Bear Creek Mining — Investor Presentation (January 2017)
23 slides from Bear Creek Mining's investor presentation, January 2017
Slide 1: Bear Creek Mining Corporation
Bear Creek Mining Corporation January, 2017
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Caution Regarding Forward Looking Information: This document contains forward-looking statements or forward-looking information under applicable Canadian securities laws (hereinafter collectively referred to as “forward-looking statements”) c
Slide 3: Key Share Data
Key Share Data SHARES AND TRADING Issued and Outstanding Shares 103.1 M Employee Stock Options (Exercise prices from CDN $1.41 – $4.01) 5.5 M Fully Diluted Shares 108.6 M Average Daily Volume (last 30 days) 150,000 Share Price ($CDN) $2.90 52-week range ($CDN) $0.50 - $3.77 Market Capitalization ($C
Slide 4: Investment Considerations
Investment Considerations • Bear Creek is a leading Peru-focused silver exploration and development company • Corani Project is one of the largest undeveloped silver deposits in the world: ~230 M oz Silver, 1.8 B lbs Zinc and 2.8 B lbs Lead in P&P Reserves • Highly leveraged to increased metal price
Slide 5: Share Performance
Share Performance Historic Chart for Cdn:BCM by Stockwatch.com 604.687.1500 - (c) 2017 Tue Jan 24 2017_Op=2.90_Hi=2.91 Lo=2.84 Cl=2.89 Vol=49,719 Year hi=3.7_lo=0.52 Cdn:BCM 420 4.00 3.80 3.60 3.40 3.20 3.00 wi i i 2.60 if 2.40 2.20 wll at 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 fan_Feb Mar Apr May
Slide 6: Bear Creek Mining Leverage to Higher Metal Prices
Bear Creek Mining Leverage to Higher Metal Prices Source: BMO Capital Markets “Silver: State of the Sector” August 23, 2016 6
Slide 7: Corani Silver-Lead-Zinc Project
Corani Silver-Lead-Zinc Project 7
Slide 8: 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 • Mining friendly jurisdiction • Life of mine agreements in place with very supportive local communities • ESIA approved by MEM –
Slide 9: 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 9
Slide 10: 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 11: 2015 Feasibility Study Project Layout
Corani 2015 Feasibility Study Project Layout
Slide 12: 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 13: 2015 Corani Feasibility Study - Economics
2015 Corani Feasibility Study - Economics KEY ECONOMIC PARAMETERS* (dollar figures are USD) @Base Case Metal Prices (1) Net Present Value $643 M Internal Rate of Return 20.6% Payback 3.6 years Total Capital $664 M Initial Capital $625 M Sustaining Capital $39 M AISC (2) per oz Silver (by-product bas
Slide 14: 2015 Corani Feasibility Study (cont.) - Production
2015 Corani Feasibility Study (cont.) - Production KEY PRODUCTION PARAMETERS Contained Silver (3) 228 M oz Contained Lead (3) 2,768 M lbs Contained Zinc (3) 1,784 M lbs Avg. Annual Silver Production LOM 8.4 M oz/year Avg. Annual Lead Production LOM 96.6 M lb/year Avg. Annual Zinc Production LOM 59.6
Slide 15: 2015 Corani Feasibility Study - Recoveries and Concentrates
2015 Corani Feasibility Study - Recoveries and Concentrates 2015 Corani FS Silver Recovery 71.93% Lead Recovery 62.80% Zinc Recovery 60.10% Concentrate Grades Lead Concentrate Zinc Concentrate % Pb Ag g/t % Zn Ag g/t 56.6 1,978 52.9 385 (no penalty elements) Corani will produce clean, high quality c
Slide 16: 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) 16
Slide 17: Economics at 5% discount rate
Corani Economics at 5% discount rate Every $1 increase in silver price* = ~$120 million increase in NPV and ~2% increase in IRR *+$0.05 increases in zinc and lead price 17
Slide 18: Milestones Completed and Next Steps
Corani Milestones • Final feasibility study filed ESIA approved Completed • • LOM Agreements in place • Social Licence established • Surface rights purchased • Funding in place to carry project through to development decision • Development pathway underway: completing Phase 1 Detailed Engineering; N
Slide 19: Santa Ana Silver Project
Santa Ana Silver Project ec BOLIVIA www.bearcreekmining.com Bear Creek Mining Corporation 19
Slide 20: IRR – Sensitivity to CapEx Offsets
Corani IRR – Sensitivity to CapEx Offsets Corani Project ‐ IRR Sensitivity to Capex Reduction 30% 28% 26% 24% Corani Project IRR (%) 22% 20% 18% 16% 14% 12% 10% $0 $50 $100 $150 $200 $250 Possible Corani CapEx Reduction from Theoretical Proceeds of Santa Ana Settlement (US$) Paradigm Capital "Base C
Slide 21: Santa Ana Arbitration
Santa Ana Arbitration Key Arbitration Milestones Arbitration Bear Creek Peru Replies and Hearing / Tribunal Action Memorial Counter- Rejoinders Witness Decision Initiated Filed Memorial (Jan. – May Testimony (Aug. 2014) (May 2015) (Oct. 2015) 2016) (Sept.2016) (H2 2017?) • Key written and oral testi
Slide 22: Moving Forward
Moving Forward • Complete Corani Phase 1 Detailed Engineering • Undertake pre-construction and infrastructure initiatives at Corani • Nurture community relationships and meet social commitments • Further de-risk Corani by securing additional permits required for eventual development • Apply for Cora
Slide 23: 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 23
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