Responsible gold mining and exploration: positioned for growth
Upcoming SlideShare
Loading in...5
×
 

Responsible gold mining and exploration: positioned for growth

on

  • 911 views

Mining On Top: Stockholm 2013

Mining On Top: Stockholm 2013
26-27 Nov 2013

Responsible gold mining and exploration: positioned for
growth – Markus Ekberg, Endomines; CEO

Statistics

Views

Total Views
911
Views on SlideShare
517
Embed Views
394

Actions

Likes
0
Downloads
8
Comments
0

2 Embeds 394

http://www.miningontop.com 284
http://miningontop.com 110

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Responsible gold mining and exploration: positioned for growth Responsible gold mining and exploration: positioned for growth Presentation Transcript

  • 1 Exploring the true potential of the Karelian Gold Line
  • 2 Exploring the true potential of the Karelian Gold Line Nasdaq OMX Stockholm (ticker ENDO ); Helsinki (ticker: ENDOM)
  • 3 Exploring the true potential of the Karelian Gold Line Disclaimer Statements in this presentation which are not purely historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are “forward-looking statements”. Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a presenter’s aid and support - not a standalone document. Please note that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in Finland, and lack of appropriate funding, all of which could among other things, prevent any of the forward looking statements in this presentation from coming to fruition or lead to a delay in the commencement of mining operations.
  • 4 Exploring the true potential of the Karelian Gold Line  The Karelian Gold Line is a 40 km long gold critical belt, where Endomines controls all currently known gold deposits - mineral rights for 132 km2 claims and reservations  Current Life-of-Operations (management view) expected to be 4-5 years, but Endomines is convinced that the on-going exploration program will prolong the lifetime  Focus on gold production in Pampalo Gold Mine and exploration along the Karelian Gold Line  Extensive exploration program along the Karelian Gold Line (~€2 million in 2013)  Significant discovery 2011– the new Korvilansuo gold deposit. 2012-13 drillings returned promising results  Korvilansuo is the main focus for exploration in 2013  Rämepuro satellite mine 2013 – test mining has commenced  Hosko satellite mine 2014 – test mining scheduled The Karelian Gold Line – great exploration potential
  • 5 Exploring the true potential of the Karelian Gold Line Pampalo Gold Mine  Pampalo Gold Mine project completed in December 2010 in line with the budget of €20 million  Commercial production commenced in February 2011 on schedule  The processing plant in Pampalo centrally located to process ore from all the satellites in the area  Processing capacity increased recently from 270,000 to 380,000 tonnes/annum to process ore from other deposits along the Karelian Gold Line  Currently employing approximately 80 own and 30 - 50 contractors – 70 percent locals
  • Pampalo mining principle Longitudinal projection Raise Drifting Long hole drilling Cable bolt holes for ground support Ore Backfilling Blasting rings Charging RC loading Unconsolidated backfill Diamond drill holes with assays CRF Horisontal pillar 20 m Cross section
  • Pampalo processing 4th Sept 2012 Trucking Fines Crusher Feeder Flotation Mine Drainage Water Classification Classification Coarse fraction Gravimetric circuit Crusher ore stockpile • No cyanide or acid used • No harmful material in tailings • No Acid Mine Drainage (AMD) • 100 % water recirculation Tailings Storage Facility Grinding mill Gravimetric concentrate 20-50 % Au Flotation concentrate ~4-6 000 t/a; 100-200 g/t Au
  • 28-Nov-13 Mucking Ventilation raise drifting 14 Apr 2010 8
  • 9 Exploring the true potential of the Karelian Gold Line Pampalo key production figures FY 2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 FY 2012 Q1/2013 Q2/2013 Q3/2013 Rolling 12months Tonnes mined (incl. open pit) 176 745 61 134 57 718 61 988 69 950 250 790 90 386 103 579 74 635 308 550 Tonnes processed 210 547 61 596 64 730 64 177 59 446 249 949 58 856 80 939 93 460 292 701 Head grade (Au g/t) 3,40 3,2 4,4 3,2 5,4 4,0 3,5 2,3 3,0 3,4 Gold recovery (%) 87,0 85,6 86,6 85,5 87,2 86,1 88,4 86,7 82,6 86,2 Hourly utilization (%) 85,3 86,5 94,2 95,0 88,1 91,0 88,8 92,7 92,7 90,6 Gold produced kg 615,9 168,8 244,5 175,8 277,4 866,5 180,4 168,1 228,5 854,4 Gold produced oz 19 802 5 427 7 862 5 652 8 920 27 860 5 800 5 405 7 346 27 471 35 16 11 10 9 9 0 8 4 4 831 771 811 753 753 745 954 LTIFR (12 month rolling) 864 Cash Cost Rolling 12 months (USD/oz) *) • • • 954 “Hourly utilization” is calculated for all available hours for the period “LTIFR” = The Lost Time Injury Frequency Rate – calculated as reported lost time injuries resulting in one day/shift or more off work per 1,000,000 hours worked Endomines calculates ”Cash Cost” per ounce figures using the guidance issued by The Gold Institute Production Cost Standard. Direct mining, ore processing and site administration, and off-site smelting and refining costs are included in the ”Cash Cost” calculation, but amortization, stock change, reclamation, capital and exploration costs are excluded. The ”Cash Cost” is calculated per payable ounces.
  • 10 Karelian Gold Line compared to Southern the Karelian Gold Line Cross belt Exploring the true potential of Ilomantsi vs. Southern Cross greenstone belt Gold exploration and production summary Units Belt length Belt width Claims coverage Gold exploration since Gold produced total Gold produced in 2008 Gold mines in production Known reserves & resources Data compiled by GSF / Dr P Eilu km km % year oz oz oz Ilomantsi Central (Karelian Southern Gold Line) Cross 90 110 0.5–10 0.5–15 <20 100 1986 1888 100 000 >10 000 000 0 157 147 1 4 350 000 >2 000 000 Data from Mineral Titles Division of the Western Australia Department of Mineral and Petroleum Resources.
  • Hosko: 1 000 m core drilling 500 t test mining and processing COMPLETED Exploration 2013 Rämepuro 2013: 2 000 m core drilling 20 000 t test mining and processing STARTED Korvilansuo area main target Bedrock samples indicate a large scale gold mineralization Possibilities for a large, open pittable deposit Main target for future exploration Mineral rights approved or under application Distance to Pampalo plant 15- 20 km along paved road Textbook example of orogenic gold deposits: Muurinsuo 1 Mt@1,7 g/t Korvilansuo 0.25 Mt@2g/t Korvilansuo(Muurinsuo)-area 2013: 12 000 m core drilling CONTINUES Trenching Metallurgical testwork COMPLETED Geochemical sampling Kuittila tonalite Mining Archaen greenstone belt Kuittila 0.275 Mt@2,6g/t
  • 12 Exploring the true potential of the Karelian Gold Line Endomines and the environment  Several mines have had environmental challenges in Finland during last years  But not Endomines or Pampalo! - No cyanide or acid used No harmful material in tailings No Acid Mine Drainage (AMD) expected 100 % percent water recirculation
  • 13 Exploring the true potential of the Karelian Gold Line Social License to Operate Reasonably small operator Local operator - company founded 1996 in Hattuvaara Local presence since that Training and employing locals Supporting local community Regular open doors – lot of visitors Zero Harm principle for nature and employees Excellent Safety records No environmental problems => Strong Social Licence to operate
  • 14 Exploring the true potential of the Karelian Gold Line Our gold hedge:  Required by the lending bank in 2009  Hedge program between 2011 and 2015(6): Fixed gold price (843 €/oz) for 84 400 oz (2 625 kg) gold  Remaining total 50 400 oz (1 560 kg)  In the beginning of 2012, the gold hedge was partly reconstructed: 6 000 oz (187 kg) hedged volume was moved from 2012 to 2016. The hedging price for the volume moved to 2016 is 796 €/oz  The reason for the hedge roll-over was to release cash for the capacity expansion investment  The hedge consists of a metal swap that adjusts the quarter’s average price according to London Bullion Market to a fixed price
  • 15 Exploring the true potential of the Karelian Gold Line Management Markus Ekberg CEO since 2009 M.Sc. in Geology 30 years experience in the mining industry Börje Linden CFO since 2008 M.Sc. Economics 30 years experience of listed companies Jaakko Liikanen CTO since 1996 M.Sc. in Geology 30 years experience in the mining industry Janne Muttonen Resident Manager since 2010 B.Sc. In Engineering 15 years experience in the construction industry
  • 16 Exploring the true potential of the Karelian Gold Line Board of Directors Staffan Simberg Chairman 2013, Member 2011 MBA, IMD, Geneva Consultant, industrial adviser, board member in various Nordic companies Timo Lindborg Since 2005 PhD (Tech), BSc Geology Managing Director in Sotkamo Silver AB Rauno Pitkänen Since 2010 M.Sc. In Mining Manager Projects and Sandvik Mining and Construction Systems Meg Tivéus Since 2012 M.Sc. in Economics Chairman, board member to various Swedish companies Stefan Månsson 2013 M.Sc. In Mining Consultant, board member Arctic Gold AB, Northland Resources AB 2013-> Dannemora Mineral AB Mati Sallert 2013 M.Sc. In Mining Consultant, previously several senior manager positions in Boliden
  • 17 Exploring the true potential of the Karelian Gold Line Key financial figures 2013 2012 (MSEK) 9 months 9 months Revenues 151,5 190,7 Gold price hedge -28,9 -30,0 Total revenues 122,6 160,7 Operating expenses -134,7 -103,6 EBITDA before unrealised loss on derivatives -12,1 57,1 % of total revenues -0,1 0,3 Unrealised loss on derivatives 14,3 -32,2 Depriciation and amortization -27,1 -26,8 EBIT -24,9 -1,9 % of total revenues -0,2 0,0 Net income -21,9 -7,2 Cash funds end-of-period 83,1 69,0 Accrued gold revenues end-of-period 26,4 32,5 Net debt end-of-period -13,2 0,1 2012 2011 284,0 -48,9 235,1 -146,4 88,7 0,4 -24,4 -36,3 28,1 0,1 18,9 69,0 61,6 6,4 181,8 -31,8 150,0 -127,2 22,8 0,2 -2,3 -26,8 -6,3 0,0 -11,4 46,3 37,6 43,2
  • 18 Exploring the true potential of the Karelian Gold Line Endomines ownership – largest owners Sept 30th Avanza 2013 Insurance Company S weden 11,30 % S venska Handelsbanken Markets S weden 10,50 % S uomen Teollisuussijoitus -Finska Industriinvestingsfond Finland 7,30 % Y ggdrasil AB S weden 7,20 % Nordea Bank Finland AB Finland 5,10 % Ilmarinen Mutual Pension Insurance Company Finland 3,90 % Nordnet Pensionsförsäkring AB S weden 3,30 % Lindborg Timo* ) Finland 2,70 % Ålandsbanken AB, W8IMY Finland 2,00 % S kandinaviska Enskilda Banken S W8IMY .A., Luxemburg 1,50 % 54,80 % * Insiders, including indirect holdings: Lindborg Timo* ) Finland 2,7% Liikanen, Jaakko Finland 1,3% S imberg, S taffan Finland 0,6% Other insiders Finland 0,1% Total insider holdings 4,6%
  • 21 Exploring the true potential of the Karelian Gold Line Future strategy for success 1. The Karelian Gold Line is a 40 km long gold critical belt – all controlled by Endomines 3. The capacity increase will make lower grade ores economically viable to produce 2. Plant capacity increase project 270,000 t/a -> 380,000 t/a (expected capacity utilization) 5. Aggressive exploration– main target 2013 Korvilansuo 4. The higher capacity enables processing of ore from all the Karelian Gold Line deposits 8. Organic growth possible with projects in different development stages 7. Hosko satellite mine 2014 6. Rämepuro satellite mine 2013
  • 22 Exploring the true potential of the Karelian Gold Line Thank you! http://www.endomines.com/ Nasdaq OMX Stockholm (ticker ENDO ); Helsinki (ticker: ENDOM)