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Q1 2014 RESULTS – PRIMERO MINING CORP.

PRIMERO MINING CORP. · May 8, 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. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 1
    First Quarter 2014 Results May 8, 2014
  2. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 2
    Management Participants Joseph F. Conway Renaud Adams David Blaiklock President & Chief Executive Officer Chief Operating Officer Chief Financial Officer TSX:P I NYSE:PPP I 3
  3. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 3
    A Transition Quarter o Brigus acquisition closed o Earnings impacted by transaction costs and higher stock based compensation due to 71% appreciation in share price during the quarter o Balance sheet remains strong o Increased San…
  4. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 4
    San Dimas Production Q1 2014 Q1 2013 San Dimas Production (AuEq ounces) 1 Mill Throughput (tonnes per day) 2,422 2,042 40,000 2 +29% Gold equivalent production (gold equivalent ounces) 35,662 27,656 35,000 Gold production…
  5. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 5
    Black Fox Production March 5 Q1 2014 Q1 2013 - March 31 1 Mill Throughput 1,538 1,665 2,042 (tonnes per day) Gold Production 4,096 13,298 26,316 (gold ounces) Gold grade 3.36 2.96 4.74 (grams per tonne) 4 All-in Sustaining…
  6. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 6
    Financial Results (US thousands, except per share amounts) Q1 2014 Q1 2013 Revenues (thousands) 50 +4% Revenues 48,269 46,321 Earnings from Mine Operations 8,265 15,706 Net income (loss) (9,087) 17,325 EPS (0.07) 0.18 40 (…
  7. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 7
    Balance Sheet & Liquidity March 31, 2014 May 8, 2014 86M STRONG Cash Balance 113M LIQUIDITY Current Est. Cash 38M (86.4M as of March 31, 2014, less 20.9 Brigus notes repaid April 4, 2014 less Goldcorp note 27.2 assumed…
  8. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 8
    Our Strategic Focus TARGETED GROWTH PROFILE 2,7,11 1. Provide for sufficient financial liquidity 380-400 2. Ensure measured growth Cerro del Gallo 95 Black Fox 3. Disciplined cost management 280-290 (Thousand Gold Equivalent…
  9. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 9
    Maintain Strong Outlook for 2014 Black Fox San Dimas Outlook 2014 Gold equivalent production2 70,000-80,000 155,000-165,000 225,000-245,000 (gold equivalent ounces) Gold production 70,000-80,000 115,000-125,000 185,000-205,000…
  10. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 10
    OVERVIEW OF ASSETS
  11. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 11
    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 (AT DECEMBER 31, 2013, MINERAL…
  12. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 12
    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…
  13. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 13
    SAN DIMAS Proven History of Production San Dimas Historical Production (AuEq ounces) 250,000 Gold (oz) 9.00 Sinaloa Graben Discovery Gold Equivalent (AuEqoz) Subsequent Acquisition of San Dimas by Primero Gold Grade (g/t) RH 8.00…
  14. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 14
    SAN DIMAS Potential Phase 2 Expansion San Dimas Tonnes Per Day 3,000 tpd Target Phase 2 Mill Mine 3,000 Expansion to Optimized to 3,000 tpd 3,000 tpd Phase 2 Mill Target Mine Expansion Production of Scoping Study 2,750 tpd…
  15. Q1 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. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 16
    BLACK FOX Prospective, Mining Friendly Jurisdiction Destor-Porcupine Fault TSX:P I NYSE:PPP I 17
  17. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 17
    BLACK FOX Another Opportunity to Unlock Value Location Timmins, Ontario Ownership 100% (8% gold stream at 504/oz12) Metals Gold Mining Open pit & underground Capacity 2,200 TPD Mine Life Open Pit: 3 years, U/G: 7 years Mineral…
  18. Q1 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 Target (TPD) 2,500 o Increase underground throughput: Open Pit Increase delineation and definition drilling 2,000 Open Pit Increase…
  19. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 19
    BLACK FOX Open for Expansion at Depth RESERVE/ SHAFT/ RESERVE RESOURCE MINE RESOURCE RAMP DEPTH GRADE (g/t GRADE (g/t DEPTH (m) (m) Au) Au) Holloway Mine 900 864 4.5 4.3 Doyon 1,040 1,040 n.a. 4.4 Holt Mine 1,200 1,075 4.7…
  20. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 20
    BLACK FOX Open for Expansion Laterally & at Depth 12.88gpt / 11.3m Level 500ml Exploration Drift, total of 800m 3.40gpt / 15.4m length in 2014/15 Incl. 7.68gpt / 3.4m 29th April, 2013 News Release 15.02gpt / 3.3m…
  21. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 21
    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 3…
  22. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 22
    GREY FOX High Grade Gold Drilling Results o Since acquiring the Black Fox Complex Primero has drilled 34 holes or 9,469 metres o Raised Cdn9 million in a flow-through financing for Grey Fox and Pike River drilling Core Gold Metal…
  23. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 23
    CERRO DEL GALLO Potential Near Term Production CERRO DEL GALLO INCREASES PRIMEROSPRODUCTION BY 60%12 Location Guanajuato State Ownership 100% Metals Gold, silver & copper Mining Open pit, heap leach, and/or conventional mill Excellent…
  24. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 24
    Catalysts & News Flow Q1 2014 San Dimas expansion to Q3 2014 San Dimas 3,000 Q4 2014 Black Fox Underground 2,500 TPD completed TPD Decision at 1,000 TPD Expansion increases annual Potential expansion Replacing lower-grade…
  25. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 25
    Investment Opportunity o Mid-tier gold producer 100-180% 2,7,11 o Portfolio of long-life, high-grade assets GROWTH planned by 2016 YE o Located in safe mining jurisdictions o Strong cash flow and balance sheet o Track record of…
  26. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 26
    Appendices
  27. Q1 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. Q1 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. Q1 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. Q1 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. Q1 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. Q1 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…
  33. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 33
    GREY FOX Mineral Resources JULY 3, 2013 TONNES CUT-OFF GRADE CONTAINED GOLD CLASSIFICATION (g/t Au) POTENTIAL MATERIAL (MILLION CAPPED Au (g/t) (000 OUNCES) TONNES) Indicated Resources 2.84 Underground 1.3 6.2 255,000 0.72…
  34. Q1 2014 RESULTS – PRIMERO MINING CORP. – slide 34
    Executive Management H. Maura Lendon VP, Chief General Counsel and Corporate Secretary Joseph F. Conway President & C.E.O. 1 o Former Senior Vice President, Chief Legal Officer o Former CEO, President and Director of IAMGOLD and…
  35. Q1 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. Q1 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. Q1 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. Q1 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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