Citigold Corporation Limited · ASX:CTO
Citigold — Rodman & Renshaw Global Investment Conference 2011
25 slides from Citigold's conference presentation, Sep 13, 2011
Slide 1: Execution Plan to Transform Citigold into a Major Gold Producer of 320,000 ozs/yr
Execution Plan to Transform For personal use only Citigold Corporation into a Major Gold producer of 320,000 ozs/yr Rodman & Renshaw Global Investment Conference Metals and Mining 13 September 2011 New York, USA Mark Lynch CEO & Managing Director Citigold Corporation Ltd Explorer, Developer & Operat
Slide 2: Topics Covered
Topics Covered 1) Legal Statement j) Project execution partnerships For personal use only 2) Background Snapshot k) Technologies to keep costs down 3) Share Capital Structure 6) Financials :- 4) Charters Towers Project Overview a) Capital works funding 5) Charters Towers ready for Growth :- b) Capit
Slide 3: Legal Statement
1) Legal Statement DISCLAIMER - This presentation is intended to provide general information and is not intended to constitute legal, financial, accounting, tax, investment consulting or other professional advices or services. The information that is not about Citigold Corporation is collected from
Slide 4: Background Snapshot
2) Background Snapshot Listed on Australia’s ASX in 1993, code ‘CTO’ For personal use only Audited assets A$185 million Charters Towers goldfield & mines are primary assets 100% of gold lands acquired in 2004 10 million ounce Resource* defined in 2005 Commercial development commenced 200
Slide 5: Share Capital Structure
For personal use only 3) Share Capital Structure ASX Listed Shares : Code CTO Shares Issued 1,105,078,301 Options/Warrants 7,090,000 Top 20 shareholders 45% Number of shareholders 9,764 Market capitalisation @ 10c $110M All shares rank equally, one share = one vote All shares are listed on Austr
Slide 6: Charters Towers Project Overview
4) Charters Towers Project Overview i. 10,000,000 ounces (ozs) gold resource to JORC Standard For personal use only ii. 23 million tonnes @ 14 g/t gold Inferred Mineral Resource iii. Capital investment to date $190m iv. 50,000 ozs gold produced from recent mining v. Growth plan from current 10,000 o
Slide 7: Location
For personal use only 5a) Location Page 7 Sep 2011
Slide 8: Management
5b) Management Mr Mark J Lynch - Managing Director and Chief Executive Officer, FAICD, In gold For personal use only exploration and mining for 30 years, competitive focus on business efficiency centred around strategic planning and innovation. Family were founding shareholders in Citigold. Director
Slide 9: JORC gold resources
5c) JORC gold resources 10 million ozs 23 million tonnes @ 14 g/t* For personal use only Compliant with JORC standard since 2005 Resource tonnes already discounted by 70% from 74Mt to 23Mt (Report page 5) Over 146 kilometres of drilling Gold starts 100m from surface Resource to Reserve con
Slide 10: Gold giant upside
For personal use only 5d) Gold giant upside super giant possibility Large base metal rich Sub-Class of Orogenic gold deposits: Only known same giant gold deposit as Charters Towers is Parcoy-Patez in Peru at 1450t Au (production & resources). Charters Towers now 513t Au (production & resources) with
Slide 11: Actual mining has de-risked project
5e) Actual mining has de-risked project Citigold’s management has spent the last four For personal use only years studying and mining it’s ore body to better understand this unique deposit, this has significantly de-risked the project. Substantial growth can now be undertaken with confidence. Pa
Slide 12: Processing plant in operation
For personal use only 5f) Processing plant in operation Gold is simple to recover >95%, fine particles usually 20 to 100 micron in size Page 12 Sep 2011
Slide 13: Gold production schedule
For personal use only 5g) Gold production schedule 350 WEST (CITY) 300 CENTRAL (CITY) Gold Production ('000') ounces EAST (CITY) 250 IMPERIAL 200 150 100 50 22k 84k 144k 238k 320k 320k 0 1 2 3 4 5 6 Years Page 13 Sep 2011
Slide 14: Permits and land in place
5h) Permits and land in place Granted mining rights - Mining Leases with full right to For personal use only mine and sell the minerals. Granted Environmental Authority for mining operations. Granted Plan of Operations for mining operations. Citigold as established a sound background in envi
Slide 15: Permits and land in place
For personal use only 5h) Permits and land in place Contiguous mineral tenements at Charters Towers include :- • Mining Leases 47 ML’s covering 26.5 sq kms • Mineral Development Licenses 5 MDL’s covering 70 sq km • Exploration Permits Minerals 7 EPM’s covering 1480 sq km Page 15 Sep 2011
Slide 16: Infrastructure is built
5i) Infrastructure is built All service needed to support mining operation For personal use only and workforce is in place at Charters Towers. Interstate highway Sealed roads to all sites Railroad Airport Grid electricity Water Housing Light industry Support services Schools Hospital Government offi
Slide 17: Project execution partnerships
For personal use only 5j) Project execution partnerships Citigold’s Charters Towers gold mine’s planned growth is a big change in our business complexity. Building on the current foundation will be specialist world best management & design skill partnerships including project management, underground
Slide 18: Technologies to keep costs down
5k) Technologies to keep costs down Capital and operating costs are considered conservative, For personal use only further savings probable through optimisation by :- reducing quantity of ore drive levels vertical shaft ore haulage reduces diesel oil usage and ventilation requirements geophysi
Slide 19: Capital works funding
6a) Capital works funding Project generates strong revenue cash flow from year 1. For personal use only 4 year $230 million investment to progressively increase output each year from current annual 10,000 ounces to 320,000 ounces by increasing underground access to extract more gold ore tonnes.
Slide 20: Capital works expenditure
For personal use only 6b) Capital works expenditure Capital Investment Program Year 1 2 3 4 Total $228M $38M $84M $94m $12M 6% 3% 1% Main Access 6% 34% Diamond Drilling 7% Ore Drives 7% Ventilation Technical Services 16% Underground Processing 20% Establishment UG Services Dewatering Page 20 Sep 201
Slide 21: Central & Imperial mine outline
6c ) Central & Imperial mine outline Capex primarily allocated to expansion of underground For personal use only works to achieve high-grade gold ore to process plant 2,500 tpd:- 15,000 metres of access drives/tunnels Over 9,000 metres of in ore development 25 stoping areas to extract ore 22
Slide 22: Central mine – plan view
For personal use only 6c) Central mine – plan view Plan view showing the development of the Central mine that is projected to commence gold production 2 years after the development program commences and increases to over 200,000 ozs of gold per annum. Page 22 Sep 2011
Slide 23: Low Cash Costs & Total Costs
6d) Low Cash Costs & Total Costs As gold output grows economies of scale improve For personal use only reducing forecast Cash Costs to below $400/oz gold produced and Total Costs under $500/oz $700 350 $600 300 $500 250 Ounces ('000') $400 200 $300 150 $200 Gold Production 100 $100 Cash Costs 50 $0
Slide 24: Strong NPV
For personal use only 6e) Strong NPV Project will generate free cash flow of over $270m/yr at full production and with a gold price of $1,631/oz Based on the Financial Model’s estimated production rates, capital and operating costs the NPV of the project would be in range $1.3 to $1.5 billion us
Slide 25: Citigold Corporation Limited
For personal use only Citigold Corporation Limited Level 15, IBM Centre, 348 Edward Street, Brisbane, Qld, Australia Telephone 07 3834 0000 Facsimile 07 3834 0011 Mining operations: Clermont Road, Charters Towers, Qld Australia For further information visit: www.citigold.com
Citigold — Rodman & Renshaw Global Investment Conference 2011 on 6ix