Intelligent Venture Capital for the Resource Sector

Transcription

1 Intelligent Venture Capital for the Resource Sector

2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking information within the meaning of applicable Canadian securities legislation and United Stated federal securities laws. Forwardlooking information includes, but is not limited to, information with respect to future operating and development plans, the adequacy of Norvista s financial resources, business plans and strategy and other events or conditions that may occur in the future. Generally, forward-looking information can be identified by the use of forward-looking terminology such as plans, expects, or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or does not anticipate, or believes or variations of such words and phrases or state that certain actions, events or results may, could, would, might, or will be taken, occur, or be achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Norvista to be materially different from those expressed or implied by such forward-looking information, including risks associated with the competitive nature of the resource and financial services markets, the effect of government regulation and compliance on Norvista and its industry, reliance on key personnel and the uncertainty of future market conditions, including its impact on resource and financial services. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made regarding, among other things: Norvista s limited operating history, Norvista s ability to manage future capital needs and the uncertainty of availability of additional financing, the competitive nature of the resource and financial services industry, currency exchange risks, the need for Norvista to manage its planned growth and expansion, Norvista s ability to protect its proprietary rights, the effect of government regulation and compliance on Norvista and the resource and financial services industry, the ability of Norvista to maintain properly working systems, reliance on key personnel, global economic and financial market deterioration and impeding access to capital or increasing the cost of capital, volatile securities markets impacting security pricing unrelated to operating performance and the ability of Norvista to enforce judgments against a foreign corporation and its management. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although Norvista has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Norvista does not undertake to update any forward-looking information, except in accordance with applicable securities laws. 2

3 EXCELLENT OPPORTUNITIES EXIST IN THE CURRENT MARKET As the supply/demand equation is rebalanced and current inventory levels for commodities are reduced, the upside for quality assets purchased today will be significant Companies are selling assets at very attractive valuations to reduce debt and preserve capital Investing to leverage the recovery in commodity prices A significant number of investment opportunities exist in highly-rated mining jurisdictions Exploration and capital expenditure costs have declined significantly 3

4 MARKET TIMING VSE/CDNX/TSX-V Index Commodity Bull Market Commodity Bull Market 3000 Commodity Bull Market Commodity Bull Market? 2500 Commodity Bull Market +257% +252% Commodity Bear Market +65% +21% +91% +88% +23% +84% +???% 500 VSE Index Commodity Bear Market Commodity Bear Market Commodity Bear Market CDNX Index S&P/TSX Venture Exchange Index Commodity Bear Market 0 Jan-83 Jan-85 Jan-87 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17 4

5 LONG-TERM COPPER MINE PRODUCTION STILL NEEDED 1 At 2.7% global demand growth, 680,000t of new supply needed each year FORECAST COPPER REFINED BALANCE Post 2016, production expected to decline ~280,000t per year 3 Structural deficit starts in 2017 Thousand tonnes (500) (1,000) (1,500) (2,000) 4 Project developments slowed due to lower prices, higher capex, corporate austerity, permitting & availability of financing (2,500) (3,000) Source: WM, CRU, ICSG, Teck 5

6 2Q16 ESTIMATED GLOBAL COPPER C1 CASH COST CURVE 1 1 Source: Wood Mackenzie 6

7 INCENTIVE PRICE DRIVES THE FLOOR VALUE OF COPPER Investment in large projects is very capital intensive and is increasingly so as head grade declines INCENTIVE PRICES FOR MAJOR PRODUCTS The incentive price required to justify investments in the expansion of existing mines and the construction of new ones is estimated at $3.30/lb ($7,275/t) Incentive price considers required Cu price to achieve specified rate of return on expansion capex Incentive price has been adjusted downward by $0.20/lb from $3.50/lb ($7,716/t) to reflect the decline in oil driven input prices since 2Q14 and the USD strength Although short term copper prices are unpredictable, we believe that long term prices must be driven by the increase over time of the incentive price (necessary to justify the investment in new production to maintain global output) 7

8 COPPER PRICES AND STOCKS DAILY COPPER PRICES AND STOCKS LME Stocks Comex SHFE Price Plotted to April 19, 2016 Source: LLME, ICSG, ILZSG 8

9 COMMITTED ZINC SUPPLY INSUFFICIENT FOR DEMAND 1 We expect mine supply increases to allow for growth in refined supply of 1.09 million tonnes between 2014 and 2020 FORECAST ZINC REFINED BALANCE Over this same period we expect refined demand to increase 3.5 million tonnes Market in deficit since 2014, but large inventory has funded the deficit Thousand tonnes (500) (1,000) (1,500) (2,000) (2,500) 4 Zinc market moving into significant deficit with further mine closures and inventories are depleting (3,000) Source: Teck 9

10 ZINC PRICES AND STOCKS DAILY ZINC PRICES AND STOCKS LME Stocks SHFE Price Plotted to April 15, 2016 Source: LME/SHFE 10

11 WHAT WE DO Evaluate Invest Improve Support We continually evaluate a significant number of public and private base and precious metals projects We invest in a small number of actively managed projects with significant upside potential We improve the value of these assets through technical, managerial and Board level involvement We participate in follow-on financings and acquire shares in the open market 11

12 PATIENT AND FOCUSED APPROACH TO TARGET SELECTION Exploration Highly prospective exploration projects in politically stable jurisdictions that have in most cases had significant capital invested to date Pre-Production Our evaluation model delivers significant opportunities in all market conditions Small to mid-scale pre-production projects requiring capital to complete feasibility studies that are economic at today s metal prices 12

13 INTELLIGENT INVESTING IN RESOURCES RESOURCE COMPANY LIFE CYCLE EXPLORATION Norvista Exit Points Speculators Leave Institutional Investment MINING Patience and focus to target the best entry points on the value curve Norvista Entry Points Speculation EXPLORATION DISCOVERY FEASIBILITY DEVELOPMENT OPERATE 13

14 DISCIPLINED TECHNICAL PROCESS 1 Jurisdiction 2 Commodity Fundamentals 3 Infrastructure 4 5 Geology and Mineral Potential Project Cost 6 Financibility 14

15 HOW WE INVEST Equity Private Placement Project acquisition Company acquisition Royalty or production stream We structure the terms of our investments to maximize risk-adjusted returns 5 Convertible debt 6 Flexible structured solutions 15

16 HANDS-ON VALUE ADD WITH RIGOROUS TECHNICAL CONTROL Upgrade resources through drilling and geological interpretation Complete or redo resource work Complete metallurgy Complete Preliminary Economic Assessment Study Complete Prefeasibility Study Complete Feasibility Study Arrange production financing Active technical, management and board involvement 16

17 REAPING THE REWARDS OF OUR EFFORTS Sell our position Receive cash flow from operations Receive royalty payments M&A transactions to exit or further lever our position Clear 4-6 year opportunity to add value and exit with significant return 17

18 TRACK RECORD OF SUCCESS CEO DONALD CHRISTIE CPA COO BRUCE DURHAM P.GEO 25+ Years experience in Canadian Institutional debt and equity markets Founding partner of Oilerhead Christie & Company Limited Former CFO of Continental Gold Limited and Calvista Gold Corporation Board and management positions with several junior resource companies MICHAEL WILSON P.ENG 40 Years of experience in geology and surface/ underground mining engineering 40 Years of successfully moving grassroots exploration projects to producing mines Has been a leader or member of various exploration and management teams including the David Bell and Golden Giant mines in Hemlo, the Bell Creek Mine in Timmins, and Canadian Royalties Nickel Project in Quebec Board and management positions with several junior resource companies DARREN KONINGEN P.ENG 20+ Years of international mining experience as a professional engineer (metallurgy) Leveraging our combined expertise Former President and Chief Executive Officer of Behre Dolbear Canada Ltd. Holds degrees in Geology and Mining Engineering from University of Western Ontario and McGill University International experience in design, planning and capital/operating costs of mining operations President and Director of Minera Alamos Inc. Co-founder and former VP of Operations and VP Engineering with Castle Gold Corp. Helped to bring three operating and profitable gold mines into production within the last 10 years 18

19 BOARD OF DIRECTORS STANLEY SPAVOLD CHAIRMAN Executive Vice President of Clearwater Fine Foods Incorporated a diversified holding company with over $2.7 billion of assets under management and director and chair of finance committee of TSX listed Clearwater Seafoods. Mr. Spavold graduated from Dalhousie University with a Bachelor of Commerce degree in 1981 and received his CA designation in He has served as a Governor of Dalhousie University, Chairman of The Cobequid Hospital Foundation and Governor of the Tax Foundation of Canada. DONALD CHRISTIE PRESIDENT AND CEO Don Christie previously served as the Chief Financial Officer of Continental Gold Limited, from February 2008 until September Mr. Christie has over 25 years of experience in Canada s institutional equity and debt markets having worked for a number of years in investment banking with TD Securities and Newcourt Capital Group Inc. He was a founding partner of Ollerhead Christie & Company Limited in BRUCE DURHAM CHIEF OPERATING OFFICER Bruce Durham is a Professional Geologist who graduated from University of Western Ontario in Between 1998 and 2007, he held various management positions with Canadian Royalties Inc., including President, & Vice President Exploration. He has worked in mineral exploration for over 40 years with junior and senior mining companies exploring for precious and base metal deposits in Ontario and Quebec, but also with companies exploring across Canada, in the USA, and in Africa. ROBERT SOBEY DARREN KONNIGEN Mr. Sobey served as the Chief Executive Officer and President of Lawton s Drug Stores Limited from February 2006 to January 31, Mr. Sobey served at Lawton s Drug Stores for 25 years, the last 8 as its Leader. Mr. Sobey served as Senior Vice-President of Merchandising and Marketing of Sobeys Atlantic since He served at Sobeys Inc. since 1989 and served as its Vice President. He serves as a Director of SeaFort Capital. He has been a Director of Norvista Capital Corporation since April 18, He has been a Non-Independent Director at Empire Company Limited since He served as a Director of Sobeys Inc., since Darren has over 20 years of experience in both mining and metallurgical engineering. He is currently the President and a Director of Minera Alamos Inc., a Norvista investee company, with copper and gold assets in Mexico. Darren was a founding partner of Castle Gold Corporation where he designed, commissioned and operated two gold heap leach operations in Guatemala and Mexico before selling Castle Gold in 2009 for $130 million. Darren has been a director and held senior management positions in a number of publicly-traded resource companies. 19

20 OUR CURRENT INVESTMENT PORTFOLIO AKUNA MINERALS INC. NEVADA ZINC CORPORATION MINERA ALAMOS INC. AKUNA MINERALS INC. PETROWOLF RESOURCES LLC ROCKCLIFF COPPER CORP. Investment Amount: $2.0M at $0.14/share Current Share Position: 8,597,665 Company Stage: Exploration and Discovery Commodities: Zinc, Lead Location: Eureka, Nevada, USA Investment Amount: $1,250,000 at $0.10/share Current Share Position: 12,500,000 Company Stage: Pre-Production Commodities: Gold, Copper, Molybdenum (W) Location: Mexico Investment Amount: $2,000,000 Company Stage: PEA Complete, Feasibility Underway Commodities: Copper (Minor Zinc, Silver, and Gold) Location: Snow Lake District, Manitoba, Canada Investment Amount: $350,000 Company Stage: Seed Round of Financing Commodities: Shale Oil and Gas Location: Texas, Midland Basin Investment Amount: 7,142,857 shares at $0.07/share Company Stage: Exploration Commodities: Copper, Zinc and Gold Location: Manitoba Approximate Ownership: 13% Approximate Ownership: 14.5% Ownership: 80% Approximate Ownership: 3% 20

21 NEVADA ZINC $3,800,000 MARKET VALUE New Zinc Discovery Made in First Drill Program Zone Remains Open to Significant Expansion Phase 4 Drill Program Commencing Strong Shareholder Base $2,000,000 INVESTED Excellent Mining Jurisdiction Previous Operators Unaware of Potential Strong Commodity Fundamentals Well Defined Target Discovery Documented 21

22 WHY INVEST WITH NORVISTA 1 Broad depth of geological and mining engineering talent 2 Disciplined Methodology with diversified approach 3 Managerial and capital markets experience 4 Established track record of success 5 Favorable market conditions for fresh capital 22

23 contact Don Christie President and CEO 141 Adelaide St W., Suite 1660 Toronto, Ontario, Canada M5H 3L5 Tel: