Slide 1: Building Better Futures TD Mining Conference Jan 17, 2018
Building Better Futures TD Mining Conference Jan 17, 2018
Slide 2: Past Life – Building Goldcorp
2 % Change Goldcorp vs Market Goldcorp vs Peers CAGR 31% Past Life – Building Goldcorp 0 1000 2000 3000 1995 2000 2005 Goldcorp Barrick Kinross Newmont Glamis Meridian
Slide 3: Base Money Inflation and the Price of Gold in $US
Base Money Inflation and the Price of Gold in $US 3 Credit: in gold we trust .report. Incrementum. June 1, 2017 by Ronald-Peter Stoeferle, Mark J. Valek Source: Bloomberg, Incrementum AG, FRED Economic Data. As of Dec 31, 2017 + Central Bank Balance Sheets (USD bn.) Gold Price (USD) % Federal Funds
Slide 4: GSCI/S&P500 Ratio: Relative Value Equities vs Commodities
GSCI/S&P500 Ratio: Relative Value Equities vs Commodities 4 Credit: in gold we trust .report. Incrementum. June 1, 2017 by Ronald-Peter Stoeferle, Mark J. Valek Source: Dr. Torsten Dennin, Incrementum AG, Bloomberg. Commodities Expensive Equities Cheap Equities Expensive Commodities Cheap Oil Crisis
Slide 5: Gold's Performance - Depends on the Currency
Gold’s Performance - Depends on the Currency 5 USD -30% Euro -19% Pound -18% Canadian $ -12% Australian $ -7% Yen 1% Since High of US$1,900/oz Sep 5, 2011 to Jan 16, 2018 Source: bloomberg. As of January 16, 2018
Slide 6: Bear Markets Compared: BGMI Bear Markets Since 1939
Bear Markets Compared: BGMI Bear Markets Since 1939 (77 years) 6 Credit: in gold we trust .report. Incrementum. June 1, 2017 by Ronald-Peter Stoeferle, Mark J. Valek Source: Nowandfutures, TheDailyGold.com, Barrons, Incrementum AG Duration (Number of Weeks) We were here! 0% 20% 40% 60% 80% 100% 1 41
Slide 7: Bull Markets Compared: BGMI Bull Markets Since 1942
Bull Markets Compared: BGMI Bull Markets Since 1942 (75 years) 7 Credit: in gold we trust .report. Incrementum. June 1, 2017 by Ronald-Peter Stoeferle, Mark J. Valek Source: Nowandfutures, TheDailyGold.com, Barrons, Incrementum AG Duration (Number of Weeks) We are here! 0% 200% 400% 600% 800% 1 41 8
Slide 8: Someone Who Buys Low & Sells High Says Buy Gold
Someone Who Buys Low & Sells High Better than Most Says Buy Gold 8 Aug. 10, 2017 CNBC.com Ray Dalio, founder / manager of Bridgewater Associates, $160 Billion AUM, recommended investors have 5 to 10% of their assets in gold. Buys at the Bottom Sells at the Top Who Does This Consistently?
Slide 9: Is Gold in a Bubble? Definitely Not!
Is Gold in a Bubble? Definitely Not! 9 Total Mkt Cap - All US Public Equity Companies $31 Trillion Mkt Cap S&P 500 Companies as % Total Market Cap 80% Value of 80% $24.8 Trillion Mkt Cap of Only Gold Stock in S&P 500 (Newmont) $21 Billion Newmont’s Market Cap as % Total S&P 500 Market Cap of 1% Tota
Slide 10: Our Goal is to be in the S&P 500
10 99% of all the precious metal producers in the world are ineligible to be included in the S&P 500 Our Goal is to be in the S&P 500 MUX is Striving to Qualify
Slide 11: Cautionary Statement
Cautionary Statement 11 This presentation contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this p
Slide 12: NYSE & TSX Market Facts
Listed: Symbol: Avg Daily Vol. of Shares1: Shares Outstanding: Fully Diluted: Share Price: Market Cap: Beta2: NYSE, TSX MUX 3,000,000 337 million 352 million US$2.36 US$795 million 2.7x 12 Source: Bloomberg. US$. As of Jan 16, 2018. 1Share volume NYSE and TSX combined, 3 months average. 2Three years
Slide 13: Historic & Projected Production Profile
Historic & Projected Production Profile Gold Equivalent Ounces (000’s) 14 154 127 121 88 Production in gold equivalent ounces. Gold / silver ratio 75:1. 2018-2020 based on internal estimates. 152 167 146 215 223 Argentina Mexico Nevada Timmins 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E
Slide 14: MUX Growing in the Americas - 2017 Activities
Acquired Production in 1 of the World’s Great Gold Districts - Timmins Construction Started Gold Bar, Nevada Robust, Large, Long Life Asset Los Azules Transitioning - Oxide to Sulfide Ore Mexico 15 3 Mines 2 Development Projects Copper Optionality MUX Growing in the Americas - 2017 Activities
Slide 15: Black Fox Complex
Black Fox Complex 16 What the Seller had Invested 2014 Purchase Price +$300 million Plus Assumed Liabilities $140 million 2014 Q2 2017 Capex & Exploration +$120 million US$560 million Our Purchase Price US$35 million
Slide 16: Black Fox Complex: What Did We Buy for $0.06 on the $?
Black Fox Complex 17 1As at Dec 31, 2016. Primero’s mineral reserves and mineral resources estimates, see appendix. What Did We Buy for $0.06 on the $? Prime gold real estate: On Destor-Porcupine Fault Zone 50,000 oz gold / year: Underground mine US$150 million tax pools Operating 2,400 tpd mill & p
Slide 17: Well Mineralized Property Hosting High Grade Mineralization
18 Well Mineralized Property Hosting High Grade Mineralization Multiple structural trends: Black Fox & Froome trends Contact volcanic-sediment (Tamarak style target) Various mineralized styles and host rocks Low drilling density Sediment Km 2 0 1 Black Fox: 164 / 15.9m 61.9 / 35.9m 224 / 7.8m 91.5 /
Slide 18: Excellent Exploration Potential
19 Excellent Exploration Potential Aggressive exploration program $10 million in 2018: 1. Extensions of known mineralized zones: Black Fox Mine Froome and Grey Fox Tamarak and Gibson 2. New targets defined on: Black Fox and Froome trends Contact volcanic-sediment Sediment Tamarak Froome Grey Fox Gib
Slide 19: Black Fox: Potential for Resource Growth
Black Fox: Potential for Resource Growth Depth of Deposits & Past Production 20 Meters Indicated: 151 koz Inferred: 12 koz Resource Depth M&I: 668 koz Inferred: 174 koz Past Production: 821 koz M&I: 403 koz Inferred: 57 koz Inferred: 36 koz Base Metal Excluded Mineral Resources as of Dec 31, 2016 by
Slide 20: Gold Bar - Under Construction
Tonkin Gold Bar BMX Cortez Silver Standard Marigold Waterton Ruby Hill Battle Mountain Cortez Trend Cortez Pipeline Gold Rush Discovery 0 10 20 km N 21 Barrick’s Giant Gold Deposits $60 M Capex Open Pit, Heap Leach 0.032 opt (1.1 gpt) Average Annual Production 65 koz Gold Cash Costs / AISC Costs $72
Slide 21: Gold Bar - Short Payback, Attractive Returns
Gold Bar - Short Payback, Attractive Returns 22 Gold Price $1,150 $1,250 $1,350 After Tax IRR2 20% 30% 40% Payback 3 yrs 2.4 yrs 1.9 yrs After Tax Return Sensitivity1 1Oct 2015 Feasibility Study. 2Using 5% discount rate. Gold Bar
Slide 22: Los Azules 2017 Preliminary Economic Assessment Highlights
23 1st 13 years avg annual production 415 million lbs Cu @ $1.14/lb Initial Capex: $2.4 Billion @ $3.00/lb Cu: 3.6 Year Payback Mine Life: 36 Years $2.2 Billion After-tax NPV @ 8%: 20.1% IRR Highlights of 2017 Preliminary Economic Assessment (PEA1) 1Sep 7, 2017 - Press release “Copper Shines Brightl
Slide 23: Los Azules Projected Payback & Copper Prices
Los Azules Projected Payback & Copper Prices 24 Payback (Years) Copper Price (US$/lb)
Slide 24: Production: San José Mine - Gold & Silver
Production: San José Mine - Gold & Silver 25 1 Reserve grade 2 Production in gold equivalent ounces. Gold / silver ratio 75:1. 100% basis. 3Goldcorp website, 2017 production estimate. Underground Mine, Narrow Vein, High Grade 484 gpt Silver & 7.11 gpt Gold1 2017 Production2 MUX’s 49% Share 91,356 oz
Slide 25: MUX vs Gold, GDX and GDXJ – Impact of a High Beta
MUX vs Gold, GDX and GDXJ – Illustration of Impact of a High Beta Nov 2009 - Present 26 2010 2011 2012 2013 2014 2015 2016 2017 Source: Bloomberg. US$. As of Jan 16, 2018. % -52% GDX -12% MUX 14% Gold -67% GDXJ 2018 -100 -50 0 50 100 150 200 250
Slide 26: Appendix: MUX Reserves and Resources Table
Appendix: MUX Reserves and Resources Table, Go to 27 Notes on Black Fox Mineral Reserves estimate: Assumed gold price of US$1,200 / oz. A two-pass-cut-off grade was applied at Black Fox underground; first-pass of 4.74 g/t gold based on total all-in-costs of C$214/t (C$166/t direct costs and C$48/t s