Sailfish Royalty Corp. · TSXV:FISH
Sailfish Royalty — Investor Presentation (May 2019)
25 slides from Sailfish Royalty's investor presentation, May 2019
Slide 1: Corporate Presentation
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Slide 2: Forward-looking Statements & Technical Data
Forward-looking Statements & Technical Data DISCLAIMER Certain information contained herein, other than information relating to Sailfish Royalty Corp. (“Sailfish” or the “Corporation”), while obtained from sources which we believe are reliable, is not guaranteed as to its accuracy or completeness. T
Slide 3: Forward-looking Statements & Technical Data
Forward-looking Statements & Technical Data The forward-looking statements and information contained in this presentation are made or given as at the date of this presentation and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information,
Slide 4: Sailfish Investment Highlights
Sailfish Investment Highlights Sailfish is an opportunity to get in on the “ground floor” of a new royalty company • Royalty companies have been superior investments when compared to publicly traded precious metals mining companies (1) • Backed by Wexford Capital LP, a well-funded investor that was
Slide 5: San Albino Gold Stream Restructuring – Overview
San Albino Gold Stream Restructuring – Overview The restructuring eliminates all funding commitments, fast tracks the timeline to cash flow, adds additional assets (including cash) and provides exposure to a highly prospective gold district • The San Albino gold stream restructuring was completed in
Slide 6: San Albino Gold Stream Restructuring – Exposure to a Highly Prospective Gold District
San Albino Gold Stream Restructuring – Exposure to a Highly Prospective Gold District The restructuring provides exposure to a highly prospective gold district that was previously excluded • The historical SA Stream AOI was only on 3.5 sq. km or ~2.5% of Mako’s total landholdings in Nicaragua • A ke
Slide 7: Capital Structure
Capital Structure Sailfish is backed by a well-funded investor with a successful track record in the resources sector Ownership (Fully Diluted) (3) TSX-V / OTCQ listings FISH / SROYF 12.1% Price (1) C$1.09 High – Low (52 weeks) C$2.00 – C$0.70 9.6% Shares outstanding 38.4 million Options 3.825 milli
Slide 8: Royalty Companies Are Gold Investments That Work
Royalty Companies Are Gold Investments That Work 350.00 Equal weighted royalty portfolio (FNV, WPM, RGLD, SSL) (1) Gold (GLD) Gold equities (GDX) 300.00 250.00 200.00 150.00 100.00 50.00 Source: Bloomberg 0.00 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12
Slide 9: Straightforward Business Model
Straightforward Business Model In exchange for an upfront payment: STREAMS Sailfish receives the right to purchase a portion of the gold and/or silver produced from a mine at a fixed price or discount to spot ROYALTIES Sailfish receives a portion of the revenue generated from a mine VALUE Sailfish s
Slide 10: Existing Portfolio
Existing Portfolio Two cornerstone royalty assets on advanced stage projects in the Americas • Restructured San Albino Gold Stream − A gold stream equivalent to a 3% NSR on the San Albino project and the current AOI and a 2% NSR on the rest of the 138 sq. km area surrounding the AOI − San Albino PEA
Slide 11: Asset Portfolio
Asset Portfolio Ability to invest globally, with a focus on the Americas The restructuring of the San Albino gold stream added additional assets to Sailfish’s portfolio GAVILANES DURANGO, MEXICO Option on an early stage silver property LA CIGARRA CHIHUAHUA, MEXICO 1.0% NSR on early stage silver proj
Slide 12: Sailfish Conceptual After-tax Cash Flow
Sailfish Conceptual After-tax Cash Flow Royalty cash flow has commenced from El Compas and is expected to grow as San Albino and Tocantinzinho come online $6.0 US$1,250/oz. Au El Compas Royalty (1) New SA Stream (2) TZ Royalty (3) US$15/oz. Ag $5.0 $4.8 $4.4 $4.2 $4.1 $3.9 $4.0 $3.5 $3.2 US$ million
Slide 13: Targeted Investing Within the Mining Life Cycle
Targeted Investing Within the Mining Life Cycle Investments in development and producing assets expected to generate sustainable risk- adjusted returns EXPLORATION DEVELOPMENT MINING FEASIBILITY & CONCEPT PRE-DISCOVERY DISCOVERY CONSTRUCTION STARTUP DEPLETION ENGINEERING 13
Slide 14: San Albino
AS S E T P R O F I L E LOCATION Nueva Segovia, Nicaragua San Albino STATUS In advanced development (permits received in September 2017) (2) Stream equivalent to a 3% NSR on high-grade, permitted project OPERATOR Mako Mining Corp. MINE TYPE Open pit gold mine, followed by underground AVERAGE ANNUAL P
Slide 15: San Albino
AS S E T P R O F I L E LOCATION Nueva Segovia, Nicaragua San Albino STATUS Exploration drilling 2% NSR on a district-scale land package OPERATOR Mako Mining Corp. MINE TYPE Not yet specified, but potential for both open pit and underground AVERAGE ANNUAL PRODUCTION Not yet specified ROYALTY 2% NSR (
Slide 16: Tocantinzinho
AS S E T P R O F I L E LOCATION Tapajos District, Para State, Brazil Tocantinzinho STATUS Advanced development 3.5% NSR on an advanced stage gold project OPERATOR Eldorado Gold Corp. MINE TYPE Open pit / flotation CIP AVERAGE ANNUAL PRODUCTION ~170,000 oz. Au (1) ROYALTY 3.5% NSR, which the operator
Slide 17: El Compas
AS S E T P R O F I L E LOCATION 1 km south of Zacatecas City, Zacatecas State, Mexico El Compas STATUS Commercial production declared March 2019 (1) 1.5% NSR on producing silver and gold mine OPERATOR Endeavour Silver Corp. MINE TYPE Underground / flotation CIP AVERAGE ANNUAL PRODUCTION ~135,000 oz.
Slide 18: La Cigarra
AS S E T P R O F I L E LOCATION Parral Silver District, Chihuahua State, Mexico La Cigarra STATUS Early stage exploration 1% NSR on an early stage gold project OPERATOR Kootenay Silver Inc. MINE TYPE Not yet specified, but potential for open pit AVERAGE ANNUAL PRODUCTION Not yet specified ROYALTY 1%
Slide 19: Gavilanes
AS S E T P R O F I L E LOCATION San Dimas mining district, Durango State, Mexico Gavilanes STATUS Early stage exploration Option to acquire 100% of Gavilanes property OPERATOR Sailfish Royalty Corp. PROPERTY DESCRIPTION Low-sulphidation epithermal deposit located in the San Dimas mining district of
Slide 20: Appendix
___ SAILFI ROYALTY CORP. APPENDIX
Slide 21: Royalty Company Comparable Analysis
Royalty Company Comparable Analysis Consensus Royalty Price-to-Cash-Flow 2020E Valuation (1) 25.0x 21.7x 20.0x 17.2x Average = 17.3x 17.1x 16.3x 15.8x 15.7x 15.0x P/CF 10.0x 5.0x 0.0x FNV MMX RGLD OR SSL WPM 1. Sources: S&P Capital IQ and Red Cloud Klondike Strike Inc. Price data as of January 9, 20
Slide 22: San Albino PEA Highlights
San Albino PEA Highlights (1) 500tpd 250tpd Average mined diluted grade (AuEq) 8.02g/t 8.02g/t After-tax NPV 5% discount $173.9 $105.4 After-tax IRR (%) 54.2% 37.4% Payback (years) 1.7 years 2.2 years Initial capital expenditures (with 20% contingency) $21.1 $13.9 All-in sustaining costs AuEq (US$/o
Slide 23: Tocantinzinho Project Highlights
Tocantinzinho Project Highlights (1) Key Facts 2019 Outlook Location Para State, Brazil Work is underway to update the 43-101 compliant PFS for the Tocantinzinho Mine type Open pit project. The PFS is expected to be completed in the first half of 2019. Development capital spending in 2019 is expecte
Slide 24: Management Team
Management Team Inline with the strategy of keeping G&A to a minimum, Sailfish is run by an experienced team of only three individuals Akiba Leisman Cesar Gonzalez Peter Van Zoost DIRECTOR & VP CORPORATE CEO CHIEF FINANCIAL OFFICER DEVELOPMENT Akiba Leisman co-founded and serves as the Cesar Gonzale
Slide 25: Thank You!
THANK YOU! i n f o @ s a i l f i s h r o ya l t y. c o m