China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — PDAC 2017
18 slides from China Gold International Resources's conference presentation, Mar 5, 2017
Slide 1: PDAC 2017
TSX: CGG | HKSE: 2099 PDAC 2017 March 5, 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking stateme
Slide 3: China Gold International Overview
CHINA GOLD INTERNATIONAL OVERVIEW Unique Corporate Model Strong support from the controlling shareholder –China National Gold Group Investment Grade Credit Rating August 2016 – S&P reaffirmed the Company’s BBB- long-term corporate credit rating Ability to Raise Sizable Financing at Low Cost December
Slide 4: Capital Structure
CAPITAL STRUCTURE Major China Gold Shareholders Listings TSX: CGG HK Stock Exchange: 2099 China National Gold 39.33% GROUP CORP Van Eck Associates 9.59% Issued& Outstanding 396.41million Corporation Shares Dimensional Fund 1.68% Advisors Market Cap CAD 1.3 billion Vanguard 1.05% Blackrock 0.82% Cash
Slide 5: 2016 Highlights
2016 HIGHLIGHTS Item Q3 ended Q3 ended Year ended September September December 30, 2016 30, 2015 31, 2015 Commissioning of Series I of Revenues (MM USD) $109.5 $99.9 $340 Jiama Phase II Expansion Net Profit (MM USD) * $7.7 $(5.2) $(7) commenced December 1, 2016 Net Operating Cash $31.1 $19.7 $67 F
Slide 6: Organic Growth - CSH Gold Mine
ORGANIC GROWTH - CSH GOLD MINE CSH gold production (’000 ounces) 250 204 200 185 163 150 134 139 131 111 83 100 57 50 22 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E Improving Gold Recovery % 60% 52% 55% 53% 54% 51% 52% 49% H2, 2014 - Expansion finished, commercial 50% 43% 45% production b
Slide 7: Organic Growth - Jiama Polymetallic Mine
ORGANIC GROWTH - JIAMA POLYMETALLIC MINE Expansion target: increase processing capacity from 6,000 tpd to 47,000 tpd Commissioning of Series I of Jiama Phase II Expansion commenced December 1, 2016 Processing facilities completed, underground engineering is on-going 2017 2018 2019 2020 2021 26
Slide 8: Copper Price Rebounds Earlier Than Anticipated
COOPER PRICE REBOUNDS EARLIER THAN ANTICIPATED Rebound drivers 2016-2017 Copper Performance Demand from China is recovering (2016, China's real copper consumption likely rose 5.7 Copper Price Per Pound percent, in the high end of the projected 3-7 percent range) U.S. infrastructure plans will bo
Slide 9: Accretive Acquisition Strategy
ACCRETIVE ACQUISITION STRATEGY Valuation Transaction Structure Accretive to current Significant Stake in shareholders the Project and Property Acquisition Criteria Resources/Reserves Target traded at a deep discount to current asset value Metal Geography Selective acquisition strategy Gold f
Slide 10: Our Strength: Supported by China's Largest Gold Producer
OUR STRENGTH: SUPPORTED BY CHINA’S LARGEST GOLD PRODUCER About China National Gold (CNG) Largest gold producer in China A diversified mining company with a whole industrial chain model A global mining player BBB credit rating by S&P-Strong ability to resist risk Major shareholder in both i
Slide 11: Our Strength: Investment Grade Rating
OUR STRENGTH: INVESTMENT GRADE RATING China Gold International’s Ratings by S&P China National Gold Group’s Ratings by S&P 11
Slide 12: Our Strength: Superior Financing Capability
OUR STRENGTH: SUPERIOR FINANCING CAPABILITY Amount RMB 3.98 Billion ($US 627 Million) 2015 RMB 3.98 Billion (US$ 627 MM Loan Date November 3, 2015 Facility) 2.83% per annum (at time of issue) Rate of People's Bank of China Lhasa Center Branch’s Interest Low Cost Financing interest rate LESS 0.07%
Slide 13: Our Strength: Experienced Board and Management Team
OUR STRENGTH: EXPERIENCED BOARD AND MANAGEMENT TEAM Top management of China Gold International Xin Song Bing Liu Lianzhong Sun Liangyou Jiang Chairman and Executive CEO and Executive Non-Executive Director Senior Executive Vice Director Director President and Executive Director 30+ years 30+ years 3
Slide 14: Our Strength: Excellent Operational Track Record
OUR STRENGTH: EXCELLENT OPERATIONAL TRACK RECORD Maintain profitability and increase production despite lower commodity prices Combined Gold Production CSH & Jiama Copper Production from Jiama (M lbs) (‘000 oz) 250 229 45 40 211 40 38 200 181 35 31 153 30 28 142 148 26 150 25 22 111 83 20 100 15 5
Slide 15: 2017 Outlook
2017 OUTLOOK Series I of Jiama Phase II Expansion will turn into commercial production Copper production in 2017 is expected to be doubled to approximately 79 million pounds By the end of 2017, processing capacity of Jiama expansion will reach 80% of its designed capacity Continuingly workin
Slide 16: High Standard of CSR and HSE
HIGH STANDARD OF CSR AND HSE ACHIEVING SUSTAINABLE DEVELOPMENT THROUGH CORPORATE SOCIAL RESPONSIBILITY Environmental protection Support to local school Building rural roads Improvement of portable water Green mine initiatives In Canada – keep supporting Canadian Cancer Society since 2011
Slide 17: Company Awards
COMPANY AWARDS CSR (Corporate Social Responsibility) Model Enterprise by Federation of Trade Unions, Federation of Industry 2016 and Commerce and SASAC Model Family for Employees by All-China Federation of Trade Union CSR (Corporate Social Responsibility) Model Enterprise by the Corporate Social Res
Slide 18: Thank You!
HERS AMAR AR A] China Gold Intemational Resources Corp. Ltd. Thank You!