Entree Resources Ltd · TSX:ETG
Entree Resources — Investor Presentation (June 2017)
18 slides from Entree Resources's investor presentation, June 2017
Slide 1: Advancing Towards Production
Advancing Towards Production Investor Presentation June 2017 TSX: ETG | NYSE MKT: EGI
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are n
Slide 3: About Entrée Resources Ltd.
About Entrée Resources Ltd. Flagship asset: Joint venture interest at the world-class Oyu Tolgoi underground copper-gold mine Characteristics of a royalty, benefits of a producer Low capital and development risk Entrée expects initial development construction (Shaft 4) on the Entrée/Oyu Tolg
Slide 4: Restructured: Unlocking value
Restructured: Unlocking value May 2017 - Entrée spun out its US assets into Mason Resources Corp. (TSX:MNR) and rebranded to Entrée Resources Ltd. The spinout unlocks value and focuses the assets in two geographically and strategically distinct companies Entrée’s primary focus is the Entrée/Oy
Slide 5: Entrée/Oyu Tolgoi JV Structure
Entrée/Oyu Tolgoi JV Structure Entrée Entrée 20%* carried interest in the Resources Entrée/Oyu Tolgoi JV 20-30% Entrée debt financed at prime +2%, only repayable to OTLLC Entrée/Oyu from 90% of free cash flow Tolgoi JV Entrée not responsible for Hugo North Extension & Heruga deposits upfront dev
Slide 6: Oyu Tolgoi: Entrée/Oyu Tolgoi JV Deposits
Oyu Tolgoi: Entrée/Oyu Tolgoi JV Deposits Entrée/Oyu Tolgoi JV: integral part of the world-class Oyu Tolgoi copper-gold mine The Entrée/Oyu Tolgoi JV property includes the Hugo North Extension (HNE) and Heruga porphyry deposits, plus Significant exploration potential in an ~26 km long trend of por
Slide 7: Entrée/Oyu Tolgoi JV Deposits: High grade and long life
Entrée/Oyu Tolgoi JV Deposits: High grade and long life Hugo North Extension consists of Lift 1 & Lift 2 underground block caves A Longitudinal Section A-A’ A’ Highest grades at Oyu Tolgoi The Entrée/Oyu Tolgoi JV property contains: ~10% of all M+I Au oz and ~62% of all Inferred Au oz at the entir
Slide 8: Entrée/Oyu Tolgoi JV: Hugo North Extension Update
Entrée/Oyu Tolgoi JV: Hugo North Extension Update Hugo North Deposit Lift 1 underground development is underway, including HNE TRQ reports Shaft 1 complete; Shaft 2 to be completed in 2017; Shaft 5 to be completed early 2018; haulage decline started Entrée expects Shaft 4 (on the Entrée/Oyu To
Slide 9: Entrée: An attractive risk profile
Entrée: An attractive risk profile Characteristics of a royalty, benefits of a producer Manageable project development risk with Rio Tinto as operator OTLLC carries almost all of the financial burden and execution risk on the Oyu Tolgoi underground project, including the Entrée/Oyu Tolgoi JV pro
Slide 10: Entrée Value: Significant Upside Potential
Entrée Value: Significant Upside Potential No better comparison for Entrée than an Oyu Tolgoi stakeholder EV/Resources (June 14, 2017) Turquoise Hill Entrée Resources Estimated Enterprise Value(1) (US$ M) $7,086.0 $55.3 Common Shares Outstanding 2.01 B 172.9 M CuEq(3) – Resources (B lbs) 76.903(2) 6
Slide 11: Entrée: Maximizing potential
Entrée: Maximizing potential Near term priorities include: Completion of the updated Entrée Technical Report to disclose preliminary economics for the Entrée/Oyu Tolgoi JV’s share of Hugo North Lift 2 and Heruga Educating market about risk profile Aggressively creating opportunities to cryst
Slide 12: Company Overview
Company Overview Market Shares Treasury Listings Capitalization Outstanding TSX: ETG ~US$8.5 million ~C$105 million ~173 million NYSE MKT: EGI (as of June 1, 2017) (as of June 1, 2017) (as of June 1, 2017) Share Structure (June 1, 2017) Shares Shares Issued and Outstanding 172,902,967 Options 8,305,
Slide 13: Experienced Leadership Team
Experienced Leadership Team Senior Management Team Directors Stephen Scott Lord (Michael) Howard of Lympne President and Chief Executive Officer Chairman Duane Lo James Harris Chief Financial Officer Robert Cinits Mark Bailey Vice President, Corporate Development Susan McLeod Alan Edwards Vice Presi
Slide 14: Appendix
Appendix
Slide 15: Oyu Tolgoi: Location
Oyu Tolgoi: Location Oyu Tolgoi is one of the world’s largest new copper-gold mines and is located in the South Gobi region in Mongolia, approx. 550 km south of the capital and 80 km north of the Mongolia-China border. Source: Turquoise Hill Resources Entrée Resources | Investor Presentation | June
Slide 16: Entrée/Oyu Tolgoi JV Mineral Resources & Reserves
Entrée/Oyu Tolgoi JV Mineral Resources & Reserves* Mineral Reserves Hugo North Extension Heruga Probable Reserves** 35 Mt @ 1.59% Cu, 0.55 g/t Au --- Mineral Resources Hugo North Extension Heruga Measured and Indicated 129 Mt @ 1.65% Cu, 0.55 g/t Au --- Resources** (1.99% CuEq)*** 1.7 billion tonnes
Slide 17: Entrée/Oyu Tolgoi JV: Multiple development options
Entrée/Oyu Tolgoi JV: Multiple development options Long life, high grade with significant expansion potential Includes Entrée/Oyu Tolgoi JV mineralization *Source: Base diagram from 2016 Oyu Tolgoi Technical Report, Turquoise Hill Turquoise Hill’s current Base Case 40 Mtpa Potential to achieve 5
Slide 18: Advancing Towards Production
For more information, please contact: Stephen Scott President & Chief Executive Officer [email protected] Advancing Towards Production David Jan Investor Relations [email protected] 604.687.4777 (office) 1.866.368.7330 (toll free) www.EntreeResourcesLtd.com TSX: ETG | NYSE MKT: