Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (June 2019)
33 slides from Torex Gold Resources's investor presentation, June 2019
Slide 1: Asset – Team – Game Changing Technology
TSX: TXG June 2019 Asset – Team – Game Changing Technology 1
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (THE ‘MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT (DEFINED BELOW). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY S
Slide 3: Torex Has The Ingredients To Continue Growing A Profitable Business
Torex Has The Ingredients To Continue Growing A Profitable Business We all look forward to delivering the potential of our assets… ...and producing significant added value via growth and innovation 3
Slide 4: Multiple Areas Of Focus In 2019
Multiple Areas Of Focus In 2019 Delivering strong cash flow from El Limón Guajes and advancing Media Luna… …while proving up Muckahi and expanding underground potential Deliver on full year 2019(1) guidance Gold sold: 430,000 oz +/- 7% TCC/oz sold(2): $580/oz +/- 7% AISC/oz sold(2): $790/oz
Slide 5: El Limón Guajes Is Expected To Provide Significant Cash Flow To Advance Growth Opportunities
El Limón Guajes Is Expected To Provide Significant Cash Flow To Advance Growth Opportunities The below chart is the anticipated year end cash position from ELG (1)… …Muckahi will provide options to invest the cash for greater returns US$M Debt Cash Balance (YE) Excl. Restricted cash of $26.8M 1) Fin
Slide 6: Year End Cash Position During Build-Out Of Media Luna
Year End Cash Position During Build-Out Of Media Luna(1) Two scenarios for Media Luna - Conventional mining and Muckahi… …conventional mining has an after tax IRR of 27%, with Muckahi it is 46% 1) Financial estimates as per September 4, 2018 Technical Report (see Addendum). 6
Slide 7: The Property Has The Potential To Offer A Great Deal More Beyond El Limón Guajes And Media Luna
The Property Has The Potential To Offer A Great Deal More Beyond El Limón Guajes And Media Luna ‘Purple’ has been a good place to look for gold and copper… …most of the ‘purple’ targets have not been drilled yet 1) For details of the mineral resource and reserve estimates (see Addendum). 7
Slide 8: Sub-Sill & ELD Both Provide Future Growth Potential
Sub-Sill & ELD Both Provide Future Growth Potential ELD is the down dip extension of the El Limón Pit, drilling it now… ...Sub-Sill is also being drilled down dip and down plunge • R Sub-Sill Deposit El Limón Final Pit Enlarged View Limits • T • A • X Sub-Sill Deposit ELD Deposit Interpreted As ‘Pod
Slide 9: Near Term Growth & Replacement Of The Open Pit Cash Flow
Near Term Growth & Replacement Of The Open Pit Cash Flow An elegant design for Media Luna has been further optimized... ...an updated PEA was announced in September 2018 Looking East Current inferred resource of 7.4 million Au Eq. Oz. at a grade of 4.48 g/t(1)(2) Potential to grow – Resource is
Slide 10: Getting Out Of The Box To Create Value and Strategic Options
Getting Out Of The Box To Create Value and Strategic Options We are developing what could be an industry changing technology… Top - Media Luna with current technology. Bottom - With Muckahi (1) Looking East Conventional Mine Design For The Media Luna Deposit Media Luna Designed With Torex’s Propriet
Slide 11: Muckahi – Single Asset Diversification Is Of Interest
Muckahi – Single Asset Diversification Is Of Interest Muckahi, which is expected to be proven in 2019, would give us… …a material advantage when competing for assets 1) See first paragraph of slide 2. 11
Slide 12: Muckahi – The Elevator Ride Explanation
Muckahi – The Elevator Ride Explanation The question that led to its development is “Why would anyone want to run a logistics business on single lane roads?” Muckahi is expected to achieve the following: Continuous material handling of ore from the stope to the shaft or surface (Conveyors instead
Slide 13: Muckahi – Development Of The Technology Is Progressing Rapidly, Testing Is Underway
Muckahi – Development Of The Technology(1) Is Progressing Rapidly, Testing Is Underway - Expected Completion, End Of 2019 The ‘working bits’ of the equipment are ‘off-the-shelf’… ...the design work is in the carrier, testing of first-gen is underway Four test objectives for 2019 Monorail base deve
Slide 14: Muckahi – Turning Intention Into Reality
Muckahi – Turning Intention Into Reality The Muckahi Rock Drill (Jumbo) and this Service Platform are on-site. Two other Muckahi machines are being built. The Jumbo has been successfully operated, tunneling blasts were successfully completed in Q1, and the Service Platform is expected to be in servi
Slide 15: The New Government Acknowledges The Importance Of Mining For The Development Of Rural Areas
The New Government Acknowledges The Importance Of Mining For The Development Of Rural Areas Initial government plans for the industry… …seem well aligned with Torex values and protocols Accelerate investment of royalty monies into ‘mining’ communities Enforcement of environmental regulation Gr
Slide 16: Everyone Wants A Better Future For Their Children
Everyone Wants A Better Future For Their Children The opportunities the mine provides are known and appreciated… …and there is always the hope that more can be provided Strong community relations are the foundation for a harmonious relation with the regulators We are creating an external stakehold
Slide 17: Broadly Owned By Skilled Institutional Investors
Broadly Owned By Skilled Institutional Investors Institutional investors with deep understanding of the industry… …believe in the asset, the management team and the Board Institution(1) Shares (MM) % Corporate Data(2) Cash, including restricted Blackrock 10.6 12.4 cash (Q1/19) $118.5 million Debt, p
Slide 18: A Board With Strong Strategic And Governance Experience
A Board With Strong Strategic And Governance Experience Deep experience gained as industry professionals… …complemented by extensive Board level experience • TERRY MACGIBBON PGeo, ICD.D • DAVID FENNELL LLB Board Chair 30 years experience as a director and senior executive with 45 years of mining ind
Slide 19: A Beautiful Asset And A Tested Management Team
A Beautiful Asset And A Tested Management Team Proven ability to navigate the technical, commercial,… …& social complexities of challenging mining operations • FRED STANFORD PEng • ANNE STEPHEN CEO V.P. Human Resources 35 years of experience, primarily in operations at 30 years of experience as an H
Slide 20: Mining In El Limón Pit, Trucking Ore To The RopeCon
Mining In El Limón Pit, Trucking Ore To The RopeCon 20
Slide 21: Panoramic View Of The Processing Plant And RopeCon From The El Limón Pit
Panoramic View Of The Processing Plant And RopeCon From The El Limón Pit 21
Slide 22: Filtered Tailings Storage Facility
Filtered Tailings Storage Facility 22
Slide 23: Health And Safety - Equipment, Training, Start Of Shift Safety Reviews, Security
Health And Safety - Equipment, Training, Start Of Shift Safety Reviews, Security 23
Slide 24: Community Outreach Programs
Community Outreach Programs 24
Slide 25: Addendum
TSX: TXG Addendum 25
Slide 26: El Limón Guajes Open Pit Mineral Resource Statement Effective As Of December 31, 2018
El Limón Guajes Open Pit Mineral Resource Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Resource Class (Mt) (g/t) (g/t) (Moz) (Moz) El Limón (including El Limón Sur) Measured 4.80 3.29 4.68 0.51 0.72 Indicated 20.20 2.67 4.29 1.73 2.79 Measured & Indi
Slide 27: El Limón Guajes Open Pit Mineral Reserve Statement Effective As Of December 31, 2018
El Limón Guajes Open Pit Mineral Reserve Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Reserve Category (Mt) (g/t) (g/t) (Moz) (Moz) El Limón (including El Limón Sur) - Note 3 Proven 3.80 3.48 4.20 0.43 0.51 Probable 11.24 3.05 3.69 1.10 1.33 Sub-tota
Slide 28: Sub-Sill Underground Mineral Resource Statement Effective As Of December 31, 2018
Sub-Sill Underground Mineral Resource Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Contained Au Contained Ag Resource Class (Mt) (g/t) (g/t) (Moz) (Moz) Sub-Sill Measured 0.06 10.14 10.35 0.02 0.02 Indicated 1.11 6.87 11.74 0.24 0.42 Measured & Indicated 1.17 7.04 11.67 0.26
Slide 29: Sub-Sill Underground Mineral Reserve Statement Effective As Of December 31, 2018
Sub-Sill Underground Mineral Reserve Statement Effective As Of December 31, 2018 Tonnes Au Grade Ag Grade Cu Grade Contained Au Contained Ag Reserve Category (Mt) (g/t) (g/t) (%) (Moz) (Moz) Sub-Sill Proven 0.04 7.48 8.18 0.29 0.01 0.01 Probable 0.62 6.91 11.42 0.61 0.14 0.23 Total Proven & Probable
Slide 30: Media Luna Deposit Inferred Mineral Resource Estimate @ 2.0 g/t Au Eq. Cut-off Grade
Media Luna Deposit Inferred Mineral Resource Estimate @ 2.0 g/t Au Eq. Cut-off Grade (Effective As Of June 23, 2015) Deposit Resource Tonnes Gold Eq. Contained Gold Contained Silver Contained Copper Contained Category (Mt) Grade Gold Eq. Grade Gold Grade Silver Grade Copper g/t (Moz) (g/t) (Moz) g/t
Slide 31: ELG Complex Life Of Mine Plan (September 2018 Technical Report)
ELG Complex Life Of Mine Plan (September 2018 Technical Report) 1) Cash Flow in 2018 includes Financing proceeds of $48m. Revenue adjusted to actual price for H1 2) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18, Reserves as of March 31, 2018 3) Lowest quartile producer per
Slide 32: Media Luna Conventional PEA (September 2018 Technical Report)
Media Luna Conventional PEA (September 2018 Technical Report) 1) Metal Prices used $1,200/oz Au, $17.00/oz Ag, $3.00/lb Cu, USD:MXN 1:18 2) A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Lu
Slide 33: For further information: Dan Rollins, Vice President, Corporate Development & Investor Relations
For further information: Dan Rollins, Vice President, Corporate Development & Investor Relations 33 Email: dan.rollins@torexgold.com Direct: (647) 260-1503 Website: www.torexgold.com
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