presentation slides

MINEX
9 October 2014
Disclaimer
Statements and assumptions made in this Presentation with respect to Auriant Mining AB’s
(“Auriant”) current plans, estimates, strategies and beliefs, and other statements that are not
historical facts, are forward-looking statements about the future performance of Auriant.
Forward-looking statements include, but are not limited to, those using words such as "may",
"might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect Auriant’s management's
expectations and assumptions in light of currently available information. In the light of the
many risks and uncertainties surrounding any gold production and exploration company at an
early stage of its development, the actual results could differ materially from those presented
and forecasted in this Presentation. Auriant do not assume any unconditional obligation to
update any such statements and/or forecasts immediately.
Auriant Presentation
2
Auriant Mining overview
General information
Shareholder structure
Auriant Mining AB is a Swedish junior mining company
BERTIL HOLDINGS
(P.Haskell)
focused on gold production in Russia
UBS AG LDN BRANCH A/C
CLIENT, IPB
Auriant Mining AB is one of only a few publicly listed
SWISS LIFE
(LIECHTENSTEIN) AG
22.95%
junior mining companies in Russia
SVEA LANDS. S.A
2.19%
Gold Reserves – ~1 Moz according to Russian C1+C2
2.81%
52.32%
3.88%
categories
SWISS LIFE
LIECHTENSTEIN AG
4.07%
2012 production – 642 kg (20,640 oz)
SIX SIS AG, W8IMY
5.25%
6.54%
2013 production– 1,142 kg (36,716 oz)
Auriant Management
Other
Headquartered in Stockholm, Sweden
Management shareholding
Auriant Mining is listed on NASDAQ OMX First North
Premier
• As of April 2014 Auriant Mining management holds 690 229
shares – 3.9% of total
• Total amount of options holds by company’s management is
1,306,768
• Total management shareholding on a fully diluted basis - 10.4%
2014-10-08
Auriant Presentation
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Core Assets
Auriant Mining AB
(Stockholm)
Auriant Management
(Moscow)
Solcocon (Hard Rock)
C1+C2
Au 15.8 t @ 5.2 g/t
Solcocon (Alluvial)
C1+C2
Au 1.3 t @ 1.2 g/m3
Uzhunzhul
Uzhunzhul
Exploration
Solcocon
Tardan and Greater Tardan
Kara-Beldyr JV
Tardan**
C1+C2
Kara-Beldyr JV*
Au 8.7 t @ 4.1 g/t
MI&I
Au 500,000 oz @ 2.2 g/t
* Auriant share in Kara-Beldyr is 30%
** Includes 2.5 tonnes of Greater Tardan reserves submitted for approval
2014-10-08
Auriant Presentation
4
Positioning
Market position
Auriant Mining is a junior producer with:
SENIOR
Stage
MIDCAP
Tardan
SMALL
PRODUCERS
Production
Solcocon
Production / Exploration
Kara-Beldyr JV
JUNIOR/
DEVELOPMENT
•
A solid pipeline of projects
•
Increasing operating cash flows and growing
production
•
A core team with international experience in the gold
mining industry
Scoping Study
Uzhunzhul
Exploration
Greater Tardan
Exploration
Reserves & Resources
C1
Alluvial/Hard
Rock
Tardan
Tardan deposit
Greater Tardan
Staroverinskaya
Kozlovskoye
Bogomolovskoye
Borzya
Uzhunzhul
C2
Ore,
000 t
Au,
g/t (g/m3)*
Au,
kg
Au,
000 oz
Hard Rock
Hard Rock
1,335
528
3.5
4.46
4,661
2,356
Hard Rock
Hard Rock
218
10.4
0.9
Alluvial
Ore,
000 m3
271
Ore,
000 m3
Au,
g/t (g/m3)*
Au,
kg
Au,
000 oz
150
76
325
15
4.8
6.67
1,565
101
2, 030
65
841
2,000
7.8
3.6
233
7.5
817
1.3
7,250
234
817
271
2,081
Measured & Indicated Resources
Kara-Beldyr*
Ore,
000 m3
Ore,
000 t
Au,
g/t (g/m3)*
Au,
kg
Au,
000 oz
50
3.2
1,660
543
3.7
4.52
6,226
2,457
200
79
6,585
7,184
212
231
1,059
2,000
8.1
3.6
8,615
7,184
277
231
1,060
34
1,088
1,293
41.6
16,495
530
1,088
25,775
829
Hard Rock
TOTAL
License
C1 + C2
Ore,
000 t
3,181
Inferred Resources
5,262
MI&I
Ore Type
Ore,
000 t
Au, g/t
Au, kg
Au,
000 oz
Ore,
000 t
Au, g/t
Au, kg
Au,
000 oz
Ore,
000 t
Au, g/t
Au, kg
Au,
000 oz
Hard Rock
3,790
2.4
8,989
289
3,354
2
6,563
211
7,144
2.2
15,552
500
* Represents overall Kara-Beldyr reserves
2014-10-08
Auriant Presentation
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Board of Directors
Lord Peter Daresbury
Chairman (NED and
Independent)
Preston Haskell
(NED)
Board member since November 27, 2012. Peter Daresbury is a citizen of
the United Kingdom, born in 1953. He has held many senior positions in
the mining industry, including Directorships in Sumatra Copper & Gold
Ltd (2007 – 2012); Evraz Group S.A., Russia’s largest steel producer
(2005 – 2006); as well as Chairman of Kazakhgold Group Ltd (2005 2007); and Chairman of Highland Gold Mining Ltd, a major Russian
gold miner (2002 – 2004). Peter is currently Chairman of Mallett PLC,
Aintree Racecourse Ltd and Nasstar PLC. Current directorships include
Bespoke Hotels Ltd, Rusant Ltd, a Russian antimony miner, and Pesto
Restaurants. Since 2005, Peter Daresbury has been a member of
Fleming Family and Partners Private Equity Investment Committee and
since 1998 he serves as the Chairman of Aintree Racecourse Ltd.
Chief Executive Officer until May 24, 2012 and Chairman of
the Board since May 24, 2012. Preston Haskell is Saint Kitts
and Nevis citizen, born 1966, and has been active as a
businessman in Russia since the early 1990s.
Preston has a Degree in Economics from the University of
Southern California in the U.S.
Peter has an MA in history from Cambridge University.
Ingmar Haga
(NED and Independent)
Board member since May 24, 2012. Ingmar Haga is a
citizen of Finland, born 1951. Ingmar is currently Vice
President Europe of Agnico Eagle Mines Limited, a
position he has held since 2006. He has held various
executive and corporate positions with the Outokumpu
Group in Finland and Canada. Prior to joining Agnico
Eagle, he was President of Polar Mining Oy, a Finnish
subsidiary of Dragon Mining NL of Australia. He has also
served as a board member of the Finnish Mining
Association from 2007-2008 and as their Chairman in
2009. Since 2010 he has been a member of the Euromines
Steering Committee.
Ingmar has an MSc from Åbo Akademi, Finland.
2014-10-08
Bertil Villard
(NED and
Independent)
André Bekker
(NED and Independent)
Board member since May 15, 2013. Bertil is a citizen of
Sweden, born in 1952. He is a senior partner of Vinge law
firm, one of Sweden's largest law firms with a solid
reputation as a valuable adviser on corporate matters
including corporate governance and mergers and
acquisitions. He has extensive practical corporate
governance experience from previously serving as secretary
and board member of several publicly listed companies.
Prior to Vinge KB, his experience included Head of
Corporate and Finance at Alfred Berg Fondkomission AB,
General Counsel of Esselte AB, Swedish Match AB and
Stora Kopparberg AB. He has also served as the Chairman
of several companies: AMF Pension AB, Lernia AB, Salus
Ansvar AB, Pergo AB and SEB Trygg Liv(Gamla). He is
currently serving as Chairman or board member in
Novestra AB, Landsort Care AB 1-3(chairman),Mercuri
International AB, Cleanergy AB, Voddler AB and
Prior&Nilsson Kapitalförvaltning AB.
Board member since November 27, 2012. André is a citizen of
South Africa, born 1959.
He is one of the most respected geologists and mining
executives in Southern Africa. He is currently an Executive
Officer of Sylvania Platinum, a position he has held since
2011. His previous experience includes Technical Director of
Amaria Holdings (2006 – 2010) a major resource investment
company with projects in platinum, manganese, nickel and
coal; Senior Operations Manager of Royal Bafokeng
Resources (2005 -2006), a major mining investor; Head of
Mining for the Industrial Development Corporation of South
Africa (1991 – 2005); as well as serving as the Assistant
Resident Geologist for a major Anglo American South African
gold mine, and geologist of Rand Mines (1983 – 1986).
Auriant Presentation
André has a BSc (Hons) from the University of Free State and
a management diploma from Unisa. He is a member of the
Geological Society of South Africa.
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Group management
Denis Alexandrov
CEO
Max Yacoub
CIO
Sergey Ustimenko
CFO
Denis Alexandrov, a Russian national, joined Auriant Mining
AB as CEO in May 2012 having previously held senior
positions in two Russia-focused investment companies, A1
one of Russian’s largest investment funds where he was CFO
and acting CEO, and Arlan, one of Russia’s largest gold
focused investment funds. From 2001 to 2003 he was CFO of
Highland Gold Mining Plc., following two years at Alfa Group
in London. Previously he spent 5 years with
PricewaterhouseCoopers. His Board appointments have
included Highland Gold, Timan Oil and Gas, Stellar
Diamonds, Systematika Group, Remet and Silver Bear PLC.
Max Yacoub, a dual British/Russian national, joined
Auriant Mining AB as Chief Investment Officer in
November 2012. His previous experience includes 8
years with the International Finance Corporation (IFC)
where he was an Investment Officer focusing on
investments in the gold mining sector in Russia and the
CIS as well as Head of Office for IFC in Belarus. He also
has experience of private equity in Russia.
Sergey, a Russian national, joint Auriant Mining in May
2014. His previous position was as CFO of Ferronordic
Machines AB, a large Swedish distributer of construction
equipment. Over the last 10 years he held CFO positions in
large companies engaged in automobile distribution,
airline industry and financial services. Prior to this Sergey
was head of control at LUKOIL, the largest private Russian
oil company. He also has 7 years experience in audit with
BDO, KPMG and Arthur Andersen.
Denis holds an MBA from the Moscow School of Management
(Skolkovo).
Max graduated from the University of Birmingham in
the UK with a B.Eng in Manufacturing Engineering and
a B.Com in Economics. He also has an MBA from
Harvard Business School.
Sergey graduated from Moscow State Technical
University named after Bauman as engineer. He also
holds CPA qualification from 2001.
Shares: 19,295 Options/ Warrants: 180,000
Shares: 0 Options/ Warrants: 0
Shares: 435,442 Options/ Warrants: 811, 768
Vladimir Churin
Chief Geologist
Sergei Shumilov
COO
HR Director
Vladimir, a Russian national, joined Auriant Mining as Chief
Geologist in October 2012. He has more than 30 years’
experience as a gold geologist in gold exploration and deposit
discovery. His previous experience includes being Chief
Geologist with Altynalmas in Kazakhstan (2011-2012),
Exploration Manager Oxus Resources in Uzbekistan (20102011), and Deputy Chief of the Russian Federal Geological
Agency in the Buryatiya Republic (2009-2010). Additionally,
he worked as Exploration Manager for Severstal Resurs (now
called Nordgold, a major Russian gold producer), Ilmenit (a
Siberian junior miner), and Kinross Gold.
Sergei is an experienced Human Resources and
Development professional. He joined Auriant in 2012 as
HR Director for the Group. Previously he was an HR
Director for Lafarge Russia (a leader in construction
materials) from 2009 – 2011, as Plant Training and
Development Manager for Lafarge’s
Voskresenskcement plant (2007-2009). Prior to Lafarge
he worked in sales, marketing and merchandising at
Philip Morris Russia from 1998 – 2006). In addition,
since 2009 he is an Executive Coach with the Center for
Creative Leadership.
Vladimir graduated from the Leningrad Mining Institute
with an MSc in Geology with a concentration in Exploration
Geology.
Sergei graduated from the Saratov State University with
an MSc in Radio Engineering.
Shares: 0 Warrants: 20,000
2014-10-08
Shares: 0 Options/ Warrants: 100,000
Auriant Presentation
Ekaterina Babaeva
General Counsel
Ekaterina Babaeva, a Russian national, joined Auriant
Mining in April 2012 as acting Group General Counsel
and was then appointed Group General Counsel in
August 2012. Previously Ekaterina was Legal Advisor
to Colliers International from 2004 to 2009 (a company
associated with Preston Haskell), having previously
worked as a lawyer in a company providing audit and
legal advisory services. Ekaterina has focused on
Russian and international corporate and M&A matters,
and has experience in real estate and mining law. At
present, in addition to her role at Auriant, Ekaterina
continues to work as Head of Legal Department at
Haskell Group.
Ekaterina graduated with honors from the Law
Department of Moscow State Lomonosov University.
Shares: 235,492 Options/ Warrants: 40,000
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Three-fold strategy
Mid to long term
Position Auriant as a consolidation
vehicle for Russian gold mining sector
Short to mid term
Exploration of highly prospective
areas (>900 km2) within current
licenses to increase company
reserves
Short term
Focus on existing production
and cost efficiency – ramp up
to capacity of 2 tonnes
(64,000 oz) per year
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Short term strategy–production ramp-up and
focus on efficiency
Auriant Mining Gold production
kg
2,000
forecast
Alluvial
Solcocon
1,300 - 1,400
Tardan
1,142
642
410
•
114
116
76
238
96
412
2011
2012
377
107
658
2013
2014
2015
- 2016
2015
Cost control and efficiency key focus – in 2014 mining costs per m3 down by 19% and processing
costs per tonne of ore down by 30%
•
Auriant Mining became the largest public junior gold producer in Russia in 2013
2014-10-08
Auriant Presentation
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Tyva Assets
General information
Description
Location
Currently Auriant Mining has 2 projects in Tyva:
• Project 1 – operating Tardan mine (3.3 sq.km) and Greater
Tardan exploration area (>540 sq.km) (located in a region with
developed infrastructure);
• Project 2 - Kara-Beldyr exploration area (Auriant holds 30% in
a JV with Centerra Gold)
Tardan
Description of the region:
•
Kara-Beldyr
Part of the prolific Altai-Sayansky belt, containing gold, copper,
molybdenum
•
Relatively unexplored
•
Numerous historical alluvial deposits
•
Intergeo owns the large Ak-Sug copper poprphyry deposit near
Tardan
Kyzyl
Tardan
~70 km
~20 км
Kundustuk village
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Tardan
Key facts
• Reserves: Au 8.7 t @ 4.1 g/t (279 koz)
• Explored anomalies ready for drilling to further increase reserves
• Heap Leach capacity – 600 kt p.a.
• Current recovery – 67%
• Gold production 2013 – 658 kg (21,155 oz)
• Expected gold production 2014 – 800 kg (25,720 oz)
• Exploration 2013/14 – Increased reserves by Au 3.5t at Tardan and
Greater Tardan
Pit contours
2014-10-08
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Tardan production
Gravitation
100 kt p.a.
Ore
4-8 g/t
Key facts
100 - 200 kg
of gold p.a.
• Open pit and heap leaching
• Target production at full capacity - Au
1,000 - 1,200 kg p.a.
• Heap Leach capacity – 600 kt p.a.
Tailings
100 kt p.a.
• Recovery rate - 67%
Ore mining
600 - 850 kt p.a.
900 - 1,000 kg
Ore
2 g/t
of
gold p.a.
Heap leaching
500 - 650 kt p.a.
Target production at full capacity – Au 1,000 – 1,200 kg p.a.
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Short to mid term strategy – Organic Growth
Greater Tardan exploration
Key facts
• 540 km2 area
• Prospective areas with different types of
mineralisation were identified:
 Quartz-sulfide (1,9,10,11,12)
 Gold scarns (2,3,4,5,6,7)
 Porphyry type (8)
 Black shale
Exploration
potential with
same type of
mineralisation
• Gold scarn area contains ore suitable for
current heap leach operations
Tardan Mine
2014-10-08
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Short to mid term strategy – Organic Growth
Kara – Beldyr exploration
38000
37000
Key facts
Camp
Zone
39000
Baran
Zone
Gordeyevskaya
Zone
•
Auriant holds 30% in JV with Centerra
Gold
•
Centerra is a proven international operator
•
NI 43-101 resources of 500,000 oz @ 2.2 g/t
•
Exploration completed. Expect increase in
resources in 2014
•
License valid till 2027
Proposed
pits
Ezen
Zone
67000
Ore body
Beresite and quartz zones
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Zabaikalskiy Krai
General information
Description
Location
Currently Auriant Mining has a producing gold mine in Zabaikalskiy
Krai - Solcocon
• Zabaikalsiy Krai historically one of the most prolific gold
producing areas of Eurasia
• Numerous gold mines in the area and very high exploration
potential
• Large miners present include Highland Gold Mining, UGC
(Yuzhuralzoloto), Norilsk Nickel, ARMZ (top 3 global
uranium miner)
Solcocon
• In addition to gold there are numerous copper, uranium, silver
and polymetallic deposits
Chita
~350 km
~350 km
Solcocon
2014-10-08
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Solcocon
Key facts
• Reserves Au 15 t (508 koz) @ 6.5 g/t, incl. 7.2 t
(231 koz) @ 3.6 g/t for heap leaching
• Heap leach production capacity – 300 kt p.a.
• Alluvial gold production capacity – 250 kg p.a.
• Recovery rate - 59%
• Total gold production 2013 – 485 kg (15,593 oz)
• Excellent exploration potential to increase
reserves
2014-10-08
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Solcocon production
Key facts
Alluvial
250 - 270
kg of gold p.a.
• Open pit and heap leaching
• Target production at full capacity – Au
750 - 800 kg p.a.
• Ore capacity – 300 k t p.a.
• Recovery rate - 59%
Ore
3 g/t
Ore mining
300 kt p.a.
500 - 550
kg of gold p.a.
Heap leaching
300 kt p.a.
Target production at full capacity – Au 750 – 800 kg p.a.
2014-10-08
Auriant Presentation
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Uzhunzhul
General information
Description
Location
Auriant Mining is the 100% owner of the Uzhunzhul exploration
property in the republic of Khakassia
Summary:
• Total license area – 134 km2
• License expiration - 2031
• Well developed regional infrastructure – roads and railroads,
Sayano-Shushinskaya hydroelectric power station
• Large number of mines in the region
Uzhunzhul
• Producing Chazy-Gol gold mine (Kuznetskovskoy deposit, owned
by Golden Star) is directly adjacent to Uzhnuzhul
Cu, Mo, Sorskiy GOK
Au,
Au,
Mayskiy mine
Chernogorskiy
coal basin
Uzhunzhul
Au,
Chazy-Gol mine
Tardan
~70 km
Fe,
Teiskiy mine
Al,
Sayanskiy aluminium plant
Kundustuk village
Sayano-Shushinskaya hydroelectric power station
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Russian gold mining industry snapshot
Top Russian gold producers (as of 2013)
tonnes
51.3
Public companies
23.2
69
Non-public companies
21.7
14.9
9.9
Polyus Gold
Petropavlovsk
Polymetal
Kinross
Nordgold N.V.
7.3
Highland Gold
Mining
7.0
2.7
Other Public
Uzhuralzoloto
5.4
4.2
GV Gold
Sovrudnik
3.92
Susumanzoloto >400 private
companies
Public companies represent 59.3% of total production
Production structure
•
1.2% Junior public producers
Top-6 (All public)
58.1
%
•
40.7
%
•
Non-public companies (>400)
2014-10-08
Auriant Presentation
Relatively little production given Russia’s
very large gold reserves
Very few public junior miners (only 3
producers)
Lots of opportunities for consolidation,
especially among non-listed companies
19
Auriant Mining
Summary
• Largest public junior gold miner in Russia
• Fastest growing hard rock gold producer in Russia
• 78% production annual growth in 2013
• 2 producing mines, 3 exploration properties
• Since new management took over in 2012, Auriant has met all targets
• Excellent organic and M&A growth opportunities
• All major CAPEX already undertaken
• Strong Board of Directors and Corporate Governance
2014-10-08
Auriant Presentation
20
Thank you
Max Yacoub
CIO and IR
[email protected]
Auriant Mining AB
Tulegatan 2 A,
113 58 Stockholm, Sweden
Tel: +7 495 660 2220
www.auriant.com
Denis Alexandrov
CEO
[email protected]
2014-10-08
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