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Corporate Presentation April 2013

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Corporate Presentation April 2013

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Corporate Presentation April 2013

  1. 1. APRIL 2013TSX: QMX
  2. 2. DisclaimersFORWARD-LOOKING INFORMATION:This presentation contains certain “forward-looking information” under applicable securities laws concerning the business, operations and financial performance and condition of QMX Gold Corporation.Forward-looking information includes, but is not limited to, statements with respect to estimated production and mine life of the various mineral projects of QMX Gold Corporation; the benefits and thedevelopment potential of the properties of QMX Gold Corporation; the future price of gold; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing andamount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Forward-looking information may be characterized by words such as“plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking information is basedon the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors thatcould cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based on the successfulcompletion of new development projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; the accuracy of mineral reserve and resourceestimates, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements; and general economic conditions. Many of theseassumptions are based on factors and events that are not within the control of QMX Gold and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materiallyfrom results anticipated by such forward-looking information includes changes in market conditions, variations in ore grade or recovery rates, fluctuating metal prices and currency exchange rates, changesin project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operateas anticipated, the business of the companies not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed orreferred to in the annual Management’s Discussion and Analysis and Annual Information Form for QMX Gold Corporation filed with the securities regulatory authorities in Canada and available at under thecorporations profile on SEDAR at www.sedar.com. Although QMX Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those describedin forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking informationwill prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. QMX Gold undertakes no obligation to update forward-looking information ifcircumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking information to the extent they involve estimates of the mineralization that will beencountered if the property is developed. Comparative market information is as of a date prior to the date of this presentation.IMPORTANT NOTICE:This presentation does not constitute an offer to buy or an invitation to sell, any of the securities of QMX Gold Corporation. Such an offer may only be made pursuant to a registration statement andprospectus filed with the U.S. Securities and Exchange Commission and an offer to purchase and circular filed with Canadian securities regulatory authorities.CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES:This presentation uses the terms “Measured, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities andExchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot beassumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economicstudies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.NATIONAL INSTRUMENT 43-101:David Rigg, the Chairman of the Company and a Qualified Person under NI 43-101, has supervised the preparation of and approved the scientific and technical information in this presentation. Thispresentation contains information relating to a feasibility study that includes Inferred mineral resources which are considered too speculative geologically to have economic considerations applied to themthat would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized. APRIL 2013 TSX: QMX 2
  3. 3. MANITOBA Snow Lake Mine Gold Production and Exploration property located in Manitoba’s premier mining town, Snow Lake–home to Hudbay’s Lalor Mine. QUEBEC Lac Herbin Mine Gold Production and Exploration property Toronto in the mineral-rich Val d’Or regionAPRIL 2013 TSX: QMX 3
  4. 4. Snow Lake Mine – Growth Recently operated by Kinross/High River Gold from 1995-2005, producing 822,550 ounces gold Total historic production of 1.44 M ounces gold from Main Mine, No. 3 Zone, and Birch deposits — Mined: 12.1 M tons @ 4.67 g/t Au All surface installations in place — Mine rebuilt in 1995 under TVX-High River JV — Crushing, milling and mine infrastructure in excellent condition Permitting and environmental licenses maintained Existing access to ore zone in Main Mine plus ramp access to ore zone in #3 Zone APRIL 2013 TSX: QMX 4
  5. 5. Snow Lake Mine – Feasibility Feasibility Study of Main Mine & #3 Zone – October 2010 Pre-Production Capital Expenditures $40.8 million Sustaining Capital Cost $36.1 million Internal Rate of Return (IRR) 79% Payback Period 1.7 years Recoveries 93.3 % Average Annual Production 83,000 oz.Au Mine Life 5 years Cash Cost (LOM) US$ 640/oz.Au Cash Cost (LOM) CDN$ 81.41/ tonne Accumulated Cash Flow (Pre Tax) $140.7 million ¹ Reserves / Resources: Proven and Probable Reserve (4.04 g/t) 451,900 oz.Au Measured and Indicated Resources (4.14 g/t) ² 728,000 oz.Au Inferred Resources (4.43 g/t) ² 336,700 oz.Au ¹ Bloomberg average consensus modelled gold prices used based on 2011 – US$1,277, 2012 – US$1,303, 2013 – US$1,276, 2014 onwards – US$1,051. Average realized sale price for the project US$1,190 Canadian/US foreign exchange at 2011 – 1.04, 2012 at 1.04, 2013 at 1.04 and 1.06 onwards. ² Cut off grade of 1.95 g/tAPRIL 2013 TSX: QMX 5
  6. 6. Snow Lake Mine – Feasibility Recent internal review identified potential alternatives to the original estimates set forth in the Snow Lake Mine Feasibility Study Key potential changes include:  Enlarging the man-camp from a 50-person camp to a 100-person camp to reflect the potential need to recruit additional workers from outside the local area  Operating leases for equipment throughout life of mine vs. purchase after reaching commercial production Overall impact expected to increase cash costs to US$825/oz (additional US$185/oz of cash costs or US$75mm over life of mine)APRIL 2013 TSX: QMX 6
  7. 7. Snow Lake Mine - InfrastructureAPRIL 2013 TSX: QMX 7
  8. 8. Snow Lake Mine – ScheduleMain Mine Boundary Zone Kim Zone No.3 Zone 1 1 2 2 3 1780L Snow Lake Production Begins 4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 243 Zone Dewatering + Reconditioning3 Zone Pre-Production from ramp 1 Commercial Production3 Zone Production from ramp 2 2,000 TPD in Q7Shaft & Mine ReconditioningMain Mine Pre-ProductionMain Mine Production 1 2 3 4 APRIL 2013 TSX: QMX 8
  9. 9. Snow Lake Mine - ExplorationBirch Zone No. 3 Zone Location and Snow Lake Mine Geology Mining Camp with 16 known#3 Zone mineral depositsKim ZoneBoundary Zone East Zone Caper Zone Snow Lake Snow Lake Mine Lalor Bounter Zone APRIL 2013 TSX: QMX 9
  10. 10. Snow Lake Mine - ExplorationUpper Main Mine Area 2011 exploration identified additional extensions to mining areas on the upper mine levels Exploration effort increased our confidence in the mineralized structures within the zone and around the mine area Additional areas of potential will be delineated when they can be accessed from the underground APRIL 2013 TSX: QMX 10
  11. 11. Lac Herbin – ProductionLAC HERBIN—Turnaround and Beyond Lac Herbin Average Cash Cost $3,000.00 Turnaround Commences 2012 $2,500.00 $2,000.00  Upper level of production goal achieved $1,500.00 $1,500 with 20,100 ounces produced $1,300 $1,000.00 2012 Cash Cost  Success with Turnaround Plan: increased $500.00 Guidance average recoveries at Aurbel Mill to 90% $-  Continued mine exploration to bolster Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 current outlook: identified potential within 2011 2012 the Bonanza, FL and S1 zones Lac Herbin Production 2013 10,000.00  Continue to review of life of mine plan (and 9,000.00 8,000.00 2012 Quarterly Ounces Recovered reserve) 7,000.00 Production Goal 6,000.00  Production guidance 20,500 to 23,500 5,000.00 4,000.00  Cash cost guidance $1,200 to $1,400 3,000.00 2,000.00  Continue to replace and grow resources 1,000.00 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 APRIL 2013 TSX: QMX 11
  12. 12. Mineral Reserves and ResourcesMineral Reserves LAC HERBIN(1) SNOW LAKE(2) (Cut-off 5.0 g/t ) (Cut-off 1.95 g/t ) Tonnes g /t Oz Au Tonnes g /t Oz Au Proven 43,000 7.45 (3) 10,300 7,000 3.81 900 Probable 96,000 6.45 19,900 3,470,000 4.04 451,000 TOTAL 138,000 6.81 30,200 3,477,000 3.9 451,900 *Mineral reserves are also included in Mineral resource values (1) 43-101 Technical Report on Mineral Reserve Estimate at the Lac Herbin Mine, April 18, 2011 prepared by Austin Hitchins, B.Sc., P. Geo., Audrey Lapointe, B.Sc., P. Geo. and Patrick Sévigny, Ing., (2) Snow Lake Mine Re-activation Project Technical Report NI 43-101 , December 10. 2010 prepared by Mr. Andre Roy Eng. APRIL 2013 TSX: QMX 12
  13. 13. Mineral Reserves and ResourcesMineral Resources LAC HERBIN(1) SNOW LAKE(2) Tonnes g /t Oz Au Tonnes g/t Oz Au MEASURED 67,000 9.2 19,900 7,000 4.76 1,000 INDICATED 117,600 7.6 28,800 5,464,000 4.14 727,000 INFERRED 283,500 7.4 67,300 2,367,000 4.43 336,700 *Mineral Reserves are also included in Resource values (1) 43-101 Technical Report on Mineral Reserve Estimate at the Lac Herbin Mine, April 18, 2011 prepared by Austin Hitchins, B.Sc., P. Geo., Audrey Lapointe, B.Sc., P. Geo. and Patrick Sévigny, Ing., (2) Snow Lake Mine Re-activation Project Technical Report NI 43-101 , December 10. 2010 prepared by Mr. Andre Roy Eng. APRIL 2013 TSX: QMX 13
  14. 14. Production Profile 100,000 80-90,000 (est.) Snow Lake ProductionProduction OUTLOOK (oz) 2009 2010 20,000 33,000 2012 23,000 2011 20,000 20,000+ Lac Herbin 10,000 (est.) Production APRIL 2013 TSX: QMX 14
  15. 15. Val D’Or Property Aurbel Gold Mill Val-d’Or, Quebec Lac Herbin Mine  212 sq.km. 100%-IAMGOLD owned by QMX Gold Agnico Eagle Val-d’Or-Malartic Mining Camp (Historic Production) 0.7 Mt Cu, 0.7 Mt Zn, 27.2Moz Au, 50.0 Moz Ag  100%-owned Lac Herbin Mine – in QMX Gold QMX VMS production Osisko Agnico EagleAPRIL 2013 TSX: QMX 15
  16. 16. Upcoming Financing Plans Snow Lake Project Financing – Announced on May 29, 2012  US $45 million debt facility  Term of 4.5 years  Interest rate of LIBOR + 5.5 % before commercial production and LIBOR + 4.5% after commercial production  Hedging requirement from 30 to 50% of the 4.5 year production profile depending on spot price at time of draw down  Technical due diligence complete  Other conditions will be negotiated in the course of settling a definitive agreementAPRIL 2013 TSX: QMX 16
  17. 17. Current Financing Plans $17,500,000 Bridge Financing – Closed November 28, 2012  Fully secured bridge financing provided by Third Eye Capital  Loan Terms:  1 year with interest payments starting 7 months from closing at $250,000 per month  In consideration of the Bridge Financing, Third Eye will receive 2.9 million warrants at $0.2525, the 10 day VWAP on closing  First tranche was used to pay out previous bridge of $10.3 million  Second tranche will be used for general company administration and expensesAPRIL 2013 TSX: QMX 17
  18. 18. Restructuring Exploration Assets Rouyn-Noranda Exploration Properties Aquired By Falco Pacific (Closed September 24, 2012) Aggregate gross proceeds of $5 million in cash and ownership in Falco Pacific (FPC) Price Falco Pacific of 16% post-financing Performance Since Inception (7,000,000 shares) $0.90 $0.80 $0.70 Falco Pacific dedicated to $0.60 $0.50 exploration with a strong $0.40 $0.30 Closed at $0.80 Jan 31st exploration team provided by QMX $0.20 $0.10 Allows for QMX focus on $0.00 production assets while participating in exploration upside APRIL 2013 TSX: QMX 18
  19. 19. 2012 Objectives Lac Herbin  Production 18,500 to 20,500  Resource update as part of 2012 year end exercises Snow Lake Project to Production decisions  Resource update as part of 2012 year end exercises  Financing decisions Exploration (Ongoing)  Regional compilation for next round of targetsAPRIL 2013 TSX: QMX 19
  20. 20. Capital Structure Outstanding: Issued 30.9 Million Warrants 03.7 Million Average Price $4.13 Options 02.6 Million Average Price $5.88 Fully Diluted 37.7 Million Share Price (as of March 2013) C$ 0.165 Market Cap: Basic C$ 5.1 Million Avg. trading volume (30 day average) 33,000 shares/day Debt Outstanding Convertible Debt C$4.2 Million Conversion price $8.00 Matures April 28, 2014 Bridge Loan C$17.5 Million Matures Nov. 28, 2014APRIL 2013 TSX: QMX 20
  21. 21. Comparable Company Analysis Junior Gold Producers Market Cap Cash + ST Inv. TEV Mineral Mineral EV / 2012 2013Company Share Price (1) (2) (3) EV / Reserve Reserve Resource (4) Resource Production (5) Production (5)As at December 10, 2012 Local US$ millions US$ millions US$ millions mm oz US$/oz mm oz US$/oz 000’s oz Au 000’s oz Au Argonaut C$9.67 $1 479 $216 $1 263 1.1 $1 153 12.8 $99 100.6 138.9 Kirkland Lake C$7.90 $567 $129 $563 1.5 $382 4.3 $132 100.3 130.8 Timmins C$3.11 $482 $50 $452 1.3 $340 2.9 $154 98.2 126.0 San Gold C$0.79 $269 $20 $252 0.2 $1 206 4.1 $62 92.3 102.8 Brigus C$0.94 $224 $49 $273 1.9 $147 3.3 $82 76.7 96.4 St Andrew C$0.43 $160 $22 $157 0.7 $221 4.4 $35 96.0 104.0 Richmont US$3.10 $123 $67 $57 0.4 $151 3.8 $15 66.6 68.7 Claude C$0.55 $98 $0 $116 0.4 $326 4.1 $28 48.5 52.0 Wesdome C$0.89 $92 $4 $96 0.4 $273 1.7 $55 58.2 68.9 Metanor C$0.21 $48 $4 $59 0.2 $295 1.6 $37 3.0 29.0 Golden Band C$0.12 $33 $8 $38 0.0 $1 988 0.8 $48 41.9 42.5 Average $325 $52 $302 0.7 $589 4.0 $68 71.1 87.3 Adjusted Average(6) $229 $39 $225 0.7 $483 3.4 $64 75.4 88.0 QMX Gold C$0.24 $7 $6 $23 0.5 $45 1.4 $17 19.0 19.0 (1) Market Cap calculated on a fully-diluted basis including shares from the exercise of in-the-money options and warrants. (2) Cash and ST Investments includes cash from the exercise of in-the-money options and warrants. (3) Total Enterprise Value (TEV) equals market cap less cash plus debt plus minority interest and preferred equity. (4) Resource includes proven and probable reserves, measured and indicated resources and inferred resources. (5) Production estimates based on consensus analyst estimates. (6) Adjusted average excludes high and low figures. Source: Corporate disclosure, Bloomberg, Capital IQ and Street Research. APRIL 2013 TSX: QMX 21
  22. 22. Management Team Directors and Officers David Rigg, Chairman Franҫois Perron, Director Maurice Colson, Director Robert Bryce, Director Chantal Lavoie, Director Senior Management Franҫois Perron, President and CEO Deb Battiston, CFO Gerald Thornton, VP Manitoba Operations Patrick Sévigny, VP Quebec OperationsAPRIL 2013 TSX: QMX 22
  23. 23. Contact Information QMX Gold Corporation TSX: QMX Investor Relations Rob Hopkins (Toronto) Louis Baribeau(Montreal) info@qmxgold.ca +1 416 861 5899 +1 514 667-2304 www.qmxgold.ca Find us onAPRIL 2013 TSX: QMX 23

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