Minera Frisco. El Coronel Unit. Investor Presentation - 3Q16

Transcription

1 Minera Frisco El Coronel Unit Investor Presentation - 3Q16

2 Overview A mining company dedicated to the exploration and production of gold, silver, copper, lead and zinc Created in 1962 and acquired by Grupo Carso in 1985 More than 50 years of mining experience On January 2011, GCarso spin-off Minera Frisco and has been trading independently in the Mexican Stock Exchange (MFRISCO) since then 9 operating mines and 1 project under development 9,009 employees (includes contractors) 2

3 Geographic Footprint Maria Sonora Cu San Felipe Baja California Norte Au / Ag Concheño Chihuahua Au / Ag Tayahua - Cobre Primario Zacatecas Stage: Construction : Au/ Ag/ Cu/ Pb/ Zn Tayahua Zacatecas Au/ Ag/ Cu/ Pb/ Zn El Coronel Zacatecas Au / Ag Ocampo Chihuahua Au / Ag El Porvenir Aguascalientes Au / Ag San Francisco del Oro Chihuahua Au/ Ag/ Cu/ Pb /Zn Asientos Aguascalientes Au/ Ag/ Cu/ Pb/ Zn Operating Mines Expansion Projects 3

4 Operating Mines: open pit & underground Concheño San Felipe Ocampo Exploitation Type: Chihuahua, Mex. Open Pit & Underground Dynamic Leaching Start of Operations: 2013 Main TPD (tonnes per day) 13,500 TPD Au / Ag Dore Bars Exploitation Type: BCN, Mex. Open Pit & Underground Heap and Dynamic Leaching Start of Operations: 1994 Project expansion start-up: ,000 TPD Au / Ag Dore Bars Exploitation Type: Chihuahua, Mex. Underground Dynamic Leaching Start of Operations: 2006 Main 3,000 TPD Au / Ag Dore Bars 4

5 Operating Mines: open pit El Coronel El Porvenir Maria Zacatecas, Mex. Exploitation Type: Open Pit Heap Leaching Start of Operations: ,000 TPD Au / Ag Dore Bars Exploitation Type: Start of Operations: 2013 Aguascalientes, Mex. Open Pit Heap Leaching 8,500 TPD Au / Ag Dore Bars Exploitation Type: Start of Operations: 2004 Sonora, Mex. Open Pit Heap Leaching 27,000 TPD Cu Copper - Cathodes TPD (tonnes per day) 5

6 Operating Mines: underground Tayahua* Asientos San Francisco del Oro Zacatecas, Mex. Exploitation Type: Underground Flotation Circuit Start of Operations: 1917 Exploitation Type: Start of Operations: 2008 Aguascalientes, Mex. Underground Flotation Circuit Chihuahua, Mex. Exploitation Type: Underground Flotation Circuit Start of Operations: ,500 TPD 3,800 TPD 4,000 TPD Au/Ag/Cu/Pb/Zn Concentrates Au/Ag/Cu/Pb/Zn Concentrates Au/Ag/Cu/Pb/Zn Concentrates *Expansion project under development TPD (tonnes per day) 6

7 Projects under development During 2010, MFrisco initiated an aggressive growth program which consisted in the development of 2 new mining units (Concheño and Porvenir) and the expansion 3 operating units (Coronel, San Felipe and Tayahua). As a result, output capacity grew from 82,700 to 157,300 Tn / day. Nominal installed milling/crushing capacity (tonnes/day) 157, ,300 82, E 90.2% 6.4% Tayahua Primary copper project This is the only project still under construction and is expected to begin operations on Name Location Metals Tayahua Zac. Exploitation type Au, Ag, Pb, Zn, Cu Underground Process Milling and - flotation Current milling/crushing installed capacity* Description Expansion projects Primary copper: access ramp 5,500 of 6 km, crushing, grinding and flotation plant Additional installed capacity* Expected installed capacity* 10,000 15,500 Status Under construction 7

8 Key Operating Data Gold ('000 Oz) Silver ('000 Oz) ,855 9, ,523 6, ,221 2, M16 3Q15 3Q16-57% -3% % 26,296 25,823 Copper (tonnes) M16 3Q15 3Q16-18% 5% - - 5% 20,871 14,081 Lead (tonnes) 5,284 4,680 Zinc (tonnes) 18,914 18,275 21,642 16, M16 3Q15 3Q % -19% % 63,675 58,913 71,628 53,987 5,208 5,117 17,562 17, M16 3Q15 3Q M16 3Q15 3Q % 18% % - -7% 22% - - 0% 8

9 Key Operating Data Revenues (million pesos) 3Q16 - Revenues by product 12,398 13,611 4% 13% Gold Silver 10,305 7% Copper 3,336 3,511 18% 58% Zinc 3Q15 3Q % - 20% 10% Lead It does not include hedging effects. 9

10 Au- average price (usd/oz) Ag- average price (usd/oz) Key Financial Data 37% EBITDA (million pesos) 4,332 4,521 4,648 1,213 1,275 3Q15 3Q % 36% 42% 36% 34% margin % 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000 Gold & Silver Price 19% -14 % 32% -8 % -4% -18% 3Q15 3Q Au (Oz) Ag (Oz) ,027 - Capex (million pesos) 1,797-70% -58% M16 10

11 Key Financial Data Indebtedness Indebtedness Variation 3Q16 3Q15 (USD million) 3Q16/3Q15 Long term bonds % Syndicated loan 1,060 1,100-4% Debt 1,316 1,394-6% Exchange rate (pesos per dollar) On September 30th, 2016 the Company s debt was composed of a syndicated loan of US$1,060 MM and $5,000 MM Ps in long term bonds. When comparing 3Q16 vs. 3Q15 the total debt in American Dollars decreased by 6%, reaching US$1,316MM vs. US$1,394MM. Derivative Financial Instruments As of September 30 th, 2016, the company continued with its metal hedging strategy and it covers most of the production estimated for the remainder 2016 year. Also, a metal hedging strategy started for

12 Contact Investor Relations: Lizbeth Munguia Samperio T. +52 (55) Trading Symbol: MSE: MFRISCO OTC: MSNFY Corporate Office: Plaza Carso Lago Zurich #245 Presa Falcon Building, 17th Floor Granada Ampliación México DF Certain statements in this presentation may be related to expectations about future events of Minera Frisco. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Minera Frisco undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release. 12