Bear Creek Mining — Shareholder Meeting (May 2012)
24 slides from Bear Creek Mining's shareholder meeting presentation, May 22, 2012
Slide 1: AGM May 22, 2012
AGM te May 22, 2012 BEAR CREEK MINING CORPORATION
Slide 2: Regulatory Notes
Regulatory Notes All of Bear Creek’s exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of Marc Leduc, P. Eng., COO and the President and CEO, Andrew Swarthout, P.Geo., who serve as the Qualified Persons under th
Slide 3: Stock Chart 2011
TSX-V: BCM BLV: BCM Historic Chart for Cdn:BCM by Stockwatch.com 604.687.1500 - (c) 2011 Fri Dec 30 2011 Op=3.40 Hi=3.58 Lo=3.40 Cl=3.54 Vol=248.062 Year hi=12.00 lo=3.16 Cdn:BCM Na Wl I Volume Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec 2014 BEAR CREEK MINING CORPORATION
Slide 4: Mission
Mission Bear Creek’s mission is to build a growth oriented large cap silver mining company with production by the year 2015 • Over 500 million ounces of silver discovered plus an additional 300 million ounces of silver equivalent based upon recovered base metals • Over 60% (333M oz) in Reserves • Fo
Slide 5: Current Projects
Current Projects DIVERSIFIED PROPERTY PORTFOLIO CONTAINS: • BCM shareholders hold 5.4 ounces silver per share PERU • Corani – World class silver deposit Positive feasibility completed: permitting initiate H1 Yanacocha 2012 TRUJILLO Alto Chicama • Santa Ana – Advancing to development - Feasibility co
Slide 6: Combined Projects NPV @ 5%
Combined Projects NPV @ 5% Corani and Santa Ana Combined Economic Results at Different Metal Prices ‐ after tax $2,500 50% 45% $2,000 40% 35% NAV @ 5% discount rate $1,500 30% IRR IRR (%) 25% $1,000 20% NPV @ 5% 15% Corani NPV @ 5% $500 10% 5% $0 0% $15 $16 $17 $18 $19 $20 $21 $22 $23 $24 $25 $26 $2
Slide 7: Corani - Location
Corani ‐ Location PERU Yanacocha TRUJILLO Alto Chicama Pierina Corani LIMA CUSCO NAZCA Orcopampa AREQUIPA
Slide 8: Corani – Silver – Lead – Zinc Deposit
Corani – Silver – Lead – Zinc ‐ Deposit Oct 11’ Reserves • Proven/Probable • 270M oz silver • 3.1 billion lbs lead • 1.7 billion lbs zinc New Mineralization Currently being drilled (see news release dated 10/11/11 ) • 89 M oz silver in resources • Working on exploration & engineering drilling
Slide 9: Proven and Probable Reserves
Proven and Probable Reserves Defined in Feasibility Study, Dec. 2011
Slide 10: Corani Reserve/Resource Statement
Corani Reserve/Resource Statement Mineral Reserves, $10.54 NSR cut-off Contained Metal Equivalent Ounces Silver Lead Zinc Category Ktonnes Silver Lead Zinc Million Million Million Eq. Silver Eq. Silver Gm/t % % Ozs Lbs Lbs Million Ozs Gm/t Proven 30,083 66.6 1.04 0.60 64.4 690.4 399.9 115.7 119.6 Pr
Slide 11: Corani Feasibility Study
Corani Feasibility Study • Proven and probable mineral reserves of 270 million ounces of silver, 3.1 billion pounds of lead and 1.7 billion pounds of zinc • 13.4M ounces Ag per year for the first 5 years, 8M opy life of mine (20 years) • Ag Eq. per ounce basis, 23.0M opy for the first five years & 1
Slide 12: Initial Capital Costs
Initial Capital Costs Item Amount ($ millions) Concentration Plant 118.2 General Site 47.1 Off Site / Ancillaries 35.7 Tailings and Water Supply 80.2 Crushing 15.0 Construction Indirects 38.7 EPCM 48.0 Commissioning, Spares and First Fills 10.5 Mine Equipment 57.7 Pre‐strip and Mine Development 26.6
Slide 13: Corani Feasibility Study Economics
Corani Feasibility Study Economics • Base case net present value (“NPV”) (after tax) is $463 million @ 5% discount rate & IRR of 17.6% ($18/oz Ag, $0.85/lb lead & $0.85/lb zinc) • Current spot prices, NPV is approx. $1.5 billion @ 5% discount & IRR of 38% (after tax) • Base Case NPV (pre‐tax) $907M
Slide 14: Corani Community
Corani Community • Health and nutrition programs • Local hire policy
Slide 15: Santa Ana – Pure Silver Mine
Santa Ana – Pure Silver Mine PERU Yanacocha TRUJILLO Alto Chicama Pierina Corani LIMA CUSCO Sumi NAZCA La Yegua Orcopampa AREQUIPA Tassa Santa Ana
Slide 16: Santa Ana Objectives and Challenges
Santa Ana Objectives and Challenges • Recover rights rescinded by Garcia administration in June 2011 • Bear Creek still owns titles to the mineral rights • Initial talks with new Peruvian administration are positive • Bear Creek’s legal standing is strong, and; • Government sending positive signals
Slide 17: Santa Ana Value
Santa Ana Value • 11 year mine life producing 47.4 million ounces of silver • at recent silver prices, easily expandable to 18 year mine life, producing 75 million ounces of silver • $330 million in taxes & royalties paid at current prices and creation of 600 direct and 1500 indirect jobs • Pure sil
Slide 18: Santa Ana Community
Santa Ana Community • Farming programs including vaccination and herd improvement programs • Education supplies and programs • Water improvement projects
Slide 19: Bear Creek Exploration Upside
Bear Creek Exploration Upside • Tassa Silver‐Gold Project: • 16kms from Chucapaca discovery (Goldfields) containing 6M oz Au, 46M oz Ag, and growing • Phase I drilling intersects 60m averaging 111 g/t silver at surface • Phase II drilling underway • Sumi Gold Project: • Surface sampling up to 15 g/t
Slide 20: Bear Creek – Vision Forward
Bear Creek – Vision Forward 2012 2013 2014 2015 Advance Start of Complete Lead Order Corani Submit EIA Permitting Financing Items Construction Commercial Options Production Santa Negotiations in 1 year build out Cash flowing $79M/yr progress to recover upon completion ($28.75 Ag) less than 1 Ana rig
Slide 21: Reserve – Resource Comparison
Reserve – Resource Comparison
Slide 22: Summary
Summary • Two advanced projects containing over 400M oz silver (700M oz eq. Ag), not including inferred (100M oz Ag) • Over 333M ounces Ag in Reserves • Capable of producing 15M‐20M oz Ag/year (top 5 silver mines average 19M oz Ag/year) • Rare asset‐class, scarcity of multi‐hundred million ounce sil
Slide 23: Share Capitalization/Cash Position
Share Capitalization/Cash Position ISSUED AND OUTSTANDING (as of May 18/12) 92,161,639 shares Employee stock options 5,595,700 (Exercise prices from Cdn.$1.24 – Cdn.$10.77) FULLY DILUTED 97,757,339 shares Insiders approx. 4% 3,526,066 shares Sprott approx. 9.95% 9,172,066 shares Silver Wheaton appro
Slide 24: Directors & Management
Directors & Management CATHERINE MCLEOD‐SELTZER ‐ Chairman, Director ANDREW SWARTHOUT – Chief Executive Officer, Director MARC LEDUC – President, Chief Operating Officer DAVID DE WITT – Director DR. MIGUEL GRAU – Director KEVIN MORANO – Director NOLAN WATSON – Director FRANK TWEDDLE – Director ELSIA