Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (December 2024)
42 slides from Western Copper And Gold's investor presentation, December 2024
Slide 1: Developing Canada's Largest Critical Minerals Project
TSX WRN NYSE AMERICAN WRN DEVELOPING CANADA’S LARGEST CRITICAL MINERALS PROJECT Corporate Presentation | December 2024
Slide 2: Cautionary Notes
CAUTIONARY NOTES The information provided in this presentation is not future revenues, and timing of development, or potential property; litigation; legislative, environmental and other reserve” and “probable mineral reserve” are Canadian intended to be a comprehensive review of all matters and expa
Slide 3: Corporate Overview
CORPORATE OVERVIEW CAPITAL STRUCTURE OWNERSHIP LISTINGS TSX, NYSE American WRN TOP Rio Tinto 9.7% SHAREHOLDERS FINANCIALS Cash & Investments C$74.9M (Public Disclosure) Management & Board 4.8% (Sept 30, 2024) Debt Nil Fidelity 4.5% SHARE Share Price C$1.57 STRUCTURE (Nov 29, 2024) Market Cap C$311M
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS CLEAR INVESTMENT THESIS • One of the largest copper-gold projects globally • Located in the Yukon – supportive mining district • Recent Feasibility Study shows robust economics and long mine life • Strong fundamentals for copper and gold CONTINUING TO ADD VALUE • Significant re
Slide 5: Strategic Investments
STRATEGIC INVESTMENTS C$25.6M C$2.3M Top-up April 2023 C$6.0M New rights Nov 2023 C$21.3M Initial Investment: May 2021 C$0.3M Top-up March 2024 Investment: March 2023 Average Cost: C$2.07 C$5.0M Top-up April 2024 Average Cost: C$2.63 RIO TINTO KEY RIGHTS MITSUBISHI KEY RIGHTS Rio Tinto has the right
Slide 6: The World Needs a Lot More Copper
THE WORLD NEEDS A LOT MORE COPPER Copper demand is expected to grow by 70% to >50Mtpa by 2050 Solid foundation from traditional demand; global energy transition and digital revolution are megatrends accelerating growth Despite >$107B of investment in Tier 1 copper projects over the last decade, the
Slide 7: An Attractive Copper-Gold Mine
AN ATTRACTIVE COPPER-GOLD MINE Metal Value Distribution 46% 34% COPPER GOLD in the M&I Mill Resource COPPER GOLD 7.6 Billion lbs 14.8 Million oz M+I Resources M+I Resources +3.1 Billion lbs +6.3 Million oz Inferred Resources Inferred Resources 4% 17% SILVER MOLYBDENUM Source: Based on Casino Copper-
Slide 8: Casino Copper-Gold Project
CASINO COPPER-GOLD PROJECT TSX | NYSE AMERICAN | WRN
Slide 9: Long Section of the Casino Copper-Gold Deposit
LONG SECTION OF THE CASINO COPPER-GOLD DEPOSIT HEAP LEACH RESERVE CORE ZONE Mill Reserve underpins 209.6 million tonnes at 0.28 g/t AuEq (P&P) Casino’s long mine life There is a higher grade Pit subset of mineralization Outline in the center of the deposit that will be mined early on during operatio
Slide 10: Closer Look at the Higher Grade Core Zone
CLOSER LOOK AT THE HIGHER GRADE CORE ZONE Results confirmed or improved upon historical drilling 800 m x 500 m zone in the centre of the deposit Primarily breccia geology Grades within in the Core Zone are significantly higher compared to the overall resource grade DDH21-07 289.6 m at 1.01% CuEq DDH
Slide 11: Attractive Grade Profile
ATTRACTIVE GRADE PROFILE Casino Mill Yr 1-4 (174 Mt) 0.26:1 CASINO PROJECT Casino Mill LOM (1.4 Bt) 0.43:1 Gibraltar - Taseko (585 Mt) 1.49:1 Highland Valley - Teck (263 Mt) 0.74:1 OPERATING Copper Mountain - HBM (367 Mt) 5.56:1 MINES Mt. Milligan - CG (250 Mt) 1.19:1 -- 0.10% 0.20% 0.30% 0.40% 0.50
Slide 12: The Right Combination of Grade and Strip Ratio
THE RIGHT COMBINATION OF GRADE AND STRIP RATIO Grade Strip Ratio Strip-Adjusted Grade (% CuEq) (waste : ore) (% CuEq moved, ore + waste) Good grades and a peer- MARA 0.77% Galore Creek 2.49 Casino (Year 1-4) 0.52% leading strip-ratio are key Galore Creek 0.69% Vizcachitas 2.33 Reko Diq 0.33% advanta
Slide 13: Feasibility Study Summary
FEASIBILITY STUDY SUMMARY C$2.33 Billion 18.1% 0.43:1 3-year NPV IRR STRIP RATIO PAYBACK AFTER-TAX (8%) AFTER-TAX LOM 27 years $10 Billion MINE LIFE – Mill Operation LOM CASH FLOW AFTER-TAX Metal Prices: Cu US$3.60/lb Au US$1,700/oz Ag US$22/oz Mo US$14/lb; FX Rate: 1 CAD = US$0.80. Note: Based on C
Slide 14: Economic Throughout the Commodity Cycle
ECONOMIC THROUGHOUT THE COMMODITY CYCLE COPPER PRICE (US$/lb) US$3.50 US$3.60 US$4.00 US$4.50 US$5.00 US$5.50 US$6.00 NPV 8% C$1,831 C$1,944 C$2,396 C$2,961 C$3,526 C$4,091 C$4,656 US$1,500 IRR % 16.1% 16.5% 18.2% 20.2% 22.1% 23.9% 25.6% Payback (yrs) 3.7 3.6 3.3 3.0 2.8 2.6 2.4 NPV 8% C$2,221 C$2,3
Slide 15: De-risked Through Quick Payback
DE-RISKED THROUGH QUICK PAYBACK CASH FLOW & PRODUCTION PROFILE YEARS 1-4 LIFE-OF-MINE AVERAGE Cash Flow (Pre-tax) ($M) C$1,033 C$662 ANNUAL CASH FLOW & Cash Flow (After-tax) ($M) C$951 C$517 COSTS Net Smelter Return ($/t ore milled) C$43.15 C$29.08 Operating Cost ($/t ore milled) C$11.16 AVERAGE Cop
Slide 16: Attractive Cost Profile
ATTRACTIVE COST PROFILE Low strip ratio reduces the amount of waste tonnes moved, resulting in lower hauling costs (the largest component of mining costs) Deposit sits on a hilltop, single large open-pit Haul profiles are favourable (portion of the planned hauls are downhill loaded) Processing costs
Slide 17: Feasibility Study Capital Costs
FEASIBILITY STUDY CAPITAL COSTS PROJECTED CAPITAL COSTS PROCESS PLANT & Project Directs (Including Freight) C$2,116 INFRASTRUCTURE Project Indirects C$431 Contingency C$369 Subtotal C$2,916 MINE Mine Equipment C$433 Mine Pre-production C$228 Subtotal C$661 Owners Costs C$41 SUSTAINING & TOTAL Total
Slide 18: ESG Commitment
ESG COMMITMENT SOCIAL ENVIRONMENTAL GOVERNANCE Committed to health and safety Committed to exceeding best Committed to high ethical and committed to the protection practices in protecting the standards and building of cultural values environment long term value • Ongoing Engagement with Local • Acce
Slide 19: Access Road Funding
ACCESS ROAD FUNDING C$130 Yukon Resource Gateway Project funding Million the Casino Copper-Gold Access Road Federal government has committed funding towards the construction of a 120 km road to access the Casino Project Construction of the road started in early 2022, with the first 5 km completed la
Slide 20: Government-Led Initiative Secures Port Access
GOVERNMENT-LED INITIATIVE SECURES PORT ACCESS C$45 Yukon government investing in Marine Services Million Platform as part of Skagway Port Redevelopment In March 2023, the Yukon government signed an MOU with Municipality of Skagway to secure long-term tidewater access for Yukon’s mining industry Term
Slide 21: Progress on Yukon-BC Grid Interconnection
PROGRESS ON YUKON-BC GRID INTERCONNECTION C$40 Critical Minerals Infrastructure Fund investing in Million BC-Yukon Grid Connect Project Casino’s base case is to use an LNG power plant The Yukon grid is beyond capacity, with 22 rental diesel generators addressing the shortfall; frequent power outages
Slide 22: Casino Permitting Timeline
CASINO PERMITTING TIMELINE TASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 YESAB Process Establish Panel Technical Analysis Potential Public Hearings Construction Start Panel Report Decision Land use Preparation Permit for Casino Road Obtain Permits Type A Water Preparation Use License Water Board Process Quartz M
Slide 23: Investment Highlights
INVESTMENT HIGHLIGHTS Multi-decade copper and gold resource High-grade core leads to quick payback Low strip ratio drives attractive cost profile Significant leverage to rising commodity prices Yukon is supportive mining district De-risking through permitting Improving infrastructure backdrop throug
Slide 24: Appendix
APPENDIX TSX | NYSE AMERICAN | WRN
Slide 25: Significant Positive Economic Impact on the Yukon
SIGNIFICANT POSITIVE ECONOMIC IMPACT ON THE YUKON Economic Impact of the development of Casino Copper-Gold on the Yukon and Canada Over the life-of-mine, the Casino Project is Each year, the Casino Project is estimated to: estimated to: • Contribute C$1.3 billion to Yukon’s economy • Contribute C$44
Slide 26: Technical Collaboration
TECHNICAL COLLABORATION Tailings Facility Redesign Closure by rock/sand cover limiting Reduced Risk, Reduced Environmental the need for tailings “pond” Impact and Improved Safety Several other changes to the design to reduce construction risk Redesign incorporates the outcomes of the BATT study – a
Slide 27: Property Geology
PROPERTY GEOLOGY Note: Based on Casino Copper-Gold 2022 Feasibility Study. See “Notes” in Appendix. TSX | NYSE AMERICAN | WRN 27
Slide 28: Mining
MINING Pit designs for five mining phases were developed to produce 45.4 Mtpa of mill feed ore Mill material is limited to 1.2 Bt due to TMF capacity The pits were designed with 40 m wide ramps, 20 m benches Pit slope angles of 45 degree for most of the pit, with some areas at 42 degrees Komatsu 980
Slide 29: Processing
PROCESSING Milling • Throughput: Average life-of-mine 120,000 tpd • Grinding Circuit: 40 ft SAG Mill (29 MW) + 2 x 28 ft Ball Mills (22 MW each) • Medium – soft ore: BWi – 14.5 kWh/t, 200 µm primary grind Flotation • Conventional copper/moly circuit • Recoveries: Copper 86%, Gold 67%, Moly 71%, Silv
Slide 30: Excellent Concentrate Quality
EXCELLENT CONCENTRATE QUALITY ELEMENT AVG VALUE UNIT ELEMENT AVG VALUE UNIT Copper 28 % Molybdenum 57.4 % Gold 25 g/t MOLYBDENUM CONCENTRATE Copper 0.39 % COPPER CONCENTRATE Silver 120 g/t Rhenium 133.5 g/t Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 % Arsenic 1,659 g/t Arsenic
Slide 31: Feasibility Study Operating Cost
FEASIBILITY STUDY OPERATING COST LOM ($/TONNE) MILLING Milling C$6.42 OPERATION Mining C$4.28 General & Administrative C$0.46 Total C$11.16 HEAP LEACH Heap Leach Operation C$1.93 OPERATION ADR/SART C$4.80 Total C$6.73 Note: Based on Casino Copper-Gold 2022 Feasibility Study. See “Notes” in Appendix.
Slide 32: Enterprise Value/Copper Equivalent Resource Benchmarking
ENTERPRISE VALUE/COPPER EQUIVALENT RESOURCE BENCHMARKING (US¢/lb CuEq) WRN is undervalued with greater growth ¢14.72 opportunity compared to its peers ¢10.29 ¢1.89 WESTERN COPPER & GOLD ¢1.53 ¢1.48 ¢1.22 ¢1.13 ¢0.92 ¢0.81 ¢0.76 ¢0.71 ¢0.61 ¢0.52 ¢0.23 ¢0.22 ¢0.19 (North Island) Highland Copper (San
Slide 33: 7th Largest Undeveloped Copper-Gold Project Controlled by a Junior
7th LARGEST UNDEVELOPED COPPER-GOLD PROJECT CONTROLLED BY A JUNIOR 120 Alaska Junior controlled copper project 157 Major controlled copper project 100 BC 144 WRN’s Casino Copper-Gold project COPPER EQUIVALENT (B LBS) 80 CASINO 60 Ecuador COPPER-GOLD PROJECT Argentina x Chile 40 Chile Yukon Ecuador P
Slide 34: Copper Development Project Capital Intensity
COPPER DEVELOPMENT PROJECT CAPITAL INTENSITY $45,000 $40,000 $35,000 INITIAL CAPITAL INTENSITY (US$/TPA AVERAGE CUEQ) CASINO $30,000 COPPER-GOLD PROJECT $25,000 $20,000 $15,000 $10,000 $5,000 -- WRN Feasibility Pre-Feasibility PEA Notes: Data from S&P CapIQ on select copper or copper-gold projects.
Slide 35: Copper Development Transactions
COPPER DEVELOPMENT TRANSACTIONS ANALYST CONSENSUS PRICE / NAV MULTIPLES BHP - 50% Josemaria (Lundin) (US$0.7 Bn) 0.92x Lundin Mining / BHP - Filo (US$3.0 Bn) 0.79x MACH Metals Australia - Rex Minerals (US$0.2 Bn) 0.58x Silvercorp - Adventus (US$0.1 Bn) 0.34x Glencore - 56.25% MARA (Pan American) (US
Slide 36: Ana and Casino B
ANA AND CASINO B Significant exploration potential to the west of the pit Both copper targets similar to Casino and gold targets similar to the Coffee deposit to the north Note: See “Notes” in Appendix TSX | NYSE AMERICAN | WRN 36
Slide 37: 2022 Casino Copper-Gold Resource
2022 CASINO COPPER-GOLD RESOURCE MILL RESOURCE ($6.11/t NSR CUTOFF) NSR Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class Mt (C$/t) (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Measured 144.9 40.09 0.30 0.38 0.024 2.1 0.64 953 1.8 75.2 9.6 Indicated 2,114.2 20.34 0.14 0.16 0.015 1.4
Slide 38: 2022 Casino Copper-Gold Resource
2022 CASINO COPPER-GOLD RESOURCE TOTAL RESOURCE (MILL + HEAP LEACH) NSR Copper Gold Silver Copper Gold Silver Class Mt (C$/t) (%) (g/t) (g/t) (M lb) (M oz) (M oz) Measured 188.2 36.34 0.24 0.40 2.2 1,005.0 2.4 13.3 Indicated 2,302.6 19.61 0.13 0.17 1.4 6,638.1 12.4 103.9 M+I 2,490.7 20.88 0.14 0.18
Slide 39: 2022 Casino Copper-Gold Reserve
2022 CASINO COPPER-GOLD RESERVE MILL RESERVE NSR Copper Gold Moly Silver CuEq Copper Gold Moly Silver Class Mt (C$/t) (%) (g/t) (%) (g/t) (%) (M lb) (M oz) (M lb) (M oz) Proven 140.1 38.50 0.31 0.39 0.024 2.1 0.67 944 1.8 74.9 9.4 Probable 1,076.9 23.68 0.17 0.19 0.021 1.6 0.36 4,135 6.7 497.1 55.5
Slide 40: Notes: Casino Copper-Gold Feasibility Study
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for hypogene sulphide mill material is: Technical report entitled “Casino Copper-Gold Project, Form 43-101 F1 - NSR (C$/t) = $73.81 x copper (%) + $41.16 x gold (g/t) + $213.78 x moly (%) + Technical Report Feasibility Study” dated June 13, 20
Slide 41: Notes: Casino Copper-Gold Feasibility Study
NOTES “Casino Copper-Gold Feasibility Study” • NSR value for leach material is Mineral Reserve - NSR (C$/t) = $14.05 x copper (%) + $47.44 x gold (g/t) + $0.210 x silver (g/t), based on recoveries of 18% copper, 80% gold and 26% silver. • The Mineral Reserve estimate has an effective date of June 13
Slide 42: Contact
info@westerncopperandgold.com 604 684 9497 www.westerncopperandgold.com TSX | NYSE AMERICAN | WRN
Western Copper and Gold — Investor Presentation (December 2024) on 6ix