China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — 2019 PDAC
22 slides from China Gold International Resources's conference presentation, March 2019
Slide 1: Sustainable Growth
Sustainable Growth TSX: CGG | HKEX: 2099 March 2019
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 1 SOLID STRATEGIC INVESTOR BACKING Strong support from controlling shareholder: China National Gold Group China Gold 2 SUSTAINABLE GROWTH International 11th year of increasing production Series II of Jiama mine phase II expansion achieved commercial production ahead of schedule in mid-
Slide 4: Capital Structure
Capital Structure MAJOR SHAREHOLDERS1 China National Gold Group the largest gold producer in China, owns 39.30% of China Gold International LISTINGS 39.3% China National Gold Group TSX: CGG HKEX: 2099 4.43% Van Eck Associates Corp. 1.92% Dimensional Fund Advisors 1.52% Vanguard ISSUED & OUTSTANDING
Slide 5: Excellent Operational Track Record
Company Operating Highlights Excellent CGG REVENUES FROM 2008-2017 (US$MM) Operational Track Record 311 332 303 278 340 339 412 133 In 2018 29 81 • Total gold production 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 was 215,000 ounces • Copper production COMBINED GOLD PRODUCTION COPPER PRODUCTIO
Slide 6: 2018 Q3 Financial Overview
Company Operating Highlights (cont’d) 2018 Q3 Financial Overview • Revenue increased to US$158.8 Q3 Ended Q3 Ended 2017 Sep 30, 2018 Sep 30, 2017 Year End million (increased by 61%) compared to 2017 Q3 Revenues (MM USD$) $158.84 $98.54 $411.9 • Mine operating earnings was Mine operating earning (MM
Slide 7: Supported by China’s Largest Gold Producer
Company Strength Supported by China’s Largest Gold Producer CGG is the only overseas listing vehicle of CNG About China National Gold Group (CNG) STRATEGIC / INSIDER OWNERSHIP COMPARING TO PEERS* 39.30% Largest gold mining company in China 27.05% Complete vertically integrated 12.41% business chain
Slide 8: Comparison with peers - Good timing to buy
Company Strength (cont’d) Comparison with peers* - Good timing to buy Price/Book Value Sales (Trailing Twelve Months) 1,823.09 0.95 0.71 1,098.50 0.67 0.55 0.56 765.28 0.39 542.44 652.21 468.99 612.77 496.60 0.36 354.31 0.27 0.20 Sales Multiple to Cash flow Sales Growth Year over Year 16.82 1.42 1.2
Slide 9: Investment Grade Rating
Company Strength (cont’d) Investment Grade Rating China Gold International’s China National Gold Group’s Rating Rating BBB- BBB 9
Slide 10: Superior Financing Capability
Company Strength (cont’d) Superior Financing Capability US$500 million Date July 6, 2017 July 2017 - US$500 MM Bond Issue Credit Rating BBB- Price 99.663% • Second time CGG has successfully Coupon 3.25% per annum managed a bond offering in the international capital markets. Maturity July 6, 2020 Use
Slide 11: Effective Sep.10, 2018, China Gold is newly added to:
Company Strength (cont’d) Effective Sep.10, 2018, China Gold is newly added to: • China Gold International’s • Hang Seng Stock Connect Hong Kong inclusion as a Index constituent stock in the HIS demonstrates • Hang Seng Stock Connect Hong Kong recognition of the MidCap & SmallCap Index company’s mar
Slide 12: Jiama Polymetallic Mine
Company Assets and Prospect Jiama Polymetallic Mine One of China’s largest Polymetallic Mines COMMODITIES Copper, Gold, Silver, Zinc, Lead and Molybdenum JIAMA RESOURCES LOCATION Grade Contained Metal Ore Cu Mo Au Ag Pb Zn Cu Mo Au Ag Pb Zn 68 km NE of Resources (Mt) (%) (%) (g/t) (g/t) (%) (%) (kt)
Slide 13: Jiama Mine
Company Assets and Prospect (cont’d) Mining operation data Jiama Mine January 30, 2019 daily data Jiama Average copper ore grade* 0.71% Copper recovery rate* 73% Production improvement Phase 1 OP/UG mining ratio 100% Underground underway, aim for higher Phase 2 OP/UG mining ratio 35% Underground；65%
Slide 14: Tremendous potential in Jiama Mine
Company Assets and Prospect (cont’d) • Drilling program progress • Completed in 2018: 10,000 metre • Plan in 2019: 36,720 metre Tremendous potential • Began conversion of Phase 1 Processing in Jiama Mine Plant to treat copper-lead-zinc ore • Process capacity of 7,000 tonnes per day upon completion •
Slide 15: CSH Gold Mine
Company Assets and Prospect (cont’d) CSH Gold Mine • Well-established infrastructure with excellent access to roads and sufficient supplies of power, water and One of China’s largest gold local labor mines • Open pit re-design for optimization is underway COMMODITIES Gold dore with silver by-product
Slide 16: CSH Gold Mine current status
Company Assets and Prospect (cont’d) CSH Gold Mine current status • In order to optimize the economic value and increase the stability of the pit wall, the company has • Extended the mine life by 2 years and reduced the production forecast accordingly to the revised mining plan • Reduced the inclina
Slide 17: Accretive Acquisition Strategy
Company Growth Strategy Accretive Acquisition Strategy • Accretive to current shareholders VALUATION • Target traded at a deep discount to current asset value • Established mining jurisdictions PROPERTY GEOGRAPHY • Stable political environment ACQUISITION CRITERIA RESOURCES/ • Large-scale mines: 3-5
Slide 18: High Standard of CSR and HSE
High Standard of CSR and HSE Achieving sustainable development through corporate social responsibility • China Gold International has contributed total of US$124 million (783 million RMB ) in the area of corporate social responsibilities since 2010 • Environmental protection • Support to local schoo
Slide 19: High Standard of CSR and HSE (cont’d)
High Standard of CSR and HSE (cont’d) Actively involved in mining related environmental protection and charitable activities in Canada • Supporting two environmental protection research projects from UBC • Treatment of Effluents from Artisanal Gold Mining and Investigation in the Bioavailability of
Slide 20: Company Awards
Company Awards 2017 National Enterprise Management Modernization Innovation Achievements Award - by China Enterprise Confederation, Enterprise Reform Bureau of SASAC, Industrial Policy Department of Ministry of Industry and Information Technology, and SME Bureau 2016 Outstanding Group of “Twelfth Fi
Slide 21: Outlook
Outlook • Increase production in 2019 • Projected copper production of 132 million pounds • Projected gold production of 210,000 ounces • Increase ore grade from Jiama • Higher profitability • Aggressively looking for potential acquisition targets 21
Slide 22: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | HKEX: 2099 Contact Us: info@chinagoldintl.com | chinagoldintl.com 22