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Romarco Minerals December 2013 Corporate Presentation

Romarco Minerals December 2013 Corporate Presentation

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    December 2013 Corporate Powerpoint December 2013 Corporate Powerpoint Presentation Transcript

    • CORPORATE PRESENTATION December 2013 WWW .R O MA R C O .C O M
    •     WWW .R O MA R C O .C O M   The  informa-on  in  this  document  has  been  prepared  as  of  March  13,  2012.  Certain  statements  contained  in  this  document  cons-tute  “forward-­‐looking  statements”   within  the  meaning  of  the  United  States  Private  Securi-es  Li-ga-on  Reform  Act  of  1995  and  forward  looking  informa-on  under  the  provisions  of  Canadian  provincial   securi-es  laws.  When  used  in  this  document,  the  words  “an-cipate”,  “expect”,  “es-mate”,  “forecast”,  “will”,  “planned”,  and  similar  expressions  are  intended  to   iden-fy  forward-­‐looking  statements  or  informa-on.     Specifically,  this  presenta-on  contains  forward  looking  statements  regarding  the  results  and  projec-ons  contained  in  the  March  13,  2012  technical  report  of  the     Haile  Gold  project,  including  the  expected  mine  life,  recovery,  capital  costs,  cash  opera-ng  costs  and  other  costs  and  an-cipated  produc-on  of  the  described  open   pit  mine,  the  projected  internal  rate  of  return,  the  projected  payback  period,  the  availability  of  capital  for  development,  sensi-vity  to  metal  prices,  ore  grade,  the   reserve  and  resource  es-mates  on  the  project,  the  financial  analysis,  the  -ming  for  comple-on  of  the  revised  feasibility  study  on  the    Haile  Gold    project,    the  -ming   and  amount  of  future  produc-on,  the  -ming  of  construc-on  of  the  proposed  mine  and  process  facili-es,  capital  and  opera-ng  expenditures,  the  -ming  of  the   receipt    of  permits,  rights  and  authoriza-ons,  communica-ons  with  local  stakeholders  and  community  rela-ons,  availability  of  financing  and  any  and  all  other  -ming,   development,  opera-onal,  financial,  economic,  legal,  regulatory  and  poli-cal  factors  that  may  influence  future  events  or  condi-ons  and  expected  drilling  ac-vi-es.     In  addi-on,  this  presenta-on  also  contains  updated  resource  es-mates  contained  in  the  March  13,  2012  technical  reports.     Scien-fic  and  technical  informa-on  referred  herein  has  been  extracted  from  and  are  hereby  qualified  in  their  en-rety  by  reference  to  the  aforemen-oned  technical   reports  (“Technical  Reports”).    Joshua  Snider,  P.E.,  Thomas  L.  Drielick,  P.E.,  Lee  “Pat”  Gochnour,  M.M.S.A.,  John  Marek,  P.E.  and  Derek  Wiwer,  P.E.  are  responsible   for  preparing  the  Technical  Reports.    Each  of  the  above  referenced  persons  is  a  “qualified  person”  as  defined  in  Na-onal  Instrument  43-­‐101  —  Standards  of   Disclosure  for  Mineral  Projects.     Such  forward-­‐looking  statements  are  based  on  a  number  of  material  factors  and  assump-ons,  including,  but  not  limited  in  any  manner,  those  disclosed  in  any   another  of  Romarco’s  public  filings,  and  include  the  ul-mate  determina-on  of  mineral  reserves  and  resources,  availability  and  final  receipt  of  required  approvals,   licenses  and  permits,  sufficient  working  capital  to  develop  and  operate  the  proposed  mine,  access  to  adequate  services  and  supplies,  economic  condi-ons,   commodity  prices,  foreign  currency  exchange  rates,  interest  rates,  access  to  capital  and  debt  markets  and  associated  cost  of  funds,  availability  of  a  qualified  work   force,  lack  of  social  opposi-on  and  legal  challenges,  and  the  ul-mate  ability  to  mine,  process  and  sell  mineral  products  on  economically  favorable  terms.  While   Romarco  considers  these  assump-ons  to  be  reasonable  based  on  informa-on  currently  available  to  it,  they  may  prove  to  be  incorrect.  Actual  results  may  vary  from   such  forward-­‐looking  informa-on  for  a  variety  of  reasons,  including  but  not  limited  to  risks  and  uncertain-es  disclosed  in  other  Romarco  filings  at  www.sedar.com.   Forward-­‐looking  statements  are  based  upon  management’s  beliefs,  es-mate  and  opinions  on  the  date  the  statements  are  made  and,  other  than  as  required  by  law,   Romarco  does  not  intend,  and  undertakes  no  obliga-on  to  update  any  forward-­‐looking  informa-on  to  reflect,  among  other  things,  new  informa-on  or  future  events       Cau-onary  Note  to  United  States  Investors  Concerning  Es-mates  of  Measured,  Indicated  and  Inferred  Resources:   Certain  tables  may  use  the  terms  “Measured”,  “Indicated”  and  “Inferred”  Resources.  United  States  investors  are  advised  that  while  such  terms  are  recognized  and   required  by  Canadian  regula-ons,  however,  the  United  States  Securi-es  and  Exchange  Commission  does  not  recognize  them.  “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,  es-mates  of  Inferred  Mineral  Resources  may  not  form  the  basis  of  feasibility  or  other   economic  studies.  United  States  investors  are  cau-oned  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  cau-oned  not  to  assume  that  all  or  any  part  of  a  Mineral  Resource  is  economically  or  legally  mineable.     All  figures  are  US$  unless  otherwise  indicated   TSX : R Cautionary Statement 2  
    • STRONG BOARD, MANAGEMENT & TECHNICAL TEAM Proven gold mine development, finance, permitting and operations experience Experienced Board of Directors TSX : R Romarco has the team in place to bring Haile into production Strong Management & Technical Team §  Former Newmont Diane R. Garrett, Ph.D., President & CEO §  Former Dayton Mining, US Global Investors Diane R. Garrett James R. Arnold, Sr. VP, COO §  Former Freeport, Gold Fields – Richards Award Winner James R. Arnold Stan Rideout, Sr. VP, CFO §  Former Phelps Dodge §  Former Dayton Mining, US Global Investors §  Former Freeport, Gold Fields – Richards Award Winner Don MacDonald §  CFO KGHM International (formerly QuadraFNX), former NovaGold, DeBeers, Dayton Mining WWW .R O MA R C O .C O M Leendert Krol, Chairman David Thomas, VP, General Manager James Berry, Chief Geologist & Regional Exploration Manager §  Former Barrick John Marsden Brent Anderson, Mine Manager §  Former Quadra, Freeport Patrick Michaels Mike Gleason, Construction Manager §  Former Freeport §  Consultant, former Freeport – Richards Award Winner §  Portfolio Manager – Zuri-invest, Switzerland Gary A. Sugar §  Former RBC Capital Markets Robert van Doorn §  Former Mundoro, Rio Narcea, Morgan Stanley Jim Wickens, Process Manager §  Former Barrick Johnny Pappas, Director of Environmental Affairs §  Former Freeport Ramona Schneider, Environmental Manager §  Former Kinross Dan Symons, Vice President, Investor Relations §  Former Renmark Financial 3  
    • WWW .R O MA R C O .C O M TSX : R AERIAL OF HAILE 4  
    • 5   WWW .R O MA R C O .C O M §  First  Gold  rush  before  California   §  Carolinas  led  US  Gold  produc7on   un7l  1848   §  Second  US  Mint  in  Charlo<e,  NC   §  Original  49’ers  came  from  East  Coast   §  Significant  gold  produc7on  in   80’s-­‐90’s   §  Mining  part  of  local  history/ community     §  500  ac7ve  mines  in  South  Carolina   today   TSX : R HAILE GOLD MINE – Mining History
    • WWW .R O MA R C O .C O M TSX : R Local Community – Town of Kershaw 6  
    • Located in Mining Friendly Jurisdiction u  Romarco continues to build strong local relationships and support 7   Ongoing  Community  Involvement   local unemployment u  Romarco buys and hires locally u  96 employees 80% local workforce Awards   WWW .R O MA R C O .C O M u  TSX : R u  High Strong  Community  Support   From  le(  to  right:   •  2010  OUTSTANDING  BUSINESS  AWARD  presented  to  HAILE  GOLD  MINE   by  Kershaw  Chamber  of  Commerce   •  2011  CITIZEN  OF  THE  YEAR  presented  to  DIANE  GARRETT   by  Kershaw  Chamber  of  Commerce   •  2011  COMMUNITY  CITIZENSHIP  AWARD  presented  to  DAVID  THOMAS   by  Mining  Associa:on  of  South  Carolina     7  
    • WWW .R O MA R C O .C O M TSX : R STATE PRISON Our Closest Neighbour 8  
    • 70% Institutional Ownership BlackRock TOP 15 SHAREHOLDERS Sun Valley Gold Franklin Templeton Investments Oppenheimer Funds Colonial First State Norges Toqueville Fidelity J.P. Morgan TD Baker Steel OF OUR SHARES ARE INSTITUTIONALLY OWNED CPP Gabelli Konwave AG Konwave 9   WWW .R O MA R C O .C O M TSX : R Van Eck
    • Haile Gold Mine checks all the right boxes Kentucky TSX : R CAROLINA SLATE BELT West Virginia Tennessee Russell Mine Hickory Reed Mine Howie Mine Locust Haile Mine Bayberry Dorn Mine Magruder Mine Columbia Mine Bante Mine Tathom Mine Ironwood North Carolina Brewer Mine Buzzard Ridgeway Mine Elm South Carolina Georgia Permits to construct Project Financing Production 10   WWW .R O MA R C O .C O M ü Location ü Infrastructure ü Private Land ü No royalty ü Low operating cost ü Low capital cost ü High grade ü World class orebody ü Operating team in place ü 76% detailed engineering complete ü Solid cash position ü Strong institutional shareholder base
    • INTRODUCTION TO THE HAILE GOLD MINE PROJECT $379/oz §  One of lowest operating cost gold projects in industry ($347/oz first 5 years) 2.06 g/t 2010 Reserves 2011 Resources TSX : R §  One of lowest capital cost gold projects in industry WWW .R O MA R C O .C O M $320 million (1) §  One of highest grade open-pit gold projects in industry §  Calculated at $950 gold §  2 mm ounces @2.06 g/t gold §  Calculated at $1,200 gold §  4 mm ounces (M&I) @ 1.77 g/t gold §  0.8 mm ounces (Inferred) @ 1.24 g/t gold * NOTE: As per March 19, 2012 Technical Report (1) As reported in Q3 MD&A October 30, 2013 11  
    • State – DHEC** Federal – USACE* 404 Wetlands Permit only •  •  USACE is sole deciding regulatory body All other agencies are cooperating or commenting agencies only – EPA, US Fish and Wildlife, Catawba Nation, DHEC, SCDNR etc. * US Army Corps of Engineers ** South Carolina Department of Health and Environmental Control Air Quality Permit NPDES Permit Dam Permit 401 Water Quality Certification •  Mine Operating Permit •  Others ü  ü  ü  •  WWW .R O MA R C O .C O M •  TSX : R HGM PERMITTING 12  
    • 13   WWW .R O MA R C O .C O M ü Alternatives Analysis of the EIS published by the Corps – Aug. 2013 ü Mitigation Plan Submitted by Romarco – Sept. 2013 ü Hydrology Modeling Completed by Corps – Sept. 2013 ü State issued Air Quality Permit – Oct. 2013 ü State issued NPDES Permit – Oct. 2013 ü State issued Construction Permit for Tailings Facility – Oct. 2013 ü Draft Groundwater modeling summary report published – Nov. 2013 TSX : R Recent Permit Milestones Completed
    • ENVIRONMENTAL IMPACT STATEMENT PROCESS þ Contractor  (3rd  Party)  Selec7on  –  Sept.  2,  2011  (announced  Sept.  26,  2011) 30  day  no7ce  period   þ Public  Scoping  Mee7ng  –  Oct.  27,  2011   þ Scoping  Comment  Period  Closed  –  Nov.  28,  2011   þ Alterna7ves  Analysis  Publica7on  –  August  5,  2013   þ Community  Mee7ng  –  August  20,  2013   TSX : R þ CURRENT STAGE No7ce  of  Intent  Federal  Register  –  Sept.  23,  2011   WWW .R O MA R C O .C O M þ Prepara7on  of  Dra  EIS   Dra  EIS  publica7on  –  March  2014   Anticipated receipt of all State Permits 45 DAY NOTICE PERIOD Dra  EIS  Public  Hearing  –  April  2014   30 DAY COMMENT PERIOD Final  EIS  publica7on  –  July  2014   MINIMUM 30 DAY PERIOD Record  of  Decision  (ROD)  on  404  Wetlands  permit   14  
    • Haile  Gold  Mine  Schedule  to  Produc-on   2011   H1   Feasibility   Study   Permimng  (1)   Construc-on   Produc-on   15   (1)  As  at  October  1,  2013   2012   H2   H1   2013   H2   H1   2014   H2   H1   2015   H2   H1   2016   H2   H1   H2  
    • RESOURCE GROWTH 2008 WWW .R O MA R C O .C O M TSX : R PLAN VIEW CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE HAILE LONG SECTION 16  
    • RESOURCE GROWTH 2009 WWW .R O MA R C O .C O M TSX : R PLAN VIEW CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE HAILE LONG SECTION 17  
    • RESOURCE GROWTH 2010 WWW .R O MA R C O .C O M TSX : R PLAN VIEW CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE HAILE LONG SECTION HORSESHOE 18  
    • RESOURCE GROWTH 2011 At year end 2011 WWW .R O MA R C O .C O M TSX : R PLAN VIEW CHAMPION SMALL SOUTH PIT LEDBETTER SNAKE HAILE LONG SECTION MUSTANG HORSESHOE 2010 GOLD MINERALIZATION 2011 GOLD MINERALIZATION GROWTH PALOMINO 19  
    • HAILE GOLD MINE FEASIBILITY STUDY HIGHLIGHTS u  Feasibility Study does not include deep mineralization: 3.5 km SMALL SOUTH PIT LEDBETTER SNAKE 274 m HORSESHOE MUSTANG PALOMINO 610 m 20   DEPTH (m) CHAMPION WWW .R O MA R C O .C O M TSX : R Ø  Horseshoe, Mustang, Palomino and Snake Deep deposits
    • MINE SHOP CRUSHER MILL SHOP SAG BALL MILL ADMIN REAGENT FLOT FINE GRIND CARBON STRIP WATER TREATMENT CIL REFINERY HAILE GOLD MINE CN DESTRUCT 21   WWW .R O MA R C O .C O M TSX : R PLANT SITE – DESIGNED FOR EXPANSION
    • EQUIPMENT ~ 1/3 CONSTRUCTION ~ 1/3 OTHER ~ 1/3 TOTAL PROJECT $320M $320 million Capital Costs •  +75% of equipment is locked in •  Mills, haul trucks, shovels, loaders delivered in SC •  Updated commodity pricing •  $30 million in contingency •  $17 million for inflation 22   WWW .R O MA R C O .C O M Component of CAPEX TSX : R CAPITAL COSTS BREAKDOWN
    • WWW .R O MA R C O .C O M TSX : R EQUIPMENT IN SOUTH CAROLINA 23  
    • FINANCING ALTERNATIVES Funding sources u  u  Debt – targeting ~40-60% Ø  Project Financing Ø  Leasing Ø  Convertible Ø  High yield Equipment lease Other : Ø  Equity Ø  Royalty stream Ø  Forward sale Ø  Strategic Investor TSX : R u  WWW .R O MA R C O .C O M u  24  
    • TSX : R ANALYST COVERAGE TARGET PRICE $1.25 Euro Pacific $0.90 NBF $0.85 Paradigm $0.75 RBC $0.75 BMO $0.65 WWW .R O MA R C O .C O M Cormark 25  
    • CAPITAL STRUCTURE TSX:R Share Price(1) C$0.38 Shares Outstanding (Basic) 657.6M FD Shares Outstanding (TSM)(2) 657.7M Market Capitalization(1) C$249.9M 52 Week High / Low(1) C$1.07 / C$0.31 Cash Balance (November 13, 2013) (3) (1) As at close on November 30, 2013 (2) Includes 50,000 “in-the-money” options at an average strike price of C$0.135 as of October 1, 2013 (3) Includes US$26.5 million per Q3 MD&A at November 6, 2013 and US$23.7 million net proceeds from non-brokered private placement closed on November 13, 2013. WWW .R O MA R C O .C O M Exchange/ Symbol TSX : R Capitalization Summary ~US$50M 26  
    • Outside of recent sector meltdown, last time market cap was below C$300M •  Increased M&I resource 186% •  Discovered Horseshoe zone •  62.5m of 9. 6 g/t •  Discovered high grade at Mill zone •  30.1m of 16.1 g/t •  Discovered Mustang zone •  117m of 5.5 g/t •  Discovered Palomino zone •  70.1m of 5.5 g/t •  Established operating team •  Completed positive feasibility study •  Submitted permit applications •  Secured key long-lead equipment WWW .R O MA R C O .C O M Since TSX : R September 1, 2009 27  
    • CONTACT INFORMATION Dan Symons Vice President, Investor Relations dsymons@romarco.com 70 University Avenue Suite 1410 Toronto, Ontario M5J 2M4 Tel: 416.367.5500 Fax: 416.367.5505 Email: info@romarco.com WWW .R O MA R C O .C O M