Osisko Metals Incorporated · TSX:OM
Osisko Metals — Investor Presentation (June 2020)
29 slides from Osisko Metals's investor presentation, June 2020
Slide 1: Corporate Presentation Q2 2020
Corporate Presentation Q2 2020 TSXV: OM
Slide 2: Forward-Looking Statements & Cautionary Notes Regarding Technical Information
Forward-Looking Statements & Cautionary Notes Regarding TechnicalInformation This presentation (the "Presentation") contains ""forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this Present
Slide 3: Key Take-aways
Key Take-aways • Metal markets (excluding gold) are at 100 year lows. • Decade-long divestment from resource sector is leading to global base metal reserve depletion. • Unsustainable situation that will lead to supply deficits. • Well positioned to develop one of Canada’s largest zinc- lead projects
Slide 4: Metal Mining Valuations At All-Time Lows
Metal Mining Valuations At All-Time Lows Mining sector remains out of favor and primed to deliver sizeable gains as it returns to the average 4
Slide 5: Construction And Infrastructure Will Drive The Demand For Zinc
Construction And Infrastructure Will Drive The Demand For Zinc Constructio n And Source: Wood Mackenzie 5
Slide 6: North American Zinc Supply Deficit Is Coming
North American Zinc Supply Deficit Is Coming 1400 35% Drop in 1200 NA Zinc Production Zn in Concentrate (kT) 1000 800 600 400 200 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Red Dog Pend Oreille Middle Tennessee Greens Creek Empire State (Balmat) East Tennessee Doe Run Bracemac McLeod Caribo
Slide 7: The Pine Point Mining Camp
The Pine Point Mining Camp OSISKO METALS Pine Point e@ Edmonton ° Vancouver ’ Calgary ° Quebec GenEx ° Montréal ° @ OMProject @ Corporate office Toronto ° OSISKO
Slide 8: Positive PEA Outline Potential For Significant Zinc And Lead Project
Positive PEA Outline Potential For Significant Zinc And Lead Project • After-Tax NPV of $500M and IRR of 29.6% • Potential To Be Top 10 Zinc Mine On Production Basis • Rapid Payback Of 2.8 Years Large Near Surface Resource Base • Infrastructure In Place: Exploration Upside • Hydroelectric Power Subs
Slide 9: Support Infrastructure Already In Place
Support Infrastructure Already In Place • Within 42 km of Hay River, • Paved Highway Access. • Known as the “Hub of the North”. • Low-Cost Hydro-Electric Power Available 9 • CN Rail Head From Edmonton & Airport. On Site From Taltson Dam.
Slide 10: PEA Financial Overview
PEA Financial Overview Internal Rate of Return ("IRR") After Taxes 29.6% After-tax Net Present Value ("NPV") (Discount Rate 8%) $500M After-Tax Payback Period (Years) 2.8 Pre-Production CAPEX (including $71.2M Contingency) $555M Average Annual LOM Production Zinc 327Mlb Average Annual LOM Production
Slide 11: Pine Point On The Cost Curve
Pine Point On The Cost Curve Over ~25% of the cost curve is unprofitable in this price environment Pine Point LOM PEA C1 Cost: 67¢/lb Source: SNL Pine Point is expected to be within the second cost quartile on a total cash cost basis. Profitable at ALL points in the zinc cycle. Well positioned on th
Slide 12: Annual Production of Metal In Concentrates
Annual Production of Metal In Concentrates 500 450 Zinc Lead Annual Production (Mlb) 400 350 300 250 200 150 100 50 0 1 2 3 4 5 6 7 8 9 10 Year • Sourced mainly from small, near-surface open pits with additional contributions from 8 high grade, shallow deposits mined by underground methods from the
Slide 13: Potential To Be A Top 10 Zinc Producer
Potential To Be A Top 10 Zinc Producer Global Current Controlling Production - Zinc Project Location Rank Company(s) (tonnes) 1 Red Dog USA Teck Resources Ltd. 583,200 2 Rampura Agucha India Hindustan Zinc Ltd. 572,441 Glencore Plc, BHP Group, Teck 3 Antamina Peru 409,300 Resources Ltd., Mitsubishi
Slide 14: Among The Cleanest Concentrates In The World
Among The Cleanest Concentrates In The World 18.00% 6,000 P: Above Penalty Level P: Above Penalty Level Minor Element Penalties (ppm) 16.00% 5,000 Major Element Penalties P 14.00% P Mn SiO2 P Hg 12.00% Fe 4,000 P 10.00% P Cd Pb 3,000 As 8.00% P Cu 6.00% 2,000 P P 4.00% P 1,000 2.00% P P P P 0.00% 0
Slide 15: Plant Site Layout
Plant Site Layout OSISKO METALS SCREENING SCREENING SORTING BUILDING CRUSHING BUILDING HOPPER JAW CRUSHER BUILDING CONCENTRATE Pb & Zn LOADING BUILDING rir GRINDING = ee USE WASTE HOPPER FLOTATION BUILDING fi LOADING BUILDING af mm [as RECEPTION pe BHO MINE DRY MINE OFFICE KITCHEN INFIRMARY DORMITOR
Slide 16: Concentrator Layout
Concentrator Layout OSISKO
Slide 17: Access To International Concentrate Markets
Access To International Concentrate Markets • Concentrates can be shipped to ports in Vancouver or Prince Rupert to access Asian markets or across Canada for European markets. • Rail Distances: • Edmonton to Hay River 970km • Edmonton to Prince Rupert 1,300km 17 • Edmonton to Vancouver 1,245km
Slide 18: MRE Expansion In East Mill Zone
MRE Expansion In East Mill Zone 18
Slide 19: Deposit Boundary Target Areas
Deposit Boundary Target Areas Over 11 deposits open across Pine Point 19
Slide 20: Deposit Styles at Pine Point (MVT)
Deposit Styles at Pine Point (MVT) Watt Mountain Shale Sulfur Point (Dolomitized) Pine point poorly investigated Pine Point carbonates Dolspar “B Spongy” unit alteration (base of Pine Point)
Slide 21: High Grade Historical Drilling Not Included In Current Resource
High Grade Historical Drilling Not Included In Current Resource Lead + Width Metres Lead Zinc Grade * Hole Name Trend Zinc Metres (m) % % % 1362 Main 4.88 2.49 10.75 13.24 64.6 1883 North 5.27 5.03 16.24 21.27 112.1 2952 North 7.62 2.28 4.42 6.7 51.1 3053 Main 17.07 3.73 6.88 10.62 181.3 3280 North
Slide 22: Appendices
Appendices 22
Slide 23: Executive Team & BOD Have A Proven Track Record
Executive Team & BOD Have A Proven Track Record Management Board of Directors Robert Wares, P.Geo, Chairman & CEO Independent: Jeff Hussey P.Geo, President & COO John Burzynski, P. Geo, Director Anthony Glavac CPA CA, CFO Luc Lessard, P. Eng, Director* Killian Charles, VP Corporate Development Amy S
Slide 24: Project Boundary Location
Project Boundary Location 24
Slide 25: PEA CAPEX Overview
PEA CAPEX Overview Initial Sustaining Total Owner’s Cost 17.0 - 17.0 Underground Mine - 220.7 220.7 Surface Mine 14.9 75.7 90.6 Electrical 15.5 15.5 Infrastructure 52.5 11.2 63.7 Processing 249.3 - 249.3 TMF and Water Management 67.1 85.1 152.2 Indirect Costs 68.2 - 68.2 Contingency 71.2 18.2 89.4 R
Slide 26: PEA Mill Overview
PEA Mill Overview Crushing and Pre-Concentration Circuit Throughput 11,250tpd Coarse Fraction 70% Fine Fraction 30% XRT Mass Recovery 42% Total Mass Recovery (including crusher fines) 59% Grinding and Flotation Circuit Throughput 6,700tpd XRT LOM Recoveries Zinc 93.4% Lead 99.0% Flotation LOM Recove
Slide 27: Gap In Global Supply To Reappear
Gap In Global Supply To Reappear 27
Slide 28: Pine Point Collaboration Agreements Show Community Support
Pine Point Collaboration Agreements Show Community Support • September 30th: Osisko Metals announced two separate Collaboration Agreements with: • Deninu Kue First Nation • Northwest Territory Metis Nation • Both Indigenous communities are located near the Pine Point Project. • Collaboration Agreeme
Slide 29: Contacts
Contacts 1100, av. des Canadiens-de-Montréal Investors and General Inquiries: Suite 300 info@osiskometals.com Montreal, Qc, H3B 2S2 Tel: 514-940-0670 Fax: 514-861-1333 29