Florida Canyon Gold — Argonaut Gold — BMO Global Metals & Mining Conference 2019
28 slides from Florida Canyon Gold's conference presentation, Feb 25, 2019
Slide 1: Corporate Presentation – BMO Metals & Mining Conference
TSX:AR Corporate Presentation BMO Metals & Mining Conference, Hollywood Florida February 24 - 27, 2019
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Arg
Slide 3: Argonaut's Strategy
Argonaut’s Strategy SUSTAINABILITY § Reclamation § Create Sustainable Environmental & Community Value EXTEND MINE LIFE § With Near-Mine Exploration PRODUCTION § Have produced over 1 million GEOs1 since 2010 OPERATING EXCELLENCE § 8 Year Track Record of Profitable Mining § Experienced Team ACQUIRE §
Slide 4: Argonaut Gold: Overview
Argonaut Gold: Overview MAGINO Ontario, Canada TORONTO Office RENO Office LA COLORADA Mine EL CASTILLO COMPLEX Sonora, Mexico Durango, Mexico EL CASTILLO Mine SAN AGUSTIN Mine Argonaut History: SAN ANTONIO Baja California Sur, Mexico Over 1 million GEOs at $730 Cash Cost 1 CERRO DEL GALLO Guanajuato
Slide 5: Diversification of Contained Mineral Reserves & Mineral Resources
Diversification of Contained Mineral Reserves & Mineral Resources (1) Mineral Reserves by Country M&I Mineral Resources by Country (2) 44.0% 52.0% 48.0% 3.8M 8.1M Canada 56.0% oz Au oz Au Mexico Mineral Reserves – Producing vs. Development Producing 56.0% 3.8M oz Au Development 44.0% 1 Please refer
Slide 6: 2018 Highlights
2018 Highlights Financial Performance 165,117 Production GEOs2 • Net loss of $7.6M • Record Q4 and annual production • Adjusted net income1 - $16.4M • Company achieved the milestone of • Loss per share – basic $0.04 1M GEOs produced since its founding • Adjusted earnings per share1 - $0.09 Short Ter
Slide 7: 2018 CSR Highlights
2018 CSR Highlights Argonaut continues to create sustainable value through innovation and collaboration within the communities in which we operate. Some 2018 highlights include: MEXICO CANADA 2nd Annual “Gran Carrera Student Scholarship Magino Community Magino Revegetation Trial La Colorada” Race at
Slide 8: Positioning For The Next Gold Bull Cycle
Positioning For The Next Gold Bull Cycle Production Growth Operating Cash Flow2 250 200k - $100.0 Thousands 215k 200 165,117 $75.0 $58.1 GEO1 Production 150 126,7041 122,097 $45.9 $50.0 $M 100 $35.0 $25.0 50 0 $- 2016 2017 2018 2019E 2016 2017 2018 Measured + Indicated Resources3 10.0 7.9 7.7 8.1 8.
Slide 9: Achieving Our Objectives and Delivering Value
Achieving Our Objectives and Delivering Value Three Year Production Outlook Consolidated Production Consolidated 250 Year GEO1 Production (000s) OW TH 200K-215K 65% GR 200 165,117 GEO1 Production 2017 150 Actual2 127 126,7042 100 2018 Actual 165 50 0 2017 2018 2019E 2019E 200 - 215 Year 1 GEOs are b
Slide 10: Re-rate Potential
Re-rate Potential Enterprise Value vs. 2018A Production1 US$B | koz GEO 2 2 3 Strong re-rate potential 4 AR 2019E AR 2018A 1 Peer EV sourced from S&P Global Market Intelligence as of [February 8, 2019]; Gold equivalent ounces (“GEO”) as reported by the company. 2 Based on 2019F production. 3 Copper
Slide 11: 2019 GEO Production and Guidance
2019 GEO Production and Guidance (000s) El Castillo/ San Agustin La Colorada Consolidated Complex GEO Production2 In 000s 140 - 150 60 - 65 200 - 215 $ per Cash costs 1,3 760 - 860 800 - 900 775 - 875 ounce Au $ per AISC 1,3 975 – 1,075 ounce Au 1 Assumes a MXN:USD exchange rate of 20:1. 2 GEOs are
Slide 12: 2019 Capital Estimate
2019 Capital Estimate 2019 Capital Estimate ($M)1 El Castillo / San Agustin 27 - 31 La Colorada 14 - 16 Development Assets 9 - 13 $50 - $60 Includes ~$15M budgeted Includes $3M - $5M for for San Agustin crushing exploration and stacking expansion 1 Assumes exchange rates of MXN:USD of 20:1 and CAD:U
Slide 13: Investing to the Future – 2019 Growth Capital
Investing to the Future – 2019 Growth Capital H1 H2 EL CASTILLO COMPLEX RAMP Expansion of the San Agustin crushing & UP stacking system from 20ktpd to 30ktpd MAGINO Complete Provincial Environmental Assessment Advance construction permit, Mine Closure Plan and Schedule 2 TO 2020 authorizations Advan
Slide 14: El Castillo Complex
El Castillo Complex PROJECT DETAILS Location: Durango, Mexico Ownership: 100% Mine Type: Open Pit Metals: Gold & Silver Acquisition: • El Castillo – December 2009 • San Agustin – December 2013 El Castillo San Agustin § M&I 154.3 Mt @ 0.31 g/t Au for 1,560,000 Contained Au oz. (1) EL CASTILLO COMPLEX
Slide 15: La Colorada
La Colorada PROJECT DETAILS Location: Sonora, Mexico Ownership: 100% Mine Type: Open Pit Metals: Gold & Silver Acquisition: January 2011 SONORA § M&I 29.1 Mt @ 0.61 g/t Au for 568,000 Au oz.(1) § P&P 18.7Mt @ 0.66 g/t Au for 398,000 Au oz.(1) HERMOSILLO LA COLORADA LOM 2018 Actual 2019 Guidance To D
Slide 16: Cerro del Gallo – Advanced Exploration Project
Cerro del Gallo – Advanced Exploration Project El Castillo Complex vs Cerro del Gallo Contiguous Mineral Concession Area El Castillo Mine 620 ha 27x area Cerro del Gallo 17k ha El Castillo Mine Cerro del Gallo Located in Guanajuato state, Mexico Grade 0.36 0.60 Approximately 270 km from Mexico City
Slide 17: San Antonio – Advanced Exploration Project
San Antonio – Advanced Exploration Project PROJECT DETAILS Location: Baja California Sur, Mexico Ownership: 100% Mine Type: Open Pit, heap leach Mine Life: 15 Years Metals: Gold Acquisition: January 2011 M&I 65.1 Mt @ 0.83 g/t Au for 1,735,000 Au oz.(1) LA PAZ Cash Operating Costs of $553/oz (2) SAN
Slide 18: Magino Project
Magino Project Feasibility Study1 PROJECT DETAILS STAND ALONE JV PARTNER CASE CASE • Next to the Island Gold Mine in 10k tpd 30k tpd Ontario, Canada After-tax NPV5% at • Open pit, conventional mill $288M $399M $1,250 Au After-tax IRR at $1,250 19.5% 18.9% Au Life of Mine 17 years 11 years Average An
Slide 19: Precious Metals Producers Comparison
Precious Metals Producers Comparison P/NAV 1.5 1.3 1.2 1.0 1.1 1.0 0.8 0.7 0.7 AVG. 0.5 0.8 0.5 0.3 0.4 0.5 0.5 0.0 GUY ALO AR TGZ LMC ASR GSC DPM FVI WDO SSRM EDR 2019E P/CF 15.0 13.8 11.8 10.6 10.0 5.3 5.5 5.8 6.0 AVG. 5.0 6.2 2.7 2.8 3.0 3.4 3.7 0.0 ALO GUY AR LMC ASR DPM TGZ GSC FVI SSRM EDR WDO
Slide 20: Summary of Investment Case
Summary of Investment Case Strong balance Highly Defensive Proven sheet with leveraged to gold stock operator flexibility upside in gold § $15M cash1 § Long track record of § 5.9M M&I Resource § Nine year track § $50M revolver adding cash to the Gold Ounces2 in record of profitable balance sheet dev
Slide 21: Our Focus
Our Focus Build balance sheet De-risk development projects Deliver 200k+ GEO1 production in 2019 1 GEOs are based on a conversion ratio of 75:1 for silver to gold ounces. The conversion ratios are based on three year trailing average silver to gold exchange ratio. TSX:AR BMO Metals & Mining Conferen
Slide 22: Additional Information
TSX:AR ADDITIONAL INFORMATION /ArgonautGoldInc @Argonaut_Gold Dan Symons Vice President, Investor Relations @ArgonautGoldInc Argonaut Gold Inc. company/Argonaut-Gold-Inc First Canadian Place 100 King St. West, Suite 5700 Toronto, ON M5X 1C7 T: 416-915-3107 Argonaut Gold Inc. Email: dan.symons@argona
Slide 23: Mineral Resource Notes and Disclosures
Mineral Resource Notes and Disclosures All Mineral Resources have been estimated in accordance with Canadian Institute of Mining Standards. Mineral Resources are not known with the same degree of certainty as Mineral Reserves and do not have demonstrated economic viability. In addition, the quantity
Slide 24: Notes and Disclosures
Notes and Disclosures Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stag
Slide 25: Consolidated Mineral Resources & Mineral Reserves at January 1, 2018
Consolidated Mineral Resources & Mineral Reserves at January 1, 2018 (1) Contained Ag Tonnes Au Contained Au Ag Project Category Ounces (millions) Grade (g/t) Ounces (000s) Grade (g/t) (000s) El Castillo Proven 3.3 0.57 62 El Castillo Probable 33.7 0.39 419 San Agustin Probable 78.4 0.30 768 10.2 25
Slide 26: Strong Board, Management & Technical
Strong Board, Management & Technical Experienced Strong Board of Directors Management & Technical Team James E. Kofman, Chairman Peter C. Dougherty, President & CEO Vice Chairman, Cormark Securities Work experience at Meridian Gold, FMC Work experience at UBS Securities, Osler, Hoskin & Harcourt Wil
Slide 27: Cerro del Gallo – Mineral Resources and Reserves
Cerro del Gallo – Mineral Resources and Reserves1 Mineral Resources (Excluding Proven and Probable Reserves) Category K tonnes g Au/t K Ozs Au g Ag/t K Ozs Ag Cu % K lbs Cu Measured 39,863 0.61 781 13.8 17,714 0.10 88,790 Indicated 8,015 0.55 142 11.0 2,832 0.08 14,608 M&I 47,878 0.60 923 13.3 20,54
Slide 28: Capitalization Summary
Capitalization Summary Exchange / Symbol TSX:AR Share Price (1) C$1.94 Shares Outstanding (2) 177.8M FD Shares Outstanding (2) 183M Market Capitalization (1) C$344.9M 52 Week High / Low (1) C$2.66 / C$1.18 Cash Balance (2) US$15.4M Debt (2) US$13M 1 At February 15, 2019 2 At December 31, 2018 TSX:AR
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