Mining Americas Inc. · TSX:MAI
Mining Americas — Minera Alamos — Adelaide Capital Markets 2019
24 slides from Mining Americas's conference presentation, Sep 26, 2019
Slide 1: Proven Mine Development Team
Proven Mine Development Team Building The Next Mid-Tier Gold Mining Company September 26TH 2019 Adelaide Capital Markets TSX-V: MAI
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that Minera Alamos believes, expects or anticipates will or may occur in the future are forward-lookin
Slide 3: Investment Thesis
Investment Thesis Why invest in us? Multi-leveraged! We are We are at PROVEN BUILDERS DEVELOPMENT STAGE • 3 successful mines put into production in last 12 years • 100 % Owned Assets • Strong operational expertise in heap leach mining • 2 high-quality, open pit development-stage assets • Ability to
Slide 4: Company snapshot
Capital Structure Company snapshot Capital Structure Shareholder Distribution Ticker TSXV:MAI Osisko Gold Royalties 13% Donald Smith Value Share Price (as of September 2nd, 2019) C$0.185 Fund 10% Basic Shares Outstanding 376.1M Retail & other Aegis Financial Options 27.1M 56% 5% Warrants 3.0M Fully
Slide 5: Management & Board of Directors
The Team Management & Board of Directors Darren Koningen • +20 years of engineering/metallurgical experience and led the development of Castle Gold’s El Castillo project prior to its sale to Argonaut CEO and Director • Designed, constructed, commissioned and operated two gold heap leach operations i
Slide 6: Castle Gold 2.0 – Tighten your bootstraps
The Concept Castle Gold 2.0 – Tighten your bootstraps • Team behind Castle Gold 600% • In 2008, built the El Castillo gold Improved use of capital mine in Mexico with initial Capex Shortfall (As % Of Mkt Cap) MAX production of 25,000 oz/y for just US$7 million CAPEX FF 400% ER ORG • Starting resourc
Slide 7: High Quality Assets
High Quality Assets Santana – 100% owned La Fortuna – 100% owned Los Reyes – Equity Exposure TSX-V: MAI
Slide 8: Mexican gold development project pipeline
Property Summary Mexican gold development project pipeline SANTANA (Permitted – Construction Imminent) • Bulk test mining phase successfully completed • Preliminary engineering and design work completed • Received Approval of its EIS on August 8th, 2019 LA FORTUNA (Permitting drawing to a close) • R
Slide 9: Santana Project: Near-term production opportunity
Santana Project Near-term production opportunity Low CAPEX heap leach development project with bulk test mining completed and EIS approved Location/Infrastructure • Sonora State, Mexico; 100% owned; 8,500 ha • Accessible by paved highway • 50 km SW of Alamos Gold’s 3M oz Mulatos Gold Mine Mine Plan/
Slide 10: Santana Project: Bulk test mining completed
Santana Project Bulk test mining completed Test Mining Results • ~50,000 t mined • Recovered gold values +0.67 g/t; +1,000 oz gold produced (additional residual gold still being recovered) • Various crush sizes tested <1/2”-5/8” up to 3” resulting in consistent recoveries across test sizes • Excelle
Slide 11: Santana Project: Commercial production designs completed
Santana Project Commercial production designs completed Proposed gold heap leach operations site arrangement The Company advises that it has not made a production decision and that although it is advancing the project towards such a decision it does not have a Feasibility Study of mineral reserves d
Slide 12: Santana Project: Exploration potential
Santana Project Exploration potential (10,000 m planned in 2019) Potential to define a significant gold mineral district (>1-2MMoz potential) • Multiple targets, known zones appear to be open along strike and to depth • 2018 surface work resulted in the discovery of numerous new Nicho-style breccia
Slide 13: La Fortuna Project: PEA (released August 2018)
La Fortuna Project PEA (released August 2018) A high-grade, low-CAPEX open pit operation with significant resource expansion potential – Notice of Permit Approval received. Location • Durango State, Mexico; 100% owned • ~6,200 ha Infrastructure • Easily accessible via a 100 km road from Culiacan, th
Slide 14: La Fortuna Project: PEA – Economic summary
La Fortuna Project PEA – Economic summary Pre-Tax NPV (7.5%) US$103.8M Pre-Tax IRR After-Tax NPV (7.5%) 122% US$69.8M 93% After-Tax IRR 93% STRONG IRR After-Tax Pre-Tax Payback Period 9 months After-Tax Payback Period Ave. Annual Production 11 months 43k oz Au, 220K oz Ag 1,000 t Cu (50k oz AuEq) $1
Slide 15: La Fortuna Project: Initial starter zone
La Fortuna Project Initial starter zone High-Grade High-Margin Starter Pit • +300k oz resources currently defined • Majority of resource grades 3.5-4.0 g/t Au • Wide zones of mineralized breccia • Metallurgical testing demonstrated +90% Au recoveries Processing Capacity • 2,000 tpd mill acquired Ope
Slide 16: La Fortuna Project: Exploration potential
La Fortuna Project Exploration potential • Multiple zones of “La Fortuna-style” mineralization identified • Some alteration zones (e.g. PN Prospects area) are significantly greater in scale than those present at La Fortuna • No systematic exploration since 2008/9 Zone Description Ramada • Parallel f
Slide 17: Los Reyes: Equity Interest and Indirect Exposure
Los Reyes (formerly Guadalupe de los Reyes Project) Equity Interest and Indirect Exposure 16.1% equity interest in Prime Mining advancing the project development Terms of the Assignment • Enables MAI to continue to support the advancement of GDR through active Board level participation and through o
Slide 18: Execution – a busy 4 months
Real business in action Execution – a busy 4 months Warrant Overhang (66M) Impacting Share Price Appreciation 63 Million Warrants Exercised or Expired Santana Change of Land Use Application – End of June Guidance On schedule completion June 27th 2019 Full Santana Permit Issuance – End of September G
Slide 19: Valuation Proposition
Valuation Proposition TSX-V: MAI
Slide 20: Path to a mid tier producer
Growth Model Path to a mid tier producer >150,000K Acquire per annum 3rd asset • 40-45M (USD) CAPEX Santana for all projects • Average 650 AISC (USD) La Expansion • Targeting +/- 500k quality ounces • Low Capex Santana Fortuna • Low Capex build supported by internal cash flow • Large land package •
Slide 21: Production Profile
Economics Production Profile Resource/Production Growth at Operating Mines* and Company Projections* * Resource Expansion 21 TSX-V: MAI
Slide 22: Strong Cash Flow
Economics Strong Cash Flow 22 TSX-V: MAI
Slide 23: Undervalued Vs. Peer Group
Comps P/NAV Undervalued Vs. Peer Group Broad Developer Peer Group | P/NAV 0.90x Re-rating opportunities from: 0.80x 0.80x 0.77x 0.74x • Organic Production growth 0.70x • Resource Expansion (~ <$10/oz discovery cost) 0.61x 0.60x 0.60x 0.59x 0.55x 0.49x 0.48x 0.50x 0.47x Average; 0.47x 0.47x 0.46x 0.4
Slide 24: Executing – The next 12 months
Real business in action Executing – The next 12 months Santana Mine Construction Santana - Royalty/Debt Santana- Start of Funding Package for Mining Operations Project Capex Santana- Phase 2 Exploration Ongoing - Results - La Fortuna - Permit Issuance / Finalize Debt Negotiations Ongoing Evaluation