Artemis Gold Inc · TSXV:ARTG
Artemis Gold — Investor Presentation (May 2023)
34 slides from Artemis Gold's investor presentation, May 2023
Slide 1: Disciplined Development of the Blackwater Gold Project in B.C.
TSX-V: ARTG | artemisgoldinc.com Disciplined Development of the Blackwater Gold Project in B.C. May 2023
Slide 2: Forward Looking & Cautionary Statements
Forward Looking & Cautionary Statements This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws (together, “forward-looking statements”). Forward-looking statements can generally be identi
Slide 3: Why Artemis Gold?
Why Artemis Gold? One of the Largest Gold Projects in Canada Board and Management Alignment With Shareholders BLACKWATER PROJECT NEW 100% BC CANADA TIER 1 $201m GOLD MINE Board & Management Owns YEARS 1-17: Average Production Invested 38%F/D 8 GOLD RESERVES1 >400,000 Since Million August 2020 ounces
Slide 4: Management Team
Management Team Steven Dean Jeremy Langford Chairman & Chief Executive Officer President & Chief Operating Officer Steven Dean has extensive experience internationally in mining, Jeremy Langford has multi mine gold producer experience including as President of Teck Cominco Limited (now Teck Resource
Slide 5: Value Creation Through Derisking and Execution
Value Creation Through Derisking and Execution Atlantic Gold (2014 – 2019) Predecessor to Artemis Gold Acquisition to Production in 3 years +1,129% return to shareholders GDXJ Index down 29% during the same period Artemis Gold (2020 – Current) Acquired Blackwater in August 2020 Targeting Constructio
Slide 6: Blackwater Mine: Located in Central B.C.
Blackwater Mine: Located in Central B.C. Moderate Climate, Year-Round Access 6
Slide 7: Derisking Blackwater One Catalyst At A Time
Derisking Blackwater One Catalyst At A Time $171m equity offering (Q2/21) $318m Final Process Plant EPC Contract Executed with Sedgman (Q3/22) Nazko IBA (Q2/21) $175m Equity Financing (Q3/22) Receipt of Early Works Permit (Q3/21) Construction & mining fleet ordered Blackwater 2021 Definitive Feasibi
Slide 8: BC Mines Act Permit
BC Mines Act Permit PERMIT MAJOR WORKS APPROVED CONSTRUCTION Q1 2023 BC Mines Act Permit As Expected Approved Q1 2023 8
Slide 9: Preparations for Major Works Construction
Preparations for Major Works Construction Management Team Construction Plant Site Area Construction Preferred Construction In Place to Support Fleet Preparations on Camp Installation Support Contractors Construction Ordered Schedule on Schedule Selected MAJOR WORKS CONSTRUCTION Q1 2023 9
Slide 10: The Canadian Advantage
The Canadian Advantage Currency movements have benefited Canadian assets more than US or European assets EURO GOLD US GOLD CAD GOLD +4.2% Euro Gold is up 4.2% since +9.4% US$ Gold is up 4.1% +17.1% CAD Gold is up 17.1%! the beginning of 2022 since the beginning of since the beginning of 2022 2022 As
Slide 11: Blackwater Site Preparation Near Completion
Blackwater Site Preparation Near Completion Site Preparation Works On Schedule to Be Completed Before Start of Major Works in Q1 2023 Preparing the plant site for a Q1 2023 construction start On track to increase on-site capacity to 477 personnel Source: Artemis Gold Inc. Source: Artemis Gold Inc. F
Slide 12: Blackwater Project 2021 Feasibility Study Summary
Blackwater Project 2021 Feasibility Study Summary After accounting for the gold stream to Wheaton* Gold Price – US$1,600/oz Phase 1 Phase 2 Phase 3 Phase 44 LOM Years 1-5 6-10 11-17 18-22 22 years Initial/Expansion Capex $645m $347m $374m Nil $1,418m Sustaining Capex1 $286m $250m $256m $39m $831m Ye
Slide 13: Phase 1 Funding De-risked for Q1 2023 Construction Start
Phase 1 Funding De-risked for Q1 2023 Construction Start Substantial funding secured to advance Blackwater Cash balance of: Silver Stream: Project Loan Facility (PLF): $230 million US$141 million $360 million+ (October 31, 2022) (~$191 million*) $25 million (capitalized interest) Artemis has secured
Slide 14: Differentiators: Why Is Blackwater Different?
Differentiators: Why Is Blackwater Different? Mitigating risk and inflationary pressures during construction LOW STRIP RATIO VALLEY FILL DOWNHILL LOADED HAUL AND PRE-STRIP: TSF DESIGN: FROM PIT TO PLANT TO TSF: LOM Strip • Phase 1: Single 300m retention wall required (Dam C) Lower Diesel ratio of ~2
Slide 15: Differentiators: What Does Artemis Do Differently?
Differentiators: What Does Artemis Do Differently? Fixed Price EPC Contracts OUR BIGGEST Grade Control Drilling D I F F E R E N T I AT O R : • Shifts risk to Management • 16x more data contractor than diamond • Forces discipline Track Record drilling before construction • Improved mine • Targeting ~
Slide 16: Labour – Local Context
Labour – Local Context Training Local WIND DOWN OF INDUSTRY Major Projects Forestry Downturn 30%+ 30%+ INDIGENOUS WORKFORCE FEMALE WORKFORCE 16
Slide 17: Best in Class ESG
Best in Class ESG Gender diverse board with Federal & Provincial Completion of ESG Gap Established Board Health, 50% female non-executive EA approvals and analysis for compliance with Safety, Environment and Social members with ESG experience BC Mines Act Permit IFC Standards & EP4 Performance Commi
Slide 18: Bringing Generational Change to Indigenous & Local Communities
Bringing Generational Change to Indigenous & Local Communities Artemis acknowledges that the Blackwater Mine site is located within the traditional territories of the Lhoosk’uz Dené Nation and Ulkatcho First Nation “ A R T E M I S H A S I M PA C T The Health, Safety, Environment and Social BENEFITS
Slide 19: Mining Fleet Pricing, Supply & Financing Secured With Path to Decarbonization
Mining Fleet Pricing, Supply & Financing Secured With Path to Decarbonization Finning International Inc. Mining Fleet Supply Agreement • Secures Fleet Pricing to December 31, 2024 • Delivery dates for primary and ancillary fleet supports start of major development in Q1 2023 Caterpillar Financial Se
Slide 20: Low Carbon Emission Intensity Advantage
Low Carbon Emission Intensity Advantage: Targeting a Carbon Neutral Operation in 2029 Opportunity to become one of the lowest carbon footprint gold mines in the world BC’s Hydro-electric power is a reliable, low cost, low carbon source of electricity The 2021 Updated Feasibility Study includes one o
Slide 21: Blackwater's Long-term Value Optionality
Blackwater’s Long-term Value Optionality Gold Price - US$1600/oz Au, USD/CAD Exchange Rate 0.79 Blackwater Gold Production and AISC Notes: FCF = Operating Cash Flow – Sustaining Capex (includes Closure Costs) – Cash Taxes (Excludes Expansion/Growth Capital)Exp. Capex = Expansion Capital, AISC = All-
Slide 22: Exploration Potential: Open to the North, Northwest and at Depth
Exploration Potential: Open to the North, Northwest and at Depth Already a 22-year reserve life Long-term exploration upside potential remains substantial Open to the North Open to the Northwest Open at depth in the South 1,500 km2 largely under- explored land package 22
Slide 23: Gold Price Resource Upside
Gold Price Resource Upside Current reserves based on a Purple Surface – Reserve pit shell (US$1,400/oz Au) US$1,400/oz gold price pit shell At US$2,000/oz gold price, the pit shell potentially expands ADDITIONAL RESOURCE IN US$2,000/OZ GOLD PRICE Tonnes AuEq AuEq Category (Mt) (g/t) Moz Resource Pit
Slide 24: Blackwater: Bottom Quartile AISC
Blackwater: Bottom Quartile AISC 2023E CO-PDT AISC (US$/OZ AU EQ.) – JUNIOR PEER GROUP $1,750 $1,703 $1,654 $1,529 $1,443 $1,330 $1,252 Median: US$1,252/oz Au Eq. $1,091 $1,036 $967 $949 $809 $798 $672 Artemis Galiano Resolute Orla Ramelius Road Perseus Mandalay McEwen Victoria Superior Wesdome Argo
Slide 25: P/NAV – Selected Developers
P/NAV – Selected Developers Artemis is trading at 0.44x P/NAV compared with the average developer value of 0.44x P/NAV P/NAV (RATIO) (1,2,3) Intermediate Producer Median: 0.81x 0.58x Developer in Construction Median: 0.46x 0.52x 0.47x 0.44x 0.44x Developer Median: 0.44x 0.44x 0.43x 0.40x 0.30x 0.20x
Slide 26: Steady Stream of Catalysts for Artemis Gold
Steady Stream of Catalysts for Artemis Gold $171m Equity Offering $140m Mining Fleet Lease & Supply $318m Process Plant EPC BC Early Works Permit Agreement executed with Sedgman $385m PLF finalized Wheaton’s $175m Equity First Gold US$141m Silver Offering Pour Stream Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3
Slide 27: Capital Structure
Capital Structure C A P I TA L S T R U C T U R E ( A S O F F E B R U A RY 2 2 , 2 0 2 3 ) Ownership, Fully Diluted Issued & Outstanding Shares (M) 193 Options (M) 10 Warrants (M) 31 38% 49% Fully Diluted Shares O/S (M) 233 Board and Management Share Price (CAD$) $4.57 13% Retail/HNW Market Capitaliz
Slide 28: Want to know more about Artemis Gold?
TSX-V: ARTG | artemisgoldinc.com Want to know more about Artemis Gold? Follow or Like our social channels to stay up-to-date CONTACT US LinkedIn Artemis Gold Inc. linkedin.com/company/artemis-gold TEL: 604.588.1107 Twitter info@artemisgold.inc.com twitter.com/artemisgoldinc 3083 595 Burrard Street F
Slide 29: Appendix I: Mineral Resource Estimate for Blackwater
Appendix I: Mineral Resource Estimate for Blackwater Measured & Indicated Mineral Resource Estimate (Effective May 5, 2020) Grades Metal Cutoff Tonnage AuEq Au Ag AuEq Au Ag Classification (AuEq (ktonnes) (g/t) (g/t) (g/t) (koz) (koz) (koz) Notes: g/t) 0.20 427,123 0.68 0.65 5.5 9,360 8,905 75,802 1
Slide 30: Appendix II: Mineral Reserve Estimate for Blackwater
Appendix II: Mineral Reserve Estimate for Blackwater Proven & Probable Mineral Reserve Estimate (Effective August 18, 2020) Notes: 1. The Mineral Reserve estimates were prepared by Marc Schulte, P.Eng., an MMTS employee, and have an effective date of September 10, 2021. 2. Mineral Reserves are repor
Slide 31: Appendix III: What Historically Has Gone Wrong With Development Projects?
Appendix III: What Historically Has Gone Wrong With Development Projects? • Project development in the mining sector can be done successfully. • Understanding The Primary Causes of the specific Capital Costcauses of how project execution can go wrong and what can drive Overruns costs higher is integ
Slide 32: Appendix IV: Wheaton Silver Stream Financing
Appendix IV: Wheaton Silver Stream Financing Wheaton Precious Metals has acquired a silver stream on the Blackwater project over the life of mine under the following offer terms: • Up front payment of US$141 million • 50% of the silver produced from the Blackwater Project over the life of mine, drop
Slide 33: Appendix V: Final Process Plant EPC Contract Executed
Appendix V: Final Process Plant EPC Contract Executed Fixed Price Process Plant EPC contract Executed with Sedgman Canada Limited for $318 Million Final EPC price Includes: • Procurement/pricing of long lead equipment; • Secures labour supply and pricing for construction • Further detailed engineeri
Slide 34: Appendix VI: Analyst Coverage
Appendix VI: Analyst Coverage INSTITUTION ANALYST EMAIL BMO Capital Markets Andrew Mikitchook andrew.mikitchook@bmo.com Canaccord Genuity Michael Fairbairn mfairbairn@cgf.com CIBC Capital Markets Anita Soni Anita.soni@cibc.com Cormark Securities Richard Gray rgray@cormark.com Haywood Securities Pier