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TRANSCRIPT
3 August 2013
Going for Gold
4 August 2013
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 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.
5 August 2013
LionGold Corp Ltd – Who we are
Asia’s Own - Global Gold Company
SGX’s first Main Board-listed gold company
Market Capitalisation: S$1.07 billion / US$845 million
Average Daily Trading Value: S$20-25 million / US$16-20 million
• MSCI Small Cap, Global + Singapore
• FTSE ST Mid Cap
• Market Vector Global Junior Gold Miners
• Supportive of global listings • New focus on resource stocks, gold -- still a ‘unique’ investment option
• Active, diversifying investor base
Mid Cap
Liquid
Index
Inclusion
SGX-listed
6 August 2013
LionGold Corp Ltd – Who we are
Asia’s Own - Global Gold Company
SGX’s first Main Board-listed gold company
Source: ShareInvestor 26 July 2013
Yesterday we closed at S$1.25
Gold Investments Index
Inclusion
Key Acquisitions
36% shareholder return in 2012
6% return ytd Board, Shareholder
Changes
7 August 2013
Group Structure – our people
- As at July 2013
Signature Metals
77%
Castlemaine Goldfields
100%
100%
18% Citigold Corporation
Operations
Brimstone Resources
Owere Mines
70%
Minera Nueva Vista
100%
Board of Directors
LionGold
Corp Ltd
Investment
Tan Sri Dato’ Nik Ibrahim Kamil
Non-Executive Chairman
Over 45 years managerial and business experience across a range of industries, including mining, media, financial, energy and infrastructure.
Asiasons WFG Financial Chairman. Actively involved in resource M&A in Asia and Africa and banking in sub-Saharan Africa.
Professionally qualified accountant with affiliations in the UK, Australia and Malaysia with experience in Australia, Southeast Asia and South Africa.
Twenty years of legal practice with a broad range of experience ranging from litigation and conveyance to corporate and commercial matters.
Accountant with extensive experience in project development, finance and business development throughout Asia.
Nicholas Ng Chief Executive Officer and Managing Director
Raymond Tan General Counsel and
Executive Director
Dato’ Md Wira Dani Abdul Daim
Non-Executive Director
Roland Selvanayagam
Independent Non-Exec Director
Dr Denis Clarke Independent
Non-Executive Director
Gary Scanlan Independent
Non-Executive Director
Lynne Ng Su Ling Independent
Non-Executive Director
Bernard Soo Independent
Non-Executive Director
Former CEO of DMG Partners and MD of Citicorp Investment Bank, Singapore. Previously head of Asia investment banking at Rabobank.
Over 30 years legal experience including 15 years with Robert Wang & Woo LLP where he was Partner and Head of the Corporate & Commercial Department.
Over 40 years experience in senior technical, financial and management roles in the mining industry globally, including with Rio Tinto and Plutonic.
Ten years with PwC, followed by more than two decades evaluating, developing, financing and administrating mining projects globally.
Acadian Mining Corporation
100%
Unity Mining
13%
Technical Committee
Audit Committee
Remuneration Committee
Current gold resource ounces assumes 100% ownership of Acadian Mining, the acquisition for which is pending
8 August 2013
New Leadership Team - Seasoned financial, legal & technical expertise
CEO & MD Nicholas Ng
Board of Directors
General Counsel Raymond Tan
COO Matthew Gill
• Also Executive Director and Company Secretary.
• Provided legal advisory to LionGold since 2007.
• Over 30 years legal experience including 15 years with Robert Wang & Woo LLP, where he was Partner, and Head of the Corporate & Commercial Department.
• 19 years in investment banking and corporate advisory in Asia-Pacific.
• Former Corporate Finance, Co-Head for DMG Partners and Corporate Finance Head for HL Bank.
• Former CFO of SGX-listed Darco Water Technologies.
• Mining engineer with over 30 years experience in all aspects of exploration and mining in Australia, India and Papua New Guinea.
• Turned around Ballarat Mine for Castlemaine and the Beaconsfield Mine, Tasmania.
• Australian Mine Manager of the Year for 3 consecutive years.
•17 years as a corporate lawyer, including acting as general legal counsel for public listed companies.
• 8 years actively involved in the setting up of iron ore and gold mining operations around the world, from Mali to Mongolia.
• Spearheading LionGold’s M&A effort globally.
• 29 years in financial markets.
• Former CEO of DMG Partners, and MD of Citicorp Investment Bank, Singapore. Previous Head of Asia Investment
Banking at Rabobank.
• Concluded numerous IPO, M&A, privatisations and other financial transactions in Asia-Pacific.
CFO Brendan Goh
Corporate & Business Development Director
Peter Chen
• Audit Committee
• Remuneration Committee
• Nomination Committee
• Technical Committee
Corporate Finance and Legal Teams
now in-house
Global Technical Team
• Matthew Gill – Australia • Andrew Lawry – Global Projects • Chris Gbyl – Ghana • Mike Clarke – Bolivia • Pending – Canada
9 August 2013
LionGold’s expansion opportunity - Consolidation of a highly fragmented sector
Gold price volatility has created a window of opportunity to access gold mining assets, including producing mines, at substantial discounts, as this sector consolidates.
FY2014
Prospects
0
200
400
600
800
1000
1200
1400
1600
1800
2000
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Jul-0
3
Jan-0
4
Jul-0
4
Jan-0
5
Jul-0
5
Jan-0
6
Jul-0
6
Jan-0
7
Jul-0
7
Jan-0
8
Jul-0
8
Jan-0
9
Jul-0
9
Jan-1
0
Jul-1
0
Jan-1
1
Jul-1
1
Jan-1
2
Jul-1
2
Jan-1
3
Jul-1
3
Gold Prices vs Junior Gold Miner Index 27 July 2003 – 26 July 2013
Dow Jones North American Select Junior Miner Gold Total Return Index
Spot Price of Gold
CONSOLIDATE Gold price volatility
Credit constraints
BOOM Rising gold prices
Easy credit
Pe
rce
nta
ge
In
cre
as
e
US
$ p
er o
un
ce
Gold prices - 26%
Junior miners - 41%
10 August 2013
Acquisition Strategy: Tweaked - Targeting scalable production
• Gold production 50-100,000 oz pa - or clear path to ramp-up, 6-12mos
• > 1 million oz gold Resource - inclusive of established reserve base - 5 years+ life-of-mine
• Organic cashflow growth - < US$1200 per ounce all-in cost
- Strong working capital position
• Up to US$100 million investment
LGC ALLURE
• Shares ≈ cash
• SGX-listed
• De-risking of assets
- Geographic
- Funding access
- Lower dilution risk
• Broader opportunities
- Bigger, global group
SCREENING
Gold producers globally
Better opportunities from April 2013
• Accelerated streamlining by gold majors - Divestment of non-core assets
• Realistic valuation expectations by juniors
• More favourable environment for negotiation, cost-cutting, capital discipline
11 August 2013
Castlemaine Goldfields,
Ballarat Mine Victoria, Australia
757,700 ounce Gold Resource at 2 tenements, 40-50,000 oz
production target, 100%-owned
Signature Metals, Owere Mines,
Konongo Ashanti Gold Belt,
Ghana
1.47 million ounce Gold Resource, 77%-owned
Acadian Mining Corporation
Nova Scotia Goldfields Canada
1.333 million ounce Gold Resource at Fifteen Mile Stream & Beaver Dam, takeover pending
1.47 million ounce Gold
Resource, 76%-owned
Minera Nueva Vista,
Amayapampa, Bolivia
1.28 million ounce Gold Resource including 787,300 Reserves,
100% owned
Citigold Corporation, Charters
Towers, Queensland, Australia
11 million ounce Gold Resource, incl 620,000 Reserves, 18%-owned
Unity Mining
Tasmania & NSW, Australia
704,000 oz Gold Resource at 3 tenements, incl 266,000 Reserves, 50,000 oz production, 13% owned
Our Key Mining Assets…Today
- 6.8 million ounces Gold Resources since March 2012 1
Projects in the Americas, Africa, Australia
1 - Assumes takeover of 100% of Acadian Mining Corporation.
12 August 2013
On track for 2014 target - 6.8 million gold ounces acquired in 18 months
Figures are extracted from previous JORC- and NI43-101-compliant announcements. Resources include Reserves. For Projects in which LionGold has a controlling stake, the Resources and Reserves are based on 100% of the Project’s holding.
For Citigold Corporation, Resources and Reserves are based on LionGold’s 18% equitable holding of the Charters Towers Project’s 11 million ounces of gold Resources, inclusive of 620,000 ounces of Reserves.
For Acadian Mining Corporation, LionGold currently holds 9% of the company. A takeover offer was made on 29 July 2013.
Company LGC
Interest Country Project
Resources (ounces)
Reserves (ounces)
Operational Target
Castlemaine Goldfields 100% Australia Castlemaine 686,000 ‒ Ongoing exploration
Ballarat 71,700 ‒ 40-50,000 oz production pa
Signature Metals 77% Ghana Konongo 1,470,000 ‒ Scoping study: end 2013
Minera Nueva Vista 100% Bolivia Amayapampa 1,280,000 787,300 19,000 oz pit by early 2015 Stage 2 review for 2017/18
Acadian Mining Corporation 100% Canada Beaver Dam 950,000 ‒
Scoping study pending Fifteen Mile Stream 383,000 ‒
Brimstone Resources 100% Australia Penny’s Find 52,300 ‒ Under review
Citigold Corporation 18% Australia Charters Towers 1,946,000 110,000 Operational team enhanced
Current 6,839,000 897,300 40-50,000 oz pa target
TARGET 2014 10,000,000 2,000,000 200,000 oz production
Unity Mining 13.2% Australia
Henty Mine 338,000 133,000 50,000 oz production
Lakeside 66,000 ‒ ‒ Dargues Reef 327,000 233,000 50,000 oz production in 2014
Significant Shareholder
13 August 2013
Exploration
Fast-tracking growth - Improving acquisition opportunities
FY2012
FY2013
FY2014
Non-core business divestment begins
Indices inclusion
Fund-raising for gold
business – S$100m
Institutionalisation of shareholder base
Unity Mining
Ounces- in-the-Ground
Signature Metals
Castlemaine Goldfields
Brimstone Resources
Citigold Corp
Minera Nueva Vista
Acadian Mining
New shareholders
Business review
Proposed change of core business to precious metals
FY2011
Production
–Today ‒
Resources 6.8m oz
Reserves 0.8m oz
Production 40-50,000 oz
Team-building
Business integration
Capital allocation
Acadian Mining
18%
13%
100%
9%
14 August 2013
Geographically diversified - Risk management
Developed – 60% Stable business environment
Infrastructure, skilled labour, funding
Can be high-cost
Australia, Canada Established global mining industry
Excellent skills-base
Many junior miners
10%
“De-risking” Resource & Investment
Friendly Emerging
Developed
Friendly Emerging – 21% Bigger opportunities
Lower entry cost
Ghana, Ashanti Gold Belt Stable, foreign-friendly
Established gold industry
Highly prospective, scalable
“Challenging” – 19% Good value
Bolivia Relationships key
Bolivia 19%
“Challenging”
BMT CTO
CGT
Australia 41%
Ghana 21%
Canada 19%
15 August 2013
End Production
Exploration
Targeting the “Sweet Spot” - Producing / near-producing assets
Mining Project Life Cycle
Pre- Feasibility Scoping Study
Feasibility Study
Extension
Va
lue Ris
k
5-10% 10-20%
Brownfields
Greenfields
Indicative Capital Allocation
70-85%
Maximise Value,
Mitigate Risk
Development
Production
16 August 2013
Shareholding Structure - Local HNW + Retail, Growing Institutional
Asian Institutional Investors
- Pension, mutual, sovereign
• Dedicated Singapore, Malaysia, ASEAN + commodity-focused funds
• Few investable metals / gold stocks, in Southeast Asia
Global Institutional Investors
- Boutique, Private Equity
• 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
• Private Equity vehicles: largely available only to HNW investors
Broadening Investor Base
Directors & Management 11.6%
Asiasons Capital Ltd
8.9%
Market Vector Junior Gold Miners ETF
6.0%
26 July 2013
SGX-listed private equity group
Institutional funds joined the shareholder roster following inclusion in various indices and via acquisitions, private placement, investment proxy to junior gold miners
Van Eck
17 August 2013
Balance Sheet Transformation - As at 31 March 2013
Assets
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current
Total Liabilities
NET ASSETS
S$m
131.3
257.2
388.4
45.5
66.6
112.1
276.3
Financial Highlights FY2013
• Nearly 10-fold rise in Net Assets to S$276m - Consolidation of 4 gold mining subsidiaries
• Nearly 10-fold rise in Shareholder Equity - Fund raising + shares issued for acquisition
• Debt gearing at 11%
• Cash and equivalents of S$47m
• Maiden gold mining revenue contribution from 3Q FY2013
Austere budgeting, rigorous cost controls, standardised reporting
18 August 2013
Castlemaine Goldfields Ltd
- 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 target 40-50,000 oz pa - Ore processing capacity of 600,000 tpa
- Ramped up from mid-2012
- Cash Operating Costs target US$830/oz in 2013
Life of mine + production enhancement through ongoing extension and exploration
Resource Gold (ounces)
Tonnage (tonnes)
Grade (g/t)
Castlemaine 686,000 2,760,000 7.7
Ballarat 71,700 263,000 8.5
Total 757,700 3,023,000 7.9
Figures indicate historical gold production at Castlemaine Goldfields’ five tenements
100% owned by LionGold from October 2012
Figures shown are based on previously quoted JORC-compliant statements
19 August 2013
Castlemaine Goldfields Ltd
- Ballarat Gold Mine is producing
Ballarat Gold Mine • Will continue to develop north • 3 diamond drill rigs underground
Ballarat Gold Mine Full year ending March 2013:- • 29,000 ounces produced1
• Grade of 6.6g/t • 2,900 metres of development • 26,300 metres of diamond drilling 1 Includes production ramp-up to mid 2012
Ballarat Gold Mine Quarter ending June 2013:- • 9,431 ounces produced • Grade of 8.3g/t • Cash Operating Cost2 of A$807/oz • Total Production Cost2 of A$1,210/oz 2 Gold Institute Standard
N
20 August 2013
Flagship Owere Mines (70% owned) holds the
Konongo Gold Project, Ghana
192 km2 concession in Ashanti Gold Belt
- 16 known gold deposits, 12 km strike
- 80 km along strike from Ashanti AngloGold’s >200,000 ounce pa, 30 million ounce Obuasi mine
Substantial untapped high-grade UG potential
- Historic production of 1.6 million ounces at 11.8 grams per tonne, mostly from UG
Now managed in-house
Signature Metals Ltd - Prioritising exploration targets
Konongo
Gold
Project
Resources1 Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
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
76.22% owned by LionGold as at April 2012 and listed on the ASX.
Figures shown are based on previously quoted JORC-compliant statements.
10 months to December 2012 Trial mining produced 8,600 ounces. A further 1,569 ozs in Q1. Suspended to conduct aggressive exploration. • 35,000m of AC and 12,000m RC to March 2013.
21 August 2013
Minera Nueva Vista - Acquisition complete
Amayapampa Project Amayapampa Gold Project, Bolivia
Resources of 1.28m oz, inclusive of 787,000 Reserves
- NI 43-101 compliant. Technical Report envisages 95,000 ozs pa
Owns the rights to 38 overlapping concessions totaling 34
km2, located 290 km southeast of La Paz
Options for an open pit facility under review;
- Smaller Stage One Plant at 1,000tpd, for 19,000 ozs pa first.
Foothold in Latin America
Amayapampa
Category Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
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
100% owned by LionGold from December 2012.
Resource is inclusive of Ore Reserves. Figures based on previously quoted NI 43-101-compliant statements
22 August 2013
Citigold Corporation Ltd - 18% strategic 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
Single largest shareholder, 2 board seats
Ripe for review, revamp
ASX-listed, 18% owned by LionGold from December 2012
Refer to www.citigold.com for JORC-compliant statements.
Indicated Resources includes Probable Reserves, and Inferred Resources includes Indicated Resources.
Charters
Towers
Category Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
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
23 August 2013
Unity Mining Ltd - 13.2% strategic stake
Unity Mining, ASX-listed
Australian gold resources totaling 731,000 oz
Annualised production targeted to double by year-end to 100,000 oz
Cash of A$39 million as at 31 Dec 12, no debt - Gross profit of A$0.8m for 6mos ending 31 Dec 12
Unity’s Primary Projects
13.2% owned by LionGold from May 2013, single largest shareholder
Project Category Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
Henty Reserves 133,000 780,000 5.3
Resources 338,000 2,060,000 5.1
Lakeside Reserves -- -- --
Resources 66,000 750,000 2.8
Dargues
Reef
Reserves 233,000 1,390,000 5.2
Resources 366,000 2,170,000 5.3
GoldStone Resources – 35%
- 3 West African exploration project, including a 602,000 ounce Ghanaian gold project locate near LionGold’s Owere Mine
- London-listed
Henty Mine, northwest Tasmania – 100%
- Established mine, producing 50,000 oz per year
- Cash cost of US$930 per ounce, 5 year+ LOM
Dargues Reef, NSW – 100%
- On target to produce 50,000 oz per year annualised by early
2014, based on recent announcements.
Figures shown are based on previously quoted JORC-compliant statements
24 August 2013
Brimstone Resources Ltd - Early to open pit production
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
- Contract mining
- Third party processing of ore concentrate
Stawell East, Central Victoria
- Within proximity to Castlemaine’s processing
facility at Ballarat
Brimstone Projects
Penny’s
Find
Resources Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
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
100% owned by LionGold from October 2012
Figures shown are based on previously quoted JORC-compliant
statements
25 August 2013
Acadian Mining Corporation Ltd - Takeover offer pending at below US$5.35 per ounce
Nova Scotia Projects Canadian tenements in Nova Scotia
Under-explored gold-bearing province - Limited modern exploration
Scoping study for open pit underway Attractive royalty portfolio
Regional consolidation potential
TSX Venture-listed.
Refer to www.acadianmining.com for NI43-101-compliant statements.
Property Gold
(ounces) Tonnage (tonnes)
Grade (g/t)
Beaver Dam
Indicated 446,000 9,080,000 1.5
Inferred 504,000 10,400,000 1.5
Fifteen Mile Stream
Indicated 383,000 7,440,000 1.6
TOTAL 1,333,000
26 August 2013
Results delivered - Going forward – the next 12-18mos
Project Acquired
Castlemaine Goldfields (100%) Signature Metals (77%)
Minera Nueva Vista (100%) Brimstone Resources (100%)
Acadian Mining (100% pending)
Acquire
“Gold in the Ground”
FY2013 FY2014 Dec 2014
Divest Green Businesses
Expanded Funding Options
Acquire Producing Assets
10 million oz Resource 2 million oz Reserve
200,000 oz pa Production
5 year Life of Mine
Ongoing
Initiatives
Shareholder Return
Minimise Volatility
Raise Transparency
Mitigate Balance Sheet Risk
Strategic Investments
Citigold Corporation (18%)
Unity Mining (13%)
Global Gold Co
36% Shareholder Return Junior Miners -16%, Gold +7%
US$
6% Shareholder Return Junior Miners -47%, Gold -21%
US$ year-to-date
Integrate resources Fortify team, alliances
New market opportunities
Organic production
growth
Divest China Business
27 August 2013
28 August 2013
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