Aura Minerals Inc. · NASDAQ:AUGO
Aura Minerals — Investor Presentation (March 2013)
42 slides from Aura Minerals's investor presentation, March 2013
Slide 1: Corporate Presentation
Corporate Presentation March 2013
Slide 2: Forward-Looking Statements and Cautionary Notes
Forward-Looking Statements and Cautionary Notes This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and t
Slide 3: Investment Highlights
Investment Highlights Strong Copper and Gold Resource Platform to Support Organic Growth Executing 2 Transformational Projects Serrote Copper Project - Game Changer and Significantly De-Risked Aranzazu capacity expansion from 2,600 tpd to 4,000 tpd and roaster installation – addresses scale,
Slide 4: Portfolio Profile
Portfolio Profile 3 Gold Mines Aranzazu Copper-Gold-Silver Mine, 1 Copper-Gold-Silver Mine 100% - Mexico 1 Copper-Gold Development Project San Andres Gold Mine, 100% Honduras Resource Base: Gold: 2.6 Million oz M&I Copper: 1.8 Billion lbs M&I São Vicente Gold Mine, 100% Brazil São Franci
Slide 5: Key Executive Management
Key Executive Management Senior management team focused on development and execution. Highly experienced individuals with varied mining, technical, operational and finance skills Jim Bannantine, P. Eng. Neil Hepworth Monty Reed President & CEO SVP Brazil General Manager, San Andres Mine Joined ORA i
Slide 6: Turning Around to Positive Cash Flow, Operation Efficiency and Growth
Turning Around to Positive Cash Flow, Operation Efficiency and Growth 30.0 - Key Op. - Serrote Financing & - New CEO - Credit - Serrote In-Fill and Hiring Construction 25.0 Facility & Feasibility Step-Out - Brazilian Hedging Study Drilling at - G&A - Aranzazu Expansion & Mines San Andres 20.0 Reduct
Slide 7: Project Execution Pipeline
Project Execution Pipeline 2013E 2014E 2015E 2016E 2017E 2018E… Aranzazu: 13-15M lbs in 2013 Ramping up to 21-22M lbs Aranzazu Expansion + Roaster Installation* : 30M lbs per year on avg. Serrote** : 65M lbs per year on avg. San Andres: ~60-65 Koz per year on avg. Brazilian Mines: total of ~140- 160
Slide 8: Business Plan - Summary
Business Plan - Summary Aranzazu production to almost double by end of 2014 (PEA, July 2012) Expected to be funded with internal cash flow EBITDA will replace Brazilian Mines Development of Serrote da Laje Project (Feasibility, Nov 2012) Expected to significantly expand the size of the Com
Slide 9: Ongoing Initiatives at Current Operations
Ongoing Initiatives at Current Operations Aranzazu • Roaster installation will decrease arsenic levels and significantly reduce - Smelter penalty and charges over high smelter penalties and charges arsenic levels • Roaster commissioning to precede expansion - Mine & Plant Capacity Expansion • Basic
Slide 10: Assets Summary
Assets Summary Asset Avg. Production Avg. Cash Costs Life of Comments per year (US$) Mine (years) Aranzazu Copper-Gold Mine* 30Mlbs $1.15-1.25 / lb 16 Starting end of 2014 – after expansion For 100% ownership Serrote Copper-Gold Project** 65Mlbs $1.40 /lb 15 full capacity starting H2’15 San Andres G
Slide 11: Copper Assets - Value Through Organic Growth
Copper Assets - Value Through Organic Growth Serrote Execution + Aranzazu Expansion Places Aura in the 80-120Mlbs Copper Producer League * Serrote production estimate: As per Serrote technical report dated September 4, 2012, and entitled "NI 43-101 Technical Report on the Feasibility Study for the S
Slide 12: 1-Asset Pure Copper Player
1-Asset Pure Copper Player Serrote da Laje Hot Chili Ltd. Copper Mountain (TSX:ORA) (ASX:HCH) Mining Corp. (TSX:CUM) Ownership 100% 100% (earn in) 75% - 25% Mitsubishi Location Alagoas-Brazil Chile British Columbia-Canada Status Feasibility Study PEA (BFS Due in mid-2014) Producer since 2012 Licensi
Slide 13: Key Milestones
Key Milestones Year Serrote Aranzazu San Andres Brazilian Mines 2013 Project Financing Engineering & Reserve & Resource Achieve strong positive Complete resettlement Procurement update in Q2’13 cash flow from both Power and water supply Basic engineering Enhanced new mine operations
Slide 14: Gold Production Guidance
Gold Production 180,000 Gold Production Guidance 160,000 San Andres Gold Mine 140,000 Targeting 60,000 - 65,000 oz 120,000 São Francisco Gold Mine Au Ounces 100,000 Targeting 78,000 - 88,000 oz São Vicente Gold Mine 80,000 Targeting 28,000 - 32,000 oz 60,000 Total 2013 40,000 166,000 - 185,0
Slide 15: San Andres Gold Mine: Steady Source of Cash Flow over a Long Mine Life
San Andres Gold Mine Steady Source of Cash Flow over a Long Mine Life Reserve & Resource Upgrade in Sight TSX: ORA 15
Slide 16: San Andres Gold Mine
San Andres Gold Mine Location Honduras Acquired in August 2009 Ownership 100% Generating significant free cash flow going Project Type Open Pit, Heap Leach forward P&P Reserves 784 Koz** Commencement of Q3 2012 drill program to M&I Resources 1,631 Koz (includes reserves)** prove out additional
Slide 17: Key Operating Initiatives
Key Operating Initiatives Significant operational flexibility with two primary crushers Planned addition of second secondary crusher in 2013 Installation and operation of new stacker – reduces pad pressure; improves percolation New water treatment plant now operational New block model and
Slide 18: Exploration Potential & Drilling Program
Exploration Potential & Drilling Program Ongoing 15,000 In-Fill and Step-Out drilling – 11,000m to date Additional 15,000m for 2013 Second phase of drilling program will target resource areas within the concession but outside current reserve pits Reserve & Resource update expected in Q2’2013
Slide 19: Aranzazu Copper-Gold Mine Expansion to 4,000 tpd Capacity and Roaster Installation
Aranzazu Copper-Gold Mine Expansion to 4,000 tpd Capacity and Roaster Installation to Unlock Value of Aranzazu Copper-Gold District TSX: ORA 19
Slide 20: Aranzazu Copper-Gold
Aranzazu Copper-Gold Acquired in 2008 - Commercial production Location Zacatecas, Mexico declared in Feb 2011 Ownership 100% Project Type Open Pit-Under Ground, Achieved full production from mine and mill flotation throughput – 2,600 tpd M&I Resources 588 Mlbs Cu; 390Koz Au** Site services, bu
Slide 21: Mitigation of Arsenic Levels, Charges and Penalties
Mitigation of Arsenic Levels, Charges and Penalties Optimization of the mix of ore feed to the plant Metallurgical test work has been performed on a greater number of samples, more representative of the deposit Placement of all concentrate production from Aranzazu to mid-2014 Maximize NSR ba
Slide 22: Organic Expansion Opportunity
Organic Expansion Opportunity Capacity increase from 2,600 tpd to 4,000 tpd by end of 2014 Avg. 30Mlbs per year Partial roasting of concentrate selected as the long- term solution to decrease Arsenic levels Roaster commissioning to coincide with expansion LOM of 16 years at 4,000 tpd - cas
Slide 23: District Potential for Expansion
District Potential for Expansion 25 kilometres east of Peñasquito and 35 kilometres Northeast of Camino Rojo Located in same intrusive package as the Tayahua mine (Minera Frisco) – currently undergoing major expansion Excellent Infrastructure: roads, airports, communications and power Nearby
Slide 24: São Francisco & São Vicente Mines
São Francisco & São Vicente Mines Source of Cash Flow to 2014 Processing Plants as Corporate Development Currency TSX: ORA 24
Slide 25: São Francisco Gold Mine
São Francisco Gold Mine Open Pit - Heap Leach - Gravity Circuit Mining stops at end of 2013, but heaps continue producing into 2015 (end of mine life) Key Initiatives Optimized mine plan to end of mine life Overall cost reduction program implemented Processing of tailings 2013 forecast
Slide 26: São Vicente Gold Mine
São Vicente Gold Mine Open-pit, heap leach, gravity circuit São Vicente production into 2014 (to end of mine life) Mining stops in mid-2013, processing in October, but heaps continues to produce gold in 2014 2013 forecast production of 28,000 – 32,000 ounces Potential exchange of plant for
Slide 27: Serrote da Laje Copper-Gold Project – Substantially De-Risked
Serrote da Laje Copper-Gold Project – Substantially De-Risked Feasibility Study Completed – NI 43-101 report filed Permitted for Construction Access to Roads, Railway, Ports, Towns, Power and Water Community and Government Support Resettlement Plan initiated Off-Take Alternatives Advan
Slide 28: Serrote da Laje Copper Project
Serrote da Laje Copper Project Operating Metrics Start-Up Mid-2015 Licensing Installation License Granted Plant Capacity 7Mtpy Copper Concentrator (flotation) LOM Production 831Mlbs Cu; 171Koz Au Total / Avg. ~66Mlbs per year LOM 13 years LOM Avg. Grade 0.52% Cu and 0.10 g/t Au (0.60% to 0.74% durin
Slide 29: Project Area
Project Area HT Power Line Caboclo Target Maceio port 145 km drive Rail line to East Serrote da Laje Deposit TSX: ORA 29
Slide 30: Infrastructure & Off-Take Alternatives
Infrastructure & Off-Take Alternatives Power Supply Construction of regional 230kV substation in progress 20km line between project and Arapiraca substation Water supply PPP contract awarded Tie-in to upgraded regional water supply Concentrate delivery Water Smelter in state of Bahia
Slide 31: Project Development & Execution Schedule
Project Development & Execution Schedule 2012 2013 2014 2015 2016 Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Development Phase Resettlement Land Purchase & Resettlement Early Engineering Early Procurement Awards Early Construction Bidding Detail Engineering Project Execution Approval Proc
Slide 32: Corporate Structure & Financial Position
Corporate Structure & Financial Position Exchange/Symbol TSX/ORA Share Structure Issued and outstanding 228 Million Fully diluted* 245 Million Ownership Management, Directors & Insiders 13% Cyprus River Holdings 23% Yamana Gold 19% Institutional Investors 20% Financial* Cash and equivalents US$9.3 M
Slide 33: Corporate Responsibility
Corporate Responsibility TSX: ORA 33
Slide 34: Appendices
Appendices TSX: ORA 34
Slide 35: Reserve & Resource Statement
Reserve & Resource Statement Aranzazu Minerals Resource Tonnage Copper Gold Silver Contained Contained Contained (000 t) (%) (g/t Au) (g/t) Copper Gold Silver (000 lbs) (000 oz) (000 oz) Measured 8,338 1.36 0.82 14.06 250,215 219 3,768 Indicated 9,432 1.63 0.56 21.45 338,523 171 6,504 Total Measured
Slide 36: Reserve & Resource Statement
Reserve & Resource Statement San Andres Tonnage (000 t) Gold (g/t Au) Contained Gold (000 oz) Total Proven & Probable Reserve 45,762 0.53 784 Total Measured & Indicated Resource 98,939 0.51 1631 Inferred Resource 1,918 0.51 32 Note: Mineral Resources are inclusive of Mineral Reserves; Mineral Resour
Slide 37: Management Team
Management Team Jim Bannantine, President and Chief Executive Officer • Joined Aura Minerals in October 2011 • Served as CEO of Intercap Energy Systems, a provider of systems and software to electric utilities and large commercial, campus and government customers • From 2005 to early 2010, Mr. Banna
Slide 38: Management Team
Management Team Bruce Butcher, P. Eng, Vice President, Technical Services • Joined Aura Minerals in September 2010 • Over 25 years of mine engineering, operating and project experience from both North and South America • Prior to joining Aura Minerals, served as Director, Mine Engineering for Teck R
Slide 39: Management Team
Management Team Keith Harris-Lowe, Vice President, Human Resources • Joined Aura Minerals in June 2010 • Brings over 15 years of experience in the mining sector • Prior to joining Aura Minerals, worked for Falconbridge Ltd. and then Xstrata Plc. following the merger of these two companies • Worked a
Slide 40: Board of Directors
Board of Directors Patrick J. Mars, Chairman of the Board and Director • Mr. Mars joined the Board in January 2006 and was appointed the non-executive Chairman of the Board in March 2008. Mr. Mars is a corporate director with extensive experience in mining financing and analysis gained during his ca
Slide 41: Board of Directors
Board of Directors Elizabeth A. Martin, Director • Director of the Company since March 2008 • Ms. Martin is a corporate director and professional accountant with a strong background in international exploration and mining projects • She has held senior financial management and executive roles in bas
Slide 42: Thank You
Thank You Aura Minerals Inc. (TSX: ORA) 155 University Avenue, Suite 1240 Toronto, ON, Canada Tel: +1-416-649-1033 Email: info@auraminerals.com Web: www.auraminerals.com