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1
“Silver Producer with a Golden Future”
IR presentation - January 2013
www.intlminerals.com
2
Cautionary Statement
Some of the statements contained in this presentation are “forward-looking statements” within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements in this presentation include statements regarding drilling and development programs on the Company’s projects, timing of commencement of production, reserve/resource additions, completion of feasibility studies, obtaining of required environmental and production permits, timing and significance of future cash flows and dividends.
Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserves; risks relating to project capital, production costs and cash flows; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risk; general financial market and credit risks; other risks and uncertainties detailed in the IMZ’s Annual Information Form (dated September 28, 2012) and Management Discussion and Analysis for the year ended June 30, 2012, both of which are available at www.sedar.com.
Any forward-looking financial information provided may not be appropriate in relation to reporting under International Financial Reporting Standards (IFRS). Please refer to the Company’s latest financial statements and notes. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Qualified Person: The Company’s VP Corporate Development, Nick Appleyard.
Dollar and Year References: “$” and “US$” refer to US dollars unless otherwise noted. Years refer to the respective calendar year unless otherwise noted as fiscal year (June 30).
Au = gold; Ag = silver; g/t = grams per metric tonne; M = million; $M = million dollars; Mt = million tonnes; oz or ozs = troy ounces; tpd = metric tonnes per day
3
Focus: Gold and Silver Deposits in the Americas
Large Resource Base: 9.5M Gold Equivalent Ounces
Pallancata Silver Mine, Peru (40% IMZ, 60% Hochschild) Estimated Production in 2012: ~9 Million Silver Equiv ozs World’s 6th largest primary silver mine
Inmaculada Gold-Silver Project, Peru (40% IMZ, 60% Hochschild) Production Start-up: 2H 2014 Production 2014: ~200,000 Gold Equiv ozs/year
Nevada (100% IMZ) Goldfield Gold Mine: start-up mid-2015 Converse Gold Property: pending further studies
Ecuador: Pending sale of assets
Financial Strength: $73M in cash and debt free
Announced initial dividend of C$0.12/share, payable Jan 31st.
IMZ – Overview
Peru 14%
USA 86%
Reserves and Resources
Pallancata, Peru
4
Shares Issued: 117.6 million
Fully Diluted Shares: 121.4 million Options: 3.8M
Recent Share Price: C$4.52
52-Week Range: C$4.00-C$5.81
IMZ - Capital Structure and Stock Performance
Dundee Securities (C) – D. Mah National Bank (C) – S. Parsons TD Securities (C) – S. Green Dahlman Rose (US) – A. Graf Bank Vontobel (SW) – P. Rafaisz Canaccord Genuity (UK) – T. Dudley Zürcher Kantonalbank (SW) – M. Schreiber
Analyst Coverage
Listings - Toronto and Swiss: Symbol “IMZ” Swiss Performance Index (SPI): Top 100
Market Capitalization: C$532 million (~$540 million)
Cash: $73 million
Debt Free
One year relative performance
Weighted in US$
5
IMZ - Key Financial Data - Fiscal years end June 30th
10%
5%
0%
Ret
urn
on E
quity
%
% Return on Equity (Cont. Ops; Pre-Tax Basis)
Pre-Tax Net Income from Continuing Operations
($ Millions)
15%
0.1%
7.2% US
$Mill
ions
Pre-Tax Cash Flow from Continuing And Discontinued Operations
($ Millions)
09 11 08 10 12
20%
8.9%
20.6%
Note: Fiscal 2011 and 2012 numbers reflect adoption of IFRS as of July 1, 2011.
13 Q1 annualized*
8.6%
US
$Mill
ions
$10
$40
$0
-$5
$30
1.6 4.0 09 11 08 10 12
$20
$50
$60
$70
$80
13 Q1 annualized*
35.9
18.9
39.7
19.3
72.4
$10
$5
$0
-$5
$15
09 11 08 10 12
$25
56.7
$35
$30
42.4*
$45
$20
$50
$55
$60
0.2
8.7
15.5
Min
e R
oyal
ty
30.4
24* 29.1
12.6%*
$40
13 Q1 annualized*
6
IMZ - Property Locations
Gaby
Pallancata Inmaculada
Rio Blanco
7
Production
Development
Drill Targets
Pallancata
Converse
Gemfield (Est Prodn 2015)
Inmaculada (Est Prodn 2014)
IMZ - Project Pipeline
Peru
U.S.A.
Del Oro/Rye Acoma
McMahon Ridge/Goldfield Main
Pallancata, Peru
8
IMZ - Reserves / Resources
Notes: 1. Average Au equiv conversion of 61:1 Ag to Au ratio for reserves and 62:1 for resources. 2. P+P = Proven and Probable Reserves 3. M+I = Measured and Indicated Resources 4. M+I includes P+P.
5.0
4.5
4.0
3.5
3.0
2.5 2.0
1.5 1.0
0.5
M+I Resources (83%) (Total 7.89 M ozs Au Eq)1,3,4
P+P Reserves (Total 1.32 M ozs Au Eq)1,2,4
Inferred Resources (17%) (Total 1.65 M ozs Au Eq)1
5.5
Gol
d Eq
uiva
lent
Oun
ces
(Mill
ions
) 6.0
10
5
0
Gol
d Eq
uiv
(M
illio
n O
zs)
08 10 07 09 Total M+I Gold Equiv Resources
11 12
Peru 14%
USA 86%
Reserves and Resources
Gol
dfie
ld (1
00%
)
Con
vers
e (1
00%
)
USA
Palla
ncat
a (4
0%)
Inm
acul
ada
(40%
)
Peru
9
IMZ - Project Summaries
Pallancata (40%)
Inmaculada (40%)
Goldfield (100%)
Converse (100%)
Location Peru Peru Nevada Nevada Metals Ag + Au Au+ Ag Au Au + Ag Type of Operation Underground Underground Open Pit Open Pit Status Production Development Development Advanced Expl Production Date N/A 2H 2014 Mid 2015 ? Annual Production 3.8M ozs Ag
12,000 ozs Au 50,000 ozs Au I.7M ozs Ag
66,000 ozs Au 110,000 ozs Au 638,000 ozs Ag
Mine Life 7.5 years 6.3 years 6.5 years 13.5 years Initial Capital Costs N/A $112M $133M $455M Total Cash Costs/oz (1) Net of By-Products
$9/oz Ag $265/oz Au $611/oz Au $745/oz Au
Economic Parameters (2)
at $1,500 Au, $25 Ag:
• Life of Mine Cash Flow $300-350M $335M $229M $936M • NPV @ 8% Disc. Rate --- $223M $110M $316M • IRR --- 55% 29% 37%
(1) By-product credit: Value of by-product metals are deducted from cash operating costs. (2) All amounts are pre-tax.
10
Pallancata76M oz M&I Ag Eq
(160 sq km)
Central Area(370 sq km)
Selene
Inmaculada1.5M oz M&I Au Eq
(210 sq km)
10 km
100% Hoch
60% Hoch40% IMZ}
IMZ - Pallancata Silver Mine (40% IMZ), Peru – Principal Veins
Pallancata West
Central Zone
Main Structure
To Mariana/ Mercedes/ San Javier
(Looking Northwest)
Suyamarca River
Ranichico (8% 2012 prodn.)
Mercedes
Camp
Pallancata- Plan View
Central Zone (51% 2012 prodn.)
View of Photograph
Pallancata West (37% 2012 prodn.)
Rina (2% 2012 prodn.)
Pallancata East (2% 2012 prodn.)
District Map
11
IMZ - Pallancata Mine, Peru (40% IMZ)
Mine • Underground, 3,000 tpd • Flotation circuit (concentrate) • Recoveries: 85% Ag, 70% Au
Mine Life • ~7 years, including current resources
2011 2012E
Ore production (tonnes) 1,070,500 t 1,050,000 t
Head grade Ag/Au 301g/t / 1.3g/t 286g/t / 1.4g/t
Production Ag/Au (oz)
8.8M oz Ag 33,881 oz Au
7.8M oz Ag 30,000 oz Au
Direct site costs/oz Ag (net of gold credit)
$2.20
$4.00E
IMZ total cash costs/oz (net of gold credit)
$6.38
$8.00E
2012 Est. Operating Cash Flow to IMZ
Ag Price / Ounce
$60
$24 $26 $28 $30 $32 $34
$50
$40
$ 30
Mill
ions
$36
$70
$53 $47
$41 $35
$28
$66
Post-Capex / Pre-Tax
2008 2009 2010
100% Production (40% to IMZ)
4.2
16
8.4
32
10.1
36
2011
8.8
34
2012E
32E
7.8E
Gold (,000 ozs) Silver (M ozs)
$59
12
IMZ – Pallancata, Resources replace production – Inmaculada is growing!
For initial investment of ~USD5mln, we have recouped over USD116 mln in net dividend payouts
-
20
40
60
80
100
120
140
160
180
Millions of Ounces
Pallancata silver equivalent resources (at 60:1 ratio)
M&I ounces Inferred ounces Mined Ounces
Inmaculada M&I Inmaculada Inf
Pallancata M + I +97%
Pallancata Inferred +3%
Pallancata Mined Ag Eq 48mln
Inmaculada Inferred Resources Inmaculada M + I
13
Angela
Lourdes
Martha
Cymoid Angela SW
Jimena
Melisa
Angela SW
Angela NE
Verónica
Shakira
Plan View – Multiple Veins near to Angela Vein*
Inmaculada
Further potential along Angela Vein (Long Section looking Northwest)*
IMZ - Inmaculada Project (40% IMZ), Peru - Angela Vein
*Source: Hochschild Mining plc
Vein Outcrop
Approximate Eastern Limit of Feasibility Study
Production adit at Inmaculada
14
IMZ - Inmaculada, Peru - IMZ 40% / HOC 60% - Feasibility Study Jan 2012
Operation • Underground, 3,500 tpd • Conventional cyanidation (dore) • Recovery: 96% Au, 91% Ag
Mine Life • 6.3 years (basis initial reserves)
Production Estimates
• Average/year: 124,000 oz Au, 4.2Moz Ag • Direct cash op costs /oz: $133 (net of Ag credit) • Total cash op costs/oz: $172 (net of Ag credit)
Initial Capital • $370 million - Nov 2012 update
Base Case Economics $1,100 Au, $18 Ag
• NPV0%: ~$323M ($194 after-tax) • NPV8%: $120M ($46 after-tax) • IRR: 18% (12% after-tax)
Sensitivity $1,500 Au, $25 Ag
• NPV0%= $821M ($492 after-tax), NPV8%=$433M ($236 after-tax), IRR = 38% (27% after-tax)
Outlook • Permitting ongoing, decline development underway Production Date : 2H 2014
Production Estimates (100% Project Basis)
.
70
1.7
128 113
4.3 5.2
99
4.6
2014 2015 2016 2017
Gold (,000 ozs) Silver (M ozs)
100% Project Basis 2014 Est. Pre-tax Operating Cash Flow to IMZ
Au Price / Ounce $900 $1100 $1300 $1500 $1700
$75
$50
$25
$ 0
Mill
ions
$100
$1900
$109 $93
$29 $45
$61 $77
$2100
$125
15
IMZ - Goldfield, Nevada - IMZ 100% - Development Stage
Historical Mining District in Southern Nevada Approx 4M oz gold production from 1903-1940’s at ~18 g/t
Three Gold Deposits (Gemfield, McMahon Ridge, Goldfield Main)
P+P Reserves*: 0.51M oz Au (14.3Mt at 1.1 g/t Au)
M+I Resources: 1.23M oz Au (31.1Mt at 1.2 g/t Au)
Inferred Resources: 0.44M oz Au (10.9Mt at 1.3 g/t Au)
Heap Leach Feasibility Study at Gemfield: July 2012 Basic engineering begins Q4 2012 – ends Q2 2013
Targeting Production in Mid 2015 (Gemfield only) 66,000 Au ozs/year, 6,000 tpd open-pit heap leach operation New met tests suggest a 7,500 tpd operation with 14% lower processing costs and
G & A is feasible. A new mine plan is scheduled for Q2 2013. Capex estimate: $133M (Plant/Infrastructure $93M, Mine $20M, Road $20M)
Total cash cost (with Ag by-product credit): $611/oz Au
Future Milling Scenario Under evaluation
Testing new drill targets outside of existing mineralized areas * P+P Reserves included in M+I Resources.
16
Reno - 4.5 hours
Las Vegas - 2.5 hours
IMZ - Goldfield, Nevada – Principal Gold Deposits
X-section
17
IMZ - Goldfield, Nevada: Gemfield Deposit Feasibility Study - July 2012
Operation • Open Pit., 6,000 tpd ( could rise to 7,500 tpd *) • Heap leach (dore) • Recovery: 84% Au
Mine Life • 6.5 years (basis initial reserves)
P&P Reserves (1)
$1,350/oz Gold • 511,000 oz Au (14.3 Mt @ 1.1 g/t Au)
M&I Resources(1)
(includes reserves) Inferred Res. (1)
• 574,000 oz Au (17.0 Mt @ 1.0 g/t Au) • 74,000 oz Au (4.2 Mt @ 0.6 g/t Au)
Production Estimates
• Average/year: 66,000 oz Au • Direct cash op costs /oz: $526 (net of Ag credit) • Total cash op costs/oz: $611 (net of Ag credit)
Initial Capital • $133 million (based on feasibility study July 2012)
Base Case Economics $1,350 Au
• NPV0%: ~$168M ($132M after-tax) • NPV 7%: $83M ($59M after-tax) • IRR: 22% (18% after-tax)
Outlook • Permitting ongoing, basic engineering underway • Production Date: Mid 2015
Production Estimates
73 81
62 55
Avg. Annual Est. Pre-tax Operating Cash Flow(2)
Au Price / Ounce $1100 $1350 $1600
Year 1 Year 2 Year 3 Year 4
Gold (,000ozs)
$30
$20
$10
$ 0
Mill
ions
$40
$1850
$57
$42
$10
$26
(1) Silver is not material . (2) Production and pre-tax operating cash flow on operating year basis. Silver revenue is
not material. (3) See appendix for details of July 2012 Feasibility Study. * See Nov 1st press release on Gemfield update.
$60
$50
18
IMZ - Converse, Nevada - IMZ 100% - Scoping Study - December 2011
Operation • Open pit, 45,000 tpd. • Heap leach (Dore) • Recovery: ~60% Au, 30% Ag
Mine Life • 13.5 years • Strip ratio 2.3:1
P&P Reserves
• No reserves defined to date
Resources
• M+I : 320Mt @ 0.50 g/t Au and 3.7 g/t Ag (5.2M oz Au, 38.0M oz Ag) • Inferred: 31.2Mt @ 0.51 g/t Au and 3.0 g/t Ag (507,000 oz Au, 3.0M oz Ag)
Production Estimates
• Average/year: 160,000 oz Au, 638,000 oz Ag • Direct cash cost /oz: $745 (net of Ag credit) • Total cash op costs/oz (incl capex): $998 (net of Ag credit)
Initial Capital • $455 million
Base Case Economics $1,300/oz Gold $25/oz Silver
• NPV0%: ~$494M • NPV8%: $70M • IRR: 11% • Cost per tonne ore processed: $8.35
Sensitivity • $1600/oz Au & $31/oz Ag: NPV0%= $1,158M, NPV8%= $440M, IRR=22%
Outlook • Further studies pending met test work Q4 2012
Production Estimate 219
156
183
151
Avg Pre-tax Operating Cash Flow /Year
Au Price / Ounce $1000 $1200 $1400 $1600 $1800
Year 1 Year 2 Year 3 Year 4
Gold (,000ozs)
$120
$80
$40
$ 0
Mill
ions
$160
$2000
$151 $119
-$13 $20
$53 $86
$184
$2200
$200
19
IMZ - Converse, Nevada - Regional Mines and Cross-Section
2
21
28 29
6
T33N
Trout Creek
Trenton Valmy
Trenton North Peak
Phoenix Fortitude
R42E R44E
32
20
16
10
80
4 4 9 0 0 0 0 N 4 5 0 0 0 0 0 N
4 5 2 0 0 0 0 N
490000E 470000E
33
Humboldt County Lander County
Humboldt County Pershing County 5
Converse Converse IMZ IMZ
MARIGOLD MINE
VALMY
TRENTON CANYON MINE Trenton Canyon Main
NEWMONT COPPER BASIN AREA
BUFFALO VALLEY MINE
NEWMONT COPPER CANYON AREA
R43E
LONE TREE MINE
480000E
80
Gold Mine, deposit IMZ- fee land
IMZ- BLM land
T32N
T31N
N
NEWMONT
GOLDCORP/BARRICK
4510000N
NEWMONT
NEWMONT
Schematic Cross Section Looking East
Conv-005C Conv-004C
TD=1,800ft (549m)
TD=2,388ft (728m)
17
IMZ drilling extended mineralization at depth
0 1 2 3
Miles
20
IMZ - 5 Year Estimates: Project Time Lines
Pallancata, Peru
Inmaculada, Peru
Goldfield, Nevada(1)
Converse, Nevada(2)
2012 2013 2014 2015 Q1 Q2 Q3
Feasibility
Further Development Pending
Permit / Construction
Permit / Construction
Production
Production
2016
Production
(1) Goldfield: - Heap leach scenario for Gemfield only. - Milling option for Goldfield Main (plus Gemfield and McMahon Ridge) yet to be fully evaluated. (2) Converse: - Further development pending results of metallurgical test work.
Pallancata, Peru
Goldfield, Nevada
21
IMZ - 5 Year Estimates: IMZ Production and Costs 2012-2016
80,000
60,000
2016
E
2011
A
2012
E
2013
E
2014
E
Gol
d E
quiv
alen
t Oun
ces*
100,000
1. Pallancata: Basis Dec 31, 2011 reserve and resource estimates. 2. Inmaculada: Basis Jan 2012 Feasibility Study. 3. Goldfield: Basis July 2012 Feasibility Study.
120,000
140,000
160,000
180,000 Pallancata (40% IMZ)
Total Cash Costs
Goldfield (100% IMZ)
Total Production Costs
Inmaculada (40% IMZ) 200,000
240,000
220,000
2015
E
$700
$600
$500
US
$/o
z P
rodu
ctio
n C
ost
$800
260,000
280,000
300,000
320,000
$900
$1000
$400
Industry-Average Total Cash Costs 1H 2012 ($720) **
Industry-Average Total Production Costs 1H 2012 ($930)**
Inmaculada, Peru
* Gold Equiv ozs based on average 50:1 silver-gold ratio ** Industry-average costs basis GFMS Gold Survey 2012 updated Sept 2012 – figures are 1H 2012 average
22
IMZ - 5 Year Estimates: Pre-tax Cash Flow from Operations
$0
2011
A
2012
E
2013
E
2014
E
$200
$100
$1,000 gold, $20 silver $1,500 gold, $30 silver $1,800 gold, $35 silver
1. Pallancata: Basis Dec 31, 2011 reserve and resource estimates. 1.2. Inmaculada: Basis Jan 2012 Feasibility Study (IMZ 40%). 2.3. Goldfield: Basis July 2012 Feasibility Study. 4. 2012 estimate does not include $38M from sale of Ruby Hill royalty.
$300
Goldfield (100% IMZ)
Pallancata (40% IMZ)
Production Royalty
Inmaculada (40% IMZ)
2015
E
2016
E
$ 0
$200
$100
$300
$1000 Au, $20 Ag
$1,500 Au, $30 Ag
$1,800 Au, $35 Ag
Converse, Nevada
23
IMZ – 5 Year Estimates: Total Costs
(1) Pallancata: Basis Dec. 31, 2011 reserve and resource estimates. Numbers include annual exploration estimates. (2) Inmaculada: Basis Jan 2012 Feasibility Study. HOC pays first $100M feasibility, development and capex. IMZ share of $315M total capex = $90M.
Assumes $140M of asset-based financing for project in 2013. Numbers include annual exploration estimates and principal/debt repayments. (3) Goldfield: Basis July 2012 Feasibility Study. Assumes $57M of debt financing in 2014 (total initial capex $133M). Numbers include principal/debt
repayments.
Goldfield
Inmaculada
Pallancata
Other Exploration + G&A
Projects $60
$100
$0
$80
$40
$120
$20
$140
2011A 2012E 2013E(2) 2014E(3) 2015E 2016E
$60
$100
$ 0
$80
$40
$120
$20
$140
57
49
87
78
122
78
Goldfield, Nevada
24
IMZ - 5 Year Estimates: Cum. Operating Cash Flow vs Total Spending
$200
2011A 2012E(1) 2013E(1) 2014E(2) $ 0
2015E
$600
$400
$800
$1,000
2016E
Cum. Capex + Other
Cum. Op. Cash. Flow $1,500 Au, $30 Ag
$200
$ 0
$600
$400
$800
$1,000
Cum. Op. Cash Flow $1,800 Au. $35 Ag
Cum. Op. Cash Flow $1,000 Au, $20 Ag
(1) Assumes $140M asset-based project financing at Inmaculada. Reduces IMZ capex contribution of $90M to $34M in 2012 and 2013. (2) Assumes $57M of debt financing for Goldfield in 2014 (total initial capex $133M).
25
Kirk
land
Lak
e
Rom
arco
B-2
Gol
d
Hig
h R
iver
Lake
Sho
re
San
Gol
d
Tim
min
s
Alac
er
Jagu
ar
Argo
naut
Intl
Min
s
GO
LDC
OR
P
BAR
RIC
K
AGN
ICO
Enterprise Value /Total Gold Resource Ounces
$200
$100
$50
EV U
S$/G
old
Res
ourc
e O
zs
$250
$300
$350
$400
Source: -Company Disclosure, Bloomberg. Based on most recent financials. - Resources include reserves. - Enterprise Value = market capitalization plus debt less cash.
$450
16
14 12
10
8
6
M +
I +
Infe
rred
Res
ourc
es (
ozs)
18
2
20
$49
38 231 220 116
4
$150
$35
ANG
LOG
OLD
22
Gol
den
Star
$129
$81
Total Resource Ozs
$57
$146
$209
$56
$256
Auriz
on
$55
$105 $80
$110
$244 $245
$146
$101
26
IMZ -The Investment case
Growing Production and Cash Flow Pallancata (IMZ’s 40% interest)
• 2012: ~3.6M oz Ag Equiv (65,000 oz Au Equiv) • 2012: ~$20-30M free cash flow
Inmaculada (IMZ’s 40% interest) • Production date: 2H 2014 • 78,000 oz/year Au Equiv • 2014 Free cash flow: ~$35-$40M
Growth from Nevada Gold Projects (IMZ 100%)
Production at Goldfield - mid 2015 Pending further studies at Converse - 2013
Maintain active exploration program Brownfield exploration on Goldfield lease, NV. Central Nevada (Del Oro/Rye) Southeastern Peru (Acoma)
Strong Balance Sheet $73M in cash and debt-free
Camp at Inmaculada, Peru
Production Adit, Inmaculada, Peru
27
IMZ - Value added
Ventura Gold Acquisition 2010 (for Inmaculada property)
USD mlns Acquisition cost, net 0.4 Exploration spending by IMZ 12.1
Total IMZ investment 12.5
Total Au Eq M + I ozs (IMZ 40% share) 0.4* * excludes 0.25 mln Inferred ozs
COST PER OUNCE (Au eq) USD Acquisition cost per ounce 1.00 Development cost per ounce 30.30 Total cost per ounce Au 31.3
TANGIBLE RESULTS TO DATE Inmaculada under construction Minimal IMZ initial capital obligations Significant resource expansion potential
28
IMZ – Value added
Metallic Ventures Purchase 2010 (for Goldfield and Converse projects)
USD mlns Acquisition cost, net 51.5 Cash received from royalty -47.8 Net cost to IMZ 3.7 Exploration spending by IMZ 25.4
Total IMZ investment 29.1
Total Au Eq M + I ozs mlns 6.79* (*excludes 1.08 mln Inferred Au Eq ozs)
COST PER OUNCE (Au eq) USD Acquisition cost per ounce 0.54 Development cost per ounce 3.74 Total cost per ounce Au 4.29
TANGIBLE RESULTS TO DATE One mine (Goldfield) in development Significant resource expansion potential
29
IMZ - News Flow/Catalysts in 2012/2013 Q2 Financial Results: - Feb 14 2013
Nevada, USA:
Goldfield: - Project update - Q2 2013
Converse: - Metallurgical testwork update - Q4 2012 - Decision on Further studies - Q4 2012
Del Oro/Rye: - Drill Permitting commenced - Q4 2012
- Commence drilling - Q2 2013 Peru:
Inmaculada project update - Q1 2013 Pallancata Q4 production stats - Q1 2013 Pallancata Ore Resource update - Q1 2013
Ecuador:
Sale of projects - Q4 2012/Q1 2013
30
IMZ - Directors, Officers and Senior Management
Directors Position Profession Nationality
Stephen Kay President/CEO Geologist British
Rod McKeen Corp. Secretary and Legal Counsel, Canada
Lawyer Canadian
Mike Smith Audit Committee Chairman Lead Independent Director
Chartered Accountant
Canadian
Gabriel Bianchi Independent Director Asset Manager Swiss
Roberto Baquerizo Independent Director Asset Manager Ecuadorian/U.S.
Jorge Paz Legal Counsel, Ecuador Lawyer Ecuadorian/Swiss
John Hick Independent Director Lawyer Canadian
Other Senior Management and Officers
Scott Brunsdon
Nick Appleyard
CFO
VP Corp. Development
Economist
Geologist
Canadian/U.S.
Australian
Paul Durham VP Corp. Relations Geologist British
Alan Matthews VP Special Projects Mining Engineer British
31
IMZ - Contact Information
Website: www.intlminerals.com
Investor Relations
• Paul Durham VP - Corporate Relations Office phone: +1 (203) 883-8359
Cell Phone: +1 (203) 940-2538 Email: [email protected] • Christine Stewart Renmark Financial (Canada) Toronto Office: +1 (416) 644 2020 Montreal Office: +1 (514) 939 3989 Email: [email protected]
Headquarters (U.S.A.)
• Stephen Kay President and Chief Executive Officer Phoenix office: +1 (480) 483-9932 Fax: +1 (480) 483-9926 Email: [email protected]
• Oliver Holzer Marketing Consultant (Europe) Swiss office: +41 44 853 00 47 Mobile: +41 79 402 39 33 Email: [email protected]
32
APPENDIX & FOOTNOTES
1. See slides below for the details of Pallancata and Rio Blanco reserve/resource estimates and the Converse, Goldfield and Gaby resource estimates. Inmaculada reserve and resource estimates are shown in slides 15 & 38. Please refer to the Company’s NI 43-101 reports and related news releases filed on SEDAR for a discussion of assumptions, parameters and material risk factors. Estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.
2. The Inmaculada feasibility study information and reserve and resource estimates were announced in a news release dated January 11, 2012. A Technical Report on Inmaculada was filed by the Company on SEDAR on February 24, 2012.
3. The Goldfield feasibility study information and reserve and resource estimates were announced in a news release dated July 17, 2012. A Technical Report on Inmaculada was filed by the Company on SEDAR on August 31, 2012.
4. The Rio Blanco data for production, cash costs, capex and operating cash flow (slide 47) are presented on a pre-tax, pre-government royalty and pre-windfall tax basis, as reported in a Feb 19, 2009 Company news release about Rio Blanco’s updated costs. Life of mine production for the February 2009 estimate is based only on mineral reserves of the Alejandra North and San Luis deposits at Rio Blanco.
5. Gaby’s annual production, cash costs and capex estimates (slide 52) are sourced from an addendum to the preliminary feasibility study (PFS) announced in a January 29, 2009 Company news release.
6. Rio Blanco’s and Gaby’s outlook and production start-up estimates are dependent on continuation of project development pending a review of options to optimize value to shareholders.
7. Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent consultant R. Mohan Srivastava, a Qualified Person under NI 43-101 and has an effective date of February 1, 2011. Gemfield reserve estimate was prepared by D. Anderson of Micon International Ltd (July 2012). Gemfield and McMahon Ridge resource estimates were calculated by R. Mohan Srivastava with an effective date of July 17, 2012.
8. IMZ uses the Gold Institute’s definition of “Total Cash Costs”. For Pallancata, IMZ’s Total Cash Costs per ounce of silver produced, net of gold credit, include mine operating costs, mined ore inventory adjustment, toll processing and mine general and administrative costs, Hochschild’s management fee, concentrate transportation and smelting costs, taxes (other than federal income tax) and Peruvian government royalty. Direct Site Costs per ounce silver comprise direct mining, mined ore inventory adjustment, toll processing and mine general and administrative costs (net of gold by-product credit).
9. IMZ accounts for its 40% ownership of the Pallancata Mine and the Inmaculada project on an equity accounting basis. 10. Production at Pallancata is shown from start-up of mining operations, September 2007.
33
Pallancata - December 31, 2011 Reserves & Resources
Notes: 1. Gold equivalent and silver equivalent values based on 60:1 silver-gold ratio 2. Measured and Indicated Resources include Proven and Probable Reserves 3. Cut off grade of 144 g/t silver. 4. Resource and reserve estimates have an effective date of December 31, 2011. 5. Numbers have been rounded in all categories to reflect the precision of the estimates. 6. Hochschild’s data and methodology were reviewed by IMZ’s VP of Corporate Development, Nick Appleyard and VP Special Projects,
Alan Matthews, both Qualified Persons as defined by National Instrument 43-101.
Reserves Tonnes Silver (g/t)
Gold (g/t)
Silver (oz)
Gold (oz)
Silver Equiv (1)
(M of oz)
Gold Equiv (1)
(M of oz)
Proven & Probable 3,450,000 287 1.4 31,848,000 152,000 41.0M 683,000
Resources
Measured & Indicated (2)
5,015,000 372 1.7 60,006,000 278,000 76.7M 1,278,000
Inferred Resource 2,813,000 347 1.5 31,335,000 132,000 39.3M 654,000
100% Basis (40% Attributable to IMZ) Basis $1,080 gold, $18.00 silver, Cut-off Grade 144 g/t silver
34
Pallancata Longitudinal Section - Looking Northeast
DDH OROVEGA
DDH HOC . ejecutado
DDH Programa 2010
DDH Programa 2011
SYMBOLS LITHOLOGIES
T. And. - Pómez T. And. - Lapilli
L. And.Porf. T. And.- Lit..
L. And.Afan. Domo / Flujo Rhyodacite
Hipabisal Diorite
Measured Resources
Indicated Resources
Inferred Resources
RESOURCES
EXTREMO SUR ESTE
Domo Sarnahuiri
3,000
3,400
3,800
4,200
4,400
4,600
4,800
4,000
3,600
3,200
HUARARANI NW PALLANCATA
SOUTHEAST PALLANCATA
CENTRAL PALLANCATA
WEST PALLANCATA
EAST
EXTREME SOUTHEAST
PALLANCATA WEST = Areas Currently in Production
1,300m 5,000m
PALLANCATA SOUTHEAST
= Areas in Development
A A’
35
Inmaculada - Multiple Targets
14,672 ha. property
Inmaculada
Angela Vein
Angela Vein Outcrop
36
10
10
50
50
100 10
50
4600 m
50
50
10
10
SW NE
4200 m
25
10
25
50
10
10 25
25 50
100
50
139
10
25
100
10
100
50
100 50
1000
0
100
25
100
100
25
25
25
100
1005
0
1010
0
1015
0
1020
0
1025
0
1030
0
1035
0
1040
0
1045
0
1050
0
1055
0
1060
0
1065
0
1070
0
1075
0
1080
0
1085
0
1090
0
1140
0
1100
0
1145
0
1110
0
1120
0
1130
0
1150
0
1160
0
1170
0
1180
0
1190
0
1200
0
Meters 50 100 0 200
o
o
o
o
o
o
Surface
Grade-Thickness Contours: Au Equivalent (g/t) x true width (m)
Drill Holes with No Significant Values
Drill Hole Mineralized Intercepts
25 50
10 100
o
Eastern Limit of Feasibility Study
Inmaculada - Angela Vein - Long Section (Looking Northwest)
4300 m
4400 m
4500 m
Inmaculada
Vein Outcrop
21,000 Hectares (210 sq km) - 60 km SW of Pallancata
Similar Low-Sulfidation Epithermal Vein System
Over 2 km in Strike Length and 300m Vertical Extent
Open East and West and One of Multiple Veins on Property
99% of Known Mineralization Not Exposed on Surface
37
Inmaculada, Peru - Reserves & Resources- January 2012
1. Numbers are rounded to reflect the precision of a resource estimate. 2. Measured and Indicated Resources include Proven and Probable Reserves. 3. Cut-off grade for estimated Reserves is 2.3 g/t gold equivalent. Cutoff grade for estimated Resources is 1.5 g/t gold equivalent. Gold equivalent ounces are
estimated for mineral resources using a 60:1 silver to gold ratio. 4. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability. 5. To limit the influence of individual high-grade samples, grade capping was used. Gold assay grades were capped at 100 g/t and silver grades were capped at 5,000
g/t for the Angela vein which contributes 95% of the measured and indicated tonnage and 97% of the gold equivalent ounces. Minor veins were capped at variable values ranging from 5 g/t to 50 g/t gold and 500 g/t to 1,250 g/t silver.
6. An estimated dry bulk density of 2.51 tonnes per cubic meter was used for all mineralized rocks. 7. The grades were interpolated using the “Ordinary Kriging” estimation technique. 8. The contained metal reserve estimates include mining dilution (averaging 28% at a grade of 0.3 g/t Au and 11 g/t Ag) and 3% ore losses , but remain subject to
process recovery losses. 9. The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM),Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council December 11, 2005. 10. The reserve and resource estimates have an effective date of January 11, 2012.
Reserves Million Tonnes
Gold (g/t)
Silver (g/t)
Gold (oz)
Silver (oz)
Gold Equiv (oz)
Proven 3.844 3.40 106 421,000 13,125,000 640,000
Probable 3.958 3.33 134 424,000 17,796,000 707,000
Proven & Probable 7.801 3.37 120 845,000 30,140,000 1,347,000
Resources
Measured 3.28 4.10 128 430,000 13,500,000 655,000
Indicated 3.78 4.05 159 490,000 19,300,000 812,000
Measured & Indicated (2) 7.07 4.07 144 930,000 32,800,000 1,477,000
Inferred Resources 4.94 3.91 152 620,000 24,200,000 1,023,000
100% Project Basis, 40% Attributable to IMZ Base-Case: $1,100 Gold, $18.00 Silver
38
Inmaculada, Peru (40% IMZ, 60% Hochschild) - Feasibility Study Results Item Units 100% Project IMZ 40% Base Case gold price $ per ounce $1100 $1100 Base Case silver Price $ per ounce $18 $18 Initial Mine life years 6.3 6.3 Expected Production Date date Dec. 2013 Dec. 2013 Average annual gold production ounces/year 124,000 49,600 Average annual silver production ounces/year 4,204,000 1,682,000 Average annual gold equiv. production4 ounces/year 194,000 78,000 Life-of-mine gold production ounces 783,000 313,000 Life-of-mine silver production ounces 26,488,000 10,600,000 Life-of-mine gold equiv. production4 ounces 1,220,000 488,000 Plant processing rate (3,500 tpd) tonnes/year 1,260,000 1,260,000 Metallurgical recovery – gold % 95.6% 95.6% Metallurgical recovery – silver % 90.6% 90.6% Initial capital 2 $ millions $315 $91 Direct site costs 3 per tonne processed $74 $74 Direct site costs3, 5 per ounce Au (with Ag credit) $133 $133 Total cash operating costs3,5, 6,7 per ounce Au (with Ag credit) $172 $262 IRR pre-tax/post-tax % 18% / 12% 26% / 21% Pre-tax /post-tax cash flow (non-discounted)
$ millions $323 / $194 $136 / $95
Pre-tax/post-tax NPV, 5% discount rate $ millions $181 / $90 $85 / $57 Pre-tax/post-tax NPV, 8% discount rate $ millions $120 / $46 $63 / $40
1. IMZ owns a 40% interest in the Inmaculada project. Under the joint venture agreement signed between IMZ and Hochschild, in December 2010, Hochschild must contribute the first $100 million of feasibility study, project development and capital costs with subsequent costs funded 60% by Hochschild and 40% by IMZ. Hochschild will receive a 7% management fee as operator of Inmaculada. Table does not consider the impact of these agreement terms.
2. Initial capital includes $25 million in contingency allowance and is based on Q4 2011 estimates. No escalation factors have been applied. 3. Direct site costs include mining, processing and mine administration. Total cash operating costs include direct site costs plus estimates of refining charges
and government royalty (but do not include workers profit sharing which is 8% of net income). IMZ costs also include estimate of management fee. 4. Gold equivalent (“gold equiv.”) numbers are estimated using a silver-to-gold ratio of 60:1 calculated by using the ratio of the base case metal prices. 5. By-product accounting subtracts the revenue generated by silver from the total operating costs to determine the cost per ounce of gold. 6. For comparative purposes, if IMZ had selected co-product accounting, the resulting total cash operating costs on a 100% project basis are estimated to be
$502/oz of gold and $8.20/oz of silver. 7. For comparative purposes, if IMZ had selected co-product accounting, the resulting total cash operating costs for IMZ’s 40% interest of the project are
estimated to be $560/oz of gold and $9.15/oz of silver.
39
Inmaculada, Peru - Sensitivity to Gold & Silver Prices
Gold Price / Silver Price ($/oz) BASE CASE
Category
$900 / $15.00
$1,100 / $18.00
$1,300 / $21.00
$1,500 / $25.00
$1,700 / $28.00
$1,900 / $31.00
IRR 5% / 9% 18% / 26% 28% / 40% 38% / 55% 46% / 67% 53% / 78% Cash Flow ($ millions)
$88 / $42 $323 / $136 $559 / $231 $821 / $335 $1,057 / $429 $1,292 / $523
NPV 5% ($ millions)
$6 / $15 $181 / $85 $356 / $155 $551 / $233 $726 / $302 $901 / $372
NPV 8% ($ millions)
-$28 / $3 $120 / $63 $268 / $122 $433 / $188 $581 / $247 $729 / $306
Pre-tax Sensitivity Analyses 100% Project Basis v 40% Attributable to IMZ
(base-case in bold)
NOTE: $181 / $85 = 100% Project Basis / 40% Attributable to IMZ
40
Milltown
Gemfield Principal Gold Deposit
Other Targets
Goldfield Main: 780,000 oz Gemfield: 560,000 oz McMahon Ridge: 285,000 oz
Gold Resources: 1.6M ozs
Goldfield, Nevada – Principal Target Areas
Main Goldfield
Reno - 4.5 hours
Las Vegas - 2.5 hours
McMahon Ridge
Gemfield
Midnight
Belmont
NE Goldfield
Tognoni
Tom Keane
Central Zone
Milltown
Mineral Wealth
Sinter
Simerone
Gemfield SE
Esm
eral
da C
ount
y N
ye C
ount
y
Miles
0 0.5 1.0 1.5
41
Newly Discovered Mineralized Zone at Gemfield Project, Goldfield, Nevada
42
Goldfield, Nevada - NI 43-101 Mineral Resources*
Prospect Resources Tonnes Gold (g/t)
Contained Gold (oz)
Gemfield (cut-off 0.3 g/t gold)
Measured 12,182,000 1.1 438,000
Indicated 4,852,000 0.9 136,000
M & I 17,034,000 1.0 574,000
Inferred 4,173,000 0.6 74,000
Proven 11,041,000 1.2 412,000
Probable 3,246,000 0.9 99,000
P & P 14,287,000 1.1 511,000
McMahon Ridge (cut-off 0.4 g/t gold)
Measured -------- ----- ---------
Indicated 5,514,000 1.3 238,000
M & I 5,514,000 1.3 238,000
Inferred 108,000 1.1 4,000
Goldfield Main (cut-off 0.4 g/t gold)
Measured -------- ----- ---------
Indicated 8,549,000 1.5 421,000
M & I 8,549,000 1.5 421,000
Inferred 6,591,000 1.7 360,000
Total Goldfield (see cutoff grades above)
Measured 12,182,000 1.1 438,000
Indicated 18,915,000 1.3 795,000
M & I 31,097,000 1.2 1,233,000
Inferred 10,872,000 1.3 438,000
Proven 11,041,000 1.2 412,000
Probable 3,246,000 0.9 99,000
P & P 14,287,000 1.1 511,000
*Goldfield Main resource estimate is classified in accordance with CIM guidelines by independent consultant R. Mohan Srivastava, a Qualified Person under NI 43-101 and has an effective date of February 1, 2011. Gemfield reserve estimate was prepared by D. Anderson of Micon International Ltd (July 2012). Gemfield and McMahon Ridge resource estimates were calculated by R. Mohan Srivastava with an effective date of July 17, 2012.
43
Goldfield, Nevada - Gemfield Deposit: Feasibility Study Results- July 2012
Item Units 100% Project Base Case gold price $ per ounce $1,350 Initial Mine life years 6.5 Average annual gold production ounces/year 66,000 Life-of-mine gold production ounces 430,000 Plant processing rate (6,000 tpd) tonnes/year 2,190,000 Average Metallurgical recovery – gold % 84% Initial capital cost 1 $ millions $133 Sustaining capital cost $ millions $16 Direct site costs 2 per tonne processed $15.67 Cash operating costs (with Ag credit) 2,5 per ounce Au $526 Total cash operating costs (with Ag credit) 2,5 per ounce Au $611 IRR pre-tax/post-tax 3,4 % 22% / 18% Pre-tax /post-tax cash flow (non-discounted) 3,4 $ millions $168 / $132 Pre-tax/post-tax NPV, 5% discount rate 3,4 $ millions $102 / $75 Pre-tax/post-tax NPV, 7% discount rate 3,4 $ millions $83 / $59
1) Initial capital of $133M includes $20M in contingency allowance and is based on Q2 2012 estimates. No escalation factors have been
applied. Capital breakdown: Plant and Infrastructure $93M, Road $20M, Mine $20M. 2) Direct site operating costs include mining, processing and G&A costs. Cash operating costs include direct site costs plus estimates of
transport and refining charges, net the silver credit. Total cash costs include cash operating costs plus a 5% NSR royalty and the Nevada Net Proceeds on Minerals tax. Direct site operating costs per tonne of ore comprise processing $6.36, mining $6.39 and G&A $2.92.
3) Cash flow and NPV estimates all include a 5% Net Smelter Return (“NSR”) royalty due to a third party. 4) The after-tax estimates include all income taxes applied to the project. 5) By-product accounting subtracts the revenue generated by silver from the total operating costs to determine the cost per ounce of gold.
Total silver revenue for the base case is approximately $2M, less than 0.5% of the estimated total project revenue. 6) Initial capital costs includes $19M to re-align US Highway 95 (see further information below).
44
Goldfield, Nevada – Gemfield Deposit: Sensitivity to Gold Price
Pre-tax Sensitivity Analyses
45
Goldfield, Nevada - Gemfield Deposit - Cross Section
Cross Section 47,000N (Looking North)
46
Converse, Nevada - Updated Resources - December 2011
Resources Tonnes Gold (g/t)
Silver (g/t)
Gold (oz)
Silver (oz)
Equivalent Gold (oz)
Measured 221,172,000 0.51 3.91 3,590,000 27,828,000 3,868,000
Indicated 99,057,000 0.50 3.18 1,582,000 110,125,000 1,683,000
Measured & Indicated
320,229,000 0.50 3.69 5,172,000 37,953,000 5,552,000
Inferred 31,242,000 0.51 3.00 507,000 3,013,000 537,000
1. Numbers are rounded to reflect the precision of a resource estimate. 2. The estimated mineral resources that are not mineral reserves do not have demonstrated economic viability. 3. Gold equivalent ounces are estimated for mineral resources using 100:1 silver to gold ratio that assumes base case metal prices of
$1,300 and $25 for gold and silver respectively and metallurgical recoveries of 60% for gold and 31% for silver. 4. To limit the influence of individual high-grade samples, grade cutting was used. Gold assay grades were capped at 15 g/t and silver
grades were capped at 100 g/t. 5. Average dry bulk densities of 2.72 tonnes per cubic meter were used for all mineralized rocks. 6. The grades were interpolated using the “Ordinary Kriging” estimation technique. 7. Descriptions of parameters to determine “Measured”, “Indicated” and “Inferred” resources are provided below. 8. The contained metal estimates remain subject to factors such as mining dilution and losses and, process recovery losses. 9. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM),
CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
10. IMZ is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the validity of these resource estimates.
47
Converse Project, Nevada - Scoping Study Results
Item Units
Base Case gold price $ per ounce $1300 Base Case silver price $ per ounce $25 Initial mine life years 13.5 Strip ratio Waste rock : mineralized rock 2.3 : 1 Average annual gold production ounces/year 160,000 Average annual silver production ounces/year 638,000 Average annual gold equiv. production4 ounces/year 173,000 Life-of-mine gold production ounces 2,165,000 Life-of-mine silver production ounces 8,471,000 Life-of-mine gold equiv. production4 ounces 2,328,000 Plant processing rate (~45,000 tpd) tonnes/year 16,556,000 Metallurgical recovery – gold % 60% Metallurgical recovery – silver % 31% Initial capital 2 $ millions $455 Total cash operating cost 3 per tonne processed $8.35 Total cash operating cost 5 per ounce Au (with Ag credit) $745 Pre-tax IRR % 10.5% Pre-tax cash flow (non-discounted) 6 $ millions $494 Pre-tax NPV, 5% discount rate 6 $ millions $185 Pre-tax NPV, 8% discount rate 6 $ millions $70
1) The scoping study is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the scoping study will be realized and actual results may vary substantially.
2) Initial Capital includes $60 million in contingency allowance. Costs are based on Q3 2011 estimates and no escalation factors have been applied. 3) Total Cash Operating costs include estimates of refining charges. 4) Gold equivalents for production are estimated using a silver-to-gold ratio of 52:1 calculated by using the base case metal prices. 5) By-product accounting subtracts the revenue generated by silver from the total operating costs to determine the cost per ounce of gold. 6) Cash flow and Net Present values (“NPV”) are all shown pre-tax, but include 5% net smelter return (“NSR”) royalty payable to third parties and
refining and transportation charges. 7) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
48
Converse Project, Nevada- Sensitivity to Gold & Silver Prices
Gold Price / Silver Price ($/oz) BASE CASE
Category
$1,000/ $19.00
$1,200/ $23.00
$1,300/ $25.00
$1,400/ $27.00
$1,600/ $31.00
$1,800/ $35.00
$2,000/ $39.00
IRR -4.3% 6.0% 10.5% 14.7% 22.5% 29.8% 36.8% Cash Flow ($ millions)
-171 272 494 715 1,158 1,602 2,045
NPV 5% ($ millions)
-269 33 185 336 639 941 1,244
NPV 8% ($ millions)
-300 -54 70 193 440 687 934
Pre-tax Sensitivity Analyses (base-case in bold)
49
IMZ - Decision to Exit Ecuador
20 years exploring in Ecuador
Mining industry basically shutdown since April 2008 No history of large-scale mining as “guideline” to show economic
benefits of mining industry to government and population Increasing political and social/community risks Lack of clarity in implementation of new mining regulations Punitive components of mining/tax laws
Advance royalty payments payable ahead of production Windfall Revenue Tax restricts upside potential (unique in the world) Minimum 50% of profits guaranteed to government
IMZ can better utilize its management and financial resources in other more mining-friendly jurisdictions.
50
Rio Blanco – Alejandra North Vein and Regional Cross Section
Geology Alteration Mineralized zones Silicification Diorite Illitic Lapilli Tuffs Propylitic Andesite Faults
Dorada
Alejandra North Vein
San Luis Veins
Loma Larga
0 1 Km
3,600
3,400
IMZ Camp Arco Iris
Alejandra South
0.5 Km
3,800
Prospective targets not included in resource estimate
Zones included in current resource
estimates
4,000 Regional Cross Section (Looking West)
Upper Adit 29.9m @ 21.9 gt Au, 216 g/t Ag
(Incl. 4.5m @ 83.0 g/t Au, 1,060g/t Ag)
Area of Vein at Surface
Highly altered volcanics with high As, Sb, Hg
Area of San Luis Veins (at depth)
Projected Trace of Vein Underground
View Looking North
Long Section (Looking North)
LEGEND Contour Interval:
(in gm-meters gold)
20 g*m 50 g*m
100 g*m
Core Drill Hole Pierce Points Multiple Intersections
East West
Adit BP-4
3900
Upper Adit
0 50 100 150 Meters
3800
3700
3600
Surface
Fault
51
Rio Blanco, Ecuador - IMZ 100% - Permitting Stage
Operation • Underground, vein, 800 tpd. Ramp access. • Agitation leach circuit. Merrill Crowe recovery. • Recovery: 88% Au, 70% Ag
Mine Life • 7.5 years (basis current reserves)
P&P Reserves - 2006 feas study ($475 Au)
• 2.1Mt @ 8.8 g/t Au + 62 g/t Ag 605,000 ozs Au + 4.3M ozs Ag (658,000 oz Au Equiv)
Resources (2006)
• M+I (incl. reserves): 2.2Mt @9.5g/t Au + 69 g/t Ag 661,000 oz Au, 4.8M oz Ag (721,000 oz Au Equiv) • Inferred: 3.6Mt @ 3.0 g/t Au + 17 g/t Ag 354,000 oz Au, 2.0M oz Ag (379,000 oz Au Equiv)
Production Estimates (2009)
• Average/year: 71,000 oz Au, 400,000 oz Ag • Total cash costs/oz: ~$300 (net of Ag credit)*
Initial Capex • Feb 2009 estimate : $120 million
Cash Flow at $1,500 Au (2009)
• Average Annual Operating CF: ~$80M • NPV10%: $266M • IRR: ~ 57%
Outlook • Evaluating options to optimize value
Production Estimate (Basis 2006 Feasibility Study)
97
280
78 76
475 430
76
440
Avg. Year Pre-tax Operating Cash Flow
Au Price / Ounce $1000 $1100 $1200 $1300 $1400
Year 1 Year 2 Year 3 Year 4
Gold (,000ozs) Silver (,000 ozs)
$80
$60
$40
$ 20
Mill
ions
$100
$1500
$79 $73
$47 $53 $60
$66
$86
* 2011 in-house estimate for total cash cost/oz is approximately $450 (net of silver credit) and assuming government production royalty of 6% NSR.
$1600
52
Rio Blanco, Ecuador - 2006 Reserves & Resources
Notes 1. Gold equivalent value based on 80:1 silver-gold ratio 2. Measured & Indicated Resources include Proven & Probable Reserves 3. Updated from January 2006 feasibility study to include San Luis Vein 4. Gold cut-off grade = 4.0 g/t 5. Effective date of October 12, 2006. 6. The mineral reserve and resource estimate for the Alejandra North deposit was prepared in accordance with NI
43-101 by Micon’s Qualified Persons, Senior Geologist Paul Gribble, P.Eng. and Mining Engineer Malcolm Buck. The updated mineral resource estimate, including the San Luis deposit, was prepared by IMZ’s Qualified Person, VP-Corporate Development Nick Appleyard.
Discovery Cost per Total Resource Ounces = ~$35/oz gold equivalent
Resources Tonnes Gold (g/t)
Silver (g/t)
Gold (oz)
Silver (oz)
Gold Equiv (1)
(oz)
Measured & Indicated (2)(3) 2,150,000 9.5 69 661,000 4,785,000 721,000
Inferred Resource (3) 3,620,000 3.0 17 354,000 1,976,000 379,000
Reserves Tonnes Gold (g/t)
Silver (g/t)
Gold (oz)
Silver (oz)
Gold Equiv (1)
(oz)
Proven & Probable 2,147,448 8.8 62 605,000 4,307,000 658,000
100% IMZ Basis $475 gold
53
Summary Initial Mine Life 7.5 years Average Annual Gold Production 71,000 oz Average Annual Silver Production 400,000 oz Life of Mine Gold Production 531,600 oz Life of Mine Silver Production 2,996,000 oz Plant Process Rate 800 tpd Initial Capital $ 120.0 million Total Cash Costs/oz gold (net of silver) $ 295 oz
Gold Price (All figures are in $ millions)
$750 (Base Case)
$1,000
$1,100 $1,200 $1,400 $1,500
NPV @ 5% $63 $164 $205 $245 $326 $367
NPV @ 10% $29 $108 $140 $171 $234 $266
Cash Flow $113 $246 $299 $352 $458 $511
IRR % 16% 32% 37% 42% 52% 57%
Notes 1. Excluding start-up working capital of $13.2 million. 2. Total Cash Costs per ounce of gold is shown net of silver credit. Total Cash Costs (using the Gold Institute’s
definition) comprise mine operating costs, processing costs, mine general and administrative costs, transportation and refining costs, local and payroll taxes. Excluded at Rio Blanco are Ecuadorian government royalty, windfall and income taxes.
3. Includes Ecuadorian value added tax (IVA), which is not recoverable. 4. Excludes government royalty of minimum 5% of sales and 70% windfall revenue tax. 5. No escalation for operating or capital costs above the base case scenario.
Rio Blanco, Ecuador - Basis February 2009 Costs
54
1 km
Ponce Enriquez
N
Gaby, Ecuador - Property and Deposits
Papa Grande Deposit M&I: 1.6M oz (0.8M to IMZ)
Inferred: 0.8M oz (0.4M oz to IMZ)
M&I Resources: 7M oz Au
Inferred Resources: 3M ozs Au (4.1M oz to IMZ)
(1.8M oz to IMZ)
Combined Deposits Port of Guayaquil 140 km
Main Gaby Deposit M&I: 5.4M oz (3.3M oz to IMZ)
Inferred: 2.1M oz (1.4M oz to IMZ)
Tama Zone (vein)
Port of Machala 50 km
55
Main Gaby Deposit: Schematic Cross-Section (Looking West)
South
Main Gaby Deposit (+0.4 g/t Gold) Intrusive
Higher-Grade Gold Zones (+1 g/t Au)
Camp
Sea Level
100 m
200 m
300 m Pit Outline
200 m
North
56
Gaby, Ecuador - IMZ 60% - Feb ‘08 Pre-Feasibility Study (update Jan ‘09)
Year 1 Year 2 Year 3 Year 4
Gold (,000 ozs)
Operation • Open pit, gold-copper porphyry: 60,000 tpd • CIL circuit to produce dore • Recovery: Au 87% (Cu not included in circuit)
Mine Life • ~20 years
Resources - 100% Basis
• M+I: 356Mt @ 0.61 g/t Au - 7M oz Au (59% or 4.1M to IMZ) • Inferred: 143.2 Mt @0.62 g/t Au - 3M oz Au (62% or 1.8M to IMZ)
Production • Average/year: ~330,000 oz Au (~60% IMZ) • Cash costs/oz Au: ~$645
Cash Flow
at $1,250 Au (100% basis Pre-Tax)
• Average Annual Operating CF: ~$118M • NPV5%(1) : $1.1 billion • IRR: ~20%
Initial Capital • ~ $1 billion
Outlook • Evaluating options to optimize value
Production Estimate
367
431
408 418
Avg. Year Pre-tax Operating Cash Flow (IMZ’s Attributable 60%)
Au Price / Ounce
$150
$1000 $1100 $1200 $1300 $1400
$100
$50
$ 0
M i l l
i o n s
$1500
$200
$163
$70
$125 $144
$89 $107
$52
Year 1 Year 2 Year 3 Year 4
Gold (,000 ozs)
1) NPV10% calculations were not estimated in Preliminary Feasibility Study due to low gold price used in study ($650).
2) Copper grade averages 0.09% and is uneconomic at low copper prices (less than $2/lb). Contained copper is approximately 300,000 tonnes (~660 million lbs).
$1600
Includes 6% Government royalty + Ag credit ($18/oz)
57
Resources Tonnes (M)
Gold (g/t)
Gold (oz)
IMZ’s Share (oz)
Measured 91.6 0.64 1,900,000 1,141,000
Indicated 264.8 0.59 5,040,000 2,964,000
Total Measured & Indicated 356.4 0.61 6,940,000 4,105,000
Inferred 143.2 0.62 2,850,000 1,761,000
Gaby, Ecuador - January 2009 Resources
Discovery Cost per Total Resource Ounces = ~$5/oz gold
Notes 1. No Proven or Probable Reserves at base case gold price of $650/oz. 2. Cut-off grade = 0.4 g/t gold 3. IMZ holds variable interests (50%-100%) in the three principal mining concessions comprising the Gaby deposits. 4. IMZ controls ~60% of contained gold ounces 5. Effective date of resource estimates is January 26, 2009. 6. The Qualified Person for the NI 43-101 resource estimate is R. Mohan Srivastava (P.Geo) of the independent
consulting firm, FSS.
100% Basis, ~60% Attributable to IMZ Basis $650 gold
58
Gaby - Jan 09 Addendum to Feb 08 Preliminary Feasibility Study (PFS)
Notes: 1. Mineral reserves cannot be estimated at the base case gold price used ($650) 2. Ecuadorian value-added tax (IVA) of 12% included and non-recoverable. 3. Includes government royalty of 6% of sales, but excludes 70% windfall revenue tax. 4. Cash flow estimates for the optimization cases shown are not calculated from detailed project scheduling or cost
estimates as would be used in a final feasibility study and so may not reflect actual project economics. The Base Case (shown in bold) does, however, use detailed mine planning and scheduling to a preliminary feasibility level of engineering.
5. Copper, at an average grade of 0.09%, is currently non-recoverable. 6. NPV 10% numbers were not calculated in PFS January 2009 Addendum.
100% Basis, IMZ controls ~60%
PFS Base Case (20,000 tpd, $650 oz Au)
Gold Price Sensitivity
Summary
Life of Mine Gold Production (oz)
Average Grade (g/t Au)
Cash Costs (/oz Au)
Addendum PFS Optimization Case
(60,000 tpd, $750 oz Au)
Addendum PFS Optimization Case
(60,000 tpd, $1,000 oz Au)
0.8 0.7 0.6
$645 $670 $538
5,300,000 2,700,000 2,300,000 14 Initial Mine Life (yrs) 7 16
60,000
330,000 390,000
$900 $1,000
164,000 Annual Gold Production (oz/yr)
60,000
Initial Capital (M$) $432
20,000 Plant Process Rate (/day)
26% 20% 11% (12)% IRR
$4,541 $2,526 $(340) $(314)
Pre-tax Cash Flow NPV 5%
$1,250 (60,000 tpd)
$1,000 (60,000 tpd)
$1,500 (60,000 tpd)
(All figures are in US$ millions)
PFS Base Case, $650 (20,000 tpd)
$(302)
$916
$331
$1,171
$2,084
59
Ecuador: Tax & Royalty Comparison
Ecuador Peru Chile Colombia Mexico Corp. income tax 25% 30% 17-30%2 33% 30%
Employees and Communities Profit sharing
Communities 12%1
Employees 3%1
Employees 8% - - -
Min./alternative income tax
- - - - 16.5%-17.5% (revenue less
certain expenses)
Mining royalty Min. 5% NSR1 Variable (based on gross
profits)
0.5%-5% (Cu equiv.sales)
3%-12% (gross value)
-
Value Added Tax (IVA)
12% (not reimbursable)1
19% 19% 7% 16% (Recoverable)
Windfall Revenue Tax
70% of revenue (above metal
reference price)1
- - - -
Source: Company information & Raymond James report, Mining in Latin America, August 2008 Notes: 1. Amounts are deductible for tax purposes 2. Chilean income tax: 17% until capex recovered, then increases to 30%.
Globally, all forms of taxes (local and federal) and royalties paid by the mining industry total at least 50%.
60
Ecuador: Emerging Metals Mining Industry
Current small-scale, artisanal mining only. No large-scale mines.
Approx. $100 billion GDP dominated by oil (~60% of total exports).
Oil reserves and production are declining - estimated 2011 production = 500,000 bpd.
Mining is the only real alternative for significant future revenue for Ecuador.
Presidential elections – February 2013
Law passed Jan 29
New Mining Law and Estimated Timeline for Rio Blanco
General Elections April 26
Correa re-elected
New Congress Aug 10
Decision on Development (Q4)
Regs issued Nov 4
1Q09 2Q09 3Q09 4Q09 2010 2011 2012
61
Peru: Largest Silver Producer
General: Presidential elections every 5 years President Ollanta Humala elected July 28, 2011 Population 29 million Currency Nuevo Sol (US$=Sol 2.6)
Main Exports (2011): Mining (66%), fishing and agriculture World’s 2nd largest silver producer and 5th largest gold producer Largest gold producer in Latin America World’s 3rd largest copper and zinc producer, 4th largest lead producer
One of the fastest growing economies in the world* 7.9% GDP growth rate in 2011 Lowest inflation rate in Latin America 10 years of consecutive economic growth
* Bloomberg and Internet references.