China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — FY2017 Earnings Presentation
22 slides from China Gold International Resources's earnings presentation, April 2018
Slide 1: Sustainable Profitability and Growth
Sustainable Profitability and Growth TSX: CGG | SEHK: 2099 FY 2017 Results April 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking stateme
Slide 3: Why Invest in China Gold International
1 UNIQUE CORPORATE MODEL Strong support from controlling shareholder: China National Gold Group Co.,Ltd. Why Invest in China Gold 2 RAPID GROWTH，CONSISTENT PROFITABILITY 10th year of increasing production，10 years of consistent operational profitability International 3 EFFECTIVE COST MANAGEMENT Cont
Slide 4: Capital Structure
Capital Structure MAJOR SHAREHOLDERS1 China National Gold Group Co.,Ltd., the largest gold producer in China, owns 39.30% of China Gold International LISTINGS 39.3% China National Gold Group Co.,Ltd. TSX: CGG HK Stock Exchange: 2099 4.33% Van Eck Associates Corp. 2.41% Dimensional Fund Advisors 1.39
Slide 5: 2017 Production Overview
Company Operating Highlights 2017 Production Overview Gold • Company’s consolidated gold production of 234,667 ounces exceeded previously announced annual production guidance by 7% • Gold production of 47,710 ounces from the Jiama Copper-Gold Polymetallic Mine increase 82% compared to 2016 • Gold pr
Slide 6: 2017 Financial Highlights
Company Operating Highlights (cont’d) 2017 Financial Highlights Year Ended Year Ended December 31, 2017 December 31, 2016 Revenues (MM USD) $412 $339 • Revenue increased to US$ 412 Mine operating earning (MM US$) $117 $56.2 million (increased by 22% ) Net Profit (MM US$) $64.3 $(12.3) Net Operating
Slide 7: Excellent Operational Track Record
Company Operating Highlights (cont’d) Excellent CGG REVENUES FROM 2008-2017 (US$MM) Operational Track Record 311 332 303 278 340 339 412 133 81 29 Maintain profitability 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 and increase production COMBINED GOLD PRODUCTION COPPER PRODUCTION FROM JIAMA CS
Slide 8: Jiama Polymetallic Mine
Company Assets and Prospect Jiama Polymetallic Mine One of China’s largest Polymetallic Mines COMMODITIES Copper, Gold, Silver, Zinc, Lead and Molybdenum LOCATION 68 km NE of Lhasa, Tibet MINE OPERATION Open pit and underground PROCESSING CAPACITY increasing to 50,000tpd when phase II expansion comp
Slide 9: Jiama Mine Mineral Resources and Reserves
Company Assets and Prospect (cont’d) Jiama Mine Mineral Resources and Reserves JIAMA RESOURCES Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Resources (Mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt) (Moz) (Moz) (kt) (kt) Measured 96.3 0.39 0.04 0.08 5.62 0.04 0.02 381 35 0.26 17.46 42 22
Slide 10: Major Milestone at Jiama Mine
Company Assets and Prospect (cont’d) Major Milestone at Jiama Mine • Commercial production reached at Jiama Mine’s Phase II, Series I expansion effective December 31, 2017. Commercial • Ore processing capacity at the Jiama Mine has been increased to production on 28,000 tpd (previously 6,000 tpd). S
Slide 11: CSH Gold Mine
Company Assets and Prospect (cont’d) CSH Gold Mine • Well-established infrastructure with excellent access to roads and sufficient supplies of power, water and One of China’s largest gold local labor mines • Ore processing capacity of 60,000 tpd COMMODITIES Gold dore with • Open pit re-design for op
Slide 12: Supported by China's Largest Gold Producer
Company Strength and Strategy Supported by About China National Gold Group China’s Largest Co.,Ltd. (CNG) Gold Producer Largest gold mining company in China 39.3% A diversified mining company with a China National Gold whole industrial chain model Group Co.,Ltd. owns 39.3% of China Gold Internationa
Slide 13: Investment Grade Rating
Company Strength and Strategy (cont’d) Investment Grade Rating China Gold International’s China National Gold Group Rating Co.,Ltd. ’s Rating BBB- BBB 13
Slide 14: Superior Financing Capability
Company Strength and Strategy (cont’d) Superior Financing Capability US$500 million Date July 6, 2017 July 2017 - US$500 MM Bond Issue Credit Rating BBB- Price 99.663% • Second time CGG has successfully Coupon 3.25% per annum managed a bond offering in the international capital markets. Maturity Jul
Slide 15: Dual listed in TSX and SEHK, Stock Connect eligible
Company Strength and Strategy (cont’d) Dual listed in TSX and SEHK, eligible trading under the Shenzhen-Hong Kong Stock Connect China Gold International • China Gold’s inclusion as a constituent stock in the HSI became a constituent stock demonstrates recognition of the company’s market capital, of
Slide 16: Accretive Acquisition Strategy
Company Strength and Strategy (cont’d) Accretive Acquisition Strategy • Accretive to current shareholders VALUATION • Target traded at a deep discount to current asset value • Established mining jurisdictions PROPERTY GEOGRAPHY • Stable political environment ACQUISITION CRITERIA RESOURCES/ • Large-s
Slide 17: High Standard of CSR and HSE
High Standard of CSR and HSE Achieving sustainable development through corporate social responsibility • China Gold International has contributed total of US$124 million (783 million RMB ) in the area of corporate social responsibilities since 2010 • Environmental protection • Support to local schoo
Slide 18: High Standard of CSR and HSE (cont'd)
High Standard of CSR and HSE (cont’d) Actively involving in mining related environmental protection and charitable activities in Canada • Supporting two (2) environmental protection reaches during mining operation from UBC • Treatment of Effluents from Artisanal Gold Mining and Investigation in the
Slide 19: Company Awards
Company Awards 2017 National Enterprise Management Modernization Innovation Achievements Award - by China Enterprise Confederation, Enterprise Reform Bureau of SASAC, Industrial Policy Department of Ministry of Industry and Information Technology, and SME Bureau 2016 Outstanding Group of “Twelfth Fi
Slide 20: Experienced Board and Management Team
Experienced Board and Management Team Top management of China Gold International Xin Song Bing Liu Lianzhong Sun Liangyou Jiang Chairman and CEO and Non-Executive Senior Executive Executive Director Executive Director Director Vice President and Executive Director 30+ years experience 30+ years expe
Slide 21: 2018 Outlook
2018 Outlook • Copper production in 2018 is expected to be approximately 100 million pounds “Projections for the price of copper in 2018 are being revised upward to $8,000 per tonne from $7,050 per tonne, with a growing gap expected between supply and demand, according to investment bank Goldman Sac
Slide 22: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | SEHK: 2099 Alan Qin, IR Contact info@chinagoldintl.com | chinagoldintl.com 22
China Gold International Resources — FY2017 Earnings Presentation on 6ix