Corporate Presentation November 2012


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Corporate Presentation November 2012

  2. 2. Forward Looking Information TSX:CRK OTCQX: CROCFThis presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but are not limited to, statements with respect to thedevelopment potential and timetable of the projects; the Company’s ability to raise additional funds as necessary or on commercially reasonable terms; the future price of gold; the estimationof mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production,development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates;government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”,“expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words andphrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the opinionsand estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the projects are based on assumptionsunderlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independentof the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors consultants and management involved in building a mine andother factors described in the technical reports and Annual Information Form filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results ofprevious mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scopingstudy. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward-lookinginformation is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to bematerially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: timing and availability of external financing on acceptableterms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual resultsof exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differmaterially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance thatsuch statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place unduereliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reportedseparately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, thesemineral resources may never be upgraded to proven and probable mineral reserves.Certain information contained herein may be considered to be future-oriented financial information, which was designed and approved by management of Crocodile Gold for the purposes ofassessing the value of the acquisition. Readers are cautioned that such information may not be appropriate for their use, and readers should consult their financial advisors as appropriate.Bill Neilsen P.Geo. Vice President of Exploration at Crocodile Gold is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technicalinformation and data included in this presentationNon-GAAP MeasuresCrocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered inisolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.“Cash Cost per Ounce” is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency at the operations. It is determined by dividing theoperating expenses, excluding stock-based compensation allocated to the operating expense and next of silver revenue, by the number of ounces of gold sold. There are variations in themethod of computation of ‘cash cost per ounce” as determined by the Company compared with other mining companies. For more detail on Cash Cost per Ounce determination for Corocidlegold, please visit or and review the latest Annual Financial Statements issued on March 19, 2012.Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required byCanadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to theirexistence, 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 Canadianrules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part ofmeasured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineralresource exists, or is economically or legally mineable.Note for Page 5: For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports titled: REPORT ON THEMINERAL RESOURCES & MINERAL RESERVES OF THE NORTHERN TERRITORY GOLD AND BASE METALS PROPERTIES FOR CROCODILE GOLD CORP. dated April 4th, 2011; NI43-101 TECHNICALREPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR CROCODILE GOLD CORP dated April 29 th, 2012; NI43-101 TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIAPREPARED FOR CROCODILE GOLD CORP dated April 9th, 2012. These documents are available on the company website and at 2
  3. 3. Investment Advantage TSX:CRK OTCQX: CROCF  Australian-based production and exploration  Mineral Resources: M&I of 4.1 million oz, Inferred of 2.8 million oz Assets  Over 4,000 sq. km land package with proven historical production  Significant infrastructure and accessibility  Two operating mines and one new mine nearing commercial production:  One 2.4MM TPA central processing facility in the Northern Territory Complex at Union Reefs Production  Two 1.0MM TPA processing facilities in the State of Victoria  Expanding production profile with decreasing cash costs  New projects are being added to the production profile  Outstanding potential to discover additional resourcesExploration  Extensive exploration project and development pipeline, with further joint venture opportunities 3
  4. 4. Our Assets TSX:CRK OTCQX: CROCF 4
  5. 5. Our Assets TSX:CRK OTCQX: CROCFNorthern Territory Complex Mineral Resources* Tonnes (MM) Au Grade (g/t) Au (Koz) Production Proven & Probable Reserves Cosmo 3.1 4.2 420  Burnside Property Fosterville 2.4 4.7 365  Cosmo - anticipated commercial Stawell 1.0 3.4 107 Pine Creek 3.0 1.7 162 production in Q1 2013 Burnside 1.6 1.5 80  West Howley / Rising Tide - ceased Reserves 11.1 3.2 1,134.0 production in Q2 2012 Measured and Indicated Resources (incl. of Reserves)  Ore processed at centralized Union Reefs Cosmo 5.3 4.6 776 Mill Fosterville 13.9 2.9 1289 Pre - Production Stawell 4.7 2.6 399 Pine Creek 5.5 1.6 289  International Pit (Pine Creek) – Union Reefs 0.2 2.4 18 Preparatory stage Maud Creek 9.3 3.1 935 Burnside 11.3 1.4 493 Advanced Exploration Mt Bundy 20.2 1.0 664  Union Reefs M&I Resources 65.2 1.9 4,087.0  Maud Creek Inferred Resources Cosmo 5.7 3.7 676 Fosterville 5.0 2.9 477Victoria State Assets Stawell 1.0 4.7 145 Pine Creek 2.3 2.4 183 Union Reefs 3.7 1.7 204 Production Maud Creek 1.1 2.4 82  Fosterville Burnside 13.0 1.5 647  Stawell Mt Bundy 10.5 1.0 350 Inferred Resources 42.4 2.0 2,764.0 *Please refer to cautionary language and Note for Page 5 on page 2 of this presentation 5
  6. 6. Northern Territory Complex -Production / Pre-Production TSX:CRK OTCQX: CROCFCosmo (Underground) Asset on Burnside property, historically produced approximately 430 Koz Au since 1873 (with Howley) Development initiated in February 2011  Trial stoping completed in Q1 2012  Production stoping initiated in September, with first transverse stope successfully extracted  Ramping-up and targeting 80,000 oz Au per year Delineation drilling program confirming expectation in terms of grade and tonnageUnion Reefs Mill Union Reefs Mill, Northern Territory Centralized CIL mill with a capacity of 2.4MM TPA Gravity and Carbon-in-Pulp plan designed to recover gold from free-milling ore sourced from Burnside and Pine Creek Plant is capable of recovering coarse gold by gravity concentration and fine gold by cyanide leaching and absorption on activated carbon 6
  7. 7. Northern Territory Complex -Production / Pre-Production TSX:CRK OTCQX: CROCFPine Creek – International Deposit (Open Pit) Located approximately 20 km from Union Reefs mill Prospect Previously produced 745 Kt @ 1.6g/t for 31 Koz Au Crosscourse until mining ceased in 1995 Union Reefs Mill Granted in-principle approval for redevelopment and proposed preparatory work; initiated surface drilling for optimizing and finalizing mining activities International Expected to produce 1.4 Mt @ 1.3g/t for 47 Koz over 3 year LOM (Waste:Ore - 3.5:1)Next Steps International Conceptualized Open Pit Q4 2012: Production decision Q2 2013: Expect mining to startConceptualized pit 7
  8. 8. Northern Territory Complex -Exploration Assets TSX:CRK OTCQX: CROCFUnion Reefs -- Prospect Deposit Union Reefs, Prospect Union North and Crosscourse Located within 1 km from existing infrastructure Lady Alice Historical production of 800 Koz Au from open pits Prospect (Anglo Gold); ore treated at the Union Reefs mill Crosscourse Completed a 11,500 m drilling program; key exploration results include*: Union Reefs Mill  Prospect: 4.2 m@27g/t Au, 2.5 m@240g/t Au Complex  Crosscourse: 181.2 m@1.8 g/t Au, 12.3 m@8.9 g/t AuNext Steps Q3 2012: Update of resource model & desktop study Q4 2012: Board decision on Phase II – Underground exploration decline* Refer to Oct 13, 2011, Jan 20, 2012 and May 9, 2012 press releases for detailed results 8
  9. 9. Northern Territory Complex -Exploration Assets TSX:CRK OTCQX: CROCFMaud Creek Near town of Katherine, 8 km from highway Previously produced 174 Kt @ 3.3 g/t Au for 19 Koz Au Desktop Scoping study - Conceptual design  Open pit to be followed by underground operation  Partially refractory ore; testing indicates 90-95% recovery by flotation with concentrates grading 3-6 oz/t Prospect  applicability of Fosterville BIOX® technology Union Moline Reefs MillNext Steps International Update of mineral resource, metallurgy and scoping study are expected this year Q4 2012: Recommendation on next phase – revised Maud Creek resource estimate and desktop study in progress 9
  10. 10. Victoria State Assets TSX:CRK OTCQX: CROCFFosterville (Underground) Fosterville Production Facility Located approximately 150 km north of Melbourne and 20 km from Bendigo, accessible by all weather roads Producing since 1992 with own processing facility (capacity of 800 Ktpa) with a bacterial oxidation process uses BIOX technology Expected to produce 82-87 Koz Au in 2012 (including production prior to May 4, 2012 acquisition) Current mine life of 3 years based on reserves & resources; production of approximately 85-95 Koz Au annually Recently announced results from high-grade gold intersections from drill holes on strike extension of the Phoenix ore body (Press Release dated Aug. 30, 2012) 10
  11. 11. Victoria State Assets TSX:CRK OTCQX: CROCFStawell (Underground) Located alongside the town of Stawell, in central Victoria, approximately 250 km west of Melbourne Expected to produce 69-74 Koz Au in 2012 (incl. production prior to May 4, 2012 acquisition) Standard CIL gold recovery circuit following crushing and grinding and sulphide flotation; processing capacity is 1.0MM tpa Stawell Production Facility Decision to ramp-down underground mining activities by end of 2013; will continue to provide cash flow due to savings on capital expenditure Opportunity to economically treat historical surface stockpile beyond 2013Next Steps Q4 2012: Decision to carry out additional work on known deposit extension on the mining lease 11
  12. 12. Production2012 – Outlook TSX:CRK OTCQX: CROCFNorthern Territories $2,500.00 2012 Cash Costs Suspension of surface mining occurred in Q2 $2,000.00 2012 Cost Guidance 2012 $2,028.00 $1,100 - $1,300 $1,500.00 Ramp-up of Cosmo Mine Production 40,000 to 45,000 ounces in 2012 $1,000.00 $1,167.00 $1,176.00 $500.00State of Victoria $0.00 Integration of Fosterville and Stawell mines in Q1 Q2 Q3 Victoria. 60,000 200,000 Decision to ramp down U/G operations at 2012 Production Profile 180,000 50,000 Stawell 160,000 Cumulative Ounces 40,000 140,000 Production 151,000 to 161,000 ounces in 120,000 Ounces 2012 30,000 100,000 80,000 20,000 60,000Q3 – YTD Production 10,000 40,000 20,000 93,376 ounces 0 Q1 Q2 Q3 Q4 0 141,625 ounces, including FGM and SGM CRK Total Total CRK Cumulative Total Cumulative production prior to May 5th 12
  13. 13. Exploration TSX:CRK OTCQX: CROCF Strategy  Growth through greenfield and brownfield explorationExploration  Increase reserves from 1.1MM oz to 1.5MM oz Goals  Increase resources from 7.6MM oz to 10.0MM oz  Assessment of information collected in 2011 for identification of next opportunities 2012  Assessment of recently acquired land position in State of Objectives Victoria  Advance Union Reefs & Maud Creek projects 13
  14. 14. Our Growth Strategy TSX:CRK OTCQX: CROCF Short Term Medium Term Long Term Focus on Higher Quality Maximize Value of Gold Explore Ore Assets  Continued investment in Ramp-up of Cosmo mine  Advance projects such as exploration on an annual Union Reefs and Maud basis Integration of Fosterville and Creek Stawell operations  Focus on successful  Assessment of expanded conversion of existing Reap benefits of increased land position in the State of resources into reserves scale and synergies, both in Victoria operations and in cost of  Prioritization of higher capital  Consolidate assets quality deposits and projects Permitting of International  Value creating acquisitions Mine (Pine Creek) 14
  15. 15. Capital Structure TSX:CRK OTCQX: CROCFShare Structure (At October 31, 2012) Third Quarter 2012 ResultsBasic: 406.4 Million At September 30, 2012 (US$): Total Asset Value: 473,498,092Warrants: 56.75 Million Cash Position: $20,383,957Options: 029.8 Million Three months ended September 30, 2012 (US$):Fully Diluted: 493.35 Million Revenue: $78,721,463Market Capitalization: $137.3 Million Operating Earnings: $7,028,40852 Week Trading Range $0.29 – $0.80 Cash from Operations: $32,511,747 Gold Producer P/NAV Multiples 52 Week Share Price Performance $0.70 1.4x $0.60 1.2x $0.50 0.9x $0.40 0.8x 0.8x 0.7x 0.7x $0.30 0.5x $0.20 0.4x $0.10 0.2x $0.00 GSC RSG OGC SBM TGZ EDV BAA JAG CRK ORA Source: Consensus estimates, Bloomberg. EDV pro forma acquisition of Avion. 15
  16. 16. Management TSX:CRK OTCQX: CROCFChantal Lavoie, P. Eng., President & Chief Executive Officer, ChairmanMr. Lavoie is a Professional Mining Engineer with extensive experience in mining operations and projects. Mr. Lavoie has spent the last eight years at DeBeers Canada Inc. ("De Beers") where he was responsible for the Canadian operations of De Beers including Snap Lake and Victor mines, the Gahcho Kueproject and was acting CEO of De Beers. Mr. Lavoie has also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at theformer Louvicourt mine.Rob Dufour, Director of Finance, Interim Chief Financial OfficerMr. Dufour is a Chartered Accountant with over 10 years of finance and accounting experience. He started his career with the Toronto office ofPriceWaterhouseCoopers and later joined Northgate Minerals Corporation as Corporate Controller and subsequently was promoted to Group FinancialController for Northgate Australian Venture Corporation (NAVCO), which was more recently acquired by Crocodile Gold Corporation.Bill Nielsen, P. Geo, Vice President ExplorationMr. Nielsen is an accredited geologist with over 35 years of worldwide mineral exploration and development experience. Most recently, he has beenworking as a senior industry consultant to mining exploration companies working with a variety of commodities in various countries and geologicalenvironments. From 2003 to 2008, Mr. Nielsen was the V.P. Exploration of Nevsun Resources Ltd., where he played a significant role in the discovery ofthe Bisha gold-VMS deposit in Eritrea. He has worked for companies within the Forbes & Manhattan Group since early 2010.Colinda Parent, Vice President Corporate DevelopmentMs.Parent has extensive capital markets experience having spent over 15 years in institutional equity sales and 5 years in investment banking in Toronto.Previously, Ms. Parent was one of the founders of Sandfire Securities, a Toronto-based institutional equity boutique focused on raising funds for andtrading stocks in small and mid-cap Canadian-listed resource companies. She also served on the Board and Executive Committee at Sandfire. Ms. Parentis a CFA charter holder and has an MBA from the Ivey School of Business.Operations Team : Ian Holland, General Manager, Stawell Gold Mine Troy Cole, General Manager, Fosterville Gold Mine Peter Crooks, General Manager, Northern Territory 16
  17. 17. Board Of Directors TSX:CRK OTCQX: CROCF On February 29, 2012 a new Board of Directors was constituted and Chantal Lavoie was appointed as Chairman.George Faught, CA, Lead DirectorMr. Faught is a Chartered Accountant with over 25 years of senior management experience and is currently the Chief Executive Officer of AberdeenInternational Inc. He has served as the Chief Financial Officer of publicly traded companies in the natural resources, financial services andpharmaceutical industries. Mr. Faught has broad financial management, corporate development and operating experience and from 1999 to 2005served as the Chief Financial Officer for North American Palladium Ltd., a mid-tier platinum group metal producer. Prior to that, he served as ChiefFinancial Officer for Hudson Bay Mining & Smelting Co. Ltd., an integrated base metals producer, and William Resources Inc., an international goldproducer. He also serves as a director of several public companies in the resource sector.Robert Getz, MBA, DirectorMr. Getz is a managing director and a co-founder of Cornerstone Equity Investors, LLC. Mr. Getz has strong experience in public and private debt andequity financings and domestic and international mergers and acquisitions. Mr. Getz has served as a director of several public and private metals andmining companies. He completed a B.A., cum laude, International Relations at Boston University in May 1985, and obtained his MBA, Finance inFebruary 1990 from The Stern School of Business at New York University.Kevin Conboy, DirectorMr. Conboy was President and Chief Executive Officer of Acordia, Inc., a subsidiary of Wells Fargo based in Chicago. As well, he served as Chief ExecutiveOfficer for the NIA Group of Paramus, New Jersey. Mr. Conboy possesses a wealth of experience in the financial markets and has considerable exposureto financial instruments and business transactions. He sits on a number of corporate and charitable boards. Mr. Conboy completed a B.A. from ColoradoState University in 1973.Peter Tagliamonte, P. Eng., DirectorMr. Tagliamonte is a professional mining engineer and also holds an MBA from the Richard Ivey School of Business, at the University of Western Ontario.He is currently the President and CEO of Sulliden Gold, the former President and CEO of Central Sun Mining Inc. and former Chief Operating Officer ofDesert Sun Mining Corp. where he was responsible for the development of the Jacobina Mine in Brazil into a 4,200-tonne-per-day mining operation. Mr.Tagliamonte has over 25 years of progressive managerial experience building and operating mines worldwide, notably in Central and South America. In2005, he received the Mining Journals "Mine Manager of the Year" award in recognition for his work in the mining sector. 17
  18. 18. Investor Contact Information TSX:CRK OTCQX: CROCF Crocodile Gold Corporation Chantal Lavoie Investor Relations Chairman, President and CEO Rob Hopkins 416-861-2964 416-861-5899 TSX: CRK OTCQX: CROCF Find us on: FRANKFURT: XGC A Member of the Forbes & Manhattan Group of Companies 18