China Gold International Resources Corp. Ltd. · HKEX:2099

China Gold International Resources — Investor Presentation (March 2013)

26 slides from China Gold International Resources's investor presentation, March 2013

  1. Slide 1: China Gold International Resources March-April 2013

    TSX: CGG | HKSE: 2099 March - April 2013 China Gold International Resources Corp. Ltd | TSX: CGG – HKSE: 2099

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This presentation contains “forward looking statement’s” 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 statem

  3. Slide 3: About China Gold International

    ABOUT CHINA GOLD INTERNATIONAL Inner Mongolia  Dual listed, profitable and growing gold and copper producer CSH Gold Mine  Operating two producing mines in China: Baotou Tibet • CSH Gold Mine - Inner Mongolia Region • Jiama Copper-Polymetallic Mine (Cu-Mo-Au-Ag-Pb-Zn) - Tibet Region  The ONLY ove

  4. Slide 4: Strong Support from Major Shareholder - CNG

    STRONG SUPPORT FROM MAJOR SHAREHOLDER – CNG China National Gold Group (CNG) owns 39% of CGG  Largest gold producer  Low cost financing capability  Strong expertise in exploration, operation, engineering and research capabilities with patents  A Regional Benchmark in China for Environmental Stand

  5. Slide 5: Experienced Board and Management Team

    EXPERIENCED BOARD AND MANAGEMENT TEAM Zhaoxue Sun Xin Song Bing Liu Zhanming Wu Chairman and Executive CEO and Executive Non-Executive Director Senior Executive VP Director Director and Executive Director ~28 years ~27 years ~20 years ~12 years experience experience experience experience Ian He Ying

  6. Slide 6: Highlights - Resources/Reserves, Production

    HIGHLIGHTS – RESOURCES/RESERVES, PRODUCTION Combined Gold Reserve / Resource Copper Reserve / Resource Gold Content Copper Content Category Category (M oz) (Billion lbs) Proven / Probable Reserve 6.7 Proven / Probable Reserve 6.2 Measured / Indicated Resource 8.1 Measured / Indicated Resource 10.3 S

  7. Slide 7: Highlights - Strong Financial Results

    HIGHLIGHTS – STRONG FINANCIAL RESULTS Business in Vancouver named China Gold #1 International as the fastest growing enterprise in British Columbia, Canada, by percentage growth in revenue between 2007 and 2011. Revenues, Mine Operating Earnings, Net Profit 350 332 Revenue Mine Operating Earnings Ne

  8. Slide 8: Highlights - Strong Financial Results

    HIGHLIGHTS – STRONG FINANCIAL RESULTS Year ended Dec 31, 2012 Year ended Dec 31, 2011 Revenues (MM USD) $332.4 $311.3 Net Profit (MM USD) $73.5 $81.9 Net Operating Cash Flow (MM USD) $90.8 $115.6 Earning per share (US cents) 18 cents 20 cents Cash Costs – CSH $825/oz Au $778/oz Au Cash Costs – *Jiam

  9. Slide 9: CSH Gold Mine - Overview

    CSH GOLD MINE – OVERVIEW One of China’s largest gold mines  Located in Inner Mongolia of China, approximately 210km northwest of the city of Baotou  Principal product: Gold dore bars with silver as a by-product  Well-established basic infrastructure: – excellent access to roads – sufficient power

  10. Slide 10: CSH Gold Mine - Geology

    CSH GOLD MINE – GEOLOGY CSH Site Plan CSH Mine Resources Tonnage Grade Gold Content Resources (mt) (g/t) (koz) Measured 90.4 0.63 1,831 Indicated 172.2 0.58 3,211 Total M&I 262.6 0.60 5,066 Inferred 132.8 0.49 2,092 CSH Mine Reserves Tonnage Grade Gold Content Reserves (mt) (g/t) (koz) Proved 89.0 0

  11. Slide 11: CSH Gold Mine - Expansion

    CSH GOLD MINE – EXPANSION Improving Gold Recovery %  An expansion feasibility study was approved in Q4, 2012 55% 53%  Ore production to increase from 30,000 tpd to 60,000 50% 49% tpd in 2013 45% 43%  By 2015 annual gold production is expected to 40% increase to ~260,000 oz. from current 139,443 o

  12. Slide 12: CSH Gold Mine - Expansion Capital Costs

    CSH GOLD MINE – EXPANSION CAPITAL COSTS  Updated resource model supports expansion to 60 ktpd by the end of 2013 Expansion Capital Cost Summary CSH Capital Cost Timing Capital Cost $200,000,000 Initial Capital to Expand Process Facilities $184,306 $180,000,000 $160,000,000 Total Capital $212,923 $1

  13. Slide 13: CSH's Robust Economics Supports Expansion

    CSH’S ROBUST ECONOMICS SUPPORTS EXPANSION  Positive NPV and Strong Cash flows under both: corporate level valuation and operation level valuation in ITR  Additional value is expected from accelerated production and shorter mine life from 16 to 11 years Shorter mine life = Higher degree of confiden

  14. Slide 14: CSH's Robust Economics Supports Expansion

    CSH’S ROBUST ECONOMICS SUPPORTS EXPANSION $4.2 Bn LOM (Life of Mine) Revenue Expectations $1.6 Bn LOM Operating Profit Expectations $1,25 MM LOM Free Cash Flow Expectation $600,000 Revenue Operating Profit Free Cash Flow $400,000 $200,000 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202

  15. Slide 15: Jiama Polymetallic Mine - Overview

    JIAMA POLYMETALLIC MINE – OVERVIEW One of China’s largest Cu-Mo-Au-Ag-Pb-Zn mines  Located 68 kilometers northeast of Lhasa, Tibet  Commercial production began in September 2010  Phase I Operation successfully completed and included: – open-pit and underground mining operation – processing plant

  16. Slide 16: Jiama Polymetallic Mine - Geology

    JIAMA POLYMETALLIC MINE – GEOLOGY Well Designed Infrastructure Supports Phase II Operations China Gold International Resources Corp. Ltd | TSX: CGG – HKSE: 2099 16

  17. Slide 17: Jiama Polymetallic Mine - Geology

    JIAMA POLYMETALLIC MINE – GEOLOGY Current Reserves and Resources Jiama Resources Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn Category (mt) (%) (%) (g/t) (g/t) (%) (%) (kt) (kt) (M oz) (M oz) (kt) (kt) Measured 76 0.48 0.042 0.07 0.04 364 32 52 30 Indicated 977.1 0.44 0.036 0.21 10.

  18. Slide 18: Jiama Polymetallic Mine - Expansion

    JIAMA POLYMETALLIC MINE – EXPANSION Expanding Operations  Phase II Expansion –Pre-feasibility study completed in Q3 2012 –Increase processing capacity from 6,000 tpd of ore to 40,000 tpd by 2016, and will reach 80% of the capacity in 2015 –By the end 2013 capacity expected to reach 20,000 tpd and t

  19. Slide 19: Jiama Expansion - Mining and Production Highlights

    JIAMA POLYMETALLIC MINE – EXPANSION Mining and Production Highlights  Open cut mining methods will extract 202.2 Mt of ROM  Underground mining will extract 161.3 Mt of ROM  Expected life of mine: 31 years  Overall project processing capacity is 13.8 Mtpa for Cu-Mo ores  Expected annual producti

  20. Slide 20: Jiama Expansion Economics

    JIAMA POLYMETALLIC MINE – EXPANSION ECONOMICS Robust Economics Support Phase II Development Life of Mine Capital Costs Distribution and Timing 27,769 24,327 $350,000,000 $300,000,000 Process Plant $250,000,000 76,273 Mining 221,310 $200,000,000 Engineering $150,000,000 355,434 Loan Interest $100,000

  21. Slide 21: Jiama Expansion Economics

    JIAMA POLYMETALLIC MINE – EXPANSION ECONOMICS Robust Economics Support Phase II Development $17.5 Bn LOM (Life of Mine) Revenue Expectations $5.1 Bn LOM Operating Profit Expectations $3.8 Bn LOM Free Cash Flow Expectation $1,600,000 Revenue Free Cash Flow $1,400,000 $1,200,000 $1,000,000 $800,000 $6

  22. Slide 22: Jiama Green Mine

    JIAMA “GREEN MINE” NAMED BY CHINESE CENTRAL GOVERNMENT  The Tibet Autonomous Region Government has determined that any new mine operators entering the region must follow the high HSE standards set and implemented at the Jiama Mine site by CGG  Jiama Mine is covered by major medias in China and won

  23. Slide 23: Growth Plan - Organic Expansion + M&A

    GROWTH PLAN – ORGANIC EXPANSION + M&A Accretive Acquisition Organic Growth 2012 2013 2014 2015 2016 CSH Expansion construction Producing at 30,000 tpd to 60,000 tpd about 80% capacity Producing at full capacity Jiama Development and Development and 6,000 tpd construction construction to Producing at

  24. Slide 24: Growth Plan - Accretive Acquisition Strategy

    GROWTH PLAN – ACCRETIVE ACQUISITION STRATEGY Property Acquisition Criteria Valuation Transaction Structure  Accretive to current Aggressive  Significant Stake in shareholders acquisition strategy the Project and Resources/Reserves  Target is trading at a Financed through: internal deep discount t

  25. Slide 25: Share Information

    SHARE INFORMATION TSX: CGG – HKSE: 2099 Capital Structure and Share Info Top 10 Institutional Holders Analyst’s Following (As of March, 2013) (As of March, 2013) (As March, 2013) Issued and Argonaut BUY 396.3 M Van Eck Associates Corp. 77MM Outstanding Norges Bank Investment BOCOM Fully Diluted 396.

  26. Slide 26: Valuation of Jiama and CSH vs. Market Value of CGG

    VALUATION OF JIAMA AND CSH VS. MARKET VALUE OF CGG Valuation of Jiama (As per Timing of Pre – Feas.) (000-USD) NPV 9% of Free Cash Flows (Pre Feas. – Internal Estimates)* 1,240,000 - 1,600,000 ST Debt -47,728 LT Debt -151,139 Cash +80,300 Value of Jiama Segment $1,121,433 - $1,481,433 Valuation of C

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