China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — Investor Presentation (May 2019)
19 slides from China Gold International Resources's investor presentation, May 2019
Slide 1: Sustainable Growth
Sustainable Growth TSX: CGG | HKEX: 2099 May 2019
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
Why Invest in 1 SOLID STRATEGIC INVESTOR BACKING Strong support from substantial shareholder: China National Gold Group China Gold SUSTAINABLE GROWTH International 2 11th year of increased production Series II of Jiama mine phase II expansion achieved commercial production ahead of schedule in mid-2
Slide 4: Capital Structure
Capital Structure MAJOR SHAREHOLDERS1 LISTINGS (The company stock is fungible between TSX & HKEX) TSX: CGG 39.3% China National Gold Group HKEX: 2099 4.60% Van Eck Associates Corp. 2.03% Dimensional Fund Advisors 1.51% Vanguard 0.61% Blackrock ISSUED & OUTSTANDING SHARES2 396.41 MM 51.95% Other Shar
Slide 5: Excellent Operational Track Record
Excellent Operational Track Record CGG REVENUES FROM 2008-2018 (US$MM) 571 In 2019 Q1 412 332 340 339 311 303 • Total gold production 278 was 44,023 ounces 133 81 29 • Copper production increased by 110% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 compared to 2018 Q1 COMBINED GOLD PRODUCT
Slide 6: 2019 Q1 Financial Overview, 2018 Annual Financial Overview
2019 Q1 Financial Overview • Revenue increased to US$145.6 Q1 Ended Mar 31, 2019 Q1 Ended Mar 31, 2018 Year Ended Dec 31, 2018 million, representing an increase of 36% compared to the same period in Revenues (MM USD$) $145.6 $106.7 $570.6 2018 Mine operating earning $15.27 $6.55 $110.7 (MM US$) • Mi
Slide 7: Jiama Polymetallic Mine
Company Assets and Prospect COMMODITIES Jiama Polymetallic Mine Copper, Gold, Silver, Zinc, One of China’s largest Polymetallic Mines Lead and Molybdenum LOCATION 68 km NE of JIAMA RESOURCES Lhasa, Tibet Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Resources (Mt) (%) (%) (g/t) (g/t)
Slide 8: Operational status and exploration work at Jiama Mine
Company Assets and Prospect (cont’d) 2019 Q1 Jiama Mine Production data Average copper ore grade 0.68% Copper recovery rate 72% Operational status Ore mined from open pit 33,000 Tonnes/Day and exploration Ore mined from underground (Phase 1&Phase 2) 17,000 Tonnes/Day work at Jiama Mine Ore processed
Slide 9: CSH Gold Mine
Company Assets and Prospect (cont’d) CSH Gold Mine • Well-established infrastructure with excellent access one of China’s largest to roads and sufficient supplies of power, water and gold mines local labor COMMODITIES • Open pit re-design for optimization is underway Gold dore with silver by-product
Slide 10: CSH Gold Mine current status
Company Assets and Prospect (cont’d) CSH Gold Mine current status Pit wall remediation plan is being implemented • Reduced the inclination angle of the pit wall slope to increase the stability of the pit wall • Extended the mine life by 2 years • Reduced the annual production forecast while keeping
Slide 11: About China National Gold Group (CNG)
Company Strength About China National Gold Group (CNG) Supported by substantial shareholder - China Only State-owned gold mining enterprise in China National Gold Group Complete vertically integrated business chain CGG is the only overseas Exploration/Mining / Processing / EPC / Research with patent
Slide 12: Investment Grade Rating
Company Strength (cont’d) Investment Grade Rating China Gold International’s China National Gold Group’s Rating Rating BBB- BBB 12
Slide 13: Superior Financing Capability
Company Strength (cont’d) Superior Financing Capability US$500 million July 2017 - US$500 MM Bond Issue Date July 6, 2017 Credit Rating BBB- • Second time CGG has successfully Price 99.663% managed a bond offering in the Coupon 3.25% per annum international capital markets Maturity July 6, 2020 • Fi
Slide 14: Hang Seng Composite SmallCap Index and Shenzhen-Hong Kong Stock Connect
Company Strength (cont’d) China Gold International became a constituent stock of the Hang Seng Composite SmallCap Index & eligible trading under the Shenzhen-Hong Kong Stock Connect, effective March 5, 2018 China Gold International’s • Connecting the capital markets in Toronto, Hong inclusion to the
Slide 15: Comparison with peers - Good timing to buy
Company Strength (cont’d) Comparison with peers - Good timing to buy Price/Book Value Sales (Trailing Twelve Months) 1,823.09 0.95 0.71 1,098.50 0.67 0.55 0.56 652.21 765.28 542.44 612.77 0.39 468.99 496.60 0.36 354.31 0.27 0.20 Sales Multiple to Cash flow Sales Growth Year over Year 16.82 1.42 1.24
Slide 16: Accretive Acquisition Strategy
Accretive Acquisition Strategy TARGET PROJECT • Mines at operating stage with ramp-up plan or near production PHASE • High quality mine assets under development stage • Established mining jurisdictions GEOGRAPHY • Stable political environment • Gold and Copper focus METAL • Polymetallic mineral reso
Slide 17: High Standard of CSR and HSE
High Standard of CSR and HSE Actively involved in corporate social responsibility activities, winner of many CSR (Corporate Social Responsibility) Model Enterprise awards • China Gold International has contributed total to date of US$124 million (783 million RMB ) in the area of corporate social res
Slide 18: 2019 Outlook
2019 Outlook • Increase production - Projected copper production of 132 million pounds - Projected gold production of 210,000 ounces • Increase ore grade and recovery rate from Jiama • Increase investment on exploration program at Jiama • Continue exploring the potential mineral resource at CSH • Ag
Slide 19: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | HKEX: 2099 Contact Us: info@chinagoldintl.com | chinagoldintl.com 19
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