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Q4 2014 RESULTS – PRIMERO MINING CORP.

PRIMERO MINING CORP. · Feb 12, 2015 · 41 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. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 1
    Fourth Quarter and Full-Year 2014 Results February 12, 2015 TSX P I NYSE PPP I
  2. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 2
    Management Participants Joseph Conway CEO 30 Years of experience Appointed CEO in June 2010 Former CEO, President & Director of IAMGOLD and Repadre Capital Ernest Mast President & COO 25 Years of experience Appointed President…
  3. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 3
    Q4 2014 Highlights o Met production and cost guidance o Record production at San Dimas o Black Fox optimization continues o Record revenue o Strong operating cash flow o Earnings impacted by non-cash impairment charges against Black…
  4. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 4
    Strong Financial Position TSX: P December 31, 2014 Pro Forma Convertible Debt Financing Exchanges 134M NYSE: PPP Balance Sheet (December 31, 2014 Pro Forma Convertible Debt Financing) Cash 99 million STRONG Liquidity Line…
  5. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 5
    Impairment Overview Non-cash impairment charges in 2014 of 209.0 million include: Q3 2014: o 99 million goodwill impairment related to the Black Fox complex because share price appreciation from the date of announcement to the close…
  6. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 6
    Financial Results (US thousands, except per Q4 Q4 Revenues 2014 2013 (millions) share amounts) 2014 2013 300 Revenues 71,171 47,737 274,612 200,326 +37% Earnings from Mine 18,537 13,745 52,663 76,004 250 Operations Net income (loss)…
  7. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 7
    Increased Production by 57% in 2014 Q4 Q4 Production Operating Results 2014 2013 (AuEq ounces) 2014 2013 250,000 7 Gold equivalent production 62,209 34,371 225,054 143,114 +57% (gold equivalent ounces) 200,000 Gold production…
  8. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 8
    San Dimas Operating Results Q4 Q4 San Dimas Production 2014 2013 (AuEq ounces) 2014 2013 Mill Throughput 9 2,846 1,974 2,463 2,101 170,000 +13% (tonnes per day) 7 150,000 Gold equivalent production 41,875 34,371 161,170 143,114…
  9. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 9
    Black Fox Operating Results Q4 2014 Black Fox Production (March 5 2014 December 31) (Au ounces) 25,000 9 Mill Throughput 2,403 2,306 (tonnes per day) 20,000 Gold Production 20,334 63,884 (gold ounces) 15,000 Gold Grade 3.00…
  10. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 10
    A Further 20% Production Growth in 2015 2014 Black Fox San Dimas Outlook 2015 Attributable gold equivalent production7 225,100 75,000-85,000 175,000-185,000 250,000-270,000 (gold equivalent ounces) Gold Production 190,000…
  11. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 11
    Established Organic Growth Profile 7.10 Targeted Production Growth Profile (AuEq koz) Strategic Approach: 1. Strong balance sheet Black Fox San Dimas 300-350 100 2. Measured approach to growth 280-300 100 3. Disciplined cost…
  12. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 12
    Disciplined Cost Management 2015 Cash Costs Guidance Range (US/oz Au)* 900 San Dimas: o Expansion to 2,500 TPD increased efficiencies of 800 scale 700 o Increased long-hole mining reduced dilution by 30% 600 o Expansion to 3,000 TPD…
  13. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 13
    Experienced Board and Management MANAGEMENT 225+ Years of Joseph Conway CEO 30 Years of Experience Ernest Mast President & COO 25 Years of Experience Combined Industry Appointed CEO in June 2010 Appointed President & COO in Feb.…
  14. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 14
    Track Record of Delivering on Stakeholder Commitments SHAREHOLDERS Primero Total Reportable Injury Frequency Rate (TRIFR) Superior Value Creation 2 1.9 1.5 SAFETY 1.5 Lowering Injury Frequency Rate 1 1.1 0.5 0.7 ENVIRONMENT…
  15. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 15
    SAN DIMAS World Class Platform Asset Location Durango, Mexico Mine Type Underground, Gold & Silver 7 Ownership 100% (silver stream) Proven & Probable Gold Reserves (koz) 870 (4.9M tonnes at 5.5 g/t) Measured & Indicated Gold…
  16. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 16
    SAN DIMAS Expansion to 3,000 TPD Construction Mill expansion to 3,000 TPD began in Q1 2015 and is expected to be completed by Q2 2016 Capital Cost Currently estimated at 26 million, including a 30% contingency After-tax IRR11 is…
  17. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 17
    SAN DIMAS 2015 Mine Expansion Plan 3,200 Mill Expansion Expanded 3,000 TPD Capacity 3,000 Mine Production to 2,900 tpd 2,800 tonnes per day 2,600 Mill Expansion Current Nameplate Capacity 2,400 Mine Production to 2,500…
  18. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 18
    SAN DIMAS Significant Exploration Upside with Low Finding Costs o Completed 80,000 metres of drilling 2014, 2014 reserves and resources to be released in Q1 2015 Low Finding Cost Per Ounce P&P Reserves Discovered (Koz Au) o 2015: 6.4…
  19. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 19
    BLACK FOX Established Jurisdiction with Proven Depth Potential Over 200 Million Ounces of Historical Production Note: Based on public data, average depth of listed mines is 1,633 metres. TSX P I NYSE PPP I 20
  20. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 20
    BLACK FOX Turnaround Opportunity to Create Value Location Timmins, Ontario Mine Type Open-Pit & Underground, Gold 7 Ownership 100% (8% gold stream) Proven & Probable Gold Reserves (koz) 538 (3.8M tonnes at 4.3 g/t) Measured &…
  21. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 21
    BLACK FOX Focused on Reserve & Resource Development Lateral & Depth Expansion TSX P I NYSE PPP I 22
  22. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 22
    GREY FOX Promising Exploration Project Grey Fox o Completed 76,000 metres of drilling in 2014. o Planned another 50,000 metres in 2015. o Positive exploration results announced to date from underground and open pit targets.…
  23. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 23
    Catalysts and News Flow Q3 2014 Q4 2014 Q1 2015 San Dimas 3,000 TPD Decision San Dimas Exploration Update Reserve and Resource Update Expansion decision Extended top Including 226,000 announced producing veins metres of 2014…
  24. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 24
    Positioned to Outperform DELIVERING SUPERIOR RETURNS Experienced History of Positive Cash Consistent Board and Management Flow From Operations Outperformer +225 years 15 quarters +35 % INDUSTRY EXPERIENCE CONSECUTIVE VS. TSX GLOBAL…
  25. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 25
    APPENDICES
  26. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 26
    Stock Performance & Significant Events 80% Primero Added 30 P-T Volume to S&P/TSX Primero Composite Index Primero Mining Corp. Announces San Dimas Expansion 60% S&P/TSX Global Gold Index Plan Phase 1 Primero 40% Announces…
  27. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 27
    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…
  28. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 28
    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…
  29. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 29
    Summary of Debt & Tradable Securities Convertible Convertible Primero Warrants Revolving Line Debentures Debentures TSX: P.WT of Credit Facility TSX: P.DB.U TSX:P.DB.V Drawn at Dec. 31, Face Value n/a 48.1 million 2014: 40.0…
  30. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 30
    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 509 per ounce o Remainder…
  31. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 31
    Focus on Responsible Mining HEALTH AND SAFETY o We understand that our most important assets are our people and their safety is our number one priority o We maintain world-class health and safety policies ENVIRONMENT o San Dimas is…
  32. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 32
    SAN DIMAS Mineral Resources and Mineral Reserves (December 31, 2013, Mineral Resources include Mineral Reserves) Tonnage Silver Grade Contained Gold Contained Silver Classification Gold Grade (G/T) (Million Tonnes) (G/T) (000…
  33. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 33
    BLACK FOX Mineral Resources and Mineral Reserves (December 31, 2013, Mineral Resources include Mineral Reserves) Tonnage Gold Grade Cont. Gold Classification (Tonnes) (G/T) (Ounces) Proven & Probable Reserves Open Pit 1,468,500…
  34. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 34
    GREY FOX Mineral Resources (December 31, 2013) Cut-off Tonnes CAPPED Au Contained Gold Classification Grade Potential Material (Million (G/T) (Ounces) (G/T Au) Tonnes) Indicated Resources 3.0 Underground 1.394 5.4 243,041 0.9…
  35. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 35
    CERRO DEL GALLO Reserves and In-Pit Resources1 Total Resources Within the Gold Domain2 Au Au Ag Ag Cu Cu AuEq AuEq Category M Tonnes (g/t) (M ozs) (g/t) (M ozs) (%) (M lbs) (g/t) (M oz) Measured 129 0.54 2.24 12.0 49.8 0.09 256.0 0.94…
  36. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 36
    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…
  37. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 37
    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…
  38. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 38
    Notes TSX P I NYSE PPP I 41
  39. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 39
    Notes TSX P I NYSE PPP I 42
  40. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 40
    Notes TSX P I NYSE PPP I 43
  41. Q4 2014 RESULTS – PRIMERO MINING CORP. – slide 41
    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 Vice President, Investor Relations T 416 814 3168 infoprimeromining.com Fourth Quarter and…

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