Artemis Gold Inc · TSXV:ARTG
Artemis Gold — Investor Presentation (December 2022)
35 slides from Artemis Gold's investor presentation, December 2022
Slide 1: Disciplined Development of the Blackwater Gold Project in B.C.
TSX-V: ARTG | artemisgoldinc.com Disciplined Development of the Blackwater Gold Project in B.C. December 2022
Slide 2: Forward Looking & Cautionary Statements
Forward Looking & Cautionary Statements This presentation contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws (together, “forward-looking statements”). Forward-looking statements can generally be identi
Slide 3: Why Invest in Artemis Gold?
Why Invest in Artemis Gold? One of the largest gold projects in Board and Management Canada Alignment with Shareholders • Blackwater Project (100%, B.C., Canada) • Board/Management own 41% F/D • Gold Reserves1: 8 Million ounces • $201M invested since August 2020 • Gold M&I Resources2: 11.7 Million o
Slide 4: Management Team
Management Team 41% Fully Diluted Insider Ownership - $201 M invested Since August 2020 Steven Dean Jeremy Langford Chairman & Chief Executive Officer Chief Operating Officer Steven Dean has extensive experience internationally Jeremy Langford has multi mine gold producer in mining, including as Pre
Slide 5: Value Creation Through Derisking and Execution
Value Creation Through Derisking and Execution Atlantic Gold (2014 - 2019) • Acquisition to Production in 3 years • +1,129% return to shareholders • GDXJ Index down 29% during the same period Artemis Gold (2020 - Current) • Acquired Blackwater in August 2020 • Targeting Construction permits in Q4 20
Slide 6: Derisking Blackwater One Catalyst At A Time
Derisking Blackwater One Catalyst At A Time Blackwater Project Acquired (Q3/20) $312m Process Plant EPC Awarded to Sedgman (Q2/22) Blackwater 2020 Pre-Feasibility Study (Q3/20) $140m Mining Fleet Supply & Financing Agreement (Q2/22) Jeremy Langford Joins as COO (Q1/21) Long-Lead Crushing & Grinding
Slide 7: Blackwater Project 2021 Feasibility Study Summary
Blackwater Project 2021 Feasibility Study Summary After accounting for the gold stream to Wheaton Gold Price –US$1,600/oz Phase 1 Phase 2 Phase 3 Phase 44 LOM Years 1-5 6-10 11-17 18-22 22 years Initial/Expansion Capex $645m $347m $374m Nil $1,418m Sustaining Capex1 $286m $250m $256m $39m $831m Year
Slide 8: Phase 1 Funding De-risked for Q1 2023 Construction Start
Phase 1 Funding De-risked for Q1 2023 Construction Start Substantial funding secured to advance Blackwater • Cash balance of $230 million (October 31, 2022) • $175 million equity financing closed on October 14, 2022 • Silver Stream: US$141 million (~$191 million*) • Announced in November 2021 when S
Slide 9: Canadian Gold Projects: Natural Hedge Against Lower US$ Gold
Canadian Gold Projects: Natural Hedge Against Lower US$ Gold Blackwater 2021 Feasibility Study • US$1600/oz gold price • 0.79 USD/CAD • CAD$2025/oz Gold Price November 2022 Spot Prices • US$1775/oz gold price • 0.75 USD/CAD • CAD$2,367/oz Gold Price TSX Venture: ARTG www.artemisgoldinc.com 9
Slide 10: Differentiators: Why Is Blackwater Different?
Differentiators: Why Is Blackwater Different? Mitigating risk and inflationary pressures during construction • Low Strip Ratio and Pre-Strip: • LOM Strip ratio of ~2:1 • mineralization outcrops • Valley Fill TSF Design: • Phase 1: Single 300m retention wall required (Dam C) • 1.2km retention wall re
Slide 11: Differentiators: What Does Artemis Do Differently?
Differentiators: What Does Artemis Do Differently? Fixed Price EPC Contracts Grade Control Drilling • Shifts risk to contractor • Derisks critical early years of • Mitigates risk of cost and schedule production overruns • 16x more data than diamond drilling • Forces discipline before construction •
Slide 12: Blackwater Site Preparation Works Underway
Blackwater Site Preparation Works Underway Blackwater New Construction Camp (Looking South), October 2022 Blackwater Project Plant Site Area (Looking West), October 2022 Source: Artemis Gold Inc. Source: Artemis Gold Inc. On track to increase on-site capacity to 475 personnel Preparing the plant sit
Slide 13: Final Process Plant EPC Contract Executed
Final Process Plant EPC Contract Executed Fixed Price Process Plant EPC contract Executed with Sedgman Canada Limited for $318 Million Final EPC price materially consistent with May 2022 EPC Award Includes: • Procurement/pricing of long lead equipment; • Supported by performance security of Sedgman.
Slide 14: Key Milestones in Place for a Q1 2023 Construction Start
Key Milestones in Place for a Q1 2023 Construction Start Definitive Feasibility Study Early Works Permit Mining Fleet Supply & Lease Agreement - $140 M >$800 million funding secured for Phase 1 development Provincial Mines Act & Other Permits Targeted for Q4 2022 The Blackwater Project benefits from
Slide 15: Best in Class ESG
Best in Class ESG Gender diverse board with 50% female non-executive members with ESG experience Federal & Provincial EA approvals Completion of ESG Gap analysis for compliance with Equator Principles Established Board Health, Safety, Environment and Social Performance Committee Benefits from renewa
Slide 16: Bringing Generational Change to Indigenous and Local Communities
Bringing Generational Change to Indigenous and Local Communities Artemis acknowledges that the Blackwater Mine site is located within the traditional territories of the Lhoosk’uz Dené Nation and Ulkatcho First Nation Artemis has Impact Benefits Agreements with the First Nations which host the deposi
Slide 17: Low Carbon Emission Intensity Advantage
Low Carbon Emission Intensity Advantage: Targeting a Carbon Neutral Operation in 2029 Opportunity to become one of the lowest carbon footprint gold mines in the world • BC’s Hydro-electric power is a reliable, low cost, low carbon source of electricity • The 2021 Updated Feasibility Study includes o
Slide 18: Mining Fleet Pricing, Supply & Financing Secured With Path to Decarbonization
Mining Fleet Pricing, Supply & Financing Secured With Path to Decarbonization Finning International Inc. Mining Fleet Supply Agreement • Secures Fleet Pricing to December 31, 2024 • Delivery dates for primary and ancillary fleet supports start of major development in December 2022 Caterpillar Financ
Slide 19: Blackwater's Long-term Value Optionality
Blackwater’s Long-term Value Optionality Gold Price - US$1600/oz Au, USD/CAD Exchange Rate 0.79 Blackwater Gold Production and AISC Notes: FCF = Operating Cash Flow – Sustaining Capex (includes Closure Costs) – Cash Taxes (Excludes Expansion/Growth Capital) Exp. Capex = Expansion Capital, AISC = All
Slide 20: Exploration Potential: Open to the North, Northwest and at Depth
Exploration Potential: Open to the North, Northwest and at Depth Already a 22-year reserve life • Long-term exploration upside potential remains substantial • Open to the North • Open to the Northwest • Open at depth in the South • 1,500 km2 largely under- explored land package TSX Venture: ARTG www
Slide 21: Gold Price Resource Upside
Gold Price Resource Upside • Current reserves based on a US$1,400/oz gold price pit shell Purple Surface – Reserve pit shell (US$1,400/oz Au) • At US$2,000/oz gold price, the pit shell potentially expands Additional Resource in US$2,000/oz gold price Category Tonnes (Mt) AuEq (g/t) AuEq Moz Measured
Slide 22: Blackwater: Bottom Quartile AISC
Blackwater: Bottom Quartile AISC 2022E CO-PDT AISC (US$/OZ AU EQ.) – JUNIOR PRODUCER GROUP $2,153 $2,030 $1,696 $1,511 $1,480 $1,468 $1,463 $1,366 $1,247 Median: US$1,463/oz Au Eq. $1,115 $980 $883 $852 $672 $601 Artemis Galiano Resolute Orla PureGold Ramelius Perseus Road Mandalay McEwen Superior W
Slide 23: P/NAV – Selected Developers
P/NAV – Selected Developers Artemis is trading at 0.32x P/NAV compared with the average developer value of 0.33x P/NAV P/NAV (RATIO) Intermediate Producer Median: 0.72x 0.51x 0.44x 0.40x 0.38x 0.35x Developer in Construction Median: 0.36x 0.32x 0.32x 0.28x 0.25x 0.23x Developer Median: 0.33x 0.14x 0
Slide 24: Upcoming Catalysts for Artemis Gold
Upcoming Catalysts for Artemis Gold Steady stream of catalysts and de-risking events for ARTG over the next 12 months Final BC Mines Permits Grade Control Jeremy Langford Program Appointed COO Results $312 M Process Plant EPC Awarded to $171M Equity Sedgman Candice Alderson Power Transmission Line A
Slide 25: Capital Structure
Capital Structure Large Shareholders Capital Structure (As of December 9, 2022) Issued & Outstanding Shares (M) 193 • Ryan Beedie • Amiral Gestion (Director) • Chris Batalha Options (M) 10 • Steven Dean (CFO) Warrants (M) 31 (Chairman & CEO) • Credit Mutuel Fully Diluted Shares O/S (M) 233 • Exor •
Slide 26: Artemis Gold Inc.
Artemis Gold Inc. Artemis Gold Inc. +1 (604) 558-1107 | info@artemisgoldinc.com 3083 - 595 Burrard Street, Vancouver, BC, Canada V7X 1L3 www.artemisgoldinc.com TSX Venture: ARTG www.artemisgoldinc.com 26
Slide 27: Appendix I: Mineral Resource Estimate for Blackwater
Appendix I: Mineral Resource Estimate for Blackwater Measured & Indicated Mineral Resource Estimate (Effective May 5, 2020) Grades Metal Cutoff Tonnage AuEq Au Ag AuEq Au Ag Notes: Classification (AuEq 1. The Mineral Resource estimate was prepared by Sue Bird, P.Eng., the Qualified (ktonnes) (g/t) (
Slide 28: Appendix II: Mineral Reserve Estimate for Blackwater
Appendix II: Mineral Reserve Estimate for Blackwater Proven & Probable Mineral Reserve Estimate (Effective August 18, 2020) AuEq Run of Mine Gold Grade Contained Metal Silver Grade Contained Metal Classification Grade (Mt) (Au, g/t) (Au, Moz.) (Ag, g/t) (Ag, Moz.) (g/t) Proven 325.1 0.78 0.74 7.8 5.
Slide 29: Appendix III: Blackwater 2021 Feasibility Study
Appendix III: Blackwater 2021 Feasibility Study • Year 1-5 Annual Gold Production up 29% to 321,000 at AISC of US$578/oz: • Initial throughput increased by 9% to 6Mtpa, up from 5.5Mtpa in the 2020 PFS • Gold grade processed increases to 1.62 g/t gold, up from 1.57 g/t gold in the 2020 PFS. • Average
Slide 30: Appendix IV: Phase 1 – Higher Throughput
Appendix IV: Phase 1 – Higher Throughput • Throughput expanded to 6Mtpa • Reduced plant footprint • Gyratory crusher provides more operational throughput upside potential in Phase 1 • Allows for streamlined and construction ready Phase 2 expansion • Initial Development Capital of C$645m • Optimized
Slide 31: Appendix V: Phase 2 & 3 Expansions Streamlined
Appendix V: Phase 2 & 3 Expansions Streamlined Phase 2 Expansion • Minor modifications of Phase 1 crushing, stockpile and ball mill feed system • Second ball mill added in series with Phase 1 • Duplication of the gravity concentration, leaching, absorption, elution and cyanide destruction circuits •
Slide 32: Appendix VI: What Historically Has Gone Wrong With Development Projects?
Appendix VI: What Historically Has Gone Wrong With Development Projects? • Project development in the mining sector can be done successfully. The Primary Causes of Capital Cost Overruns • Understanding the specific causes of how project execution can go wrong and what can drive • Inexperienced costs
Slide 33: Appendix VII: Executed Project Loan Facility Commitment Letter
Appendix VII: Executed Project Loan Facility Commitment Letter Artemis executed a Project Loan Facility (PLF) commitment letter with Macquarie and National Bank with the following Terms1 • C$360 million (plus up to C$25 million in capitalized interest) in project debt financing; • Annual interest ra
Slide 34: Appendix VIII: Wheaton Silver Stream Financing
Appendix VIII: Wheaton Silver Stream Financing Wheaton Precious Metals has acquired a silver stream on the Blackwater project over the life of mine under the following offer terms: • Up front payment of US$141 million • 50% of the silver produced from the Blackwater Project over the life of mine, dr
Slide 35: Appendix IX: Analyst Coverage
Appendix IX: Analyst Coverage Institution Analyst Email BMO Capital Markets Andrew Mikitchook andrew.mikitchook@bmo.com Canaccord Genuity Kevin Mackenzie kevin.mackenzie@canaccord.com CIBC Capital Markets Anita Soni Anita.soni@cibc.com Cormark Securities Richard Gray rgray@cormark.com Haywood Securi