Artemis Gold Inc · TSXV:ARTG
Artemis Gold — Investor Presentation (September 2021)
27 slides from Artemis Gold's investor presentation, September 2021
Slide 1: Advancing the Blackwater Gold Project - 2021 Feasibility Study
Mission Statement: ToMission create and grow sustainable value by applying leading, technically Statement : To create and grow sustainable value by applying leading, technically excellent excellent andand differentiated differentiated approaches to approaches to managing managing mining assets minin
Slide 2: Forward Looking & Cautionary Statements
Forward Looking & Cautionary Statements This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws (together, “forward-looking statements”). Forward-looking statements can generally be identi
Slide 3: Why Invest in Artemis Gold?
Why Invest in Artemis Gold? • Proven Track Record of Execution and Value Creation: • Same team that founded, developed, operated and sold Atlantic Gold • Board and Management Alignment with Shareholders: • Board/Management own 41% of the fully diluted shares • Invested $138M in the company over the
Slide 4: Blackwater 2021 Feasibility Study
Blackwater 2021 Feasibility Study • Year 1-5 Annual Gold Production up 29% to 321,000 at AISC of US$578/oz: • Initial throughput increased by 9% to 6Mtpa, up from 5.5Mtpa in the 2020 PFS • Gold grade processed increases to 1.62 g/t gold, up from 1.57 g/t gold in the 2020 PFS. • Average annual FCF in
Slide 5: Derisking Blackwater One Catalyst At A Time
Derisking Blackwater One Catalyst At A Time • The Artemis team maintains its track record of delivering derisking catalysts on time and in line with guidance Senior Management Depth (Q1 2021): Addition of Jeremy Langford (COO) and Candice Alderson (SVP Corporate Affairs) GMP Process Plant (Q1 2021):
Slide 6: Blackwater Project 2021 FS Summary
Blackwater Project 2021 FS Summary After accounting for the gold stream granted to New Gold Gold Price –US$1,600/oz Phase 1 Phase 2 Phase 3 Phase 44 LOM Years 1-5 6-10 11-17 18-22 22 years Initial/Expansion Capex $645m $347m $374m Nil $1,418m Sustaining Capex1 $286m $250m $256m $39m $831m Year 1-4:
Slide 7: Blackwater Project 2021 FS NPV & IRR Sensitivity
Blackwater Project 2021 FS NPV & IRR Sensitivity • Compelling project economics at lower gold prices: At a lower US$1,300/oz, after-tax IRR remains 22% with an after-tax NPV of C$1.23 billion. • Substantial leverage to higher gold prices: At an US$1,800/oz gold price, after-tax NPV5% increases to C$
Slide 8: Leverage Scenario improves Economics
Leverage Scenario improves Economics • As part of the FS, a levered scenario was prepared to compare the potential impact on returns when project debt financing assumptions are applied. • The levered scenario is based on the following debt financing assumptions based on the credit approved term shee
Slide 9: Phase 1 – Higher Throughput & More Robust Crushing Circuit
Phase 1 – Higher Throughput & More Robust Crushing Circuit • Throughput expanded to 6Mtpa • Reduced plant footprint • Gyratory crusher provides more operational throughput upside potential in Phase 1 • Allows for streamlined and construction ready Phase 2 expansion • Initial Development Capital of C
Slide 10: Phase 2 & 3 Expansions Streamlined
Phase 2 & 3 Expansions Streamlined Phase 2 Expansion: • Minor modifications of Phase 1 crushing, stockpile and ball mill feed system • Second ball mill added in series with Phase 1 • Duplication of the gravity concentration, leaching, absorption, elution and cyanide destruction circuits • Minor infr
Slide 11: Blackwater Gold Production and AISC
Blackwater Gold Production and AISC Notes: FCF = Operating Cash Flow – Sustaining Capex (includes Closure Costs) – Cash Taxes (Excludes Expansion/Growth Capital) Exp. Capex = Expansion Capital, AISC = All-In Sustaining Costs TSX Venture: ARTG www.artemisgoldinc.com 11 In Phase 4, low grade ore stock
Slide 12: Exploration Potential
Exploration Potential: Open to the North, Northwest and at depth • Already a 22-year reserve life • Long-term exploration upside potential remains substantial • Open to the North • Open to the Northwest • Open at depth in the South • 1,500 km2 largely under-explored land package, including the Capoo
Slide 13: Gold Price Resource Upside
Gold Price Resource Upside Purple Surface – PFS US$1,400/oz AuEq pit limit • Current reserves based on a US$1,400/oz gold price pit shell • At a US$1,400/oz + 143% gold price, the pit shell potentials expands Additional Resource in US$1,400/oz +143% Au pit shell Category Tonnes (Mt) AuEq (g/t) AuEq
Slide 14: Differentiators: Blackwater Gold Project
Differentiators: Blackwater Gold Project • Tier 1 mining jurisdiction in Central British Columbia • Environmental Assessments Approved in 2019 • Supportive Primary Indigenous Nations: • Participation Agreement with Lhoosk’Uz Dené Nation and the Ulkatcho First Nation executed in April 2019. • Nazko I
Slide 15: Blackwater: Bottom Quartile AISC
Blackwater: Bottom Quartile AISC • The World Gold Council reported average AISC of US$1048/oz in Q1 2021 • With AISC of CAD$850 per ounce or US$672 per ounce (assuming 0.79 US$:CAD$ F/X) , Blackwater falls into the bottom quartile of the global cost curve. 2021 CO-PDT AISC (US$/OZ AU EQ.) – JUNIOR P
Slide 16: In Situ Value – Selected Developers
In Situ Value – Selected Developers EV / RESERVES (US$/OZ AU EQ.) $496 $436 $275 $217 $186 Median: US$186/oz Au Eq. $160 $125 $83 $57 $47 n.a. n.a. n.a. n.a. n.a. Artemis Sabina Orla Marathon Osisko Corvus Skeena Novagold Belo Sun Liberty Gold Probe Mining Pure Gold Orezone Resources Resources Perpe
Slide 17: P/NAV – Selected Developers
P/NAV – Selected Developers • Artemis is trading at 0.50x P/NAV compared with the average developer value of 0.67x P/NAV P/NAV (RATIO) 0.83x 0.81x 0.78x 0.72x 0.70x 0.70x 0.64x 0.64x Median: 0.67x 0.58x 0.47x 0.50x 0.39x 0.37x n.a. Artemis Sabina Orla Marathon Corvus Osisko Skeena Liberty Gold Belo
Slide 18: Value Creation Through Derisking and Execution
Value Creation Through Derisking and Execution Atlantic Gold (2014 - 2019) • Acquisition to Production in 3 years • +1,129% return to shareholders • GDXJ Index down 29% during the same period Artemis Gold (2020 -) • Acquired Blackwater in August 2020 • Targeting all permits by end of Q1 2022 • Targe
Slide 19: Upcoming Catalysts for Artemis Gold
Upcoming Catalysts for Artemis Gold • Steady stream of catalysts and de-risking events for ARTG over the next 12 months Credit Approved Project Debt Jeremy Langford Term Sheets Appointed COO Gerrie van der Westhuizen Grade Control Powerline GMP Appointed VP Finance Program Results Candice Alderson A
Slide 20: Capital Structure
Capital Structure Large Shareholders: Capital Structure (As of September 10, 2021) Issued & Outstanding Shares (M) 153 • Ryan Beedie • Amiral Gestion (Director) • Chris Batalha Options (M) 6 • Steven Dean (CFO) Warrants (M) 32 (Chairman & CEO) • AMG Fully Diluted Shares O/S (M) 191 • Blackrock • Dav
Slide 21: Management Team
Management Team Steven Dean Jeremy Langford 41% Fully Diluted Insider Ownership Chairman & Chief Executive Officer Chief Operating Officer $138 M invested in the company Steven Dean has extensive experience internationally in Jeremy Langford has multi mine gold producer experience mining, including
Slide 22: Artemis Gold Inc.
Artemis Gold Inc. Artemis Gold Inc. +1 (604) 558-1107 | info@artemisgoldinc.com 3083 - 595 Burrard Street, Vancouver, BC, Canada V7X 1L3 www.artemisgoldinc.com TSX Venture: ARTG www.artemisgoldinc.com 22
Slide 23: Appendix I: 2021 FS vs. 2020 PFS
Appendix I: 2021 FS vs. 2020 PFS • Initial development capital of $645m achieves 9% expansion to Phase 1 throughput and ESG investments Description Unit Feasibility 2020 PFS Study Phase 1 Throughput Mtpa 6.0 5.5 Years 1-5 Average Annual Gold Product kozs 321 248 Average Annual Throughput Mtpa 6.6 5.
Slide 24: Appendix II: 2021 FS vs. 2020 PFS (cont…)
Appendix II: 2021 FS vs. 2020 PFS (cont…) • Accelerated throughput expansion drops mine life to 22 years • No change to reserve estimate • Sustaining capital estimates reflects more accurate investments in tailings storage facility Description Unit Feasibility 2020 PFS Description (continued) Unit F
Slide 25: Appendix III: Mineral Resource Estimate for Blackwater
Appendix III: Mineral Resource Estimate for Blackwater Measured & Indicated Mineral Resource Estimate (Effective May 5, 2020) Grades Metal Cutoff Tonnage AuEq Au Ag AuEq Au Ag Notes: Classification (AuEq 1. The Mineral Resource estimate was prepared by Sue Bird, P.Eng., the Qualified Person for the
Slide 26: Appendix IV: Mineral Reserve Estimate for Blackwater
Appendix IV: Mineral Reserve Estimate for Blackwater Proven & Probable Mineral Reserve Estimate (Effective August 18, 2020) AuEq Run of Mine Gold Grade Contained Metal Silver Grade Contained Metal Classification Grade (Mt) (Au, g/t) (Au, Moz.) (Ag, g/t) (Ag, Moz.) (g/t) Proven 325.1 0.78 0.74 7.8 5.
Slide 27: Appendix V: Analyst Coverage
Appendix V: Analyst Coverage Institution Analyst Email BMO Capital Markets Andrew Mikitchook andrew.mikitchook@bmo.com Canaccord Genuity Kevin Mackenzie kevin.mackenzie@canaccord.com Cormark Securities Richard Gray rgray@cormark.com Haywood Securities Pierre Vaillancourt pvaillancourt@haywood.com Na
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