Bear Creek Mining — Investor Presentation (July 2022)
24 slides from Bear Creek Mining's investor presentation, Jul 28, 2022
Slide 1: Bear Creek Mining Corporation Corporate Presentation
Bear Creek Mining Corporation CORPORATE PRESENTATION July 2022 TSX-V: BCM BVL: BCM OTCQX: BCEKF
Slide 2: Cautionary Note
Cautionary Note This presentation includes Forward Looking Statements and information of a technical and scientific nature. Viewers are urged to fully review Appendix 4 of this presentation for further details and assumptions. 2
Slide 3: The New Bear Creek Mining
The New Bear Creek Mining: A precious metals producer with a world-class development asset 3
Slide 4: Bear Creek Vision
Bear Creek Vision A multi-asset precious metals producer anchored by the Mercedes Gold Mine and world- class Corani silver deposit Optimize Extend Mercedes Increase Expand operations and generate FCF production Resources Mine Life Finance and Corani silver-lead- Construct Corani Mine zinc production
Slide 5: Multi-Asset Producer
Multi-Asset Producer Bear Creek is a Mercedes Mine Mercedes precious metal SONORA Santa Elena Gold producer with Dolores Mulatos Sonora, Mexico La Colorada development and PRODUCING exploration projects providing jurisdictional and commodity diversification. Corani Project Silver-Lead-Zinc Puno, Per
Slide 6: The Mercedes Mine: A Transformational Acquisition
The Mercedes Mine: A Transformational Acquisition 6
Slide 7: Mercedes Mine Acquisition Overview
Mercedes Mine Acquisition Overview Transaction (1) Total consideration to Equinox Gold of • $75 M cash upfront ($60 M via Sandstorm Gold debt and stream financing) • $25 M deferred cash • 24.73 M BCM shares • 2% NSR Location Sonora, Mexico (~250 km NE of Hermosillo) History • Yamana commenced produc
Slide 8: Mercedes Mine Recent Production
Mercedes Mine Recent Production Production 2016–2019 2020 2021 Average Actual Actual Ore Processed (kt) 681 (1) 399 (1) 512 (1) Gold Grade (1) (g/t) 3.66 (1) 2.87 (1) 2.69 (1) Gold Produced (1) (koz) 76 (1) 35 (1) 42 (1) Cash Cost / oz Au $790 (2) $822 (2) $872(3) AISC / oz Au $1,028 (2) $1,204 (2)
Slide 9: Mercedes Opportunities
Mercedes Opportunities Increase Production Reduce Costs Extend Mine Life Increase throughput and/or grade: Improve operational discipline and • Increase exploration budget ~4- seek cost efficiencies: fold • Re-start production on certain • Delineation drilling to replace existing workings • Manage i
Slide 10: Excellent Track Record
Excellent Track Record Strong track record of reserve replacement 1200 5 4.5 • Year-end reserves relatively stable despite 1000 cumulative depletion of 382 koz Au from 2016- 800 4 Cumulative Production 2021 3.5 Gold Oz (thousands) 600 Inferred Resources • Potential for resource conversion 3 400 2.5
Slide 11: Mercedes Mine Exploration
Mercedes Mine Exploration • Recent exploration focused on Mercedes deposit trend and Lupita-Diluvio-Margarita area • Regional satellite deposit discoveries along trend of active mining zones identified new resources • Most of the land package remains untested 2022 Drill Plan $4.4 M ~35,000 m total G
Slide 12: The Corani Silver Project: A Long-Term Growth Asset
The Corani Silver Project: A Long-Term Growth Asset 12
Slide 13: Corani Silver Project
Corani Silver Project • A large asset with substantial reserves and low AISC • 15+ year mine life • ESIA approved and construction permits received • ESIA approved and construction permits received • Strong social licence and LOM Community Agreement in place • All necessary surface rights purchased
Slide 14: Corani Silver Project
Corani Silver Project Silver Lead Zinc RESERVES AND RESOURCES (1) (oz) (lbs) (lbs) Proven and Probable Reserves 229 M 2,742 M 1,694 M Measured and Indicated Resources (additional) 94 M 725 M 620 M Silver Lead Zinc PRODUCTION (2) (oz) (lbs) (lbs) Average annual production Years 1-3 (2) 16.3 M 125 M 1
Slide 15: Corani Silver Project Economics
Corani Silver Project ECONOMICS (US$, after tax) BASE CASE (1) Net Present Value 5 $531 M Internal Rate of Return 22.9% Initial Capital Payback 2.4 years LOM Cash Flow $952 M Corani NPV Leverage to Silver (2) $2,000 NPV5 (after tax, USD millions) $1,500 $1,000 $500 $0 12 14 16 18 20 22 24 26 28 30 3
Slide 16: Shareholder Profile
Shareholder Profile Basic shares outstanding (M) 152.8 Options, RSUs & DSUs (M) (1) 5.8 Bear Creek has Fully Diluted Shares (M) 158.6 maintained a Close price – C$ (TSXV: BCM) $0.79 compact share July 21, 2022 Current market cap (C$) $121 M structure since inception, minimizing Share Registry diluti
Slide 17: Head Office and Contacts
HEAD OFFICE Suite 1400 – 400 Burrard Street Vancouver BC Canada V6C 3A6 Tel: +1-604.685.6269 LIMA OFFICE Av. Conquistadores 1144 Piso 6 San Isidro, Lima, Peru Tel: +511.711.6400 HERMASILLO OFFICE Boulevard Jose Maria Morelos 307 Building F, Local 06 Loma Linda, Hermosillo, Sonora, Mexico, 83150 info
Slide 18: Appendix 1: Transaction Overview
Appendix 1: Transaction Overview Acquisition Summary Bear Creek acquired a 100% interest in the Mercedes Mine from Equinox Gold Consideration to Equinox Gold • $75 million cash on closing • $25 million payable within six months of closing • Issuance of 24.73 million Bear Creek common shares • 2% NSR
Slide 19: Appendix 1: Transaction Financing with Sandstorm Gold Royalties
Appendix 1: Transaction Financing with Sandstorm Gold Royalties Financing Partnership Strategic financing partnership with Sandstorm Gold Royalties, providing $60 million towards the Mercedes purchase Gold Stream $37.5 million gold stream advanced on closing • Fixed deliveries of 600 gold ounces per
Slide 20: Appendix 2: Mercedes Reserve and Resource Estimates
Appendix 2: Mercedes Reserve and Resource Estimates MERCEDES MINERAL RESERVES Reserve estimate assumptions • CIM Definitions Standards on Mineral Resource and Reserves (2014) have been CONTAINED METAL followed. • Mineral Reserves are minable tonnes and grades; the reference point is the mill feed at
Slide 21: Appendix 2: Corani Reserve and Resource Estimates
Appendix 2: Corani Reserve and Resource Estimates CORANI MINERAL RESERVES • The Mineral Reserves have been estimated using the definitions of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). CONTAINED METAL • The Mineral Reserves have been estimated using the following metal prices:
Slide 22: Appendix 3: Bear Creek Mining Board and Management
Appendix 3: Bear Creek Mining Board and Management CATHERINE TONY ANDY KEVIN STEPHEN ERFAN ALFREDO ALAN MCLEOD-SELTZER HAWKSHAW SWARTHOUT MORANO LANG KAZEMI BULLARD HAIR Chair CEO Director Director Director Director Director Director • Bear Creek Board and Management have substantial breadth and dep
Slide 23: Appendix 4: Cautionary Statements
Appendix 4: Cautionary Statements CAUTION REGARDING FORWARD LOOKING INFORMATION This document, and the documents referred to herein, contain "forward-looking statements" within the meaning of applicable Canadian securities laws concerning the Company's plans for its properties, operations and other
Slide 24: Cautionary Notes to United States Investors
CAUTIONARY NOTES TO UNITED STATES INVESTORS CONCERNING CANADIAN MINERAL PROPERTY DISCLOSURES As a Canadian issuer, the Company is required to comply with reporting standards in Canada that require that the Company make disclosure regarding its mineral properties, including any estimates of mineral r
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