Corporate Presentation May 2018 TSX.V: IO

Transcription

1 Corporate Presentation May 2018 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 Who is Inca One? Inca One Gold Corp. (TSX-V: IO) is a Canadian based mineral processing company with a 150 tonne per day gold ore processing facility in Peru. We have an established track record of production and sales from the servicing of government permitted small scale miners for the past 3 years. First publicly traded gold processing company to complete permitting under Peru s formalization legislation. Over US $36.6 million sales in first three years of operations. Experienced in house management team. Ideally positioned for growth. 3 TSX.V: IO

4 Why Peru? Ranked in top 10 of world s largest producers of base and precious metals. Has attracted major players in the 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 Politically and economically stable - PPK pro-business. Re-opened formalization process will significantly increase demand for processing. Moratorium on new processors creating barriers to entry in this formalization process--an opportunity to capture new business and additional mineral supply. 4 TSX.V: IO 1. SES Professionals, Overview of Mining in Peru

5 Mineral Supply World 6 th largest producer of gold in producing 155 million tonnes. 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. 3 Gold mineral processing plants in Chala produced 315,000 ounces (approximately 9 tonnes) of gold annually in highlighted regions are top sources of mineral suppliers. LIMA 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 Mineral buying team lead by experienced local Peruvian (who led the commercial ore acquisition unit of a major competitor). Sales team of 20 minerals buyers covering 6 regions. 5 TSX.V: IO CHALA ONE SAC 1. Gold Investing News report February Peruvian Newspaper La Republica, as reported from news portal Peru This Week 3. Internally sources data from local production in Chala Region

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 D. Process Material Carbon is harvested and gold/silver concentrate is desorbed, then smelted into gold dore. Mineral is processed and gold is absorbed; inventory turns over every 3 weeks. Mineral is purchased at discount to spot price and stockpiled. Careful, systematic testing prior to mineral purchase is done to determine grade and recovery. B. Measure and Test 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 150 TPD; Permitted capacity of 100TPD. Fully government permitted. Connected to national power grid in summer of Ample water supply. Recently upgraded and 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 Tonnes Operations Deliveries 3000 Ore Deliveries by Period P31 P32 P33 P34 P35 P36 P37 P38 P39 P40 P41 P42 P Periods TSX.V: IO Above chart shows ore deliveries as measured by four week operating periods. Deliveries in 2017 were 22,782 tonnes, up from 15,384 tonnes in 2016, an increase of 48% YOY, and Deliveries averaged 1,757 tonnes per month, as compared to 1,183 tonnes per month in For the first four periods in 2018 (Periods 40-43) deliveries averaged 2,141 tonnes per month, up from comparable 2017 Periods (1,682 tonnes), an increase of 27% YOY.

10 Tonnes Operations Processing 2500 Ore Processed by Period P31 P32 P33 P34 P35 P36 P37 P38 P39 P40 P41 P42 P Periods Above chart shows processing as measured by four week operating periods. Material processed in 2017 was 23,542 tonnes, up from 14,192 tonnes in 2016, an increase of 66% YOY. Average monthly processing in 2017 was 1,811 tonnes, up from 1,092 tonnes in Throughput averaged 65 tpd (tonnes per day) over 2017, as compared to approximately 39 tpd in 2016, an increase of 66% YOY. For the first four months of 2018 processing averaged 2,101 tonnes per month up from 2017 average of 1,722 tonnes, an increase of 22% YOY. 10 TSX.V: IO

11 Ounces Operations - Gold Production 3500 Gold Production Q Q Q Q Q Q Q Gold Produced TSX.V: IO Above chart shows gold produced over prior 7 fiscal operating quarters.. With financing secured late in Fiscal Q2, processing increased in Fiscal Q3 resulting in 143% increase in gold sales. Fiscal Q production experienced seasonal slowdowns including severe weather conditions causing widespread damage to infrastructure throughout Peru resulting in lower than usual ore deliveries. Operations recovered in Fiscal Q1 and Q2 2018, deliveries picked up as expected and production increased with additional financing secured. Drop in Fiscal Q3 due to less capital available for ore purchases. Fiscal Q production a direct result of January 2018 financing and capital upgrade initiatives increasing gold production by 48% YOY and 50% from Fiscal Q

12 CAD Operations - Sales 6.00 Gold Sales Q Q Q Q Q Q Q Q Sales (C$M) TSX.V: IO Chart above shows Gold sales over prior 8 quarters. Refinanced in Fiscal Q operations and sales ramped up substantially in Q3. Fully funded again in Fiscal Q (January 2018 Private Placement), Sales increased further in Q4 Fiscal Growth in sales expected to continue in Q1 Fiscal 2019 and beyond.

13 Share Structure Share Structure As of May 15, 2018 Issued and Outstanding Warrants Options Fully Diluted Market Cap 146 M 96 M 10 M 252 M 8.76 M 13 TSX.V: IO

14 Key People Management Edward Kelly, BBA Kevin Hart, CPA Mark St.John Wright, BSc, MBA Rafael Rossi, CPA, MBA Directors Bruce Bragagnolo, LLB Rodney Stevens, CFA Adrian Morger Position and Experience President, CEO and Director - Entrepreneur, 20+ years management experience in marketing and business development. CFO 20+ years international experience in finance, accounting, corporate administration and governance; formerly Asanko Gold and the HDI group of companies, including Farallon Mining and Taseko s Gibraltar Copper Mine. 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. Position and Experience 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 10+ years capital markets experience; Starmine recognized top rated Investment Analyst in metals & mining industry in 2007 while at Salman Partners; assisted in financings and M&A activity worth over $1B value. Director European based Asset Manager, 20 years banking experience, former Head of Fund and Manager Selection for VP Bank AG, and Fund Manager Alternative Investments at Internationale Fonds Service AG. 14 TSX.V: IO

15 2018 Objectives Maximize plant efficiencies under current production capacity. Execute on current business plan to achieve profitability. Expand permits to increase production. Seek Joint Venture opportunities. 15 TSX.V: IO

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