Going for Gold October 2013

Transcription

1 Going for Gold 1

2 Disclaimer This document may contain statements that constitute forward-looking statements, including, but not limited to, statements relating to the implementation of strategic initiatives, and other statements relating to our future business development and economic performance. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other statutory requirements may render actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technology developments, (5) changes in the financial position or creditworthiness of our customers, obligors and counterparts, and changes in the developments in the markets in which they operate, (6) legislative developments, (7) management changes and changes to our business group structure and (8) other key factors that may adversely affect our business and financial model. We are not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. The technical and financial information presented are best estimates of management and are not JORC or NI compliant unless otherwise stated. Investors are cautioned not to place undue reliance on this information and not rely solely on the information presented for purposes of making investment decisions. This material may not be reproduced, distributed or transmitted to any other person or incorporated in any way into another document or other material without the prior written consent of LionGold. 2

3 Key Mining Assets Today million ounces Gold Resources since March Projects in the Americas, Africa, Australia Acadian Mining Corporation Nova Scotia Goldfields Canada Castlemaine Goldfields, Ballarat Mine Victoria, Australia 1.33 million ounce Gold Resource at Fifteen Mile Stream & Beaver Dam, 100% owned Arrangement with SOE SINOMA Group s CBMI Construction 757,700 ounce Gold Resource at 2 tenements, 40-50,000 oz production target, 100%-owned Minera Nueva Vista, 1.47 million Amayapampa, ounce Gold Bolivia Resource, 76%-owned Citigold Corporation, Charters Towers, Queensland, Australia 1.28 million ounce Gold Resource including 787,300 Reserves, 100% owned Signature Metals, Owere Mines, Konongo Ashanti Gold Belt, Ghana Unity Mining Tasmania & NSW, Australia A1 Consolidated Gold Victoria, Australia 11 million ounce Gold Resource, incl 620,000 Reserves,18%-owned 1.47 million ounce Gold Resource, 77%-owned 623,000 oz Gold Resource at 3 tenements, incl 354,000 Reserves, 50,000 oz production, 13% owned 281,000 Gold Resource 15% owned 1 - LionGold will subscribe to A1 shares in two tranches. The second tranche of the placement, which amounts to 5% of A1 s share capital, is subject to approval by A1 shareholders and regulatory agencies. 3

4 LionGold Project Pipeline - Progressing existing projects Company Project Resources (ounces) Reserves (ounces) Early stage Exploration Advanced Exploration Feasibility Development Production Castlemaine Goldfields 100% Ballarat 71,700 - Castlemaine 686,000 - Minera Nueva Vista 100% Amayapampa 1,280, ,300 Production 40-50,000 oz pa Exploration on-going Infrastructure & mine development Production 2015: 19,000 oz pa 2018: 85,000 oz pa Acadian Mining 100% Signature Metals 77% Brimestone Resources 100% Citigold Corporation 18% Unity Mining 13% A1 Consolidated Gold 15% Beaver Dam 950,000 - Fifteen Mile Stream 383,000 - Konongo 1,470,000 - Penny s Find 52,300 - Charters Towers 2,120, ,000 Henty 296, ,000 Darques Reef 327, ,000 A1 Gold Mine 281,200 - Scoping study end 2013 Production potential 2017 Scoping study completion end 2013 Exploration on-going Exploration on-going New operations management in place Production 50,000 oz pa Production 2015: 50,000 oz pa Production 2014/2015: 35,000 oz pa Production figures represent annualised targets. Figures are extracted from previous JORC- and NI compliant announcements. Resources include Reserves. For Projects in which LionGold has a controlling stake, the Resources and Reserves are based on 100% of the Project s holding. For Citigold Corporation, Resources and Reserves are based on LionGold s 18% equitable holding of the Charters Towers Project s 11 million ounces of gold Resources, inclusive of 620,000 ounces of Reserves.Take over of 5% of A1 s share capital is subject to approval by A1 shareholders and regulatory agencies. 4

5 Geographically diversified - Risk management No geographic limitations, but - Preference for friendly / developed jurisdictions Increasing opportunities for regional consolidation Canada 5% Bolivia 5% Ghana 33% Canada 19% De-risking Canada 19% Investment Resource Australia 57% Australia 42% Developed Profile by Resource Ounces Developed 61% Stable business environment Infrastructure, skilled labour, funding Can be high-cost Friendly Emerging 21% Bigger opportunities Lower entry cost Australia, Canada Established mining industry Excellent skills-base Many junior miners Ghana, Ashanti Gold Belt Stable, foreign-friendly Established gold industry Highly prospective, scalable Bolivia 18% Challenging Ghana 21% Friendly Emerging Challenging 18% Good value Bolivia Relationships key 5

6 Fast-tracking growth - Response to improved acquisition opportunities Production Acquisition Focus Ouncesin-the-Ground FY2013 FY2014 Unity Mining 13% Today Resources 7.0m oz Reserves 0.9m oz Signature Metals 77% Castlemaine Goldfields v Acadian Mining Production 40-50,000 oz Exploration Brimstone Resources Citigold Corp 18% A1 Consolidated 15% ~ 8 Projects FY2012 Minera Nueva Vista 4 Countries FY2011 Acadian Mining 9% A1 Gold Mine Ore processing agreement New shareholders Business review Proposed change of core business to precious metals Non-core business divestment begins Indices inclusion Project screening Fund-raising for gold business S$100m Institutionalisation of shareholder base CBMI MOU Team-building Business integration 6

7 LionGold Corp - Going for Gold Dynamic, Expanding Operations Initial growth acquisition-led, value accretive 7.0 million oz acquired from FY eight total, wholly-owned in production - S$210 million value, <US$30 per oz Production focus going forward - Target raised to 200,000 vs 120,000 oz - Growing opportunity: regional consolidation FY2011 FY2012 FY2013 Current Target end 2014 FY2011 FY2011 FY2012 FY2013 Current Current Target end 2014 Resource & Reserves (million ounces) Reserves Production ( 000 ounces annualised) Resource

8 Group Structure - As at Board of Directors Tan Sri Dato Nik Ibrahim Kamil Non-Executive Chairman Over 45 years managerial and business experience across a range of industries, including mining, media, financial, energy and infrastructure. 100% 77% Operations Castlemaine Goldfields Signature Metals LionGold Corp Ltd Investment Citigold Corporation Unity Mining 18% 13% Nicholas Ng Chief Executive Officer & Managing Director Raymond Tan General Counsel & Executive Director Dato Md Wira Dani Abdul Daim Non-Executive Director Roland Selvanayagam Independent Non-Exec Director Former CEO of DMG Partners and MD of Citicorp Investment Bank, Singapore. Previously head of Asia investment banking at Rabobank. Over 30 years legal experience including 15 years with Robert Wang & Woo LLP where he was Partner and Head of the Corporate & Commercial Department. Asiasons WFG Financial Chairman. Actively involved in resource M&A in Asia and Africa and banking in sub-saharan Africa. Professionally qualified accountant with affiliations in the UK, Australia and Malaysia with experience in Australia, Southeast Asia and South Africa. 100% 100% 100% 70% Owere Mines Brimstone Resources Minera Nueva Vista Acadian Mining Corporation A1 Consolidated 15% Technical Committee Audit Committee Remuneration Committee Nomination Committee Dr Denis Clarke Independent Non-Executive Director Gary Scanlan Independent Non-Executive Director Lynne Ng Su Ling Independent Non-Executive Director Over 40 years experience in senior technical, financial and management roles in the mining industry globally, including with Rio Tinto and Plutonic. Ten years with PwC, followed by more than two decades evaluating, developing, financing and administrating mining projects globally. Twenty years of legal practice with a broad range of experience ranging from litigation and conveyance to corporate and commercial matters. Bernard Soo Independent Non-Executive Director Accountant with extensive experience in project development, finance and business development throughout Asia. 8

9 New Leadership Team - Seasoned financial, legal & technical expertise Board of Directors CEO & MD Nicholas Ng 29 years in financial markets. Former CEO of DMG Partners, and MD of Citicorp Investment Bank, Singapore. Previous Head of Asia Investment Banking at Rabobank. Concluded numerous IPO, M&A, privatisations and other financial transactions in Asia-Pacific. Audit Committee Remuneration Committee Nomination Committee Technical Committee Corporate Finance and Legal Teams now in-house Global Technical Team Matthew Gill Australia Andrew Lawry Global Projects Chris Gbyl West Africa Mike Clarke Bolivia Pending Canada General Counsel Raymond Tan CFO Brendan Goh Corporate & Business Development Director Peter Chen COO Matthew Gill Also Executive Director and Company Secretary. Provided legal advisory to LionGold since Over 30 years legal experience including 15 years with Robert Wang & Woo LLP, where he was Partner, and Head of the Corporate & Commercial Department. 19 years in investment banking and corporate advisory in Asia-Pacific. Former Corporate Finance, Co-Head for DMG Partners and Corporate Finance Head for HL Bank. Former CFO of SGX-listed Darco Water Technologies. 17 years as a corporate lawyer, including acting as general legal counsel for public-listed companies. 8 years actively involved in the setting up of iron ore and gold mining operations around the world, from Mali to Mongolia. Spearheading LionGold s M&A effort globally. Mining engineer with over 30 years experience in all aspects of exploration and mining in Australia, India and Papua New Guinea. Turned around Ballarat Mine for Castlemaine and the Beaconsfield Mine, Tasmania. Australian Mine Manager of the Year for 3 consecutive years. 9

10 Financial snapshot - As at 30 June 2013 SGD million Revenue COGS (33.0) (22.2) Gross Profit Total loss after tax (0.5) (7.2) Loss attributable to minority interests Gain/(loss) for the period attributable to equity holders of the company (3.1) (2.1) 2.6 (5.1) SGD million Current assets Non-current assets Total Assets Current liabilities Non-current liabilities Total Liabilities Net Assets Gold operational update Q2 FY2014 Q1 FY2014 Gold produced (ounces) 13,845 9,431 Operating cash cost A$666 A$807 All-in cost A$1,055 A$1,210 Austere budgeting, rigorous cost controls, standardised reporting 10

11 Operating Objectives - Balance & Prioritise Mine Profile Resource expansion Reserve replacement Production rising, reliable Increasing Life of Mine Prioritise Community Environment, Health, Safety Education & Training P r o d u c t i o n E f f i c i e n c y 11

12 Value Targeting the Sweet Spot - Producing / near-producing assets Indicative Capital Allocation 5-10% 10-20% 70-85% End Production Extension Development Feasibility Study Pre- Feasibility Scoping Study Production Maximise Value, Mitigate Risk Risk Exploration Greenfields Brownfields Mining Project Life Cycle 12

13 Acquisition Strategy: Tweaked - Targeting scalable production SCREENING Gold producers globally Gold production ,000 oz pa - or clear path to ramp-up, 6-12mos > 1 millionoz gold Resource - inclusive of established reserve base - 5 years+ life-of-mine Organic cashflow growth - < US$1200 per ounce production cost - Strong working capital position Up to US$100 million investment SGX-listed LGC ALLURE De-risking of assets - Geographic - Funding access - Lower dilution risk Broader opportunities - Bigger, global group Better opportunities from April 2013 Accelerated streamlining by gold majors - Divestment of non-core assets Realistic valuation expectations by juniors More favorable environment for negotiation, cost-cutting, capital discipline 13

14 Results delivered - and going forward FY2013 FY2014 Dec 2014 Acquire Gold in the Ground Project Acquired Castlemaine Goldfields (100%) Signature Metals (77%) Minera Nueva Vista (100%) Brimstone Resources (100%) Acadian Mining (100%) Strategic Investments Citigold Corporation (18%) Unity Mining (13%) Divest Green Businesses Acquire Producing Assets Strategic Investments A1 Consolidated Gold (15%) Organic production growth Integrate resources Fortify team, alliances Expanded Funding Options CBMI Construction MOU Divest China Business 10 millionoz Resource 2 millionoz Reserve 200,000 oz pa Production 5 year Life of Mine Global Gold Co Ongoing Initiatives Shareholder Return Minimise Volatility Raise Transparency Mitigate Balance Sheet Risk 14

15 Global Gold Co listed in Asia - vs single-project / country focus 10 Company Name Country of listing Market Cap (US$/M) Enterprise Value (US$/M) Resource (Au Moz) EV/ Resource Operations CNMC SGX Malaysia, Sokor in production G-Resources HKSE Indonesia, Martabe, in production Zhaojin Mining HKSE 2,492 3, Projects in China, in production China Gold HKSE 1,080 1, Projects in Tibet, Inner Mongolia, in production Zijin Mining HKSE 8,027 11, Projects in China, in production LingBao Gold HKSE Projects in China, in production Zhongjin Gold SSE 4,629 5, Projects in China, in production Shandong Gold SSE 5,069 5, Projects in China, in production Median Valuation 1,786 2, LionGold Corp SGX Projects: Australia, Ghana, Bolivia and Canada 15

16 Tonnes Tonnes Tonnes Gold supply / demand dynamics - Driven by emerging market consumption World Gold Market 2012: 4,405 tonnes Central Banks Net Buyers from 2008 Gold Demand Jewellery Demand 600 Net Seller Net Buyer % 9% 12% 72% India Greater China 400 Far East 300 Middle East/ Turkey Rest of World (600) E Source: CPM Group ETF Tech Central Bank Consumer Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 US Europe ex CIS China India Japan South Korea Taiwan Indonesia Thailand USA Germany Italy France Netherlands Switzerland United Kingdom Central Bank Reserves Emerging & Japan 3,401 tonnes 2.6% of total reserves US & Europe 18,384 tonnes 59% of total reserves Source: Thomson Reuters GFMS, World Gold Council Gold Supply 36% Recycled Mined 64% Bar & Coin Demand India Greater China Far East Middle East/ Turkey Rest of World US Europe ex CIS Source: World Gold Council Source: Thomson Reuters GFMS, World Gold Council 0 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Source: World Gold Council 16

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18 Castlemaine Goldfields Limited - High grade nuggety ore Excellent facilities in established gold region, central Victoria, Australia Castlemaine Goldfields Tenements Five concessions in total with JORC Resources in Ballarat (producing) and Castlemaine Ballarat Mine production target 40-50,000 oz Gold operational update Q2 FY2014 Q1 FY2014 Gold produced (ounces) 13,845 9,431 Operating cash cost A$666 A$807 All-in cost A$1,055 A$1,210 Life of mine + production enhancement 150,000 tpa ore processing agreement with A1 Gold Mine - Share of gold revenues from A1 Gold Mine - Toll treatment rate per tonne of ore processed Resource Gold (ounces) Tonnage (tonnes) Grade (g/t) Castlemaine 686,000 2,760, Ballarat 71, , Total 757, % owned by LionGold from October 2012 Figures shown are based on previously quoted JORC-compliant statements Ore processing capacity of 600,000 tpa Figures indicate historical gold production at Castlemaine Goldfields five tenements 18

19 Signature Metals Limited - Prioritising exploration targets Flagship Owere Mines (70% owned) holds The Konongo Gold Project, Ghana Konongo Gold Project 192 km 2 concession in Ashanti Gold Belt - 16 known gold deposits, 12 km strike - 80 km along strike from Ashanti AngloGold s >200,000 ounce pa, 30 million ounce Obuasi mine Substantial untapped high-grade UG potential - Historic production of 1.6 million ounces at 11.8 grams per tonne, mostly from UG Scoping study completion planned end Exploration on-going, ramped up in Feb 2013 Konongo Gold Project Resources 1 Gold (ounces) Tonnage (tonnes) Grade (g/t) Measured & Indicated 779,600 13,100, Inferred 687,100 10,500, Total 1,466,700 77% owned by LionGold as at April 2012 and listed on the ASX. Figures shown are based on previously quoted JORC-compliant statements. 19

20 Minera Nueva Vista S.A. - Infrastructure development underway Bustillo Province, Bolivia Amayapampa Project Resources of 1.28m oz, inclusive of 787,000 Reserves - NI compliant Owns the rights to overlapping concessions totaling 34 km 2, located 290 km southeast of La Paz Excellent management team in place Starter pit phase 1, 19,000 ounces annualised Review phase 2 for 95,000 ounce open pit mine Amayapampa Category Gold (ounces) Tonnage (tonnes) Grade (g/t) Reserves Probable 787,300 18,900, Resources Indicated 979,637 26,160, Inferred 300,363 8,750, Total Resources 1,280, % owned by LionGold from December Resource is inclusive of Ore Reserves. Figures based on previously quoted NI compliant statements 20

21 Acadian Mining Corporation Limited - Inexpensive foothold in North-America Canadian tenements in Nova Scotia Nova Scotia Projects Under-explored gold-bearing province - Limited modern exploration Scoping study for open pit underway - Completion due end Potential production 3 years thereafter - Test mining options under consideration Attractive royalty portfolio Regional consolidation potential Property Gold (ounces) Tonnage (tonnes) Grade (g/t) Beaver Dam Indicated 446, , Inferred 504, , Fifteen Mile Stream Indicated 383, , TOTAL 1,333,000 Figures based on previously quoted NI compliant statements. 21

22 A1 Consolidated Gold - 15% Strategic investment, alliance with Castlemaine Goldfields Walhalla Goldfield, Victoria, Australia A1 Consolidated Golds Tenements Advanced project ready for production Mine plan review has focused on the 1400 Stockwork zone below the 1420 level - Reported Mine inventory designed for 6 years at a peak production rate of 150,000 tpa to December 2019 Progressive increase in mining rate 150,000 tpa ore processing agreement with Castlemaine Goldfields - Share of gold revenues from A1 Gold Mine - Toll treatment rate per tonne of ore processed Resource Gold (Ounces) Tonnage (tonnes) Grade (g/t) Indicated 41, , Inferred 240,000 1,170, Total 281,200 1,420, LionGold will subscribe to 20% of A1 shares in two tranches. The second tranche of the placement, which amounts to 5% of A1 s share capital, is subject to approval by A1 shareholders and regulatory agencies. Figures shown are based on previously quoted JORC-compliant statements 22

23 Citigold Corporation Limited - 18% strategic investment, single largest shareholder Charters Towers tenements near Townsville, Queensland Charters Towers Project Australia s highest grade gold field - 56 mineral holdings spanning >1,500 km 2 - Significant Life of Mine potential, >10 years LionGold now with two board seats Ripe for review, revamp - Secured A$100 million in funding mid New operations management Charters Towers Category Reserves Gold (ounces) Tonnage (tonnes) Grade (g/t) Probable 620,000 2,500, Resources Indicated 780,000 3,200, Inferred 11,000,000 25,000, Ore processing capacity of 340,000 tpa ASX-listed, 18% owned by LionGold from December Refer to for JORC-compliant statements. Indicated Resources includes Probable Reserves, and Inferred Resources includes Indicated Resources. 23

24 Unity Mining Limited - 13% strategic stake, single largest shareholder Unity Mining, ASX-listed Australian gold resources totaling 731,000 oz Unity s Primary Projects Annualised production targeted to double by year-end to 100,000 oz Cash of A$27.5 million as at 30 June 2013, no debt - A$23 million revenue from the sale of 16,860 ounces of gold in 3Q FY2013 Henty Mine, northwest Tasmania 100% - Established mine, producing 50,000 oz per year - Cash cost of A$979 per ounce, 5 year + LOM Dargues Reef, NSW 100% - On target to produce 50,000 oz per year annualised by early 2014, based on recent announcements. GoldStone Resources 35% - 3 West African exploration project, including a 602,000 ounce Ghanaian gold project locate near LionGold s Owere Mine - London-listed Project Henty Dargues Reef Category Gold (ounces) Tonnage (tonnes) Grade (g/t) Reserves 121, , Resources 296,000 2,060, Reserves 233,000 1,390, Resources 327,000 2,170, % owned by LionGold from May 2013, single largest shareholder Figures shown are based on previously quoted JORC-compliant statements 24

25 LionGold Corp Ltd 59 Mohamed Sultan Road Sultan Link Singapore T: F: E: Thank you w w w. l i o n g o l d c o r p. c o 25 m