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Q4 & Year End 2011 Lake Shore Gold Conference Call March 27, 2012TSX, NYSE Amex: LSG
Lake Shore Gold
Certain statements in this presentation relating to the Company's expected production levels, production growth, exploration activities,potential for increasing resources project expenditures and business plans are "forward looking statements" or "forward looking
Forward Looking Statements potential for increasing resources, project expenditures and business plans are forward-looking statements or forward-lookinginformation" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under theUnited States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does notintend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements representmanagement's best judgment based on current facts and assumptions that management considers reasonable, including that operating andcapital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportationor utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete, , p g , pprojects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identifiedmineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reachthe same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any future results, performance or achievementsexpressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or incurrency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-lookingt t t M i f ti b t i k d t i ti ff ti th C d it b i i il bl i th C ' t tstatements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent
Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com,or the Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.
QUALITY CONTROLLake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Controlsamples consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and thecertified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have beencompleted using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold onexploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fireassayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects. NQ size drill coreis saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core istransported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS ChemexAssay Laboratory in Vancouver B C ALS Chemex is an ISO 9001 2000 registered laboratory preparing for ISO 17025 certificationAssay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.
QUALIFIED PERSONThe Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamonddrilling projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardioptioned property are Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for theTimmins deposit and Thunder Creek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of theCompany’s properties. As QPs, Messrs. Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of thescientific or technical information for their respective properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick andGreen are employees of the Company.
2
LSG: Good Progress in 2011
Doubled production to 86,565 ounces poured
Finished year strong with >26 000 ozs poured inFinished year strong with >26,000 ozs poured in Q4/11
D bl d f d tiDoubled resources for second consecutive yearo Initial resources for Thunder Creek, Fenn-Gib,
V l d M lhillVogel and Marlhill
Commenced 50% mill expansion – remains on track
Continued to achieve significant exploration success
3 *Examples of Forward Looking Statements.
W k l f d i i i d illi it
LSG: Turning to 2012* Work plan focused on ramping up mining and milling capacity to 3,000 tonnes per day by late 2012
Work at Timmins West Mine and Bell Creek in first half 2012Work at Timmins West Mine and Bell Creek in first half 2012 focused on development, ore delineation, stope preparation
Mill expansion advancing towards completion by late 2012Mill expansion advancing towards completion by late 2012
2012 guidance: 85,000 to 100,000 ounces, weighted to second half of year
Strong growth in 2013
Cash costs in 2012 targeted at US$825 to US$875 per ounceg $ $ p
First Quarter 2012: expected production of approx. 15,000 ounces, cash costs US$1,450 per oz, to improve as
4 *Examples of Forward Looking Statements.
production ramps up
LSG: Turning to 2012* Capital expenditures - $93M Timmins West Mine, $67M mill expansion and other mill improvements
E dit t B ll C k l ti t b dExpenditures at Bell Creek, exploration to be assessed as year progresses
Company funded to develop and bring Timmins West Mine toCompany funded to develop and bring Timmins West Mine to 3,000 tpd (including both mining and milling)
Assessing opportunities to strengthen balance sheet to g pp gsupport other expenditures
5 *Examples of Forward Looking Statements.
LSG: First Quarter 2012 Highlights
Updated resource for Timmins West Mine Indicated: 1,122,500 ozs (5,826,000 tonnes @ 5.99 gpt)Inferred: 791,500 ozs (4,272,000 tonnes @ 5.76 gpt)
Updated resource for Gold River TrendUpdated resource for Gold River TrendTotal ounces nearly tripled and grade doubledIndicated: 117,400 ozs (690,000 tonnes @ 5.29 gpt)( @ gp )Inferred: 1,027,800 ozs (5,273,000 tonnes @ 6.06 gpt)
Timmins West Mine PEATimmins West Mine PEA Demonstrates potential for substantial cash flows, attractive returns and favourable economics
6 *Examples of Forward Looking Statements.
LSG: 2011 Operating Highlights
Q4/11 2011G ld d 26 550 86 565Gold poured 26,550 86,565
Total tonnes 186,231 671,467
Average grade 4 03 4 34Average grade 4.03 4.34
Total Production 24,809 82,585
Cash Costs* ($/t) (Timmins Deposit) 102 95
*Denotes a non-GAAP measure
Cash Costs ($/t) (Timmins Deposit) 102 95
Cash Costs* (US$/oz) (Timmins Deposit) 762 811Denotes a non-GAAP measure.
7
LSG: 2011 Financial Highlights Q4/11 2011Q4/11 2011
Gold sold (oz) 21,956 91,468Average price (US$/oz) 1 687 1 546Average price (US$/oz) 1,687 1,546Proceeds from gold sales ($M) 37.8 140.2Proceeds from commercial gold sales ($M) 14.8 66.2Cash earnings from operations*
$ millions 8.1 31.7Net lossNet loss
$ million$ per share
5.50.01
10.90.03
*Denotes a non-GAAP measure.
8
LSG: 2011 Expenditures
2011Projects 96.7
Exploration 32.1
Mill Expansion 22.6
Total 151.4
Increased project spending mainly relates to additional development work at Thunder Creek and cost escalation
Ended year with $66.2M cash and gold bullion inventory
Franco-Nevada royalty/equity investment added $50 million in February 2012
9
in February 2012
Timmins Deposit Timmins Deposit Thunder Creek Thunder Creek
200 Level200 Level
Timmins West MineTimmins West Mine
Timmins and 200 Level200 Level
300 Level300 Level
Timmins and Thunder Creek deposits combined
Initial ThunderInitial Thunder Creek resource released Nov. 2011
Updated Timmins
650 Level650 Level
730 Level730 Level2012 Work 2012 Work 2012 Work2012 Work
Updated Timmins deposit resource February 2012
PEA first evaluation 730 Level730 LevelProgram*Program*
2012 Work 2012 Work Program*Program*of fully integrated
operation
Conceptual view - full development
*Examples of Forward Looking Statements.
of current resources
10
Timmins Deposit Setting Ourselves Up
545L
565L g pFor Rapid Growth
585L
610L
In 2012:Ore delineation and 610L
Shaft 650L
Ore delineation and infrastructure focus during early part of yearProduction weighted to
670L
690L
Production weighted to H2/12* Typical
stoping blocks
710L
730L
750L
11
790L
810L *Examples of Forward Looking Statements.
Timmins Deposit Setting Ourselves Up
545L
565L g pFor Rapid Growth
585L
610L
In 2012:Ore delineation and 610L
Shaft 650L
Ore delineation and infrastructure focus during early part of yearProduction weighted to
670L
690L Going forward:
R d f t i th
Production weighted to H2/12* Typical
stoping blocks
710L
730L
• Ready for stoping on three new levels
• Four additional levels d
750L accessed
12
790L
810L *Examples of Forward Looking Statements.
Thunder Creek Deposit Setting Ourselves UpSetting Ourselves Up For Rapid Growth In 2012:
Thunder Creek Lower Mine
Extensive ramping, ore delineation and infrastructure work
660L Stope production weighted to H2/12*
695L
730L730L
765L
i l i
800L 13
Typical stoping block
*Examples of Forward Looking Statements.
Thunder Creek Deposit Setting Ourselves UpSetting Ourselves Up For Rapid Growth In 2012:
Thunder Creek Lower Mine
Extensive ramping, ore delineation and infrastructure work
660L Stope production weighted to H2/12*
Going forward:695L
730L
Going forward: • Development advanced
on four levels• Multiple stoping blocks 730L
765L
i l i
• Multiple stoping blocks accessible
800L
Typical stoping block
14 *Examples of Forward Looking Statements.
Bell Creek Complex2012 ork plan for
Bell Creek Mine Mined out areas
R t
Shaft
2012 work plan for Bell Creek Mine focused on
Recent mining
establishing new mining complex (475 L and 600 L)*
North A“Deep”
L and 600 L)
15*Examples of Forward Looking Statements. Conceptual view of planned work in 2012
Processing – Expanding Mill to Meet GrowthMill continues to perform wellMill continues to perform well
Recoveries of 96.1% in 2011
E d d 2 000 t d it iExceeded 2,000 tpd capacity in Q4/11
Expansion to 3 000 tpd to beExpansion to 3,000 tpd to be completed by late 2012*
Total cost of expansion $61Total cost of expansion $61 million in 2012* ($22.6 million spent in 2011)
16 *Examples of Forward Looking Statements.
Timmins West Mine – PEA (Feb. 28, 2012)
PEA Disclaimer:PEA Disclaimer:The Timmins West Mine PEA is preliminary in nature. It includes inferred mineral
1717
resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
Timmins West Mine – Production & Costs*Average annual production 140 000 ozs cash costs US$625/ozAverage annual production 140,000 ozs, cash costs US$625/oz (exchange rate at par)Expected average head grade of 5.2 grams per tonneY 3 9 A d ti f 160 000 h t US$590/Years 3 – 9: Average production of 160,000 ozs, cash costs US$590/oz
18*Examples of Forward Looking Statements. See PEA disclaimer
PEA: Highlights* • Potential for $70M free cash flow in Year 2, increasing to over
$100M of annual free cash flow1 beginning in Year 3 using analyst consensus pricing2g
• At analyst consensus2, total cash flow of $730M, NPV of $570M, IRR of 100%, payback period of 1.25 years
• Growth capital of $160M, including $67M for expansion & other mill costs, with $225M of sustaining and other capital
Significant opportunities for project enhancement:Significant opportunities for project enhancement:Reducing capital and operating costsIncreasing throughput levelsIncreasing throughput levelsIncreasing resources
19
1. All information is presented before income taxes. At December 31, 2011, the Company had total tax shelters of $540 million.2. Gold price starting at US$1,744/oz in 2012, declining to a long-term price of US$1,200/oz in 2018, average exchange rate of
$US:1.00 = $CDN 1.07.
*Examples of Forward Looking Statements. See PEA disclaimer
Exploration Review 2011 drill program2011 drill program
• 176,000 metres• $32.1 million
Focus in 2011 was on establishingFocus in 2011 was on establishing and updating resources and exploring for extensions and new discoveriesdiscoveries2012 program focused on drilling to support operations and exploring k t t TW d BC F Gibkey targets: TW and BC, Fenn‐Gib, GRT and 144
20 drills currently active10 Underground (TWM & BC)2 Gold River Trend (surface) 1 144 property (surface)3 Bell Creek (surface)4 Fenn‐Gib (surface)
20
Measured & Indicated Tonnes Au Grade (g/t) Contained Ounces
LSG ResourcesMeasured & Indicated Tonnes Au Grade (g/t) Contained Ounces
Timmins West 5,826,000 5.99 1,122,500Gold River Trend 690,000 5.29 117,400Bell Creek Mine* 1,790,000 4.36 251,200
Vogel 2,219,000 1.75 (OP) 125,000Marlhill 395,000 4.52 57,400
Fenn Gib 40,800,000 0.99 (OP) 1,300,000Total 2,973,500
I f d T A G d ( /t) C t i d OInferred Tonnes Au Grade (g/t) Contained Ounces
Timmins West 4,272,000 5.76 791,500Gold River Trend 5,273,000 6.06 1,027,800Bell Creek Mine* 8,427,500 4.40 1,192,900
Vogel 1,459,000 3.60 (some OP) 168,800Fenn Gib 24,500,000 0.95 (OP) 750,000
Total 3,931,000
* Updated NI 43-101 resource pending OP – Open Pit21
Timmins Deposit Timmins Deposit Thunder Creek Thunder Creek
200 Level200 Level
Timmins West MineTimmins West Mine
200 Level200 Level
300 Level300 Level
Timmins Deposit600,900 ozs (2,949,000 tonnes @ 6.34 gpt) in Indicated281,500 ozs (1,579,000 tonnes @ 5.54 gpt) in Inferred
Th d C k650 Level650 Level
730 Level730 Level
Thunder Creek 521,600 ozs (2,877,000 tonnes @ 5.64 gpt) in Indicated 730 Level730 Level510,000 ozs (2,693,000 tonnes @ 5.89 gpt) in Inferred
Conceptual view - full development
Timmins West MineTimmins West Mine1,122,500 1,122,500 ozsozs (5,826,000 (5,826,000 tonnestonnes@ 5.99 @ 5.99 gptgpt) Indicated) Indicated
*Examples of Forward Looking Statements.
of current resources
22
791,500 791,500 ozsozs (4,272,000 (4,272,000 tonnestonnes @ @ 5.76 5.76 gptgpt) Inferred) ) Inferred)
Gold River Trend – Updated Resources Total ounces nearly tripled and grade doubledTotal ounces nearly tripled and grade doubledIndicated: 117,400 ozs (690,000 tonnes grading 5.29 gpt)Inferred: 1,027,800 ozs (5,273,000 tonnes grading 6.06 gpt)
250 m
23 *Examples of Forward Looking Statements.
Fenn-Gib* P t ti l l lPotential large-scale, open-pit mine
40.8M tonnes @ 0.99 gpt for 1.3M ozs Indicated
24.5M tonnes @ 0.95 gpt for 0.75M ozs Inferredfor 0.75M ozs InferredExcellent exploration potential, expect to increase resourcesincrease resources
24*Examples of Forward Looking Statements.
LSG: Near-Term Catalysts*
Updated resource for Bell Creek
Updated reserve for Timmins West MineUpdated reserve for Timmins West Mine
Filing of NI 43-101 reports for Gold River Trend and Timmins West Mine (including TWM PEA)West Mine (including TWM PEA)
Mill expansion completed late 2012
25 *Examples of Forward Looking Statements.
LSG: Three Multi-Million Ounce Gold Complexes in Century Old Timmins CampComplexes in Century-Old Timmins Camp
Bell Creek Complex
Destor-Porcupine Fault
TimminsCity of Timmins
Timmins West Complex
Fenn-Gib
Strong production growth expected in 2013*Cash costs to improve as production ramps up*Large and growing resource base to drive future growthLarge and growing resource base to drive future growth Excellent opportunities to enhance existing projects, discover and develop new depositsP t ti l f i ifi t f h fl b i i t 18 th *Potential for significant free cash flow beginning over next 18 months*
26 *Examples of Forward Looking Statements.