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TSX:MNDAUGUST 2017
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This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life ofmine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially fromthose contemplated by these statements depending on, among other things: exploration results or production results not meeting management’sexpectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market andeconomic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Adescription of additional risks that could result in actual results and developments differing from those contemplated by forward lookingstatements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 31, 2017 andin its final prospectus dated July 18, 2016, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay hasattempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can beno assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Quality Control and AssuranceQuality control and assurance programs are implemented in line with the standards of National Instrument 43-101.
The exploration programs at Costerfield and Björkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP ofOperational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfieldand Björkdal, and supervises the collection and interpretation of scientific and technical information contained in this presentation.
The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of MandalayResources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved thetechnical and scientific information on these projects contained in the presentation.
Dr. Mark Sander (Member: AusIMM), President and CEO of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal andhas supervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated.
Forward-looking Statements
3
A Values-Based and Value-Focused Company
WE ARE SUCCESSFUL WHEN:Our employees live and work safely and experience the personal satisfaction that comes with high performance and recognition
The communities in which we operate value our presence
Our environmental impact is minimized and causes no permanent harm
We have a large, diversified set of customers who are delighted with and compete for our products
Our shareholders realize a superior total return on their investment and support our corporate values
Our values are visibly demonstrated by strong local management, at the point of impact with our stakeholders, and coordinated across the Company for maximum effect
4
Designed for Value: How We are Different Acquire only when we see possibility of an immediately accretive transaction with
strong value uplift in 3-5 years Target cash cost of production: 50% of ‘reversion to mean’ metal price 100% ownership; no private royalties, no streams Flat, virtual, low-cost organizational structure; local GM accountability Direct relationships and sales contracts with customers Return cash to shareholders when possible No hedging of metal prices Stingy with equity Lightly levered
5
1.7
32
79.967.7 64.4 68
50.9
-0.8
30.6
61.275.9
52.473.4
53.7
20.6
92.2
171.8
166.9
184.6194.5
185.51,224
1,5701,670
1,411
1,2651,160 1,248
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
-50
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016
1. The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA should not be considered by an investor as an alternative to net income or cash flow as determined in accordance with IFRS – EBITDA figures reflect adjusted EBITDA, please see the Company’s Management’s Discussion and Analysis.
Mandalay Acquisition Timeline2009
• Costerfield, Australia• Gold & Antimony• Costerfield, Australia• Gold & Antimony
2010• Cerro Bayo, Chile• Silver & Gold• Cerro Bayo, Chile• Silver & Gold
2014• Challacollo, Chile• Silver & Gold• Challacollo, Chile• Silver & Gold
2014• Björkdal, Sweden• Gold• Björkdal, Sweden• Gold
• No acquisition • Optimize operations• Pay down debt• Exchange warrants• Begin dividends
2011-2013
Revenue EBITDA Cash from Operations Gold Price
Mandalay Financial Performance 2010-2016
Results: Consistent Performance Across the Price CycleU
S$ M
M
Gol
d Pr
ice
(US$
)
6
Based on Matched Production and Reserves Growth
With Continuing Capital and Overhead Spending Discipline
15,854 63,351
107,941 126,908
154,810 166,679 254,000
520,000 633,000
772,000
1,123,000 1,054,000 1,024,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2010 2011 2012 2013 2014 2015 2016
Oz
Au E
q. Y
ear-
End
Res
erve
s
Oz
Au E
q. A
nnua
l Pr
oduc
tion
145,497
12.8
24.9
35.9 34.4
40.3 39.5
29.5
810
392 333
271 260 237 203
-
100
200
300
400
500
600
700
800
900
2010 2011 2012 2013 2014 2015 2016-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Cape
x sp
ending
per
oz A
u Eq
. $/o
z
Cape
x sp
ending
($ m
)
Mandalay capital spending at operating mines (excluding exploration)
3.6 3.4
5.3 5.1
6.7
4.4 4.8
224
54 49 40 44 26 33
-
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Ove
rhea
d sp
ending
per
Au Eq
. $/o
z
Ove
rhea
d sp
ending
($ m
)
Mandalay corporate overhead spending
Acquisition
7
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016
US$
/oz
Au
Eq. P
&P
Add
ed
Mandalay cost of acquiring and discovering reserves
Cumulative Cost per oz Au Eq. Acquired or DiscoveredCost Per oz Au Eq. Discovered in yrCost Per oz Au Eq. Acquired in yr
And Adding Reserves Cost-effectively
2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb1. Source: BMO
Acquisition + Exploration adds at cumulative average $79/oz Au Eq. (for developed & producing reserves)
Cerro BayoBjörkdal
Median for all Au sector acquisitions2012 – 2016 = $254/oz Au Eq.(1)
8
Creating and Delivering Value for Shareholders
$0$2,000,000$4,000,000$6,000,000$8,000,000
$10,000,000$12,000,000$14,000,000
Dividends Paid (USD)*
6% of revenues (dividend contribution)
A $10,000 investment on September 24, 2009 would be worth today(1-4):
• Mandalay: $26,164
• Peer Index: $10,679
• Gold Seniors: $6,681
A $10,000 investment on September 24, 2009 would be worth today(1-4):
• Mandalay: $26,164
• Peer Index: $10,679
• Gold Seniors: $6,681
Record Dividends
Since 2009, Mandalay has returned cash to shareholders via:
• Warrant redemptions
• Share buybacks
• Dividends
Since 2009, Mandalay has returned cash to shareholders via:
• Warrant redemptions
• Share buybacks
• Dividends
(1) Adjusted for reinvested dividends. Assumes investment in Mandalay made as part of private placement announced on 24-Sep-09 to fund acquisition of Costerfield and accounts for warrant exchange offer of 0.47 shares per warrant. (2) Peer Index: Alacer, Argonaut, Dundee PM, Kirkland Lake, Klondex, Perseus, Primero, Richmont. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Randgold. (4) End date as at June 30, 2017.
*Annual cash dividend paid quarterly, based on 6% of the Company’s trailing quarter’s gross revenue and the future cash requirements of the Company
0.0
5.0
10.0
15.0
20.0
25.0
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16
Volu
me
(milli
ons)
Inve
stm
ent V
alue
Mandalay(1) Peer Index(2) Gold Senior(3)
Total Return vs. Peers and Seniors through Q2-2017
9
Major Shareholders(1)
Holders Shares (Million) Shares (Percentage)
GMT Capital 72.5
Ruffer LLP 56.5
CI Investments 43.4
AzValor 31.7
Plinian + Management + Directors 30.7
Large Holders (Top-5) 234.8
Other Holders 216.5
TOTAL 451.3
16.1%
12.5% 9.6%
7.0%
6.8%
48.0%
Broader Ownership and Higher Liquidity Over Time
Analyst Coverage
Firm Analyst
BMO Brian Quast
Raymond James Chris Thompson
Scotia Trevor Turnbull
Volume
30-day Average Daily Volume 545,740
100-day Average Daily Volume 588,083
Average Daily Volume across all trading platforms (as of July 14, 2017)1. Known ownership positions are estimates - as at August 10, 2017 - Ownerships and percentages rounded to one decimal place.
1. Exercise Price: C$0.60 – C$1.13 expiry dates ranging from Mar 18, 2018 – Jun 30, 20242. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.79 USD (Aug 10, 2017)3. Cash and Cash Equivalents and Interest-Bearing Debt as at end of Q2-2017 (Jun 30, 2017)
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Strong Balance Sheet as of June 30, 2017Millions
(Except Share Price Info)Share price (August 9, 2017 - close) (C$) $0.37/shr
Shares Outstanding 451.3
Stock Options(1) 21.3
RSUs 0.7
Fully Diluted Shares Outstanding 473.3
Market Capitalization (C$) $167.0
Cash and Cash Equivalents (US$)(3) $18.4
Total Interest-Bearing Debt (US$)(3) $29.6
Total Enterprise Value (US$)(2,3) $142.46
Mandalay repaid US$30 million in debt on May 26, 2017 Mandalay repaid US$30 million in debt on May 26, 2017
Mandalay secured US$40 million revolving credit facility July 25, 2017 Mandalay secured US$40 million revolving credit facility July 25, 2017
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Cerro Bayo Silver-Gold Mine: Optimizing the FutureLand package 23,106 hectares
Ownership 100%
P&P Reserves(1) 979,000 t @ 282 g/t Ag; 2.29 g/t Au
2016 Production 13,792 oz Au, 1,731,031 oz Ag
Project Status:
Inundation event at Delia NW mine on June 9, 2017
Production suspended pending risk assessment (2-4 mo.) for restart
No significant loss of reserves or production in long-term
Optimum restart scenarios being evaluated: permits, labor & commercial
(1) Source: Roscoe Postle Associates, Effective December 31, 2016, documented in an independent NI 43-101 Technical Report filed March 31, 2017
BRANCA
Emerging Vein
Target
MARCELA & RAUL VEINS (10 KM BEHIND VIEWPOINT)
Inundation
12
Cerro Bayo Silver-Gold Mine: Inundation Event
CrestNew Shore
Old Shore
13
Cerro Bayo Operational Improvements:
Shifted the mining method from shrinkage stoping to completely mechanized blast hole open stoping;
Ramped up throughput from 0 tpd –1,400 tpd from three mines
Installed flotation automation system to maximize silver and gold recoveries
Extended mine life from 3 years at 1,200 tpd to 4 years at 1,400 tpd while mining continuously for 6 years
Production suspended pending risk assessment (2-4 mo.) for restart
Cerro Bayo Operational Improvements:
Shifted the mining method from shrinkage stoping to completely mechanized blast hole open stoping;
Ramped up throughput from 0 tpd –1,400 tpd from three mines
Installed flotation automation system to maximize silver and gold recoveries
Extended mine life from 3 years at 1,200 tpd to 4 years at 1,400 tpd while mining continuously for 6 years
Production suspended pending risk assessment (2-4 mo.) for restart
Record High Rate Record Low Cost
Cerro Bayo Operating Performance
$0
$50
$100
0
50,000
100,000
150,000
Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 Q4‐14 Q2‐15 Q4‐15 Q2‐16 Q4‐16 Q2‐17
$/ Ton
ne
Tonn
es Per Qua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
0
50,000
100,000
150,000
Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 Q4‐14 Q2‐15 Q4‐15 Q2‐16 Q4‐16 Q2‐17
$/ Ton
ne
Tonn
es Per Qua
rter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$5
$10
$15
$20
0
500,000
1,000,000
1,500,000
Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 Q4‐14 Q2‐15 Q4‐15 Q2‐16 Q4‐16 Q2‐17
$/ oz A
g Net Byp
rodu
ct
Oz A
g/Qua
rter
Saleable Silver Produced & Unit Cost
Ag oz Cost/ oz Ag net Au
14
Björkdal Gold Mine: Investment Thesis DemonstratedLand package 12,949 hectares
Ownership 100%
P&P Reserves(1) 10,600,000 t @ 1.68 g/t Au for 574 Koz
2016 Production 48,143 oz Au
Key for 2017:
Grade control working properly and debottlenecking mine operations has increased rate of delivery of high-grade ore
Phase 1 (crushing and screening) of low-grade ore sorting program implemented with 50% grade upgrade
Flotation expansion project being commissioned in early-mid July
Continued exploration success
(1) Source: Roscoe Postle Associates, Effective September 30, 2016, documented in an independent NI 43-101 Technical Report filed Jan. 27, 2017
15
Björkdal Operating Performance and Improvements
$0$5$10$15$20$25$30$35
0
100,000
200,000
300,000
400,000
Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16 Q1‐17 Q2‐17
$/ Ton
ne
Tonn
es Per Qua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$2
$4
$6
$8
$10
0
100,000
200,000
300,000
400,000
Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16 Q1‐17 Q2‐17
$/ Ton
ne
Tonn
es Per Qua
rter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
Björkdal Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits
Produced a more refined resource model to support more selective underground & open pit mining techniques
Established a local assay lab for faster grade control turnaround
Increased grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste)
Implemented crushing and screening of low-grade ore for 50% grade improvement
Flotation expansion commissioned
Pilot test and detailed engineering for optical ore sorting
Björkdal Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits
Produced a more refined resource model to support more selective underground & open pit mining techniques
Established a local assay lab for faster grade control turnaround
Increased grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste)
Implemented crushing and screening of low-grade ore for 50% grade improvement
Flotation expansion commissioned
Pilot test and detailed engineering for optical ore sorting$0
$500
$1,000
$1,500
0
5,000
10,000
15,000
20,000
Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16 Q1‐17 Q2‐17 $/ oz A
u
Oun
ces Gold Pe
r Qua
rter
Saleable Gold Produced and Unit Cost
Au oz Cost/ oz Au
16
Björkdal Debottlenecking: Working Smarter
Increasing open pit blast hole drilling capacity
Increasing underground haulage capacity
-
0.50
1.00
1.50
2.00
2.50
02,0004,0006,0008,000
10,00012,00014,00016,00018,000
g/t A
u
Tonn
es m
ined
Björkdal Underground – more consistent delivery of higher grade tonnes @ 1400 tonnes/week
Total UG tonnes Total UG grade
- 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00
-
10,000
20,000
30,000
40,000
g/t A
u
Tonn
es m
ined
Björkdal Open Pit – more consistent t @ higher grade
Total OP Tonnes Total OP grade
-
200
400
600
800
1,000
1,200
Au o
zm
ined
Björkdal Open Pit – delivering more oz/wk
-
200
400
600
800
Au o
zm
ined
Björkdal Underground – delivering more oz/wk
17
Björkdal Debottlenecking: Lifted Mill OutputConsistently-delivered higher-grade ore results in demonstrated higher production
0
0.5
1
1.5
2
2.5
3
3.5
-
5,000
10,000
15,000
20,000
25,000
30,000
g/t A
u Pr
oces
sed
Tonn
es p
roce
ssed
Björkdal plant throughput – tonnes and grade
Throughput - tonnes Throughput - grade
Consistent tonnes processed each week
75
80
85
90
95
100
-
500
1,000
1,500
2,000
2,500
Au re
cove
ry %
Sale
able
Au
ozpr
oduc
ed
Björkdal processing output and recovery – saleable ounces
Throughput - Saleable ounces Throughput - Recovery
(Before commissioning of flotation expansion in early July)
Output - Saleable ounces Au
18
Björkdal: Recent Open Pit & Underground Intercepts Extending Open Pit
Mineralization to NorthExtending Underground Mineralization to North East
Infilling Underground Mineralization to East
Infilling Underground Mineralization to North
Together with H2 2016 results, expect significant addition of Mineral Resources and Reserves in Q4 update
19
Emerging High-Grade Skarn Intercepts at Björkdal
Continuous volumes of skarn
Smaller shoots of high-grade within skarn
A few ‘000 tonnesof high-grade skarn mined and processed in Q2 with both high reconciled grades and good recovery
20
Costerfield Gold-Antimony Mine:Turnaround Complete; Dependable Performance
Land package 1,293 hectares
Ownership 100%
P&P Reserves(1) 619,000 t @ 6.5 g/t Au; 2.8% Sb
2016 Production 41,310 oz Au, 3,598 t Sb
Key for 2017:
May 2017 – Completed the capital development to access near-mine shoots and support next few years of production
July 2017 – Completed tailings lift construction for current LOM tailings
December 2017 – Expected Mineral Reserve increases at Brunswick and further exploration upside
(1) Source: SRK Consulting (Australia), Effective December 31, 2016, documented in an independent NI 43-101 Technical Report filed March 31, 2017
21
Costerfield Operational Improvements:Record High Rate Record Low Cost
Improved mine output/mill throughput from 170 tpd to 450 tpd (capped by grid power and site grinding capacity)
Changed mining method from cut-and-fill to blast-hole stoping with cemented rock fill (greater production, lower unit costs)
Increased sub-level spacing from 5 to 10 m
Introduced contract capital development for faster and lower cost results
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle size of mill feed (better recoveries, higher throughput)
Grew mine life from zero reserves to roughly 4 years while mining continuously for 7 years – discovered Cuffley and N-lode
Costerfield Operational Improvements:Record High Rate Record Low Cost
Improved mine output/mill throughput from 170 tpd to 450 tpd (capped by grid power and site grinding capacity)
Changed mining method from cut-and-fill to blast-hole stoping with cemented rock fill (greater production, lower unit costs)
Increased sub-level spacing from 5 to 10 m
Introduced contract capital development for faster and lower cost results
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle size of mill feed (better recoveries, higher throughput)
Grew mine life from zero reserves to roughly 4 years while mining continuously for 7 years – discovered Cuffley and N-lode
Costerfield: Continuous Improvement
$0
$100
$200
$300
$400
0
20,000
40,000
60,000
Q4‐09(Dec. only)
Q4‐10 Q4‐11 Q4‐12 Q4‐13 Q4‐14 Q4‐15 Q4‐16
USD
/ To
nne
Tonn
es Per Qua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
$100
$150
0
20,000
40,000
60,000
Q4‐09(Dec.only)
Q4‐10 Q4‐11 Q4‐12 Q4‐13 Q4‐14 Q4‐15 Q4‐16
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/ To
nne
Tonn
es Per Qua
rter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
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$2,000
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Q4‐09(Dec. only)
Q4‐10 Q4‐11 Q4‐12 Q4‐13 Q4‐14 Q4‐15 Q4‐16
USD
/ Oz A
u Eq
.
Oun
ces P
er Qua
rter
Au Equivalent Production and Unit Cost
Oz Au Eq. Cost/ Au Eq. Oz
22
Brunswick Resource Enlarged by Recent Drilling
Ready for Mineral Resource and Reserve estimation in Q3/Q4
23
Emerging Costerfield Deeps High-Grade Shoot
Emerging mineralized shoot below historic workings
Very high-grade gold• 60 to >100 g/t Au
At least:• 400 m on strike• 100 m vertical
Open
24
Challacollo Silver-Gold Project 2017
Key for 2017: May-- Water sufficient to support eventual operation discovered Permitting for production well in process Option to optimize project for lower CAPEX
Land package 20,378 hectares
Ownership 100%
Location 130 km SE of Iquique, Chile
Indicated Resource 4.7 MM t @ 200 g/t Ag for 30 MM oz Ag
Elevation Approx. 1,500 ASL
25
Invest With Us: How We Will Deploy Your Capital1. Acquire new assets counter-cyclically – at discount to value• Acquire only when we see possibility of an immediately accretive transaction with strong value
uplift in 3-5 years• Keep portfolio evergreen – exit assets that do not fit2. Execute focused operational improvement projects at each site
3. Apply relentless, disciplined financial management
• Restart Cerro Bayo with optimized, risk-assessed plan• Maintain good Björkdal performance; further upside includes complete commissioning of flotation
expansion; add optical sorting; extend mine life with exploration• Extend Costerfield life with Brunswick lode if prudent and beyond with further exploration• Optimize Challacollo feasibility with lower capital and operating costs• Mining – projects focused on safer, more mechanised mining with higher extraction, lower dilution
and reduced cost• Metallurgical – projects focused on higher recovery, higher availability, higher quality products with
higher payables and reduced costs• Commercial – more diverse customers paying better terms
• Low cash cost and overheads for high EBITDA margins• Low DD&A for high P&L margins – low acquisition cost, focused CAPEX & exploration • Prudent, low-cost leverage to fund growth when needed• Minimize shareholder dilution• Compare all potential uses of cash to the benefits of returning cash to shareholders4. Engage all stakeholders in a values-based and value-focused organization
TSX:MND
For more information, please contact:
Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: [email protected] Website: www.mandalayresources.comTwitter: @MandalayAuAg
For more information, please contact:
Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: [email protected] Website: www.mandalayresources.comTwitter: @MandalayAuAg