providing exposure to a potential tier 1 discovery in a tier-1 … · 2021. 4. 22. · veladero...

Great Bear Royalties (TSXV:GBRR) | April 2021

April 2021Corporate Presentation

TSXV:GBRR

A New Royalty Entrant Providing Exposure to a Potential Tier 1 Discovery

in a Tier-1 Jurisdiction


Cautionary StatementThis presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the Company’s expectations in respect of its business strategy, access to capital, events or developments that the Company expects to take place in the future; ability to raise additional capital and complete future financings; the ability of the Company to comply with environmental, safety and other regulatory requirements. All statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “potential”, “estimate”, “may”, “will” and similar expressions identify forward-looking information and statements.

Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such information and statements are inherently subject to significant business, economic and competitive uncertainties and contingencies.

Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and statements. Such factors include, but are not limited to, the inability of the Company to raise sufficient monies to carry out its business plan, changes in government legislation, taxation, controls, regulations and political or economic developments in Ontario, risks associated with the ability to retain key executives and personnel, title disputes and other claims. Many of these risks, uncertainties and contingencies can affect the Company’s actual performance and could cause actual performance to differ materially from those expressed or implied in any forward-looking information and statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those presented in such information and statements.

The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

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Great Bear Royalties (TSXV:GBRR) | April 2021 3

Investment HighlightsGreat Bear Royalties Corp.

Potential Tier 1 gold discovery in the heart of an established Canadian mining camp

Royalties on Tier 1 assets are very rare and extremely valuable

Leverage to a $45M / +175,000 meter drill program for 2021

27.3 million shares outstanding – held by longstanding GBR-V shareholders Management has a track record of value creation and significant royalty experience

Cornerstone asset = 2% NSR on Great Bear Resource’s Dixie Project

A rare, unique new entrant to the growing royalty space

Exposure to one of the largest exploration programs in Canada

Tight share structure and experienced management team

Member of Discovery Group (https://www.discoverygroup.ca/)

https://www.discoverygroup.ca/


Shares Outstanding 27.3M

Options 2.5M

Fully Diluted 29.8M

Market Cap (@ $4.38 per share) ~C$120M

Working Capital ~C$5M

Shareholder breakdown (approx.)

Corporate Snapshot

4

10%

20%

70%

InsidersInstitutionsOther

John Robins – CEO & Director• Co-founder and principal of Discovery Group• Professional geologist, prospector and entrepreneur with 35+ years of experience

in the mining industry. Founder of Kaminak Gold and Bluestone Resources

Calum Morrison – President• VP Corporate Development at Great Bear Resources; formerly with Teck Resources • +$1 billion in royalty transaction experience (led the sale of a US$610M Silver

Stream to Franco-Nevada and a US$525M Gold Stream to Royal Gold)

Zeenat Lokhandwala – Chief Financial Officer• Previously with Leagold Mining, through the merger with Equinox Gold• Formerly part of KPMG’s mining practice

Chris Taylor – Director• President & CEO at Great Bear Resources• Structural and Economic Geologist with over 20 years experience

James Paterson – Director• Principal of Discovery Group• 23+ years industry experience, including executive and directorship roles with

companies such as ValOre Metals Corp. (current), Kaminak Gold, Northern Empire Resources, and Bluestone Resources

Management / Directors Capital Structure (as at April 22, 2021)


2.0% Net Smelter Royalty1

• Reference to all minerals produced from the Dixie Project in Red Lake, Ontario

NSR covers a 9,140 ha property package• Dixie Project consists of contiguous claims over 22 km• Less than 5% of the total property has been explored to date

Straightforward, attractive royalty structure• Perpetual royalty (no expiry), uncapped and no buyback option• Gold payable in credits or physical gold• All other attributable minerals payable in cash

1 NSR = defined percentage of the gross revenue from a resource extraction operation, less a proportionate share of incidental transportation, insurance, refining and smelting costs

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2% Net Smelter Royalty on the Dixie ProjectAttractive Royalty Structure on a Large, Prospective Land Package


The Dixie Project

6

A Discovery with Tier 1 Potential in Canada

District scale – 9,140 Hectares of contiguous claims over 22 km, covering an 18 km gold target

Tier 1 jurisdiction – Dixie is a 15 min drive from the town of Red Lake, Ontario with exceptional access to infrastructure

Large, high grade and near surface – An extremely rare combination

One of the largest exploration programs in Canada – $45M budget for 2021 with over 175,000 metres of drilling planned

Widely recognized as a potential Tier 1 gold mine – Current Analyst consensus estimates of~500-550koz gold annually implies potential annual cash flow of ~C$20-25M/yr to GBRR at current gold prices1

More info at: greatbearresources.ca

1 S&P Capital IQ, Street research

https://greatbearresources.ca/


Background / TimelineGreat Bear Royalties Corp. Spun Out to Shareholders of Great Bear Resources Ltd. in 2020

Jan 2020 – Great Bear Resources announced a proposed spin out of a 2.0% NSR on the Dixie Project

Apr 2020 – Shareholder approval received + final court approval for the Plan of Arrangement• Great Bear Royalties Corp. incorporated as a wholly owned subsidiary 100% of shares distributed to shareholders• Spin-out completed by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia)

Dec 2020 – Great Bear Royalties closes oversubscribed rights offering to existing shareholders, raising gross proceeds of ~C$2.0M

Apr 2021 – Great Bear Royalties commences trading on the TSX Venture under the symbol “TSXV:GBRR”

Foundational asset providing a pathway for creation of shareholder value


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$10

$20

$30

$40

$50

$60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

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A New Entrant to a Growing Royalty SpaceThe Precious Metals Royalty Space has Grown to ~US$60B with 3 Key Players Making up ~90%

Precious Metals Royalty Companies – Total Market Capitalization (US$M)

Newmont acquires ‘Old’ Franco-Nevada for $2.9B Wheaton Precious

formed

Franco-Nevada IPO

US$33B

US$61B

1 Includes other precious metals royalties (ELE, ELY, EMPR, EMX, FISH, GBRR, GROY, MMX, MTA, NSR, OGN, RZZ, STRR, VOX) Source: S&P Capital IQ; as at April 22, 2021

Market % ofCap Total

Franco-Nevada $27B 45%Wheaton Precious $19B 32%Royal Gold $8B 13%Osisko Royalties $2B 3%Sandstorm Gold $2B 3%Other (14 Active Companies)1 $3B 5%

Total Precious Royalties $61B 100%


A Tier 1 FocusGreat Bear Royalties Offers Investors a Peer-leading Tier 1 Focus

1 Based on consensus NAV estimates and/or company disclosureSource: S&P Capital IQ

"diversification doesn't make sense. It's crazy to put money into your 20th choice rather than your first choice.."

Royalty peers often market their offering of a diversified portfolio of assets across multiple jurisdictions,however their key assets are diluted away in large portfolios, with exposure to less favourable jurisdictions

“Tier 1 jurisdictions”

58%81%

35%65%100%

100% 100% 80% 66%82%50% 45% 42% 33%

25% 14%

Peer Portfolio Breakdown – Exposure to Tier 1 Jurisdictions1

- Warren Buffet (billionaire investor)

Royalties 1 81 30 123 46 139 62 9 111 18 388 181 7 5 1 191Streams -- -- -- -- 1 10 2 -- 4 -- 13 8 4 1 30 9


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Stream Royalty

10

Top 40 Precious Metals Royalty AssetsRanked by Average Analyst Net Asset Value (US$M)

Note: Dashed bars = development assetSource: S&P Capital IQ

$3.7

B

$2.3

B

$13B

$1B $500M $250M

Tier 1 Royalties


Top 40 Royalty Asset Ownership LandscapeWho owns them?

Source: S&P Capital IQ; as at April 22, 2021

TBD

Market Capitalization (C$M) / Top 40 Royalty Asset Ownership$33.8B $24.1B $9.7B

$2,600

$1,900

$1,015

$550 $490$340 $300 $235 $165 $120 $105 $100 $95


2020F Oper. Stats1 ReserveAsset Country Majority Owner(s) Au Prod. AISC Life Est.2 Royalty? Stream?

(koz) (US$/oz) (years)

Geita Tanzania AngloGold 615 $565 2 - -Fekola (80%) Mali B2Gold 605 $575 7 -Fosterville Australia Kirkland Lake 600 $310 3 -Kumtor Kyrgyzstan Centerra 540 $775 11 - -Detour Lake Canada Kirkland Lake 530 $1,155 30 -Veladero Argentina Barrick / Shandong 510 $1,275 10 - -Kupol-Dvoinoye Russia Kinross 505 n.r. 3 - -KCGM Australia Northern Star 460 $1,120 15 - -Tropicana Australia AngloGold / IGO 425 $1,020 7 - -Tasiast Mauritania Kinross 395 n.r. 16 -Cerro Negro Argentina Newmont 250 $1,100 10 - -

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“Tier 1” – Brought into popularity in 2018 via the Barrick / Randgold merger, which promised an “unrivalled portfolio of Tier 1 gold assets for investors”

Barrick / Newmont define ‘Tier 1’ or ‘World-Class’ as follows:>10yr mine life, >500koz/yr production, bottom half of cost curve

What is a ‘Tier 1’ Gold Mine?Who owns them? Where are they? Do they have Royalties?

“A mine with a stated life in excess of 10 years, annual production of at least 500,000 ounces of gold and total cash costs per ounce that are in the lower half of the industry cost curve”

“Defined as +500k GEO’s/year consolidated; <$900/oz AISC, mine life >10 years in countries classified in the A and B rating ranges for each of Moody’s, S&P and Fitch”

– ‘Tier 1’ 4 mines

– ‘World-Class’ 8 mines

Tier 1 Mines

Potential Tier 1 Mines

2020F Oper. Stats1 ReserveAsset Country Majority Owner(s) Au Prod. AISC Life Est.2 Royalty? Stream?

(koz) (US$/oz) (years)

Nevada Gold Mines USA Barrick / Newmont 3,550 $905 13 -Olimpiada Russia Polyus 1,215 n.r. 20 - -Pueblo Viejo Dom. Rep. Barrick / Newmont 930 $745 11 - Sukari Egypt Centamin / Gov't. NPI 900 $1,000 8 - -Tarkwa-Damang (90%) Ghana Gold Fields 805 $990 9 - -Kibali (90%) Dem. Rep. Congo Barrick / AngloGold 790 $815 12 - -Grasberg (81%) Indonesia Freeport 770 n.r. 60 - -Lihir PNG Newcrest 770 $1,255 29 - -Cadia Australia Newcrest 720 $125 28 - -Boddington Australia Newmont 700 $1,015 18 -Loulo-Gounkoto (80%) Mali Barrick 650 $995 13 - -Canadian Malartic Canada Agnico / Yamana 550 $965 8 -Paracatu Brazil Kinross 525 n.r. 15 - -Yanacocha Peru Newmont / Buena. 525 $960 21 - -Penasquito Mexico Newmont 510 $770 14 Ahafo Ghana Newmont 480 $960 20 -Tanami Australia Newmont 480 $685 12 - -Merian (75%) Suriname Newmont 445 $840 12 - -

1 Operating stats shown on a 100% basis2 Estimated using current reserves and 2020F production; excludes mine life extensions and / or reserve additionsSource: Company filings, S&P Capital IQ, Street research

Royalties on Tier 1 / Potential Tier 1 assets = RARE


Dixie Project Analogue – Barrick Gold’s Hemlo MineD

ixie

(LP

Faul

t)H

emlo

Gol

d M

ine

Deposit Long-Section Deposit Characteristics Similarities Applicable Royalties

• +4.2 km disseminated gold zone

• Drilled to a maximum depth of 500 metres

• Current drill spacing of up to 150m

• ~90% of gold mineralization along 2.6 km strike length

• 22.6M oz. disseminated gold deposit

• Majority of gold below 500m (94% mined underground)

• Average zone width of 8m at 8.5 g/t

• Disseminated sheet-like high grade gold mineralization

• Felsic volcanic and metasedimentary host rocks

• Major crustal shear zones

• Alteration styles: Albite-sericite-silica+/- sulphides

• GBRR owns a 2% NSR over the entire property at Dixie

• Franco-Nevada owns a 3% NSR / 50% NPI over a portion of the western underground extension of the ore-body (roughly equivalent to the area circled)

• Analyst Consensus Net Asset Value = ~US$450M1

FNV NSR / NPI

1 S&P Capital IQ, Street research


Why Great Bear Royalties?

Royalties/Streams on Tier 1 assets are very rare and extremely valuable – the Dixie Project has the potential to be Tier 1

High-quality foundational asset provides multiple pathways to creation of shareholder value

Exposure to value accretion through the ongoing advancement of the Dixie Project

Management with track record of value creation and significant experience in the royalty industry

Minimal G&A fully funded for next 2+ years with current cash balance

Great Bear Royalties (TSXV:GBRR) | April 2021 TSX-V: GBR | OTCQX: GTBDF15

1020-800 West Pender StreetVancouver, BC V6C 2V6

[email protected]

www.greatbearroyalties.com

GBRR

mailto:[email protected]

providing exposure to a potential tier 1 discovery in a tier-1 … · 2021. 4. 22. · veladero...

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