Olivut Resources Ltd. · TSXV:OLV
Olivut Resources — Investor Presentation (September 2016)
28 slides from Olivut Resources's investor presentation, September 2016
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Slide 2: Disclaimer
Disclaimer The information contained in this presentation is confidential and for internal use only. The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is
Slide 3: Why Invest in Diamonds?
Why Invest in Diamonds? • Commodity with superior supply demand profile over the next 10 years • Why? • Lack of recent discoveries • Long decline in production going forward • Growing consumption, leading to increased prices 3
Slide 4: Decreasing Production
Decreasing Production Source: De Beers 4
Slide 5: Limited New Mines Coming Online
Limited New Mines Coming Online Forecasted rough-diamond production of new mines, millions of carats, base scenario Forecast 25 Bunder (Rio Tinto) Star-Orion South (Shore Gold) 20 Renard (Stornoway) Gahcho Kué (Mountain Province/De Beers) Karpinsky-1 (ALROSA) 15 Ghaghoo (Gem Diamonds) Lace (DiamondC
Slide 6: Annual Global Diamond Production
Annual Global Diamond Production Rough-diamond supply, millions of carats, 2008-2030, base scenario Forecast 180 150 120 New Mines 90 Other Mines) Smaller Players 60 Rio Tinto De Beers 30 ALROSA 0 2009 2011 2013 2015E 2017F 2019F 2021F 2023F 2025F 2027F 2029F 2030F Note: Smaller players are Dominion
Slide 7: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Source: Mountain Province Diamonds 7
Slide 8: Diamond Engagement Ring Demand
Diamond Engagement Ring Demand Source: Oxford Economics 8
Slide 9: Severe Supply Demand Gap
Severe Supply Demand Gap • Global rough-diamond demand for next 15 years to grow average annual rate of 3-4% • Global rough-diamond supply to decline in volume terms from -1.5% to -4.5% annually from 2015-2030 • Supply demand gap to widen starting in 2019 Source: Bain & Company 9
Slide 10: Prices Increasing
Prices Increasing “The entire diamond industry will be affected by the looming supply gap in four years, with no player left unaffected.” Source: Bain & Company 2014 • Strong Prices: • Modest-at-best new supply growth due to mature mines approaching non-economic depths, lack of new discoveries, depl
Slide 11: Invest in the Diamond Sector
Invest in the Diamond Sector • Portfolio Diversification – prices do not correlate with performance of other investments • Liquid Markets • Market underpinned by solid core of stable, large cap, well known companies (e.g. De Beers, RTZ, Dominion Diamond) • Excellent supply/demand dynamics 11
Slide 12: Free Cash Flow Yield of Diamond Producers vs Other Precious Metals Companies
Free Cash Flow Yield of Diamond Producers vs Other Precious Metals Companies Source: DCM, Bloomberg, Mountain Province Diamonds 12
Slide 13: Why Invest in Olivut?
Why Invest in Olivut? • Proven Management: • 29 new kimberlite discoveries in a new province • Numerous additional untested targets • High level of fiscal management • Excellent results for dollars spent • Expanding exploration opportunities in multiple focus areas • Excellent potential for Economic
Slide 14: HOAM Project Location
HOAM Project Location Region of Interest • ~ 49,000 ha 100% owned within Region of Interest • 450 km x 200 km region • 29 kimberlite discoveries to date • Excellent KIM chemistry indicative of diamond stability field sources 14
Slide 15: Land Mass Comparison With Slave Craton Mines
Land Mass Comparison With Slave Craton Mines 15
Slide 16: Producing and Advanced Canadian Properties
Producing and Advanced Canadian Properties Ekati – 7 producing pipes ( <1 - 11 ha) Deposit ~ # Pipes Mine Plan Diavik – 3 producing pipes (<~2.5 ha) In Cluster Ekati 156 7 Shore Gold – 2 potentially producing thin Diavik 70 3 pyroclastic bodies (~>200 ha) Gahcho Kue 10 3 Snap Lake – shallow dipping
Slide 17: Excellent Geophysical Targets
Excellent Geophysical Targets • Numerous new priority targets • Many subtle anomalies correlate with magnetics of many producing pipes • Distinct, isolated, positive and negative magnetic features • Potential for large, high volume kimberlites • Near surface intrusives ~150 x125 m e.g.,<30m depth 17
Slide 18: Exceptional Geochemistry
Exceptional Geochemistry Olivut Regional Pyrope Chemistry • Very high percentage of diamond stability field indicator minerals, as well as some microdiamonds recovered • Diamond field indicator mineral source remains to be discovered 18
Slide 19: 2013 - 2015 Exploration Results
2013 - 2015 Exploration Results • Detailed Helimag Program • 23 helimag blocks flown • 50m line spacing • 17 confirmed moderate – high priority targets • Several additional very discreet, high interest drill targets • Completed the geophysical analysis of regional airborne database • Numerous new ta
Slide 20: Purpose of Detailed Magnetic Surveys
Purpose of Detailed Magnetic Surveys • To upgrade or downgrade all targets selected from regional widely spaced surveys: • Additional detail confirms if a target is drill worthy or not • Reduces costs associated with drilling questionable targets 20
Slide 21: Helimag Results – downgraded targets
Helimag Results – downgraded targets Regional Detailed Airborne Helimag 21
Slide 22: Helimag Results – confirmed target
Helimag Results – confirmed target Regional Detailed Airborne Helimag 22
Slide 23: Current and Proposed Exploration Program
Current and Proposed Exploration Program • Evaluation of new geophysical technology to ascertain target priority • Modelling • Plans underway for detailed helimag survey over regional targets • Drill priority list will be finalized 23
Slide 24: HOAM – Excellent Logistics
HOAM – Excellent Logistics • communities nearby – Ft. Simpson, Tulita, Wrigley, Deline • all weather roads - Mackenzie and Liard Highways • major pipeline cuts through or close to claims/permits • river transportation • favourable terrain • airport infrastructure • land based targets 24
Slide 25: HOAM Project
HOAM Project • Discovered 29 new kimberlites • Drill ready targets • Extremely encouraging results • Work is ongoing to advance Company 25
Slide 26: The People
The People Leni Keough P.Geo. President & CEO, Director & Founder Geologist, 25+ yrs experience Sharon Dowdall Chairman 35+ yrs legal experience in mining Ian Shaw CFO 35+ yrs financial experience in exploration sector Craig Reith CA, Director 35+ yrs financial experience in public sector Dr. Mal Mc
Slide 27: Capital Structure
Capital Structure MARKET CAP (Sept.19, 2016 @ $0.26 /share) $10,646,135 CAPITAL STOCK: (as of Sept.19, 2016) a) Issued – 40,946,672 common shares b) Stock Options – 3,462,500 from $0.11 - $1.70 LARGE SHAREHOLDERS: Pierre Lassonde approx. 17% Management/BOD approx. 7% 27
Slide 28: Summary
Summary • Developing a new kimberlite province • Exploring new region with extremely positive indications for diamond potential • Excellent, discrete targets – drill ready • Experienced management . . . it’s a question of time 28
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