Sprott Inc. · TSX:SII
Sprott — Sprott Resource Holdings — Q3 2019 Earnings Presentation
13 slides from Sprott's earnings presentation, Nov 11, 2019
Slide 1: 2019 Q3 Results Conference Call and MTV Update
Sprott Resource Holdings Inc. 2019 Q3 Results Conference Call and MTV Update November 11, 2019 Q3 2019 Results Conference Call & MTV Update | 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation and the accompanying oral remarks, including in response to questions, contain forward-looking information (collectively referred to herein as the “Forward-Looking Statements”) within the meaning of ap
Slide 3: Disclaimer
Disclaimer Qualified Persons Scientific or technical information in this presentation relating to MTV is based on information prepared by Dr Antonio Luraschi, RM CMC, Manager of Metallurgic Development and Senior Financial Analyst, Wood; Mr Sergio Navarrete, RM CMC, Mining Engineer, Wood; Mr Alfonso
Slide 4: Speakers
Speakers Michael Harrison Interim President and Chief Executive Officer Michael Staresinic Chief Financial Officer Q3 2019 Results Conference Call & MTV Update | 4
Slide 5: MTV Growth Projects
MTV Growth Projects • Target: Increase production to 40 million pounds per year and drop cash costs to $1.70 per lb. • Don Gabriel Expansion • Expansion from 25,000 tonnes per month to >90,000 tonnes per month • Scale drops unit costs • Commenced salt application • Add salt to mixed oxide-sulfide or
Slide 6: MTV Long Term Financing and Offtake Agreement
MTV Long Term Financing and Offtake Agreement • $45MM prepayment facility provided by Anglo American Marketing Limited and Kimura Capital LLP • Principal available for 12 months • 3 month LIBOR plus: • 8.00% per annum for up to 12 months depending on certain conditions • 6.25% per annum thereafter •
Slide 7: Key Milestones & Upcoming Catalysts
Key Milestones & Upcoming Catalysts Key Milestones Comment Status / Timing Corporate Strengthen board and management Expanded operational expertise Complete Contracted Wood plc (formerly AMEC) to NI 43-101 complete a NI 43-101 pre-feasibility study on the Complete – November Technical Consolidated T
Slide 8: MTV Q3 2019 Production Results
MTV Q3 2019 Production Results Quarterly production statistics: Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Total Ore Mined (thousands of tonnes) 345 288 264 235 254 Total Waste Mined (thousands of tonnes) 1,442 1,577 1,499 816 552 Ore Processed (thousands of tonnes) 404 354 311 298 313 Grade (% Cu) 0.7
Slide 9: MTV 2019 Revised Guidance
MTV 2019 Revised Guidance Operating information Original guidance Revised guidance Copper (MTV Operations) provided January 2019 November 2019 Cu Production (tonnes) 8,250 – 8,750 7,000 – 7,400 Cu Production (millions of pounds) 18.2 – 19.3 15.4 – 16.3 Cash Cost per Pound Produced (2) $2.20 – $2.50
Slide 10: Balance Sheet and Liquidity Profile
Balance Sheet and Liquidity Profile September 30, December 31, $US millions 2019 2018 Cash and cash equivalents $10.7 $13.5 Working capital (deficit) (1) ($4.6) $19.5 Portfolio investments $7.6 $19.5 Total assets $153.0 $154.5 Total equity attributable to owners of the Company $65.3 $85.6 (1) Measur
Slide 11: Income Statement – Three Months Ended
Income Statement – Three Months Ended $US millions (except for per share amounts) September 30, 2019 September 30, 2018 Revenue $9.6 $6.0 Cost of Sales (13.9) (7.4) Gross loss ($4.3) ($1.4) Expenses 0.9 2.3 Loss (gain)on portfolio investments 3.4 (2.6) 4.3 (0.3) Net loss from continuing operations (
Slide 12: Summary
Summary • Financing of $45MM and new offtake agreement scheduled to close in Q4 Illustrative SRHI Enterprise Value(1) • Salt Leach implemented early $40 and full dosage of salt added to heap leach in October expected $30 $33 to significantly improve time for $15 CAD$ million copper recovery $20 $7 $
Slide 13: Contact Details
Contact Details Royal Bank Plaza, South Tower 200 Bay Street, Suite 2600 Toronto, Ontario M5J 2J1 www.sprott.com Michael Harrison Interim President and Chief Executive Officer, Sprott Resource Holdings Inc. Business: 416.943.4995 mharrison@sprott.com Glen Williams Managing Director, Investor Relatio
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