Slide 1: Low Cost Gold, Near Term Growth
For personal use only Low Cost Gold Near Term Growth May 2015 ASX: AGD
Slide 2: Important Notice Disclaimer
For personal use only IMPORTANT NOTICE Disclaimer The purpose of this presentation is to provide general information about Austral Gold Limited (“AGD” or “Austral”). It is not recommended that any person makes any investment decision in relation to AGD based on this presentation. This presentation c
Slide 3: Stabilized low cost gold production – Near term growth
For personal use only Stabilized low cost gold production – Near term growth • Low cost gold production – US$669/AuEq oz lowest quartile AISC costs in 2014 • Stable production - 50,000 Au oz/yr since 2013 • New project Amancaya to deliver growth to 100,000 AuEq oz/yr * • Proven technical team with s
Slide 4: Corporate Overview
Corporate Overview For personal use only Capital Structure Share Price Performance (ASX:AGD) AGD Shares AX: AGD 52-Week Range A$0.07-A$0.17 Avg Daily Volume (3mths) 1,600 Basic Shares Outstanding 478.7m Market Capitalization A$71m ($0.15/share) Cash (as at 31 Dec 2014) US$10m Debt (as at 31 Dec 2014
Slide 5: Proven Performance & Production Growth
Proven Performance & Production Growth Clear Strategic Focus For personal use only 100K AuEq oz Double Production Amancaya Stabilized Cash Flow Start Up Production Positive 50K Au oz/yr First Full Year Production Amancaya Amancaya 29K Au oz Acquisition Construction Mine re-start ATX/GRM Debt Investm
Slide 6: Low cost producer – AISC US$669 AuEq oz (2014)
Low cost producer – AISC US$669 AuEq oz (2014) For personal use only Lowest Quartile AISC 1400 1200 Gold Spot Price – 1 year range US$1140 – 1340/oz All-In Sustaining Cost AISC (US$/AuEq oz) 1000 Margin 800 600 Newcrest Regis Northern Star Doray Austral Saracen Evolution 400 Gold Goldcorp 200 0 20 4
Slide 7: Consolidated Financial Highlights
For personal use only Consolidated Financial Highlights Gold Sales Volume 50 K 50 K 28 K 29 K Revenues $64m $66m $38m $36m Gross Profit $28m $34m $21m $22m Operating Profit $16m $28m $19m $ 19m Operating Profit Margin 25% 42% 50% 52% Cash $5m $4m $8m $10m Borrowings $56m $54m $55m $2m Operating Cash
Slide 8: Mining Projects located in Chile & Argentina
5 Mining Projects located in Chile & Argentina from Exploration to Production For personal use only Production 100% Guanaco Mine (CH) Pre-Construction 100% Amancaya Mine (CH) Pre-Construction 12% Lindero* Project (ARG) Advanced Exploration 20% Pinguino Project ** (ARG) Early Exploration 100% 8 de Ju
Slide 9: Flagship asset – Guanaco Mine
Flagship asset – Guanaco Mine For personal use only • Guanaco Mine 220km SE of Antofagasta, Chile (2,700m elevation). • Epithermal gold vein system, believed to have produced 1.5m Au oz (1886-1997) • Acquired 2003 by AGD • Mine reopened 2010; 1st Production 2011 • Capex US$20m • 50,000 Au oz/yr 2013
Slide 10: Flagship asset – Guanaco Mine
Flagship asset – Guanaco Mine For personal use only • Current production: 50,000 Au oz/yr and 40-70,000 Ag oz/yr • Approx. 420,000 tonnes/yr at 4.5-5.5 g/t Au at 77-81% recovery • Low cash costs (US$558/AuEq oz , CY2014) with projected 5 year life of mine* • Open Pit & Underground operation, with cr
Slide 11: New Near-term mine - Amancaya
New Near-term mine - Amancaya For personal use only • Amancaya: 60km SW of Guanaco • Low sulphidation epithermal gold vein system • Planned open pit operation with later underground operation • Plan to truck ore to processing plant at Guanaco (60km) • Combine production from Guanaco and Amancaya int
Slide 12: Amancaya – Lower Cost of Production
For personal use only Amancaya – Lower Cost of Production New Amancaya Mine / New Plant** • Capex US$17 million plant construction + VAT • Capex US$5 million mine construction + VAT • Long lead items ordered (US$3.3 m) Open Pit • Operating costs: To reduce further Location • Plant Design: Ball mill,
Slide 13: Amancaya and the path to 100,000 AuEq oz/yr low cost production
For personal use only Amancaya and the path to 100,000 AuEq oz/yr low cost production • Amancaya acquired in August 2014 from Yamana Gold for US$12m (US$8m still to be paid under deferred consideration agreement) • In-house feasibility study being finalised - analysis still in progress • Geotechnica
Slide 14: Sound Sponsor – Safe hands
Sound Sponsor – Safe hands IFISA is part of a major Agribusiness, Financial and Property conglomerate with For personal use only a successful track record in South America. It has direct and/or indirect investment interests in the following companies *: Agribusiness MKT CAP (FD): US$746.9m 88.5% (NA
Slide 15: 2015 financial and production outlook for the Guanaco Mine operation
2015 financial and production outlook For personal use only for the Guanaco Mine operation Production Price All-in Cost Assumptions Assumptions Estimates Cash Cost 50K Au oz Gold Price continues below US$1,200/oz US$600/AuEq oz Gold Grade Silver Price US$10m 4.9 g/t US$18/oz Sustaining Capex Plant R
Slide 16: Appendices
For personal use only Appendices 1. Mineral Resource Estimate – 30 June 2014 2. 2014 Quarterly Production – Low cost 3. Gold Production History 4. Guanaco Mine Exploration 5. Exploration in Argentina 6. Investments in Argentina 7. Board of Directors 8. Contact
Slide 17: Mineral Resource Estimate - Guanaco June 2014
For personal use only Appendix 1 Mineral Resource Estimate - Guanaco 30 June 2014 JORC Code 2004* Resources Measured (Me) Indicated (Ind) Total (Me + Ind) Inferred (Inf) Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Ton Grade Ounces Gold (Au) (Kt) (g/t) Au (Kt) (g/t) Au (Kt) (g/t) Au (Kt) (g/t)
Slide 18: 2014 Quarterly Production – low cost
Appendix 2 2014 Quarterly Production – low cost 18,000 1,400 For personal use only 1,293 1,287 1,283 16,000 1,198 1,200 14,000 1,000 Production (AuEq oz) 12,000 756 USD/AuEq oz 10,000 732 800 670 570 8,000 631 612 600 547 6,000 476 400 4,000 200 2,000 - - 1Q2014 2Q2014 3Q2014 4Q2014 Operating Cash C
Slide 19: 2015 Gold Production
Appendix 3 2015 Gold Production For personal use only Third consecutive year reaching 50K gold ounces expected 50,000 Silver (AuEq oz) Gold (oz) 40,000 30,000 20,000 10,000 - FY2011 FY2012 FY2013 FY2014 FY2015E Gold Production 2011-2015
Slide 20: Guanaco Mine Exploration
Appendix 4 Guanaco Mine Exploration For personal use only Main Vein Systems
Slide 21: Guanaco Mine Exploration: Veta Cachinalito Analysis of Resources
Appendix 4 Guanaco Mine Exploration VETA CACHINALITO: Analysis of Resources For personal use only
Slide 22: Expanding Footprint in South America: Exploration Projects in Argentina
Appendix 5 Expanding Footprint in South America Exploration Projects in Argentina For personal use only • Santa Cruz Province • 8 de Julio project (85K Ha), 100% AGD, minimal exploration in 2014 • Pinguino Project - Argentex (TSX-V:ATX) (10K Ha) - 19.9% shareholder • Strategic investment in known go
Slide 23: Expanding Footprint in South America: Pre-Construction Project in Argentina
Appendix 6 Expanding Footprint in South America Pre-Construction Project in Argentina For personal use only • Salta Province • Lindero Project - Goldrock (TSX-V:GRM) - 12% shareholder • Heap leach gold project in pre-construction • “Argentina’s next gold mine” Project Summary (from Goldrock): • Prod
Slide 24: Board of Directors
Appendix 7 Board of Directors Stabro Kasaneva For personal use only Eduardo Elsztain Executive Director Chairman Chief Operating Officer Appointed Director 29 Jun 2007 Appointed 7 Oct 2009 Re-elected by shareholders 28 Nov 2012 Re-elected by shareholders on 28 Nov 2012 Appointed Chairman on 2 Jun 20
Slide 25: Board of Directors
Appendix 7 Ben Jarvis Non-Executive Director Appointed 2 June 2011 Re-elected by shareholders on 16 Dec 2014 Wayne Hubert For personal use only Non-Executive Director Appointed 18 October 2011 Re-elected by shareholders on 16 Dec 2014 Mr Jarvis is the Managing Director and co-founder of Six Degrees
Slide 26: Contact
For personal use only Appendix 8 Contact For further information please contact: Alison Crealy Jose Bordogna Austral Gold Limited, Australia Austral Gold Limited, South America E: info@australgold.com.au E: jbordogna@australgold.com.au T: 61 (2) 9380 7233 T: 54 (11) 4323 7558