China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — Q2 2017 Earnings Presentation
20 slides from China Gold International Resources's earnings presentation, Aug 11, 2017
Slide 1: 2017 Q2 Results
TSX: CGG | HKSE: 2099 2017 Q2 Results August 11, 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking stateme
Slide 3: China Gold International Overview
CHINA GOLD INTERNATIONAL OVERVIEW Unique Corporate Model Strong support from the controlling shareholder –China National Gold Group Investment Grade Credit Rating August 2016 – S&P reaffirmed the Company’s BBB- long-term corporate credit rating Ability to Raise Sizable Financing at Low Cost July 201
Slide 4: Our Strength: Excellent Operational Track Record
OUR STRENGTH: EXCELLENT OPERATIONAL TRACK RECORD Combined Gold Production CSH & Jiama Copper Production from Jiama (M lbs) (‘000 oz) 250 229 45 40 211 40 38 200 181 35 31 153 30 28 142 148 26 150 25 22 111 83 20 100 15 57 10 50 22 5 1 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2010 2011 2
Slide 5: Capital Structure
CAPITAL STRUCTURE Major China Gold Shareholders Listings TSX: CGG HK Stock Exchange: 2099 China National Gold 39.3% GROUP CORP Van Eck Associates 3.85% Issued& Outstanding 396.41million Corporation Shares Dimensional Fund 1.86% Advisors Market Cap CAD 749.77M Vanguard 1.15% Blackrock 0.93% Cash(Q2)
Slide 6: Q2 2017 Highlights
Q2 2017 HIGHLIGHTS Item Q2 ended Q2 ended Year ended Three months ended June 30, 2017 June 30, June 30, December q Revenue increased by 40% to US$97.9 2017 2016 31, 2016 million. q Mine operating earnings increased by 114% Revenues $97.9 $69.9 $339 to US$25 million. (MM USD) q Net profit after incom
Slide 7: Jiama Polymetallic Mine
JIAMA POLYMETALLIC MINE – ONE OF CHINA’S LARGEST CU-AU POLYMETALLIC MINES Jiama Resources q Located 68 kilometers northeast of Grade Contained Metal Lhasa, Tibet Category Ore Cu Mo Au Ag Pb Zn Cu Mo Au (M Ag Pb Zn (mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt) (M oz) (kt) oz) (kt) q Open-pit and undergr
Slide 8: Organic Growth - Jiama Polymetallic Mine
ORGANIC GROWTH - JIAMA POLYMETALLIC MINE q Expansion target: increase processing capacity from 6,000 tpd to 50,000 tpd q Commissioning of Series I of Jiama Phase II Expansion commenced December 1, 2016 q Processing facilities completed, underground engineering is on- going 8
Slide 9: Copper Price Rebounds Earlier Than Anticipated
COOPER PRICE REBOUNDS EARLIER THAN ANTICIPATED Rebound drivers 2016-2017 Copper Performance p In August 2017 Copper price surges to 3-year high as a demand from China is recovering Copper Price Per Pound p U.S. infrastructure plans will boost demand and the price of copper p A reduction in copper st
Slide 10: CSH Gold Mine
CSH GOLD MINE – ONE OF CHINA’S LARGEST GOLD MINES CSH Mine Resources Tonnage Grade Gold Content v Located in Inner Mongolia of China, Resources (mt) (g/t) (Moz) ~ 210km northwest of the city of Baotou v Principal product: Gold dore bars with silver as a Measured 26.72 0.67 0.58 by-product Indicated
Slide 11: Organic Growth - CSH Gold Mine
ORGANIC GROWTH - CSH GOLD MINE CSH gold production (’000 ounces) 250 204 200 185 163 150 134 139 131 111 83 100 57 50 22 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Improving Gold Recovery % 60% 52% 53% 54% 51% 52% v H2, 2014 - Expansion finished, commercial 50% 49% 43% production begins. Pr
Slide 12: Accretive Acquisition Strategy
ACCRETIVE ACQUISITION STRATEGY Valuation Transaction Structure Accretive to current Significant stake in shareholders projects and Property Acquisition Criteria resources/reserves Target traded at a deep discount to current asset value Metal Geography Selective acquisition strategy Gold focu
Slide 13: Our Strength: Supported by China's Largest Gold Producer
OUR STRENGTH: SUPPORTED BY CHINA’S LARGEST GOLD PRODUCER About China National Gold (CNG) q Largest gold producer in China q A diversified mining company with a whole industrial chain model q A global mining player q BBB credit rating by S&P-Strong ability to resist risk q Major shareholder in both i
Slide 14: Our Strength: Investment Grade Rating
OUR STRENGTH: INVESTMENT GRADE RATING China Gold International’s Ratings by S&P China National Gold Group’s Ratings by S&P 14
Slide 15: Our Strength: Superior Financing Capability
OUR STRENGTH: SUPERIOR FINANCING CAPABILITY Amount $US 500 Million 2017 July 2017 - US$ 500 MM Bond Issue Date July 6, 2017 Credit Rating BBB- v Second time CGG has successfully Price 99.663% managed a bond offering in the Coupon 3.25% per annum international capital markets. Maturity July 6, 2020 r
Slide 16: Our Strength: Experienced Board and Management Team
OUR STRENGTH: EXPERIENCED BOARD AND MANAGEMENT TEAM Top management of China Gold International Xin Song Bing Liu Lianzhong Sun Liangyou Jiang Chairman and Executive CEO and Executive Non-Executive Director Senior Executive Vice Director Director President and Executive Director 30+ years 30+ years 3
Slide 17: High Standard of CSR and HSE
HIGH STANDARD OF CSR AND HSE ACHIEVING SUSTAINABLE DEVELOPMENT THROUGH CORPORATE SOCIAL RESPONSIBILITY Ø Environmental protection Ø Support to local school Ø Building rural roads Ø Improvement of portable water Ø Green mine initiatives Ø In Canada – keep supporting Canadian Cancer Society since 2011
Slide 18: Company Awards
COMPANY AWARDS Outstanding Group of “Twelfth Five-Year Plan” for National Gold Industry on Technology Work by China Gold Association 2016 2016 China’s Top 10 Producing Mines by China Gold Association Outstanding Enterprise in CSR (Corporate Social Responsibility) by the Government of Inner Mongolia
Slide 19: 2017 Outlook
2017 OUTLOOK p Series I of Jiama Phase II Expansion will turn into commercial production p Copper production in 2017 is expected to be doubled to approximately 79 million pounds p By the end of 2017, processing capacity of Jiama expansion will reach 80% of its designed capacity p Projected gold prod
Slide 20: Thank you!
Thank you! TSX: CGG | HKSE: 2099 | Website: http://www.chinagoldintl.com/
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