Bear Creek Mining — BMO Global Metals & Mining Conference 2016
22 slides from Bear Creek Mining's conference presentation, February 2016
Slide 1: Bear Creek Mining Corporation
Bear Creek Mining Corporation BMO Global Metals & Mining Conference February, 2016
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Caution Regarding Forward Looking Information: This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securit
Slide 3: Key Share Data
Key Share Data SHARES AND TRADING Issued and Outstanding Shares 93.1 M Employee Stock Options (Exercise prices from Cdn.$1.41 – Cdn.$10.77) 7.8 M Fully Diluted Shares 100.9 M Average Daily Volume (last 30 days) 115,000 Share Price ($CDN) $0.90 52-week range ($CDN) $0.50 - $1.53 Market Capitalization
Slide 4: Investment Considerations
Investment Considerations • Approximately US$ 20 M cash on hand (at Q4 2015) and no debt • G&A cost-cutting ongoing to extend longevity • 2 world-class primary silver deposits in mining-friendly jurisdiction • ~450 M oz Silver in Corani and Santa Ana deposits combined; ~290 M oz in P+P Reserves • Co
Slide 5: Corani Silver-Lead-Zinc Project
Corani Silver-Lead-Zinc Project 5
Slide 6: Corani Project Highlights
Corani Project Highlights • One of the only undeveloped silver mines of its size and projected life-span in the world • Final Optimized Feasibility Study filed July 2015 (updates 2011 Feasibility Study) • Mining friendly jurisdiction • Life of mine agreements in place with very supportive local comm
Slide 7: Corani Site – Excellent Infrastructure
Corani Site – Excellent Infrastructure • Excellent infrastructure – power and water • Gov’t of Peru investing in local infrastructure • High desert, sparse population • Smaller footprint as a result of 2015 Feasibility Study 7
Slide 8: 2015 Feasibility Study Modifications and Optimizations
Corani 2015 Feasibility Study Modifications and Optimizations • Dry-stacking of tailings elimination of tailings impoundment, fresh water storage dams and most waste dumps • Revision of the mine sequencing plan • Enhanced metallurgical recovery modeling with higher confidence in recovery predictio
Slide 9: 2015 Feasibility Study Project Layout
Corani 2015 Feasibility Study Project Layout
Slide 10: 2015 Corani Feasibility Study Reserves/Resources
2015 Corani Feasibility Study Reserves/Resources Mineral Reserves Contained Metal Equivalent Ounces Category Ktonnes Silver Lead Zinc Silver Lead Zinc Eq. Eq. g/t % % Million Million Million Silver Silver oz lb lb M oz g/t Proven 19,855 69.1 1.09 0.72 44.1 478.7 313.4 82,5 129.2 Probable 117,843 48.
Slide 11: 2015 Corani Feasibility Study - Economics
2015 Corani Feasibility Study - Economics KEY ECONOMIC PARAMETERS* (dollar figures are USD) Base Case (1) Net Present Value $643 M Internal Rate of Return 20.6% Payback 3.6 years Recent Metal Prices (2) Net Present Value $52 M Internal Rate of Return 6.7% Payback 5.5 years Total Capital $664 M Initi
Slide 12: 2015 Corani Feasibility Study (cont.) - Production
2015 Corani Feasibility Study (cont.) - Production KEY PRODUCTION PARAMETERS Contained Silver (4) 228 M oz Contained Lead (4) 2,768 M lbs Contained Zinc (4) 1,784 M lbs Contained Silver Equivalent (4) 449 M oz Ag Eq. Avg. Annual Silver Production LOM 8.4 M oz/year Avg. Annual Lead Production LOM 96.
Slide 13: 2015 Corani Feasibility Study - Recoveries and Concentrates
2015 Corani Feasibility Study - Recoveries and Concentrates Variance from 2011 2015 Corani FS Corani FS Silver Recovery 71.93% +7.70% Lead Recovery 62.80% -8.30% Zinc Recovery 60.10% +8.50% Concentrate Grades Lead Concentrate Zinc Concentrate % Pb Ag g/t % Zn Ag g/t 56.6 1,978 52.9 385 (no penalty e
Slide 14: 2015 Feasibility Study Economics – Highly levered to Ag Prices
Corani 2015 Feasibility Study Economics – Highly levered to Ag Prices • Proven and probable mineral reserves of 228 million ounces of silver, 2.8 billion pounds of lead and 1.8 billion pounds of zinc • 13.4 M ounces Ag per year for the first 5 years, 8.4 M opy life of mine (18 years) • AISC of negat
Slide 15: 2015 Feasibility Study - Cash Flow after Taxes
Corani 2015 Feasibility Study - Cash Flow after Taxes $300,000 $200,000 $100,000 Dollars x 1000 $- -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Year $(100,000) $(200,000) $(300,000) $(400,000) 15
Slide 16: Economics at 5% discount rate
Corani Economics at 5% discount rate Corani NPV increases approximately $120 M for every $1 increase in silver price (with proportional increases in lead and zinc prices) 16
Slide 17: Job Creation and Tax Generation
Corani Job Creation and Tax Generation Job Creation • 2000+ jobs created during construction • 433 full time positions post construction • Training programs underway (mechanics, welding) LOM Tax, Royalty, Workers Participation and Community Agreements • Taxes - $417 Million • Royalty and Special Tax
Slide 18: Santa Ana Silver Project
Santa Ana Silver Project sec BOLIVIA www.bearcreekmining.com Bear Creek Mining Corporation 18
Slide 19: Santa Ana Arbitration
Santa Ana Arbitration Key Milestones Gov’t of Arbitration Bear Creek Replies and Hearing / Peru Action Memorial Rejoinders Witness Counter- Initiated Filed (Jan. – June Testimony Memorial (Aug. 2014) (May 2015) 2016) (Sept.2016) (Oct. 2015) • Peruvian courts have already ruled in Bear Creek’s favour
Slide 20: Santa Ana – 2010 Feasibility Study Economics
Santa Ana – 2010 Feasibility Study Economics • Low Cap Ex $70.8M ($1.49 per recovered oz.) • Low Cost, Open Pit Mining (10,000 tonnes per day) • 11 year mine life producing 47.4 million ounces of silver • Pure silver producer averaging 5.0 million ounces/year over first 6 years • NAV = $80.3 M (@5%
Slide 21: Moving Forward
Moving Forward • Continue to meet our Corani social and environmental commitments and maintain cooperative and respectful community dialogue and partnerships • Continue to de-risk Corani by securing additional permits required for eventual development • Continue Santa Ana arbitration process in orde
Slide 22: Bear Creek Mining Corporation
Bear Creek Mining Corporation Head Office Suite 1400 – 400 Burrard St. Vancouver, BC, Canada V6C 3A6 Tel: 604-685-6269 Field Office Av. Republica de Panamá3505 – Piso 6 San Isidro, Lima, Peru Tel: 511-222-0922 / 222-0854 www.bearcreekmining.com info@bearcreekmining.com 22
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