Crocodile Gold Corporate Presentation Oct 2012


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Crocodile Gold Corporate Presentation Oct 2012

  2. 2. Forward Looking Information TSX:CRK OTCQX: CROCFThis presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but are not limited to, statements with respect to thedevelopment potential and timetable of the projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); therealization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures;success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-lookinginformation 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 regardingthe 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 previousmining 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 theprofile 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, recentestimates 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 beendeveloped 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 theactual 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 notlimited 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 gradeand 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; futureprices 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 hasattempted 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 resultsnot 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 fromthose anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-lookinginformation 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 reportedseparately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, thesemineral resources may never be upgraded to proven and probable mineral reserves.Certain information contained herein may be considered to be future-oriented financial information, which was designed and approved by management of Crocodile Gold for the purposes ofassessing the value of the acquisition. Readers are cautioned that such information may not be appropriate for their use, and readers should consult their financial advisors as appropriate.David Keough F.AusIMM of Crocodile Gold is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and dataincluded in this press release.Non-GAAP MeasuresCrocodile 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 inisolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.“Cash Cost per Ounce” is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency at the operations. It is determined by dividing theoperating 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 themethod of computation of ‘cash cost per ounce” as determined by the Company compared with other mining companies. For more detail on Cash Cost per Ounce determination for Corocidlegold, please visit or and review the latest Annual Financial Statements issued on March 19, 2012.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required byCanadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to theirexistence, 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 Canadianrules, 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 ofmeasured 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 mineralresource exists, or is economically or legally mineable. 2
  3. 3. Investment Advantage TSX:CRK OTCQX: CROCFAssets Australian-based production and exploration Mineral Resources: 4.9 million ounces M&I and 2.7 million ounces inferred Over 4,000 sq. km land package with proven historical production Significant infrastructure and accessibilityProduction Two Operating mines and One new mine nearing commercial production One 2.4 million TPA processing facility (NT) & Two 1.0 million TPA facility (Victoria) Expanding production profile with decreasing cash costs New projects being added to the production pipelineExploration Outstanding potential to discover additional resources Extensive exploration project and development pipeline Exploration strength with potential for further joint venture opportunities 3
  4. 4. Our Assets TSX:CRK OTCQX: CROCF West Howley/ Union Reefs Rising Tide InternationalCosmo Maud Creek Legend Fosterville Operations Projects Stawell 4
  5. 5. Our Assets TSX:CRK OTCQX: CROCFVictoria State Fosterville ProductionOperations Stawell ProductionNorthern Territory West Howley/Rising Production (completion in Q2 2012) TideOperations Pre-Production Cosmo (Anticipated Commercial Production Q4 2012) International Pre-Production (Permitting)Projects Union Reefs Advanced Exploration Maud Creek Advanced Exploration 5
  6. 6. Our AssetsFosterville & Stawell - Acquisition TSX:CRK OTCQX: CROCF Transaction closed on May 4th Acquisition Terms  $55 million cash paid at closing  20 million shares of Crocodile Gold issued to AuRico Gold (subject to Six Month Lockup) Deferred payments based on Net Free Cash Flow (NFC) as defined by purchase agreement:  First $60mm of NFC is paid 100% to CRK  Next $30mm of NFC is paid 100% to AUQ  Next $30mm is shared 50/50 between CRK and AUQ  Beyond the initial $120mm, NFC is shared 80/20 between CRK and AUQ Fosterville Mine, Victoria Stawell Mine, Victoria 6
  7. 7. Fosterville & StawellAcquisition - Key Benefits TSX:CRK OTCQX: CROCF 2012Creates a Mid-Tier, Australian-Focused Producer 230 Ability to produce 200,000 – 230,000 oz in 2012(1) Production (000’s oz) 200 Additional mines de-risk “single asset risk”Financially Attractive to Shareholders 1,100 Consummated with minimal shares issued 1,000 Cash Costs (A$/oz) Changes Crocodile Gold’s cash flow profile and strengthened liquidity position allows for flexibilityNumerous Potential Synergies and Cost Saving 130Opportunities EBITDA (A$MM) 100 Financial, Commercial and Technical Benefits(1) Assumes full 2012 production for Fosterville & Stawell . CRK took ownership as of May 4th 2012 7
  8. 8. Fosterville & StawellAcquisition - Key Benefits TSX:CRK OTCQX: CROCF Significant Management/Operation Team Synergies  Combination of 3 seasoned teams with a wealth of experience  Creation of a shared services group of experts providing support to the operations Acquisition Milestones  Transaction closed: May 5th  Integration team put in place on May 14th  A$75mm debt facility with associated Gold Swap arrangement closed: June 12th  Consolidation of short, medium and long term strategy: August 12th Furthers Crocodile Gold Strategy to Act as a Consolidator in Australia  Numerous additional opportunities to add producing assets in Australia accretively  Benefits of increased scale furthers synergies, both in operations and in cost of capital (stock re-rating as company grows)  Significant free cash flow generation could allow Crocodile Gold to grow without large issuances of stock
  9. 9. Production2012 – MD&A Outlook TSX:CRK OTCQX: CROCFNorthern Territories Suspension of surface mining occurred in Q2 2012 Ramp-up of Cosmo Mine Production 40,000 to 45,000 ouncesState of Victoria Integration of Fosterville and Stawell mines in Victoria. Decision to ramp down U/G operations at Stawell 2012 Production Profile Ounces Production 151,000 to 161,000 ouncesQ3 – YTD Production 93,376 ounces 141,625 ounces, including FGM and SGM production prior to May 5th 9
  10. 10. ProductionNT - International Pit: Permitting TSX:CRK OTCQX: CROCFHistoric Production 745,000t @ 1.6g/t Au for 31,000 oz 3D model Pit backfilled when mining ceased in 1995 South Gandy’s Located within 20km of Union Reefs millKey Milestones September 25th: Department of Mines and Energy granted In-Principle approval to move Conceptualized pit forward with pit redevelopment Expect mining to start Q2 of 2013Production Plan Estimated 50,000 to 60,000oz Stripping ratio: 3 to 1 3 years of operation – Start-up to completion 10
  11. 11. Exploration TSX:CRK OTCQX: CROCFStrategy Growth through greenfields and brownfields explorationExploration Goals Reserves: Increase reserves from 1M oz to 1.5M oz. Resources: Increase mineral resources from 7.6M oz to 10M oz2012 Objectives Assessment of information collected in 2011 for identification of next opportunities Assessment of recently acquired land position in State of Victoria Advance Union Reefs & Maud Creek projects 11
  12. 12. Exploration - NT - Union Reefs Underground Deposits TSX:CRK OTCQX: CROCFHistorical Production 800,000 oz Au from open pits - AngloGold Ore successfully treated at the Union Reefs mill Prospect deposit located within 1,000m from existing infrastructure2011 - 2012 Key Exploration Results* Prospect: 4.23m@27.0g/t Au, 2.5m @240.4 g/t Au Crosscourse: 181.2m@1.81g/t Au, 12.3m @8.9g/t Au2012 Key Milestones Completed a 11,500m drilling program Update of resources model & desktop study – Q3 2012 Board decision on Phase II – Underground exploration decline – Q4 2012*Refer to previous press releases dated October 13, 2011 and January 20,2012 and May 9th for detailed 12results
  13. 13. Exploration – NT - Maud Creek Surface/Underground Deposit TSX:CRK OTCQX: CROCFHistorical Production Future Development 173,600t @3.32g/t Au for 18,500oz  Open pit followed by underground operation Mineral Resource:  Partially refractory – metallurgical testing  Measured & Indicated - 9,288,000t @ 3.1g/t Au for indicates 90-95% recovery by flotation with 935,000oz. Greater than 4.5g/t Au – 3.1 Mt @ 6.3 g/t concentrates grading 3-6 opt. for 628,000oz  Applicability of Fosterville BIOX technology  Inferred Mineral Resources - 1,072,000t @2.4g/t Au for 82,000oz (using a 1.0g/t Au cut-off)  Near the town of Katherine – 8km haul road to paved highway2012 Key Milestones Update of mineral resources model, metallurgy & scoping study – Q2 & Q3 Board decision on Phase II – 10,000m of drilling with associated metallurgical testing Q4 Board decision on Phase III – Initiate pre- feasibility study – Q4 13
  14. 14. Our Growth Strategy TSX:CRK OTCQX: CROCF Short Term – Focus on higher quality ore – Ramp-up of Cosmo underground mine – Integration of Fosterville and Stawell operations – Permitting of Pine Creek (International Mine) Medium Term – Maximize value of gold assets – Advance projects such as Union Reefs and Maud Creek – Assessment of expanded land position in the State of Victoria – Consolidate assets Long Term – Explore – Continued investment in exploration on an annual basis – Value creating acquisition 14
  15. 15. Our Growth Strategy2012 Q2 – Financial position TSX:CRK OTCQX: CROCFAt June 30, 2012 (US$): Total Asset Value $462,000,000 Working Capital $10,000,000 Cash Position $25,000,000Three months ended June 30, 2012 (US$): Revenue $57,000,000 Mine Operating Earnings $6,000,000 Cash Generated by Operations $5,000,000Credit Suisse AG Debt Facility A$75 million Fixed payment: A$1.923mm per month, January 2013 to March 2016 Swap Sale Contracts for 8,000 oz. of gold per month at average price of A$1,540/oz., July 2012 to March 2016: - Call Contracts for 4,000 ounces of gold per month at A$2,100 per ounce over the same term - 8,000 oz per month represent less than 40% of production. Remaining 60% sold at spot price 15
  16. 16. Management TSX:CRK OTCQX: CROCFChantal Lavoie, P. Eng. President & Chief Executive Officer, ChairmanMr. Lavoie is a Professional Mining Engineer with extensive experience in mining operations and projects. Mr. Lavoie has spent the last eight years at DeBeers Canada Inc. ("De Beers") where he was responsible for the Canadian operations of De Beers including Snap Lake and Victor mines, the Gahcho Kueproject and was acting CEO of De Beers. Mr. Lavoie has also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at theformer Louvicourt mine.Rob Dufour Interim Chief Financial OfficerMr. Dufour is a Chartered Accountant (CA) with over 10 years of finance and accounting experience. He started his career with the Toronto office ofPriceWaterhouseCoopers. Later he joined Northgate Minerals Corporation as Corporate Controller and subsequently was promoted to Group FinancialController for Northgate Australian Venture Corporation (NAVCO) until it was acquired by Crocodile Gold Corporation.Bill Nielsen, P. Geo Vice President ExplorationMr. Nielsen is an accredited geologist with over 35 years of worldwide mineral exploration and development experience. Most recently, he has beenworking as a senior industry consultant to mining exploration companies working with a variety of commodities in various countries and geologicalenvironments. From 2003 to 2008, Mr. Nielsen was the V.P. Exploration of Nevsun Resources Ltd., where he played a significant role in the discovery ofthe Bisha gold-VMS deposit in Eritrea. He has worked for companies within the Forbes & Manhattan Group since early 2010.Colinda Parent, Vice President Corporate DevelopmentMs.Parent has extensive capital markets experience having spent over 15 years in institutional equity sales and 5 years in investment banking in Toronto.Previously, Ms. Parent was one of the founders of Sandfire Securities, a Toronto-based institutional equity boutique focused on raising funds for andtrading stocks in small and mid-cap Canadian-listed resource companies. She also served on the Board and Executive Committee at Sandfire. Ms. Parentis a CFA charter holder and has an MBA from the Ivey School of Business.Operations Team : Ian Holland, General Manager, Fosterville Gold Mine Troy Cole, General Manager, Stawell Gold Mine Peter Crooks, General Manager, Northern Territory 16
  17. 17. Board Of Directors TSX:CRK OTCQX: CROCF On February 29, 2012 a new Board of Directors was constituted and Chantal Lavoie was appointed as Chairman.George Faught, CA, Lead DirectorMr. Faught is a Chartered Accountant with over 25 years of senior management experience and is currently the Chief Executive Officer of AberdeenInternational Inc. He has served as the Chief Financial Officer of publicly traded companies in the natural resources, financial services andpharmaceutical industries. Mr. Faught has broad financial management, corporate development and operating experience and from 1999 to 2005served as the Chief Financial Officer for North American Palladium Ltd., a mid-tier platinum group metal producer. Prior to that, he served as ChiefFinancial Officer for Hudson Bay Mining & Smelting Co. Ltd., an integrated base metals producer, and William Resources Inc., an international goldproducer. He also serves as a director of several public companies in the resource sector.Robert Getz, MBA, DirectorMr. Getz is a managing director and a co-founder of Cornerstone Equity Investors, LLC. Mr. Getz has strong experience in public and private debt andequity financings and domestic and international mergers and acquisitions. Mr. Getz has served as a director of several public and private metals andmining companies. He completed a B.A., cum laude, International Relations at Boston University in May 1985, and obtained his MBA, Finance inFebruary 1990 from The Stern School of Business at New York University.Kevin Conboy, DirectorMr. Conboy was President and Chief Executive Officer of Acordia, Inc., a subsidiary of Wells Fargo based in Chicago. As well, he served as Chief ExecutiveOfficer for the NIA Group of Paramus, New Jersey. Mr. Conboy possesses a wealth of experience in the financial markets and has considerable exposureto financial instruments and business transactions. He sits on a number of corporate and charitable boards. Mr. Conboy completed a B.A. from ColoradoState University in 1973.Peter Tagliamonte, P. Eng., DirectorMr. 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 ofDesert 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. In2005, he received the Mining Journals "Mine Manager of the Year" award in recognition for his work in the mining sector. 17
  18. 18. Capital Structure TSX:CRK OTCQX: CROCFShare Structure (At October 1, 2012) Union Reefs Mill, Northern TerritoryBasic: 403.9 MillionWarrants: 68.3 MillionOptions: 21.3 MillionFully Diluted: 494.3 MillionMarket Capitalization: $157.2 Million52 Week Trading Range $0.29 – $0.6252 Week Share Price Performance Gold Producer P/NAV Multiples 1.4 $0.70 1.2x $0.60 1.2 1.1x $0.50 1 0.9x 0.9x $0.40 0.8x 0.8x 0.8 $0.30 0.6x 0.6x 0.6 $0.20 0.4x $0.10 0.4 0.3x 0.2x $0.00 0.2 0 ORV CRK GBG GSC EDV ASR OSK ELD AGI YRI AEM Source: Raymond James Aug 2012 18
  19. 19. Investment Advantage TSX:CRK OTCQX: CROCFAssets Australian-based production and exploration Mineral Resources: 4.9 million ounces M&I and 2.7 million ounces inferred Over 4,000 sq. km land package with proven historical production Significant infrastructure and accessibilityProduction Two Operating mines and One new mine nearing commercial production One 2.4 million TPA processing facility (NT) & Two 1.0 million TPA facility (Victoria) Expanding production profile with decreasing cash costs New projects being added to the production pipelineExploration Outstanding potential to discover additional resources Extensive exploration project and development pipeline Exploration strength with potential for further joint venture opportunities 19
  20. 20. Investor Contact Information TSX:CRK OTCQX: CROCF Crocodile Gold Corporation Chantal Lavoie Investor Relations Chairman, President and CEO Rob Hopkins 416-861-2964 416-861-5899 TSX: CRK OTCQX: CROCF FRANKFURT: XGC Find us on A Member of the Forbes & Manhattan Group of Companies 20