Intl mineralapr13presentaion

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Intl mineralapr13presentaion

  1. 1. 1“Silver Producer with a Golden Future”April 2013www.intlminerals.com
  2. 2. 2Cautionary StatementSome of the statements contained in this presentation are “forward-looking statements” within the meaning ofCanadian securities law requirements. Such forward-looking statements involve known and unknown risks,uncertainties and other factors that may cause our actual results, performance or achievements to differ materially fromthe anticipated results, performance or achievements expressed or implied by such forward-looking statements.Forward-looking statements in this presentation include statements regarding drilling and development programs onthe Company’s projects, timing of commencement of production, reserve/resource additions, completion of feasibilitystudies, obtaining of required environmental and production permits, timing and significance of future cash flows anddividends.Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties suchas: risks relating to estimates of mineral resources and reserves; risks relating to project capital, production costs andcash flows; risks relating to obtaining mining and environmental permits; mining and development risks; risk ofcommodity price fluctuations; political and regulatory risk; general financial market and credit risks; other risks anduncertainties detailed in the IMZ’s Annual Information Form (dated September 28, 2012) and Management Discussionand Analysis for the year ended June 30, 2012, both of which are available at www.sedar.com.Any forward-looking financial information provided may not be appropriate in relation to reporting under InternationalFinancial Reporting Standards (IFRS). Please refer to the Company’s latest financial statements and notes. Theseforward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update publiclyor release any revisions to these forward looking statements to reflect events or circumstances after the date hereof orto reflect the occurrence of unanticipated events.Qualified Person: The Company’s VP Corporate Development, Nick Appleyard.Dollar and Year References: “$” and “US$” refer to US dollars unless otherwise noted. Years refer to the respectivecalendar year unless otherwise noted as fiscal year (June 30).Au = gold; Ag = silver; g/t = grams per metric tonne; M = million; $M = million dollars; Mt = million tonnes; oz or ozs =troy ounces; tpd = metric tonnes per day; Gold-to-Silver ratio for gold equivalent ounces based on 55:1 for productionstatistics and variable ratio for reserves and resources based on Technical Reports.
  3. 3. 3 Focus: Gold and Silver Deposits in the Americas Pallancata Silver Mine, Peru (40% IMZ, 60% Hochschild) Estimated Production in 2013: ~8.8 Million Silver Equiv. ozs Inmaculada Gold-Silver Project, Peru (40% IMZ, 60% Hochschild) Production Start-up: 2H 2014 Production: ~200,000 Gold Equiv. ozs/year Nevada (100% IMZ) Gemfield Gold Project: Start-up mid-2015. ~65,000 ozs/year Converse Gold Deposit: Project under review Large Reserve Base: 1.37M Gold Equiv. Proven + Probable ozs 7.9M M + I Resources (includes Reserves) Ecuador: Pending sale of assets Financial Strength: $54M in Cash and Debt Free Initial Dividend of C$0.12/share (currently ~3.2% yield) paid Jan, 2013OverviewPallancata, PeruPeru13%USA87%M + I Resources(Au Equiv. Ozs)
  4. 4. 4 Shares Issued: 117.6 million Fully Diluted Shares: 121.4 million Options: 3.8M Recent Share Price: C$3.80 52-Week Range: C$3.37-C$5.81Capital Structure and Stock Performance National Bank (C) – S. Parsons TD Securities (C) – S. Green Cowen Securities LLC (US) – A. Graf Bank Vontobel (SW) – P. Rafaisz Canaccord Genuity (UK) – T. Dudley Zürcher Kantonalbank (SW) – M. Schreiber Dundee Securities (C) – Pending new analystAnalyst Coverage Listings - Toronto and Swiss: Symbol “IMZ” Swiss Performance Index (SPI): Top 100 Market Capitalization: C$447 million(~$440 million) Cash: $54 million Current Dividend: ~3.2% Debt FreeOne year relative performanceWeighted in US$GDJX -36%GOLD -5%HUI -30%IMZ -36%
  5. 5. 5Key Financial Data - Fiscal years end June 30th10%5%0%ReturnonEquity%% Return on Equity(Cont. Ops; Pre-Tax Basis)Pre-Tax Net Income fromContinuing Operations15%7.2%US$MillionsPre-Tax Cash Flow from ContinuingAnd Discontinued Operations09 1110 1220%20.6%Note: Effective fiscal year 2012, numbers reflect adoption of IFRS.13* annualizedUS$Millions$10$40$0-$5$304.009 1110 12$20$50$60$70$8035.918.939.719.372.4$10$5$0-$5$1509 1110 12$2556.7$35$3016.2$45$20$50$55$6015.3MineRoyalty30.429.19.8%*$408.8% 9.5%8.78.613(year-to-date)13(year-to-date)
  6. 6. 6Property Locations
  7. 7. 7ProductionDevelopmentDrill TargetsPallancataConverseGemfield (Est Prodn 2015)Inmaculada (Est Prodn 2014)Project PipelinePeruU.S.A. (Nevada)Del Oro/Rye AcomaMcMahon Ridge/Goldfield MainPallancata, PeruStonewall Spring
  8. 8. 8Reserves / Resources (Attributable to IMZ)Notes: 1. Average Au equiv conversion of 61:1 Ag to Au ratio for reserves and 62:1 for resources.2. P+P = Proven and Probable Reserves3. M+I = Measured and Indicated Resources5.04.54.03.53.02.52.01.51.00.5M+I Resources (83%)(Total 7.88M ozs Au Eq)1,3P+P Reserves(Total 1.37M ozs Au Eq)1,2Inferred Resources (17%)(Total 1.73M ozs Au Eq)15.5GoldEquivalentOunces(Millions)6.01050GoldEquiv(MillionOzs)08 1007 09Total M+I Gold Equiv Resources11 12Goldfield(100%)Converse(100%)USAPeru13%USA87%M + I Resources(Au Equiv. Ozs)Goldfield, NevadaPallancata(40%)Inmaculada(40%)Peru
  9. 9. 9Major Project Summaries – Attributable to IMZ (Basis P+P Reserves Only)Pallancata(40%)Inmaculada(40%)Gemfield(100%)Location Peru Peru NevadaMetals Ag + Au Au + Ag AuType of Operation Underground Underground Open PitStatus Production Development DevelopmentProduction Date N/A 2H 2014 Mid 2015Estimated AverageAnnual Production3.0M ozs Ag10,400 ozs Au50,000 ozs AuI.7M ozs Ag66,000 ozs AuEstimated Mine Life (1) 3.5 years 6.5 years 7.0 yearsInitial Capital Costs N/A $112M $133MTotal Cash Costs/oz (2) $11-12/oz Ag $260-265/oz Au $600-650/oz AuAll-in Mine Costs/oz (3) $14-17/oz Ag $680-710/oz Au $645-665/oz AuEconomic Parameters (4)at $1,500 Au, $25 Ag:• P+P Cash Flow $80-100M $335M $229M• NPV @ 8% Disc. Rate $70-80M $188M $110M• IRR --- 55% 29%(1) Mine life based on current P+P reserves only; does not include current resources.(2) Total Cash Costs/oz per the Gold Institute definition (based on by-product credit). See Appendix and Footnotes, slide 27.(3) All-in Mine Costs/oz are calculated using Total Cash Costs plus sustaining capital, mine development , exploration costs, workers’profit sharing and project-specific interest expense (based on by-product credit).(4) All amounts are pre-tax and for life of mine based on P+P reserves
  10. 10. 10Pallancata Silver Mine (40% IMZ), PeruSuyamarca RiverRanichicoMercedesCampPallancata- Plan ViewCentral Zone(35% 2013 prodn.)View of PhotographPallancata West(37% 2013 prodn.)RinaPallancata East(9% 2013 prodn.)19% 2013 prodn.Pallancata76M oz M+I Ag Eq(160 sq km)Central Area(370 sq km)SeleneInmaculada1.5M oz M+I Au Eq(210 sq km)10 km100% Hoch60% Hoch40% IMZ}District Map(750 sq km)Pallancata WestCentralZoneMainStructureTo Mariana/Mercedes/San Javier(Looking Northwest)
  11. 11. 11Pallancata Mine, Peru (40% IMZ)Mine • Underground, 3,000 tpd• Flotation circuit (concentrate)• Recoveries: 83% Ag, 70% AuReserves (1) • Total: 3.3 Mt at 1.3 g/t Au & 273 g/t Ag- Proven: 2.2 Mt at 1.3 g/t Au & 276 g/t Ag- Probable: 1.1 Mt at 1.3 g/t Au & 269 g/t AgMine Life • ~3.5 years (P+P only. Does not include resources)2012 2013EOre production (tonnes) 1,070,500 t 1,050,000 tHead grade Ag/Au 256 g/t /1.1 g/t 261 g/t / 1.1 g/tProduction Ag/Au (oz) 7.44M oz Ag26,000 oz Au7.4M oz Ag26,000 oz AuDirect Site Costs/oz Ag (net ofAu credit) (2)$5.14 $6.70-7.00E(3)IMZ Total Cash Costs/oz Ag(net of Au credit) (2)$9.16 $13.00-14.00E(3)IMZ All-in Mine Costs/oz Ag(net of Au credit) (3)$20.90 $21.00 – 23.00E(3)2013 Est. Operating Cash Flow to IMZAg Price / Ounce$55$28 $30 $32 $34 $36 $38$45$35$ 25Millions$40$65$48$42$31$25$60Post-Capex/Pre-Tax2013E2009 2010100% Production (40% to IMZ)7.4268.43210.13620118.8342012267.4Gold (,000 ozs)Silver (M ozs)$54$371) Basis Hochschild’s Dec 31, 2012 reserve and resource estimates.2) Direct Site Costs and Total Cash Costs per Gold Institute definition.3) All-in Mine Costs are calculated using Total Cash Costs plus sustaining capital, mine development,exploration costs, workers’ profit sharing and project-specific interest expense. All based on by-product credit.4) Assumes $30/oz Ag and $1,600/oz Au.
  12. 12. 120 0.5 1.0KilometersAngela VeinTensional LourdesCymoidAngela SWPlan View – Multiple Veins near to Angela Vein*InmaculadaFurther potential along Angela Vein (Long Section looking Northwest)*Inmaculada Project, Peru (40% IMZ) – Angela Vein*Source: Hochschild Mining PlcVein OutcropApproximate EasternLimit of Feasibility StudyDevelopment adit for Angela Vein
  13. 13. 13Inmaculada, Peru - IMZ 40% - January 2012 Feasibility StudyOperation • Underground, 3,500 tpd• Conventional cyanidation (dore)• Recovery: 96% Au, 91% Ag• 6.5 year mine life (basis initial reserves only)Reserves • Total: 845,000 oz Au; 30.1M oz Ag7.8 Mt at 3.4 g/t Au & 120 g/t Ag- Proven: 3.8 Mt at 3.4 g/t Au & 106 g/t Ag- Probable: 4.0 Mt at 3.3 g/t Au & 134 g/t AgProductionEstimate and Costs• Average/year: 124,000 oz Au, 4.2M oz Ag• Direct Cash Costs/oz: ~$135 (net of Ag credit)• IMZ Total Cash Costs/oz: ~$265 (net of Ag credit)• IMZ All-in Mine Costs/oz: ~$700 (net of Ag credit)Initial Capital • $315M: Jan 2012 Feasibility Study• $370M: Nov 2012• Debt financing of $140M in March 2013• 7year term, Libor +300 bps• Interest only payable in first 2 yearsFeasibility StudyBase CaseEconomics$1,100 Au, $18 Ag• NPV0%: $323M ($194M after-tax)• NPV5%: $181M ($90M after-tax)• IRR: 18% (12% after-tax)Feasibility StudySensitivity$1,500 Au, $25 Ag• NPV0%: $821M ($492M after-tax)• NPV5%: $551M ($313M after-tax)• IRR: 38% (27% after-tax)Outlook • Permitting ongoing, decline underway• Estimated production date : 2H 2014Production Estimates(100% Basis)351.01361214.35.0 108 5.02014(3 months)2015 2016 2017Gold (,000 ozs) Silver (M ozs)2015 Est. Pre-tax Operating Cash Flow to IMZAu Price / Ounce$1000 $1200 $1400 $1600 $1800$100$75$50$ 25Millions$125$2000$129$112$44$61$78$95$2200$150100% Basis (unless shown otherwise)$146
  14. 14. 14Goldfield, Nevada - IMZ 100% - Development Stage Three Gold Deposits (Gemfield, McMahon Ridge, Goldfield Main) P+P Reserves*: 0.51M oz Au (14.3 Mt at 1.1 g/t Au)• Proven: 11.0 Mt at 1.2 g/t Au• Probable: 3.2 Mt at 0.9 g/t Au M+I Resources: 1.23M oz Au (31.1 Mt at 1.2 g/t Au)• Measured: 12.2 Mt at 1.1 g/t Au• Indicated: 18.9 Mt at 1.3 g/t Au Inferred Resources: 0.44M oz Au (10.9 Mt at 1.3 g/t Au) Targeting Heap Leach Prodn in Mid 2015 (Gemfield only) Basic engineering to be completed by Q2 2013 66,000 Au ozs/year, 6,000 tpd open-pit heap leach operation• Possible 7,500 tpd scenario with 14% lower processing costs and G & A Capex estimate: $133M (Plant/Infrastructure $93M, Mine $20M, Road $20M) Total Cash Costs: $600-650/oz Au; All-in Mine costs: $645-665/oz Au New mine plan and updated resources and reserves in Q2 2013 Testing new drill targets outside of existing mineralized areas* Gemfield deposit P+P Reserves included in M+I Resources.
  15. 15. 15Reno - 4.5 hoursLas Vegas - 2.5 hoursGoldfield, Nevada – Principal Gold DepositsX-section
  16. 16. 16Goldfield, Nevada: Gemfield Deposit Feasibility Study July 2012Operation • Open Pit, 6,000 tpd (possible 7,500 tpd (1))• Heap leach (dore)• Recovery: 84% Au• 7 year mine life (basis initial reserves)• Strip ratio: 2:1P&P Reserves (2)$1,350/oz Au• Total: 511,000 oz Au (14.3 Mt at 1.1 g/t Au)- Proven: 11.0 Mt at 1.2 g/t Au- Probable: 3.2 Mt at 0.9 g/t AuM&I Resources (2)(includes reserves)• Total: 574,000 oz Au (17.0 Mt at 1.0 g/t Au)- Measured: 12.2 Mt at 1.1 g/t Au- Indicated: 4.8 Mt at 0.9 g/t AuProductionEstimates• Average/year: 66,000 oz Au• Direct Cash Costs/oz: $525-600• Total Cash Costs/oz: $600-650• All-in Mine Costs/oz: $645-665Initial Capital • $133 millionBase CaseEconomics$1,350 Au• NPV0%: ~$168M ($132M after-tax)• NPV7%: $ 83M ($59M after-tax)• IRR: 22% (18% after-tax)Outlook • Basic engineering close to completion• Plan of Operations to be submitted in April• Production Date Estimate: Mid 2015Production Estimates4083752015 Est. Pre-tax Operating Cash Flow (3)Au Price / Ounce$1000 $1400 $18002015(6 months)2016 2017Gold (,000ozs)$40$30$20$ 10Millions$50$2200$68$52$20$36(1) See November 1, 2012 press release on Gemfield update.(2) Silver is not material.(3) Production and pre-tax operating cash flow on operating year basis.$70$60See appendix for details of July 2012 Feasibility Study.$1200 $1600 $2000$28$44$60752018
  17. 17. 17Converse, Nevada – Location Map and Project SummaryTrout CreekTrenton ValmyTrentonNorth PeakPhoenixFortitude804490000N4500000N4520000N490000E470000EHumboldt CountyLander CountyHumboldt CountyPershing CountyConverseIMZ MARIGOLD MINEVALMYTrentonCanyon MainNEWMONTCOPPER BASIN AREABUFFALO VALLEY MINENEWMONTCOPPER CANYON AREALONE TREE MINE480000E80Gold Mine, depositIMZ- fee landIMZ- BLM landNGOLDCORP/BARRICK4510000NNEWMONTNEWMONT0 1 2 3MilesTRENTON CANYON MINENEWMONT Measured and Indicated resources:• Total: 5.2M ozs Au (320 Mt at 0.5 g/t Au, 3.7 g/t Ag)- Measured: 221 Mt at 0.5g/t Au, 3.9 g/t Ag- Indicated: 99 Mt at 0.5 g/t Au, 3.2 g/t Ag Inferred resources: 0.5M ozs Au Total drilling to date ~76,000 meters 2011 scoping study details:• 45,000 tpd heap leach scenario• Average annual Au production 160,000 ozs• Mine life ~13.5 years• Direct cash cost (net of Ag credit) ~$750/oz• Total cash cost (net of Ag credit) ~$1,000/oz• Capital cost ~$455M• NPV @ 8% $1,200 Au: $70M• NPV @ 8% $1,600 Au: $440M Project under reviewConverse, Nevada
  18. 18. 185 Year Estimates: Project Time LinesPallancata, PeruInmaculada, PeruGoldfield, Nevada(1)Converse, Nevada2013 2014 2015 2016Q1 Q2 Q3Under ReviewPermit / ConstructionPermit / ConstructionProductionProduction2017Production(1) Goldfield: Heap leach scenario for Gemfield deposit only.Pallancata, PeruGoldfield, Nevada
  19. 19. 194 Year Estimates: IMZ Production and Costs 2012-201680,00060,0002016E2012E2013E2014EGoldEquivalentOunces*100,000Notes:1. Goldfield: Basis July 2012 Feasibility Study.2. Inmaculada: Basis Jan 2012 Feasibility Study, with IMZ updates.3. Pallancata: Basis Dec 31, 2012 reserve and resource estimates.4. Total Cash Costs and Total Production Costs are per the GoldInstitute definition (see Appendix and Footnotes, slide 27).5. All-in Mine Costs are a non Gold Institute definition and compriseTotal Cash Costs plus sustaining capital, mine development,exploration costs, workers’ profit sharing and project-specificinterest expense (based on by-product credit).120,000140,000160,000180,000Pallancata (40% IMZ)(3)Total Cash Costs(4)Goldfield (100% IMZ)(1)Total Production Costs(4)Inmaculada (40% IMZ)(2)200,000240,000220,0002015E$1000$800$600 Cost/oz$1200260,000280,000300,000320,000$1300$400* Gold Equiv ozs based on average 55:1 silver-gold ratio** Industry-average costs basis GFMS Gold Survey 2012updated Sept 2012 – figures are 1H 2012 average(excludes exploration costs).$1100$900$700$500All-in Mine Costs(5)Industry-Avg Total Prodn Costs**1H 2012 ($930)Industry-Avg Total Cash Costs**1H 2012 ($727)
  20. 20. 204 Year Estimates: Pre-tax Cash Flow from Ops + Possible Equity Financing$02013E2014E2015E$200$100$1,000 gold$1,500 gold$1,800 gold1.1. Goldfield: Basis July 2012 Feasibility Study.2.2. Inmaculada: Basis Jan 2012 Feasibility Study, with IMZ updates (IMZ 40%).3.3. Pallancata: Basis Dec 31, 2012 reserve and resource estimates.4. 2012 does not include $38M from sale of Ruby Hill royalty.5. Estimates based on Au equivalent ozs at Ag:Au ratio of 55:1.$300Goldfield (100% IMZ)Pallancata (40% IMZ)Inmaculada (40% IMZ)2016E$ 0$200$100$300$1000 Au$1,500 Au$1,800 AuInmaculada, Peru2012EAngela VeinOutcropPossible $50MEquity Raise
  21. 21. 214 Year Estimates: Total Costs Attributable to IMZ(1) All-in Mine Costs are defined in Appendix and Footnotes, slide 27.(2) Goldfield: Basis July 2012 Feasibility Study. Initial capex of $133M reduced by $75M of debt financing in 2014.(3) Inmaculada: Basis Jan 2012 Feasibility Study. Updated capex in Nov 2012. IMZ $112M share of initial capex estimatereduced by $56M of debt financing in 2013 as part of $140M project debt financing.(4) Pallancata: Basis Dec. 31, 2012 reserve and resource estimates.(5) Corporate costs include dividend payments.$60$100$0$80$40$120$20$1402012E 2013E 2014E 2015E 2016E$60$100$ 0$80$40$120$20$140Goldfield, Nevada748010227 29274259107118Goldfield(2)Inmaculada(3)Pallancata(4)Explorn + Corp costs(5)Projects (All-in Mine Costs(1))Debt Repayment+ InterestOther Costs
  22. 22. 224 Year Estimates: Cum. Op. Cash Flow + Equity Financing vs Spending$2002012E 2013E(1)2014E(2) 2015E$ 02016E$600$400$800$1,000Cum. SpendingCum. Op. Cash. Flow +Equity Financing@ $1,500 Au$200$ 0$600$400$800$1,000Cum. Op. Cash Flow +Equity Financing@ $1,000 Au(1) Includes $140M debt financing in 2013 at Inmaculada (40% ($56M) attributable to IMZ).(2) Assumes $75M of debt financing and $50M of equity financing for Goldfield in 2014.(3) Estimates based on Au equivalent ozs at Ag:Au ratio of 55:1.Cum. Op. Cash Flow +Equity Financing@ $1,800 Au
  23. 23. 23KirklandLakeAlamosB2GoldAuricoLakeShoreSanGoldTimminsAlacerSemafoArgonautIMZGOLDCORPBARRICKAGNICOEnterprise Value Gold Resource Ounces (M+I only)$200$100$50EVUS$/GoldResourceOzs$250$300$350$400Source: -Company Disclosure, Bloomberg as of April 5, 2013. Based on most recent financials.- Enterprise Value = market capitalization plus debt less cash.1614121086M+I(ozs)18220$56 4$150$67ANGLOGOLDGoldenStar$75$74M + I Resource ozs$56 $62Aurizon$97$172$249$269$81$70$166$144$170$199160 220 2893$137
  24. 24. 24IMZ - The Investment Case Growing Production and Cash Flow Pallancata (IMZ’s 40% interest)• 2013: ~3.5M oz Ag Equiv. (64,000 oz Au Equiv)~$20-25M free cash flow Inmaculada (IMZ’s 40% interest)• Production date: 2H 2014• 80,000 oz/year Au Equiv (Avg LOM estimate)• 2015 free cash flow: $60-65M (1) Growth from Nevada Project (IMZ 100%) Production at Gemfield - mid 2015• 2016 free cash flow: $25-30M (1) “Call Option” on 5M M+I Au ozs at Converse Maintain Active Exploration Program Nevada: Goldfield, Del Oro/Rye, Stonewall Spring Peru: Acoma Strong Balance Sheet $54M in cash and debt-free C$0.12/share annual dividend (~3.2% current yield)Camp at Inmaculada, PeruDevelopment Adit, Inmaculada, Peru(1) Assumes $1,600 Au, $30 Ag
  25. 25. 25News Flow/Catalysts in 2013 Fiscal Q3 Financial Results: - Q2 2013 Nevada, USA: Goldfield:- Resource, mine plan and capital cost update - Q2 2013 Stonewall Spring and Del Oro/Rye:- Commence drilling - Q2 2013 Peru: Inmaculada project update - Q2 2013 Acoma – commence drilling - Q2 2013 Ecuador: Sale of projects - H1 2013
  26. 26. 26Contact Information Website: www.intlminerals.com Email: information@intlminerals.com Investor Relations• Paul DurhamVP - Corporate RelationsOffice phone: +1 (203) 883 8359Cell Phone: +1 (203) 940 2538Email: pdurham@intlminerals.com• Christine StewartRenmark Financial (Canada)Toronto Office: +1 (416) 644 2020Montreal Office: +1 (514) 939 3989Email: cstewart@renmarkfinancial.com Headquarters (U.S.A.)• Scottsdale, Arizona: +1 (480) 483 9932Fax: +1 (480) 483 9926Email: information@intlminerals.com• Oliver HolzerMarketing Consultant (Europe)Swiss office: +41 44 853 00 47Mobile: +41 79 402 39 33Email: oholzer@intlminerals.com
  27. 27. 27APPENDIX & FOOTNOTES1. See slides attached for the details of Pallancata and Inmaculada reserve/resource estimates. Please refer to theCompany’s NI 43-101 reports and related news releases filed on SEDAR for a discussion of assumptions,parameters and material risk factors. Estimated mineral resources that are not mineral reserves do not havedemonstrated economic viability.2. The Inmaculada feasibility study information and reserve and resource estimates were announced in a newsrelease dated January 11, 2012. A Technical Report on Inmaculada was filed by the Company on SEDAR onFebruary 24, 2012.3. The Goldfield feasibility study information and reserve and resource estimates were announced in a news releasedated July 17, 2012. A Technical Report on Inmaculada was filed by the Company on SEDAR on August 31, 2012.4. The Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent consultant R.Mohan Srivastava, a Qualified Person under NI 43-101 and has an effective date of February 1, 2011.5. IMZ uses the Gold Institute’s definitions for costs per ounce: Direct Site Costs per ounce: direct mining costs; processing; mined ore inventory adjustment; mine G&Acosts; and by-product credits. Total Cash Costs per ounce: Direct Site Costs plus: management fees; product transportation, smelting andrefining costs; and taxes (other than federal income tax). Total Production Costs per ounce: Total Cash Costs plus: depreciation and amortization. Reclamation costsare not included by IMZ.6. IMZ also uses a non Gold Institute definition for costs per ounce: All-in Mine Costs per ounce: Calculated using the Gold Institute’s Total Cash Costs per ounce using by-product credits plus sustaining capital, mine development, exploration costs, workers’ profit sharing andproject-specific interest rate.7. IMZ accounts for its 40% ownership of the Pallancata Mine and the Inmaculada project on an equity accountingbasis.
  28. 28. 28Pallancata - December 31, 2012 Reserves & ResourcesNotes: 1. Gold and Silver Eq. values based on 51:1 Ag/Au ratio, determined by using a combination of metal prices, metallurgical recoveries and cost of sales.2. Measured and Indicated Resources include Proven and Probable Reserves. CIM definitions were complied with for mineral resources and reserves.3. Cut-off grade of 128 g/t silver equivalent.4. Resource and reserve estimates have an effective date of December 31, 2012.5. Numbers have been rounded in all categories to reflect the precision of the estimates.6. Hochschild’s data and methodology were reviewed by IMZ’s VP of Corporate Development, Nick Appleyard and VP Special Projects, Alan Matthews,both Qualified Persons as defined by National Instrument 43-101.100% Basis (40% Attributable to IMZ)Basis $1,200 gold, $20.00 silverReserves MillionTonnesSilver(g/t)Gold(g/t)Silver(oz)Gold(oz)SilverEquiv (1)(ozs)GoldEquiv(1)(ozs)Proven 2.22 276 1.3 19,683,000 94,000 24.4M 483,000Probable 1.05 269 1.3 9,090,000 43,000 11.3M 222,000Proven &Probable3.27 273 1.3 28,773,000 137,000 35.7M 705,000ResourcesMeasured 3.31 358 1.7 38,045,000 179,000 47.1M 930,000Indicated 1.19 338 1.6 12,955,000 61,000 16.0M 315,019Measured &Indicated (2)4.50 352 1.7 51,000,000 240,000 63.2M 1,247,000InferredResources3.34 338 1.4 36,191,000 151,000 43.8M 866,000
  29. 29. 29Pallancata Longitudinal Section - Looking Northeast"!DDH OROVEGADDH HOC . ejecutadoDDH Programa 2010DDH Programa 2011SYMBOLS LITHOLOGIEST. And. - PómezT. And. - LapilliL. And.Porf.T. And.- Lit..L. And.Afan. Domo / FlujoRhyodaciteHipabisalDiorite! "Measured ResourcesIndicated ResourcesInferred ResourcesRESOURCESEXTREMOSUR ESTEDomo Sarnahuiri3,0003,4003,8004,2004,4004,6004,8004,0003,6003,200HUARARANINW PALLANCATASOUTHEASTPALLANCATACENTRALPALLANCATAWESTPALLANCATAEASTEXTREMESOUTHEASTPALLANCATAWEST= Areas Currently in Production1,300m5,000mPALLANCATASOUTHEAST= Areas in DevelopmentA A’
  30. 30. 30Inmaculada, Peru - Reserves & Resources- January 20121. Numbers are rounded to reflect the precision of a resource estimate.2. Measured and Indicated Resources include Proven and Probable Reserves.3. Cut-off grade for estimated Reserves is 2.3 g/t gold equivalent. Cut-off grade for estimated Resources is 1.5 g/t gold equivalent. Gold equivalent ounces areestimated for mineral resources using a 60:1 silver to gold ratio.4. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.5. The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM),Standards on Mineral Resources and Reserves,Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council December 11, 2005.6. The reserve and resource estimates have an effective date of January 11, 2012.Reserves MillionTonnesGold(g/t)Silver(g/t)Gold(oz)Silver(oz)Gold Equiv(oz)Proven 3.84 3.4 106 421,000 13,125,000 640,000Probable 3.96 3.3 134 424,000 17,796,000 707,000Proven & Probable 7.80 3.4 120 845,000 30,140,000 1,347,000ResourcesMeasured 3.28 4.1 128 430,000 13,500,000 655,000Indicated 3.78 4.1 159 490,000 19,300,000 812,000Measured & Indicated (2) 7.07 4.1 144 930,000 32,800,000 1,477,000Inferred Resources 4.94 3.9 152 620,000 24,200,000 1,023,000100% Project Basis, 40% Attributable to IMZBase-Case: $1,100 Gold, $18.00 Silver
  31. 31. 31Inmaculada - Multiple Targets21,000 ha. propertyInmaculadaAngela VeinAngela VeinOutcrop
  32. 32. 321010505010010504600 m50501010SW NE4200 m2510255010102525501005013910251001010050100501000010025100100252525100100501010010150102001025010300103501040010450105001055010600106501070010750108001085010900114001100011450111001120011300115001160011700118001190012000Meters50 1000 200ooooooSurfaceGrade-Thickness Contours:Au Equivalent (g/t) x true width (m)Drill Holes withNo Significant ValuesDrill Hole Mineralized Intercepts255010100oEastern Limit of Feasibility StudyInmaculada - Angela Vein - Long Section (Looking Northwest)4300 m4400 m4500 mInmaculadaVein Outcrop 21,000 Hectares (210 sq km) - 60 km SW of Pallancata Low-Sulfidation Epithermal Vein System Over 2 km in Strike Length and 300m Vertical Extent Open East and West and One of Multiple Veins on Property 99% of Known Mineralization Not Exposed on Surface
  33. 33. 33Inmaculada, Peru (40% IMZ, 60% HOC) – Jan. 2012 Feasibility Study ResultsItem Units 100% Project IMZ 40%Base Case gold price $ per ounce $1100 $1100Base Case silver Price $ per ounce $18 $18Initial Mine life years 6.3 6.3Expected Production Date date Dec. 2013 Dec. 2013Average annual gold production ounces/year 124,000 49,600Average annual silver production ounces/year 4,204,000 1,682,000Average annual gold equiv. production4 ounces/year 194,000 78,000Life-of-mine gold production ounces 783,000 313,000Life-of-mine silver production ounces 26,488,000 10,600,000Life-of-mine gold equiv. production 4 ounces 1,220,000 488,000Plant processing rate (3,500 tpd) tonnes/year 1,260,000 1,260,000Metallurgical recovery – gold % 95.6% 95.6%Metallurgical recovery – silver % 90.6% 90.6%Initial capital 2 $ millions $315 $91Direct site costs 3 per tonne processed $74 $74Direct site costs3,5 per ounce Au (with Ag credit) $133 $133Total cash operating costs3,5 per ounce Au (with Ag credit) $172 $262IRR pre-tax/post-tax % 18% / 12% 26% / 21%Pre-tax /post-tax cash flow (non-discounted)$ millions$323 / $194 $136 / $95Pre-tax/post-tax NPV, 5% discount rate $ millions $181 / $90 $85 / $57Pre-tax/post-tax NPV, 8% discount rate $ millions $120 / $46 $63 / $401. IMZ owns a 40% interest in the Inmaculada project. Under the joint venture agreement signed between IMZ and Hochschild, in December2010, Hochschild must contribute the first $100 million of feasibility study, project development and capital costs with subsequent costsfunded 60% by Hochschild and 40% by IMZ. Hochschild will receive a 7% management fee as operator of Inmaculada.2. Initial capital includes $25 million in contingency allowance and is based on Q4 2011 estimates. No escalation factors have been applied.3. Direct site costs include mining, processing and mine administration. Total cash operating costs include direct site costs plus estimates ofrefining charges and government royalty (but do not include workers profit sharing which is 8% of net income). IMZ costs also includeestimate of management fee.4. Gold equivalent (“gold equiv.”) numbers are estimated using a silver-to-gold ratio of 60:1 calculated by using the ratio of the base casemetal prices.5. By-product accounting is in accordance with the Gold Institute definition.
  34. 34. 34Inmaculada, Peru - Sensitivity to Gold & Silver PricesGold Price / Silver Price ($/oz)BASE CASECategory $900 /$15.00$1,100 /$18.00$1,300 /$21.00$1,500 /$25.00$1,700 /$28.00$1,900 /$31.00IRR 5% / 9% 18% / 26% 28% / 40% 38% / 55% 46% / 67% 53% / 78%Cash Flow($ millions)$88 / $42 $323 / $136 $559 / $231 $821 / $335 $1,057 / $429 $1,292 / $523NPV 5%($ millions)$6 / $15 $181 / $85 $356 / $155 $551 / $233 $726 / $302 $901 / $372NPV 8%($ millions)-$28 / $3 $120 / $63 $268 / $122 $433 / $188 $581 / $247 $729 / $306Pre-tax Sensitivity Analyses100% Project Basis v 40% Attributable to IMZ(base-case in bold)NOTE: $181 / $85 = 100% Project Basis / 40% Attributable to IMZ
  35. 35. 35Value Added by Acquisition of Ventura GoldVentura Gold Acquisition 2010 (for Inmaculada)US$Original Purchase Price 13.7M shares (± $60M)Acquisition cost, net of sale of 11% interest to HOC $ 0.4MExploration spending by IMZ $12.1MTotal IMZ investment $12.5MTotal Au Equiv. M + I ozs (IMZ 40% share) 0.59M**excludes 0.41 M Inferred ozsCost Per Ounce (Au Equiv.) US$Acquisition cost per ounce $ 0.68/ozDevelopment cost per ounce $20.51/ozTotal cost per ounce Au $21.19/ozTangible Results to Date Inmaculada under construction Reduced IMZ initial capital obligations Significant resource expansion potential
  36. 36. 36MilltownGemfieldPrincipalGold DepositOther TargetsGoldfield Main: 421,000 ozGemfield: 574,000 ozMcMahon Ridge: 238,000 ozGold Resources:1.2M M+I ozsGoldfield, Nevada – Principal Target AreasMainGoldfieldReno - 4.5 hoursLas Vegas - 2.5 hoursMcMahonRidgeGemfieldMidnightBelmontNEGoldfieldTognoniTomKeaneCentralZoneMilltownMineralWealthSinterSimeroneEsmeraldaCountyNyeCountyMiles0 0.5 1.0 1.5
  37. 37. 37Goldfield, Nevada - Mineral Resources - February 2011Deposit Resources Tonnes Gold(g/t)ContainedGold (oz)Gemfield(cut-off 0.3 g/tgold)Measured 12,182,000 1.1 438,000Indicated 4,852,000 0.9 136,000M & I 17,034,000 1.0 574,000Inferred 4,173,000 0.6 74,000Proven 11,041,000 1.2 412,000Probable 3,246,000 0.9 99,000P & P 14,287,000 1.1 511,000McMahonRidge (cut-off0.4 g/t gold)Measured -------- ----- ---------Indicated 5,514,000 1.3 238,000M & I 5,514,000 1.3 238,000Inferred 108,000 1.1 4,000GoldfieldMain (cut-off 0.4g/t gold)Measured -------- ----- ---------Indicated 8,549,000 1.5 421,000M & I 8,549,000 1.5 421,000Inferred 6,591,000 1.7 360,000TotalGoldfield(see cut-offgrades above)Measured 12,182,000 1.1 438,000Indicated 18,915,000 1.3 795,000M & I 31,097,000 1.2 1,233,000Inferred 10,872,000 1.3 438,000Proven 11,041,000 1.2 412,000Probable 3,246,000 0.9 99,000P & P 14,287,000 1.1 511,000*Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent consultant R. Mohan Srivastava, a Qualified Person under NI 43-101 and has aneffective date of February 1, 2011. Gemfield reserve estimate was prepared by D. Anderson of Micon International Ltd (July 2012). Gemfield and McMahon Ridge resourceestimates were calculated by R. Mohan Srivastava with an effective date of July 17, 2012.
  38. 38. 38Goldfield, Nevada - Gemfield Deposit: Feasibility Study Results- July 2012Item Units 100% ProjectBase Case gold price $ per ounce $1,350Initial Mine life years 6.5Average annual gold production ounces/year 66,000Life-of-mine gold production ounces 430,000Plant processing rate (6,000 tpd) tonnes/year 2,190,000Average Metallurgical recovery – gold % 84%Initial capital cost 1 $ millions $133Sustaining capital cost $ millions $16Direct site costs 2 per tonne processed $15.67Cash operating costs (with Ag credit) 2,4 per ounce Au $526Total cash operating costs (with Ag credit) 2,4 per ounce Au $611IRR pre-tax/post-tax 3 % 22% / 18%Pre-tax /post-tax cash flow (non-discounted) 3 $ millions $168 / $132Pre-tax/post-tax NPV, 5% discount rate 3 $ millions $102 / $75Pre-tax/post-tax NPV, 7% discount rate 3 $ millions $83 / $591) Initial capital of $133M includes $20M in contingency allowance and is based on Q2 2012 estimates. No escalation factors havebeen applied. Capital breakdown: Plant and Infrastructure $93M, Road $20M, Mine $20M.2) Direct site operating costs include mining, processing and G&A costs. Cash operating costs include direct site costs plusestimates of transport and refining charges, net the silver credit. Total cash costs include cash operating costs plus a 5% NSRroyalty and the Nevada Net Proceeds on Minerals tax. Direct site operating costs per tonne of ore comprise processing $6.36,mining $6.39 and G&A $2.92.3) Cash flow and NPV estimates all include a 5% Net Smelter Return (“NSR”) royalty due to a third party.4) By-product accounting is in accordance with the Gold Institute definition.
  39. 39. 39Goldfield, Nevada – Gemfield Deposit: Sensitivity to Gold PricePre-tax Sensitivity AnalysesNote: Based on feasibility study at 6,000 tpd.
  40. 40. 40Goldfield, Nevada - Gemfield Deposit - Cross SectionCross Section 47,000N (Looking North)
  41. 41. 41IMZ – Value Added by Acquisition of Metallic VenturesMetallic Ventures Purchase 2010 (for Goldfield & Converse)US$Original purchase price 8.5M shares + $24M cash (± $60M)Acquisition cost, net of cash in Metallic $51.5MCash received from royalty - $47.8MNet cost to IMZ $ 3.7MExploration spending by IMZ to date +$31.3MTotal IMZ investment $35.0MTotal Au Equiv. M + I ozs 6.79M*(*excludes 0.98 M Inferred Au Equiv. ozs)Cost Per Ounce (Au equiv.) US$Acquisition cost per ounce $0.54/ozDevelopment cost per ounce $4.61/ozTotal cost per ounce Au $5.15/ozTangible Results to Date One project (Gemfield) in development Significant resource expansion potential
  42. 42. 42Converse, Nevada - Mineral Resources - December 2011Resources Tonnes Gold(g/t)Silver(g/t)Gold(oz)Silver(oz)Gold Equiv.(oz)Measured 221,172,000 0.51 3.9 3,590,000 27,828,000 3,868,000Indicated 99,057,000 0.50 3.2 1,582,000 110,125,000 1,683,000Measured &Indicated320,229,000 0.50 3.7 5,172,000 37,953,000 5,552,000Inferred 31,242,000 0.51 3.0 507,000 3,013,000 537,0001. Numbers are rounded to reflect the precision of a resource estimate.2. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.3. Gold equivalent ounces are estimated for mineral resources using 100:1 silver to gold ratio that assumes base casemetal prices of $1,300 and $25 for gold and silver respectively and metallurgical recoveries of 60% for gold and 31% forsilver.4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy andPetroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIMStanding Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.5. IMZ is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, orother relevant factors that could materially affect the validity of these resource estimates.
  43. 43. 43IMZ - Converse, Nevada - IMZ 100% - Scoping Study - December 2011Operation • Open pit, 45,000 tpd.• Heap leach (Dore)• Recovery: ~60% Au, 30% Ag• 13.5 year mine life• Strip ratio: 2.3:1P&P Reserves • No reserves defined to dateResources • M+I : 320Mt @ 0.50 g/t Au and 3.7 g/t Ag(5.2M oz Au, 38.0M oz Ag)• Inferred: 31.2Mt @ 0.51 g/t Au and 3.0 g/t Ag(507,000 oz Au, 3.0M oz Ag)ProductionEstimates• Average/year: 160,000 oz Au, 638,000 oz Ag• Direct Cash Costs /oz: $750 (net of Ag credit)• Total Cash Costs/oz (incl capex): $1,000 (net of Ag credit)Initial Capital • $455 millionBase CaseEconomics$1,300/oz Gold$25/oz Silver• NPV0%: ~$494M• NPV8%: $70M• IRR: 11%• Cost per tonne ore processed: $8.35Sensitivity •$1600/oz Au & $31/oz Ag:NPV0%= $1,158M, NPV8%= $440M, IRR=22%Outlook • Project under reviewProduction Estimate219156183151Avg Pre-tax Operating Cash Flow /YearAu Price / Ounce$1000 $1200 $1400 $1600 $1800Year 1 Year 2 Year 3 Year 4Gold (,000ozs)$120$80$40$ 0Millions$160$2000$151$119-$13$20$53$86$184$2200$200
  44. 44. 44Converse Project, Nevada - Scoping Study ResultsItem UnitsBase Case gold price $ per ounce $1300Base Case silver price $ per ounce $25Initial mine life years 13.5Strip ratio Waste rock : mineralized rock 2.3 : 1Average annual gold production ounces/year 160,000Average annual silver production ounces/year 638,000Average annual gold equiv. production 3 ounces/year 173,000Life-of-mine gold production ounces 2,165,000Life-of-mine silver production ounces 8,471,000Life-of-mine gold equiv. production 3 ounces 2,328,000Plant processing rate (~45,000 tpd) tonnes/year 16,556,000Metallurgical recovery – gold % 60%Metallurgical recovery – silver % 31%Initial capital 2 $ millions $455Total cash operating cost per tonne processed $8.35Total cash operating cost 4 per ounce Au (with Ag credit) $745Pre-tax IRR % 10.5%Pre-tax cash flow (non-discounted) 5 $ millions $494Pre-tax NPV, 5% discount rate 5 $ millions $185Pre-tax NPV, 8% discount rate 5 $ millions $701) The scoping study is preliminary in nature, in that it includes inferred mineral resources that are considered too speculativegeologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Thereis no certainty that the results of the scoping study will be realized and actual results may vary substantially.2) Initial Capital includes $60 million in contingency allowance. Costs are based on Q3 2011 estimates and no escalation factors havebeen applied.3) Gold equivalents for production are estimated using a silver-to-gold ratio of 52:1 calculated by using the base case metal prices.4) By-product accounting in accordance with the Gold Institute definition.5) Cash flow and Net Present values (“NPV”) are all shown pre-tax, but include 5% net smelter return (“NSR”) royalty payable to thirdparties and refining and transportation charges.
  45. 45. 45Converse Project, Nevada- Sensitivity to Gold & Silver PricesGold Price / Silver Price ($/oz)BASE CASECategory$1,000/$19.00$1,200/$23.00$1,300/$25.00$1,400/$27.00$1,600/$31.00$1,800/$35.00$2,000/$39.00IRR -4.3% 6.0% 10.5% 14.7% 22.5% 29.8% 36.8%Cash Flow($ millions)-171 272 494 715 1,158 1,602 2,045NPV 5%($ millions)-269 33 185 336 639 941 1,244NPV 8%($ millions)-300 -54 70 193 440 687 934Pre-tax Sensitivity Analyses(base-case in bold)
  46. 46. 46Directors and Other OfficersDirectors Position Profession NationalityStephen Kay President/CEO Geologist BritishRod McKeen Corp. Secretary andLegal Counsel, CanadaLawyer CanadianMike Smith Audit Committee Chairman CharteredAccountantCanadianGabriel Bianchi Independent Director Asset Manager SwissRoberto Baquerizo Independent Director Asset Manager Ecuadorian/U.S.Jorge Paz Legal Counsel, Ecuador Lawyer Ecuadorian/SwissJohn Hick Chair of Compensation andCorporate GovernanceCommittees.Lead Independent DirectorLawyer CanadianOther OfficersScott BrunsdonNick AppleyardCFOVP Corp. DevelopmentEconomistGeologistCanadian/U.S.AustralianPaul Durham VP Corp. Relations Geologist BritishAlan Matthews VP Special Projects Mining Engineer British

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