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Corporate Presentation July 2014 Presentation Transcript

  • 1. A Mid-Tier Australian Gold Producer July 2014 TSX : CRK OTCQX : CROCF FRANKFURT : XGC
  • 2. Forward Looking Information 2 This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is 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 and mineral reserves; conclusions of economic evaluation (including scoping studies); the realization of mineral resource and reserve 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. Bill Nielsen P.Geo., 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 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. Non-IFRS 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. “Operational Cash Cost per Ounce” is a non-IFRS 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 “operational cash cost per ounce” as determined by the Company compared with other mining companies. For more detail on the Operational Cash Cost per Ounce determination for Crocodile Gold, please visit www.sedar.com or www.crocgold.com and review the latest Annual Financial Statements issued on March 19, 2013. Note for Pages 8-10 and 15 : For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: 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. For the Northern Territory Mineral Reserve Estimates please refer to the technical reports titled: REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE COSMO DEEPS GOLD PROJECT dated June 1, 2013; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE UNION REEFS GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE PINE CREEK GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE MAUD CREEK GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE BURNSIDE GOLD AND BASE METAL PROJECT dated December 12, 2013. Notes for Page 11: The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA 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, and there is no certainty that the PEA will be realized
  • 3. Investment Highlights 3 GROWING GOLD PRODUCTION GENERATING CASH FLOW GROWTH POTENTIAL • Operating cash flow generated in Q1 2014 exceeded $12 million • Total Operating cash flow generated in 2013 exceeded $67 million • Operational Cash Costs for Q1 2014 decreased to $971 per ounce compared to $1,027 per oz in 2013 • All-In Sustaining Cash Costs for Q1 2014 decreased to $1,307 per oz compared to $1,386 in 2013 • Total Production for 2013 was 210,000 oz, up from 155,000 oz in 2012 • Production for Q1 2014 was 53,583 ounces of gold; on track for 2014 production guidance of 200-210,000 oz DECREASING COSTS • Current focus is on underground resource definition to extend mine life at all projects • Further exploration will be based on the value added by the project All within Australia – a first world country with one of the most mining friendly jurisdictions SIZABLE RESOURCES • Proven and Probable Reserves: 930,000 oz • M+I Resources: 4.8 million oz • Inferred Resources 2.5 million oz
  • 4. 2013-14 Milestones 4 Q2 ‘13 • Unwound gold swap position, significantly reducing debt from $70M to $11M • Divested Tom’s Gully and Mount Bundy to Primary Gold Q3 ‘13 • Filed Mineral Resource update on Northern Territory Assets • Cosmo Gold Mine transitioned from ramp-up to sustainable producer with 21,300 ounces produced • Increased production guidance to 200,000 – 205,000 oz from 170,000 – 180,000 oz Q4 ’13 • Reported Q3 production results with a 14% increase in production over Q2. • Exceeded 2013 guidance with 210,626 ounces produced at an average cash cost of $1,027/oz • Established 2014 production guidance of 200,000 – 210,000 ounces gold at an average cost between $900 – $950/oz Q1 ‘14 • Executed three key contracts in the Northern Territory • Reported 2013 Annual Results: $300M in revenue and $67M in operational cash flow • Raised $18M with a private placement financing • Issued for public review, the Environmental Effects Statement for the Big Hill project
  • 5. 5 2014 Outlook Crocodile Gold is focused on building a strong, sustainable mining company based on core mining principles and value-driven decision making. This will be accomplished through: 1. Building Confidence in the Geological and Block Modeling 2. Delivering Results from Operations to meet and/or exceed Guidance Levels 3. Implementing Cost Controls for operations and adjusting Capital Expenditures in a changing Metals Market 4. Continuing to review the Divestment of Non-Core Assets or opportunities for Strategic Alliances 5. Advancing Growth Projects such as the Big Hill Project
  • 6. 6 2013-14 Operational Summary Crocodile Gold is focused on maintaining sustainable levels of production and managing costs. 2014 Production: 200,000 - 210,000 oz 2014 Operating Cash Cost: USD$900-$950 $1,150 $1,101 $924 $967 $971 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 CASHCOSTUS$/OZ OZPRODUCED Cosmo Gold Mine Fosterville Gold Mine Stawell Gold Mine Cash Cost
  • 7. Generating Positive Cash Flow Crocodile Gold continues to generate positive operational cash flow. 7 $1,664 $1,401 $1,325 $1,273 $1,280 $1,150 $1,101 $924 $963 $971 $1,490 $1,603 $1,252 $1,257 $1,307 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 US$/Oz Average Gold Sale Price Operational Cash Costs All In Sustainable Costs $0.04 $0.03 $0.045 $0.05 $0.03 $- $0.01 $0.02 $0.03 $0.04 $0.05 $0.06 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 OperationalCash FlowPerShare
  • 8. 8 Gold Production: Fosterville Gold Mine Fosterville Processing Facility 2013 HIGHLIGHTS • Production of ~98,000 ounces gold • Positive underground delineation program completed and Mineral Resource estimate update issued in 2014 2014 HIGHLIGHTS • Increased M + I resource estimate by 30% GOALS FOR 2014 • Complete Capital Development Programs (ventilation) and Tailings • Increase underground productivity • Continue to expand Mineral Reserve and Mineral Resource estimates • Production Guidance: 95,000 - 100,000oz 23,556 23,470 25,359 26,039 25,786 24,200 25,700 25,700 3,000 8,000 13,000 18,000 23,000 28,000 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14(E) Q3 '14(E) Q4 '14(E) OzProduced
  • 9. 9 Gold Production: Cosmo Gold Mine Cosmo Access Portal 2013 HIGHLIGHTS • Production of ~74,000 ounces gold • Commercial Production declared and full ramp-up of mine completed • Sustainable production levels achieved in 2013 GOALS FOR 2014 • Continue cost reduction activities • Increase mine production • Realize ongoing savings with new mine contractors • Expand Mineral Resource estimate through underground drill programs • Production Guidance: 75,000- 80,000oz 13,169 17,706 21,316 21,915 17,841 20,100 21,800 20,500 - 5,000 10,000 15,000 20,000 25,000 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14(E) Q3 '14(E) Q4 '14(E) OzProduced
  • 10. 10 Gold Production: Stawell Gold Mine Stawell Processing Facility 2013 HIGHLIGHTS • Production of ~37,000 ounces gold • Successful underground exploration programs to extend mine life • Streamlined operations to support reduced manpower and infrastructure levels GOALS FOR 2014 • Exploring opportunities within the existing mining lease, including the Big Hill Project • Release positive Feasibility Study for Big Hill • Receive permit approval for Big Hill project (expected in Q3) • Production Guidance: ~30,000oz 12,228 7,085 8,531 10,322 9,956 7,200 5,300 3,900 3,000 8,000 13,000 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14(E) Q3 '14(E) Q4 '14(E) OzProduced
  • 11. 11 South Gandy’s Big Hill Pit Growth Projects: Big Hill Enhanced Development Project Project Milestones • The Environmental Effects Statement for the project was issued for Public Review in late March 2014. • Final recommendations are expected in Q3. • NI 43-101 compliant Feasibility Study issued in early June with positive economics and 3.0 Mt @ 1.7 g/t Au for 160,000 indicated gold ounces Stawell Mill Big Hill Project Financials Summary Pre-Tax Post Tax Gold Price* A$1,415 A$1,415 Undiscounted Cash Flow (AUD$)(M) A$49.2 A$30.3 NPV @ 8% Discount (AUD$)(M) A$38.5 A$22.6 IRR 125.3% 79.1% Payback Period (Years) 1.5 1.9
  • 12. 12 Strategic Projects: Non-Core Asset Divestment Non-Core Asset Divestment Crocodile Gold continues to look for opportunities to divest or Joint Venture (JV) non-core assets primarily in the Northern Territory. The benefits include: • Returning upside in the form of Earn-in Rights, Royalties and other similar arrangements • Carrying cost savings • Sharper focus on core producing assets Completed Divestments: Rockland Option Agreement • Crocodile Gold entered into a uranium exploration agreement with Rockland Resources Pty. where Rockland received 100% uranium interest on the company’s property for a AUD$1 million exploration commitment over 4 years and a 1% net smelter royalty capped at AUD$2.5 million Mt. Bundy Gold Project Divestment to Primary Gold (ASX:PGO) • For the sale of the property, Crocodile Gold received 11.75 million restricted and unrestricted shares (10.5% ownership), a cash payment of AUD$ 3.35 million and a AUD$2.5 million capped royalty • This eliminated the care and maintenance costs on Tom’s Gully Processing plant generating a savings of ~$600,000 per annum.
  • 13. 13 Cash and Debt Positions Cash Position and Working Capital (End of Q1 2014) • Cash Position: USD$38.0 Million • Working Capital: USD$25.9 Million Debt—Convertible Debenture • Crocodile Gold issued a C$34.5 Million convertible debenture due on April 30, 2018, with an 8% coupon and $0.25 conversion price. • All interest payments to date on the debenture have been settled in cash.
  • 14. Capital Structure 14 Share Structure & Financial Details Basic: 475.6 Million Warrants: 63.4 Million Options: 022.9 Million Fully Diluted: 699.9 Million* Market Capitalization: (As of June 30, 2014) $123.65 Million 52 Week Trading Range $0.355 – $0.07 52 Week Share Price Performance Luxor Capital is the majority owner of Crocodile Gold with approximate ownership of 56% position. Luxor is very active in the management and oversight of the Company with two active members on the Board. Major Shareholder *Fully diluted shares outstanding includes the full conversion of the convertible debentures for 138,000,000 shares $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35
  • 15. 15 52 Week Price Performance for ~200,000 Ounce Producers Source: Bloomberg, Intierra database of Gold Producers 2013 -100 -50 0 50 100 150 %Change CRK TSX Index Alamos Aurico Semafo Teranga Primero
  • 16. Mineral Resources and Reserves* 16 Tonnes Au Grade Au (MM) (g/t) (Koz) Proven & Probable Reserves Cosmo 1.5 3.79 180 Fosterville 1.8 6.01 342 Pine Creek 1.3 1.55 62 Stawell 1 3.4 107 Burnside 0.2 1.93 10 Union Reefs 0.3 4.4 42 Maud Creek 1 5.4 185 Reserves 7.1 4.1 928 Measured and Indicated Resources (incl. of Reserves) Cosmo 4.5 3.6 500 Fosterville 16.6 3.87 2,069 Pine Creek 8.4 1.4 380 Stawell 4.7 2.6 399 Burnside 7.6 1.4 336 Union Reefs 3 2.4 236 Maud Creek 7.7 3.5 871 M&I Resources 52.5 2.83 4,791 Inferred Resources Cosmo 1.2 2.94 109 Fosterville 6.3 3.78 777 Pine Creek 2.5 2.3 191 Stawell 1 4.7 145 Burnside 11.8 1.6 602 Union Reefs 4.3 2.2 305 Maud Creek 4.2 2.5 344 Inferred Resources 31.3 2.45 2,473 *Please refer to cautionary language on page 2 of this presentation Crocodile Gold maintains significant Measured and Indicated Resources of 4.7 million ounces and Inferred Resources of 2.4 million ounces. Reserves for Crocodile Gold’s projects total approximately 1.0 million ounces.
  • 17. Crocodile Gold Management Team Rodney D. Lamond, P. Eng., President & Chief Executive Officer , Director Mr. Rodney Lamond joined Crocodile Gold as President and Chief Executive Officer of Crocodile Gold in July 2013. Mr. Lamond is a Professional Mining Engineer with over 25 years of operational experience in the mining industry Robert Dufour, CPA, CA, Chief Financial Officer Mr. Robert Dufour was appointed Chief Financial Officer in October 2012. Mr. Dufour is a Chartered Accountant with over 10 years of finance and accounting experience. Brianna Davies, J.D., Corporate Secretary Ms. Brianna Davies has been involved with Crocodile Gold since its inception in 2009. Ms. Davies is a corporate securities lawyer with experience in the mining and resource sector,. Troy Cole, General Manager, Stawell Gold Mine Mr. Troy Cole joined Crocodile Gold Corporation in 2012 through the acquisition of the Stawell Gold Mines from Aurico. Mr. Cole has been Stawell Gold Mines General Manager since 2007 and has the responsibilities of director, mine management and engineering during his tenure. Ian Holland, General Manager, Fosterville Gold Mine Mr. Ian Holland joined Crocodile Gold through the Acquisition of the Fosterville Gold Mine in 2012 and has been in the role of General Manager since 2007. Ian has over 17 years experience across a number of gold and base metal mining operations throughout Australia. He is a geologist by background and has a strong track record in metalliferous operations. Jason Morin, General Manager, NT Operations Mr. Jason Morin joined Crocodile Gold in September 2013. He was most recently the General Manager of the Langlois Mine in Quebec for Nyrstar where he successfully guided the site from care & maintenance to full name plant capacity in 6 months. Mark Edwards, General Manager, Exploration and Business Development Mr. Mark Edwards has been part of Crocodile Gold Northern Territory Project since since March 2010. Mr. Edwards is a qualified geologist with approximately 16 years experience working on Gold and Industrial Mineral deposits in the Northern Territory, Queensland, Western Australia, Tasmania and Botswana. 17
  • 18. Board Of Directors Robert H. Getz, Chairman of the Board Mr. Robert Getz is a private investor and a Managing Director and co-founder of Cornerstone Equity Investors, LLC. Mr. Getz has over 25 years of experience as a private equity investor and has strong experience in domestic and international mergers and acquisitions and public and private debt and financings. Mr. Getz has invested in and served as a director of many public and private metals and mining companies. He currently serves as a director of Haynes International, Inc., a developer and producer of specialty nickel alloys and CML Holdings, Inc., which is the largest iron ore producer in the western United States. Mr. Getz graduated from Boston University, where he received his BA degree, cum laude, and the Stern School at New York University, where he received his MBA in finance. Rodney D. Lamond, P. Eng., Director, President & Chief Executive Officer George Faught, CPA, CA, Director Mr. George 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. Kevin Conboy, Director Mr. Kevin Conboy was previously 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. Peter 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. 18
  • 19. Investment Highlights 19 GROWING GOLD PRODUCTION GENERATING CASH FLOW GROWTH POTENTIAL • Operating cash flow generated in Q1 2014 exceeded $12 million • Total Operating cash flow generated in 2013 exceeded $67 million • Operational Cash Costs for Q1 2014 decreased to $971 per ounce compared to $1,027 per oz in 2013 • All-In Sustaining Cash Costs for Q1 2014 decreased to $1,307 per oz compared to $1,386 in 2013 • Total Production for 2013 was 210,000 oz, up from 155,000 oz in 2012 • Production for Q1 2014 was 53,583 ounces of gold; on track for 2014 production guidance of 200-210,000 oz DECREASING COSTS • Current focus is on underground resource definition to extend mine life at all projects • Further exploration will be based on the value added by the project All within Australia – a first world country with one of the most mining friendly jurisdictions SIZABLE RESOURCES • Proven and Probable Reserves: 1.0 million oz • M+I Resources: 4 million oz • Inferred Resources 2.3 million oz
  • 20. Investor Contact Information Rob Hopkins Manager, Investor Relations 416-861-5899 info@crocgold.com Find us on:TSX: CRK (CRK.DB, CRK.WT) OTCQX: CROCF FRANKFURT: XGC Crocodile Gold Corporation 20 Robert Dufour Chief Financial Officer 416-309-2135 www.crocgold.com