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An Emerging Market Leaderfor VANADIUM and TUNGSTEN Production  CORPORATE PRESENTATION          December, 2012         www....
Forward Looking StatementsThe information presented contains “forward-looking statements,” within the meaning of the Unite...
Investment Highlights Exposure to growing supply constrained commodities   Located in politically stable and mining friend...
Corporate Structure  Stock symbol:                      LGO – TSX-V  Share price (Nov 29, 2012):        $0.20  Shares issu...
Experienced Management Team Mark Brennan, President & CEO Founding member of Desert Sun Mining with over 20 years financin...
Strong Board of Directors Mark Brennan, President/CEO and Director Founding member of Desert Sun Mining with over 20 years...
What is Vanadium?                     Vanadium [V23]        Vanadium Titanium Alloys have the                             ...
Vanadium Benefits:                                         1 Tonne         = 2X     0.1%V                                 ...
Vanadium is Everywhere:                           Construction and engineering                                  •   Larges...
Vanadium in steel:                       • Rebar for construction                       • Automotive parts                ...
Unstable Supply & Growing Demand                  Supply                                                              Dema...
Long Term Vanadium Pricing                                $6.46 per lb                  Supply                Disruptions ...
Maracás Vanadium Project                           13
Maracas “Base Case”Operating Parameters*                  Mineral Reserve:                                 13.1 million to...
Maracas Grade and Quality         Highest Grade/Quality Vanadium Deposit in the World         Deposit CharacteristicsVanad...
Maracas Mining Process*Unit              Mining Cost          Total OPEX          RevenueTonne of ore      $9.72          ...
Maracas Process Flow    Proven Low-Cost Process     with Efficient Ramp Up• Designed using “best-practices”  from current ...
Development on Track Construction Underway and On Schedule    Procurement orders 95% complete with    orders placed for al...
Site Development                   19
Site Development                   20
Site Development                   21
Construction Progress                        22
Maracas Projected Cashflow*                                                                                               ...
Technical Report Sensitivity Analysis*            Vanadium Pricing                                                        ...
25
Concessions and Mineralization                             Gulcari “A” Deposit Detail Maracás concessions   and strike len...
Potential to Expand                                   Gulcari “A” deposit is                                 location of e...
Increase Capacity by 50%  PEA Underway for Q2, 2013  Anticipated to require nominal capital  expenditures relative to proj...
Technical Report Sensitivity Analysis*                          Project Net Present Value (NPV)               350,000     ...
Maracas Summary:  Project fully funded, permitted and in construction  Highest grade deposit  To be lowest cost producer i...
What is Tungsten?                   Tungsten [W74]   Tungsten is unique in its extreme    qualities and difficult to repla...
Tungsten Uses:                      • Heavy construction machinery                      • Drilling for mining and oil     ...
Supply Dominated by China                    Supply                                                          Demand    Tun...
Long Term Tungsten Pricing     * Source: Metal Bulletin   34
Maracas Cash Flow Projections                                                 projection                                  ...
Implementation Summary Highlights                             Commercial Production Commenced December                    ...
Identify and AcquireAdditional Resources  Historical production district  Significant production from 1940s to 1970s  (app...
Currais Novos Cash FlowProjections                                                                                        ...
Northern Dancer Project Northern Dancer Resource Estimate     223.4 MT grading 0.102% WO3 and     0.029% Mo (M&I)     High...
Northern Dancer: PEA HighlightsLow cash cost producer: US$116 per MTU49 year mine lifePre-production capital costs: $645 m...
Campo Alegre Project        Non NI 43-101 Resource:   133 Million Tonnes Grading 50% Fe,          21% TiO2, 0.75% V2O5* 10...
Investment Thesis:   Flagship Maracas project fully funded, permitted and in   construction       • Highest grade deposit ...
Darcie Ladd                   Business Development Manager                     dladd@largoresources.com                   ...
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Largo Corporate Presentation, December 2012

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Transcript of "Largo Corporate Presentation, December 2012"

  1. 1. An Emerging Market Leaderfor VANADIUM and TUNGSTEN Production CORPORATE PRESENTATION December, 2012 www.largoresources.com
  2. 2. Forward Looking StatementsThe information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and“forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company.Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineralresources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand formaterials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; governmentregulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements and forward-looking information can be identifiedby 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,”, “projects” or variations of such words and phrases or state that certain actions, events or results “may,” “could,”“would,” “might” or “will be taken,” “occur” or “be achieved.” Forward-looking statements and forward-looking information are based on the opinions and estimates ofmanagement as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actualresults, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements orforward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay orfailure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of explorationactivities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchangerates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained inforward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can beno 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 statements and forward-looking information. The Company does not undertake to update anyforward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resourcesbe reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms “measured,” “indicated” and “inferred” mineral resources. United States investors are advised that while such terms arerecognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineralresources” 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 aninferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibilityor 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 convertedinto 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 legallymineable. 2
  3. 3. Investment Highlights Exposure to growing supply constrained commodities Located in politically stable and mining friendly jurisdictions World-class Maracas Vanadium Project Lowest cost production Fully funded, permitted and in construction Commissioning targeted for Q4, 2013 Substantial cashflow generation in 2014 Potential for significant upside through expansion High quality Management, Board and supportive core investor-base 3
  4. 4. Corporate Structure Stock symbol: LGO – TSX-V Share price (Nov 29, 2012): $0.20 Shares issued (Basic): 870 million Market Cap C$174 million 52-week High/Low: $0.365 / $0.20 Management & Institutions: 75% Currais Novos Project Warrants & Options (Basic): 220 million Shareholder site visit – August 2012Shareholders & Project Partners Institutional Shareholders Project Partners Arias Resource Capital-19.9% Glencore International 100% 6 yr take-or-pay off-take agreement for Maracas Mackenzie Investments-15.9% vanadium project Eton Park Capital Management-12.5% Major Tungsten End User 100% Off-take agreement for Currais Novos tungsten project Ashmore Investment Management-12.5% 4
  5. 5. Experienced Management Team Mark Brennan, President & CEO Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and Principal of Linear Capital, Brasoil Corporation, Castle Resources, James Bay Resources, Morumbi Oil & Gas and former President, CEO and Chairman of Admiral Bay Resources. Tim Mann, P.Eng., Chief Operating Officer Mining Engineer with extensive international operations and management experience in mine engineering, development and operations with SNC Lavalin, Placer Dome and Goldcorp. Andy Campbell, M.Sc., P.Geo., Vice President Exploration Over 33 years experience in mining and exploration, including LAC Minerals and Noranda. Kurt Menchen, General Manager, Brazil Former Jacobina Mine Manager, Brazil. Mining Engineer with over 30 years experience including Anglo Gold and Desert Sun Mining. Les Ford, Technical Director of Brazilian Operations With over 40 years of experience in constructing, developing and producing vanadium projects, Mr. Ford is arguably one of the world’s foremost experts in vanadium. Previously Assistant General Manager of Highveld Steel and a member of the Highveld Executive Committee, and Managing Director of Rand Mines Vansa. Douglas Herbst, Maracas Project Manager Mr. Herbst has extensive management experience in the design and construction of heavy and medium size industrial projects, ranging from oil and gas, steel mills, chemical and food plants as well as minerals refining and processing plants Donald Clark, Construction Advisor and Specialits Mr. Clark formerly headed up Yamanas construction management team in Brazil. Mr. Clark has over 30 years of experience managing the design, construction and operations of major mineral processing plants in Brazil and abroad and will provide guidance with respect to the construction management process for Maracás. John Laurie, C.G.A., Chief Financial Officer Over 20 years of accounting and financial management experience. 5
  6. 6. Strong Board of Directors Mark Brennan, President/CEO and Director Founding member of Desert Sun Mining with over 20 years financing experience in North America and Europe. Founder and Principal of Linear Capital, Brasoil Corporation, James Bay Resources, and Morumbi Oil & Gas and former President, CEO and Chairman of Admiral Bay Resources. Dirk Donath, Director Senior Managing Director and Partner at Eton Park Capital Management, responsible for Eton Park’s private equity and direct investment activities in emerging markets. Eton Park is a global, multi-disciplinary investment fund with a capital base of over US$14 billion. Dan Ioschpe, Director Mr. Ioschpe is currently Chief Executive Officer of Lopche-Maxion, an international company operating in the automotive and railroad sectors.. Alberto Arias, Director Founder and President of Arias Resource Capital Management. He worked for Goldman Sachs & Co and was ranked for five consecutive years as the #1 Equity Research Analyst for the metals and mining industry in Latin America. Prior to Goldman Sachs, he worked at UBS as Executive Director and Analyst covering the Latin American mining sector. David Brace, Director Mr. Brace is currently Chief Executive Officer and a director of Karmin Exploration and a director of Viking Gold Exploration Inc. Mr. Brace previously served as President of Lambton Capital Inc., a private investment firm focused on evaluating mining investments. He has also served as the Chief Executive Officer and as a director of Globe Star Mining as well as Executive Vice-President of Business Development with Aur Resources Inc. until August, 2007. Wayne Egan, Director Mr. Egan is a partner at the law firm of WeirFoulds LLP and acts for several public companies on the TSX and TSX Venture Exchange. Dr. Alan Alper, Director Dr. Alper is an accomplished senior executive, with 30 years of experience at Osram Sylvania, Inc., formerly GTE Sylvania. 6
  7. 7. What is Vanadium? Vanadium [V23] Vanadium Titanium Alloys have the Highest Strength to Weight Ratio of any Engineering Material on Vanadium is a grey transition metal Earth primarily used as an additive to steel • Imparts tremendous tensile Very Hard strength when added to steel • Small amounts of V increase Very Light strength and reduce weight of steel • Provides resistance to: Very Tough seismic events, corosion, abrasion Source: Roskill, 2010 7 Source: Vanitec
  8. 8. Vanadium Benefits: 1 Tonne = 2X 0.1%V of Steel Strength Low input cost Higher quality product Source: Roskill, 2010 Source: Vanitec 8
  9. 9. Vanadium is Everywhere: Construction and engineering • Largest consumers of steel products • Vanadium the is most widely used alloying element to strengthen steel employed in buildings, bridges and tunnels (North America) Energy and Utilities • Steel poles or towers to run cables between generating plants • Oil and gas sector including valves and bends in pipelines; greatest development in pipeline steels for gas transmission Source: Vanitec 9
  10. 10. Vanadium in steel: • Rebar for construction • Automotive parts • Various tools and dies • High strength steel structures (like columns in airports and skyrises) • Construction machinery and equipment • Cast iron used for rolls in steel mills • Chemical plants, oil refineries, offshore-platforms • Pipelines Source: Vanitec 10
  11. 11. Unstable Supply & Growing Demand Supply Demand Production • Xstrata • Chengda CAGR 4.6% • Evraz • Stratcor • Evraz • Panzihua (Evraz) 60,000 Tonnes per year World Reserves Consumption 99% projected 50% Increase Source: Roskill, 2010 Source: TTP Squared, 2012 Source: Roskill, 2010 Source: Vanitec/US Geological Survey, 2012 Source: Metal Pages Feb 15, 2012 http://bit.ly/VaNEzx 11
  12. 12. Long Term Vanadium Pricing $6.46 per lb Supply Disruptions * Source: Metal Bulletin 12
  13. 13. Maracás Vanadium Project 13
  14. 14. Maracas “Base Case”Operating Parameters* Mineral Reserve: 13.1 million tonnes @ 1.34% V2O5 Mineral Resource: 24.6 million tonnes @ 0.83% V2O5 (M&I) 30.4 million tonnes @ 0.83% V2O5 (Inferred) Average Annual Production (years 1-5) 9,200 tonnes of vanadium pentoxide (V2O5) Vanadium Pentoxide Price: $6.46 per lb, or $14.24 per Kg (3 year average) Average Vanadium Pentoxide Operating $3.12 per lb Costs IRR and NPV IRR of 22.4% and NPV of US$274 million (8% discount (after taxes, royalties and including sustaining capex) rate) Initial Capital Costs: $230,347 ($USD millions) USD/BR$ Exchange Rate: 2.00 Glencore International Off-take Take or Pay contract for 100% of vanadium products Agreement: for first 6 years * As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012 14
  15. 15. Maracas Grade and Quality Highest Grade/Quality Vanadium Deposit in the World Deposit CharacteristicsVanadium is contained in magnetite with a higher iron content than others =Better recoveries, less power required, less chemicals =concentrate with much higher V2O5, higherFe, and lower SiO2 (contaminant) than any other deposit = Ore V2O5% Concentrate SiO2% Concentrate V2O5% LOWEST COST PRODUCTION *Average grade comparisons compiled by Les Ford, presentation March 8, 2011 15
  16. 16. Maracas Mining Process*Unit Mining Cost Total OPEX RevenueTonne of ore $9.72 $74.87 $153.57Per Lb V2O5 $0.40 $3.12 $6.40 Simple, Cost-Effective Open Pit Mining Process • Nominal strip ratio 1.95:1 • Deposit outcrops at surface • Less than 1 meter pre-stripping • High grade material from surface continues to depth * As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012 16
  17. 17. Maracas Process Flow Proven Low-Cost Process with Efficient Ramp Up• Designed using “best-practices” from current low-cost producers• No new processes or technology• Lower input costs due to ore quality• Efficient ramp-up schedule• 75% capacity reached in 6 months 17
  18. 18. Development on Track Construction Underway and On Schedule Procurement orders 95% complete with orders placed for all long-lead items: • Kiln • Sodium sulphate crystalliser • V2O5 reactor Delivery schedules for equipment meet commissioning timeline Civil construction at plant site underway Water supply pipeline construction in progress and on track Installation of 138 kV powerline underway Maracas Site visit – August 2012 18
  19. 19. Site Development 19
  20. 20. Site Development 20
  21. 21. Site Development 21
  22. 22. Construction Progress 22
  23. 23. Maracas Projected Cashflow* Significant Cashflow Generated from Year 1 The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are 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 statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. * As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012 23
  24. 24. Technical Report Sensitivity Analysis* Vanadium Pricing Project Internal Rate of Return Historical Averages (lb V2O5) 30% 25% $8.26 $10.59 $7.40 $13.65 $6.04 $6.92 $6.61 I 20% R R 15% 10% ( % 5% ) 0% $5.49 $6.46 $7.36 Sale Price (Vanadium Pentoxide) Project Net Present Value (NPV) • Current vanadium pricing perceived to N 350,000 be industry “floor” P 300,000 V 250,000 • Output cut offs begin at $5.00 per lb 200,000 150,000 ( U • US$ based commodity S 100,000 50,000 D • Main sources of supply prone to 0 ) $5.49 90% 95% $6.46 105% 110% 115% 85% 100% $7.36 instability Sale Price (Vanadium Pentoxide) Source: Roskill, 2010 * As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012 24
  25. 25. 25
  26. 26. Concessions and Mineralization Gulcari “A” Deposit Detail Maracás concessions and strike length 26
  27. 27. Potential to Expand Gulcari “A” deposit is location of entire Mineral Reserve Resource Update Released in Q3 2012 • Five new satellite deposits delineated Gulcari “A” with total Inferred resources of 27.8 8km open pit (400 m x 450 m) MT containing 232,100 tonnes @ 0.83% V2O5 • Increased M&I resources at Gulcari “A” by 1.4 MT • Total M&I 24.6 MT containing 272,900 tonnes @ 1.11% V2O5 27
  28. 28. Increase Capacity by 50% PEA Underway for Q2, 2013 Anticipated to require nominal capital expenditures relative to projected cashflows All critical equipment ordered with expanded capacity to minimize future capital expenditures Simple ramp-up process to increase production once plant is commissioned Will explore production of both FeV and vanadium pentoxide for market flexibility Agreement with Glencore includes potential for increased production 28
  29. 29. Technical Report Sensitivity Analysis* Project Net Present Value (NPV) 350,000 300,000 Sensitivity to Operating Costs NPV (USD) 250,000 200,000 (Base Case) 150,000 100,000 • Lowest cost producer with 50,000 0 potential to reduce operating $2.65 90% 95% $3.12 105% 110% $3.59 85% 100% 115% costs further Operating Cost • Adoption of “owner-crushing” projected to reduce opex 30% Project Internal Rate of Return • Increase in production output 25% further decreases opex 20% • PEA to explore these scenarios IRR (%) 15% 10% • Anticipated reduction in op-costs 5% 0% $2.65 90% 85% 95% $3.12 105% 110% $3.59 100% 115% Operating Cost * As outlined in “Technical Report for the Largo Maracás Vanadium Project Plant, Brazil” announced September 13th 2012 29
  30. 30. Maracas Summary: Project fully funded, permitted and in construction Highest grade deposit To be lowest cost producer in market Significant cashflow generated at prices below historical averages Strong potential for upside on commodity price in near-term Commodity with growing demand and unstable supply 30
  31. 31. What is Tungsten? Tungsten [W74] Tungsten is unique in its extreme qualities and difficult to replace Cemented Carbide Usage • Only diamonds are harder Very Hard • 100X harder than steel Very Heat • Highest melting point Resistant • Lowest expansion • Greater than lead or Very Dense uranium Source: Roskill, 2011 31 Source: Minor Metals Trade Association
  32. 32. Tungsten Uses: • Heavy construction machinery • Drilling for mining and oil • Pipelines • High temperature equipment and parts • Heavy artillery and missiles • Automotive • Electronics • Lightbulbs Source: Vanitec 32
  33. 33. Supply Dominated by China Supply Demand Tungsten Scored 4th 95,000 Tonnes Most at Risk out of 52 (2015) Elements 67,000 Tonnes (2011) Production Consumption 17% Growing at 7% per year Source: British Geological Survey’s Risk List, 2011 Source: Roskill, 2011/Europacific Canada, April 12, 2012 Source: US Gelological Survey 33
  34. 34. Long Term Tungsten Pricing * Source: Metal Bulletin 34
  35. 35. Maracas Cash Flow Projections projection Maracas: Catalysts for Growth  Year 1 = Current production parameters  Year 2 = Sale of tailings material (pig-iron)  Years 4+ = 50% increase in production capacity •Projections assumes FeV pricing of $28.00 per Kg The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are 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 statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 35
  36. 36. Implementation Summary Highlights Commercial Production Commenced December 2011 90 tonnes of concentrate shipped Initially commissioned without mill due to importation delay at port Mill commissioned in February Plant optimization proceeded to adjust milling circuit 3 additional screens were added in order to increase yields Screens presently being commissioned Undergoing minor modifications to plant Production temporarily suspended due to severe regional drought Currais Novos Site Visit – August 2012 Full production anticipated by February, 2013 3 shipments per month (54 tonnes of concentrate) 36
  37. 37. Identify and AcquireAdditional Resources Historical production district Significant production from 1940s to 1970s (approx 8% of global supply) Numerous potential acquisitions in immediate vicinity – both underground and tailings Provides significant expansion potential Preliminary exploration underway with goal of defining additional resources 37
  38. 38. Currais Novos Cash FlowProjections Currais Novos: Catalysts for Growth projection  Year 2 = Current production parameters  Year 4+ = following 3 year exploration ramp-up on recently acquired additional underground properties* Projections assumes exploration success on aditional properties ramp up The information presented contains “forward-looking statements,” within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; metal prices and demand for materials; capital expenditures; success of exploration and development activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; and title disputes or claims. Generally, forward-looking statements Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are 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 statements or forward-looking information, including, but not limited to, unexpected events during operations; variations in ore grade; risks inherent in the mining industry; delay or failure to receive board approvals; timing and availability of external financing on acceptable terms; risks relating to international operations; actual results of exploration activities; conclusions of economic valuations; changes in project parameters as plans continue to be refined; and fluctuating metal prices and currency exchange rates. 38
  39. 39. Northern Dancer Project Northern Dancer Resource Estimate 223.4 MT grading 0.102% WO3 and 0.029% Mo (M&I) Higher-grade tungsten and molybdenum zone: 60.3 MT of 0.14% WO3 and 0.045% Mo (M&I) 201.2 MT grading 0.09% WO3 and 0.024% Mo (I) Development Milestones PEA complete Environmental permitting under way Discussions with off-take partners and JV partner 39
  40. 40. Northern Dancer: PEA HighlightsLow cash cost producer: US$116 per MTU49 year mine lifePre-production capital costs: $645 million Strategic asset for long termCumulative cash flow US$4.8 billion supply of tungstenAverage annual production of 833,000 MTU tungsten(18.3 million pounds) and 5,959,000 poundsmolybdenum over initial 23 yearsCurrent trading price of US$360 MTU Tungsten Moly NPV @ 8% IRR (%)(US$ per MTU) (US$ per lb) (US$ millions)$275 $17.50 20.0 918 Attractive economics at current tungsten prices$300 $17.50 22.2 1,110$325 $17.50 24.4 1,302$350 $17.50 26.5 1,494$365 $17.50 27.8 1,769 * The PEA is preliminary in nature, and includes inferred resources that are too speculative geologically to have economic considerations applied to them. 40 There is no certainty that the PEA will be realized.
  41. 41. Campo Alegre Project Non NI 43-101 Resource: 133 Million Tonnes Grading 50% Fe, 21% TiO2, 0.75% V2O5* 100% owned iron, titanium, and vanadium deposit - seven concessions covering 9,274.66 hectares Purchased in 2009 for USD $250,000.00 from Bahia State Mining Development Agency (CBPM) Preliminary metallurgical testwork completed in 2011 suggested potential for titanium dioxide (TiO2) project Further metallurgical testing underway in 2012 * Historical resource provided by CBPM (Bahia State Mining Development Agency) 41
  42. 42. Investment Thesis: Flagship Maracas project fully funded, permitted and in construction • Highest grade deposit • To be lowest cost producer in market • Significant cashflow generated at prices below historical averages • Strong potential for upside on commodity price in near-term Exposure to commodities with growing demand and unstable supply Experienced management team, independent board, supportive core shareholder base Projects located in politically stable and mining friendly jurisdictions 42
  43. 43. Darcie Ladd Business Development Manager dladd@largoresources.com 416-861-9406 Mark Brennan President and CEO mbrennan@largoresources.com 416-861-9797Largo Resources www.LARGORESOURCES.com@LargoResources1 55 University Ave. Suite 1101 Toronto, ON – M5J 2H7Largo Resources 43
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