Austral Gold Limited · ASX:AGD
Austral Gold — Shareholder Meeting (May 2022)
45 slides from Austral Gold's shareholder meeting presentation, May 27, 2022
Slide 1: Transforming an Established Gold Producer
TRANSFORMING AN ESTABLISHED GOLD PRODUCER FOCUSED ON EXPLORING FOR TIER 1 & TIER 2 PROJECTS Annual General Meeting • Fiscal Year 2021 Review and Outlook Corporate Presentation • May 27, 2022 AGD (ASX) AGLD (TSX-V)
Slide 2: Disclaimer
DISCLAIMER This presentation contains information about Austral Gold Limited ("Austral Gold") and Austral Gold's properties that have been extracted from more comprehensive documents. The information contained in this presentation is given in summary form and is qualified in its entirety by the docu
Slide 3: Investment Thesis
INVESTMENT THESIS FOCUSED on exploring for PROFITABLE flagship INSTALLED production multi-million gold and silver operation to fund capacity with two 1,500 tpd ounce deposits sustaining investments agitation leaching plants HIGH-QUALITY asset BOARD/MANAGEMENT SIGNIFICANT discount portfolio to suppo
Slide 4: An ASX and TSXV Listed Company with a High-Quality Portfolio of Assets
AN ASX AND TSXV LISTED COMPANY WITH A HIGH-QUALITY PORTFOLIO OF ASSETS SYDNEY VANCOUVER Australia Canada ASX Primary Listing (AGD) TSXV Secondary Listing (AGLD) Mercur Project Rawhide Mine Utah, U.S. Nevada, U.S. Rawhide Mine (24%) →Production Mercur Project (12%) →Exploration Casposo Mine (100%) →C
Slide 5: Strong In-House Capabilities Covering the Full Mining Cycle
SUPPORTED BY STRONG IN-HOUSE CAPABILITIES COVERING THE FULL MINING CYCLE 1 OPERATION OF MINES Technical team with experience in the exploitation of OP and UG and in metallurgical processes of cyanidation in heaps and agitation. AUSTRAL GOLD is a mining company BROWNFIELD AND and explorer of precious
Slide 6: Proven Track Record at Our Flagship Property
PROVEN TRACK RECORD AT OUR FLAGSHIP PROPERTY 10-YEARS OPERATING THE GUANACO & AMANCAYA MINES (2012-2021) 2022 New Technical Report supporting a 12-year increase 475k GEO US$760/GEO in the life of Aggregate production 10-Year Average mine to 2033* (~48k GEO Average/Year) C1 US$970/GEO US$1,450/GEO 20
Slide 7: Creating Value Through M&A
CREATING VALUE THROUGH M&A +US$60M invested in a wide range of M&A structures including two friendly takeovers of TSXV listed companies 2013 2014 2016 2017 2019 2020 2021 2022 15% Private Acquisition of 51% Acquisition Acquisition of Acquisition of Earn-in Friendly takeover Agreement to Placement in
Slide 8: Board and Senior Management Team
BOARD AND SENIOR MANAGEMENT TEAM DEMONSTRATED SUCCESS IN EXPLORATION, CONSTRUCTION AND OPERATING MINES Stabro Kasaneva, Rodrigo Ramirez, Raúl Guerra José Bordogna, Geologist, CEO & Executive Min. Eng., VP of Operations Geologist, VP of Exploration B.Acc., Msc. Finance, MBA, CFO Management Director •
Slide 9: Shareholder Information
SHAREHOLDER INFORMATION Capital Structure Exchange/Symbol ASX: AGD, TSX-V:AGLD 1. Dual-listed company on ASX Share Price (18 May 2022) A$0.061 (C$0.060) and TSXV 52 Week Trading Range A$0.057 – A$0.180 2. Conservative Capital Shares Outstanding (3) 612,311,353 Structure with low gearing Market Capit
Slide 10: FY2021 Review
FY2021 REVIEW 10
Slide 11: Fiscal Year 2021 Review: We Remained Focused on Our Strategic Goals
FISCAL YEAR 2021 REVIEW WE REMAINED FOCUSED ON OUR STRATEGIC GOALS EXPAND THE New NI-43-101 technical report issued by a top global firm supporting a 12-year GUANACO/AMANCAYA increase in the life of mine of Guanaco/Amancaya to 2033 OPERATION TIER 1 OR 2 Completed +8K meters of drilling. We continue
Slide 12: FY2021 Review: Operations
FISCAL YEAR 2021 REVIEW OPERATIONS Guanaco/Amancaya FY 2021 Lost-time-accidents (#) 5 Nil-lost-time accidents (#) 16 Ore Processed (t) 233,794 Average Plant Grade (g/t Au) 5.22 Production Average Plant Grade (g/t Ag) Gold produced (Oz) 18.64 29,938 31,142 GEO Silver produced (Oz) 87,050 Gold-Equival
Slide 13: FY2021 Review: Profitability
FISCAL YEAR 2021 REVIEW PROFITABILITY Combined Figures FY 2021 38% Sales Volume (GEO) 35,838 Revenue (US$´000) 64,390 Gross Profit * (US$´000) 24,516 Gross Margin despite a challenging year Gross Profit Margin* (%) 38% with the new operational model and the EBITDA** ($´000) 14,429 Covid-19 pandemic
Slide 14: FY2021 Review: Cash Flow
FISCAL YEAR 2021 REVIEW CASH FLOW Combined Figures (US$´000) FY 2021 Operating Cash Flow (A) 11,310 Cash Balance at the beginning of period (B) 12,401 Available Cash (A+B) 23,711 Internal cash generation fully funded Investing Cash Flow - 18,471 US$18.5M of investments Financing Cash Flow - 2,894 Fi
Slide 15: Committed with Our Communities and Employees
FISCAL YEAR 2021 REVIEW WE CONTINUE COMMITTED WITH OUR COMMUNITIES AND EMPLOYEES 15
Slide 16: New Updated Technical Report to Expand Guanaco/Amancaya
FISCAL YEAR 2021 REVIEW NEW UPDATED TECHNICAL REPORT TO EXPAND THE GUANACO/AMANCAYA OPERATION Pre-Tax Free-Cash Flow (average $1,684/GEO) After Tax NPV (6.89%) US$133M US$77M Life of Mine 12-years (2022-2033) 220K 50% Sourced from 2022-2025 2026-2033 LOM LOM Recovered GEO Heaps Leach (4-years): (8-y
Slide 17: Significant Discount to Relative Valuation Metrics
FISCAL YEAR 2021 REVIEW SIGNIFICANT DISCOUNT TO RELATIVE VALUATION METRICS • Highly Undervalued Producer with solid grounds for capital appreciation EV TO M&I RESOURCES US$/GEO 450 400 Precious metals junior miners (production <100k AuEqOz per year) • Market Capitalization of US$~30M (A$~40M) reflec
Slide 18: Exploration Activities Review and Outlook
EXPLORATION ACTIVITIES REVIEW AND OUTLOOK TIER 1 OR 2 EXPLORATION STRATEGY • ORGANIC GROWTH • EARN-IN AGREEMENTS AND STRATEGIC ALLIANCES CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART THE CASPOSO MINE INCREASE THE MINERAL RESOURCE ESTIMATE AT THE PINGÜINO- SIERRA BLANCA OPPORTUNITY 1
Slide 19: Strategically Located Targets for Tier 1 and 2 Projects
TIER 1 OR 2 PROJECTS Chuquicamata EXPLORATION STRATEGY Spence Centinela Tier 1 and 2 Projects Targets HIGH-QUALITY PORTFOLIO Gaby II REGION Escondida El Peñon CERRO BLANCO SIERRA INESPERADA GUANACO MORROS BLANCOS STRATEGICALLY AMANCAYA LOCATED TARGETS FOR El Salvador TIER La Coipa 1 AND 2 PROJECTS I
Slide 20: Sierra Inesperada (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY SIERRA INESPERADA (CHILE) Objective Sara • Organic growth strategy driving the exploration for a Tier 1 or 2 discovery in the HS Palaeocene - Eocene Belt in Chile, near our Guanaco/Amancaya mine complex 2021 Activities • At Sierra Inesperada, four targets we
Slide 21: Strategic Alliance with Pampa Metals Corp
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY STRATEGIC ALLIANCE WITH PAMPA METALS CORP (CSE:PM) Option to acquire 80% of Morros Blancos and Cerro Blanco Initial consideration consisted of 2.9M Pampa Metal shares ($~0.8M) obtained in the acquisition of Revelo Resources 3 WORK COMMITMENT STAGES STAGE 1 S
Slide 22: Morros Blancos (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY MORROS BLANCOS (CHILE) 2021 Activities • Morros Blancos initial drilling program commenced at the delineated target of Rosario del Alto, the first of three prospective areas identified • Four of the five holes planned for phase 1 at the Rosario del Alto targ
Slide 23: Cerro Blanco (Chile)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY CERRO BLANCO (CHILE) 2021 Activities • Geological mapping, rock sampling and ground magnetometry at the delineation stage at Cerro Blanco confirmed the few existing outcrops (<5%) relate to phreatomagmatic rocks with advanced argillic alteration. • Historic
Slide 24: Strategic Alliance with Mexplort: Earn-in Terms
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY STRATEGIC ALLIANCE WITH MEXPLORT PERFORACIONES MINERAS SA Investment Rationale 1. Access to a potential Tier 1-2 50% earn-in agreement in the Jaguelito project plus agreement project in a mining friendly to create a 50:50 joint venture jurisdiction with the
Slide 25: Jaguelito (Argentina)
TIER 1 OR 2 PROJECTS EXPLORATION STRATEGY JAGUELITO (ARGENTINA) Objective • Develop Jaguelito as a new Tier 1or 2 project discovery in San Juan – Argentina. Overview • Jaguelito is an advanced exploration stage project in one the most endowed districts of precious metals globally which includes the
Slide 26: Casposo Mine: Consolidate Mineral Reserves to Restart
CASPOSO MINE CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART OPERATIONS Objective • Identify a minimum of 250k Au ounces of mineral reserves in the district to relaunch mining operations 2021 Activities • The first phase of drilling was completed in 2021 with 2,800 meters in 14 holes
Slide 27: Manantiales Vein Longitudinal Section
CASPOSO MINE CONSOLIDATE A MINIMUM INVENTORY OF MINERAL RESERVES TO RESTART OPERATIONS Manantiales Vein - Longitudinal Section (Looking West) Exploring for blind ore-shoots 27
Slide 28: Option to Acquire Up to 100% of Sierra Blanca Project
PINGUINO-SIERRA BLANCA OPPORTUNITY (ARGENTINA) SUMMARY OF THE EARN-IN AGREEMENT WITH NEW DIMENSION RESOURCES* Investment Rationale 1. Expand the area of the Pinguino project by securing an OPTION TO ACQUIRE UP TO 100% additional 7,000 hectares with OF THE SIERRA BLANCA PROJECT a prospective explorat
Slide 29: Pinguino-Sierra Blanca Opportunity: Exploration
PINGUINO-SIERRA BLANCA OPPORTUNITY EXPLORATION TO INCREASE EXISTING MINERAL RESOURCE ESTIMATE BASE Objective • Maximize the value of the Pinguino-Sierra Blanca-Plata Leon cluster through C° Negro exploration activities Plata Leon Overview • The new cluster project is in a potential NW corridor that
Slide 30: Friendly Takeover of Revelo Resources
2021 M&A ACTIVITY FRIENDLY TAKEOVER OF REVELO RESOURCES Investment Rationale 1. Acquire an attractive exploration portfolio with (i) 100% ACQUISTION OF A three projects strategically located in the CANADIAN TSXV LISTED proximity of our Guanaco/Amancaya operations, and (ii) other four projects with p
Slide 31: Adding Revelo Resources Quality Assets
2021 M&A ACTIVITY Revelo Projects ADDING REVELO RESOURCES QUALITY ASSETS Porphyry System projects acquired from Revelo Resources Chuquicamata Epithermal System projects Spence MONTEZUMA acquired from Revelo Resources Centinela Overview Gaby • Significant ~25,000 ha land package with multiple indicat
Slide 32: Our Business Strategy: Path for Growth
OUR BUSINESS STRATEGY: PATH FOR GROWTH 32
Slide 33: Our Business Strategy Pillars
OUR BUSINESS STRATEGY PILLARS 2021 ACTIVITIES SET THE FOUNDATION FOR GROWTH Exploration Exploration Strategic Equity Organic Growth Strategic Alliances Investments EXPLORE for High Sulfidation 50 -50 % AGD – Mexplort Rawhide Mine LLC in Nevada, USA. deposits in the Paleocene Belt in EXPLORE Jaguelit
Slide 34: Free-Cash Flow Generation Remains Key to Executing Our Strategy
FREE-CASH FLOW GENERATION REMAINS KEY TO EXECUTING OUR STRATEGY Guanaco/Amancaya Mine Complex Casposo/Manantiales Mine Complex (Chile) (Argentina) Production plan to produce Restart mining minimum of 32K GEO per operations annum for the next 4 years Consolidate through exploration new gold ounces at
Slide 35: Upcoming News and Developments
UPCOMING NEWS AND DEVELOPMENTS Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2023 2023 2023 2023 Brownfield Exploration Guanaco and Amancaya “Near Mine Exploration” Drilling Program Casposo-Manantiales Drilling Program Pinguino-Sierra Blanca Project Exploration and Drilling Programs Re-start the Casposo mine,
Slide 36: Appendix
APPENDIX 36
Slide 37: Guanaco & Amancaya Complex
GUANACO & AMANCAYA COMPLEX 1 Strategic location (220km from Antofagasta, Chile) with + 70K hectares of mining property 2 Guanaco, high-sulphidation epithermal deposit, and Amancaya a low sulphidation epithermal deposit, both hosted in the Paleocene/Eocene Belt - 1,500 tpd milling circuit to agitatio
Slide 38: Casposo Facilities
CASPOSO FACILITIES 2 3 1 On Care & Maintenance since 2019 1,500 tpd crushing 2 circuit to agitation leach and Merril-Crowe processing plant 3 Historical 2010-2019 production of 529,861 4 5 gold-equivalent ounces 4 Camp facilities 21km from mine site 5 +70K hectares of land plus mining property 38
Slide 39: Summary of Mineral Resources – December 31, 2021
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 Tonnes Grade Contained Metal Classification (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Guanaco Underground Measured 581 2.61 12.67 48.7 236.6 Indicated 868 2.31 17.67 64.5 492.9 M+I 1,448 2.
Slide 40: Summary of Mineral Resources – December 31, 2021 (continued)
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 Classification Tonnes Grade Contained Metal (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Amancaya Julia and Cerro Amarillo Projects Underground Measured - - - - - Indicated 72 5.36 9.50 12.4 2
Slide 41: Mineral Resources Notes
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX SUMMARY OF MINERAL RESOURCES – DECEMBER 31, 2021 Notes: 1. Mineral Resources followed CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Resources are reported on a 100% ownership basis. 3. Mineral Resources are inclusive of
Slide 42: Mineral Reserves – December 31, 2021
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX MINERAL RESERVES – DECEMBER 31, 2021 Tonnes Grades Contained Metal Category (000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag) Underground (Amancaya) Proven 47 5.74 11.51 9 17 Probable 251 5.01 12.95 40 105 Subtotal Underground 298 5.13 12.72 49 1
Slide 43: Mineral Reserves Notes
TECHNICAL REPORT ON THE GUANACO/AMANCAYA MINE COMPLEX MINERAL RESERVES – DECEMBER 31, 2021 Notes: 1. Mineral Reserves follow CIM (2014) definitions and are compliant with the JORC Code. 2. Mineral Reserves are reported on a 100% ownership basis and estimated at the following cut-off grades: • Amanca
Slide 44: Technical Report on the Pingüino Project Mineral Resources
TECHNICAL REPORT ON THE PINGÜINO PROJECT MINERAL RESOURCES – AUGUST 8, 2014 Variable cut-off Grade (g/t) Grade Ounces ('000s) Pounds (000's) Tonnes (000's) Ag Eq. Ag Au Zn (%) Pb (%) Ag Ag Eq. Au Zn Pb Indicated 6,281 132.3 103.4 0.58 0.77 0.54 20,877 26,717 116.8 107,225 74,993 Inferred 2,207 98.0
Slide 45: Transforming an Established Gold Producer: Contact
TRANSFORMING AN ESTABLISHED GOLD PRODUCER FOCUSED ON EXPLORING FOR TIER 1 & TIER 2 PROJECTS Contact Stabro Kasaneva, CEO Jose Bordogna, CFO Info: [email protected] [email protected] AGD (ASX) AGLD (TSX-V)