20110711 minera agm

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20110711 minera agm

  1. 1. Silver, Gold & Copper<br />in Argentina<br />TSX: MAI OTC: MNEAF<br />July 2011<br />1<br />
  2. 2. Cautionary Statement<br />This presentation contains certain "forward-looking statements", including, but not limited to, the statements regarding Minera Andes Inc.’s and its subsidiaries’ and affiliates’ (collectively the “Company’s”) strategic plans, forecasts, projections, future financial or operating information, evolution of mineral resources and reserves, work programs, development plans, operating performance and plans, exploration budgets and plans, or other expectations or beliefs as to future events or results. This includes descriptions and summaries of certain proposals received from significant shareholders, which the Company and its directors are currently evaluating. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, the completion of a proposed business combination between Minera Andes and US Gold (including the numerous approvals required in connection with such a business combination), risks related to business integration as a result of a successful business combination, factors associated with fluctuations in the market price of metals, mining industry risks, risks associated with foreign operations, risks associated with operations not controlled by the Company, environmental risks and hazards, legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labour; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits, currency fluctuations, uncertainty as to calculation of mineral reserves and other risks.  Reference is made to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. The Securities & Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this presentation, such as "mineral resources" and “measured”, “indicated” and “inferred” mineral resources that are normally not permitted to be used in filings made with the SEC. Investors are cautioned not to assume that any part of the mineral deposits in such categories will ever be converted into reserves. Accordingly, information in this presentation containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the disclosure requirements of the U.S. federal securities laws. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.  <br />
  3. 3. MAI: TSX<br />MNEAF: US OTC<br />NILS ENGELSTAD<br />VICE PRESIDENT,CORPORATE AFFAIRS<br />
  4. 4. MAI: TSX<br />MNEAF: US OTC<br />Formal<br />Proceedings<br />
  5. 5. MAI: TSX<br />MNEAF: US OTC<br />PERRY ING<br />CFO<br />
  6. 6. Balance Sheet<br /> USD Millions<br />
  7. 7. Statement of Operations<br />USD Millions<br />
  8. 8. Share Capital<br />In millions<br />
  9. 9. Minera Santa Cruz<br />In millions of USD<br />
  10. 10. MAI: TSX<br />MNEAF: US OTC<br />JIM DUFF<br />COO<br />
  11. 11. Minera Andes’ AssetsSilver, Gold & Copper<br />
  12. 12. SAN JOSÉ MINESilver + GoldProduction <br />
  13. 13. San JoséA Large Silver Mine<br /><ul><li>2010 Production:Silver – 5.3 million oz (@$9.67/oz Ag*)Gold - 84,000 oz (@ $568/oz Au*)
  14. 14. Inferred resources nearly doubled – 12 year resource life
  15. 15. Exploration continuing in 2011
  16. 16. 16 day strike in April-May 2011</li></ul>* Cash operating costs on a co-product basis<br />
  17. 17. Dec 2010 Resource and Reserves*<br />Resources (Significant Increase)<br />2009 - Cutoff grade of 149 eqAg g/t using $925/oz Au and $15/oz Ag prices, Ag:Au ratio 60:1<br />2010 - Cutoff grade of 198 eqAg g/t using $900/oz Au and $15/oz Ag prices, Ag:Au ratio 60:1<br />Reserves<br />2009 – Breakeven cutoff value of $125.60/t using $810/oz Au and $13.50/oz Ag prices, Ag:Au ratio 60:1<br />2010 – Breakeven cutoff valueof $191.30/t using $900/oz Au and $15.00/oz Ag Prices, Ag:Au ratio 60:1<br />*Reported March 28, 2011 in the company’s annual information form<br />
  18. 18. San José Mine Production<br />
  19. 19. Prospective Exploration Properties<br />
  20. 20. Santa Cruz Exploration Targets<br />
  21. 21. Los Azules<br />3,500 m Above Sea Level<br />
  22. 22. Los AzulesAmongst Copper Giants<br />18% ofWorld’s Copper Resources<br />
  23. 23. Exploration and Infill Drilling<br />
  24. 24. Exploration and Infill Drilling<br />
  25. 25. Los Azules – Longitudinal Section<br />
  26. 26. 2010-2011 Field Season Accomplishments<br /><ul><li>9 infill drill holes - 2 deep exploration holes
  27. 27. Advanced Preliminary Feasibility Study
  28. 28. Preliminary hydrologic model
  29. 29. Geotechnical evaluations
  30. 30. Access road evaluation
  31. 31. Environmental assessments and base line monitoring
  32. 32. Metallurgical test work</li></li></ul><li>2011-2012 Goals<br /><ul><li>Continue exploration and infill drilling
  33. 33. Advance Preliminary Feasibility Study
  34. 34. Metallurgical test work
  35. 35. environmental studies and baseline monitoring</li></li></ul><li>Los Azules2010 Resource<br />g/t = grams per tonne<br />Resources not recalculated in 2011 because drilling during 2010-2011 season would not materially change resources<br />
  36. 36. Updated Preliminary Economic Assessment Highlights<br />100,000 TPD ore production<br />LOM average 375 million lbs Cu/year <br />CAPEX $2.9 Billion<br />Cash Operating Cost $0.96/lb<br />Payback in 3 years @ $3/lb<br />25 year Mine Life<br />
  37. 37. MAI: TSX<br />MNEAF: US OTC<br />ROBERT R. MCEWEN<br />CHAIRMAN, PRESIDENT & CEO<br />
  38. 38. 28<br />
  39. 39.
  40. 40. Dow vs Gold Ratio<br />
  41. 41. Silver / Gold Exchange Ratio# of ozs Silver = 1 oz Gold<br />1980 – Present<br />Range14 - 100<br />
  42. 42. LIFE IS FULL OF DISTRACTIONS. NO MATTER HOW TEMPTING IT MAY BE TO VEER OFF YOUR PATH, KEEP YOUR GOALS IN FOCUS AND KEEP MOVING FORWARD.<br />- Gabriel Cid<br />
  43. 43. MarketRewards<br /><ul><li>Size
  44. 44. Quality
  45. 45. Growth</li></li></ul><li>+<br />Creating a High Growth, Low Cost<br />Mid-tier Silver Producer<br />With Big Growth Pipeline<br />
  46. 46. Combination Benefits<br /><ul><li>Asset Diversification
  47. 47. Greater Trading Liquidity
  48. 48. Increased Research
  49. 49. Index Inclusion</li></li></ul><li>Diversified in the Americas<br />* San Jose: includes just MAI 49% interest<br />
  50. 50. Production & DevelopmentPipeline<br />
  51. 51. Significant Growth Pipeline<br />
  52. 52. Rob McEwen Big Ownership – No Salary!Compared to Other CEO’s and No Salary<br />$345 MM<br />27x <br />Avg.<br />$39 MM<br />$31 MM<br />$5 MM<br />$3 MM<br />$1 MM<br />$0 MM<br />McEwen<br />Mining<br />First <br />Majestic<br />Silvercorp<br />Hecla<br />Coeur<br />D’Alene<br />Pan<br />American<br />Silver<br />Standard<br />* As of Jun 13, 2011<br />
  53. 53. High Growth + Low CostPro-forma Estimates<br />7.5 MM oz<br />Growing<br />Production<br />Lowering Costs<br />Cash Cost / Silver oz*<br />(Gold by-product)<br />2.5 MM oz<br />-$0.40<br />-$1.50<br />2011E<br />2014E<br />2011E<br />2014E<br />*Cash cost reported on a by-product basis<br />
  54. 54. Creating a Low Cost, High Margin ProducerCash Cost (By-Product Basis): McEwen Mining vs Peers<br />Silver<br />Standard<br />$10.95<br />First<br />Majestic<br />$8.25<br />Pan<br />American<br />$7.85<br />Coeur <br />$6.50<br />Hecla<br />$1.05<br />McEwen<br />Mining<br />Silvercorp<br />-$7.60<br />2011<br />-$0.40<br />2014<br />-$1.50<br />*Cash cost reported on a by-product basis<br />** As of March 31, 2011<br />
  55. 55. McEwen Mining Market Cap vs Peers<br />$3.3 B<br />$2.2 B<br />$2.2 B<br />$2.1 B<br />$2.1 B<br />24.3 MMoz<br />$1.8 B<br />$1.6 B*<br />7.0 MMoz<br />8.5 MMoz<br />10.6 MMoz<br />16.8 MMoz<br />Est.7.5 MMoz<br />5.6 MMoz<br />McEwen<br />Mining<br />Silvercorp<br />First<br />Majestic<br />Silver<br />Standard<br />Hecla<br />Coeur<br />Pan<br />American<br />*Pro-forma market cap** As of July 11, 2011<br />
  56. 56. Strong Treasury - No Bank DebtCash + Silver / Gold Bullion<br />$111 MM<br />$90 MM<br />$21 MM<br />Pro-forma<br />US Gold<br />Minera Andes<br />* As of June 30, 2011<br />
  57. 57. Pro-forma Resource Estimates<br />81.2 MM oz<br />10.3 B lbs<br />3.8 MM oz<br />51.1 MM oz<br />2.2 B lbs<br />0.9 MM oz<br />M&I<br />Inferred<br />M&I<br />Inferred<br />Indicated<br />Inferred<br />Silver<br />Gold<br />Copper<br />* As of Dec 31, 2010<br />
  58. 58. Past SuccessGoldcorp + Wheaton Combination<br />Premium Paid: 7%<br />Goldcorp Performance<br />Day of Announcement <br />Goldcorp Performance<br />12 Months Upon Closing<br />$0.01<br />170% <br />
  59. 59. 52 Week Trading $ Volume<br />Cdn<br />US<br />$0.7 MM<br />5%<br />$13 MM<br />95%<br />US Gold<br />$3 MM<br />80%<br />$0.8 MM<br />20%<br />Minera<br />$3.7 MM<br />20%<br />$13.8 MM<br />80%<br />Pro-forma<br />*US Gold – NYSE & TSX Minera – OTC.BB & TSX In US $<br />
  60. 60. 52 Week Hi/Lo Share Price<br />Hi<br />Lo<br />US Gold<br />Minera<br />Ratio@ 0.40 <br />$9.58<br />$3.47<br />0.36$3.83<br />$4.35<br />$0.70<br />0.16<br />Hi & LowOccurredon thesame day<br />*USD<br />
  61. 61. Share Price Exchange Ratio<br />MNEAF/ UXG July 2009 - 2011<br />
  62. 62. Share Exchange RatioJune 1 - Present<br />AnnouncementJune 14<br />
  63. 63. Share Exchange RatioStarting 1 Day Before Announcement<br />Positive<br />
  64. 64. LIFE HAS TAUGHT ME THAT WE ARE CAPABLE OF FAR GREATER THINGS THAN ONE CAN POSSIBLY IMAGINE!<br />

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