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June 20th, 2011
Desjardins Securities Inc. is a wholly-owned subsidiary of the Desjardins Group
The Arctic Imperative SummitGirdwood, Alaska
2
Global Urbanization Declining Production Sustained High Commodity Prices
Introduction
Increased Resource Development in the Arctic and Alaska is Inevitable
Responsible and Sustainable Resource Development is the Goal of all Stakeholders
Responsible and Sustainable Resource Development and is ACHIEVABLE
Desjardins Securities is part of Desjardins Group, Canada’s 6th largest bank, is specialized in fundamental commodity research and providing advisory services to the global mining industry
Resource Development Driven by Positive Market Outlook (Strong Fundamentals)
Access to Infrastructure/Financing Permitting
Slowdown in Global Economy
Rising Core Inflation
US $ Policy/End of QE2
Euro zone Weakness
Key Risks
Global Economy
Development Projects Increasingly Remote
Investors Require Minimum Risk Adjusted Return
Well Defined Timelines and Procedures are Essential to Attract Capital
3
Equity Capital Markets LTM Trading Performance – Mining Indices
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Jun-
10
Jul-1
0
Aug
-10
Sep
-10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb
-11
Mar
-11
Apr
-11
May
-11
S&P/TSX Capped Diversified Metals & Mining Index
S&P/TSX Global Mining Index
FTSE/JSE Mining Index
FTSE/All Share Mining Index
S&P/ASX 300 Metals & Mining Index
4
Desjardins’ Role – Integrated Advisory Approach
Desjardins’ team has the combination of M&A experience and industry contactsto effectively advise global mining companies
Mining Sector and Advisory Expertise
Desjardins has extensive contacts in the global mining industry, many of which would be interested in a major export coal development opportunity
We can provide relevant industry and company-specific feedback to ASRC to prioritize potential Partners / Buyers
We can review the financial and operating information of the Partners / Buyers and analyze their shareholder base and financial strength
Structure and M&A Tactics
Advise and assist in M&A tactics
Work with legal and tax advisors to determine the optimal transaction structure
Provide advice on structural alternatives in connection with the proposed transaction
Structure and manage all aspects of the competitive search / sale process, including final exclusive negotiations
Negotiations
Lead the negotiation process between ASRC representatives and the targeted Partner / Buyer
Advise ASRC regarding the required pricing of the proposals
Assist in the preparation of any materials submitted to potentials Partners / Buyers to solicit higher / improved proposals
Briefing and Documentation
Advise and assist ASRC in preparing and delivering to the board, any materials required to consider and approve a transaction
Assist in preparing disclosure documents
Provide a fairness option to the board, if required
Provide economic, industry and company-specific input
Review financial and operating information regarding the Partner / Buyer
Analyze the Partner / Buyer’s current shareholder base
Industry and Company Analysis Perform detailed value range analysis
based on public and internal information of ASR
Comparable trading Precedent transactions DCF Precedent premiums
Valuation Analysis
Monitor market & rumors Develop and implement a proactive
communications strategy Coordinate marketing message to all
stakeholders
Market Intelligence
5
Selected M&A Transaction Experience
$47 millionAdvised Entrée Gold on its acquisition of
PacMag Metals
June 2010
$72 million Advised KGHM on its JV with Abacus Mining
& Exploration
May 2010
$125 million Advised Spider on its sale to Cliffs Natural
Resources
May 2010
$485 millionAdvised Skye on its
sale to HudBay Minerals
August 2008
$1.53 billionAdvised IAMGOLD on
its acquisition of Cambor
November 2006
$24.1 billion Advised Xstrata on its acquisition of Falconbridge
August 2006
$388 million Advised Mexgold on its sale to
Gammon Lake Resources
July 2006
$485 million Advised on acquisition
of 25% of silver production from
Goldcorp’s Penasquito project
July 2007
$176 million Advised CDPQ on its sale of
Southern Star (US) to Morgan
Stanley IP
March 2010
$173 millionAdvised Hydro-
Quebec Intl on its sale of power assets
(Panama) to Enel
August 2006
$123 millionAdvised Alliant Energy
on its sale of power assets (China) to
Banpu
March 2006
$2.5 billion Advised IPIC on its acquisition of NOVA
Chemicals
July 2009
<$100 millionAdvised Solway on its
minority interest purchase in Chariot
Resources
October 2009
<$100 millionAdvised Hathor on its acquisition of Northern Continental Resources
November 2009
$70 millionAdvised Vedanta on
its acquisition of Sterlite Gold
October 2006
$48.9 billionAdvised Phelps Dodge on its combined offer
for Inco and Falconbridge
WithdrawnSeptember 2006
Gordon Glenn Robert Chretien
Mining Sector Advisory Experience
Team members have advised on 21 publicly announced mining M&A transactions, totaling in excess of $85 bln since January 2005
Previous clients include: BHP Billiton, Xstrata, Vale SA, IAMGOLD, ArcelorMittal, China Development Bank / China Minmetals, Vedanta
Advised on Phelps Dodge’s $49 bln offer for Inco and Falconbridge
Advised on Xstrata’s winning $24 bln offer for Falconbridge
6
Desjardins’ Metals & Mining TeamSenior Leadership
Metals & Mining Investment Banking
Richard NadeauManaging Director
Vice-Chairman514-985-7552
Ken MangetManaging Director
Head of Investment Banking416-867-2057
Paul HardyManaging Director
Head of Sales and Trading416-867-1789
Patrick BartlettManaging Director Head of Research
Mergers & Acquisitions Investment Banking
Paul CarmelManaging Director
Metals & Mining514-985-5069
Gorden GlennManaging Director
Metals & Mining867-2057
Navtej SidhuAssociate
Metals & Mining416-867-3433
Vincent MetcalfeAssociate
Metals & Mining514-985-5075
Misha PlotkineAnalyst
Metals & Mining416-867-2265
Geoffrey PlanasAnalyst
Metals & Mining514-985-3532
Robert ChretienManaging Director
Head of Mergers & Acquisitions416-867-3793
Salil RatnaparkheAssociate
Mergers & Acquisitions416-867-3596
Stuart RobertsAssociate
Mergers & Acquisitions403-532-6007
Marco SalvoAssociate
Mergers & Acquisitions514-985-5071
Eva KubickaAnalyst
Mergers & Acquisitions514-985-3540
Beth ShawManaging DirectorECM & Syndication
Naglaa PachecoVice President
ECM & Syndication416-867-3443
Raymond DuongAnalyst
ECM & Syndication416-867-3566
Paul PintVice President & Director
Head of Sales416-867-7590
Paul SunVice President & Director
Institutional Sales & Trading416-867-1404
Chung KimVice President
Institutional Sales & Trading416-867-3581
Research Sales & Trading ECM
Brian ChristieVice President & Director
Senior Analyst Precious Metals416-867-3776
Graham MarkhamResearch Associate
Precious Metals416-867-3769
John HughesVice President & Director
Senior Analyst Metals & Mining416-867-3778
Paul MediciResearch Associate
Metals & Mining416-867-3784
John RedstoneVice President & Director
Senior Analyst Metals & Mining514-281-7088
Aleem LadakResearch Associate
Metals & Mining514-985-3573
Alaska Resource
Development
7
Desjardins GroupDesjardins Group is the largest financial institution in Québec, and 6th largest deposit taking institution in Canada, and the 6th largest cooperative in the
world
More than 5.8 million retail banking customers (70% of
the Québec population)
The largest private employer in Québec with 42,200
employees and 5,900 elected officers
Credit ratings of AA (DBRS), AA- (Standards and Poor’s) and
Aa1 (Moody’s)
Desjardins continues to be the best capitalized financial
institution in Canada with a Tier 1 Capital ratio of 17.3%
Named the Bank of the Year 2010 – Canada, by the
Financial Times’ Banker Magazine
Desjardins Group comprises a network of financial services cooperatives, caisses and credit unions, and some twenty subsidiary companies in life and general insurance, securities brokerage, venture capital and asset management
Desjardins Group is an organization of caisses populaires and caisses d'économie (credit unions). The 513 caisses in Québec and Ontario and their 915 service centres are assembled under a single federation: the Fédération des caisses Desjardins du Québec
Federation des Caisses Desjardins du Quebec
Wealth Management and Life Insurance
General Insurance
Personal Services
Business Services
Desjardins Securities -Institutional
CaisseCentrale
Desjardins
Desjardins Venture Capital
Desjardins Asset
Management
Desjardins General Insurance Group
Desjardins Bank
Desjardins Credit Union
Desjardins Trust
DISNATDesjardins Securities
Retail Brokerage
Bu
sin
ess
Se
cto
rs
Carrefour Desjardins
8
1,494
1,2091,127
1,0761,024
913
442
0
200
400
600
800
1,000
1,200
1,400
1,600
Desj. RBC TD CIBC BNS BMO NB
50
42 4239
30
22
15
0
10
20
30
40
50
RBC CIBC Desj. TD BMO BNS NB
In th
ousa
nds
726 $
620 $
527 $
412 $
352 $
176 $145 $
$0
$100
$200
$300
$400
$500
$600
$700
$800
RBC TD BNS BMO CIBC Desj. NB
In b
illio
ns
17.6%
14.0% 13.9% 13.5% 13.0%12.2% 11.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Desj. NB CIBC BMO RBC TD BNS
10th
15th
22nd
25th
37th36th
10th
15th
20th
25th
30th
35th
40th
RBC TD BNS Desj. BMO CIBC NB
n/a
(1) As of September 30, 2010 for Desjardins and as of October 31, 2010 for the other Canadian Banks; (2) Desjardins total branches is based on 1,396 service outlets, 113 points of service and 51 business centers; (3) Global Finance 2010; and (4) Tier 1 Capital Ratios for Desjardins as of September 30, 2010 and as of October 31, 2010 for the other Canadian BanksSource: Company Reports and Bloomberg
Desjardins Group: A Leading Canadian Financial Institution
Ranked among the world’s safest banks, as per Global Finance 2010
Highest Tier 1 Capital ratio (17.6%) within the Canadian banking industry
Strong credit rating from all major agencies – AA (DBRS) and AA- (Standard and Poor’s)
Sixth largest bank in Canada and sixth largest cooperative financial group in the world
Third largest bank in Canada in terms of employeesMore branches and service centers than any other
bank in Canada for our 5.8 million members
Total Assets(1) Employees in Canada Branches in Canada(2)
World’s 50 Safest Banks for 2010(3) Tier 1 Capital Ratio(4) S&P Credit Rating
Desj. RBC BNS TD BMO CIBC NB
A+
A
0
AA-
9
Desjardins Group Business Lines
Equity Capital MarketsInvest. & Corp. Banking
Key Takeaways Desjardins Group
Full suite of banking services as Canada’s 6th largest bank
Fully integrated Capital Markets Group (Desjardins Securities) offers institutional clients research and sales and trading for both equity and fixed income, corporate finance, corporate banking, and retail distribution
Full Brokerage Services
Mutual Funds/ Segregated funds
Private Wealth Management
Asset ManagementWealth
Management
Personal Services
Property and Casualty Insurance
Business and Institutional
Services
Personal Banking Services
Mortgages Credit Cards
SME Banking & Financing
Venture Capital/ Private Equity
Residential Insurance
Commercial Insurance
International Financial Services
Capital MarketsCash Mgt/ Specialized
Business Services
Group Property & Casualty Insurance
4 DCM professionals responsible for origination and syndication
7 institutional traders, including a corporate trader and 2 proprietary traders
7 institutional sales professionals
4 retail fixed income sales and traders
3 preferred shares professionals
3 research analysts
3 structured credit professionals
325 investment advisors
Discount brokerage through Disnat Online
Full-service brokerage services through Desjardins Securities Investment Advisors, with 46 offices across Canada
20 investment banking professionals
20 corporate bankers for origination and syndication based in Montreal, Toronto and Calgary
12 foreign exchange and interest rate SWAP professionals and 10 treasury professionals
Fixed Income
14 research analysts and 13 associates in Montreal, Toronto, Calgary
23 institutional sales and trading professionals
4 syndication professionals
RetailEquity Capital MarketsInvest. & Corp. Banking
A Canadian full service bank
10
Desjardins Group named Bank of the Year 2010 – Canada
Published by the British-based Financial Times Group, The Banker is an internationally renowned source for financial news
Desjardins Group was awarded Bank of the Year 2010 – Canada
According to The Banker, these awards reflect exceptional quality and innovation in the financial industry
Desjardins was selected for the following attributes:
Tier 1 capital ratio of 15.6% for 2009, up 18.5% over 2008
Gross impaired loan ratio of 0.46%, a rate more than three times lower than the other major Canadian banks
Highest credit ratings in the industry: S&P (AA-), Moody’s (Aa1), DBRS (AA)
Financial Performance Indicators
6.5% of Desjardins Group’s surplus earnings are given back to the community; by comparison major Canadian businesses give back a median of 1.3%
Community Involvement
In 2009, over 1,750 delegates of Desjardins’ caisses and credit unions attended a democratic governance conference to set strategic direction for the organizationDemocratic Culture
A 61% satisfaction rate (very satisfied) among individual members, compared to 56% for the other major Canadian banksMember Satisfaction
The first Canadian financial institution to offer businesses energy-efficiency loans to help them reduce their greenhouse gas emissionsSustainability Projects
Dévelopment international Desjardins is focused on improving access to financial services in developing countries
Initiatives have enabled over 7 million families to access secure savings and credit facilities
Over $1 mln raised to support financial cooperatives in Haiti devastated by the earthquake in January 2010
Charitable Work
