China Gold International Resources Corp. Ltd. · HKEX:2099
China Gold International Resources — FY2021 Earnings Presentation
35 slides from China Gold International Resources's earnings presentation, April 2022
Slide 1: 2021 Annual Results Announcement
TSX: CGG | HKEX: 2099 Enter New Stage of Operations Maintain Strong Growth Momentum 2021 Annual Results Announcement April 2022
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: Company Overview
Company Overview 2021 Annual Results Key Operational Metrics Company Advantages 03
Slide 4: Company Overview
Company Overview The Oversea Listed Company For State Owned Enterprise • CGG has two large, stable producing gold and copper mines, Chang Shan Hao (CSH) Gold Mine has been in profitable gold production with potential to expand mine life; Jiama Phase II has reached stable cashflow after initial CAPEX
Slide 5: Company Overview (Cont'd): Capital Structure
Company Overview (Cont’d) Capital Structure MAJOR SHAREHOLDERS TSX HKEX 40.01% China National Gold Group Co.Ltd 2.58% Dimensional Fund Advisors. Listing CGG Listing 2099 2.12% Mirae Asset Global Investments 0.1% IFM Independent Fund Management 0.07% American Century Companies Inc • Total outstanding
Slide 6: Enter New Stage of Operations
Company Overview (Cont’d) Enter New Stage of Operations Successfully Entered Shenzhen- Hong Kong Stock Connect 2nd time declared special dividends: US$ 100 million US$ 0.25 per common share December,2021 March,2022 Jiama Q2 Production: Copper: 52.6 million lbs Gold: 34,055 ounces Turning point Net p
Slide 7: Highest Dividend Yield Amongst Peer Group & Lowest Multiples
Company Overview (Cont’d) Highest Structure Capital Dividend Yield Amongst Peer Group (+6%) & Lowest Multiples Production Return on Enterprise Company Ticker Yield Market Cap P/B P/E (koz gold) EPS Debt/Equity Equity Value EV/EBITDA China Gold CGG 6.50% $1,520 0.86 5.67 244 $0.67 0.53 16.00% $1,822
Slide 8: 2021 Annual Results
Company Overview 2021 Annual Results Key Operational Metrics Company Advantages 08
Slide 9: Earnings Hit Record High
2021 Results Continues to Maintain Robust Growth (Cont’d) Earnings Hit Record High • Revenue increased by 32% to US$ 1.137 billion from 2020； Annual Increase/ 2021 2020 Performance decrease • Mine operating earnings increased by 92%,increased to US$ 404 million； Revenue (US$ MM) $1,137 $864 +32%↑ •
Slide 10: Steady Growth In Production
2021 Results Continues Robust Growth (Cont’d ) Steady Growth In Production Gold Production (ounces) • Total gold production slightly 240,848 244,312 increased to 244,312 ounces 234,667 in comparison with the same 215,158 214,715 period in 2020, due to the stable production of CSH gold mine; 2017 201
Slide 11: Increasing Production And High Metal Prices Driving Revenue Growth
2021 Results Continue to Maintain Robust Growth (Cont’d ) The Increasing Production And High Metal Prices Are Driving The Growth Of The Revenue • Revenues increased by 32% to US$11.37 billion in 2021; the compound annual growth rate reached 13.84% for the past ten years. 1137 2011-2021 Revenue (US$
Slide 12: Earnings Hit Record High
2021 Results Continues to Maintain Robust Growth (Cont’d ) Earnings Hit Record High Mine Operating Earnings (US$ MM) Gross Profit Margin • Net income of US$ 404 36% 269 million increased by 136%, representing in significant growth in 24% 210 profitability; • The net profit margin in 2021 was 24%, on
Slide 13: Strong Operational Cash Flow
2021 Results Continue to Maintain Robust Growth (Cont’d ) Strong Operational Cash Flow Cumulative Net cash flow from operating activities 417.27 (US$ MM) US$ 1.421 Billion • Cumulative operation 260.46 cash flow has increased 158.31 to US$1.42 billion since 154.94 2012, and US$ 417 98.55 77.13 milli
Slide 14: Excellence in Financial Structure
2021 Results Continue to Maintain Robust Growth (Cont'd ) Excellence in Financial Structure Total Assets (US$ MM) • Cash Balance at 3,323 December 31, 2021 3,257 was US$ 208 million； There repayment of borrowings was US$ 228 million in 2021; • The debt to asset ratio 2020 2021 reduced by 8% to 44% f
Slide 15: Key Operational Metrics
Company Overview 2021 Annual Results Key Operational Metrics Company Advantages 15
Slide 16: Jiama Copper-Gold Polymetallic Mine
Jiama Copper-Gold Polymetallic Mine 16
Slide 17: Abundant Resource Reserves Support Long-term Production
Jiama Copper-Gold Polymetallic Mine (Cont’d) Abundant Resource Reserves Support Long-term And Large-scale Production COMMODITIES JIAMA RESOURCES Copper, Gold, Silver, Zinc, Lead and Molybdenum Grade Contained Metal Ore Cu Mo Pb Zn Au Ag Cu Mo Pb Zn Au Ag Resources (Mt) (%) (%) (%) (%) (g/t) (g/t) (k
Slide 18: Reached Design Capacity And Maintained Stable Production
Jiama Copper -Gold Polymetallic Mine (Cont’d) Reached its Design Capacity And Maintained Stable Production Copper production Ore processed (mm lbs) (tonnes) 16,304,513 190.5 181 14,990,810 2020 2021 2020 2021 18
Slide 19: Optimization And Enhancement Of Recovery Rate
Jiama Copper-Gold Polymetallic Mine (Cont’d) Optimization And Enhancement Of Recovery Rate Recovery Increase/ rate 2021 2020 decrease % Copper Recovery Rate Gold 66 70 -6%↓ • In 2021 , copper recovery 85% 82% rate continue to improve, Silver 65 61 +7%↑ and increased by 4% to 85% comparing with 2020;
Slide 20: Copper Cost
Jiama Copper-Gold Polymetallic Mine (Cont’d) Copper Cost Total Production Cost & Cost • 2021 Jiama production cost after by-product credit slightly raised in comparison with （US$/lb） previous year, mainly due to 2.96/1.42 2.8/1.04 adjustment of the production plan, boosting utilization of low- grade
Slide 21: Increased Utilization Of Low Grade Ores
Jiama Copper-Gold Polymetallic Mine (Cont’d) Taking Advantages Of High Metal Price, Jiama Increase The Utilization Of Low Grade Ores • As second half of 2021, Increase/ Jiama mined low grade Selected grade 2021 2020 decrease hornfels in the open pit； • Jiama underground level Copper(%) 0.63 0.67 -6%
Slide 22: Continuously Surpass Capacity, Significantly Contributed Profitability
Jiama Copper-Gold Polymetallic Mine (Cont’d) Continuously To Surpass Capacity , Significantly Contributed Profitability Revenue Mine operation earnings Earning before tax (US$ MM) (US$ MM) (US$ MM) 366 871 294 604 158 101 2020年 2021 2020 2021 2020 2021 22
Slide 23: Drilling Updates
Jiama Copper-Gold Polymetallic Mine (Cont’d) Drilling Updates • The 2021 exploration program for Jiama Mine planned for 12 drill holes totaling 17,418 meters； • As of the fourth quarter of 2021, a total portion of three drill holes for 2,811.72 meters have been completed, with completed assay of 971
Slide 24: Chang Shan Hao Gold Mine
om, PHREERARARAA China Gold International Resources Corp Ltd Chang Shan Hao Gold Mine 24
Slide 25: One Of China's Largest Gold Mines
CSH Gold Mine (Cont’d) One Of China’s Largest Gold Mines CSH MINE RESOURCES COMMODITIES Quantity Grade Metal Metal Resources Gold dore with （Mt） （Au g/t） （Au t） （Au Moz） silver by-product Measured 0.93 0.43 0.40 0.01 Indicated 94.62 0.62 58.52 1.88 LOCATION Total M&I 95.55 0.62 58.92 1.89 210km NW o
Slide 26: 2021 Production Indicators
CSH Gold Mine (Cont’d) 2021 Production Indicators Gold Production Ore mined （ounces） （tonnes） 13,182,193 11,508,406 149,572 148,082 Office Building 2020 2021 2020 2021 Gold Grade Accumulated recovery rate （g/t） Raw Ore Depot 0.57 55.39% 0.54 54.99% 2020 2021 2020 2021 Crushing Stations 26
Slide 27: Cost Analysis
CSH Gold Mine (Cont’d) Cost Analysis • In 2021, CSH mine mitigated the effect of low grade ores by improving the gold recovery rate and increasing tonnage Cash Cost processed； （US$/OZ） • The fluctuation of exchange All-in Sustaining Cost 1062 rate change push up the 942 （US$/OZ） 1167 cost that is de
Slide 28: Exploration Success in 2021, Potential to Expand Mine Life
CSH Gold Mine (Cont’d) Exploration Success in 2021， Potential to Expand Mine Life + Mineral Resources in 2022 in the first quarter of 2021, a total of 7 drill holes with 4,654.35 meters were completed at Data processing, interpretation and the southwest zone; modelling ,exploration work for the A to
Slide 29: Company Advantages
Company Overview 2021 Annual Results Key Operational Metrics Company Advantages 29
Slide 30: Multiple Highlights 2022 Onwards
Multiple Highlights 2022 Onwards China Gold International Well Positioned Jiama mine has abundant reserve of 30+ years, with production at full capacity; CSH gold mine focus on the development of potential down-deep mineral resources; both ongoing Strong cashflow, low cashflow and expansion cost of
Slide 31: Ability to Raise Sizable Financing at Low Cost
Company Advantages (Cont’d) Ability to Raise Sizable Financing at Low Cost with Investment Grade Rating In 2015, the Group received a in 2020, a loan of syndicated credit of RMB3.98 aggregate principal amount billion (US$613 million) led by of RMB 400 million from Bank of China, with the interest Ch
Slide 32: Company Advantages: Strong R&D system
Company Advantages (Cont’d) Strong R&D system The technical standard of drip leaching of buried Jiama started underground operation of pipes in alpine areas established by CSH is the unmanned electric locomotive transportation standard that approved by the Ministry of system. Great Industry and Info
Slide 33: More responsible and sustainable mining company
Company Advantages (Cont’d) More responsible and sustainable mining company 33
Slide 34: Target Selection With Strong Support From Major Shareholder
Company Advantages (Cont.d) Target Selection With Strong Support From Major Shareholder • The Major PROJECT PHASE • Mines at operating stage with ramp up potential or near shareholder is TARGET production committed to assets • Mature exploration or high quality mine assets under injection into China
Slide 35: Contact Information
Contact Information China Gold International Resources Corp. Ltd. TSX: CGG | HKEX: 2099 Contact US： info@chinagoldintl.com | chinagoldintl.com 1 35
China Gold International Resources — FY2021 Earnings Presentation on 6ix