Austral Gold Limited · ASX:AGD
Austral Gold — Shareholder Meeting (May 2022)
46 slides from Austral Gold's shareholder meeting presentation, May 27, 2022
Slide 1: Austral Gold Provides Updated Corporate Presentation (media release)
For personal use only MEDIA RELEASE Austral Gold Limited 27 May 2022 Austral Gold Provides Updated Corporate Presentation Austral Gold Limited (the “Company”) (ASX: AGD; TSX-V: AGLD) is pleased to provide its updated corporate presentation that was provided to shareholders at its 2022 AGM held today
Slide 2: Transforming an Established Gold Producer
For personal use only TRANSFORMING AN ESTABLISHED GOLD PRODUCER FOCUSED ON EXPLORING FOR TIER 1 & TIER 2 PROJECTS Annual General Meeting • Fiscal Year 2021 Review and Outlook Corporate Presentation • May 27, 2022 AGD (ASX) AGLD (TSX-V)
Slide 3: Disclaimer
DISCLAIMER For personal use only This presentation contains information about Austral Gold Limited ("Austral Gold") and Austral Gold's properties that have been extracted from more comprehensive documents. The information contained in this presentation is given in summary form and is qualified in it
Slide 4: Investment Thesis
INVESTMENT THESIS For personal use only FOCUSED on exploring for PROFITABLE flagship INSTALLED production multi-million gold and silver operation to fund capacity with two 1,500 tpd ounce deposits sustaining investments agitation leaching plants HIGH-QUALITY asset BOARD/MANAGEMENT SIGNIFICANT disco
Slide 5: An ASX and TSXV Listed Company with a High-Quality Portfolio of Assets
AN ASX AND TSXV LISTED COMPANY WITH A HIGH-QUALITY PORTFOLIO OF ASSETS For personal use only SYDNEY VANCOUVER Australia Canada ASX Primary Listing (AGD) TSXV Secondary Listing (AGLD) Mercur Project Rawhide Mine Utah, U.S. Nevada, U.S. Rawhide Mine (24%) →Production Mercur Project (12%) →Exploration
Slide 6: Supported by Strong In-House Capabilities Covering the Full Mining Cycle
SUPPORTED BY STRONG IN-HOUSE CAPABILITIES COVERING THE FULL MINING CYCLE For personal use only 1 OPERATION OF MINES Technical team with experience in the exploitation of OP and UG and in metallurgical processes of cyanidation in heaps and agitation. AUSTRAL GOLD is a mining company BROWNFIELD AND an
Slide 7: Proven Track Record at Our Flagship Property
PROVEN TRACK RECORD AT OUR FLAGSHIP PROPERTY For personal use only 10-YEARS OPERATING THE GUANACO & AMANCAYA MINES (2012-2021) 2022 New Technical Report supporting a 12-year increase 475k GEO US$760/GEO in the life of Aggregate production 10-Year Average mine to 2033* (~48k GEO Average/Year) C1 US$9
Slide 8: Creating Value Through M&A
CREATING VALUE THROUGH M&A For personal use only +US$60M invested in a wide range of M&A structures including two friendly takeovers of TSXV listed companies 2013 2014 2016 2017 2019 2020 2021 2022 15% Private Acquisition of 51% Acquisition Acquisition of Acquisition of Earn-in Friendly takeover Agr
Slide 9: Board and Senior Management Team
BOARD AND SENIOR MANAGEMENT TEAM DEMONSTRATED SUCCESS IN EXPLORATION, CONSTRUCTION AND OPERATING MINES use only Stabro Kasaneva, Rodrigo Ramirez, Raúl Guerra José Bordogna, Geologist, CEO & Executive Min. Eng., VP of Operations Geologist, VP of Exploration B.Acc., Msc. Finance, MBA, CFO For personal
Slide 10: Shareholder Information
SHAREHOLDER INFORMATION For personal use only Capital Structure Exchange/Symbol ASX: AGD, TSX-V:AGLD 1. Dual-listed company on ASX Share Price (18 May 2022) A$0.061 (C$0.060) and TSXV 52 Week Trading Range A$0.057 – A$0.180 2. Conservative Capital Shares Outstanding (3) 612,311,353 Structure with lo
Slide 11: FY2021 Review
For personal use only 10 FY2021 REVIEW
Slide 12: Fiscal Year 2021 Review: Focused on Strategic Goals
FISCAL YEAR 2021 REVIEW WE REMAINED FOCUSED ON OUR STRATEGIC GOALS For personal use only EXPAND THE New NI-43-101 technical report issued by a top global firm supporting a 12-year GUANACO/AMANCAYA increase in the life of mine of Guanaco/Amancaya to 2033 OPERATION TIER 1 OR 2 Completed +8K meters of
Slide 13: Fiscal Year 2021 Review: Operations
FISCAL YEAR 2021 REVIEW OPERATIONS For personal use only Guanaco/Amancaya FY 2021 Lost-time-accidents (#) 5 Nil-lost-time accidents (#) 16 Ore Processed (t) 233,794 Average Plant Grade (g/t Au) 5.22 Production Average Plant Grade (g/t Ag) Gold produced (Oz) 18.64 29,938 31,142 GEO Silver produced (O
Slide 14: Fiscal Year 2021 Review: Profitability
FISCAL YEAR 2021 REVIEW PROFITABILITY For personal use only Combined Figures FY 2021 38% Sales Volume (GEO) 35,838 Revenue (US$´000) 64,390 Gross Profit * (US$´000) 24,516 Gross Margin despite a challenging year Gross Profit Margin* (%) 38% with the new operational model and the EBITDA** ($´000) 14,
Slide 15: Fiscal Year 2021 Review: Cash Flow
FISCAL YEAR 2021 REVIEW CASH FLOW For personal use only Combined Figures (US$´000) FY 2021 Operating Cash Flow (A) 11,310 Cash Balance at the beginning of period (B) 12,401 Available Cash (A+B) 23,711 Internal cash generation fully funded Investing Cash Flow - 18,471 US$18.5M of investments Financin
Slide 16: Committed with Our Communities and Employees
FISCAL YEAR 2021 REVIEW WE CONTINUE COMMITTED WITH OUR COMMUNITIES AND EMPLOYEES For personal use only 15
Slide 17: New Updated Technical Report to Expand Guanaco/Amancaya Operation
FISCAL YEAR 2021 REVIEW NEW UPDATED TECHNICAL REPORT TO EXPAND THE GUANACO/AMANCAYA OPERATION For personal use only Pre-Tax Free-Cash Flow (average $1,684/GEO) After Tax NPV (6.89%) US$133M US$77M Life of Mine 12-years (2022-2033) 220K 50% Sourced from 2022-2025 2026-2033 LOM LOM Recovered GEO Heaps
Slide 18: Significant Discount to Relative Valuation Metrics
FISCAL YEAR 2021 REVIEW SIGNIFICANT DISCOUNT TO RELATIVE VALUATION METRICS • Highly Undervalued For personal use only Producer with solid grounds for capital appreciation EV TO M&I RESOURCES US$/GEO 450 400 Precious metals junior miners (production <100k AuEqOz per year) • Market Capitalization of U
Slide 19: Exploration Activities Review and Outlook
EXPLORATION ACTIVITIES REVIEW AND OUTLOOK For personal use only TIER 1 OR 2 EXPLORATION STRATEGY • ORGANIC GROWTH • EARN-IN AGREEMENTS AND STRATEGIC ALLIANCES CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART THE CASPOSO MINE INCREASE THE MINERAL RESOURCE ESTIMATE AT THE PINGÜINO- SIERR
Slide 20: Tier 1 or 2 Projects Exploration Strategy
TIER 1 OR 2 PROJECTS Chuquicamata EXPLORATION STRATEGY Spence Centinela Tier 1 and 2 Projects Targets HIGH-QUALITY PORTFOLIO Gaby For personal use only II REGION Escondida El Peñon CERRO BLANCO SIERRA INESPERADA GUANACO MORROS BLANCOS STRATEGICALLY AMANCAYA LOCATED TARGETS FOR El Salvador TIER La Co
Slide 21: Sierra Inesperada (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY SIERRA INESPERADA (CHILE) For personal use only Objective Sara • Organic growth strategy driving the exploration for a Tier 1 or 2 discovery in the HS Palaeocene - Eocene Belt in Chile, near our Guanaco/Amancaya mine complex 2021 Activities • At Sierra Inesp
Slide 22: Strategic Alliance with Pampa Metals Corp
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY STRATEGIC ALLIANCE WITH PAMPA METALS CORP (CSE:PM) For personal use only Option to acquire 80% of Morros Blancos and Cerro Blanco Initial consideration consisted of 2.9M Pampa Metal shares ($~0.8M) obtained in the acquisition of Revelo Resources 3 WORK COMMI
Slide 23: Morros Blancos (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY MORROS BLANCOS (CHILE) For personal use only 2021 Activities • Morros Blancos initial drilling program commenced at the delineated target of Rosario del Alto, the first of three prospective areas identified • Four of the five holes planned for phase 1 at the
Slide 24: Cerro Blanco (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY CERRO BLANCO (CHILE) For personal use only 2021 Activities • Geological mapping, rock sampling and ground magnetometry at the delineation stage at Cerro Blanco confirmed the few existing outcrops (<5%) relate to phreatomagmatic rocks with advanced argillic a
Slide 25: Strategic Alliance with Mexplort Perforaciones Mineras SA
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY STRATEGIC ALLIANCE WITH MEXPLORT PERFORACIONES MINERAS SA For personal use only Investment Rationale 1. Access to a potential Tier 1-2 50% earn-in agreement in the Jaguelito project plus agreement project in a mining friendly to create a 50:50 joint venture
Slide 26: Jaguelito (Argentina)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY JAGUELITO (ARGENTINA) For personal use only Objective • Develop Jaguelito as a new Tier 1or 2 project discovery in San Juan – Argentina. Overview • Jaguelito is an advanced exploration stage project in one the most endowed districts of precious metals global
Slide 27: Casposo Mine: Consolidate Minimum Inventory of Mineral Reserves
CASPOSO MINE CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART OPERATIONS For personal use only Objective • Identify a minimum of 250k Au ounces of mineral reserves in the district to relaunch mining operations 2021 Activities • The first phase of drilling was completed in 2021 with 2,8
Slide 28: Manantiales Vein Longitudinal Section
CASPOSO MINE CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART OPERATIONS For personal use only Manantiales Vein - Longitudinal Section (Looking West) Exploring for blind ore-shoots 27
Slide 29: Pinguino-Sierra Blanca Earn-in Agreement with New Dimension Resources
PINGUINO-SIERRA BLANCA OPPORTUNITY (ARGENTINA) SUMMARY OF THE EARN-IN AGREEMENT WITH NEW DIMENSION RESOURCES* For personal use only Investment Rationale 1. Expand the area of the Pinguino project by securing an OPTION TO ACQUIRE UP TO 100% additional 7,000 hectares with OF THE SIERRA BLANCA PROJECT
Slide 30: Pinguino-Sierra Blanca: Exploration to Increase Mineral Resource Base
PINGUINO-SIERRA BLANCA OPPORTUNITY EXPLORATION TO INCREASE EXISTING MINERAL RESOURCE ESTIMATE BASE For personal use only Objective • Maximize the value of the Pinguino-Sierra Blanca-Plata Leon cluster through C° Negro exploration activities Plata Leon Overview • The new cluster project is in a poten
Slide 31: Friendly Takeover of Revelo Resources
2021 M&A ACTIVITY FRIENDLY TAKEOVER OF REVELO RESOURCES For personal use only Investment Rationale 1. Acquire an attractive exploration portfolio with (i) 100% ACQUISTION OF A three projects strategically located in the CANADIAN TSXV LISTED proximity of our Guanaco/Amancaya operations, and (ii) othe
Slide 32: Adding Revelo Resources Quality Assets
2021 M&A ACTIVITY Revelo Projects ADDING REVELO RESOURCES QUALITY ASSETS Porphyry System projects acquired from Revelo Resources Chuquicamata Epithermal System projects Spence MONTEZUMA acquired from Revelo Resources For personal use only Centinela Overview Gaby • Significant ~25,000 ha land package
Slide 33: Our Business Strategy: Path for Growth
For personal use only OUR BUSINESS STRATEGY: PATH FOR GROWTH 32
Slide 34: Our Business Strategy Pillars
OUR BUSINESS STRATEGY PILLARS 2021 ACTIVITIES SET THE FOUNDATION FOR GROWTH For personal use only Exploration Exploration Strategic Equity Organic Growth Strategic Alliances Investments EXPLORE for High Sulfidation 50 -50 % AGD – Mexplort Rawhide Mine LLC in Nevada, USA. deposits in the Paleocene Be
Slide 35: Free-Cash Flow Generation Remains Key to Executing Our Strategy
FREE-CASH FLOW GENERATION REMAINS KEY TO EXECUTING OUR STRATEGY For personal use only Guanaco/Amancaya Mine Complex Casposo/Manantiales Mine Complex (Chile) (Argentina) Production plan to produce Restart mining minimum of 32K GEO per operations annum for the next 4 years Consolidate through explorat
Slide 36: Upcoming News and Developments
UPCOMING NEWS AND DEVELOPMENTS For personal use only Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2023 2023 2023 2023 Brownfield Exploration Guanaco and Amancaya “Near Mine Exploration” Drilling Program Casposo-Manantiales Drilling Program Pinguino-Sierra Blanca Project Exploration and Drilling Programs Re-s
Slide 37: Appendix
For personal use only 36 APPENDIX
Slide 38: Guanaco & Amancaya Complex
GUANACO & AMANCAYA COMPLEX For personal use only 1 Strategic location (220km from Antofagasta, Chile) with + 70K hectares of mining property 2 Guanaco, high-sulphidation epithermal deposit, and Amancaya a low sulphidation epithermal deposit, both hosted in the Paleocene/Eocene Belt - 1,500 tpd milli
Slide 39: Casposo Facilities
CASPOSO FACILITIES 2 3 For personal use only 1 On Care & Maintenance since 2019 1,500 tpd crushing 2 circuit to agitation leach and Merril-Crowe processing plant 3 Historical 2010-2019 production of 529,861 4 5 gold-equivalent ounces 4 Camp facilities 21km from mine site 5 +70K hectares of land plus
Slide 40: Summary of Mineral Resources – December 31, 2021
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 For personal use only Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco Underground Measured 581 2.61 12.67 48.7 236.6 Indicated 868 2.31 17.67 6
Slide 41: Summary of Mineral Resources – December 31, 2021 (continued)
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 For personal use only Classification Tonnes Grade Contained Metal (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Amancaya Julia and Cerro Amarillo Projects Underground Measured - - - - - Indicat
Slide 42: Mineral Resources Notes
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 For personal use only Notes: 1. Mineral Resources followed CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Resources are reported on a 100% ownership basis. 3. Mineral Resou
Slide 43: Mineral Reserves – December 31, 2021
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX MINERAL RESERVES – DECEMBER 31, 2021 For personal use only Tonnes Grades Contained Metal Category (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Underground (Amancaya) Proven 47 5.74 11.51 9 17 Probable 251 5.01 12.95 40 105 Subtotal Undergrou
Slide 44: Mineral Reserves Notes
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX MINERAL RESERVES – DECEMBER 31, 2021 For personal use only Notes: 1. Mineral Reserves follow CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Reserves are reported on a 100% ownership basis and estimated at the following cu
Slide 45: Technical Report on the Pingüino Project: Mineral Resources
TECHNICAL REPORT ON THE PINGÜINO PROJECT MINERAL RESOURCES – AUGUST 8, 2014 For personal use only Variable cut-off Grade (g/t) Grade Ounces ('000s) Pounds (000's) Tonnes (000's) Ag Eq. Ag Au Zn (%) Pb (%) Ag Ag Eq. Au Zn Pb Indicated 6,281 132.3 103.4 0.58 0.77 0.54 20,877 26,717 116.8 107,225 74,99
Slide 46: Contact
For personal use only TRANSFORMING AN ESTABLISHED GOLD PRODUCER FOCUSED ON EXPLORING FOR TIER 1 & TIER 2 PROJECTS Contact Stabro Kasaneva, CEO Jose Bordogna, CFO Info: stabro.kasaneva@australgold.com jose.bordogna@australgold.com AGD (ASX) AGLD (TSX-V)