Maximizing Value. Annual General Meeting of Shareholders June 20, Abacus Mining and Exploration Corporation TSXV:AME

Transcription

1 Maximizing Value Annual General Meeting of Shareholders June 20, 2012 Abacus Mining and Exploration Corporation TSXV:AME 1

2 Forward Looking Information This presentation includes certain statements that may be deemed "forward looking statements". All statements herein, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corporation (the "Company") expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. Abacus Mining and Exploration Corporation TSXV:AME 2

3 Abacus Capital Structure TSXV Symbol AME.V Capital Structure (C$) AME Share Price (June 18, 2012) $0.22 Share Price (52 week range) $ Issued and Outstanding* Warrants ($ ) Options Fully Diluted Market Capitalization Working Capital Ownership million 27.6 million 13.4 million million $50 million $1.5 million Teck Corporation 18.6% KGHM 7.1% Institutions 20% * At May 29, 2012 Abacus Mining and Exploration Corporation TSXV:AME 3

4 The Year in Review Towards delivery of Bankable Feasibility Study June 2011 Community Relations office in Kamloops opens First open house following initiation of Environmental Assessment Review Process in February December 2011 Delivery of robust Bankable Feasibility Study on Ajax copper gold project Joint Venture next steps March 2012 Abacus closes 3.18 million unit offering at $0.22 /unit + one-half warrant exercisable at $0.32 per full warrant per share April 17, 2012 Abacus initiates Strategic Review to maximize shareholder value Appoints Stifel Nicolaus Canada Inc. to evaluate strategic alternatives September 2011 Completion of Asset Exchange Agreement with NewGold resulting in cancellation of NewGold s NPI royalty January 2012 Abacus files Tech Report on Sedar KGHM has 90 days to elect to exercise further 29% in JV April 2, 2012 KGHM exercises option to acquire further 29% for $30 million payable to Abacus account in JV towards its share capex MAXIMIZING SHAREHOLDER VALUE 4 Abacus Mining and Exploration Corporation TSXV:AME 4

5 Abacus Today 20% interest in the robust feasibility stage Ajax copper-gold project, joint ventured with copper giant KGHM Fully financed capex carry of 20% of the estimated $795M $30 million currently in AME s account in the joint venture Long term resource potential in Ajax mining camp Obligation by KGHM to arrange financing for Abacus interest on commercially reasonable terms Forecast copper metal production in 2015 Abacus Mining and Exploration Corporation TSXV:AME 5

6 1. The Ajax Project Excellent Infrastructure Near Kamloops, B.C. Central transport hub (CN and CP) Access to skilled work force Low cost grid power, water, airport Road/rail access to Vancouver seaport Past Production Current Mineral Reserve Estimate 1978 to Afton Pit 1% Cu, 0.6 g/t Au 1989 to Ajax 0.46% cu, 0.34 g/t Au At October 31, bil lbs Cu mil ozs Au Abacus Mining and Exploration Corporation TSXV:AME 6

7 General Site Layout Conventional Open-pit Cu-Au Operation Abacus Mining and Exploration Corporation TSXV:AME 7

8 Estimated Project Schedule Feasibility Study Environmental Assessment & Permitting. Finalize d-air. Submit draft EIS. EIS approval & permitting EPCM and Construction Metal Production - Commissioning Abacus Mining and Exploration Corporation TSXV:AME 8

9 Feasibility Study Results Base Case Highlights (all economic figures in US$) Cu/lb US$2.75; Au/oz US$1,085 Proven & Probable Reserves Average annual production Mine life 60,000 tpd or 21.9Mtpa) 3 bil lbs Cu mil ozs Au 109 million lbs Copper + 99,000 oz Gold 23 years LOM stripping ratio 2.4:1 LOM production (in concentrate) Concentrate composition Cash cost per lb of Cu (net of Au) US $1.28 Initial capital costs (incl $87 mil contingency) Sustaining capital 2.5 bil lbs Cu mil oz Au 25% Cu + 18 g/t Au US $795 Million US $604 Million Robust economics using conservative price assumptions Abacus Mining and Exploration Corporation TSXV:AME 9

10 Feasibility Study Results Scenario Economic Analysis (all economic figures in US$) Base Case Scenario Alternate Case Scenario1 Alternate Case Scenario2 Cu US$/lb $2.75 $3.00 $ 3.50 Au US$/oz $1,085 $1,300 $1,700 Exchange Rate (US$:C$) Pre-tax Internal Rate of Return Cash Cost per lb Cu (net of gold credits) Pre-Tax Net Present Value (8% discount rate) 14.5% 19.5% 30.3% $1.28 $1.11 $0.79 $416 mil $818 mil $1,601 mil Payback Years Abacus Mining and Exploration Corporation TSXV:AME 10

11 Feasibility Study - Estimated Capital Total Direct Initial Capital US$ 000 Site services, utilities, general 61,584 Mine pre-stripping 34,443 Mining equipment 84,880 Crushing & Conveying 37,464 Ore storage and HPGR 89,614 Concentrator 144,815 Tailings storage 79,493 Ancillary buildings 18,639 Water supply from Lake 14,805 TOTAL DIRECT INITIAL CAPITAL 565,737 Abacus Mining and Exploration Corporation TSXV:AME 11

12 Feasibility Study - Estimated Capital Total Initial Estimated & Sustaining Capital US$ 000 Total Direct Initial Capital 565,737 Project indirect 107,176 Owners costs 34,500 Contingency 87,570 TOTAL INITIAL ESTIMATED CAPITAL 794,983 Sustaining Capital Mining equipment 262,714 Crushing & Conveying 135,458 Stacking 57,987 Plant site 43,214 Tailings 104,642 TOTAL ESTIMATED SUSTAINING CAPITAL 604,015 Abacus Mining and Exploration Corporation TSXV:AME 12

13 Economic Analysis value to Abacus (All amounts in $millions except metal prices) Base Case Scenario Alternate Case Scenario1 Alternate Case Scenario2 Cu US$/lb $2.75 $3.00 $ 3.50 Au US$/oz $1,085 $1,300 $1,700 Project Pre-Tax NPV (8%) ,601 AME S portion (20%) Cash payable to AME for PP Reserves Pre-Tax Project Value to AME (8%) AME s current mkt cap 50 Abacus Mining and Exploration Corporation TSXV:AME 13

14 Strategic Review Update Stifel Nicolaus has completed its preliminary assessment of the Ajax project valuation A number of potential interests are being evaluated Offtake interest Merger/acquisition Takeover Abacus Management and Board are committed to maximizing value for Abacus shareholders Abacus Mining and Exploration Corporation TSXV:AME 14