St. Augustine Gold & Copper Ltd. · TSX:SAU
St. Augustine Gold & Copper — Investor Presentation (March 2016)
29 slides from St. Augustine Gold & Copper's investor presentation, Mar 28, 2016
Slide 1: St. Augustine: Advancing King-king
St. Augustine: Advancing King-king Investor Presentation March 2016 TSX: SAU 28 March 2016 www.sagcmining.com
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” that were based on St. Augustine Gold & Copper Ltd’s expectations, estimates and projections as of the dates which those statements were made. These forward-looking statements include, among other things, statements w
Slide 3: Investment highlights
Investment highlights $1.8B NPV › King-king delivers size, robust economics* and upside potential 8% › Project is permit ready and a smaller stage 1 Project is being pursued to accelerate development 4.1B lbs Cu / 7.8M oz Au › Project supported by strong management, local partners and nearby infrast
Slide 4: The Philippines – Open for business
The Philippines – Open for business › Mining sector valued at $1.4 trillion 36 › 2nd largest global gold endowment › 4th largest global copper endowment › Improved regulatory landscape mines in operation › Country rated as “Investment Grade” by: › Fitch › Standard & Poor’s › Moody’s Country is posit
Slide 5: Mindanao is home to Philippine mining boom
Mindanao is home to Philippine mining boom N 56% of country’s operating BOHOL SEA MINDANAO PHILIPPINE SEA mines are in Mindanao KING- Davao KING Mindanao is home to: Davao Gulf › Philippine Top-3 Major Mining Projects: Philippines › King-king South Philippine Sea China › Silangan Sea › Tampakan › 66
Slide 6: King-king
King-king One of the world’s largest greenfield copper projects › 4.1 billion lbs of copper 618Mt › 7.8 million ounces of gold reserve › 23-year mine life Defined by +100,000 meters of drilling TSX: SAU 28 March 2016 www.sagcmining.com 6
Slide 7: King-king is strategically located
King-king is strategically located Siana Gold Silangan › Located along heavily TVI Agata Taganito Nickle mineralized Eastern Mindanao Ridge › Proximity to tidewater Co-O Medusa port & power facility Diwalwal › Located near major Apex Gold city centers King king Tampakan 28 March 2016 TSX: SAU www.sa
Slide 8: King-king in close proximity to:
King-king in close proximity to: › Davao City › One of the fastest-growing cities in all of South-East Asia › 1.5M people › Modern infrastructure › Skilled workforce › Named safest city in the Philippines › Less than 80km away by road TSX: SAU 28 March 2016 www.sagcmining.com 8
Slide 9: King-king has robust economics
King-king has robust economics* $1.8B NPV8% after tax over 23-year LOM 24.0% $15.4B IRR after tax life of mine revenue 2.4-year Payback period Payback driven by higher grades and heap leach production in earlier years * Based on November 2013 PFS; all figures in USD, metal price assumptions: gold =
Slide 10: King-king is low-cost
King-king is low-cost Unit Costs ($/lb Cu) LOM Mining Processing $0.80 $1.06 $2.57/lb Total operating costs LOM Operating costs $1.86 per pound copper produced G&A $0.25 Reclamation & closure $0.02 Cash costs at mine $2.13 Government fees $0.25 Total cash costs at mine $2.38 Shipping, smelting and r
Slide 11: King-king is permit-ready
King-king is permit-ready Signed Memorandum Received Environmental of Agreement with Compliance Certification Mansaka Indigenous in Q1 2015 Peoples in Q2 2015 › Declaration of Mining Project Feasibility permit approved in Dec 2015 › Certification Precondition received in Jan 2016 Advancing towards d
Slide 12: King-king mine plan
King-king mine plan › Designed for integrated mine plan › Conventional open pit › Heap leach / SXEW and sulfide flotation processing › LOM strip ratio 1.1: 1 Smaller-scale mine non-public internal PEA completed 28 March 2016 TSX: SAU www.sagcmining.com | 12
Slide 13: King-king's expected revenue streams
King-king’s expected revenue streams Total Project Revenue Total Project Revenue By Metal By Product Concentrate Copper Copper Cathode Gold Gold Bullion Silver Combination of metals provides natural hedge TSX: SAU 28 March 2016 www.sagcmining.com 13
Slide 14: Copper production schedule
Copper production schedule 3.16Blbs Copper in Concentrate 70,000 52.3Kt p.a. 115 million lbs p.a. Copper production in Years 1 - 5 1.43Mt 60,000 50,000 LOM copper production 40,000 30,000 20,000 10,000 Multiple 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 product Copper Cathode P
Slide 15: Gold production schedule
Gold production schedule 5.43Moz 213Koz p.a. Gold in Concentrate Production 6,611kg p.a. Gold production over LOM 168,950kg 450,000 400,000 350,000 LOM gold production 300,000 250,000 200,000 150,000 100,000 50,000 Multiple 0 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 product Gol
Slide 16: Big projects require CAPEX
Big projects require CAPEX Capital Costs Capital Intensity* / Tonne $25,000 Initial Capital $131M Process Plant $1,005M $19,400 $20,000 Power Plant $350M $15,000 Port $119M $10,895 Owner’s Cost $197M $10,000 Contingencies $240M $5,000 Total CAPEX $2.04B $0 Sustaining Capital $248M King-King Avg Gree
Slide 17: King-king's costs measure favorably
King-king’s costs measure favorably $40,000 $35,000 Capital Intensity (US$/t Cu Eq) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Sentinel Rio Tinto King-king Toromocho Pumpkin Sierra Gorda Constancia Las Bambas Cobre Casarones Hollow Panama Capital Intensity* Source: Morgan-Stanley – December 3
Slide 18: King-king – location provides flexibility of development
King-king – location provides flexibility of development › Minimal infrastructural requirements allow for staged development › Targeting high grade prospects for Stage 1 › Substantially reduced upfront capex requirements for Stage 1 of the project will provide: › A small “standalone” project › Conti
Slide 19: King-king has upside potential
King-king has upside potential Testing confirms Au assays @ 2.2-27.7/g/t Au* Notable intercept with 81 continuous meters averaging: .44% total copper and .34 g/t gold* 5 additional holes demonstrate high potential in the 1, 656 hectare tenement area *Refer to the press release dated March 1, 2012 fo
Slide 20: Leadership team
Leadership team BOARD OF DIRECTORS MANAGEMENT Manuel Paolo A. Villar, Chairman Manuel Paolo A. Villar, President and Chief Executive Officer Current Director, President and Chief Executive Officer of Vista Land and (Refer to Board of Directors column) Lifescapes, Inc., Director of Starmall, Inc. For
Slide 21: Capital structure
Capital structure St. Augustine Investor Base SAU Recent Share Price * $0.105 52-Week Performance $0.07 - $0.17 Other 17% Shares Outstanding ~726.8M Retail 31% Average Daily Volume 26,600 Market Capitalization $76.3M Cash Position $3.2M Institutions 52% Queensberry Mining – 40% Russell Mining – 16.4
Slide 22: Project timeline
Project timeline 2010 2011 2012 2013 2014 Oct. Jun. Aug. St. Augustine / St. Augustine / Total drilling SAU King-king Queensberry Coastal Nadecor JV Benguet exceeds 300 Project PFS Mining Complex land formed settlement, DD DDH and completed assumes 40% position Drilling +100,000m SAU interest purcha
Slide 23: Appendix
Appendix TSX: SAU 28 March 2016 www.sagcmining.com 23
Slide 24: Copper fundamentals
Copper fundamentals Annual Global Copper Growth 3.6% annual average growth in global copper demand 21.4Mt 2014E global copper demand 16Mt Forecast increase in copper demand in 2030 if growth continues in China at 6%, ROW 0% Global demand tied to growth 2011 2012 2013 2014F 2015F 2016F 2017F 2018F in
Slide 25: Projected long-term copper supply deficit
Projected long-term copper supply deficit 3.8Mt Copper Supply vs. Demand (Mt) with consideration for brownfield expansion Copper supply gap 26 3.8Mtpa incremental capacity required by 2023 Mine closures and limited Demand for Mine Output investment into greenfield 22 projects creates no Probable Bro
Slide 26: Proven and probable reserves
Proven and probable reserves Ktonnes Tot Cu (%) Sol Cu (%) Gold (g/t) NSR (US$) Proven Mineral Reserve Heap Leach Ore 17,791 0.340 0.197 0.132 16.53 Oxide Mill Ore 21,674 0.514 0.328 0.849 45.36 Sulfide Mill Ore 52,942 0.305 0.044 0.543 24.92 Low Grade Mill Ore 6,734 0.184 0.027 0.218 10.80 Total Pr
Slide 27: Measured & indicated resource
Measured & indicated resource* Resource Tot Cu Sol Cu Gold Ore Type/Resource Class Ktonnes (%) (%) (g/t) Copper Leach Resource Measured Resource 20,961 0.439 0.317 0.205 Indicated Resource 75,214 0.347 0.228 0.155 Meas/Ind Resource 96,175 0.367 0.247 0.166 Inferred Resource 26,027 0.266 0.157 0.093
Slide 28: Process flow sheet
Process flow sheet TSX: SAU 28 March 2016 www.sagcmining.com 28
Slide 29: The Philippines' priority mineral projects
The Philippines’ priority mineral projects Batong Buhay Gold Project (NRMDC) Teresa Gold Project Far Southeast Gold Project (Lepanto Consolidated Mining Company) (Lepanto Consolidated Mining Company) Itogon Gold Project Didipio Copper-Gold Project (Itogon-Suyoc Mines) (Australasian Philippines Minin
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