Agm institutional presentation aug 29 2011


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Agm institutional presentation aug 29 2011

  2. 2. AGM-­‐V   DISCLAIMERCertain statements contained in this presentation regarding the company and itsactivities constitute forward-looking statements . All statements that are not historicalfacts, including without limitation statements regarding future estimates, plans,objectives, assumptions or expectations of future performance are forward-lookingstatements . We caution you that such forward-looking statements involve knownand unknown risks and uncertainties that could cause actual results and future eventsto differ materially from those anticipated in such statements. Such risks anduncertainties include fluctuations in metal prices, unpredictable results of exploration,uncertainties inherent in the estimation of mineral resources and reserves, fluctuationsin the costs of goods and services, problems associated with exploration and miningoperations, changes in legal, social or political conditions in the jurisdictions where thecompany operates, lack of appropriate funding and other risk factors. There can be noassurance that such forward-looking statements will prove to be accurate. Potentialinvestors should conduct their own investigation as to the suitability of investing insecurities of the company. Martin S. Oczlon, PhD Geo, is the qualified person for thecompany as required by NI 43-101 (Canadian Securities Administrators). The companyundertakes no obligation to update any forward-looking statements . We seek SafeHarbour. 2
  3. 3. AGM-­‐V   Directors & ManagementJacob Willoughby — President & director. Joined board Feb 2010 & became president April 28th 2010Jean-Pierre Colin — Chairman. Director since Oct 2010, also a director of Premier GoldDr. Martin Oczlon — CEO & director. Founder & largest individual shareholderJim O’Neill — CFO. Joined Aldridge June 2011Daniella Dimitrov — Director & legal advisor. Joined board Oct 2010Barry Hildred — Director. Joined board April 2010John F. Cook — Director. Mining Engineer and former Chairman of Premier Gold and Wolfden ResourcesEd Guimaraes — Director. Joined board May 2011. Served as Executive VP & CFO at Aur Resources prior to it being acquired by Teck Resources 3
  4. 4. AGM-­‐V   Market Highlights (as of August 29, 2011)Symbol Canada TSX-V: AGM Analyst coverage Frankfurt: AIW Clarus Securities Inc.Shares outstanding 37.1 million Mackie Research Capital CorporationDirectors & Insiders about 15 %Shares fully diluted 51.7 million 4.1 m options @ avg. strike of $1.43, 10.5 m AGM  Share  Price warrants @ avg. strike of $1.72)  $2.50 300K (Exercising all options and  $2.00 250K 200K warrants brings in C$23.5m)  $1.50 150K  $1.00 100K52 week high / low C$ 2.25 / $0.72  $0.50 50K  $-­‐ 0KRecent price C$ 0.90Market cap C$33.4 million Daily  Volume Share  PriceCash C$ 9.5 millionTop institutional RBIM, Colonial First State, USshareholders Global, Libra, Excalibur, Sprott, JVAR and Creststreet 4
  5. 5. AGM-­‐V  Yenipazar - Location Map AGM – Yenipazar Au-Ag-Cu-Pb-Zn Project 5
  6. 6. AGM-­‐V   Turkey: A Great Place for MiningPolitically stable, pro-mining, non-bureaucraticExcellent infrastructure roads, electricity, water, railwaysNew, modern and western oriented mining code (2004)Low tax rate, tax incentives in our area, VAT re-payments•  0.5-1 % effective royalty, 20 % corporate taxOne of the world s last under explored mineral-rich regionsRecent large discoveries include:•  EGO-T: Kisladag (254 Mt @ 0.95 g/t Au – 7.8 M oz Au = $10.7 B )•  ANO-T: Cöpler (90 Mt @ 1.87 g/t Au – 5.4 M oz Au = $7.4 B)•  ENK-ASX: Caldag (33 Mt @ 1.3 % Ni – 946 M lbs Ni = $9.8 B excluding Cobalt value)•  AGM-V: Yenipazar (+25 Mt @ 1.1 g/t Au, 33.8 g/t Ag +Zn+Pb+Cu = $4.3 B) 6
  7. 7. AGM-­‐V   Yenipazar Open Pit Resources Million Au Ag Cu Pb Zn Tonnes g/t g/t % % %Ind. 24.28 1.09 33.8 0.31 1.16 1.52Inf. 0.22 0.49 22.7 0.30 0.71 1.16 Contained metal: 854,400 oz of Au, 26.6m oz of Ag, 819m lbs of Zn, 624m lbs of Pb and 167m lbs of Cu In-ground metal value at current prices: Approximately US$4.3 billion NI 43-101-compliant resource estimate based on 370 drill holes in an optimized open pit shell (Feb 2011) 7
  8. 8. AGM-­‐V   Accomplishments in 2010Raised C$5m in a private placement attracting the first institutional investors inAldridge (Jan - $1.00 unit with full warrant for two years at $1.50)Restructured the board and management – 5 Directors out, 5 Directors in –all new directors based in Toronto and have significant knowledge and experiencein Canadian capital marketsRevised our earn-in agreement with Alacer on YenipazarGained analyst coverage from Mackie Research and Clarus Securities, bothwith target prices nearly 2x our current share priceCompleted infill drilling and collected metallurgical samplesCompleted 43-101 complitant PEA in December (commenced in mid July)Relocated our corporate offices to Toronto from VancouverHired IR groups Ascend Communication and Profinnotiv for NA and Europerespectively 8
  9. 9. AGM-­‐V   Project DetailsOpen pit project — volcanogenic massive sulphide (VMS) Zn-Pb-Cu-Au-Ag deposit. Robust economics as demonstrated by our PEASolid Resource Base — +24 Mt within an optimized open pit shell. Thisputs Yenipazar in the 90th percentile of all known VMS deposits as far as sizeGreat Infrastructure — paved road next to the deposit, as well asaccess to water. Power and rail within approximately 20 kmUnique characteristic — Large ore mineral grains due tometamorphism – potentially more cost-efficient separation from host rock thanusual VMS-depositsDeposit dimensions — roughly flat lying body should allow for flexiblemine sequencing to optimize early payback - 1700 m long, up to 300 m wide,30-190 m deep, on average about 25-30 m thick. Still open, especially to thenorth of the deposit 9
  10. 10. AGM-­‐V   Yenipazar Key ParametresLarge land package — 100 km2 property thathas seen very limited exploration, level and low-relief, open terrain used predominantly for Typical VMS Mining Campsfarming (Source: Geological Survey of Canada)Local support — Near-by village with pro-mining work force and strong communitysupport.Agreement with Alacer — to earn 100 %interest. Alacer Minerals retains 6 % netproceeds interest (revenue minus operationalcost) until a total revenue of US$165m, and 10%beyond that amountCommitment — Aldridge must deliver afeasibility to Alacer. There is no deadline, aslong as Aldridge works diligently towardscompleting feasibility study. 10
  11. 11. AGM-­‐V   Scoping Study HighlightsBase Case NPV US$209m & IRR of 23.2 at 7% discount rate•  At 10% discount rate, NPV US$151m or $4.07per basic share, $2.92 ashare fully diluted.•  Base case uses 3-year trailing average metal prices and 4.5:1 strip includingpre-strip and capex of US$198m for a 12 year mine life assuming 5,700 tpd mill(2m tpa).•  Average payable production of 23,700 oz Au, 1.1m oz Ag, 10m lbs Cu, 37mlbs Pb, 37m lbs Zn from diluted average grades of 1.02 g/t Au, 31.6 g/t Ag,0.29% Cu, 1.1% Pb, 1.4% Zn•  Zn conc grades 55%, Pb conc grades 55% & 1025 g/t Ag, Cu conc grades23% with 20 g/t gold & 337 g/t Ag• Project payback in 3.9 years. LOM average NSR US$57.27/t, LOM averagetotal operating cost $29.65/t.•  At current metal prices NPV of US$703m at 7% discount rate (NPV of US$579m at 10% discount rate) and IRR of 54% 11
  12. 12. AGM-­‐V   Scoping Study LowlightsBase case used results of ONE locked cycle flotation test•  Recoveries: Zn 59%, Pb 78%, Cu 77% - well below average for Zn – need tobe improved – Proper floatation study to be completed soon (60 – 90 days)•  Recoveries: Au 37%, Ag 57% - both should be improved. Have three separatesolutions to improve these•  A doubling of gold recoveries would double the base case NPV (i.e. US$302m at 10% or $8.14 / basic share)•  A 10% increase in recoveries of each of the 5 metals would result in a52% increase in our base case NPV•  Assumed smelter payability of Au and Ag in the Cu conc were only 90% and80%; should get 95% for both•  Assumed payability of Ag in the Pb conc was only 85%; should get 90% - 95% 12
  13. 13. AGM-­‐V   Targeted Metallurgical Recoveries & Production PEA  Recoveries  and  Production Revenue by Metal Au Ag Cu Pb ZnPricing  Assumptions  (3  Yr  Trailing  as  at  12/10/12) $1,007 $16.19 $2.95 $0.90 $0.86 Estimated  Recoveries  (PEA) 36.8% 56.9% 76.6% 77.8% 58.8% Avg  Payable  Prod 23,700  oz 1,100,000  oz 10  m  l bs 37  m  l bs 37  m  l bs 10%  D i s count  R t. 7%  D i s count  R t. IRR NPV    (US$m) $151 $209 23.2%  Share  Price  (Basic) $4.07 $5.63  Share  Price  (FD) $2.92 $4.04 Targeted  Potential  Recoveries Au Ag Cu Pb ZnPricing  Assumptions  (3  Yr  Trailing  as  at  12/10/12) $1,007 $16.19 $2.95 $0.90 $0.86 Estimated  Recoveries  (Targeted) 70.0% 66.9% 76.6% 77.8% 65.5% Avg  Payable  Prod 49,400  oz 1,670,000  oz 10  m  l bs 37  m  l bs 40  m  l bs 10%  D i s count  R t. 7%  D i s count  R t. IRR NPV    (US$m) $381 $475 39.8%  Share  Price  (Basic) $10.27 $12.80  Share  Price  (FD) $7.37 $9.19 Potential  Recoveries  at  Spot  Prices Au Ag Cu Pb Zn Pricing  Assumptions  (Spot  as  at  08/22/11) $1,890 $43.96 $3.96 $1.03 $0.97 Estimated  Recoveries  (Targeted) 70.0% 66.9% 76.6% 77.8% 65.5% Avg  Payable  Prod 49,400  oz 1,670,000  oz 10  m  l bs 37  m  l bs 40  m  l bs 10%  D i s count  R t. 7%  D i s count  R t. IRR NPV    (US$m) $856 $1,024 71.2%  Share  Price  (Basic) $23.07 $27.60 13  Share  Price  (FD) $16.56 $19.81
  14. 14. Price  /  Net  Asset  Value   0.0X 0.2X 0.4X 0.6X 0.8X 1.0X 1.2X Royal  Nickel Duluth Aldridge 0.30x Curis Hana Noront Candente PolyMet Chieftain Relative Valuation Baja Amerigo Iberian Augusta Average 0.62x Mercator Capstone Quadra  FNX Taseko PRICE / NET ASSET VALUE General  Moly Far  West HudBay Nevada  Copper AGM consensus NAV $5.05, P/NAV = 0.24 Inmet Thompson  Creek Comparable Base Metals Companies Mirabela Anvil Lundin KatangaSource: Net asset values based on research analyst consensus estimates; closing prices per Bloomberg as at May 12, 2011, WWCM presentation 2011 Teck Copper  Mountain 14 First  Quantum AGM-­‐V  
  15. 15. AGM-­‐V  Aldridge – Smallest Market Cap toContained Metal Value* Cu $3.96, Pb $1.03, Zn $0.97, Ag $43.96, Au $1890, C$/US$ 1.00 as of August 22nd 2011 15
  16. 16. AGM-­‐V  Yenipazar Property & Drill Hole Sites 16
  17. 17. AGM-­‐V   High-grade Intersections Hole-No Interval (m) Thick-ness Au g/t Ag g/t Cu % Pb % Zn %YP-149 92 126 34 m 5.78 93.4 1.11 2.72 3.90YP-151 58 70 12 m 3.62 52.0 1.03 0.52 2.76YP-151 74 100 26 m 6.35 52.5 1.62 1.18 2.79YP-156 42 90 48 m 3.93 16.7 1.09 0.30 0.30YP-156* 110 150 22 m* 0.46 26.9 0.15 0.81 1.39YP-264 52 100 48 m 4.72 66.2 0.96 4.22 7.65YP-282 82 114 32 m 2.93 82.1 0.97 3.10 4.84 *Cumulative thickness of 4 levels in 110-150 m interval 17
  18. 18. AGM-­‐V  Recent Yenipazar Drilling News Pairs of RC and duplicated diamond holes, 5 m apart * YPD-1 includes 112-114 m (61 g/t Au), 122-124 m (20.15 g/t Au), 124-126 m (12.5 g /t Au). Capped at 10 g/t Au, the average grade for the diamond drilled interval of 62-130 meters is 2.05 g/t Au 18
  19. 19. AGM-­‐V   Yenipazar Mineralization Large mineral grainsat Yenipazar allow for gravitational pre-enrichment 19
  20. 20. AGM-­‐V  Favourable Terrain Shallow topography is ideal for open pit construction 20
  21. 21. AGM-­‐V   Future Milestones for AldridgeCommence feasibility study at Yenipazar – Announced June 23, requires 12 to18 monthsComplete the floatation study to improve recoveries and determine whichsmelters or off-takers to target with our concentrates – Report in SeptemberComplete drilling and conduct extensive geophysics at Yenipazar to upgraderesources and to discover new deposits – Complete program mid SeptemberDrill our PNG exploration discovery – Results expected mid NovemberComplete an AIF – Targeting October 21
  22. 22. AGM-­‐V   Aldridge PNG – The Kili Teke DiscoveryAcquired a 338 sq. km license awarded in Feb 2009. Received 3 requests frommajors to JV the property before any results publishedCollected 80 rock samples and 350 soil samplesDiscovered a very large Cu-Au porphyry & skarn system named Kili Teke•  Two rock samples grading between 23% - 35% Cu with an average of 60 g/t Au and 238 g/t Ag;•  Thirteen samples grading from 1.0% - 12.9% Cu with an average of 0.44 g/t Au and 3.8 g/t Ag;•  28 samples grading from 0.3% - 1.0% Cu with an average of 0.39 g/t Au and 3.8 g/t Ag. Also had one sample grade 9.1% zinc 22
  23. 23. AGM-­‐V   Aldridge PNG License Area ALDRIDGE MINERALS INC Exploration License_2009-2-18Base image source: PNG Mineral Resources Authority, Info-DVD distributed on PDAC 2009-3, Toronto 23
  24. 24. AGM-­‐V  Au in Soil Samples at Kili Teke 24
  25. 25. AGM-­‐V  Cu in Soil Samples at Kili Teke 25
  26. 26. AGM-­‐V  Cu in Soil Samples at Kili Teke with OkTedi Pit Overlain for Scale 26
  27. 27. AGM-­‐V   Timeline – Advancing Ahead Fiscal 2011 Fiscal 2012 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.Feasibility StudyFlotation StudyYenipazar Exploration (Infill and Bulk Sample)Pilot Plant Metallurgical StudiesPNG GeophysicsPNG Drilling 27
  29. 29. AGM-­‐V   Directors & ManagementJacob Willoughby, President & DirectorJacob is a geologist with a Masters in Business Administration from the University of Windsor and became president of Aldridge in April 2010. He joined the board in February 2010. He was previously a partner and mining analyst at Paradigm Capital in Toronto, a highly ranked investment firm with a specialization in mining finance, where he worked for five years until choosing to leave in March 2009. He is also a director of Foxpoint Capital Corp.Dr. Martin Oczlon, CEO & DirectorDr Oczlon spent seven years during the 1990 s with BHP as senior exploration geologist in SW Asia and SE Europe. He drilled the discovery holes for the Reqo Diq Cu-Au porphyries in Pakistan, now with 21 Mt Cu + 37 Moz Au. From 1999-2002, he developed a private exploration company with a large project in Romania and sold it at a 200% profit. Aldridge Director since 2003, responsible for project acquisition, exploration and development 29
  30. 30. AGM-­‐V   Directors & ManagementJean-Pierre Colin, ChairmanMr. Colin began his career as an investment banker in 1980. Formally the Director & Head of Corporate Finance at Octagon Capital Corp, he is currently providing corporate strategy consulting services to CEOs of public companies. Previous to his position at Octagon Capital, Mr. Colin was an investment banker with Desjardins Securities Inc., Executive VP of Deacon Capital, and Senior VP of Richardson Greenshields. He is also a director of Premier Gold. He is a Member of the Bar of the Province of Quebec and holds a Master of Business Administration from the University of Western OntarioDaniella Dimitrov, DirectorMs. Dimitrov has over 16 years of broad commercial and operational experience in senior executive roles with major companies. She has held principal roles in mergers, acquisitions, financings, corporate finance and joint ventures. Ms. Dimitrov s former positions include Senior VP, Strategic Initiatives of Raymond James Ltd., COO of Dundee Securities and Dundee Private Investors, General Counsel for the Dundee group of companies and counsel at a national law firm. She is also a director and vice chair of Baffinland Iron Mines. 30
  31. 31. AGM-­‐V   Directors & ManagementJohn F. Cook, DirectorMr. Cook is a mining engineer with 45+ years of experience including development of open-pit & underground mines, exploration, operations, management, & feasibility studies. He was most recently President & CEO of San Anton Resource Corp. & is currently a director of Strategic Resources Inc., MBMI Resources Inc., Southern Andes Energy Inc. & Cerro Resources Inc.. He was Chairman of Wolfden Resources Inc. until its purchase by Zinifex Ltd in June 2007, and was Chairman of Premier Gold Mines Limited until 2010. Mr. Cook is a graduate of Sheffield University in mining engineering.Ed Guimaraes, DirectorEd is a CA who held progressive management positions with Aur Resources between 1995 and 2007, ultimately serving as Executive Vice-President, Finance and Chief Financial Officer of Aur until December 2007. Aur was acquired by Teck Resources Limited in a takeover valued at $4.1 billion in August 2007. Mr. Guimaraes has worked as a consultant in the resources industry since that time and is currently a director of Nuinsco Resources Limited. Mr. Guimaraes holds a Bachelor of Arts in Administrative and Commercial Studies from the University of Western Ontario. 31
  32. 32. AGM-­‐V   Directors & ManagementBarry Hildred, DirectorBarry founded The Equicom Group in 1995 and remained its President until October of 2009. In 2007, Equicom was acquired by the TSX Group. Mr. Hildred also serves on the Board of the Childrens Aid Foundation and is a past member of the Ontario Securities Commissions Continuous Disclosure Advisory Committee.Jim O’Neill, CFOMr. ONeill, a Chartered Accountant with over 25 years of industry experience, brings a depth of knowledge from various international mining, project management and distribution companies. 32