Panoro Minerals Ltd. · TSXV:PML
Panoro Minerals — Investor Presentation (May 2022)
34 slides from Panoro Minerals's investor presentation, May 2022
Slide 1: Creating Value Across the Cycle in Peruvian Copper
CREATING VALUE ACROSS THE CYCLE IN PERUVIAN COPPER: EXPLORATION, PROJECT SALES AND ULTIMATELY PRODUCTION TSX-V: PML Corporate Presentation BVL: PML May 2022 OTC: POROF BORSE: PZM
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTION REGARDING FORWARD LOOKING STATEMENTS: Information and statements contained in this presentation that are not historical facts are “forward-looking information” within the meaning of applicable Canadian securities legislation and involve risks and uncertainties. Exa
Slide 3: Twelve Years of Success in Peru
Twelve Years of Success in Peru • Panoro is poised to become a major Peruvian copper company • Sold Antilla Project for upfront $20 million with up to $100 million plus milestones contingent • Major regional exploration with exciting potential • Current flagship project - Cotambambas - in Pre-feasib
Slide 4: Support of Major Partners
Support of Major Partners • Hudbay Minerals is Panoro’s largest Shareholder • Owns 11.8% • Since 2011 • Acquired project in Peru from PML for $5 million plus 2% royalty • Streaming deal with Wheaton Precious Metal • $US 140 M advance payment • $US 14 M paid from 2016 to 2023 in semi annual payments
Slide 5: Capital Structure & Share Performance
Capital Structure & Share Performance TSX-V:PML Tickers BVL:PML BORSE:PZM OTC:POROF Share Price $0.17 52 Week Low-High $0.11 - $0.21 Shares Issued 264.4M Options 11.3M Fully Diluted 275.6M Market Capitalization Undiluted $45.0M Fully diluted $47.0M Cash $12.6M TSXV-PML Page 5
Slide 6: Mining in Peru – Three Decades of Growth and Still Growing
Mining in Peru – Three Decades of Growth and Still Growing POLITICAL AND ECONOMIC STABILITY 1990 TO PRESENT • 12 Governments • 10 Political Parties • 10 Presidents GROWING MINING SECTOR • Mining Represents 10% of Peru’s GDP, Copper Mining accounts for 6%, 60% of exports1 • Over 95% of Cu Production
Slide 7: Peru's Southern Copper Cluster
Peru’s Southern Copper Cluster - Chile (#1) and Peru (#2) account for approximately 40% of global copper production - Peru doubled copper production from 2012- 2016 - More than $US20 billion invested into new or expanded copper mines in southern Peru. - Cotabambas Project to be next large-scale proj
Slide 8: Antilla Transaction: Accretive Shareholder Value via Project Sale
Antilla Transaction Advance Payment Accretive Shareholder • Scheduled Payments Value via Project Sale o $10 million, on closing o $2.8 million, 10 mo’s from closing (75%) o $7 million, 12 mo’s after drilling permit (90%) Plus • Contingent Payments o $10 million, if NPV > $US 310 million; or o $50 mi
Slide 9: Antilla Transaction – Breakdown of Payments
Antilla Transaction – Breakdown of Payments (CAD, unless indicated otherwise) Antilla Project NPV2 Total Advance Total NSR Total Payments (million USD) Payments Payments1 (million $) (million $) (million $) up to 310 20 up to 94 up to 114 310 to 360 30 up to 98 up to 128 Conservative above 360 up to
Slide 10: Cotabambas Project Pre-Feasibility
Cotabambas Project Pre-Feasibility • Commenced 2022 • Infill & Step-out Drilling • Metallurgical Testing • Technical studies • Completion 2023 NI43-101 Reports • Resource update • PFS Technical Report • Enhance Project Economics 1. Upgrade Inferred Resource to Indicated Category 2. Grow Resource ~ 1
Slide 11: Cotabambas Project PFS Drilling Program
Cotabambas Project PFS Drilling Program Two Stage Drilling Program Infill Drilling Step Out Drilling o Upgrade Inferred resource to Indicated o Include additional Sulfide and Oxide resource o 370 Mt upgrade o 90Mt @ 0.50% Cueq Primary Sulfides, plus o 20Mt @ 0.50% Cu Oxides PFS Drilling Plan Drillin
Slide 12: Forecasted Five Year Funding, No Share Equity Dilution
Forecasted Five Year Funding No Share Equity Dilution Total HCAC Funding Cotabambas Kusiorcco Antilla Currency Copper-Gold-Silver Copper Copper Stream NSR NSR Milestone Scheduled Contingent US$ CA$1 Advance Royalty Royalty2 2021 Cash 8.5 10.6 2022 1.5 1.5 ✓ - 2.4 - - 5.4 6.8 2023 1.0 - 5.6 - - 6.6 8
Slide 13: Cotabambas Project Resource
Cotabambas Project Resource Drill Company Year Metres Holes Antofagasta 1995 to 200 24 8,538 CDLM 2002 to 2007 10 3,252 Panoro 2007 to 2012 29 17,785 Panoro 2012 to 2013 81 40,467 Panoro 2013 to 2014 11 4,946 Panoro 2017 to 2018 36 8,805 Panoro 2019 5 997 Total 196 84,790 Cutoff Resource Million Cu
Slide 14: Cotabambas Project Resource: Hole CB-68-12
Cotabambas Project Resource From to Length Hole ID %Cu Au g/t Ag g/t %Mo CuEq% (m) (m) (m) CB-68-12 0.00 1181.80 1181.80 0.32 0.098 2.657 0.0068 0.41 incl. 0.00 965.10 965.10 0.36 0.11 2.76 0.0080 0..46 incl. 0.00 782.30 782.30 0.38 0.12 2.18 0.0094 0.49 incl. 12.00 96.50 84.50 0.76 0.10 1.68 0.0008
Slide 15: Cotabambas Project Resource: Hole CB-43-11
Cotabambas Project Resource From to Length Hole ID %Cu Au g/t Ag g/t %Mo CuEq% (m) (m) (m) CB-43-11 2.00 76.00 74.00 0.06 1.17 5.00 0.0010 0.96 “ “ 76.00 168.35 92.35 1.55 0.51 3.21 0.0012 1.95 incl. 119.25 168.35 49.10 0.62 0.34 2.95 0.0013 0.89 incl. 80.00 119.25 39.25 2.82 0.68 3.15 0.0010 3.34 i
Slide 16: Cotabambas PEA Estimates
Cotabambas PEA Estimates COTABAMBAS2 KEY PROJECT PARAMETERS CU/AU/AG (IN USD CURRENCY) PROJECT (GROWTH TARGETS) Mill Feed, life of mine million tonnes 483.1 Mill Feed, daily tonnes 80,000 Strip Ratio, life of mine waste: process feed 1.25 : 1 NPV7.5% million USD 683 After Tax IRR % 16.7 @ PEA Prices
Slide 17: Cotabambas Project Targeting Growth
Cotabambas Project Targeting Growth S E P T E M B E R 2 0 1 5 P E A CASH COSTS, NETS OF BY BEFORE TAX PRODUCTS CREDITS $1,052M NPV C1 $1.22/lb Cu 20.4 % IRR C2 $1.94/lb Cu 3.2 Year Payback AFTER TAX ANNUAL PAYABLE METALS $683M NPV 155 M lbs Cu 16.7 % IRR 95 k oz Au 3.6 Year Payback 1,018 k oz Ag LIF
Slide 18: Cotabambas Project – Growth Levers
Cotabambas Project – Growth Levers 1 2 3 Resource Growth Metallurgy Commodity Price Maria Jose Target Flotation - Transition & Oxide Zones 20 drill holes – 6,097 meters Cu + 48% Petra- David Target 9 drill holes – 1,236 meters Chaupec Target Au 5 drill holes – 993 meters + 46% Leaching - Oxide Zones
Slide 19: Cluster 1 and Cluster 2 Project Scale Expansion Potential
Cotabambas Project Cluster 1 and Cluster 2 Project Scale Expansion Potential CLUSTER 2 SECTION High Chargeability, ?Porphyry Stock? High Magnetics, ?Skarn? TSXV-PML Page 19
Slide 20: Cotabambas Project Potential Heap Leach SX/EW
Cotabambas Project Potential Table: Mineral Resources, Tetra Tech, October 2013 Heap Leach SX/EW 99.6 Mt @ 0.42 % Cu, 0.21 g/t Au, 2.43 g/t Ag Assuming same cutoff as for flotation Mineral Resources have an effective date of June 20, 2013 and were estimated by Qualified Person Robert Morrison, P.Geo
Slide 21: Cotabambas Project Leverage to Precious Metals
Cotabambas Project Leverage to Precious Metals Average 0.68 % Cueq Average 0.59 USD/lb Cu Average 123,500 t Average 130,900 oz TSXV-PML Page 21
Slide 22: Cotabambas Project Economics Enhanced at Spot Prices
Cotabambas Project Economics Enhanced February 23, 2022 Spot Prices Cotabambas Projects Economics Enhanced at February 23, 2022 Spot Prices February 23, 2022 PEA Metal Price Improvement After Tax Metrics Spot Metal Price Assumptions From PEA Net Present Value million USD $2,460 $683 360% IRR % 35.0%
Slide 23: Cotabambas Project Valuation Potential
Cotabambas Project Valuation Potential (USD unless indicated otherwise) PEA ADD: IMPROVE: ADD: INCREASE: Oxide Leach Mixed Zone High Grade Commodity SX/EW - 20 Mt Metallurgy Sulphides - 90 Mt Prices3 Net Present Value2 (million USD) $684 $1,224 $1,395 $1,970 $2,504 3.7 X IRR2 (%) 16.7% 23.5% 25.9% 2
Slide 24: Cotabambas Infill Drilling – Inferred to Indicated
Cotabambas Infill Drilling – Inferred to Indicated Objective: • North Pit and South North Pit Pit • Upgrade 370 Mt from Legend Inferred to Indicated PEA Pit Category Resources Pit Community bundary Infill Indicated Drill hole Executed • Meters: 12,000 South Pit • Drillholes: 44 TSXV-PML Page 24
Slide 25: Cotabambas Step-Out Drilling Plan
Cotabambas Step-Out Drilling Plan Objective: Maria Jose 1 Target Maria Jose 2 Target • Satellite Targets David • Delineate additional Target resources Guaclle Ccalla Target Legend • Sulfides & Oxides Target Petra PEA Pit Target Resources Pit Community bundary Step Out 1 Step Out 2 Drill hole Execute
Slide 26: Cotabambas Exploratory Drilling Plan
Cotabambas Exploratory Drilling Plan Guaclle Target Objective: Zone 1 • Exploration Targets • Delineate growth Chaupec potential Target Legend • Porphyry and Skarn PEA Pit Zone 2 Resources Pit Zone 3 Community bundary Exploratory Drillholes Cayracyoc Target Drill hole Executed • Meters: 2,000 • Dril
Slide 27: Cotabambas Project M&A Targets
Cotabambas Project M&A Targets Copper Outlook Report March 2021 Top Projects to Look out for • 65 Copper Development Projects Worldwide • 23 Projects Identified as Potential M&A Targets Copper Project M&A Report • Cotabambas Project Identified Among the Top Twelve December 2021 Luquman Shaheen; Pres
Slide 28: Focus for PML: NAV and Growth Potential
Cotabambas Project Focus for PML PML NAV - Current Cotabambas NAV Growth Potential PML Net Asset Value Cotabambas Project Net Asset Value $2.00 Benchmarked to Antilla Transaction $1.50 to $1.84 $7.00 Growth Potential Target $5.81 $1.80 per share $6.00 per share $1.60 NAV Leveraged to: DFS $0.97 to $
Slide 29: Panoro Minerals vs. Peer Group
Panoro Minerals vs. Peer Group Enterprise Value / lb Cueq 6 times Uplift Significant Valuation Rerating Potential from: 10 times 1. Antilla Transaction Benchmark 27.5 2. Cotabambas Project Growth Funding Uplift 26.1 21.8 17.3 9.5 8.2 6.8 4.4 5.1 2.8 3.0 3.0 3.2 3.6 0.4 0.6 0.8 0.8 1.0 1.2 1.4 1.6 1.
Slide 30: Resource Insitu Value (Billion USD)
February 28, 2022 spot prices, Resource Insitu Value Cu=4.50/lb, Au=1907/oz, Ag=24.40/oz (Billion USD) Cotabambas Resource Value: • 94% of Filo del Sol • 43% of Jose Maria 1.3 20.0 1.4 4.4 8.0 11.8 46.3 23.4 18.4
Slide 31: Market Capitalization (% In-situ Value)
Market Capitalization (% In-situ Value) 5.6% TSXV-PML Page 31
Slide 32: Management & Directors – Peru Experience
Management & Directors – Peru Experience MANAGEMENT DIRECTORS LUQUMAN SHAHEEN, PENG, PE, MBA – PRESIDENT & CHIEF EXECUTIVE AUGUSTO BAERTL – CHAIRMAN OFFICER & DIRECTOR Over 50 years of experience in the Peruvian and International Over 27 years experience in mining sector, 20 years Mining Sector expe
Slide 33: Panoro Minerals Focused on Cotabambas Project
Panoro Minerals Focused on Cotabambas Project Strategic Partners • Precious Metals Streaming • Major PML Shareholder Commencing Q1 2022 Pre Fully funded Feasibility 2022 Milestones Study 97 Drillholes, 25,000 m Metallurgical Optimization TSXV-PML Page 33
Slide 34: Contact Information
PAN@GRO MINERALS LTD COTABAMBAS PROJECT — a SE ~TSXV:PML_ ie _~ For further information, contact: OTCQB:POROF ~~ Luquman Shaheen, President and CEO BVL:PML Phone: 604.684.4246 Email: info@panoro.com BORSE:PZM Wwww.panoro.com