Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (August 2017)
43 slides from Western Copper And Gold's investor presentation, August 2017
Slide 1: Developing Canada's Premier Copper-Gold Mine
DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE AUGUST 2017 TSX : WRN I NYSE MKT : WRN
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Western Copper and Gold Corporation and its subsidiaries (collectively, the “Company”). This document should be read in conjunction with al
Slide 3: Clean and Tightly-Held Ownership Structure
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE CASH POSITION Cash & Short Term Investments C$ 5.9 million Mar 31, 2017 Working Capital C$ 5.8 million Short/Long Term Debt $Nil SHARE STRUCTURE Share Price C$ 1.51 July 31, 2017 Market Cap C$ 145 M Common Shares 96,453,935 Options 4,483,335 Warrants - Full
Slide 4: The Casino Project
GLOBALLY SIGNIFICANT THE CASINO PROJECT ROBUST ECONOMICS AT SPOT PRICES ADVANCED DEVELOPMENT STAGE SURROUNDED BY MAJORS IN YUKON, CANADA TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold Mine 4
Slide 5: Top Copper-Gold Mine Not Owned by a Major
TOP COPPER-GOLD MINE NOT OWNED BY A MAJOR ALASKA YUKON CASINO PROJECT Whitehorse GOLD COPPER Skagway 8.9 M 4.5 B oz Reserves lbs Reserves 9.0 M 5.4 B oz Inferred Resources lbs Inferred Resources B.C Vancouver Note: see Appendix for detailed Casino mineral resource & reserve. Based on 2013 Feasibilit
Slide 6: A Significant Copper Deposit
A SIGNIFICANT COPPER DEPOSIT 12 30 10 25 Copper Equivalent (B lbs) 8 20 Copper (B lbs) 6 15 4 10 2 5 0 0 Casino Rosemont Pumpkin NorthMet Timok Mt. Casino NorthMet Rosemont Pumpkin Mt. Timok (WRN) (HBM) Hollow (POM) (NSU) Milligan (WRN) (POM) (HBM) Hollow Milligan (NSU) (NCU) (CG) (NCU) (CG) ■ Prove
Slide 7: A Significant Gold Deposit
A SIGNIFICANT GOLD DEPOSIT 50 70 45 60 40 Gold Equivalent (M ozs) 35 50 Gold (M ozs) 30 40 25 30 20 15 20 10 10 5 0 0 Donlin Caspiche Detour Casino Back Coffee Casino Donlin Caspiche Detour Back Coffee Gold (XRC) Lake (WRN) River (G) (WRN) Gold (XRC) Lake River (G) (NG) (DGC) (SBB) (NG) (DGC) (SBB)
Slide 8: Leverage to Both Gold and Copper
LEVERAGE TO BOTH GOLD AND COPPER
Slide 9: Looming Copper Supply Crunch
LOOMING COPPER SUPPLY CRUNCH ~ 5 million tonne deficit by IRR 2027 equivalent to annual production of 65 Casino mines (100% equity) 18.6 Source: Rio Tinto TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold Mine 9
Slide 10: Gold Exploration Fail
GOLD EXPLORATION FAIL Amount of gold found by miners has plunged 85% over the past decade. IRR (100% equity) 18.6 TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold Mine 10
Slide 11: WRN Shares Give Leverage to Copper and Gold
WRN SHARES GIVE LEVERAGE TO COPPER AND GOLD Copper Spikes to $2.76/lb Copper increases $0.50 to $2.60/lb Gold Spikes to $1370/oz Gold increases Yukon ExplorCo $200 to $1280/oz Investments by: • Agnico-Eagle • Barrick • Newmont • Kinross Goldcorp Buys Kaminak • Coeur TSX : WRN I NYSE MKT : WRN Develo
Slide 12: Copper Investment Value – Significant Upside Potential
COPPER INVESTMENT VALUE – SIGNIFICANT UPSIDE POTENTIAL 4.0 3.5 EV/lb Copper Equivalent (¢/lb) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Panoro (PML) Northern Western NGEx Trilogy (TMQ) Polymet Nevada Dynasty (WRN) (NGQ) (POM) Copper (NCU) (NDM) Notes: Peer group data as per latest company public documents. Share
Slide 13: Gold Investment Value – Significant Upside Potential
GOLD INVESTMENT VALUE – SIGNIFICANT UPSIDE POTENTIAL 80.0 70.0 EV/oz Gold Equivalent ($/oz) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Western Exeter Chesapeake Inter. TH Seabridge Midas Sabina NovaGold Victoria (WRN) (XRC) (CKG) (ITH) Gold Gold (SBB) (NG) Gold (SEA) (MAX) (VIT) Notes: Peer group data as per
Slide 14: A Clear Path to Create Value
& western COPPER AND GOLD A CLEAR PATH TO CREATE VALUE
Slide 15: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Dale Corman, B.Sc., P.Eng Paul West-Sells, PhD Cameron Brown, P.Eng Julien Francois, CPA, CA Executive Chairman President & CEO VP Engineering VP Finance & CFO Extensive experience in Metallurgical Engineer with Formerly Project Manager for Has been C
Slide 16: Following a Proven Path to Create Value
FOLLOWING A PROVEN PATH TO CREATE VALUE May 2006 ✓ • Spin-out from Western Silver Transaction with Glamis (now Goldcorp) Nov 2006 ✓ • Acquired Casino Project from Lumina Resources 2008-2012 ✓ • Two Pre-Feasibility Studies Completed and Drilling to 100,000 m Jan 2013 ✓ • Bankable Feasibility Study Co
Slide 17: Local Support
LOCAL SUPPORT ✓ Strong Community Outreach • 10 Years Operating in the Yukon • Ongoing Engagement with Local Communities • Co-operation Agreements Signed with First Nations • Significant Yukon Government Collaboration and Support • Federal Government Support as Part of $200M Infrastructure Request TS
Slide 18: Significant Resource & Reserve
SIGNIFICANT RESOURCE & RESERVE Reserve (P&P) Leached cap: 157 Mt @ 0.29 g/t Au 8.9 million oz Gold Initial 4 years: 172 Mt @ 0.70% CuEq 22 Year Mine Life: 965 Mt @ 0.50% CuEq 4.5 billion lbs Copper 93-185 Inferred Resource 0.95% CuEq over 689m 9.0 million oz Gold Incl. 3.6% CuEq over 100m 1,710 Mt @
Slide 19: Project Economics
PROJECT ECONOMICS Project Economics at Spot Prices (after-tax)* NPV IRR PAYBACK @8% (C$) (years) $1.9 B 20.8% 2.8 *Note: Au US$1260/oz, Cu US$2.85/lb, Mo US$7.00/lb, Ag US$16.50/oz, FX: US$:C$ 1:0.80. Based on 2013 Feasibility Study. TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold
Slide 20: Production
PRODUCTION Y1 to 22 YRS Y4 Grade % CuEq 0.70 0.50 500 Copper production (M lb/y) 245 171 Gold Production (k oz/y) 399 266 450 Copper (million lbs), Gold (thousand ozs) Silver Production (k oz/y) 1,777 1,425 400 Moly Production (M lb/y) 15.3 15.5 Strip Ratio 0.49 0.59 350 Net Smelter Return ($/t mill
Slide 21: Comparable Capex
Unit Capex (US$/t CuEq/y) $5,000 $0 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $10,000 Sentinel ($2B) Los Helados ($1.2B) Baimskaya ($1.8B) New Prosperity ($0.8B) El Pilar ($0.3B) Haquira ($2.1B) Asmara ($0.6B) TSX : WRN I NYSE MKT : WRN Pumpkin Hollow ($1.1B) Josemaria ($2.3B) Pebble (
Slide 22: Majors Have Discovered the Yukon
MAJORS HAVE DISCOVERED THE YUKON Note: Ownership and Claims taken from Public Disclosures TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold Mine 22
Slide 23: It All Adds Up
IT ALL ADDS UP SIZEABLE ECONOMIC COPPER-GOLD PROJECT SIGNIFICANT REGIONAL INVESTMENT FROM GOLD MAJORS COPPER DEFICIT LOOMING+LACK OF LARGE GOLD DEPOSITS CLEAR PATH TO CREATE VALUE TSX : WRN I NYSE MKT : WRN Developing Canada’s Premier Copper-Gold Mine 23
Slide 24: Appendix
& western COPPER AND GOLD APPENDIX
Slide 25: Board of Directors
BOARD OF DIRECTORS • 40 years experience as a senior corporate officer of publicly listed companies. Dale Corman, Extensive expertise in mineral exploration & development, financing, property B.Sc, P.Eng. evaluation and acquisition. Formerly Chairman & CEO of Western Silver Corporation. Executive Ch
Slide 26: Analyst Coverage
ANALYST COVERAGE RODMAN & RENSHAW HEIKO F. IHLE, CFA TEL: (212) 356 - 0510 CORMARK SECURITIES (NEW ANALYST, CURRENTLY UNDER REVIEW) TSX : WRN I NYSE MKT : WRN Appendix 26
Slide 27: YESAB Panel Review Process
YESAB PANEL REVIEW PROCESS YESAB Review Timeline February 18, 2016 ✓ • Project Requires Panel Review March 18, 2016 ✓ • Request Approved from Environment Minister June 20, 2016 ✓ • YESAB Compiles List of Additional Information to be Submitted ~ End of 2017 • Company Completes and Submits Additional
Slide 28: Select Precedent Base Metal Developer Transactions
SELECT PRECEDENT BASE METAL DEVELOPER TRANSACTIONS 1.25x 1.00x Price / Net Asset Value 0.75x Average P/NAV: 0.62x 0.50x 0.25x 0.00x Norsemont First Quantum > PanAust > Frieda Western Copper & Lundin > Eagle Mine HudBay > Augusta Nevsun > Reservoir Thompson Creek > Mercator > Creston Stillwater > Cup
Slide 29: Project Economics
PROJECT ECONOMICS ECONOMICS Base Case Spot Copper (US$/lb) 3.00 2.85 Gold (US$/oz) 1,400 1,260 Molybdenum (US$/lb) 14.00 7.00 Silver (US$/oz) 25.00 16.50 Foreign Exchange (US$:C$) 0.95 0.80 NPV @ 8% (C$ M) 2,820 2,940 Pre-Tax IRR (100% equity) (%) 24.0 24.9 NPV @ 8% (C$ M) 1,830 1,910 After Tax IRR
Slide 30: Revenue Distribution
REVENUE DISTRIBUTION Y1 to Y4 LOM BASE % of Revenue – Copper ($3) 48% 46% (0.95 FX) % of Revenue – Gold + Silver 40% 37% % of Revenue – Gold ($1,400) 37% 34% % of Revenue – Silver ($25) 3% 3% % of Revenue – Moly ($14) 12% 17% Y1 to Y4 LOM SPOT % of Revenue – Copper ($2.85) 53% 51% (0.80 FX) % of Rev
Slide 31: Operating Costs
REVENUE DISTRIBUTION ($/tonne) MILLING Milling $5.13 OPERATION Mining $3.05 General & Administrative $0.34 Total $8.52 ($/tonne) HEAP LEACH Heap Leach Operation $1.31 OPERATION ADR/SART $2.73 Total $4.04 Note: based on 2013 Feasibility Study, see “Notes” in Appendix. TSX : WRN I NYSE MKT : WRN Appen
Slide 32: Casino as a Copper Company
CASINO AS A COPPER COMPANY Inferred COPPER RESERVE AND RESOURCE Reserve Resource Total Copper (lbs) 4.5 B 5.4B Total Copper Equivalent (lbs) 11.4 B 13.9 B COPPER PRODUCTION Y 1-4 LOM Copper Production (M lbs/year) 245 171 Copper Equiv. Production (M lbs/year) 516 382 COPPER COSTS Base Spot Cash Cost
Slide 33: Casino as a Gold Company
CASINO AS A GOLD COMPANY Inferred GOLD RESERVE AND RESOURCE Reserve Resource 9.0 M Total Gold (oz) 8.9 M Total Gold Equivalent (oz) 26.2 M 31.7 M GOLD PRODUCTION Y 1-4 LOM Gold Production (k oz/year) 399 264 Gold Equiv. Production (k oz/year) 1,179 872 GOLD COSTS Base Spot Cash Cost Net of By-Produc
Slide 34: Royalty Sale Confirms Value
ROYALTY SALE CONFIRMS VALUE VALUATION METRICS Royalty Sale Confirms Project Value Price – 5% NPI1 ~$28 M Price – 5% NPI to 2.75% NSR $32 M Total Price – NSR $60 M Net Present Value of Royalty2 $230 M 1 – Estimated by Western Copper and Gold. For further information refer to Strategic Metals Ltd. new
Slide 35: Feasibility Study – January 2013 Capital Costs
FEASIBILITY STUDY – JANUARY 2013 MINE COSTS $ Millions Projected Mining Equipment & Mine Development 454 Capital costs Concentrator (incl. related facilities) 904 Heap Leach Operation 139 Camp 70 Subtotal Mine Direct Costs 1,566 Indirect Costs 295 Subtotal Mine Direct & Indirect Costs 1,861 INFRASTR
Slide 36: Proposed Road Access
PROPOSED ROAD ACCESS TSX : WRN I NYSE MKT : WRN Appendix 36
Slide 37: East – West Section 6958400 N
EAST – WEST SECTION 6958400 N Note: based on 2013 Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE MKT : WRN Appendix 37
Slide 38: Good Grade
GOOD GRADE Mineral Reserve Grades In Line with Peers: Casino Life of Mine (965 Mt) CASINO Casino Y1-Y4 (172 Mt) Copper Mountain - CUM (2012) Highland Valley - TCK (2012) Gibraltar - TKO (790 Mt) PEERS Mt. Milligan - TC (482 Mt) Red Chris - III (301 Mt) Cobre Panama - FM (3058 Mt) 0.00 0.20 0.40 0.60
Slide 39: Processing
PROCESSING MILLING • Throughput: average LOM 124,000 tonnes per day • Grinding Circuit: 40 ft SAG Mill (29 MW) + 2 x 28 ft Ball Mills (22 MW each) • Medium – soft ore: BWi – 14.1 kWh/t, 200 µm primary grind FLOTATION • Conventional copper/moly circuit • Recoveries: Copper 86%, Gold 67%, Moly 71%, Si
Slide 40: Excellent Concentrate Quality
EXCELLENT CONCENTRATE QUALITY Copper Concentrate Molybdenum Concentrate Element Avg Value Unit Element Avg Value Unit Copper 28 % Molybdenum 57.4 % Gold 25 g/t Copper 0.39 % Silver 120 g/t Rhenium 133.5 g/t Molybdenum 0.05 % Iron 0.8 % Iron 26 % Sulphur 37.9 % Sulphur 36 % Arsenic 1659 g/t Arsenic 2
Slide 41: Casino - Mineral Reserve & Resource Estimates
CASINO - MINERAL RESERVE & RESOURCE ESTIMATES Reserve Resource at 0.25% CuEq Cut-off Note: based on 2013 Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE MKT : WRN Appendix 41
Slide 42: Notes
NOTES 2013 Feasibility Study • Technical report entitled "Casino Project, Form 43-101 Technical Report Feasibility Study, Yukon, Canada – Revision 1" dated January 25, 2013, a copy of which is available on Western Copper and Gold's website at www.westerncopperandgold.com and under its profile at www
Slide 43: Contact
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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