Rusoro Mining Ltd. · TSXV:RML
Rusoro Mining — Investor Presentation (March 2012)
24 slides from Rusoro Mining's investor presentation, March 2012
Slide 1: Growth to a Mid-Tier Gold Producer
Growth to a Mid-Tier Gold Producer RML : TSX.V March 2012 Unlocking Value from World Class Gold Assets In Bolivar State Venezuela 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain forward-looking statements relating to the future performance of Rusoro Mining Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ mat
Slide 3: Rusoro Mining at a Glance
Rusoro Mining at a Glance PRODUCTION: 150,000 oz Au in 2009 100,000 oz Au 2010, est. 90,000 oz Au 2011 CASH COSTS : Targeting under US$500/oz when at full production NATIONALIZATION: Company continues in DECREE discussions with government GROWTH : Feasibility Study shows robust economics for expansi
Slide 4: Company Milestones
Growth to a Mid-Tier Gold Producer Company Milestones PRE-RUSORO : Operated in Venezuela as private Grupo Agapov between 2001 and 2006. Established gold production and presence as socially and environmentally responsible mining company. >175,000 metres drilling of key Projects to outline gold resour
Slide 5: Ability to Grow in Venezuela assisted by Strong Political Ties between Russia and Venezuela
Ability to Grow in Venezuela assisted by Strong Political Ties between From Time Magazine: Russia and Venezuela Making New Friends “After a face-to-face meeting, Venezuelan President Hugo Chavez and Russian President Dmitri Medvedev said their countries would work more closely together on energy and
Slide 6: RML Capital Structure
RML Capital Structure Share Capital (millions): Basic: 529.8 Market Cap : US $60 M Sym : RML - TSX Venture Exchange 24.1% Gold Fields 38.1% 26.4% Rusoro Mgmt & Insiders Institutional 13.5% Individual Investors On conversion of debt Lenders would own 10% of RML Insiders, primarily the Agapov fami
Slide 7: Operational Overview
Operational Overview Venezuelan Producer: Produced 150k oz in 2009, 100k oz in 2010, 90k oz 2011 Rusoro Operations: include the Choco 10 and Isidora mines processing ore through the Choco 10 Mill and the La Camorra Mill respectively Choco Expansion Feasibility Study Completed: positive economi
Slide 8: Achieving Targets and Goals
Achieving Targets and Goals Cash Cost Production Reduction Growth 8
Slide 9: Consolidated Gold Production vs. Expansion Production Guidance
Consolidated Gold Production Consolidated Gold Production vs. Expansion Production Guidance 600,000 Gold Ounces 400,000 150,000 400,000 62,895 99,663 100,000 200,000 0 2007 2008 Actual 2009 Actual 2010 Actual 2014 PEA Actual Guidance Previous Ownership Rusoro Ownership Past Production vs. Expansion
Slide 10: Production & Development Focus
Production & Development Focus Total NI43-101 Resources M&I 168.0 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 97.5 Mt @ 1.9 g/t – 5,590,000 oz Au 10
Slide 11: 10.7 M oz M&I; 6.8 M oz Inferred and growing
Resources and Reserves *See website for NI43-101 Reports Total NI43-101 Resources M&I 168 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 86.7 Mt @ 1.6 g/t – 4,460,000 oz Au Drilling 3604 Holes / 482,453 m CHOCO 10 NI43-101 Resources INCREIBLE 6 NI43-101 Re
Slide 12: Production Highlights
Production Highlights Gold Production steady in previous three years: 2008,100k oz; 2009, 150k oz and; 2010, 100k oz. Recent production negatively impacted by gold sales policy and uncertainty in gold sector Oxide production from Increible 6 has the potential to increase production from existi
Slide 13: Current Situation
Current Situation Negotiations on-going with government representative on compensation due to Rusoro and the terms of the migration of Rusoro Mining Assets to a Mixed Enterprise to be controlled by the Venezuelan Government. 2010/2011 production impacted by gold sales policy and current uncertai
Slide 14: Development Highlights Increible 6
Development Highlights Increible 6 Resource includes 1.59 million ounces Indicated and an additional 1.10 million ounces inferred Indicated Resource included in recently completed feasibility study New road construction connecting Increible 6 to Choco 10 was completed in 2011 Final Mine perm
Slide 15: Development Highlights Increible 6
Development Highlights Increible 6 Gold production from surface oxides at Increible 6 can begin immediately following completion of current negotiations with the government Additional oxide material expected to add 4-6 k oz Au/month until expansion at Choco Mill completed Engineering completed
Slide 16: Choco 10 / Increible 6 3D Models
Choco 10 / Increible 6 3D Models Measured 34.7 Mt @ 2.2 g/t – 2,430,000 oz Au Indicated 105.2 Mt @ 1.7 g/t – 5,880,000 oz Au Inferred 59.2 Mt @ 1.5 g/t – 2,817,000 oz Au Choco 10 2464 Holes / 270,096m Increible 6 16
Slide 17: Feasibility Study Completed in 2012 for Expansion of Choco 10 and Increible 6
Feasibility Study Completed in 2012 for Expansion of Choco 10 and Increible 6 Feasibility Study by Micon International limited filed in Feb 2012. The Study demonstrated Rosika positive economics on production of 4.5 million ounces of gold over 15 year mine life at $1225 gold Feasibility Study de
Slide 18: Expansion Economics Vs Gold Price Leverage
Expansion Economics Vs Gold Price Leverage At US$1225 gold, payback is estimated at 4.4 years after expansion Economic Sensitivity to Gold Price* (discounted at 7%) on a LOM of 15 years (max 475k oz/year in year 12) LOM net revenue of US$3.08 billion and an average annual after tax cash flow of
Slide 19: Capex per Annual Gold Ounces Produced
Capex per Annual Gold Ounces Produced (On Comparable Gold Mines Being Developed) $3.0 b 700k oz/yr $4,500 $4.4 b 1.25m oz/yr $4,000 $3,500 $3,000 $1.0 b 558k oz/yr $2,500 $844m $356m $789m 560k oz/yr 233k oz/yr $4286 $2,000 593k oz/yr $3584 $1,500 $260m $1,000 $1957 400k oz/yr $1330 $1507 $1529 $500
Slide 20: Mina Isidora - High Grade Gold Mine
Mina Isidora - High Grade Gold Mine Successfully turned around underground production at Isidora after difficulties under previous ownership Greatly increase efficiency and continuity of operation in 2009/2010 Greater than three years of ore currently outlined for future production Developme
Slide 21: Mina Isidora Expansion Potential
Mina Isidora Expansion Potential Approximately 35,000 m drilling /exploration program completed 2009- 2011 to expand resources and reserves Additional drilling planned 21
Slide 22: Development Highlights – SREP/Alvarez Ramp
Development Highlights – SREP/Alvarez Ramp Since 2006 Rusoro has advanced SREP from discovery, through delineation, permitting and development and now into Production. Completed surface work, portal and 1.5 km underground access ramp completed Trucking of ore to Choco Mill has commenced Ramp
Slide 23: 2010-2011 Advancement at SREP (Mina Simon Bolivar)
2010-2011 Advancement at SREP (Mina Simon Bolivar) Ramp to access the main mineralized gold zones at 200m depth completed in 2011 / development on mineralized structures on-going Currently processing material at the Choco Mill 23
Slide 24: Rusoro Mining: Future Growth & Opportunities
Rusoro Mining: Future Growth & Opportunities Rusoro will continue toward successfully concluding Negotiations with the Venezuelan Government regarding the Compensation due to Rusoro and terms of the migration of Rusoro’s assets to a Mixed Enterprise controlled by the government as a result of Nati