Corporate Presentation for Rio Alto Mining Limited in February 2013. The presentation provides an overview of Rio Alto's capital structure, share performance and history, gold production and guidance, La Arena project location and land package, and reasons for investing in Rio Alto. Key points include Rio Alto achieving its first gold production in May 2011 and producing over 200,000 ounces of gold in 2012, with guidance of 190,000-210,000 ounces for 2013.
2. Cautionary Statement
Certain statements contained in this presentation may constitute forward‐looking statements. These statements relate to future events or the future performance of Rio Alto Mining Limited (“Rio
Alto”). All statements, other than statements of historical fact, may be forward‐looking statements. Forward‐looking statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", “propose”, "potential", "targeting", "intend", "could", "might", "should", "believe" and similar
expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐
looking statements. Rio Alto believes that the expectations reflected in those forward‐looking statements are reasonable but no assurance can be given that these expectations will prove to be
correct and such forward‐looking statements included in this presentation should not be unduly relied upon by investors as actual results may vary. Unless required to be updated pursuant to
securities laws, these statements speak only as of the date of this presentation and are expressly qualified, in their entirety, by this cautionary statement. This Presentation also discloses mineral
resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
In particular, this presentation contains forward‐looking statements, pertaining to the following:
• capital expenditure programs and cash flow estimates;
• development of deposits, resources and reserves;
• treatment under regulatory regimes;
• treatment under taxation regimes or other government financial regimes;
• expectations regarding Rio Alto’s ability to raise capital; complete the feasibility study for the La Arena sulphide project;
• work plans to be conducted by Rio Alto, and
• the production of gold and copper from Rio Alto´s La Arena Project.
With respect to forward‐looking statements listed above and contained in this presentation, Rio Alto has made assumptions regarding, among other things:
• the legislative and regulatory environment;
• the impact of increasing competition;
• current technological trends;
• unpredictable changes to the market prices for gold and copper;
• that costs related to development of the gold and copper properties and the development of gold and copper production projects will remain consistent with historical experiences;
• anticipated results of exploration and development activities; and
•Rio Alto’s ability to obtain additional financing on satisfactory terms.
Rio Alto’s actual results could differ materially from those anticipated in these forward‐looking statements as a result of the risk factors set forth below and elsewhere in this presentation:
• uncertainties regarding the regulatory regime and the application approval process;
• volatility in the market prices for gold and copper;
• uncertainties associated with estimating and developing resources;
• geological, technical, construction and processing problems;
• liabilities and risks, including environmental liabilities and risks, inherent in developing gold and copper production projects;
• fluctuations in currency and interest rates;
• competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; and
• unpredictable weather conditions.
Rio Alto’s plans and results could differ materially from those anticipated in these forward‐looking statements as a result of these risk factors set forth above. Rio Alto recommends that you also
review its most recent Annual Information Form and Annual MD&A for a discussion of other material risks that could cause actual results to differ significantly from current expectations. Rio Alto
also cautions that mineral resources that are not mineral reserves do not have demonstrated economic viability.
Certain technical and scientific information contained in this presentation has been taken from the La Arena Project, Peru ‐ Technical Report (the “July 2010 Report”) with effective date of July 31,
2010, prepared by Coffey Mining Pty Ltd. (“Coffey Mining”) on behalf of Rio Alto Mining Limited or is based upon supporting documentation provided by Coffey Mining. A copy of the Technical
Report is available on Rio Alto’s SEDAR profile at www.sedar.com. This presentation also includes updated resource estimates dated effective September 30, 2011 in respect of the oxide and
sulphide projects that comprise La Arena Project. A technical report which provides for these updated resource estimates has been filed on Rio Alto’s SEDAR profile. The technical and scientific
information contained in this presentation has been reviewed and verified by Mr. Enrique Garay, M Sc., P. Geo (AIG Member), Vice President Geology of Rio Alto, the Qualified Person (as defined by
NI 43‐101) responsible for managing Rio Alto’s exploration programs and disclosure of drilling results, and by Mr. Ian Dreyer, B.App. Sc. (AUSIMM 305241,CP), a Qualified Person (as defined by NI 43‐
101), formerly of Coffey Mining, who designed and reviewed Rio Altos’ Quality Control and Assurance Program and prepared the updated resource estimates.
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3. Capital Structure
TSX: RIO
BVL: RIO
NYSE: RIOM
Frankfurt FSE: MS2
Shares Issued (January 21, 2013): 175.8 million
Warrants Outstanding
35% ‐ Peru
Nil
28% ‐ Canada / Europe
15% ‐ Sentry Capital
9% ‐ Management
Options Outstanding: (Av. Exercise Price – C$ 2.03)
7% ‐ JP Morgan 7.8 million
6% ‐ IAMGOLD
Fully Diluted: 183.6 million
Share Price: C$4.64
as at 22/02/2013
Market Cap (issued capital): approx. C$ 815.7 million
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4. Share Price Performance & History
ANALYST COVERAGE
30 day moving average
GMP Securities George Albino +1 416 943 6187 90 day moving average
BMO Nesbitt Burns Inc Brian Quast +1 416 359 6824
CIBC World Markets Inc. Matthew Gibson +1 416 956 6729
Scotia Capital Mark Turner +1 416 863 7484 200,000 oz poured
Clarus Securities Inc Mike Bandrowski +1 416 343 3352 since first gold production
Stonecap Securities Inc Christos Doulis +1 416 342 9992
Dundee Securities Inc Dale Mah +1 604 647 2878
Desjardins Capital Markets Adam Melnyk +1 416 607 3081
Euro Pacific Capital Inc Heiko Ihle +1 800 727 7922
Kallpa Securities SAB Humberto Leon +51 1 630 7500 NYSE Listing
Loeb Aron & Company Limited Jonathan Richards +44 207 628 1128
Entry to S&P / TSX index
C$57.5M @ C$2.05/ share
Resource Update
C$20.3M @ C$1.68 / share
C$8.5M @ C$0.75 / share
C$7.7M @ C$0.76 / share
First Gold Production
EIA Approved
Gold Prepayment Facility
Negotiated
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5. Gold Prepayment Facility
Amount US$50 million
Due Date October 2014
Total Obligation 61,312 “notional” ozs Min ozs 52,115
Max ozs 70,509
Price Range $1,450 repay 85% of ozs $950 repay 115% of ozs
Status (as at 25/02/13)
36,079 notional ozs repaid Min ozs owing 21,448
25,233 notional ozs owing Max ozs owing 29,018
Payments for both tranches made through to October 2013
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6. Board of Directors
Dr. Klaus Zeitler | Chairman, Director
Alex Black | President & CEO, Director
Anthony Hawkshaw | CFO, Director
Victor Gobitz Colchado | COO, Director
Drago Kisic Wagner | Director
Sidney Robinson | Director
Ram Ramachandran | Director
Dr. Roger Norwich | Director
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7. La Arena ‐ Location
• Located in a gold mining district in north
central Peru
• 3.5 hour drive from Trujillo, on mostly
paved road
• Land package – approx 27,000 ha
• Altitude 3,400m above sea level
• 18 km east of Barrick´s Lagunas Norte Gold
Mine
• 10km north of La Virgen Gold Mine owned
by Cia Minera San Simon
• Strong community support
• No agriculture
• Excellent infrastructure
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8. La Arena Land Package
27,000 hectares
La Arena Project – 1000 hectares
Measured & Indicated: 3.9 M oz Au & 2.0 Bn lbs Cu
Inferred: 2.2 M oz Au & 2.1 Bn lbs Cu
numbers rounded – updated Jan 2012
Au Exploration Targets
26,000 hectare package
Targets:
• La Colorada
• Agua Blanca
• Maria Angola
• Pena Colorada
• Astrid
• San Andres
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9. Why Invest in Rio Alto?
• First gold oxide production May 6, 2011 – 10 months after EIA
• Production for 2012: 201,113 ounces of gold
• Guidance for 2013: 190 – 210,000 ounces of gold
• Oxide ore production – expanded to 36,000 tpd
• Oxide gold production for 5 to 7 years, sulphide Cu/Au production for
+ 20 years from 2016 – resource / reserve update Q1
• Internal Feasibility Study Phase II Cu/Au project – est. completion 2013
• Extensive exploration program on 27,000 ha property – ongoing
• Proactive explortion strategy – regional and rest of Peru
• Refer to Coffey Mining 2010 Technical Report conclusions section 1.13
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10. Gold Production & Guidance
Production & Sales
Production 2012 201,113 ozs
Production Guidance 2013 190 – 210,000 ozs
Costs Peru Cash Cost*
Actual YTD 2012 (September) US$ 532 / oz
Guidance for 2012 US$ 500 to US$ 550 / oz
Guidance for 2013 US$ 675 to US$ 725 / oz
Cash on‐hand is US $62.0 M
($ 000’s) $ per oz
Mine site costs 79,814 513
YTD (Q1 – Q3) Cash cost per ounce and Lima office 2,922 19
Cash Cost 82,736 532
Total Cost per ounce sold consist of: Head office 2,695 17
Peru Taxes 50,431 324
Exploration & Capex 74,651 480
Total Costs 210,513 1,353
* Cash cost and total cash cost per ounce sold are non‐GAAP (non‐IFRS) measures used by management to evaluate operating performance and used by some investors as an
indicator of a company’s future cash generating capability. Cash cost and total cost per ounce sold should not be considered as a substitute for GAAP performance measures
nor should they be considered in isolation.
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11. Production Statistics
2012 Actual
Ore 7,979,593
Au g/t 0.84
Waste 12,953,447
Strip Ratio 1.62
Ounces Poured 201,113
2013 Guidance
Q1 Q2 Q3 Q4 Total
Ore 2,176,000 3,536,000 4,073,000 3,632,000 13,417,000
Au g/t 0.50 0.47 0.56 0.61 0.54
Waste 6,125,000 5,923,000 5,467,000 5,858,000 23,373,000
Strip Ratio 2.81 1.68 1.34 1.61 1.74
Ounces Poured 33,948 43,605 63,820 58,808 200,181
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12. Metallurgical Test Work (pre‐production)
PILOT SCALE COLUMN LEACH TEST RESULTS
CALAORCO PIT ETHEL PIT
Recovery (Au) 84% 93%
Leaching (Days ) 30 30
Granulometry ROM ROM
Grade Au (g/TM): 1,29 0,64
Cyanide (Kg/TM): 0,1 0,1
Lime (Kg/TM): 1,5 0,8
Density of mineral: 1,69 1,69
Photo ‐ Feb 2012
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13. Metallurgical Recovery
La Arena Monthly Production 2011 ‐ 2012
300,000 25,000
250,000
20,000
200,000
15,000
Ounces Fine Au
150,000
10,000
100,000
Delivered to pad; 259,097oz
5,000
50,000 Produced; 229,804oz
Recovery; 88.7%
‐ ‐
December
Febuary
December
September
September
March
August
October
March
August
October
May
June
January
May
June
July
November
July
November
April
April
2011 2012
Cumulativ on Pad Cumulative Produced OZ on PAD OZ Produced
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14. High Grade Zone and Discrete High Grade Structures
Looking SE
CALAORCO PIT
WEST WALL
HIGH GRADE ZONE
(Approx. 1g/t Au)
PORPHYRY
HIGH GRADE NW STRUCTURES
(Upwards of 100g/t over
10‐20cm widths)
DEPTH POTENTIAL
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22. La Arena – Phase 2 (un‐optimized)
• Starter project sizing options – objective : MINIMIZE INITIAL CAPEX
• Maintain a low profile and expectations whilst planning to locate as much
of Phase 2 project within current EIA boundary
• Internal Feasibility Study underway
• Current timing for FS completion – Q3 2013
• 187M tonne reserve grading 0.38% Cu, 0.29 g/t Au (July 2010 Report)
• Projected 21 year life of mine at 24,000 tpd throughput (July 2010 Report)
• Clean copper concentrates with a gold credit – FS met testwork in process
• Projected Production ‐ 60M lbs of copper and 31,200 oz of gold annually
(July 2010 Report)
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23. La Arena – Phase 2 (un‐optimized)
Conceptual Phase 2
Waste Dump
Conceptual Plant Site
Current EIA Boundary
Conceptual Starter Pits
Conceptual Starter Tailings Area
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26. La Arena – Geology
July 2010 Report – Reserve Pit Shell
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27. La Arena – Cu/Au Sulphide Exploration
3 Cu Porphyry Targets
Agua Blanca copper anomaly
(approx 3km x 2km) – not drilled
El Alizar – 12 drillholes
by Cambior
La Arena – Inferred resource
conversion, edge definition &
depth potential
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30. Regional and Peru Exploration
10,000 ha within 30km
of La Arena
La Libertad Department
Santa Barbara Resources
Earn‐in
Ayacucho Department
Duran Ventures
Earn‐in
Huancavelica Department
Moquegua Department
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