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Dynacor's updated presentation reflecting new forecasts going forward.
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APRIL, 2013 TSX:DNG
US:DNGDF
DISCLAIMER: FORWARD LOOKING
STATEMENTS
This presentation contains certain forward-looking statements regarding operational information, future exploration and development plans and anticipated future production. Words such as, potential”, “building” “inferred”, “if”, “will”, “expect”, “forecast”, “estimate”, “consider”, “may”, “possible” and similar expressions have been used to identify these forward-looking statements. These statements are management’s current beliefs and are based on information currently available to management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance forward-looking statements. Forward-looking statements and other information contained herein concerning the metals and mining industry and Dynacor’s general expectations concerning the industry are based on estimates prepared by management using data from publicly available industry sources as well as from private sources, industry analysis and on assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, this data is inherently imprecise. While Dynacor is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met.
A NON-DILUTIVE GOLD COMPANY 2
A Non-Dilutive
Gold Company
Exploration
Auto
financed
Profitable
Dynacor is an industrialized-type gold company with a low risk business model. GOLD PRODUCTION: Dynacor’s gold ore-processing division, located in Peru, generates steady cash flow and profits while reducing risk. HOW? • Cash flow pays for exploration and all
other costs; • Avoids shareholder dilution; • Net earnings of USD $7.7 M
($0.22 per share) in 2012. EXPLORATION Dynacor has a $2.8 M drilling and cross-cut campaign underway on its flagship copper and gold exploration property, Tumipampa, surrounded by senior mining companies developing large scale skarn/porphyry copper/gold mines.
A NON-DILUTIVE GOLD COMPANY 3
5,179 7,292
10,576 10,478 9,926 11,808 11,134
13,157 13,101 12,392
17,168 18,603
20,027
25,100
32,500/QTR 130,000/YR
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Go
ld P
rod
uct
ion
(ou
nce
s)
• Q2-2014 forecast: based on 450 TPD | gold grades of 0.70 ounce/tonne | 340 working days | 94% recovery • Q4-2014 forecast: based on 600 TPD | gold grades of 0.70 ounce/tonne | 340 working days | 94% recovery
WHY INVEST IN DYNACOR NOW? QUARTERLY GOLD PRODUCTION FORECAST
A NON-DILUTIVE GOLD COMPANY 4
0.90 0.88 0.78 0.85 0.73 0.75 0.79 0.82 0.93 1.03
0.00
0.50
1.00
1.50
Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012
Go
ld G
rad
e (O
un
ce/T
on
ne)
Dynacor's Quarterly Average Gold Grade Processed (Ounce/Tonne)
Anticipating profits/oz to rise with new mill: a. Converting to national power
lowers cost to ($0.08/kw from $0.25/kw)
b. Receive larger haul shipments (lower transportation costs)
c. Brand new machinery/equipment (improves operating efficiency)
Averaging a gross profit per ounce of approximately
$300
A NON-DILUTIVE GOLD COMPANY 5
31
37 35
19 15
11 10 10 6 6 7 5 6 6 5 5 5 3 3 4 5 6 7 6 7 6 5 4
0
5
10
15
20
25
30
35
40
Pri
ce /
Cas
h F
low
Ra
tio
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
Avg. Monthly Price 1.57 1.86 1.74 1.69 1.37 1.13 0.97 0.95 0.80 0.76 0.89 0.70 0.81 0.78 0.73 0.68 0.64 0.52 0.53 0.66 0.85 1.06 1.18 1.24 1.50 1.30 1.16 1.04
Cash Flow/Share (TTM) 0.05 0.05 0.05 0.09 0.09 0.10 0.10 0.10 0.13 0.13 0.13 0.14 0.14 0.14 0.14 0.13 0.13 0.17 0.17 0.17 0.17 0.17 0.17 0.22 0.22 0.22 0.22 0.26
Price to Cash Flow/Share 31 37 35 19 15 11 10 10 6 6 7 5 6 6 5 5 5 3 3 4 5 6 7 6 7 6 5 4
Dynacor Gold Mines 2 Year Price/Cash Flow
WHY INVEST IN DYNACOR NOW? GROWING CASH FLOW/SHARE
Dynacor’s average P/CF over the last two years is 10 times.
The company is trading at 4.0 times cash flow per share ($0.26 Cash Flow Per Share in 2012). With or without a BULL market in the
juniors, Dynacor’s cash flow per share will continue to grow…
Bull market in the juniors Sabretooth Hedge
Fund forced to liquidate assets and
is out of business
MARKET IS “SHAKING THE TREE”
A NON-DILUTIVE GOLD COMPANY 6
WHY INVEST IN DYNACOR NOW? ONE BIG DIFFERENCE FROM 2012
Acari: Gold/silver ore processing plant with a capacity of 220 tpd Chala: New mill planned with initial capacity of 300 tpd and readily expandable to 600 tpd 2012: Gold Production of 61,274 ounces averaging 213.79 tpd at 0.901 ounce/tonne
Tumipampa:
Flagship Exploration Property- Identified Au/Cu skarn/porphyry
deposit (4km long) located on
the same fault and flanked by two giant world class skarns :
• Los Chancas (355 million tonnes at 0.62% Cu, 0.05%
Mo and 0.039 g/t Au) (Southern Copper)
• Las Bambas (1.710 billion
tonnes at 0.61% Cu and 0.02 %/t Mo, 0.11g/ Au) (Xstrata)
PERU
CASADEN (Au)
ACARI PLANT (Au)
TUMIPAMPA (Cu/Au)
Los Chancas (Southern Copper) (Cu/Au ) Las Bambas
(Xstrata) (Cu/Au)
Huquira (Antares Minerals) (Cu)
Tintaya (Xstrata)(Cu/Au)
Orcopampa (Buenaventura)(Au/Ag)
Yanacocha (Newmont/Buenaventura) (Au)
Lagunas Norte (Barrick) (Au)
Constancia (Norsemont) (Cu)
Pierina (Barrick) (Au)
ANTA (Ag)
EGNONE (Au/Cu)
Production Exploration
NEW CHALA PLANT (Au)
A NON-DILUTIVE GOLD COMPANY 7
3 YEAR CHART HISTORY: ADVANTAGE DYNACOR OVER MINERS
All time high of $2.13 as of Feb 4, 2011
$1.34 as of Feb 5, 2013
Van Eck GDXJ
“Juniors”
A NON-DILUTIVE GOLD COMPANY 8
Purchase ore
Receive ore by truck
Weigh and assay ore for gold content Dynacor pays miner
based on gold content and discount to
spot price
Ore is processed
through plant
Gold bars are sold at spot price
ORE-PROCESSING STEPS
A NON-DILUTIVE GOLD COMPANY 9
NEW CHALA GOLD PROCESSING PLANT DEVELOPMENT TIMELINE
2012
•Two participative community workshops successfully completed
•Submission of Environmental Impact Assessment – done
•Hydrological study – done
•Purchase of land – done
•Engineering plan – done
•Construction plan – done
•Environmental Impact Assessment - received permit in Dec
Construction phase
Q2-2013
•Construction of phase 1 begins immediately upon receipt of the construction permit
•Construction of the tailings pond
Production
2014
•Testing the new plant Q1-2014
•New plant commissioned and in operation Q1 - 2014
•Upgrading plant to 600 tpd
A NON-DILUTIVE GOLD COMPANY 10
• Unlimited space for tailings pond • Mining friendly
region • Access to a
region with an abundance of
gold ore
Power from the National Grid (lowers production
cost)
Easy access for heavy trailers
Dynacor has an ore purchasing office in
the area and is recognized as a reliable honest
business partner
KEY BENEFITS TO THE NEW ORE-PROCESSING FACILITY AT CHALA
A NON-DILUTIVE GOLD COMPANY 11
New Government formalizes and regulates
the artisanal mining sector
New mining laws in force since March 2012
Improves working
conditions
Environmental
protection
Increases government tax
revenues
Increased demand for legally compliant
ore-processing
A window of opportunity for
Dynacor’s ore-processing
division?
NEW MINING LEGISLATION PRESENTS OPPORTUNITY
A NON-DILUTIVE GOLD COMPANY 12
TUMIPAMPA: FLAGSHIP MULTI-MINERALIZED GOLD PROJECT
Drilling campaign resumed in
early December, 2012
First set of drill results
expeceted in late April, 2013
First phase: 12 holes
approximately 250-300 meters deep targeting one zone
2 exploratory drill holes from
previous drill campaign in 2011
identified edge of skarn structure
Molybdenum was intercepted indicating the pathfinder to
skarn/porphyry type deposits
Skarn
Zone 4
Gold Veins
(15) To date
Disseminated
Breccia
MANTO DORADO
Very important high grade
gold/silver structure discovered
on Tumipampa
Channel samples of 4.9 meters of
8.1 g/t of gold
Commenced an underground
cross-cut campaign in early
December, 2012
Starting first NI 43-101
resource calculation
ROSA VEIN
New vein discovered in early
2000’s intercepted 6.0 meters of
7.3 g/t of gold
“The brecciated locally
mineralized quartzite capping large parts of the
property could indicate deeper sources of mineralization.
For example, Barrick’s deeper Laguna Norte Deposit (9M oz) is
hosted in brecciated quartzites where
the gold is finely disseminated in the quartzites on
the flanks of an antiform in contact with a diatrem.”
ALAIN-JEAN BEAUREGARD, P. GEOL., OGQ, FGAC, AEMQ, NI 43-
101 TECHNICAL EVALUATION REPORT ON THE
TUMIPAMPA PROPERTY NOVEMBER, 2011
A NON-DILUTIVE GOLD COMPANY 13
TUMIPAMPA
Los Chancas / Souther Peru Copper Corp. (32) 355 MT @ 0.62%Cu, 0.07% Mo, 0.039 g/t Au
Las Bambas / Xstrata (36-35) 1,710 MT @0.61%Cu, 0.02%/t Mo, 0.11g/t Au
Tintaya/ Xstrata (42; 35-33) 200 MT @1.15%Cu
Antapacay/ Xstrata 720 MT @0.56%Cu
Antapite / Buenaventura 221.23 koz Au, 0.33 moz Ag
Orcopampa / Buenaventura 2098.40 koz Au, 70.26 moz Ag
Arcata / Cía Hochschild Mining 163.71 moz Ag, 481.33 koz Au
Pallancata / Cía Hochschild Mining 169.63 koz Au, 19.79 moz Ag
Selene / Cía Hochschild Mining 121.09 moz Au, 17.91 moz Ag
Ares / Cía Hochschild mining 1210.75 koz Au, 19.79 moz Ag
Caylloma / Minera Bateas S.A.C. 600.02 koz Au, 51.68 moz Ag
Shila-Paula / Buenaventura 653.13 koz Au, 6.13 moz Ag
APURIMAC COPPER PORPHYRY-SKARN BELT
EPITHERMAL GOLD SILVER BELT
Ataspaca (40)
Ticnamar (41)
Queen Elizabeth (36)
Qda Blanca Collahuasi-Ujina (35-32)
El Abra – Conchi (37-36)
Chuquicamata MM-Tomic (34-31)
Esperanza Telégrafo (42-41)
Centinela Polo Sur (44)
Gaby (42-40)
Escondida – Escondida Norte Saldivar (38-35; 35-31)
Chimborazo (39-38)
Exploradora (33-32)
El Salvador (44-41)
Potrerillos (36-35)
La Fortuna (35-32)
Apolinario (35)
Apolinario (35)
Constancia / Norsemont. 413 MT @ 0.44 % Cu, 0.01% Mo
Haquira/ First Quantum 1,193 MT @ 0.50% Cu APURIMAC BELT
The Belt is an extension of the world renown Chilean copper porphyry belt Exclusive to Peru the belt holds the geological distinction of hosting copper /gold mineralized skarns The skarns layered on top of the porphyries often contain higher grade mineralization
Pierina / Barrick 771 koz Au
TWO KEY MINERALIZED BELTS SITUATED ON TUMIPAMPA
TUMIPAMPA: GEOLOGICAL CONTEXT
Straddles the Apurimac belt which hosts the porphyry-copper and base metals
rich skarn deposits located within the Abancay deflection zone:
Las Bambas (Xstrata Copper) ($4.2B mine development approved) *Los Chancas (Southern Copper Corp) (feasibility study to be announced in Feb/13) Haquira (Antares Minerals) (Received $460M from First Quantum) in 2011 Constancia (Norsemont) (Received $520M from Hud Bay Mining) in 2011
Additionally Tumipampa is located within a gold-silver rich belt of epithermal
veins which host several key hydrothermal deposits:
Orocopampa (2M Au ounce) Pierina (770K Au ounce) Ares (1.2MM Au ounce) Arcata (163K Au ounce) Caylloma (600K Au ounce) Shi-Paula (653K Au ounce) Selene-Pallancanta (300K Au ounce) Antapite (220K Au ounce)
* As of May 2012 immediately adjacent to Tumipampa’s western border.
A NON-DILUTIVE GOLD COMPANY 15
TUMIPAMPA: TARGETING RESOURCE VALUATION
Name of Property Owner of Property Tons of Ore Cu % Au g/t Valuation at $0.10 pound Cu
Las Bambas Xstrata 1.7 Bt 0.77% 0.06 $2.7 billion
*Los Chancas Southern Copper 355 Mt 0.62% 0.04 $440 million
Tintaya Xstrata 195 Mt 1.15% 0.23 $449 million
Antapacay Xstrata 720 Mt 0.56% 0.12 $806 million
Haquira First Quantum 976 Mt 0.60% 0.04 $1.2 billion
Constancia Hudbay Mining 277 Mt 0.43% 0.05 $238 million
* As of May 2012 immediately adjacent to Tumipampa’s western border.
Dynacor has 36.2 million shares outstanding
Dynacor “Tumipampa”
9,000 m drilled to date (8,000 m
underway) Targeting first
43-101 resource
Hudbay Mining “Constancia”
277Mt, 0.43% Cu Acquired March/11
$520M ($0.10/lb Cu)
$1.5B in development
First Quantum “Haquira”
569Mt, 0.64% Cu Acquired Oct/10
$460M ($0.06/lb Cu)
Panoro “Antilla”
154Mt, 0.47% Cu 15,332 m
drilling to date
Panoro “Cotobambas”
404Mt, 0.42% Cu (204M shares outstanding)
TUMIPAMPA: IN A DEVELOPING MINING DISTRICT
Southern Copper (Grupo Mexico) “Los Chancas”
355Mt, 0.62% Cu $1.2B projected
development budget
Xstrata “Las Bambas”
1.7Bt, 0.60% Cu $5.2B in
development
A NON-DILUTIVE GOLD COMPANY
0 km 80 km
West East
$8 Billion in development and 3.6 Billion tons of
ore discovered to date
Bear Creek “La Yegua”
Cu/Au project Joint Venture with Japan (JOGMEC) Drilling campaign
underway
BHP, Golden Ideal Mining and Super
Strong Mining from China
recently staked claims adjacent to
Tumipampa
0 km
An Emerging Copper/Gold
Belt
60 km
BRECCIA
Poctococha Lagoon
Balsacocha Lagoon
Patacocha Lagoon
Skarn (E) Cu-Au
Skarn (W) Cu-Au
Gold veins
Disseminated gold
Zone 4
Colonial gold-rich tailings
Cross-cut tunnel location
Zone 4 drilling targets
0 1 km
15 gold veins discovered to date Ancient drifts from Spanish colonial period 2 old stock piles discovered by Tumipampa River Project consists of three types of gold mineralization: Skarn, Gold Veins and
Disseminated Gold associated with Breccias
TUMIPAMPA: 3D MAP
A NON-DILUTIVE GOLD COMPANY 18
TUMIPAMPA: MANTO DORADO CROSS-CUT 330 NW
A NON-DILUTIVE GOLD COMPANY 19
A crosscut tunnel driven west to the Rosa Vein is expected to intersect
additional gold veins.
HDD-06
HDD-11
3.25m (0.65 m, 13.80 g/t Au)
7.39m (2.76 m, 6.33 g/t Au)
HDD-07, 09
0.34m (0.34 m, 17.70 g/t Au)
1.38m (1.38m, 1.87 g/t Au)
15.00m (1.20 m, 23.80 g/t Au)
Intrusive
6.69 g/t Au, over 4.90 m
MANTO DORADO
outcrop
4600
4550
4500
4450
4400
4350
4300 4300
E
4400
4350
Quartzite
W
2.00 m, 12.25 g/t Au
Argilic Alteration
Cross Cut 330 NW
SKARN
ROSA VEIN
6.0 m of 7.3 g/t gold
MANTO DORADO
CROSS-CUT ENTRANCE CAMP SITE
PREVIOUS CHANNEL SURFACE RESULTS
4.9 m of 8.1 g/t gold
TUMIPAMPA SKARN/MANTO DORADO/ROSA VEIN
A NON-DILUTIVE GOLD COMPANY 20
FINANCIAL OVERVIEW
Dynacor Gold Mines: An auto financed gold company: operating an ore-processing division to generate gold sales that fund the exploration of high-reward mineral properties.
”Dynacor Gold Mines is NOT a diluting asset.”
2013
• New ore processing Plant at Chala under construction
2013
• Tumipampa: drill results advancing exploration of the Cu-Au skarn
Commence first NI 43-101 report on the resources
Bulk sampling of the Cross Cut at Manto Dorado and underground veins
2014
• Increase ore processing capacity at the Chala Plant to
600 tpd
Feasibility study of an ore processing plant at Tumipampa
Underground development in the veins zone
HORIZONS 2013-2014
A NON-DILUTIVE GOLD COMPANY 22
• Toronto Stock Exchange – Symbol: DNG
• Shares issued : 36.2M
• Options : 2.5M
• Fully diluted shares : 38.7M
• Share price : $1.27 (2013)
• Capitalization : $45.9M CAD
Capitalization
March 28, 2013
A NON-DILUTIVE GOLD COMPANY 23
Others
Trapeze Asset Management
Sprott Asset Management
National Bank Wealth Management Group
JP Private Investor Group
Higher Ground Private Investor Group
Wunderlich Securities
CIBC Wood Gundy
Caisse de Depot
Marmite Capital AG
Neuberger Berman
KEY SHAREHOLDERS
A NON-DILUTIVE GOLD COMPANY 24
Experienced and well-balanced team with expertise in:
Geology/Exploration Metallurgy Mine building/engineers Underground/surface mining Custom milling Business management Finance Marketing
Since the inception of Dynacor Gold Mines Inc. in the fall of 2007, the management team has remained focused on a disciplined capital structure, via generating cash flow from its ore-processing division, to unlock the greater shareholder value through the exploration of its 100% owned Tumipampa advanced gold exploration project. Management strives to avoid dilution of its shareholders by repeated financings that typify the junior gold exploration sector.
JEAN MARTINEAU, PRESIDENT AND CEO • 20 YEARS EXPERIENCE IN THE RESOURCE INDUSTRY IN CANADA AND SOUTH AMERICA
• FORMER DIRECTOR OF WESDOME GOLD MINES 1999 – 2007
LEONARD TEOLI, VICE PRESIDENT AND CFO • 20 YEARS EXPERIENCE IN ACCOUNTING AND FINANCE EXECUTIVE • FORMER CFO OF DIA BRAS EXPLORATION 2003-2008 • STARTED CAREER WITH PRICE WATHERHOUSE 1987 – 1996 • MEMBER OF THE CANADIAN INSTITUTE OF CHARTERED ACCOUNTANTS SINCE 1990
JORGE LUIS CARDENAS, GENERAL MANAGER ORE-PROCESSING • MINING ENGINEER • MORE THAN 10 YEARS EXPERIENCE IN MINING (10 YEARS WITH DYNACOR)
ALONSO SANCHEZ, CHIEF GEOLOGIST • 15 YEARS EXPERIENCE AS A MINE AND EXPLORATION GEOLOGIST (EXPERT OF PERUVIAN GEOLOGY)
• FORMER GEOLOGIST OF PUBLICLY LISTED COMPANY BUENAVENTURA S.A.A FROM 1995-2006
• EXPERT IN EPITHERMAL GOLD, SILVER, TIN, TUNGSTEN, POLYMETALLIC DEPOSITS AND SKARNS IN PERU
MANAGEMENT
A NON-DILUTIVE GOLD COMPANY 25
• Consistently increasing cash flow;
• Ramping up gold production in 2013;
• Drilling exploration property with significant geological potential (Cu-Au Skarn + 14 high grade gold veins );
• New drilling campaign underway;
• Low number of shares issued; • Business model protects against future
dilution;
Dynacor Gold Mines Inc. A Promising Future
A NON-DILUTIVE GOLD COMPANY 26
Head Office
625, boul. René-Lévesque Ouest Suite 1105
Montréal, (Québec) H3B 1R2
(514) 939.9000
Investor Relations (604) 492.0099
www.dynacorgold.com