Lachlan Star Limited · ASX:LSA
Lachlan Star — Investor Presentation (May 2014)
20 slides from Lachlan Star's investor presentation, May 15, 2014
Slide 1: Corporate Presentation May 2014
ASX : LSA TSX : LSA For personal use only Corporate Presentation May 2014
Slide 2: Disclaimer
Disclaimer For personal use only This Document is not a Prospectus nor an Offer to Subscribe for Shares. Lachlan Star and its subsidiaries (“LSA”) makes no representation or warranty (express or implied) as to the accuracy , reliability or completeness of this document. LSA and its respective direct
Slide 3: Corporate Information
Corporate Information For personal use only Capital Structure - 9 May 2014 Share Price Performance – Last Twelve Months LSA (TSX-V, ASX) C$0.16 /share Shares Outstanding (mm) 147.3 2.0 $0.50 Market Capitilisation (C$mm) $23.57 1.5 $0.40 Cash (C$mm)* $2.32 Volume (mm) Debt (C$mm)* $21.59 Share Price
Slide 4: Experienced Management Team
Experienced Management Team Local Management team with extensive mining and South American experience For personal use only Board of Directors Management Scott Perry Toronto based accountant with over 16 years Bira De Oliveira Engineer with qualifications in Mining Engineering, Non- experience in th
Slide 5: Corporate Strategy Overview
Corporate Strategy Overview For personal use only § High total cash operating cost - >US$2,000/Oz Past: § Low production profile - 40,000 Au Oz pa Sub optimum § Contracted mining operation, low productivities and low efficiencies § Crushing & stacking delivering 10,000 tpd operations § Low gold
Slide 6: CMD Operations - Overview
CMD Operations - Overview v Established mine with long history in highly prospective area at For personal use only v Located in Andacollo ~350km north of Santiago 1,000m elevation and 1 hour drive on a sealed road from La Serena v Produced 1mm+ ounces of gold since 1995 v Proven track record of
Slide 7: Mineral Resource and Reserves
Mineral Resource and Reserves For personal use only v Updated NI 43-101 Technical Report announced 28 August 2013 CMD Gold Mine Summary of Mineral Resources depleted for mining as at 1 March 2013 v New Probable mineral reserve is a 160% increase in Resource Lower Cut-off Tonnes Grade Metal Deposit
Slide 8: CMD Exploration Potential
CMD Exploration Potential v CMD Gold Mine hosts a strongly mineralised package of For personal use only rocks 4km long by 2 km wide immediately adjacent to a Teck’s operating Carmen Andacollo Cu-Au mine v Almost all drilling to date has been around mined pits that had surface expression with limit
Slide 9: Underground Project: Exploring an untapped potential
Underground Project: Exploring an untapped potential Veta Toro Underground Mine Portal For personal use only v Andacollo was one of the first major gold camps in Chile and over the past centuries produced gold from over 100 veins and placer deposits downstream from the camp v Additional high grade
Slide 10: Where we are: Lachlan Star Positioning
Where we are: Lachlan Star Positioning P/NAV 2013-2015 Production Growth For personal use only 100% 70.2% 1.00x 0.90x 75% 0.82x 0.81x 0.71x 0.75x 50% 33.3% 0.53x 30.2% 0.48x 0.44x 0.50x 25% 12.6% 0.25x 3.5% (3.2%) (21.1%) (37.3%) 0.23x 0.25x 0% 0.00x -25% Alacer Gold Silvercrest Mines Timmins Gold A
Slide 11: Sustainable Production Performance & Effective Cost Management
Where we are: Sustainable Production Performance & Effective Cost Management Sustainable Production Performance For personal use only Increased v Better mine production scheduling Ounces Produc<on (Oz) ounces mined v Improved mining fleet performance 12,000 10,000 Increased v Higher ore availabil
Slide 12: 2014/2013 Metrics: Continuous Improvement
2014/2013 Metrics: Continuous Improvement v CMD Gold Mine C1 Cash Cost has decreased over the last five quarters For personal use only v Combination of reduced waste:ore ratio, higher gold production and reduced unit rates has resulted in major improvements in the financial metrics v Waste to ore
Slide 13: Where we are going
Where we are going For personal use only CMD operaDons have been reengineered for a significant opDmizaDon and are now operaDng close to break-‐even with full leverage to gold price. v Improve further the gold production profile to surpass 100,000 ounces per year within next 2 years v Focus on mai
Slide 14: Projects to Add Extra Margin
Projects to Add Extra Margin v Purchasing of mineralised material from third party suppliers has For personal use only Third party Mineralised Material increased since February 2013 Tonnes$ 90,000# Third$Party$Mineral$Purchases$ 2,220$ 2,098$ Grade$(g/t)$ 1.00# Trucks Weighing 1,987$ 80,000# 1,761$
Slide 15: Investment Overview
Investment Overview 100% interest in a major gold project (CMD Gold Mine) in a politically stable country (Chile) For personal use only Unhedged gold production operating at 70,000 - 75,000 ounces Au Equivalent per annum run rate Total resource of 3.32 million ounces of Gold (depleted at 1 March 201
Slide 16: Appendixes
APPENDIXES For personal use only v Operating and Financial Results v Bushranger Project v Comparables Table v Competent / Qualified Persons, Statement and Notes LACHLAN STAR LIMITED 16
Slide 17: Operating and Financial Results
Operating and Financial Results For personal use only March '13 June '13 Sep '13 Dec '13 March '14 Item Unit Quarter Quarter Quarter Quarter Quarter Ore Mined dmt 1,338,000 1,139,766 1,361,605 1,388,565 1,324,830 Ore Grade Mined Au g/t 0.49 0.58 0.56 0.60 0.58 Waste : Ore Ratio t:t 2.70 2.49 2.24 1.
Slide 18: Bushranger Project
Bushranger Project For personal use only v Lachlan own 100% interest in the Bushranger exploration-stage Bushranger Resource Summary (October 2011) copper and gold deposit Tonnes Grade Contained Metal (Mt) (Cu %) (Tonnes Cu) v Located ~25km south of Oberon within the highly prospective Indicated 2
Slide 19: Comparables Table
Comparables Table For personal use only 2P MI&I % of 52 Mkt Cap EV P/NAV EV/2P Reserves EV/MI+I Resources Production (000 oz AuEq) Cash Costs (US$/oz) Company Name Week High (US$mm) (US$mm) (Current) (US$/oz) (mm oz Au Eq) (US$/oz) (mm oz Au Eq) 2013A 2014E 2015E 2013A JUNIOR PRECIOUS METAL PRODUCER
Slide 20: Competent / Qualified Persons, Statement and Notes
Competent / Qualified Persons, Statement and Notes For personal use only “The information in this presentation that relates to Mineral Resources and Mineral Reserves of the CMD Gold Mine is extracted from the report entitled CMD Gold Mine, Andacollo, Chile Technical Report announced to ASX on 28 Aug