Serabi Gold PLC · LSE:SRB
Serabi Gold — PDAC Conference 2020
28 slides from Serabi Gold's conference presentation, Feb 14, 2020
Slide 1: PDAC Conference 2020
PDAC Conference 2020 Near-Term Margin Expansion and Production Growth to 100,000 oz
Slide 2: Disclaimer
Disclaimer This presentation, and any ancillary documents relating to it, any oral presentation and any question or answer session (together, the "Presentation'') have been prepared and issued by Serabi Gold pic (the "Company"). This Presentation is being supplied to you solely for information purpo
Slide 3: Reasons to invest
Reasons to invest Highly executable pathway to becoming a ~100,000 ounce Brazilian-focused gold producer 1 2 3 4 Stable cash flow & Low-cost, near-term Medium-term Significant long-term production growth development opportunity upside • ~45,000 to 46,000 oz of annual • Recently installed ore-sorting
Slide 4: Corporate overview
Corporate overview Capital Structure Tickers LSE:SRB, TSX:SBI Share Price (February 12, 2020) £0.89 / C$1.44 Ordinary Shares 58.9m Fully Diluted Shares (excl. convertible loan) 61.5m Market Capitalization (Feb 12, 2020) £51.1m / US$66.8m Balance Sheet (as of December 31, 2019) Cash US$14.3m Bank Deb
Slide 5: Gold producer in mining-friendly Para State, Brazil
Gold producer in mining-friendly Para State, Brazil Regional setting Palito Complex • ~75,000 Ha land package in the gold-rich Tapajos district • Two high-grade orebodies – Palito and Sao Chico • Under-explored mineral region with significant historic artisanal • 2019 production of 40,101 ozs produc
Slide 6: Pathway to 100,000 oz/yr gold producer
Pathway to 100,000 oz/yr gold producer Near-term, low-capex production growth • Ore sorter starts operating Q1 2020 at the Palito Complex • Replacing ~100 tpd of processed mine dilution contained in existing plant feed with ore • Increasing gold production without increasing milling capacity • Expec
Slide 7: Location – Serabi, the first and only hard rock miner in the Tapajos
Location – Serabi, the first and only hard rock miner in the Tapajos • Serabi’s assets lie in the gold rich Tapajos district, a major under-explored mineral region with significant historic artisanal production reported to be in excess of 30 million ounces • As the first and only hard rock miner in
Slide 8: Current operations – the Palito Complex
Current operations – the Palito Complex • Consistent historic annual gold production of 37koz - 40koz • Selective mining ~500 tpd at 7-9 g/t Au. Dry mine and excellent ground conditions • Personnel with extensive underground selective mining experience • Processing involves Cu-Au concentrate flotati
Slide 9: The Coringa Project – a second Palito Complex
The Coringa Project – a second Palito Complex • A high-grade ‘Palito Complex look-a-like’ located 200km south • Camp, lab, workshops and access roads all newly built • 750 tpd process plant at site, being renovated and awaiting construction permit • Permitting status: • Preliminary approval of EIA N
Slide 10: Coringa – PEA summary
Coringa – PEA summary Base Case Units US$1,350 US$1,450 US$1,275 Pre tax NPV (5%) US$m $55.7 $71.3 $92.2 Pre tax NPV (10%) US$m $37.2 $49.4 $65.8 Post tax NPV (5%) US$m $47.3 $61.3 $79.6 Post tax NPV (10%) US$m $30.7 $41.7 $56.1 Post tax IRR % 31% 37% 46% • Mine Life of approximately 9 years • Life
Slide 11: Key milestones
Key milestones 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Palito Complex Introduction of ore sorter to maximise plant utilisation Exploration drilling esp. Sao Chico and Cinderella sheer Coringa Permitting Approval of EIA amendment Public hearing held on Feb 6th Issue of LP – Licencia Previa
Slide 12: Sustaining mineral reserves and growing resources
Sustaining mineral reserves and growing resources • Over 305,000 ounces of gold production since 2005 • Reserve levels maintained at each resource restatement (circa four years of production) • Ongoing exploration programmes to expand resource base 12
Slide 13: Mine site and regional growth
Mine site and regional growth 13
Slide 14: Exploration status at Palito and Sao Chico
Exploration status at Palito and Sao Chico • Approximately 50,000 Ha of tenement holdings in the Palito Complex • Airborne EM/Mag (VTEM) coverage over much of the holdings • Ground IP completed on only 15% of VTEM area • Approximately 130 km of ground IP completed at Sao Chico • Un-tested area has a
Slide 15: Airborne survey
Airborne survey • The entire tenement has now been covered with airborne geophysics • Magnetics (shown here) show a major E-W trend, with a NE-SW trending splay that coincides with the IP anomaly to the south of Sao Chico 15
Slide 16: Palito - a 1 km long resource with 4 km potential
Palito - a 1 km long resource with 4 km potential 16
Slide 17: Palito orebody - a vein swarm to support resource growth
Palito orebody - a vein swarm to support resource growth • Palito started on 2 veins underlying a former artisanal mine – since going underground, the deposit now has over 26 veins • Sub-vertical veins, closely spaced, typically 0.5m - 1.0m wide with in-situ grades of ~13g/t Au 17
Slide 18: Palito - terrestrial geophysics (IP) supports the 4km potential
Palito - terrestrial geophysics (IP) supports the 4km potential • Anomalous IP over much of the 4 km mineralisation corridor • Historic artisanal activity also overlies much of the 4 km trend • The vein swarm that comprises the Palito veins is clearly picked up over a 4 km strike length, culminating
Slide 19: Ground geophysics (IP) at Sao Chico reporting excellent results
Ground geophysics (IP) at Sao Chico reporting excellent results • IP programme has been completed • IP supports the trend to the west, and shows a very promising NE-SW trend south of the Mining Licence • This IP anomaly to the south has been heavily worked by artisanal mining – a very promising indi
Slide 20: Excellent potential for new discoveries at Coringa
Excellent potential for new discoveries at Coringa • Approximately 15,000 Ha of tenement holdings • Coringa is comprised of 8 zones, 7 of which lie on the same structural trend • Palito started with 3 veins, now 26 veins identified from underground exploration. With the same geology we expect the sa
Slide 21: Summary
Summary Consistent production and cash flow from existing operations Coringa to add incremental ~38koz per annum production with potential synergies and significant existing infrastructure Potential to add additional 20+koz per annum production organically by proving up discoveries at Palito / Sao C
Slide 22: Appendix
6 ¢ SERABI GOLD Appendix
Slide 23: Key Board and Management
Key Board and Management Mike Hodgson (CEO) – over 30 years worldwide Mel Williams (Non-exec Chairman) –over 40 years of financial experience, focused on operating and building small to experience, most recently CFO of Brigus Gold (formerly Apollo medium sized underground mines. Speaks Spanish and b
Slide 24: Key operational statistics
Key operational statistics Consistent gold production (koz) Tonnes mined and grade (kt and g/t) 10.3k 10.2k 10.2k 10.2k 49.0kt 9.9k 9.7k 9.6k 9.3k 9.5k 9.2k 44.3kt 44.8kt 44.8kt 44.1kt 41.7kt 41.3kt 42.7kt 42.6kt 8.1k 8.1k 39.7kt 36.9kt 36.1kt 10.12 9.80 7.80 8.25 7.49 8.12 7.45 7.47 7.14 6.23 6.72
Slide 25: Strong case for re-rating
Strong case for re-rating s id SERABI GOLD EV/ Resource (USS$/o0z) EV/Reserves (US$/o0z) Resource grade (g/t 120 450 9 400 8 100 350 7 80 300 6 250 5 60 200 4 40 150 3 100 2 20 i 5 | [] 0 0 0 Serabi Gold Lower Median Upper Mean Serabi Gold Lower Median Upper Mean Serabi Gold Lower Median Upper Mean
Slide 26: Key financial information
Key financial information Summary Financial Information for Recent Periods 9 months to 12 months to 12 months to 12 months to 12 months to 12 months to 30 31 December 31 December 31 December 31 December 31 December September 2018 2017 2016 2015(1) 2014(2) 2019 US$000’s US$000’s US$000’s US$000’s US$
Slide 27: Key shareholders
Key shareholders “Fratelli has been a long-term supporter of Serabi and its Eldorado Gold, 2.89% management and sees significant UK, 16.70% value in the ambitions to grow and develop the Company”. Canada, 4.42% Nicolas Bañados Greenstone, 25.27% MD Private Equity of Fratelli Investments Directors, 2
Slide 28: Contact us
Contact us For further information please contact us: SERABI GOLD plc Mike Hodgson Chief Executive Mercury House 117 Waterloo Road London, SE1 8UL United Kingdom tel +44 (0) 20 7246 6830 fax +44 (0) 20 7246 6831 email [email protected] www.serabigold.com 28