Western Copper And Gold Corporation · TSX:WRN
Western Copper And Gold — Investor Presentation (April 2018)
42 slides from Western Copper And Gold's investor presentation, April 2018
Slide 1: Developing Canada's Premier Copper-Gold Mine
DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE APRIL 2018 TSX : WRN I NYSE AMERICAN : WRN
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Western Copper and Gold Corporation and its subsidiaries (collectively, the “Company”). This document should be read in conjunction with al
Slide 3: Clean and Tightly-Held Ownership Structure
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE CASH POSITION Cash & Short Term Investments C$ 7.4 million Dec 31, 2017 (pro-forma*) Working Capital C$ 6.7 million *includes proceeds from the Feb 8, 2018 PP Short/Long Term Debt $Nil SHARE STRUCTURE Share Price C$ 1.05 April 3, 2018 Market Cap C$ 105M Com
Slide 4: Casino – Coming Online at the Right Time
CASINO – COMING ONLINE AT THE RIGHT TIME ALASKA YUKON CASINO PROJECT Whitehorse GOLD COPPER Skagway 8.9 M 4.5 B oz Reserves lbs Reserves 9.0 M 5.4 B oz Inferred Resources lbs Inferred Resources B.C Vancouver Note: see Appendix for detailed Casino mineral resource & reserve. Based on 2013 Feasibility
Slide 5: The World Needs a Lot More Copper
THE WORLD NEEDS A LOT MORE COPPER ~ 5 million tonne deficit by 2027 equivalent to annual production of 65 new Casino mines Source: Rio Tinto TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 5
Slide 6: We Are Seeing the Effects of the Copper Shortage Now
WE ARE SEEING THE EFFECTS OF THE COPPER SHORTAGE NOW TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 6
Slide 7: Only a Few Copper Projects Still Controlled by Juniors
ONLY A FEW OF COPPER PROJECTS STILL CONTROLLED BY JUNIORS UKMP Pebble Casino Northisle KSM Ann Mason Morisson Harper Creek Pumpkin Northmet Hollow Gunnison King King Tampakan Canariaco Norte Cotabambas Kamoa-Kakula Mina Justa Project Constellation Many of these projects: Productora - are too small t
Slide 8: Western Copper and Gold
WESTERN COPPER AND GOLD ✓ Significant Copper/Gold Resource initially producing 100,000 tpa copper and 400,000 oz gold per year ✓ Located in the Yukon with a supportive government that just announced road funding to the Casino mine ✓ Economic throughout the commodity cycle – IRR of 25.1%* at spot pri
Slide 9: WRN - The Casino Project
& western COPPER AND GOLD WRN - THE CASINO PROJECT
Slide 10: Key Management Team with Successful Track Record
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD Dale Corman, B.Sc., P.Eng Paul West-Sells, PhD Cameron Brown, P.Eng Julien Francois, CPA, CA Executive Chairman President & CEO VP Engineering VP Finance & CFO Extensive experience in Metallurgical Engineer with Formerly Project Manager for Has been C
Slide 11: Following a Proven Path to Create Value
FOLLOWING A PROVEN PATH TO CREATE VALUE May 2006 ✓ • Spin-out from Western Silver Transaction with Glamis (now Goldcorp) Nov 2006 ✓ • Acquired Casino Project from Lumina Resources 2008-2012 ✓ • Two Pre-Feasibility Studies Completed and Drilling to 100,000 m Jan 2013 ✓ • Bankable Feasibility Study Co
Slide 12: Significant Resource & Reserve
SIGNIFICANT RESOURCE & RESERVE RESERVE (P&P) Leached cap: 157 Mt @ 0.29 g/t Au 8.9 million oz Gold Initial 4 years: 172 Mt @ 0.70% CuEq 4.5 billion lbs Copper 22 Year Mine Life: 965 Mt @ 0.50% CuEq >0.25% CuEq <0.25% CuEq 0.95% CuEq over 689m INFERRED RESOURCE Incl. 3.6% CuEq over 100m 0m 250m 500m
Slide 13: Well Defined with Further Upside
WELL DEFINED WITH FURTHER UPSIDE Looking west ✓ Gold Heap Leach – 17 year reserve Deposit outline ✓ Milling operation – 22 year reserve ✓ Inferred resource – increases mine life to 55+ years ✓ Drilling indicates deposit is still open at depth and to the west ✓ A number of additional geophysical targ
Slide 14: Project Economics
PROJECT ECONOMICS Project Economics at Spot Prices (after-tax)* NPV IRR PAYBACK @8% (C$) (years) $2.8 B 25.1% 2.4 Note: US$1325 Au, US$3.00 Cu, Mo US$11.50, Ag US$16.00, FX: US$:C$ 1:0.77. Source: 2013 Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Pr
Slide 15: Most Economic Major Copper Project in Americas
MOST ECONOMIC MAJOR COPPER PROJECT IN AMERICAS ECONOMIC THROUGHOUT THE COMMODITY CYCLE 40% $6.0 Gold Price $ 4.5B NPV at top Gold Price $1600/oz of last cycle $1600/oz 35% $1400/oz $5.0 $1400/oz $1200/oz $1200/oz $1000/oz $1000/oz NPV, Billions (after-tax) 30% $4.0 IRR (after-tax) 25% $3.0 20% $2.0
Slide 16: Production
PRODUCTION Y1 to Y4 22 YRS Grade % CuEq 0.70 0.50 Copper production (M lb/y) 245 171 500 (ktpa) 111 78 450 Gold Production (k oz/y) 399 266 Copper (million lbs), Gold (thousand ozs) Silver Production (k oz/y) 1,777 1,425 400 Moly Production (M lb/y) 15.3 15.5 350 Strip Ratio 0.49 0.59 Net Smelter Re
Slide 17: Social License
SOCIAL LICENSE ✓ Community • Ongoing Engagement with Local Communities • 12+ Years Operating in the Yukon ✓ First Nations • Significant and Continuing Consultation with First Nations • Co-operation Agreements Signed with Key First Nations ✓ Government • $130 million funding from Territorial and Fede
Slide 18: Casino Access Road
CASINO ACCESS ROAD ✓ Significant Government Support • 100% costs associated with first road section – Freegold Road • 30% of costs associated with second road section – Casino Road ✓ Full Government Commitment • Federal and Territorial Government commitment for funding • First Nation Governments pro
Slide 19: Majors Have Discovered the Yukon
MAJORS HAVE DISCOVERED THE YUKON Note: Ownership and Claims taken from Public Disclosures TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 19
Slide 20: Comparable Capex
Unit Capex (US$/t CuEq/y) $0 $5,000 $10,000 $20,000 $25,000 $30,000 $35,000 $40,000 $15,000 Kamoa-Kakula ($1B) Metalkol ($0.8B) Los Helados ($1.2B) Sentinel ($2B) Carrapateena ($0.6B) El Pilar ($0.3B) Agua Rica ($2.2B) Mirador ($1.2B) Ann Mason ($1.2B) COMPARABLE CAPEX Josemaria ($2B) TSX : WRN I NY
Slide 21: Casino an Attractive Business
CASINO AN ATTRACTIVE BUSINESS PRODUCTION Y 1-4 LOM Copper Equiv. Production (M lbs/year) 516 382 Gold Equiv. Production (k oz/year) 1,179 872 COPPER COSTS Spot Cash Cost Net of By-Product ($/lb) (1.18) Co-Product Cash Cost (Cu) US$/lb 1.43 GOLD COSTS Spot Cash Cost Net of By-Product ($/oz) (1,440) C
Slide 22: Why Invest in Western Copper and Gold?
WHY INVEST IN WESTERN COPPER AND GOLD? Key Facts: ✓ Fundamentals of Copper Market are Strongest in 5 years ✓ Assets that have Size, Economics and Location are scarce ✓ Western has a proven history of creating shareholder value Upcoming Milestones: ✓ Important permitting milestones and Final EA Submi
Slide 23: Appendix
& western COPPER AND GOLD APPENDIX
Slide 24: Analyst Coverage
ANALYST COVERAGE H.C. WAINWRIGHT & CO. HEIKO F. IHLE, CFA TEL: (212) 356 - 0510 ROTH CAPITAL PARTNERS JAKE SEKELSKY TEL: (646) 616-2786 CORMARK SECURITIES (NEW ANALYST, CURRENTLY UNDER REVIEW) TSX : WRN I NYSE AMERICAN : WRN Appendix 24
Slide 25: Copper Investment Value – Significant Upside Potential
COPPER INVESTMENT VALUE – SIGNIFICANT UPSIDE POTENTIAL 6.0 5.0 EV/lb Copper Equivalent (¢/lb) 4.0 3.0 2.0 1.0 0.0 Northern Western Panoro NGEx Trilogy Polymet Excelsior Nevada Dynasty (WRN) (PML) (NGQ) (TMQ) (POM) (MIN) Copper (NDM) (NCU) Notes: Peer group data as per latest company public documents
Slide 26: Gold Investment Value – Significant Upside Potential
GOLD INVESTMENT VALUE – SIGNIFICANT UPSIDE POTENTIAL 70.0 60.0 EV/oz Gold Equivalent ($/oz) 50.0 40.0 30.0 20.0 10.0 0.0 Western Seabridge Chesapeake Inter. TH Midas NovaGold Victoria Sabina (WRN) Gold (CKG) (ITH) Gold (NG) Gold (SBB) (SEA) (MAX) (VIT) Notes: Peer group data as per latest company pu
Slide 27: A Significant Gold Deposit
A SIGNIFICANT GOLD DEPOSIT 50 70 45 60 40 50 Gold Equivalent (M ozs) 35 Gold (M ozs) 30 40 25 20 30 15 20 10 10 5 0 0 Coffee Casino (WRN) Metates Back River Donlin Gold Livengood Caspiche Metates Coffee Casino (WRN) Back River Livengood Caspiche Donlin Gold (CKG) (XRC) (G) (CKG) (XRC) (G) (SBB) (ITH
Slide 28: Board of Directors
BOARD OF DIRECTORS • 40 years experience as a senior corporate officer of publicly listed companies. Dale Corman, Extensive expertise in mineral exploration & development, financing, property B.Sc, P.Eng. evaluation and acquisition. Formerly Chairman & CEO of Western Silver Corporation. Executive Ch
Slide 29: Revenue Distribution
REVENUE DISTRIBUTION Y1 to Y4 LOM BASE % of Revenue – Copper ($3) 48% 46% (0.95 FX) % of Revenue – Gold + Silver 40% 37% % of Revenue – Gold ($1,400) 37% 34% % of Revenue – Silver ($25) 3% 3% % of Revenue – Moly ($14) 12% 17% Y1 to Y4 LOM SPOT % of Revenue – Copper ($3.00) 51% 49% (0.77 FX) % of Rev
Slide 30: Operating Costs
OPERATING COSTS ($/tonne) MILLING Milling $5.13 OPERATION Mining $3.05 General & Administrative $0.34 Total $8.52 ($/tonne) HEAP LEACH Heap Leach Operation $1.31 OPERATION ADR/SART $2.73 Total $4.04 Note: based on 2013 Feasibility Study, see “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Appen
Slide 31: Royalty Sale Confirms Value
ROYALTY SALE CONFIRMS VALUE VALUATION METRICS Royalty Sales Confirms Project Value Price – 5% NPI1 ~$28 M Price – 5% NPI to 2.75% NSR $32 M Total Price – NSR $60 M Net Present Value of Royalty2 $230 M 1 – Estimated by Western Copper and Gold. For further information refer to Strategic Metals Ltd. ne
Slide 32: Permitting Timeline / YESAB Panel Review Process
PERMITTING TIMELINE / YESAB PANEL REVIEW PROCESS PERMITTING TIMELINE February 18, 2016 ✓ • Project Requires Panel Review March 18, 2016 ✓ • Request Approved from Environment Minister June 20, 2016 ✓ • YESAB Compiles List of Additional Information to be Submitted Q2 2018 • Best Available Tailings Tec
Slide 33: Project Economics
PROJECT ECONOMICS ECONOMICS Base Case Spot Copper (US$/lb) 3.00 3.00 Gold (US$/oz) 1,400 1,325 Molybdenum (US$/lb) 14.00 11.50 Silver (US$/oz) 25.00 16.00 Foreign Exchange (US$:C$) 0.95 0.77 NPV @ 8% (C$ M) 2,820 4,150 Pre-Tax IRR (100% equity) (%) 24.0 29.8 NPV @ 8% (C$ M) 1,830 2,770 After Tax IRR
Slide 34: Projected Capital Costs
FEASIBILITY STUDY – JANUARY 2013 MINE COSTS $ Millions PROJECTED Mining Equipment & Mine Development 454 CAPITAL COSTS Concentrator (incl. related facilities) 904 Heap Leach Operation 139 Camp 70 Subtotal Mine Direct Costs 1,566 Indirect Costs 295 Subtotal Mine Direct & Indirect Costs 1,861 INFRASTR
Slide 35: Good Grade
GOOD GRADE Mineral Reserve Grades In Line with Peers: Casino Life of Mine (965 Mt) CASINO Casino Y1-Y4 (172 Mt) Copper Mountain - CUM (2012) Highland Valley - TCK (2012) Gibraltar - TKO (790 Mt) Mt. Milligan - TC (482 Mt) PEERS Red Chris - III (301 Mt) Cobre Panama - FM (3058 Mt) 0.00 0.10 0.20 0.30
Slide 36: Processing
PROCESSING MILLING • Throughput: average LOM 124,000 tonnes per day • Grinding Circuit: 40 ft SAG Mill (29 MW) + 2 x 28 ft Ball Mills (22 MW each) • Medium – soft ore: BWi – 14.1 kWh/t, 200 µm primary grind FLOTATION • Conventional copper/moly circuit • Recoveries: Copper 86%, Gold 67%, Moly 71%, Si
Slide 37: Yukon Map
YUKON MAP TSX : WRN I NYSE AMERICAN : WRN Appendix 37
Slide 38: Yukon Map – Southern Half
YUKON MAP – SOUTHERN HALF TSX : WRN I NYSE AMERICAN : WRN Appendix 38
Slide 39: Excellent Concentrate Quality
EXCELLENT CONCENTRATE QUALITY Copper Concentrate Molybdenum Concentrate Element Avg Value Unit Element Avg Value Unit Copper 28 % Molybdenum 57.4 % Gold 25 g/t Copper 0.39 % Rhenium 133.5 g/t Silver 120 g/t Iron 0.8 % Molybdenum 0.05 % Sulphur 37.9 % Iron 26 % Arsenic 1659 g/t Sulphur 36 % Antimony
Slide 40: Casino - Mineral Reserve & Resource Estimates
CASINO - MINERAL RESERVE & RESOURCE ESTIMATES RESERVE RESOURCE AT 0.25% CuEq CUT-OFF Note: based on 2013 Feasibility Study. See “Notes” in Appendix. TSX : WRN I NYSE AMERICAN : WRN Appendix 40
Slide 41: Notes
NOTES 2013 FEASIBILITY STUDY • Technical report entitled "Casino Project, Form 43-101 Technical Report Feasibility Study, Yukon, Canada – Revision 1" dated January 25, 2013, a copy of which is available on Western Copper and Gold's website at www.westerncopperandgold.com and under its profile at www
Slide 42: www.westerncopperandgold.com
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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