Corporate Presentation March 2017 TSX.V: IO

Transcription

1 Corporate Presentation March 2017 TSX.V: IO

2 Disclaimer This presentation includes forward-looking statements which are not historical facts but instead address future events and conditions which by their very nature, involve inherent risks and uncertainties. Such information can generally be identified by the use of forward-looking wording such as may, expect, estimate, anticipate, intend, believe potential and continue or the negative thereof or similar variations. Forward-looking information in this presentation includes, but is not limited to, intended acquisitions, upgrades and production at milling facilities, financing plans, use of proceeds and estimated net income. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices and exchange rates; (ii) change in market conditions; (III) the fact that the Company s development and factors affecting it may be very different from other companies; (iv) availability and quality of mill feed; (v) regulatory and political developments and (vi) future operational results may not be accurately predicted based historical results and on information to date. Forward-looking statements and other information contained herein concerning the metals and mining industry and Inca One s general expectations concerning the industry are based on estimates prepared by management using historical data from publicly available industry sources as well as from private sources, industry analysis and on assumptions based on data and knowledge of the this industry which the Company believes to be reasonable. However, certain data is inherently imprecise. While Inca One is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. There is no certainty the projections will be met. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made and we do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic, political and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place under reliance on these forward-looking statements. Future-Oriented Financial Information In addition this presentation contains future-oriented financial information ( FOFI ). The purpose of the FOFI is to provide prospective investors with information pertaining to the Company s longer term objectives. Readers should be cautioned that information may not be appropriate for other purposes. Currency Unless otherwise indicated, all dollar values herein are in Canadian dollars. 2 TSX.V: IO

3 Why Peru? Global leader in mining industry Ranked in top 10 of world largest producers of base and precious metals Mining industry dominant sector of economy Attractive legal and tax regimes that support mining industry Has attracted major players in mining industry (BHP Billiton, Freeport- McMoRan, Rio Tinto, Anglo American Newmont and Barrick) US$59.5 B (est) foreign investment flowing into mining sector over next few years 1 New mines and expansion projects expected to double production Politically and macro-economically stable - PPK pro-business 3 TSX.V: IO 1. SES Professionals, Overview of Mining in Peru

4 Peru Formalization Political stability Modernization of mining practices Increased tax Revenue Economic Growth Regulation of Industry Formalization Process Approximately 70,000 small scale miners enrolled in initial 2012 Formalization Process 1 February 2016 Formalization Process re-opened extending term allowing informal miners to register through August 2017 Government estimates additional 60,000 miners to enter formalization Arequipa home to largest number of miners in this space Moratorium on new processing plant construction under fast track formalization rules 4 TSX.V: IO 1. El Pueblo el Diario November 2016 report on Informal miners. 2. Sourced from Peru s Ministry of Energy and Mines (MINEM) figures

5 Mineral Supply 6 th largest producer of gold in world Peruvian government estimates the small scale mining sector at 20% 2 of all Peruvian gold production equivalent to US $2.6B Estimated 15,000 TPD of goldbearing mineral produced by small scale miners, average recoverable gold grade of 0.5 oz/tonne Gold mineral processing plants in Chala produced 315,000 ounces (approximately 9 tonnes) of gold annually in highlighted regions are top sources of mineral supply Mineral buying team lead by experienced local Peruvian (led commercial ore acquisition unit of major competitor) Sales team of 18 minerals buyers covering 6 regions LIMA CHALA ONE SAC Top Regions Number of Mines * 1. Arequipa 14, Ayacucho 9, Puno 6, Apurimac 7, La Libertad 5, Piura 2,123 * Internal Numbers Provided by Ministry of Energy and Mines of Peru 5 TSX.V: IO 1. US Geological Survey, measured in Metric Tonnes 2. Peruvian Newspaper La Republica, as reported from news portal Peru This Week

6 Mineral Processing Business F. Sale and Export A. Mineral Delivery Gold dore is sold and exported to Switzerland. Miner delivers mineral to Chala One SAC plant. E. Harvest and Smelter Carbon is harvested and gold/silver concentrate is desorbed, then smelted into gold dore. Careful, systematic testing prior to mineral purchase is done to determine grade and recovery. B. Measure and Test Mineral is processed and gold Mineral is is absorbed; purchased at inventory turns over discount to spot approximately every price and stockpiled. 3 weeks. D. Process Material C. Purchase and Stockpile 6 TSX.V: IO

7 Chala One Processing Plant Located in mining friendly region of Arequipa Situated on over 55 acres of land Operating capacity of up to 140 TPD; Permitted capacity of 100TPD Fully government permitted, EIA approved Connecting to national power grid in 2017 Ample water supply Increased tailings capacity with room to expand further Managed by experienced and trustworthy Peruvian team (ex. Barrick) 7 TSX.V: IO Chala One SAC Plant East view.

8 Plant Layout and Facilities Tailings Ponds Desorption Plant Leaching Tanks Scale Plant Entrance Smelter Chemical Lab Camp Area Recycled Water Warehouse Stockpiles Ball Mills Reagent Storage Ramp Plant Roadway Met Lab 8 TSX.V: IO

9 Operating Highlights ( ) Tonnes Mineral Processing and Gold Production Ounces Q Q Q Q Processed Gold Produced Above chart shows mineral processed and gold produced over prior 4 operating quarters Mineral processed averaged 2700 tonnes/quarter from Q to Q With financing secured late Q2, processing increased in Q3 by 134% resulting in 143% increased gold sales in Q3 Management anticipates this trend to continue in 2017 in Q4 and into Q TSX.V: IO

10 USD Percentage Operations 96 Recovery Rates 94 Recovery rates trending positive since early February 2016 Averaging 92.15% over last 12 months P15 P16 P17 P18 P19 P20 P21 P22 P23 P24 P25 P26 P Periods Periods ,000,000 Gold Sales 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Q Q Q Q Q Q Q Q Q Sales (US) 1,101,2 3,552,1 5,020,2 3,309,9 2,205,7 1,989,1 1,591,5 1,819,0 4,022,1 Revenue peaked in Q Refinanced in Q operations and sales ramped up again in Q3 Sales expected to grow further in 2017 and TSX.V: IO

11 Processor Comparables Company Shares Out/FD 1 (M) Price 1 Mkt Cap1 (C$) Debt 1 2 (C$) Projected EBITDA 2017 (USD) Years in Production Permitted Capacity Permitting Complete Mining Assets Dynacor 39/42 $ M 6.3M 10.0M 10+yrs. 300 Yes Yes Duran Ventures 46/47 $ M - 2.5M N/A No Yes Montan 74/113 $ M - 3.8M N/A 5 50 No Yes Gainey Capital 44/61 $ M - N/A N/A 300 Yes Yes Inca One 59/101 $ M 3.0M 4.1M 3+yrs. 100 Yes Table Footnotes (1) As of market close March 2, 2017, CAD. (2) Includes lines of credit, debt units, stream borrowing. (3) 80% interest in polymetallic floatation processing plant. (4) Mandate to JV mining assets in (5) No operating history to project from yet. 11 TSX.V: IO

12 Share Structure Share Structure As of March 1, 2017 Issued and Outstanding Warrants Options Fully Diluted Market Cap Ownership - Management/Directors - Funds/Institutions 59.3 M 38.5 M 3.6 M M $10.4 M 5.8% 21.9% 12 TSX.V: IO

13 Key People Management and Directors Edward Kelly, BBA Oliver Foeste, CPA, CA Mark St.John Wright, B.Sc., MBA Rafael Rossi, CPA, MBA Bruce Bragagnolo, LLB Richard A. Mundie, CPA Position and Experience President, CEO and Director - Entrepreneur, 20+ years managerial experience in marketing and business development. CFO and Director Founder and Managing Partner Invictus Accounting Group LLP providing advisory services to Canadian publicly listed companies. VP Operations and New Projects entrepreneur with 10+ years starting and managing multiple successful businesses; prior experience in heavy industry, metal purification and extraction, sales and marketing. General Manager, Peru senior executive with 30+ years experience; previously 16 years with Barrick Gold as Senior Finance Manager and Controller at Pierina and Lagunas Norte. Chairman of the Board Mining executive, Co-Founder and Former CEO Timmins Gold Corp, and Silvermex Resources Ltd; raised over $120M in debt and equity. Director Numerous years of executive leadership experience including roles in finance, corporate development, marketing and M&A; senior financial roles with Teck Resources (Taseko Mines), notably Director and Audit Committee Chairman. 13 TSX.V: IO

14 2017 Objectives Cash flow positive Expand permits to increase production to max capacity of 350TPD Maintain plant efficiencies, recovery rates and current margins Power grid connection Joint Venture with operating mines to solidify mill feed for future growth 14 TSX.V: IO

15 Contact Information Head Office Suite West Georgia St. Vancouver, BC V6E 2Y Peru Office Calle los tulipanes N 147 Office 503 Urbanización Lima, Polo Hunt Surco, Lima 33 - Perú (+51) / 4387 Investor Relations Konstantine Tsakumis irincagold@incaone.com