Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Metals Investor Forum – Virtual Conference (April 2020)
22 slides from Mining Americas's conference presentation, Apr 30, 2020
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company Metals Investor Forum –Virtual Conference April 30th 2020 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! We are We are at PROVEN BUILDERS DEVELOPMENT STAGE • 3 successful mines put into production in last 12 years • 100 % Owned Assets • Strong operational expertise in heap leach mining • 2 high-quality, open pit development-stage assets • Ability to
Slide 4: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Ticker TSXV:MAI Osisko Gold Royalties 18.7% Share Price (as of April 29th, 2020) C$0.385 Retail & other 52.2% Donald Smith Value Basic Shares Outstanding 407.5M Fund 9.6% Options 25.9M Aegis Financial Warrants 2.8M 4.9% Fu
Slide 5: Relative Performance
Equity Performance Outperformance of Peer Group, Gold and GDXJ • Minera Alamos has outperformed each Minera Alamos Performance Versus Gold Price and Peers | Since June 1, 2019 of the GDXJ, gold price, and its peer group since June 1, 2019 300% • Minera Alamos saw ~81M warrants expire or be exercised
Slide 6: Outperformance of Peer Group, Gold and GDXJ
Equity Performance Outperformance of Peer Group, Gold and GDXJ Minera Alamos Performance Versus Gold Price and Peers | Since June 1, 2019 HRT -59% AUG -29% MAX 3% KOR 7% OSK 9% LUM 22% TML 30% MOZ 45% PGM 56% SBB 69% GOLD 91% OLA 215% LGD 255% MAI 267% -100% -50% 0% 50% 100% 150% 200% 250% 300% Sour
Slide 7: 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 8: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned TSX-V: MAI
Slide 9: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX (~C$10m) heap leach development project with bulk test mining completed and permits approved 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 Mi
Slide 10: Construction Funding Announced
Economics Construction Funding Announced $14 Million Royalty/Equity Construction Announced December 2019 • $6 million equity financing with largest shareholder Osisko Gold Royalties increasing their stake in the Company from 12.5% to 18.7% (Completed) • Third consecutive straight share (no warrant)
Slide 11: Construction Highlights
Santana Project Construction Highlights Test Mining Completed • ~50,000 t mined • Recovered gold grade +0.67 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 Mine Construction • Co
Slide 12: Construction Highlights
Santana Project Construction Highlights Crushing, Screening & Agglomeration System Purchase • Design capacity of approximately 300 tph (5,000-6,000 tpd) taking run-of- mine (“ROM”) heap leach material and crushing/screening (three stage crushing) to a fine size passing 3/8” • The system will provide
Slide 13: Phase 2 Exploration Results – Nicho Breccia Pipe
Santana Project Phase 2 Exploration Results – Nicho Breccia Pipe Deepest and Longest Mineralized Intersection Drilled at Nicho – S20-134 Nicho Zone (Phase 2 Development Drilling) • Deepest test of Nicho pipe to date (vertical depth of Significant expansion of Nicho pipe on to the southwest and south
Slide 14: Exploration potential
Santana Project Exploration potential Potential to define a significant gold mineral district (>1-2MMoz potential) Divisadero Zone (2018 & 2019 Drilling Discovery) • Gold-silver discovery ~200m N of Nicho Norte ➢ 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag Multiple targets; New discoveries; Actively being dril
Slide 15: La Fortuna PEA – High Grade Open Pit
La Fortuna Project PEA – High Grade Open Pit 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, the
Slide 16: PEA – Economic summary
La Fortuna Project PEA – Economic summary Pre-Tax NPV (7.5%) US$103.8M Pre-Tax IRR After-Tax NPV (7.5%) 122% US$69.8M 93% After-Tax IRR 93% STRONG IRR After-Tax Pre-Tax Payback Period 9 months After-Tax Payback Period Ave. Annual Production 11 months 43k oz Au, 220K oz Ag 1,000 t Cu (50k oz AuEq) US
Slide 17: Value Proposition
Value Proposition TSX-V: MAI
Slide 18: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K per annum Acquire 3rd Santana asset La Fortuna Expansion • Targeting +/- 700k quality ounces • Low Capex • Exploration driven expansion Santana • Large land package • Low Capex Build derived from ongoing drilling supported by royalty and • Significa
Slide 19: Peer Gold Developer Comparables
Equity Performance Peer Gold Developer Comparables Minera Alamos Peer Gold Developer Comparables • Minera Alamos currently trades at a discount to its peer group (0.52x to 1.20x 0.60x), indicating the strong re-rating potential and continued positive share price momentum, as it transitions from 1.00
Slide 20: Execution – 2019 a springboard for this year's transition
Real business in action Execution – 2019 a springboard for this year’s transition The secret to our success so far - Business “101” - When you say you are going to do something – do it! • Dealt with our legacy warrant overhang – no artificial warrant related cap moving forward • Permit Issuance – On
Slide 21: Executing in 2020 – The Transition to Gold Producer
Real business in action Executing in 2020 – The Transition to Gold Producer Santana Mine Construction Q1 – Q3 Santana- Start of Mining Operations Q4 Santana- Phase 2 Exploration Ongoing Q1 – Q4 La Fortuna - Permit Issuance / Finalize Debt Negotiations Q2 – Q3 Ongoing Evaluation of Near-Term Producti
Slide 22: Thank you
~~ MINERA\ ALAMOS PS: ally TSX-V: MAI
Minera Alamos — Metals Investor Forum – Virtual Conference (April 2020) on 6ix