Uniquely Positioned for Growth

Transcription

Uniquely Positioned for Growth
Uniquely Positioned for Growth
Whistler 2004
Disclaimer
Certain statements set forth in this presentation
constitute “forward looking statements” within the
meaning of the United States Private Securities Litigation
Reform Act of 1995. Such statements involve risks,
uncertainties and other factors that may cause the actual
results, performance or achievements to differ from
those expressed or implied by such forward looking
statements. Such risks and uncertainties are describe in
periodic filings made by Bema Gold Corporation with the
United States Securities and Exchange Commission and
Canadian provincial securities regulatory authorities.
All dollar amounts used throughout this presentation are
expressed in US dollars unless otherwise noted.
Corporate Profile
ƒ Intermediate gold producer
ƒ Projected production growth to over 1 million ounces
of gold annually from existing assets
ƒ Proven exploration and development expertise
ƒ Large, high quality reserve and resource base
ƒ Highly liquid shares
ƒ Strong financial position
ƒ Unparalleled leverage to gold
Bema’s Global Footprint
Projected Production Growth
1,200
Ounces of Gold Per Year
000’s
1,100
1,000
+1,000,000 oz.
Cerro Casale
900
Kupol
800
Refugio
Petrex
700
600
Julietta
500
+420,000 oz.
400
250,000 oz.
300
200
100
0
+1,200,000 oz.
300,000 oz.
117,319 oz.
2002
2003
* Subject to feasibility and financing
** Subject to financing
2004
2005
Including Including
Kupol*
Cerro Casale**
Reserves and Resources
ƒ Proven & Probable Reserves:
3.6 million ounces
ƒ Measured & Indicated Resources:
4.7 million ounces
ƒ Inferred Resources:
11.3 million ounces
ƒ Total:
_______________
Gold price assumptions vary between $325 & $350 per ounce
Investment Climate in Russia
ƒ Stable government
ƒ Evolving legal system
ƒ Improved property tenure
ƒ Reduction in taxes
ƒ Taxes and royalties have decreased
ƒ Strong, growing economy
ƒ Increased foreign investment
ƒ Moody’s debt rating upgrade
Julietta Location Map
Julietta Mine, Russia
ƒ Produced 118,145 ounces of gold in 2003
ƒ Total cash cost of $148 per ounce
ƒ Projected to produce 102,000 ounces of gold in 2004
ƒ Projected total cash cost of $177 per ounce
ƒ Exploration continues to successfully increase reserves
and discover new veins
Petrex Mines Location Map
Petrex Mines, South Africa
ƒ Mill expansion completed August 2003
ƒ Base case: 10 year mine plan
ƒ Production from a combination of open pits and
underground mining
ƒ Projected annual production rate of 200,000 ounces of gold
per year
ƒ Rand gold put program protects profit margin
ƒ Significant reserve delineation and exploration drilling
underway
Maricunga District, Chile
Refugio Mine
Ownership: Bema 50%, Kinross 50%
New Project Economics
Reserves (oz. gold)
Projected annual production(oz. gold)
Production rate (tonnes per day)
Mine life
Total cash costs
Capital expenditure
New fleet (capital lease)
NPV at $350/oz. Au*
NPV at $400/oz. Au*
*NPV
*NPV at
at 0%
0% discount
discount
3.4 million
245,600
40,000
10 years
$225 per ounce
$71 million
$30 million
$144 million
$259 million
Kupol Location Map
Kupol Property Agreement
ƒ Option to earn up 75% from Government of Chukotka
ƒ Initial payment of $8 million was made Dec. 2002 and
expenditure of at least $5 million within 12 months of initial
payment on exploration to earn 20%
ƒ Second payment of $12.5 was made in Dec. 2003 to earn
additional 10%
ƒ Payment of $10 million in Dec. 2004 and exploration
expenditure of at least $5 million during year 2 to earn and
additional 10%
ƒ Completion of bankable feasibility study and payment of $5 per
ounce gold on 75% of the ounces as identified in the study to
earn and additional 35%
ƒ Upon commencement of mine construction an additional $5 per
ounce gold on 75% of the ounces as identified in the study
Kupol Project Exploration 2003
ƒ Completed Phase I drill program
ƒ Drilled 166 holes totaling 22,256 metres
ƒ Consistent high grade mineralization intersected over 3.1 km
of strike length (open to the north and south)
ƒ Deepest high grade intercept at 275 metres (open at depth)
ƒ Preliminary mineral resource announced February 2004
ƒ Preliminary economic study due in May 2004
Selected Drill Results
Big Bend
KP03-09:
18.3 metres of 65.1 g/t gold and 1021.27 g/t silver
KP03-49:
24.5 metres of 41.7 g/t gold and 499.2 g/t silver
Central Zone
KP03-67:
8.6 metres of 39.3 g/t gold and 313.7 g/t silver
KP03-71:
12.9 metres of 45.3g/t gold and 45.25 g/t silver
North Zone
KP03-86:
33.5 metres of 32.8 g/t gold and 406.2 g/t silver
KP03-133: 11.95 metres of 70.5 g/t gold and 709.2 g/t silver
Kupol Preliminary Mineral Resource
Measured & Indicated
Tonnes
(000’s)
Gold
(g/t)
Silver
(g/t)
Gold Oz’s
(000’s)
Silver Oz’s
(000’s)
Big Bend zone
1,257
29.6
308
1,196
12,400
Kupol Vein, all zones
2,551
22.3
232
1,826
19,100
Inferred
Tonnes
(000’s)
Gold
(g/t)
Silver
(g/t)
Gold Oz’s
(000’s)
Silver Oz’s
(000’s)
Big Bend zone
2,629
22.4
337
1,895
28,500
Kupol Vein, all zones
7,166
18.4
243
4,231
55,900
Kupol Long Section, Drill Holes: 1-151
Kupol Exploration/Feasibility Program 2004
ƒ May 2004, complete pre-feasibility study
ƒ Extensive exploration and infill drill program
ƒ 57,000 metre drill program using 7 rigs
ƒ Metallurgical test work
ƒ Feasibility baseline studies
ƒ Complete final feasibility study March 2005
ƒ Projected budget: $20 million
Kupol Development Plan 2004
ƒ Procurement of equipment and transport
ƒ Condemnation drilling
ƒ Earth works for mine and mill
ƒ Construction of an airstrip
ƒ Water drilling
ƒ Projected development budget: $20 million
Kupol Development Plan 2005 - 2007
2005
ƒ Final engineering design and final feasibility study
ƒ Procurement and shipping of mining equipment and
construction supplies
ƒ Commence excavation for tailing ponds
ƒ Pour foundations for buildings
ƒ Construction of site roads
2006
ƒ Mobilize construction materials, supplies and milling
equipment
ƒ Additional work on tailing ponds
ƒ Commence full-scale construction of mill and buildings
2007
ƒ Commence production
Maricunga District, Chile
Cerro Casale Project Economics*
Ownership: Bema 24%, Arizona Star 25%, Placer Dome 51%
23 million ounces gold, 6 billion pounds copper
Gold price
Copper price
$350/oz.
$0.95/lb
Projected annual gold production
Cash operating cost
975,000 oz.
$98/oz.
Total costs
Capital expenditure**
$203/oz.
$1.43 B
NPV @5% discount
Payback
$736.2 M
7.1 years
*Based
*Based on
on Placer
Placer feasibility
feasibility study,
study, 2000,
2000, base
base case
case
**Placer
**Placer Dome
Dome is
is required
required to
to arrange
arrange up
up to
to 1.3
1.3 billion
billion of
of project
project financing
financing to
to earn
earn their
their 51%
51%
Casale Sensitivity Matrix – Metal Prices
(all equity case)
Cu Price
($/lb)
0.80
0.95
1.10
1.25
Au Price ($/oz)
Ag Price
$5.25/oz
NPV @ 0% (M$)
NPV @ 5% (M$)
IRR (%)
Payback (years)
325
1,234
190
6.6%
9.7
350
1,585
394
8.2%
8.5
375
1,935
596
9.7%
7.6
400
2,284
797
11.2%
6.8
425
2,634
998
12.5%
6.1
450
2,984
1,199
13.9%
5.6
NPV @ 0% (M$)
NPV @ 5% (M$)
IRR (%)
Payback (years)
1,790
508
9.0%
8.1
2,140
710
10.5%
7.2
2,490
911
11.9%
6.4
2,840
1,111
13.2%
5.9
3,190
1,312
14.5%
5.3
3,539
1,512
15.8%
4.9
NPV @ 0% (M$)
NPV @ 5% (M$)
IRR (%)
Payback (years)
2,346
823
11.3%
6.8
2,695
1,024
12.6%
6.1
3,045
1,224
13.9%
5.6
3,395
1,425
15.2%
5.1
3,745
1,625
16.4%
4.8
4,095
1,825
17.6%
4.5
NPV @ 0% (M$)
NPV @ 5% (M$)
IRR (%)
Payback (years)
2,922
1,149
13.4%
5.8
3,271
1,349
14.7%
5.3
3,621
1,550
15.9%
4.9
3,971
1,750
17.1%
4.6
4,321
1,950
18.2%
4.3
4,671
2,150
19.4%
4.1
First Category Tax Rate of 17% is included.
Cerro Casale Recent Developments
ƒ Updated feasibility study to be completed
March 2004
ƒ Commencing discussions with lenders
regarding the financing of Cerro Casale
to production
The Next 12 Months
ƒ Refugio Mine
ƒ Mine expansion/construction underway
ƒ Recommencement of mining late 2004
ƒ Kupol Project
ƒ Pre-feasibility study, 2004 drill program, development work
ƒ Cerro Casale
ƒ Updated feasibility study, financing initiative
ƒ Julietta Mine
ƒ Continued exploration
ƒ Petrex Mines
ƒ Expanded exploration
ƒ Monument Bay Project
ƒ Drill results, further exploration drilling
Projected Production Growth
1,200
Ounces of Gold Per Year
000’s
1,100
1,000
+1,000,000 oz.
Cerro Casale
900
Kupol
800
Refugio
Petrex
700
600
Julietta
500
+420,000 oz.
400
250,000 oz.
300
200
100
0
+1,200,000 oz.
300,000 oz.
117,319 oz.
2002
2003
* Subject to feasibility and financing
** Subject to financing
2004
2005
Including Including
Kupol*
Cerro Casale**
Share Capitalization
As of December 31, 2003
000’s
Shares outstanding:
355,688
Options, warrants:
45,9426
Fully diluted:
401,115
Outstanding warrants/options exercised would
generate $78.2 million (approx.)
Comparative slide - Kupol Longsection
Kupol Longsection vs Hishikari
Kupol Longsection vs Comstock
Kupol Longsection vs Ken Snyder
Exceptional Share Liquidity
ƒ 2004 average daily volume: 7.8 million shares
1,500
60% AMEX
millions of shares
1,500
1,400
1,200
1,000
59% AMEX
800
800
600
69% AMEX
400
200
0
62% AMEX
66% AMEX
97
88
2000
1999
68% AMEX
265
164
2001
2002
2003
Toronto Stock Exchange, TSX/S&P Composite Index, TSX Gold Index, Symbol: BGO
American Stock Exchange, Gold Bugs Index (HUI), Symbol: BGO
London Stock Exchange Alternative Investment Market, (AIM), Symbol: BAU
2004
Market Capitalization
2,000
CDN$ millions
Close price
Close price
December 31
February 17
1,700
1,678
2003
2004
$4.82
1,800
$4.74
1,600
1,400
1,200
1,000
Close price
$2.03
800
600
400
200
0
December 31
Close price
$0.90
December 31
115
1999
Close price
Close price
December 31
December 31
$0.40
520
$0.50
63
92
2000
2001
2002
Peer Group Comparison
Share Price Performance
As at September 30, 2003
ƒ Cash position $65 million
ƒ Julietta project loan balance: $18.3 million
ƒ Projected payback: September 2004
ƒ Petrex project loan balance: $28.5 million
ƒ Scheduled annual loan payment: $5.5 million
ƒ Non recourse to Bema
Bema Gold 2003 Highlights
ƒ Production 2003
ƒ 250,315 ounces gold at total operating costs of $278 per ounce
ƒ Gains from rand gold put options reduce costs to $258 per ounce
ƒ Development Projects
ƒ Made decision to recommence production at Refugio (Dec. 2004)
ƒ Placer updating feasibility study and in discussions with lenders
regarding financing Cerro Casale
ƒ Exploration
ƒ Discovered 6.1 million ounce preliminary Mineral Resource at
Kupol
ƒ Exploration continues to replace/increase reserves at Julietta
ƒ Balance Sheet
ƒ Increased cash position and reduced debt
Proven & Probable Reserves
Project (Ownership%)
Ounces Au
Julietta Mine (79%)
320,740
Petrex Mines (100%)
1,602,000
Refugio Mine (50%)
1,716,500
Bema's share of total P&P Reserves
3,639,240
Gold price assumptions vary between $325 & $350 per ounce
Measured & Indicated Resources
Project (Ownership%)
Ounces Au
Julietta Mine (79%)
175,380
Petrex Mines (100%)
Refugio Mine (50%)
Kupol (75%)
Bema's share of total M & I Resources
2,672,000
497,000
1,369,500
4,713,880
Gold price assumptions vary between $325 & $350 per ounce
Inferred Resources
Project (Ownership%)
Ounces Au
Julietta Mine (79%)
240,950
Petrex Mines (100%)
757,000
Refugio Mine (50%)
1,275,000
Kupol Project (75%)
3,240,750
Monument Bay (70%)
292,860
Cerro Casale (24%)
Bema's share of total Inferred Resources
5,520,000
11,326,560
Gold price assumptions vary between $325 & $350 per ounce
68°
184°
182°
180°
178°
PEVEK
176°
174°
172°
170°
168°
166°
164°
Bema’s Winter Road 1100 km
Existing Winter Road 185 km
Existing Road 565 km
162°
160°
158°
156°
154°
152°
150°
148°
Kupol Ground Transportation 2004
68°
Bilibino
Yakutia
Chukotka
148°
66°
66°
KUPOL Deposit
ANADYR
Omolon
Magadan
KUBAKA Deposit
Omsukchan
62°
150°
62°
64°
180°
64°
Koryska
60°
JULIETTA Mine
60°
178°
400 km
176°
200 km
174°
170°
168°
166°
164°
162°
160°
158°
156°
154°
152°
0 km
172°
MAGADAN