China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — Non-Deal Roadshow (April 2016)
24 slides from China Gold International Resources's roadshow presentation, April 2016
Slide 1: Sustainable Profitability and Growth
TSX: CGG | HKSE: 2099 April 2016 Sustainable Profitability and Growth
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: Content
CONTENT 1. China Gold International 2015 Operation Highlights……………………… 4 2. About China National Gold Group …………………………………………… 5 3. About China Gold International ……………………………………………… 6 3.1 Basic Info …………………………………………………………… 6 3.2 Resources/Reserves, Production ………………………………… 7 3.3 Financial Highlights
Slide 4: China Gold International 2015 Operation Highlights
1. CHINA GOLD INTERNATIONAL 2015 OPERATION HIGHLIGHTS Consistent Profitability Remained Investment 8 Years Rapid Growth of Mine operating earnings in 2015 is Grade Credit Rating Production Capacity $USD 63 million August 2015 – “BBB-” long-term 2015 gold production is 229 8 years of consistent opera
Slide 5: About China National Gold Group (CNG)
2. ABOUT CHINA NATIONAL GOLD GROUP (CNG) CHINA NATIONAL GOLD GROUP OWNS 39.33% OF CHINA GOLD INTERNATIONAL Largest gold producer in China Major Shareholder in both International Employment: 50,800 people and Domestic Listings – TSX and HK Stock Exchanges: BBB credit rating by S&P China Gold
Slide 6: About China Gold International
3.1 ABOUT CHINA GOLD INTERNATIONAL Dual listed, profitable and growing gold Inner Mongolia and copper producer Two producing mines in China: CSH Mine Baotou • CSH Gold Mine - Inner Mongolia Tibet Region • Jiama Copper-Polymetallic Mine - Tibet Region Lhasa The ONLY overseas listing vehicle of
Slide 7: Resources/Reserves, Production
3.2 RESOURCES/RESERVES, PRODUCTION Combined Gold Reserve / Resource Copper Reserve / Resource Contained Gold Contained Copper CSH and Jiama Gold Jiama’s Copper (Billion Pounds / (MM oz) Thousand Tonnes) Proven / Probable Reserve 5.46 Proven / Probable Reserve 5.9 / 2,673 Measured / Indicated Resourc
Slide 8: Financial Highlights
3.3 FINANCIAL HIGHLIGHTS Maintaining profitability despite lower commodity prices Realized average gold price Realized average copper price 1,700 (US$ per ounce) 2.82 2.75 (US$ per pound) 1,611 1,600 2.7 2.51 1,500 2.4 1,362 1,400 2.1 1.99 1,300 1.8 1,209 1,200 1.5 1,117 1,100 1.2 1,000 0.9 2012 201
Slide 9: 2015 Financial Highlights
3.4 2015 FINANCIAL HIGHLIGHTS Item Year ended Dec. 31, 2015 Year ended Dec. 31, 2014 Revenues (MM USD) 340 278 Net Profit (MM USD) * -7 42 Net Operating Cash Flow (MM 67 3 USD) Earning per share (US cents) -2.07 10.02 Cash Costs – CSH 702 $/oz 590 $/oz Cash Costs – Jiama (copper equivalent) 1.54 $/l
Slide 10: Cost Reduction Measures
3.5 COST REDUCTION MEASURES The company has been engaged in the following cost savings measures: renegotiated with contractors, decreasing procurement cost rely on progress of science and technology, optimize “five rates” and reduce “five fees” optimization of mining plan and improvement of he
Slide 11: Cost Reduction
3.6 COST REDUCTION Total Costs (gold) Cash Costs (gold) ($ per oz. gold) ($ per oz. gold) 920 884 920 866 870 870 820 768 820 770 770 702 720 720 707 670 670 620 620 590 570 570 520 520 2013 2014 2015 2013 2014 2015 Total Costs (Copper) Cash Costs (Copper) ($ per lbs. copper after by-product credits
Slide 12: CSH Gold Mine – Overview
3.7 CSH GOLD MINE – OVERVIEW One of China’s largest gold mines Located in Inner Mongolia of China, CSH Mine Resources ~ 210km northwest of the city of Baotou Tonnage Grade Gold Content Principal product: Gold dore bars with silver as a Resources (mt) (g/t) (Moz) by-product Measured 38 0.65 0.79
Slide 13: CSH Gold Mine – Expansion Completed
3.8 CSH GOLD MINE – EXPANSION COMPLETED H2, 2014 - Expansion finished, commercial production begins. Processing capacity increased from 30,000 tpd to 60,000 tpd 2015 gold production is 204,471 oz 2016 gold production is expected to be 219,000 oz Newly completed crushing system CSH gold product
Slide 14: Jiama Polymetallic Mine – Expansion Progress
3.9 JIAMA POLYMETALLIC MINE – EXPANSION PROGRESS Processing capacity will increase from 6,000 tpd to 50,000 tpd when completed Stage I of the plant started the loaded test run in October 2015. Defects elimination work is now undergoing. Two source pits ready to provide ore feed Stage II of t
Slide 15: Jiama Polymetallic Mine – Geology
3.10 JIAMA POLYMETALLIC MINE – GEOLOGY Current Reserves and Resources Jiama Resources Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Category (mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt) (M oz) (M oz) (kt) (kt) Measured 96.8 0.40 0.04 0.10 6.53 0.04 0.02 385.5 35 0.27 17.86 43 23 Indica
Slide 16: Investment Grade Rating
3.11 INVESTMENT GRADE RATING China Gold International China National Gold Group’s Ratings by S&P Ratings by S&P “BBB-“ long-term corporate rating by “BBB” long-term corporate credit rating Standard Poor’s Rating Services (“S&P”). and a “cnA-” long-term Greater China S&P expects that CGG “will ob
Slide 17: Superior Financing Capability
3.12 SUPERIOR FINANCING CAPABILITY Amount RMB 3.98 Billion ($US 627 Million) November 2015 – RMB 3.98 Billion (US$ Date November 3, 2015 627 MM Loan Facility) 2.83% per annum (at time of issue) Rate of People's Bank of China Lhasa Center Branch’s Low Cost Financing Interest interest rate LESS 0.07
Slide 18: Our Unique Corporate Model
3.13 OUR UNIQUE CORPORATE MODEL In China Internationally Viewed as a local Full TSX and HK Chinese miner listing allows access to global capital Full support of China markets National Gold Group – our 39% shareholder Building international Global Vision, corporate and Access to the Interna
Slide 19: Experienced Board and Management
3.14 Experienced Board and Management Senior Management of CNG and CGG Liangyou Jiang Xin Song Bing Liu Lianzhong Sun Senior Executive Vice Chairman & CEO & Executive Non-executive Director President and Executive Director Director Executive Director ~ 30 years of ~ 30 years of over 30 years of ~ 30
Slide 20: Social Responsibility, Harmonic Development, Highest HSE Standards
3.15 SOCIAL RESPONSIBILITY, HARMONIC DEVELOPMENT, HIGHEST HSE STANDARDS Continue to strengthen safety management Continue to stick with high HSE standards and ecological protection principals. No environmental or ecological problems happened this year Continue consolidate achievements in harmo
Slide 21: Awards
3.16 AWARDS “CSR (Corporate Social Responsibility) Model Enterprise” by the Corporate Jiama Social Responsibility Research Center of Chinese Academy of Social Sciences “3 second grade awards and 1 third grade awards for Technology Innovation 2015 Jiama Achievements” by China Gold Association “1 Gran
Slide 22: Growth Plan – Accretive Acquisition Strategy
3.17 GROWTH PLAN – ACCRETIVE ACQUISITION STRATEGY Property Acquisition Criteria Valuation Transaction Accretive to current Selective Structure shareholders Significant Stake in acquisition strategy the Project and Target traded at a Financed through: internal Resources/Reserves deep discount t
Slide 23: Share Information
4. SHARE INFORMATION TSX: CGG – HKSE: 2099 Capital Structure and Share Info Top 10 Institutional Holders (# shares) (As of March 30, 2016) (As of March 21, 2016) Issued and VAN ECK ASSOCIATES 396.4 million CORP Outstanding 20.42MM DIMENSIONAL FUND 3.71MM Fully Diluted 396.4 million ADVISORS LP Cash
Slide 24: Thank You!
Thank You! China Gold International Resources Corp. Ltd TSX: CGG – HKSE: 2099 24
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