China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — Q1 2020 Earnings Presentation
24 slides from China Gold International Resources's earnings presentation, Jul 6, 2020
Slide 1: Sustainable Growth Based on Potential and Opportunity
Sustainable Growth Based on Potential and Opportunity TSX: CGG | HKEX: 2099 May 2020
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
Why Invest in China Gold 1 SOLID STRATEGIC INVESTOR BACKING Strong financial support from substantial shareholder: China National Gold Group International 2 PROVEN STRATEGY FOR LONG-TERM VALUE CREATION 12th year of increased production INVESTMENT GRADE CREDIT RATING, ABILITY TO RAISE 3 SIZABLE FINAN
Slide 4: Company Profile - Capital Structure and Key Information
Company Profile - Capital Structure and Key Information MAJOR SHAREHOLDERS1 OUTSTANDING SHARES 396.41 MM 39.3% China National Gold Group LISTINGS (fungible) TSX: CGG 3.34% Van Eck Associates Corp. HKEX: 2099 0.76% Dimensional Fund Advisors 0.40% Blackrock 0.38% Banca Credinvest MARKET CAP1 55.82% Ot
Slide 5: 2020 Q1 Key Performance Indicators
Company Profile - Performance Indicator 2020 Q1 Key Performance Indicators Q1 Ended Q1 Ended Year Ended Mar 31, 2020 Mar 31, 2019 Dec 31, 2019 • Revenue increased to US$148.6 Revenues (MM USD$) $148.6 $145.6 $657.5 million, representing an increase of Mine operating earning $18.17 $15.27 $64.2 2.1%
Slide 6: Excellent Track Record on Production
Company Strength - Excellent Track Record on Production COMBINED GOLD PRODUCTION (K oz) 5.3% Compound Annual Growth Rate Au Production (K oz) 229 234 Budget (K oz) 211 215 215 212 In 2020 Q1 181 142 153 148 • Total gold production increased by 18% to 51,829 ounces compared to 2019 Q1 2011 2012 2013
Slide 7: Substantial Revenue Growth Leader
Company Strength - Substantial Revenue Growth Leader CGG REVENUES FROM 2009-2019 (US$MM) 658 571 23.3% Compound 412 332 340 339 Annual Growth 311 303 278 Rate 133 81 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 7
Slide 8: Strong Operation Cash Flow Generation
Company Strength - Strong Operation Cash Flow Generation Cumulative net cash flow from operating activities (MM US$) $16.02 $158.31 $ 874.97 Million $154.94 Cumulative operation $98.55 cash flow of $874.97 $77.13 $66.87 million since 2011 $93.79 $2.97 $90.79 $115.60 2011 2012 2013 2014 2015 2016 201
Slide 9: Good timing to buy
Company Strength – Good timing to buy Price/Book Value 2.13 1.67 1.35 1.35 1.43 1.17 1.24 0.78 0.43 0.11 Price to Cash Flow (Actual) 9.73 8.39 7.33 7.38 6.35 6.27 3.88 4.22 0.94 9 *Source: Factset, as of May, 2020
Slide 10: About China National Gold Group (CNG)
Company Strength – Strong Investor Backing About China National Gold Group (CNG) A strong national platform in China’s gold industry BBB Credit Rating by S&P China’s Largest Gold Producing Conglomerate Chair Member of China Gold Association Closed to 50 Producing Complete vertically integrated busin
Slide 11: Investment Grade Rating
Company Strength – Investment Grade Rating China Gold International’s China National Gold Group’s Rating Rating BBB- BBB • Company with a rating of BBB- or better are considered “investment-grade.” • Only 9 gold companies in the world have BBB- or better ratings, in which 5 gold companies have BBB r
Slide 12: Ability to Raise Sizable Financing at Low Cost
Company Strength – Ability to Raise Sizable Financing at Low Cost US$500 million July 2017 - US$500 MM Bond Issue Date July 6, 2017 Credit Rating BBB- • Second time CGG has successfully Price 99.663% managed a bond offering in the Coupon 3.25% per annum international capital markets Maturity July 6,
Slide 13: 2020 Corporate Operational Plan
Operation – 2020 Corporate Operational Plan Increase production • Projected copper production over 145 million pounds • Projected gold production over 212,000 ounces Increase ore grade and recovery rate while further improves cost control Aggressively looking for potential acquisition targets
Slide 14: Overview of Jiama Mine
Operation – Overview of Jiama Mine Jiama Polymetallic Mine One of China’s largest Polymetallic Mines COMMODITIES Copper, Gold, Silver, Zinc, JIAMA RESOURCES Lead and Molybdenum Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Resources LOCATION (Mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt)
Slide 15: History of Jiama Mine
Operation – History of Jiama Mine 2019 2020E 2018 2017 Phase II Continue to 2014 Commercial reached increase the ore production on designed Commercial supply from 2012 production on Series II of capacity underground Delivers solid Series I of Phase II Expansion sites Feasibility study Phase II perfo
Slide 16: 2020 Q1 Jiama Mine Production Data
Operation – Operational data in Jiama 2020 Q1 Jiama Mine Production Data Average copper ore grade (Phase I processing plant) 0.95% Average copper ore grade (Phase II processing plant) 0.54% Copper recovery rate (Phase I processing plant) 90.4% Copper recovery rate (Phase II processing plant) 77.1% O
Slide 17: Jiama Drilling Program
Operation – Jiama Drilling Program Drilling Program Progress • At the end of the 2019 fourth quarter, surface drilling of 27,309 +/-m with 24 drill holes were completed. • The mineralization interceptions and sample assaying of 2020 infill drilling will be analyzed together with 2019 exploration res
Slide 18: Overview of CSH Mine
Operation – Overview of CSH Mine CSH Gold Mine one of China’s largest gold mines Well-established infrastructure with excellent access to roads and sufficient supplies of power, water and local labor COMMODITIES Gold dore with silver by-product CSH MINE RESOURCES Tonnage Grade Gold Content Resources
Slide 19: History of CSH Mine
Operation – History of CSH Mine 2020E 2019 2018 2014 Optimized stable 2011 Conducted Increasing ore updated To identify additional remediation mine plan resources that operation 2009 New additional processing plan for the open-pit and life of may further mine extend the system wall production Proces
Slide 20: 2020 Q1 CSH Mine Production Data
Production Operation – CSH Operational Status 2020 Q1 CSH Mine Production Data Average ore grade 0.61 gram/Tonnes Ore mined and placed on pad 1,726,400 Tonnes Overall accumulative project-to-date gold recovery rate 54.51% Cash production cost US$995/Ounce AISC US$1,038/Ounce 20
Slide 21: CSH Future Development
Production Operation – CSH Future Development CSH updates production schedule • At the beginning of 2020, an exploration program for the south- west pit depth was projected, with 6 surface diamond drill holes totaling 3,300+/-m to identify and upgrade additional deep Mineral Resources, which may ext
Slide 22: High Standard of CSR and HSE
High Standard of Corporate Social Responsibility (CSR) and Health, Safety, and Environment (HSE) Both mines are proud to be recognized as an industry leader, great employer and corporate citizen • National High-tech Enterprise - CSH Gold mine 2018 • National Green Mines & Golden Digital mine - Jiama
Slide 23: Accretive Acquisition Strategy
Accretive Acquisition CGG has always chosen its targets carefully and has the Strategy support from its substantial shareholder: 1. Promise priority injection into CGG 2. Have the advantage of quick financing, rapid construction, quickly reaches commercial production, achieves designed capacity fast
Slide 24: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | HKEX: 2099 Contact Us: info@chinagoldintl.com | chinagoldintl.com 24
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