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Q2 2014 RESULTS – PRIMERO MINING CORP.

PRIMERO MINING CORP. · Aug 7, 2014 · 38 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. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 1
    Second Quarter 2014 Results August 7, 2014
  2. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 2
    Management Participants Joseph F. Conway Renaud Adams David Blaiklock Chief Executive Officer President & Chief Operating Officer Chief Financial Officer TSX:P I NYSE:PPP I 3
  3. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 3
    Q2 2014 Highlights o Revenue increased 52% to 80 million o San Dimas delivered record production, Black Fox production improved o Closed a three year 75 million Line of Credit o Repaid 53.3 million in debt including the remaining 27…
  4. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 4
    Combined Operating Results Q2 2014 Q2 2013 Production (AuEq ounces) 2 70,000 Gold equivalent production 63,414 39,089 +62% (gold equivalent ounces) 60,000 Gold production 50,061 26,904 (ounces) 50,000 3 Silver production 1.49…
  5. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 5
    San Dimas Operating Results Q2 2014 Q2 2013 San Dimas Production (AuEq ounces) 1 Mill Throughput 2,405 2,216 (tonnes per day) 50,000 +18% 2 Gold equivalent production 46,248 39,089 45,000 (gold equivalent ounces) 40,000 Gold…
  6. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 6
    Black Fox Operating Results Black Fox Production Q2 2014 Q1 2014 (AuEq ounces) 20,000 1 +29% Mill Throughput 2,307 1,646 18,000 (tonnes per day) 16,000 14,000 Gold Production 17,166 13,298 (gold ounces) 12,000 10,000 Gold…
  7. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 7
    Financial Results (US thousands, except per share amounts) Q2 2014 Q2 2013 Revenue (thousands) Revenues 79,669 52,475 +52% 80,000 Earnings from Mine Operations 19,676 23,593 70,000 60,000 Net income (loss) 572 4,241 50,000…
  8. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 8
    Balance Sheet & Liquidity June 30, 2014 June 30, 2014 44M STRONG Cash Balance 89M LIQUIDITY 78.1M 44M Current Cash 7 PRUDENT Debt Level 150M 6,8,9 SIGNIFICANT Operating Cash Flow 5-Year average after-tax…
  9. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 9
    Our Strategic Focus TARGETED GROWTH PROFILE 2,8,12 1. Provide for sufficient financial liquidity 360-380 2. Ensure measured growth Cerro del Gallo 50 Black Fox 3. Disciplined cost management (Thousand Gold Equivalent Ounces)…
  10. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 10
    Strong Outlook for 2014 Outlook 2014 Gold equivalent production2 225,000-245,000 (gold equivalent ounces) Gold production 185,000-205,000 (ounces) Silver production3 6.25-6.50 (million ounces) All-in Sustaining Costs4…
  11. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 11
    OVERVIEW OF ASSETS
  12. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 12
    Asset Overview: Low-Risk Mining Jurisdictions Builds on Established Presence in Mexico San Dimas Mine (AT DECEMBER 31, 2013, MINERAL RESOURCES INCLUDE MINERAL RESERVES) Au Reserves (Moz) 0.87 Black Fox Mine Au M&I Resources (Moz)…
  13. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 13
    SAN DIMAS A Flagship Asset Location Durango-Sinaloa State Border Ownership 100% One of Mexicos Most Metals Gold & Silver (Silver subject to Purchase Agreement3) Significant Precious Mining Underground cut and fill and long-hole Metals…
  14. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 14
    SAN DIMAS Phase 2 Expansion San Dimas Tonnes Per Day 3,000 3,000 tpd Target 3,000 tpd Expansion is Approved Construction of Phase 2 Mill Expansion Mine and Mill Optimized to 3,000 tpd Phase 2 Mill Mining Optimization To…
  15. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 15
    SAN DIMAS Proven Exploration Success o Victoria Vein Gold Reserves increased to 195,000 oz at 11.5 g/t o 2014 15.7 million exploration program o 22,500 hectare package o 80,000 metres of drilling: 35,000 metres delineation…
  16. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 16
    BLACK FOX Prospective, Mining Friendly Jurisdiction Destor-Porcupine Fault has produced around 200Moz gold TSX:P I NYSE:PPP I 17
  17. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 17
    BLACK FOX Another Opportunity to Unlock Value Location Timmins, Ontario Ownership 100% (8% gold stream at 509/oz11) Metals Gold Mining Open pit & underground Capacity 2,200 TPD Mine Life Open Pit: 3 years, U/G: 7 years Mineral…
  18. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 18
    BLACK FOX Short Term Focus o Total 2014 budget of 48 million for 10 months Black Fox Throughput (TPD) 2,500 o Increase underground throughput: Increase delineation and definition drilling 2,000 U/G Increase short term development…
  19. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 19
    BLACK FOX 2014 Exploration & Planned Development TSX:P I NYSE:PPP I 20
  20. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 20
    GREY FOX Promising Exploration Project CERRO DEL GALLO Location INCREASES 4 km from PRIMEROSPRODUCTION Black Fox - Timmins, ON BY 60%12 Ownership 100% (No gold stream) Metals Gold Mining Open pit potential & Underground Exploration 5…
  21. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 21
    GREY FOX High Grade Gold Drilling Results o Since acquiring the Black Fox Complex Primero has drilled 30,422 metres at Grey Fox Core Gold From Hole To (m) Width Grade (m) (m) (g/t) GF13-804 205.0 248.0 43.0 2.7 GF13-810 19.4…
  22. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 22
    CERRO DEL GALLO Construction Decision Delayed CERRO Location DEL GALLO INCREASES Guanajuato State PRIMEROSPRODUCTION BY 60%12 Ownership 100% Metals Gold, silver & copper Mining Open pit, heap leach, and/or conventional mill…
  23. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 23
    CERRO DEL GALLO Exploration Upside o High grade vein intersected in first exploration activity since 2008 (Carmen-Providencia vein) o 10,000 metre drill program for infill, condemnation and exploration drilling in 2014 o Known…
  24. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 24
    Catalysts & News Flow Q1 2014 San Dimas expansion to Q3 2014 Cerro del Gallo Update Q4 2014/Q1 2015 Black Fox Underground 2,500 TPD completed at 1,000 TPD Expansion increases annual Replacing lower-grade production capacity to…
  25. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 25
    Investment Opportunity o Mid-tier gold producer 150% 8,9,12 o Portfolio of long-life, high-grade assets GROWTH planned o Located in safe mining jurisdictions by 2016 YE Strong cash flow 150M/yr o 8,9,12 o Below average cost…
  26. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 26
    Appendices
  27. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 27
    SAN DIMAS Positive Leverage to Silver Recent Tax Ruling Created Positive Leverage to Silver Primero sells 50% of annual silver production above 3.5 million ounces at spot o Remainder sold at 4 per ounce under silver purchase…
  28. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 28
    SAN DIMAS District Wide Exploration Potential West Block 2014 EXPLORATION Sinaloa Graben Central Block Tayoltita Block Arana San Antonio Mined 1987-2002 Mined 2012-Current Mined 2002-Current Mined 1975-Current Hanging Wall SW NE…
  29. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 29
    CERRO DEL GALLO Cerro Del Gallo Development Plan 2013 2014 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Basic Engineering Permitting/Land Acquisition Site Survey Leach Pad Design & Earth Works Infill Drilling and MET Tests…
  30. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 30
    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…
  31. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 31
    CERRO DEL GALLO Reserves and In-Pit Resources1 Total Resources Within the Gold Domain2 M Tonnes Au Au Ag Ag Cu Cu Au Eq AuEq Category (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…
  32. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 32
    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…
  33. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 33
    GREY FOX Mineral Resources December 31, 2013 TONNES CUT-OFF GRADE CONTAINED GOLD CLASSIFICATION (g/t Au) POTENTIAL MATERIAL (MILLION CAPPED Au (g/t) (000 OUNCES) TONNES) Indicated Resources 3.0 Underground 1.394 5.4 243,041…
  34. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 34
    Executive Management H. Maura Lendon VP, Chief General Counsel and Corporate Secretary Joseph F. Conway C.E.O. 1 o Former Senior Vice President, Chief Legal Officer o Former CEO, President and Director of IAMGOLD and Corporate…
  35. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 35
    Board of Directors Wade Nesmith Chairman Rohan Hazelton Director 1,5 Brad Marchant Director 1 o Founder of Primero o VP, Strategy, Goldcorp o Co-founder of Triton Mining o Founding and current director o Formerly with Wheaton River…
  36. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 36
    Notes to Investors Regarding the Use of Resources This presentation has been prepared in accordance with the requirements of Canadian provincial securities laws which differ from the requirements of U.S. securities laws. Unless otherwise…
  37. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 37
    Footnotes 1. Based on 365 days per year. 2. Gold equivalent ounces include silver and copper production converted to a gold equivalent based on consensus estimated commodity prices; accounts for the San Dimas silver purchase agreement.…
  38. Q2 2014 RESULTS – PRIMERO MINING CORP. – slide 38
    PRIMERO MINING CORP. Tamara Brown 20 Queen Street West, Suite 2301 Vice President, Investor Relations Toronto, ON M5H 3R3 T 416 814 3168 T 416 814 3160 F 416 814 3170 infoprimeromining.com TF 877 619 3160 Trading Symbols…

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