Skip to main content Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. Investor Presentation | Shale Experts
Loading...
Pm

Q1 2015 EARNINGS CALL – PRIMERO MINING CORP.

PRIMERO MINING CORP. · May 6, 2015 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 1
    First Quarter 2015 Results May 6, 2015
  2. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 2
    Management Participants Joseph Conway Chief Executive Officer 30 Years of experience Appointed President and CEO in June 2010 Former CEO, President & Director of IAMGOLD and Repadre Capital Ernest Mast President & COO 25 Years of…
  3. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 3
    Q1 2015 At a Glance Strong first quarter performance has positioned us to deliver the 20% production growth planned in 2015, building the foundation for strong cash flow and value creation for our shareholders. 54% 52% PRODUCTION…
  4. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 4
    SUFFICIENT LIQUIDITY TO FUND ORGANIC GROWTH Strong Financial Position TSX: P Exchanges STRONG LIQUIDITY NYSE: PPP 133M Balance Sheet (As at March 31, 2015) Cash 58 million Line of Credit4 75 million PRUDENT DEBT LEVEL…
  5. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 5
    Strong Financial Results (US thousands, Q1 Q1 except per share amounts) 2015 2014 Revenue (US millions) Revenues 73,310 48,269 +52% 73 Earnings from mine operations 11,470 9,481 Net income (loss) 3,584 (8,253) 48 EPS 0.02 (0.06)…
  6. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 6
    Production Increased by 54% over Q1 2014 Q1 Q1 Operating Results 2015 2014 Production (AuEq koz) 7 Gold equivalent production 61,073 39,758 (gold equivalent ounces) +54% 61 Gold production 54,365 32,278 (ounces) 7 Silver…
  7. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 7
    Record Quarter at San Dimas Q1 Q1 2015 2014 San Dimas Production (AuEq koz) 8 Mill throughput 2,863 2,206 (tonnes per day) +31% 7 Gold equivalent production 47 46,569 35,662 (gold equivalent ounces) 7 Gold production 39,861 28,182…
  8. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 8
    Black Fox Focused on Transition to Underground Q1 Q1 2015 2014 Black Fox Production (March 5 31, 2014) (Au koz) 8 +9% Mill throughput 2,121 1,538 (tonnes per day) 14.5 13.3 2 Gold production 14,504 4,096 (ounces) Gold grade…
  9. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 9
    Production To Increase By Up To 20% In 2015 Guidance Black Fox San Dimas 2015 Targeted Production 7,10 Growth Profile (AuEq koz) Attributable 300-350 75,000- 175,000- 250,000- Black Fox production7 85,000 185,000 270,000 San Dimas…
  10. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 10
    Diversified, Stable, Mining Friendly Jurisdictions 30% CANADA 2015E PRODUCTION BY Black Fox Mine REGION TIMMINS, ONTARIO Grey Fox Project 70% TIMMINS, ONTARIO MEXICO Operating in attractive mining jurisdictions with: San…
  11. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 11
    MEXICO Platform Asset with Exploration Pipeline Production Details LOCATION Sinaloa-Durango, Mexico San Dimas 2015E OWNERSHIP 100% (silver stream7) METALS Gold & Silver 180,000 AuEq oz 7 MINING Underground 865 per oz 2,9…
  12. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 12
    SAN DIMAS The Companys Foundation LOCATION Sinaloa-Durango, Mexico Mexico OWNERSHIP 100% (silver stream7) METALS Gold & Silver MINING Underground CAPACITY 2,500 TPD (nameplate) San Dimas Mine PRODUCTION7,11 175,000-185,000 AuEq…
  13. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 13
    SAN DIMAS Expanding Production in 2015+ Production Increasing by up to 20% in 2015 Improving Productivity Mill expansion to 3,000 TPD underway Mill operating above nameplate capacity Mined grade increasing to 5.0 g/t in 2015…
  14. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 14
    SAN DIMAS Established Infrastructure Main Haulage Drift Infrastructure Over 500 km of lateral development Strategic tunnels connecting Central Block to Sinaloa Graben will reduce haulage costs Low Development Costs of 1,500/metre…
  15. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 15
    SAN DIMAS Expansion to 3,000 TPD Construction San Dimas Mill Throughput (TPD) Mill expansion to 3,000 TPD began in Q1 3,000 2015 and is expected to be completed by Mill Expanded to 3,000 TPD Actual mid-2016 Forecast Mine at 2,500…
  16. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 16
    SAN DIMAS Significant Exploration Upside Perez Vein Intercepts include 7.4 g/t gold and 528 g/t silver over 11.9 metres Jessica Vein Discovery Not included in 2014 Resource estimate, currently being mined Open along 225 metres…
  17. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 17
    CANADA Multi-Million Ounce Gold District Production Details LOCATION Timmins, Ontario Black Fox 2015E OWNERSHIP 100% (8% gold stream7) METALS Gold 80,000 Au oz 7 MINING Open pit & Underground 1,100 per oz 2,9 CAPACITY 2,200…
  18. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 18
    BLACK FOX COMPLEX District Wide Proven Depth Potential LOCATION Timmins, Ontario Timmins, Ontario OWNERSHIP 100% (8% gold stream7) METALS Gold MINING Open pit & Underground CAPACITY 2,200 TPD PRODUCTION7,11 75,000-85,000 oz CASH…
  19. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 19
    BLACK FOX COMPLEX Established Mining Complex with Exploration Upside Optimization Plan Mining Complex with Upside Opportunity Replacing low-grade open-pit ounces with high-grade underground ounces Building underground long-hole stop…
  20. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 20
    BLACK FOX MINE Focused on Reserve & Resource Development Central Zone Central Zone at Depth Near-Surface Targets Infill drilling to link 50 intercepts avg. 12 gpt / 7 m Recently identified mineralization close to Drilling to 1,000m in…
  21. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 21
    GREY FOX Future Production for the Black Fox Complex LOCATION 3.5 km south of Growing Resources Through the Drill Bit Black Fox, Ontario OWNERSHIP 100% (no stream) Long Section Looking West (December 2014 Resource Model; 3.0 g/t…
  22. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 22
    GREY FOX The Continuation of a Regional Play Black Fox Mine Grey Fox Gold resources hosted primarily in 3 zones: Contact, 147, & Grey Fox South Mineralization consistent with Brittle Deformation emplacement Bounded by the…
  23. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 23
    Expected Catalysts and News Flow Q1 2015 2015 2016 Reserve and Resource San Dimas Expansion San Dimas Expansion Update In-Progress Complete Plus discovery of Jessica Continue to advance Steady-state 3,000 TPD vein at San Dimas…
  24. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 24
    DELIVERING SUPERIOR RETURNS Positioned to Outperform Producing in Americas Top Mining Jurisdictions 250 270 koz MEXICO & CANADA7,11 Disciplined Cost Management 650 700 /oz TOTAL CASH COST2,9 Strong Financial Position 133…
  25. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 25
    APPENDICES
  26. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 26
    HISTORY OF DELIVERING RESULTS Proven Track Record 155% GROWTH 281% GROWTH 63% REDUCTION 7 Production per 1000 shares Gold Reserves Total Reportable Injury Frequency (AuEq oz/1000 shares) (Au koz) Rate (TRIFR) 1.9 1.48 1,923 393…
  27. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 27
    2014 Achievements and 2015 Objectives 2014 Accomplishments 2015 Objectives Reduced All Injury Frequency Rate by Zero fatalities and reduce All Injury 36% Frequency Rate by 15% Met guidance and increased production Increase…
  28. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 28
    2015 GUIDANCE Lower 2015 Capital Expenditures Capital Expenditures Estimated 2015 Costs San Dimas Underground Development 15.2 million San Dimas Sustaining Capital 10.8 million San Dimas Projects 15.4 million San Dimas Sub Total…
  29. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 29
    2015 GUIDANCE Continuing to Invest in Exploration Exploration Expenditures Estimated 2015 Costs San Dimas Diamond Drilling 3.1 million San Dimas Drifting 1.9 million San Dimas Regional Diamond Drilling 0.9 million Ventanas…
  30. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 30
    PRIMERO Sensitivity Table Change CFPS5,12 AISC2,5 FCF5 Base Price Increments (/share) (/oz Au) ( millions) Gold Price 1,200 100 0.12 n/a 20 (/oz) Silver Price 18.00 3.00 0.01 7 1 (/oz) Canadian Dollar 1.10 10% 0.05 40 10…
  31. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 31
    PRIMERO 2014 Operating Cost Breakdown San Dimas Consolidated 10% 5% 2% 4% -5% 6% 40% 5% 3% 6% 40% 17% 7% 17% 17% Black Fox -14% 18% 2% 33% 6% 6% Labour Contractors 9% Materials & Consumables Fuel & Lubricants…
  32. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 32
    PRIMERO Stock Performance & Significant Events 80% Primero Added to 30 P-T Volume S&P/TSX Primero Announces Composite Index Primero Mining Corp. San Dimas Expansion Plan 60% S&P/TSX Global Gold Index Phase 1 Primero Announces…
  33. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 33
    PRIMERO Summary of Debt & Tradable Securities Primero Convertible Convertible Revolving Line Warrants Debentures Debentures of Credit Facility TSX: P.WT TSX: P.DB.U TSX:P.DB.V Drawn at Mar. 31, Face Value n/a 48.1 million 2015:…
  34. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 34
    SAN DIMAS BLACK FOX Silver Purchase Agreement Gold Streaming Agreement Primero sells 50% of annual silver Primero sells 8% of annual gold production production above 6.0 million ounces at spot at Black Fox at 518 per ounce Remainder sold…
  35. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 35
    SAN DIMAS District-Wide Exploration Potential WEST BLOCK 2015 Exploration SINALOA SAN ANTONIO GRABEN CENTRAL BLOCK TAYOLTITA BLOCK ARANA Mined 1987-2002 Mined 2012-Current Mined 2002-Current Mined 1975-Current HANGING WALL SW NE…
  36. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 36
    BLACK FOX COMPLEX Depositional Model Archean Lode Gold Deposits Depositional Model Producing & Past- Upper Portion of the Ross Mine Shows Producing Mines Mineralization Characteristics Similar to 147 &Contact the Grey Fox 147 Zone…
  37. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 37
    CERRO DEL GALLO Potential for an Additional 95,000 AuEq oz LOCATION Guanajuato State, Mexico Large Gold Domain OWNERSHIP 100% METALS Gold, silver, & copper MINING Open pit, heap leach and/or conventional mill STAGE Feasibility Study…
  38. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 38
    PRIMERO Focus on Responsible Mining HEALTH AND SAFETY We understand that our most important assets are our people and their safety is our number one priority We maintain world-class health and safety policies In 2014 Black Fox won the…
  39. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 39
    SAN DIMAS Mineral Reserves and Mineral Resources (As at December 31, 2014) Contained Contained Tonnage Gold Grade Silver Grade Classification Gold Silver (Mt) (g/t) (g/t) (koz) (koz) Mineral Reserves Proven & Probable 4.470 5.7 352…
  40. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 40
    BLACK FOX Mineral Reserves and Mineral Resources (As at December 31, 2014) Contained Tonnage Gold Grade Classification Gold (Mt) (g/t) (koz) Mineral Reserves Proven & Probable 3.022 4.0 393 Mineral Resources Measured & Indicated…
  41. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 41
    GREY FOX Mineral Resources (As at December 31, 2014) Capped Contained Cut-off Grade Potential Tonnage Classification Gold Grade Gold (g/t) Material (Mt) (g/t) (koz) Indicated Resources 0.9 Open Pit 2.966 3.6 345 3.0 Underground…
  42. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 42
    CERRO DEL GALLO Reserves and In-Pit Resources1 Contained Contained Copper Contained Contained Tonnage Gold Grade Silver Grade AuEq Grade Category Gold Silver Grade Copper AuEq (Mt) (g/t) (g/t) (g/t) (Moz) (Moz) (%) (Mlb) (Moz) Total…
  43. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 43
    Executive Management Joseph Conway Chief Executive Officer Ernest Mast President & COO 30 Years of experience 25 Years of experience Appointed President and CEO in June 2010 Appointed President & COO in Feb. 2015 Former CEO, President…
  44. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 44
    Board of Directors Wade Nesmith Chairman Eduardo Luna Director 1 Founder of Primero Former EVP & President, Mexico. Former Chairman Founding and current director of Silver Wheaton and CEO of Silver Wheaton, Executive VP of Goldcorp…
  45. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 45
    Footnotes 1. Operating cash flow is operating cash flow before working capital changes. This and operating cash flows before working capital changes per share (CFPS) are non-GAAP measures which the Company believes provides a better…
  46. Q1 2015 EARNINGS CALL – PRIMERO MINING CORP. – slide 46
    PRIMERO MINING CORP. 79 Wellington St. West, Suite 2100 Toronto, ON M5K 1H1 T 416 814 3160 TF 877 619 3160 www.primeromining.com Tamara Brown First Quarter 2015 Results Vice President, Investor Relations May 6, 2015 T 416 814 3168…

From the store

Browse maps, data & reports in the Shale Experts store