Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Metals Investor Forum 2019
24 slides from Mining Americas's conference presentation, May 24, 2019
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company May 24th/25th 2019 Metals Investor Forum TSX-V: MAI
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Minera Alamos believes, expects or anticipates will or may occur in the future are forward-lookin
Slide 3: Investment Thesis
Investment Thesis Why invest in us? Multi-leveraged! • 3 successful mines put into production in last 12 years We are • Strong operational expertise in heap leach mining Proven Mine Builders • Ability to expedite projects towards production and minimize initial CAPEX requirements We have • 2 high-qu
Slide 4: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Osisko Gold Royalties 13% Dona ld Smith Value Ticker TSXV:MAI Fund 10% Share Price (as of May 21, 2019) C$0.105 Aegi s Financial Retail & other 5% Basic Shares Outstanding 353.8M 56% Options 18.2M Other Institutions Warran
Slide 5: Management & Board of Directors
The Team Management & Board of Directors Darren Koningen • +20 years of engineering/metallurgical experience and led the development of Castle Gold’s El Castillo project prior to its sale to Argonaut CEO and Director • Designed, constructed, commissioned and operated two gold heap leach operations i
Slide 6: Castle Gold 2.0 – Tighten your bootstraps
The Concept Castle Gold 2.0 – Tighten your bootstraps • Team behind Castle Gold • In 2008, built the El Castillo gold mine in Mexico with initial production of 25,000 oz/y for just US$6 million CAPEX • Starting resource 300koz • Expanded twice from internal cash flow to 75koz/y • Bought by Argonaut
Slide 7: High Quality Assets
High Quality Assets Santana La Fortuna Guadalupe de Los Reyes TSX-V: MAI
Slide 8: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline Santana (Permitting) • Bulk test mining phase successfully completed • Preliminary engineering and design work completed • Applications for commercial-scale permits submitted La Fortuna (Permitting) • Robust PEA released August 2018 • Low ca
Slide 9: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX heap leach development project with bulk test mining completed Location/Infrastructure • Sonora State, Mexico; 100% owned; 8,500 ha • Accessible by paved highway • 50 km SW of Alamos Gold’s 3M oz Mulatos Gold Mine Mine Plan/Stage • Near-term
Slide 10: Santana Project: Bulk test mining completed
Santana Project Bulk test mining completed Test Mining Results • ~50,000 t mined • Recovered gold values +0.66 g/t • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across test sizes • Excellent percolation eliminating the need for agglomeration 10
Slide 11: Santana Project: Commercial production designs completed
Santana Project Commercial production designs completed Proposed gold heap leach operations site arrangement The Company advises that it has not made a production decision and that although it is advancing the project towards such a decision it does not have a Feasibility Study of mineral reserves d
Slide 12: Santana Project: Exploration potential
Santana Project Exploration potential (10,000 m planned in 2019) • Multiple targets, known zones appear to be open along strike and to Hole Area From To Width Gold Silver Copper m m m g/t g/t % depth S18-114 Nicho Satellite 66.2 81.1 14.9 1.40 • 2018 surface work resulted in the discovery of the Zat
Slide 13: La Fortuna Project: PEA (released August 2018)
La Fortuna Project PEA (released August 2018) A high-grade, low-CAPEX open pit operation with significant resource expansion potential – Notice of Permit Approval received. Location • Durango State, Mexico; 100% owned • ~6,200 ha Infrastructure • Easily accessible via a 100 km road from Culiacan, th
Slide 14: La Fortuna Project: Initial starter zone
La Fortuna Project Initial starter zone High-Grade High-Margin Starter Pit • +300k oz resources currently defined • Majority of resource grades 3.5-4.0 g/t Au • Wide zones of mineralized breccia • Metallurgical testing demonstrated +90% Au recoveries Processing Capacity • 2,000 tpd mill acquired • 1
Slide 15: PEA – Economic summary
La Fortuna Project PEA – Economic summary Pre-Tax NPV (7.5%) US$103.8M Pre-Tax IRR 122% Notes: After-Tax NPV (7.5%) US$69.8M 1. AuEq – gold equivalent ounces. 2. “ASIC per ounce” is a non-GAAP financial performance After-Tax IRR 93% measure with no standardized definition under IFRS. 3. Base case pr
Slide 16: La Fortuna Project: Exploration potential
La Fortuna Project Exploration potential • Multiple zones of “La Fortuna-style” mineralization identified • Some alteration zones (e.g. PN Prospects area) are significantly greater in scale than those present at La Fortuna • No systematic exploration since 2008/9 Zone Description Ramada • Parallel f
Slide 17: Guadalupe de los Reyes: Strategic Partnership
Guadalupe de los Reyes Project Strategic Partnership 19.8% equity interest in ePower Metals advancing the project development Terms of the Transaction • Enables MAI to continue to support the advancement of GDR through active Board level participation and through offering up its operating and develo
Slide 18: Valuation Proposition
Valuation Proposition TSX-V: MAI
Slide 19: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K Acquire per annum • 40-45M (USD) CAPEX Santana 3rd asset for all projects • Average 650 AISC (USD) La Expansion • Targeting +/- 500k quality ounces • Low Capex Santana Fortuna • Low Capex build supported by internal cash flow • Large land package •
Slide 20: Production Profile
Economics Production Profile Resource/Production Growth at Operating Mines* and Company Projections* * Resource Expansion 20
Slide 21: Strong Cash Flow
Economics Strong Cash Flow 21
Slide 22: Undervalued Vs. Peer Group
Comps P/NAV Undervalued Vs. Peer Group Broad Developer Peer Group | P/NAV 0.90x Re-rating opportunities from: 0.80x 0.80x 0.77x 0.74x • Organic Production growth 0.70x • Resource Expansion (~ <$10/oz discovery cost) 0.61x 0.60x 0.60x 0.59x 0.55x 0.49x 0.48x 0.50x 0.47x Average; 0.47x 0.47x 0.46x 0.4
Slide 23: Upcoming Catalysts
A Transformational Year Upcoming Catalysts Develop low CAPEX high IRR assets while expanding the near mine resource and remaining opportunistic for further consolidation Mine Development Resource Expansion Corporate Development Large contiguous land packages Santana surrounding areas of defined Acqu
Slide 24: Thank you
Thank you www.mineraalamos.com TSX-V: MAI