going for gold - listed companyliongoldcorp.listedcompany.com/misc/slides_151112.pdf · november...
Post on 07-Feb-2018
220 Views
Preview:
TRANSCRIPT
1
November 2012
Going for Gold
2 November 2012
Disclaimer
This document may contain statements that constitute “forward-looking statements”, including, but not limited to, statements
relating to the implementation of strategic initiatives, and other statements relating to our future business development and
economic performance. While these forward-looking statements represent our judgments and future expectations
concerning the development of our business, a number of risks, uncertainties and other statutory requirements may render
actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1)
general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities
markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technology developments, (5) changes in
the financial position or creditworthiness of our customers, obligors and counterparts, and changes in the developments in
the markets in which they operate, (6) legislative developments, (7) management changes and changes to our business
group structure and (8) other key factors that may adversely affect our business and financial model.
We are not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking
statements whether as a result of new information, future events or otherwise. The technical and financial information
presented are best estimates of management and are not JORC, SAMREC or NI43-101 compliant unless otherwise stated.
Investors are cautioned not to place undue reliance on this information and not rely solely on the information presented for
purposes of making investment decisions. This material may not be reproduced, distributed or transmitted to any other
person or incorporated in any way into another document or other material without the prior written consent of LionGold.
3 November 2012
LionGold Corporation Ltd
Asia’s Own Global Gold Company
Source: ShareInvestor 15 November 2012
Share price: S$1.06
52wk high/low: S$0.83/1.300
Shares in issue: 915.5m
Bloomberg ticker: LIGO SP
Market Value: S$974m / US$796m
Average Daily Trading Value: S$20-25m / US$16-20m
• MSCI Small Cap, Global + Singapore
• FTSE ST Small Cap - Reserve list for Mid-Cap
• Supportive of global listings
• New focus on resource stocks
• Active, diversifying investor base
Mid-Cap
Liquid
Index
Inclusion
SGX-listed
SGX’s only Main Board-listed gold company
Gold
Investment
Prioritising
Business
Index
Inclusion
Key
Acquisitions
New Inst’l
Shareholders
4 November 2012
LionGold Corp - Going for Gold
Dynamic, Expanding Business • Gold mining focus, from 2011
• Initial growth acquisition-led
- Further 4 - 6 under review
SGX Fund-Raising Advantage
• Supportive bourse
- Most liquid ASEAN market
- Attracts foreign listings
- Focus on mining companies
• Singapore benefits
- Global/regional investment hub
- Building up gold activities
• Premium pricing - Listed gold companies – only 2
Ability to acquire
scalable junior mining assets
at attractive discounts
LionGold
1
Resources oz
Reserves oz
Production
oz pa2
Current 2,280,000 - 55-65,000
Announced 1,280,000 787,300 -
IN-HAND 3,560,000 787,300 55-65,000
TARGET 2014 10,000,000 2,000,000 120,000
(1) Based on publicly available JORC and NI 43-101 statements Resources stated include Reserves
(2) Annualised target for end 2012
Plus Strategic Investments
Citigold (10%) 11,000,000 620,000 8,000
5 November 2012
Key Mining Assets…Today
Existing project Potential project
AFRICA
• Signature Metals (76%)
Ashanti Gold Belt, Ghana
AUSTRALIA • Castlemaine Goldfields Central Victoria
• Brimstone Resources, Western Australia, Victoria
• Citigold Corp (10%)
AMERICAS • Republic Gold’s Minera Nueva Vista Bolivia (pending)
- 3 Gold Project acquisitions since March 2012 at US$51/oz
6 November 2012
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
-100%
0%
100%
200%
300%
400%
500%
Oct-
02
Oct-
03
Oct-
04
Oct-
05
Oct-
06
Oct-
07
Oct-
08
Oct-
09
Oct-
10
Oct-
11
Oct-
12
Pe
rce
nta
ge
In
cre
as
e
Dow Jones North American Select JuniorGold Total Return Index
Spot Price of Gold
Opportunity: Junior gold miners - Trading at substantial discounts
Cost & time overruns
Discovery + production gaps
Risk adversity: banks and shareholders
Funding
Shortfall
BOOM Rising gold prices
Easy credit
CONSOLIDATE Stagnant gold prices
Credit constrained
Gold Prices vs Junior Miner Index Oct 2002 – Oct 2012
7 November 2012
Acquisition Strategy - Accelerate Value Creation
• EV < US$50 oz
• Investment up to US$100m
• > 1m gold resource oz
• Turnaround: 6-18 months
- Financial relief
- Late-stage exploration thru
early stage production
- Technical support
• Low / no debt
• Willing seller
• Competent management
• Assets vs public companies
LGC ALLURE
• Shares ≈ cash
• SGX-listed
• De-risking of assets
- Geographic
- Funding access
- Lower dilution risk
• Broader opportunities
- With a bigger, global group
PRIORITY SCREENING
Distressed junior miners globally
8 November 2012
Development
End Production
Mining Project Life Cycle
Extension
Valu
e Ris
k
5-10% 10-20%
Targeting the “Sweet Spot” - Assets-in-the-Ground
Indicative Capital Allocation
Maximise Value,
Mitigate Risk Pre-
Feasibility
Exploration
Feasibility Study
Scoping Study
Production
Brownfields
Greenfields
70-85%
9 November 2012
Balancing the Business - Risk Management
Developed Stable business environment
Infrastructure, skilled labour, funding
Can be high-cost
Australia Established global mining industry
Excellent skills-base
Many junior miners
45%
10%
Geographic “De-risking”
Friendly Emerging
Developed
“Challenging”
Ghana
42% Australia
53%
Bolivia 5%
BMT CTO
CGT
Friendly Emerging Bigger opportunities
Lower entry cost
Ghana, Ashanti Gold Belt Stable, foreign-friendly
Established gold industry
Highly prospective, scalable
“Challenging” Cheap
Bolivia Relationships key
10 November 2012
Enhancing the Business - Balance & Prioritise
Balance Mine Profile
Ratio 1:20:100
1m oz pa Production
20m oz Reserves
100m oz Resources
Target 10-year Life of Mine
Operationally Prioritised
Community
Environment, Health, Safety
Education & Training
P r o d u c t i o n E f f i c i e n c y
11 November 2012
Results delivered - Going forward
Core Projects
Signature Metals
Castlemaine Goldfields
Brimstone Resources
Minera Nueva Vista
Acquire
“Gold in the Ground”
Fortify
the Business
2012 2013 2015
Divest
Non-Core Assets
Raise production
Increase ozs
Integrate resources
Grow team, alliances
Expanded Funding Options
Dual listing Project IPO
Project financing
Selective
Acquisitions
Asia’s #1
Gold Co
Ongoing CG
Initiatives
Broaden Institutional Shareholder Base
Raise Transparency
Mitigate Shareholder Risk
Strategic Investment Citigold Corp (10%)
Progressing towards
Top 20
Global Gold Co
Missing – production / resources in the ground target/ LB
12 November 2012
Optimise Funding : Projects - Maximise Growth, Protect LGC Shareholders + Balance Sheet
LGC Market cap
~ US$780m
Grow • Bankable assets
• Gold production
• Fee income
Execution of 100 day &
2 year business plans
Fund • Project financing
• IPO
• Structured options
Mitigate shareholder dilution,
protect LGC’s balance sheet
Invest
Undervalued gold interests
• List cos
• Privately-held
• Assets
Up to 20% of share capital
per annum
Project
Development
Strategy
Self-fund
Grow market cap
13 November 2012
Shareholding Structure - Local HNW + Retail, Growing Institutional
Asian Institutional Investors
- Pension, mutual, sovereign
• Dedicated Singapore, Malaysia, ASEAN + commodity-focused funds
• Limited choice of investable commodity stocks, in SE Asia and/or
offering gold exposure
Global Institutional Investors
- Boutique, PE
• Diminished selection of mid-cap gold companies
• Few Asian-listed options
Retail Investors
- Singapore, Malaysia, HK/China
• Gold Bugs, news flow sensitive
• Limited investment options vs US, UK, Australia, Canada
• PE vehicles: only available to HNW investors
Broadening Investor Base
Asiasons Capital Ltd (SGX-listed private equity group; early investor)
Dato’ Md Wira Dani Bin Abdul Daim (Non-Executive Director)
9.0%
6.4%
Van Eck: Market Vector Junior Gold Miners ETF
5.8%
Nomura International
4.3%
Macquarie Bank
5.2%
Tan Sri Dato’ Nik Ibrahim Kamil (Executive Chairman & Group CEO)
4.4%
2012
Additions
14 November 2012
Healthy Balance Sheet - As at 30 September 2012
Assets
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current
Total Liabilities
NET ASSETS
S$m
143.8
159.4
303.2
65.3
50.5
115.8
187.4
Convertible Bond – US$23m
• 9% coupon, due 2015
• Placed with institutional investors
• Convertible into 24.8m new LGC shares at S$1.158
Warrants - 1:4 – S$14m • Up to 224m warrants
• Issue price of 6.5¢, strike price of 110% VWAP
• 1:1 exchange into new LionGold shares
• Valid for 3 years from issue, SGX-listed
• Raise up to S$14.3m + ~S$300m
Placement – S$44m • 42m new shares at S$1.056 each
+ 42m detachable warrants at 6.5¢
• New shares to rank pari passu with existing shares
• Raise up to S$47m + ~S$40m Oct
2012
S
ep
2012
M
ay
2012
Non-core assets divestment to raise a further S$22m over next 6mos
15 November 2012
Group Structure
Tan Sri Dato Nik Ibrahim Kamil – Executive Chairman, CEO
Dato’ Md Wira Dani Bin Abdul Daim – Non-Executive Director
Raymond Tan Soo Khoon – Non-Executive Director
– Company Secretary
Roland Selvanayagam – Independent Non-Executive Director
Dr Denis Clarke – Non-Executive, Independent Director
Gary Scanlan – Non-Executive, Independent Director
Lynne Ng Su Ling – Non-Executive, Independent Director
Bernard Soo Pyuong Yii – Non-Executive, Independent Director
LionGold Corp Ltd
Signature Metals
76%
Strategic
Investments
Castlemaine Goldfields
100%
Brimstone Resources
100%
10% Citigold Corp
Operations
Board of Directors
Raymond Tan Soo Khoon – Chairman
Adrian di Carlo – Company Secretary
Roland Selvanayagam – Non-Executive Director
Dr Denis Clarke – Non-Executive Director
Peter Chen –Executive Director
Gary Scanlan – Non-Executive Chairman
Matthew Gill – Managing Director, CEO
Peter Lester – Non-Executive Director
Ray Muskett – Director
Greg Lee – Director, Founder
Joe Graziano – Company Secretary, CFO
John Foley – Non-Executive Chairman
Mark Lynch – Managing Director, CEO
Dr Brian White –Executive Director
Kim Koh – Non-Executive Director
Gunjan Goel – Non-Executive Director
22 Directors Group-wide
16 November 2012
Key Corporate Leadership Team - Gold Mining Division, Management
TAN SRI DATO NIK IBRAHIM KAMIL Executive Chairman & Group CEO – LionGold Corp
Successful Malaysian entrepreneur with over 45 years of managerial and business experience across a wide
spectrum of industries, including mining, petroleum, media and banking.
MATTHEW GILL Group Chief Operating Officer – LionGold Corp
CEO & MD – Castlemaine Goldfields
Mining engineer with over 30 years experience in all aspects of exploration, mine development, commissioning
and operation. He has worked throughout Australia as well as Papua New Guinea and India. A three-time winner
of the Australian Mining Manager of the Year Award, Mr Gill’s strong technical and management background is
well-recognised. He was responsible for the turnaround of Castlemaine’s Ballarat Mine and the Beaconville Mine
in Tasmania.
PETER CHEN Director, Corporate & Business Development – LionGold Corp
Director – Signature Metals
Over 17 years of experience as a corporate lawyer. He has been actively involved in the acquisition and setting up of iron
ore and gold mining operations around the world, from Mali to Mongolia.
17 November 2012
Key Corporate Leadership Team - Gold Mining Division, Directors
RAYMOND TAN Non-Executive Director , Company Secretary – LionGold Corp
Chairman – Signature Metals
Currently a senior partner and head of the corporate and commercial department of Robert Wang & Woo LLP with
extensive experience acting for public listed companies in their corporate and corporate finance activities.
DR DENIS CLARKE Independent Non-Executive Director, Technical Committee Member – LionGold Corp
Independent Non-Executive Director – Signature Metals
Over 40 years of experience in senior technical, financial and management roles in the mining industry globally, including
positions with Rio Tinto and Plutonic Resources. He has a Ph.D. in Geology from Stanford University.
Dr Clarke is currently a non-Executive Chairman of both Hill End Gold Ltd and Cullen Resources Ltd in Australia.
GARY SCANLAN Independent Non-Executive Director, Technical Committee Member – LionGold Corp
Non-Executive Chairman – Castlemaine Goldfields
Strong mining finance and accounting background, having worked with Price Water House for ten years. This was
followed by more than two decades of direct experience in the evaluation, development, financing and administration of
mining projects worldwide. He is also a Non-Executive Director of Red 5 Ltd, the latter being an ASX-listed company with
gold mining interests in the Philippines.
18 November 2012
On track for 2014 target
Project 1
Resources (oz)
Reserves (oz)
Production Target end 2012
(oz annualised)
Completed acquisitions 2,280,000 55-65,000
Signature Metals 1,470,000 - 15,000
Brimstone Resources 52,300 -
Castlemaine Goldfields 757,700 40-50,000
Announced, pending completion 1,280,000 787,300
Minera Nueva Vista 1,280,000 787,300 -
TOTAL IN-HAND 3,560,000 787,300 55-65,000
TARGET 2014 10,000,000 2,000,000 120,000
Strategic Investment
Citigold Corporation 2 (10%) 11,000,000 620,000 8,000
(1) Figures are extracts from previous JORC-compliant announcements Resources stated include Reserves
(2) Resource and Reserves have not been independently verified by LionGold Corp
19 November 2012
Flagship Owere Mine (70% owned) has
the Konongo Gold Project, Ghana
192 km2 concession in Ashanti Gold Belt
- 16 known gold deposits, 12 km strike
- 40 km along strike from Ashanti AngloGold’s 300,000 oz pa, 29m ounce Obuasi mine
Mining 1,000 oz per month
- Up from 500 oz pre-acquisition
- Progressed from production from tailings to open pit oxide ore
Substantial untapped high-grade UG potential
Signature Metals Limited 1 - World class mine in the making
(1) ASX-listed, 76.22% owned by LionGold from 28 March 2012
(2) Refer to www.signaturemetals.com.au for full JORC-compliant statements
Resources12 Gold (oz)
Tonnage (tonnes)
Grade (g/t)
Konongo
Gold
Project
Measured & Indicated 779,600 13,100,000 1.9
Inferred 687,100 10,500,000 2.0
Total 1,466,700 23,600,000 2.0
20 November 2012
Castlemaine Goldfields Ltd 1
- High grade nuggety ore
Excellent facilities in established gold region, Central Victoria, Australia
Five concessions in total with JORC Resources
in Ballarat (producing) and Castlemaine
Ballarat Mine production at 40-50,000 oz pa - Ramp up initiated Sept 2011
- Further reduction in costs and improvement in gold recovery over the next 6-9 months
Life of mine + production enhancement through ongoing exploration
(1) ASX-listed, 100% owned by LionGold as at 30 September 2012
(2) All Resources are Inferred. Refer to www.cgt.net.au for full JORC-compliant statements
Resource 2 Gold (oz)
Tonnage (tonnes)
Grade (g/t)
Ballarat 71,700 263,000 8.5
Castlemaine 686,000 2,760,000 7.7
Total 757,700 3,023,000 7.9
Figures indicate historical gold production at Castlemaine’s 5 tenements
21 November 2012
Brimstone Resources Limited 1
- Early to open pit production
(1) Australian public company 100% owned by LionGold as at 30 September 2012
(2) Refer to www.brimstoneresources.com.au for JORC-compliant statements
Prospective tenements in Western Australia
and near Castlemaine in Victoria
Penny’s Find Project (aka “Golden Feather”)
- Near mining town of Kalgoorlie
- 36 mining leases covering 59 km2
- Resources of 52,300 oz, based on prelim drilling
Scope to initiate open pit operations at
Penny’s Find within 12 months.
- Contract mining initially
- Third party processing of ore concentrate
Stawell East, Central Victoria
- Within proximity to Castlemaine’s processing facility
at Ballarat
Penny’s Find Project
Stawell East
Penny’s Find
Resources12 Gold (oz)
Tonnage (tonnes)
Grade (g/t)
Penny’s Find
Measured 11,200 79,000 4.4
Indicated 16,900 132,000 4.0
Inferred 24,200 103,000 7.3
Total 52,300 314,000 5.2
22 November 2012
Citigold Corp Ltd1 - Strategic 10% Investment
Charters Towers Project
Charters Towers tenements near
Townsville, Queensland
“Australia’s highest grade gold field” - 56 mineral holdings spanning >1,500 km2
- Significant Life of Mine potential, >10 years
Ore processing capacity of 340,000 tonnes
Ripe for review, revamp
(1) ASX-listed, 10% owned by LionGold, announced 28 June 2012
(2) Refer to www.citigold.com for JORC-compliant statements.
Indicated Resources includes Probable Reserves, and Inferred Resources includes Indicated Resources.
Figures not independently verified by LionGold Corp.
Category 2 Gold (oz)
Tonnage (tonnes)
Grade (g/t)
Charters
Towers
Reserves
Probable 620,000 2,500,000 7.7
Resources
Indicated 780,000 3,200,000 7.6
Inferred 11,000,000 25,000,000 14
Charters Towers
23 November 2012
Republic Gold 1 Proposal to Buy Minera Nueva Vista
Amayapampa Project
Amayapampa Gold Project, Bolivia
Resources (including Reserves) of 1.28m oz.
- NI 43-101 compliant
MNV owns the rights to 38 overlapping
concessions totaling 34 km2, located 283km
southeast of La Paz.
An initial study established the commercial
potential of a 80,000 oz pa mine. Merits of a
smaller, open pit facility with a lower initial capital
cost is being considered.
(1) ASX-listed, acquisition pending due diligence
(2) Mineral Resource is inclusive of Ore Reserves. Refer to www.republicgold.com for NI 43-101-compliant statements
Category 2 Gold (oz)
Tonnage (tonnes)
Grade (g/t)
Amayapampa
Reserves
Probable 787,300 18,900,000 1.3
Resources
Indicated 979,637 26,160,000 1.2
Inferred 300,363 8,750,000 1.1
Total Resources 1,280,000 34,910,000 1.2
24 November 2012
LionGold Corp Ltd 59 Mohamed Sultan Road
Sultan Link 02-08
Singapore 238999
T: +65 6690 6860
F: +65 6690 6844 www.liongoldcorp.com
Thank you
w w w . l i o n g o l d c o r p . c o m
top related