Austral Gold Limited · ASX:AGD
Austral Gold — Investor Presentation (March 2020)
34 slides from Austral Gold's investor presentation, Mar 27, 2020
Slide 1: ASX announcement: amendments to corporate presentation
27 March 2020 For personal use only ASX Market Announcement Office | ASX Limited 20 Bridge Street, Sydney, NSW 2000 Changes to the Austral Gold corporate presentation released to the market on 19 March 2020 have been amended as follows: 1) Slide 1-heading Technical information added to Disclaimer an
Slide 2: Growth-Focused Gold & Silver Producer in North and South America
For personal use only GROWTH-FOCUSED GOLD & SILVER PRODUCER IN NORTH AND SOUTH AMERICA Corporate Presentation March 2020 ASX:AGD | TSX-V:AGLD | www.australgold.com 1
Slide 3: Disclaimer/Technical Information
DISCLAIMER/TECHNICAL INFORMATION For personal use only This presentation contains information about Austral Gold Limited ("Austral Gold") and Austral Gold's properties that have been extracted from more comprehensive documents. The information contained in this presentation is given in summary form
Slide 4: Why Invest in Austral
WHY INVEST IN AUSTRAL For personal use only CONSISTENT, LOW-COST GOLD-SILVER PRODUCTION 2020 guidance of 55K-60K GEO at an AISC of US$900- US$1,000/GEO MULTIPLE TARGETS FOR GENERATING SUBSTANTIAL MINE LIFE EXTENSIONS FREE CASH FLOW Active exploration programs on US$10.7M in mine level free several n
Slide 5: Building a High Growth, Low-Cost Precious Metals Producer in the Americas
BUILDING A HIGH GROWTH, LOW-COST PRECIOUS METALS PRODUCER IN THE AMERICAS Rawhide Mine (23.62%) For personal use only ‒ Acquired at an attractive acquisition cost (US$3.96M) ‒ Conventional open pit, heap leach mine that has produced 1.76M oz of gold and 14.6M oz of silver since 1990 Rawhide Mine Gua
Slide 6: 2019 Operating and Financial Performance
2019 OPERATING AND FINANCIAL PERFORMANCE Guanaco/ Casposo Consolidated Amancaya (net basis)* (net basis) For personal use only STRONG FY2019 Lost-Time Accidents 5 2 7 OPERATING AND Non Lost-Time Accidents 7 7 14 FINANCIAL Processed (t) 253,024 27,682 280,706 PERFORMANCE Plant Au grade (g/t) 7.6 2.7
Slide 7: Shareholder Information
SHAREHOLDER INFORMATION Exchange/Symbol ASX: AGD, TSX-V:AGLD For personal use only Share Price (February 24, 2020) A$0.17 (C$0.13) • Cash balance increased by US$4.7M in Q4 2019 52 Week Trading Range A$0.06 – A$0.17 and US$7.5M in 2019 Basic Shares Outstanding(1) 559,394,322 Market Capitalization (B
Slide 8: Strong Management & Technical Team and Experienced Board
STRONG MANAGEMENT & TECHNICAL TEAM AND EXPERIENCED BOARD OF DIRECTORS Stabro Kasaneva, Rodrigo Ramirez, José Bordogna, only BSc, CEO & Executive Director B. Min. Eng., VP of Operations B.Acc., Msc Fin., M.Intl.Bus., • CEO at Austral Gold since • Has worked at Austral Gold CFO Management 2016; COO fr
Slide 9: Comparable Company Analysis
COMPARABLE COMPANY ANALYSIS EV/EBITDA (LTM) MULTIPLES 25.0x For personal use only 20.0x AUSTRAL GOLD 15.0x EV/EBITDA (LTM) TRADES AT A LARGE (>75%) DISCOUNT 10.0x TO OTHER JUNIOR Average = 7.7x GOLD PRODUCERS ON AN EV/EBITDA 5.0x (LTM) BASIS 0.0x K92 Aura Fiore Aurelia Jaguar Fortuna Robex Austral M
Slide 10: Track Record
TRACK RECORD Austral Gold has produced +450,000 gold equivalent ounces over the prior last nine years. For personal use only Cash flow from operations have funded Austral’s growth initiatives Gold-equivalent Production (oz) 51,365 51,088 30,058 Acquired Amancaya Purchased 15% Project 12,950 Guanaco
Slide 11: Track Record
TRACK RECORD Austral Gold has produced +460,000 gold equivalent ounces over the prior last nine years. For personal use only Cash flow from operations have funded Austral’s growth initiatives 80,056** 70,135** 64,488** 55,014* 46,888 Acquired San Guillermo Project Acquired additional First full year
Slide 12: Key Asset: The Guanaco/Amancaya Mine Complex
KEY ASSET: THE GUANACO/ AMANCAYA For personal use only MINE COMPLEX Chile Guanaco/ Amancaya Antofagasta, Chile ASX:AGD | TSX-V:AGLD | www.australgold.com 11
Slide 13: Austral Gold's Flagship Asset in Chile
AUSTRAL GOLD’S FLAGSHIP ASSET IN CHILE For personal use only Guanaco/Amancaya Track Record since 2013 Gold Equivalent Production (oz) 67,005 61,271 55,000 – 60,000 51,365 51,088 46,888 44,518 37,096 2013 2014 2015 2016 2017 2018 2019 2020 guidance C1 and AISC (US$/GEO) $1,241 $946 $899 $900 - $1,000
Slide 14: Guanaco/Amancaya Complex
GUANACO/AMANCAYA COMPLEX AUSTRAL GOLD’S FLAGSHIP ASSET IN CHILE • ~73,000 ha property that is mainly comprised of: ‒ Guanaco Mine and 1,500 tpd processing plant For personal use only Description ‒ High-grade Amancaya Deposit ‒ San Guillermo (12,175 ha) and Reprado (3,960 ha) properties • 220 km SE o
Slide 15: Exploration Program at Guanaco: Sierra Inesperada Sector
EXPLORATION PROGRAM AT GUANACO SIERRA INESPERADA SECTOR • 7 km SW of the Guanaco Mine Operational Sector For personal use only • Completed a 48-hole, 4,256 m drill program in Q4 2019 • Identified a mineralized structural corridor that is 5 m to 40 m thick, extends over a 200 m strike to a depth of a
Slide 16: Exploration Program at Amancaya: Emerging Gold Vein Camp
EXPLORATION PROGRAM AT AMANCAYA EMERGING GOLD VEIN CAMP For personal use only • Identified +42 linear km of vein structures in the northern block of Central Vein (currently in operation) – Includes the Janita Vein, Nueva Vein, Julia Vein and Cerro Amarillo • In H2 2019, completed 3,012 m, 24-hole RC
Slide 17: Key Asset: Rawhide Mine
KEY ASSET: RAWHIDE MINE USA For personal use only Rawhide Mine Fallon Nevada, U.S. ASX:AGD | TSX-V:AGLD | www.australgold.com 16
Slide 18: 23.62% Ownership of the Rawhide Mine
23.62% OWNERSHIP OF THE RAWHIDE MINE For personal use only • On December 17, 2019, announced acquisition of ~22.48% (21.28% on fully diluted basis) of Rawhide Mining LLC and the Rawhide gold-silver mine in Nevada – Acquired for US$3.96M in cash – Signed option agreements to acquire additional 3.795%
Slide 19: Key Asset: Casposo Mine
KEY ASSET: CASPOSO MINE Argentina For personal use only Guanaco/ Amancaya Antofagasta, Chile ASX:AGD | TSX-V:AGLD | www.australgold.com 18
Slide 20: Casposo Mine: Potential Re-start Following Successful Exploration
CASPOSO MINE POTENTIAL RE-START FOLLOWING SUCCESSFUL EXPLORATION • 10,021 ha property located 150 km from the city Location For personal use only of San Juan in San Juan Province, Argentina • Acquired controlling stake in March 2016 • Produced ~325K oz Au and 12.5M oz Ag from History 2011 to Q2 2019
Slide 21: Key Asset: Pingüino Project
KEY ASSET: PINGUINO PROJECT For personal use only Argentina Guanaco/ Amancaya Antofagasta, Chile ASX:AGD | TSX-V:AGLD | www.australgold.com 20
Slide 22: Pingüino Project: Early Stages of a Massive Epithermal Vein System
PINGÜINO PROJECT EARLY STAGES OF A MASSIVE EPITHERMAL VEIN SYSTEM • Advanced greenfield exploration stage Ag-Au-Zn-Pb project Description 70+ veins identified to date For personal use only • 69,500 m of past drilling Large Vein System 16 veins drilled and recognized as resources • 13,486 ha property
Slide 23: 2020 Potential Catalysts
2020 POTENTIAL CATALYSTS For personal use only Upcoming News and Developments Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2020 2020 2020 2020 Brownfield Exploration Amancaya Guanaco Casposo Continue identifying M&A opportunities to consolidate attractive mining clusters in South America Re-start the Casposo mine, s
Slide 24: Austral Gold Represents a Compelling Story
AUSTRAL GOLD REPRESENTS A COMPELLING STORY ✓ For personal use only Emerging junior gold & silver producer with the goal of becoming a sustainable intermediate producer ✓ Experienced management team with a proven track record of acquiring, building and operating mining projects in the Americas ✓ Expl
Slide 25: Key Principles
KEY PRINCIPLES For personal use only Minimize health and safety risks, be socially and environmentally responsible and strive to continually reduce operating costs. Be the preferred partner for companies, communities and governments to operate gold and silver projects in the Americas. Focused on Arg
Slide 26: Contact Info
For personal use only GROWTH- FOCUSED NORTH AND SOUTH AMERICAN GOLD AND SILVER PRODUCER Contact Info: Stabro Kasaneva, CEO stabro.kasaneva@australgold.com José Bordogna, CFO jose.bordogna@australgold.com ASX:AGD | TSX-V:AGLD | www.australgold.com 25
Slide 27: Reserves & Resources Statements
For personal use only RESERVES & RESOURCES STATEMENTS ASX:AGD | TSX-V:AGLD | www.australgold.com 26
Slide 28: Legal, Political and Environmental Risks Related to Mineral Resource and Reserve Estimates
LEGAL, POLITICAL AND ENVIRONMENTAL RISKS RELATED TO MINERAL RESOURCE AND RESERVE ESTIMATES AT 31 DECEMBER 2019 For personal use only Legal Legal proceedings may be brought against Austal Gold, its subsidiaries or affiliated entities or their respective officers, directors, employees or agents for ex
Slide 29: Reserves as of December 2019
GUANACO | AMANCAYA | CASPOSO RESERVES AS OF 31 DECEMBER 2019 Ore Reserves (JORC 2012 and NI 43-101 Compliant) For personal use only Location Proven Reserves Probable Reserves Total Ore Reserves Tonnes Grade Contained Metal Tonnes Grade Contained Metal Tonnes Grade Contained Metal Gold (Au) (Kt) (g/t
Slide 30: Resources as of December 2019
GUANACO | AMANCAYA | CASPOSO RESOURCES AS OF DECEMBER 31 2019 Mineral Resources (JORC 2012 and NI 43-101 Compliant) For personal use only Resources Measured (Me) Indicated (Ind) Total (Me + Ind) Inferred (Inf) Contained Contained Contained Contained Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grad
Slide 31: Mineral Resources and Reserves: Key Assumptions
GUANACO | AMANCAYA | CASPOSO MINERAL RESOURCES AND RESERVES For personal use only Key Assumptions, parameters and methods: Resources Reserves 1. Mineral Resources followed CIM definitions and are 1. Mineral Reserves followed CIM definitions and are compliant with the JORC Code. compliant with the JO
Slide 32: Mineral Resources and Reserves: Notes
GUANACO | AMANCAYA | CASPOSO MINERAL RESOURCES AND RESERVES For personal use only Notes to the Mineral Resources & Ore Reserves Statement: Guanaco and Amancaya Mines The Mineral Resources and Reserves are classified and reported in accordance with CIM definitions as incorporated in NI 43-101, as wel
Slide 33: Pingüino Mineral Resources
PINGÜINO MINERAL RESOURCES For personal use only The 2014 updated Resource Estimate Highlights (40g Ag Eq. cutoff for 0-130m, and 100g Ag Eq. cutoff for deeper than 130m): Variable cut-off Grade (g/t) Grade Ounces ('000s) Pounds (000's) Tonnes (000's) Ag Eq. Ag Au Zn (%) Pb (%) Ag Ag Eq. Au Zn Pb In
Slide 34: Mineral Resources and Reserves: Notes (Pinguino)
GUANACO | AMANCAYA | CASPOSO MINERAL RESOURCES AND RESERVES For personal use only Notes to the Mineral Resources & Ore Reserves Statement: Pinguino The technical information related to Pinguino has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 as well as JORC