China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — Q3 2018 Earnings Presentation
23 slides from China Gold International Resources's earnings presentation, Nov 19, 2018
Slide 1: Sustainable Profitability and Growth
Sustainable Profitability and Growth TSX: CGG | HKEX: 2099 2018 Q3 Results November 2018
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: Why Invest in China Gold International
1 UNIQUE CORPORATE MODEL Strong support from controlling shareholder: China National Gold Group Co.,Ltd. Why Invest in 2 RAPID GROWTH, CONSISTENT PROFITABILITY China Gold 10th year of increasing production，10 years of consistent operational profitability Series II of Jiama mine phase II expansion ac
Slide 4: Capital Structure
Capital Structure MAJOR SHAREHOLDERS1 China National Gold Group Co.,Ltd., the largest gold producer in China, owns 39.30% of China Gold International LISTINGS 39.3% China National Gold Group Corp TSX: CGG HK Stock Exchange: 2099 5.64% Van Eck Associates Corp. 2.36% Dimensional Fund Advisors 1.35% Va
Slide 5: 2018 Q3 Production Overview
Company Operating Highlights 2018 Q3 Production Overview Copper • Copper production increased by 156% to 16,515 tonnes(≈36.4 million pounds) from 6,439 tonnes (≈ 14.2 million pounds) compared to 2017 Q3. Gold • Total gold production was 50,860 ounces • Gold production from the CSH Mine decreased by
Slide 6: 2018 Q3 Financial Overview
Company Operating Highlights (cont’d) 2018 Q3 Financial Overview Q3 Ended Q2 Ended Q3 Ended Sep 30, 2018 June 30, 2018 Sep 30, 2017 • Revenue increased to US$ 158.8 Revenues (MM USD$) $158.84 $142.09 $98.54 million （increased by 61%） Mine operating earning (MM US$) $35.10 $35.79 $26.98 compared to 2
Slide 7: 2018 Q3 Performance Highlights Summary
Company Operating Highlights(cont’d) 2018 Q3 Performance Highlights Summary • Copper production from the Jiama Mine significantly increased to 36.4 Mlb from 14.2 Mlb compared to Q3 2017. • Net cash from operating activities was US$53.56 million • The company’s EBITA increased by 14.54% to $145.68 mi
Slide 8: Excellent Operational Track Record
Company Operating Highlights (cont’d) Excellent CGG REVENUES FROM 2008-2017 (US$MM) Operational Track Record 311 332 303 278 340 339 412 133 81 29 Maintain profitability 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 and increase production COMBINED GOLD PRODUCTION COPPER PRODUCTION FROM JIAMA CS
Slide 9: Jiama Polymetallic Mine
Company Assets and Prospect Jiama Polymetallic Mine One of China’s largest Polymetallic Mines COMMODITIES Copper, Gold, Silver, Zinc, Lead and Molybdenum LOCATION 68 km NE of Lhasa, Tibet MINE OPERATION Open pit and underground PROCESSING CAPACITY increasing to 50,000tpd when phase II expansion comp
Slide 10: Jiama Mine Mineral Resources and Reserves
Company Assets and Prospect (cont’d) Jiama Mine Mineral Resources and Reserves JIAMA RESOURCES Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Resources (Mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt) (Moz) (Moz) (kt) (kt) Measured 96.3 0.39 0.04 0.08 5.62 0.04 0.02 381 35 0.26 17.46 42 22
Slide 11: Major Milestone at Jiama Mine
Company Assets and Prospect (cont’d) Major Milestone at Jiama Mine • Jiama Phase II expansion has achieved commercial production and steadily reaching its full design Commercial mineral processing capacity production on • Copper production for the full year of 2018 is Series II of Jiama expected to
Slide 12: CSH Gold Mine
Company Assets and Prospect (cont’d) CSH Gold Mine • Well-established infrastructure with excellent access to roads and sufficient supplies of power, water and One of China’s largest gold local labor mines • Open pit re-design for optimization is underway COMMODITIES Gold dore with CSH MINE RESOURCE
Slide 13: Supported by China's Largest Gold Producer
Company Strength and Strategy Supported by About China National Gold Group China’s Largest Co.,Ltd. (CNG) Gold Producer Largest gold mining company in China 39.3% A diversified mining company with a China National Gold whole industrial chain model Group Co.,Ltd. owns 39.3% of China Gold Internationa
Slide 14: Investment Grade Rating
Company Strength and Strategy (cont’d) Investment Grade Rating China Gold International’s China National Gold Group Rating Co.,Ltd. ’s Rating BBB- BBB 14
Slide 15: Superior Financing Capability
Company Strength and Strategy (cont’d) Superior Financing Capability US$500 million Date July 6, 2017 July 2017 - US$500 MM Bond Issue Credit Rating BBB- Price 99.663% • Second time CGG has successfully Coupon 3.25% per annum managed a bond offering in the international capital markets. Maturity Jul
Slide 16: Newly Added to Hang Seng Indices
Company Strength and Strategy (cont’d) Effective Sep.10, 2018, China Gold is newly added to: • China Gold’s inclusion as a constituent stock • Hang Seng Stock Connect Hong Kong in the HIS Index demonstrates recognition of the • Hang Seng Stock Connect Hong Kong company’s market MidCap & SmallCap Ind
Slide 17: Accretive Acquisition Strategy
Company Strength and Strategy (cont’d) Accretive Acquisition Strategy • Accretive to current shareholders VALUATION • Target traded at a deep discount to current asset value • Established mining jurisdictions PROPERTY GEOGRAPHY • Stable political environment ACQUISITION CRITERIA RESOURCES/ • Large-s
Slide 18: High Standard of CSR and HSE
High Standard of CSR and HSE Achieving sustainable development through corporate social responsibility • China Gold International has contributed total of US$124 million (783 million RMB ) in the area of corporate social responsibilities since 2010 • Environmental protection • Support to local schoo
Slide 19: High Standard of CSR and HSE (cont'd)
High Standard of CSR and HSE (cont’d) Actively involving in mining related environmental protection and charitable activities in Canada • Supporting two environmental protection reaches during mining operation from UBC • Treatment of Effluents from Artisanal Gold Mining and Investigation in the Bioa
Slide 20: Company Awards
Company Awards 2017 National Enterprise Management Modernization Innovation Achievements Award - by China Enterprise Confederation, Enterprise Reform Bureau of SASAC, Industrial Policy Department of Ministry of Industry and Information Technology, and SME Bureau 2016 Outstanding Group of “Twelfth Fi
Slide 21: Experienced Board and Management Team
Experienced Board and Management Team Top management of China Gold International Xin Song Liangyou Jiang Yongqing Teng Fuzhen Kang Chairman and CEO Non-Executive Non-Executive Executive Director Director Director 30+ years experience 30+ years experience 25+ years experience 10+ years experience Ian
Slide 22: 2018 Outlook
2018 Outlook • 2018 Copper production is expected to be more than 10% higher than the 100 million pounds forecasted. • 2018 Gold production is expected to be more than 10% higher than the 160,000 ounces forecasted. • Continuing work on potential acquisition targets. 22
Slide 23: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | HKEX: 2099 Contact Us: info@chinagoldintl.com | chinagoldintl.com 23
China Gold International Resources — Q3 2018 Earnings Presentation on 6ix