
Converse, Nevada - Mineral Resources - December 2011
Resources Tonnes Gold
(g/t)
Silver
(g/t)
Gold
(oz)
Silver
(oz)
Gold Equiv.
(oz)
Measured 221,172,000 0.51 3.9 3,590,000 27,828,000 3,868,000
Indicated 99,057,000 0.50 3.2 1,582,000 110,125,000 1,683,000
Measured &
Indicated
320,229,000 0.50 3.7 5,172,000 37,953,000 5,552,000
Inferred 31,242,000 0.51 3.0 507,000 3,013,000 537,000
1. Numbers are rounded to reflect the precision of a resource estimate.
2. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.
3. Gold equivalent ounces are estimated for mineral resources using 100:1 silver to gold ratio that assumes base case
metal prices of $1,300 and $25 for gold and silver respectively and metallurgical recoveries of 60% for gold and 31% for
silver.
4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
5. IMZ is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or
other relevant factors that could materially affect the validity of these resource estimates.
44
IMZ - Converse, Nevada - IMZ 100% - Scoping Study - December 2011
Operation • Open pit, 45,000 tpd.
• Heap leach (Dore)
• Recovery: ~60% Au, 30% Ag
Mine Life • 13.5 years
• Strip ratio 2.3:1
P&P Reserves • No reserves defined to date
Resources
• M+I : 320Mt @ 0.50 g/t Au and 3.7 g/t Ag
(5.2M oz Au, 38.0M oz Ag)
• Inferred: 31.2Mt @ 0.51 g/t Au and 3.0 g/t Ag
(507,000 oz Au, 3.0M oz Ag)
Production
Estimates • Average/year: 160,000 oz Au, 638,000 oz Ag
• Direct cash cost /oz: $750 (net of Ag credit)
• Total cash costs/oz (incl capex): $1,000 (net of Ag credit)
Initial Capital • $455 million
Base Case
Economics $1,300/oz Gold
$25/oz Silver
• NPV0%: ~$494M
• NPV8%: $70M
• IRR: 11%
• Cost per tonne ore processed: $8.35
Sensitivity • $1600/oz Au & $31/oz Ag:
NPV0%= $1,158M, NPV8%= $440M, IRR=22%
Outlook • Project under review
Production Estimate
219
156
183
151
Avg Pre-tax Operating Cash Flow /Year
Au Price / Ounce
$1000 $1200 $1400 $1600 $1800
Year 1 Year 2 Year 3 Year 4
Gold (,000ozs)
$120
$80
$40
$ 0
Millio
ns
$160
$2000
$151
$119
-$13
$20
$53
$86
$184
$2200
$200
45
Converse Project, Nevada - Scoping Study Results
Item Units
Base Case gold price $ per ounce $1300
Base Case silver price $ per ounce $25
Initial mine life years 13.5
Strip ratio Waste rock : mineralized rock 2.3 : 1
Average annual gold production ounces/year 160,000
Average annual silver production ounces/year 638,000
Average annual gold equiv. production 3 ounces/year 173,000
Life-of-mine gold production ounces 2,165,000
Life-of-mine silver production ounces 8,471,000
Life-of-mine gold equiv. production 3 ounces 2,328,000
Plant processing rate (~45,000 tpd) tonnes/year 16,556,000
Metallurgical recovery – gold % 60%
Metallurgical recovery – silver % 31%
Initial capital 2 $ millions $455
Total cash operating cost per tonne processed $8.35
Total cash operating cost 4 per ounce Au (with Ag credit) $745
Pre-tax IRR % 10.5%
Pre-tax cash flow (non-discounted) 5 $ millions $494
Pre-tax NPV, 5% discount rate 5 $ millions $185
Pre-tax NPV, 8% discount rate 5 $ millions $70
1) The scoping study is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There
is no certainty that the results of the scoping study will be realized and actual results may vary substantially.
2) Initial Capital includes $60 million in contingency allowance. Costs are based on Q3 2011 estimates and no escalation factors have
been applied.
3) Gold equivalents for production are estimated using a silver-to-gold ratio of 52:1 calculated by using the base case metal prices.
4) By-product accounting in accordance with the Gold Institute definition.
5) Cash flow and Net Present values (“NPV”) are all shown pre-tax, but include 5% net smelter return (“NSR”) royalty payable to third
parties and refining and transportation charges.
46
Converse Project, Nevada- Sensitivity to Gold & Silver Prices
Gold Price / Silver Price ($/oz)
BASE CASE
Category $1,000/
$19.00
$1,200/
$23.00
$1,300/
$25.00
$1,400/
$27.00
$1,600/
$31.00
$1,800/
$35.00
$2,000/
$39.00
IRR -4.3% 6.0% 10.5% 14.7% 22.5% 29.8% 36.8%
Cash Flow
($ millions)
-171 272 494 715 1,158 1,602 2,045
NPV 5%
($ millions)
-269 33 185 336 639 941 1,244
NPV 8%
($ millions)
-300 -54 70 193 440 687 934
Pre-tax Sensitivity Analyses (base-case in bold)
47
Directors and Other Officers
Directors Position Profession Nationality
Stephen Kay President/CEO Geologist British
Rod McKeen Corp. Secretary and
Legal Counsel, Canada
Lawyer Canadian
Mike Smith Audit Committee Chairman Chartered
Accountant
Canadian
Gabriel Bianchi Independent Director Asset Manager Swiss
Roberto Baquerizo Independent Director Asset Manager Ecuadorian/U.S.
Jorge Paz Legal Counsel, Ecuador Lawyer Ecuadorian/Swiss
John Hick Chair of Compensation and
Corporate Governance
Committees.
Lead Independent Director
Lawyer Canadian
Other Officers
Scott Brunsdon
Nick Appleyard
CFO
VP Corp. Development
Economist
Geologist
Canadian/U.S.
Australian
Paul Durham VP Corp. Relations Geologist British
Alan Matthews VP Special Projects Mining Engineer British