Century Global Commodities Corporation · PDAC, March 2016 Century Global Commodities Corporation...
Transcript of Century Global Commodities Corporation · PDAC, March 2016 Century Global Commodities Corporation...
PDAC, March 2016
Century Global
Commodities Corporation
Corporate Presentation
By Sandy Chim, CEO
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Forward Looking Statement
Except for statements of historical fact, this presentation contains certain “forward-looking information”
within the meaning of applicable securities law. Forward-looking information is frequently characterized by
words such as “plan”, “project”; “intend”, “believe”, “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based
on the opinions and estimates of management at the date the statements are made, and are subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include market prices for metals, the
conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of
mineralization and resources, mining rates and recovery rates and the lack of availability of necessary
capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and
the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain
required permits, delays in exploration and development projects and the possibility of adverse
developments in the financial markets generally, potential environmental issues and liabilities associated
with exploration and development and mining activities. The Corporation is also subject to the specific
risks inherent in the mining business as well as general economic and business conditions. The
Corporation undertakes no obligation to update forward-looking information if circumstances or
management’s estimates should change except as required by law. The reader is cautioned not to place
undue reliance on forward-looking statements. More detailed information about potential factors that
could affect financial results is included in the documents that may be filed from time to time with the
Canadian securities regulatory authorities by the Corporation.
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Cash & Capital Structure
Financial highlights (Dec 31, 2015) C$
Cash and bank deposits $25.2M
Receivables (accounts & tax) $11.5M
Total corporate working capital . . . . . . . . . Available for M&As $36.5M
Exploration and evaluation assets $20.5M
Investment in a joint venture (with a net cash position of ~$5.7M) $60.8M
NAV $119.1M
Capital structure
Shares outstanding 98,794,571
Fully diluted Options/Grants: 13,120,500
Warrants: 1,000,000
112,915,071
Market capitalization
(@ closing share price of
$0.30, March 3, 2016)
~$30M
Share holdings
Founding shareholders 35.5%
Management 16.6%
WISCO (23.5%)
Minmetals (4.7%)
28.2%
Altius Minerals Corp.
Other public shareholders
5.1%
14.6%
Total 100.0%
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Century - Well Funded
Century and JV cash gives flexibility to:
pursue M&A in depressed market
move ahead with mining database and non-metal initiatives
maintain iron ore strategy and prepare for market recovery
C$M
Cash and receivables 36.5
JV Net Cash 5.7
Market Cap ~30.0
Available for strategic plan 36.5
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Iron Assets Positioned for
Market Recovery
Joyce Lake DSO (BFS):
high-grade low capex /
opex- 1st Priority
Full Moon taconite (PEA):
high-volume long-term supply
Value Acquisition and Creation in An
Undervalued Markets
Commodity cycle upside Lower cost curve Self-funding potential Attraction to strategic
partners Tracking value and market
trends of mining companies.
M&As: Down-cycle
value creation
Mining
Database:Tracking
value for
partners &
users
100%
Non-Metals
Business Unit
Organic
growth :Projects are
self-funded to
FS and EIS
Strong Chinese SOE Strategic Partnerships for a
Dual Ferrous and Non-ferrous Strategy
Minmetals Exploration &
Development
(Luxembourg)
Limited S.à.r.l
WISCOInternational
Resources
Development
& Investment
Ltd (PRC)
4.7%23.5%
60% 100%
CenturyGlobal
Commodities
Corporation
(TSX: CNT)
Duncan Lake
Project
Sunny Lake
Project
Attikamagen
Project
100% 65%
JV Net Cash $5.7M
Non-ferrous
Ferrous
Strong balance sheet
(~$40M) for strategic M&As
100%
40%
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Non-Ferrous and Ferrous Strategies
Non-Ferrous
M&A - focus on producing facilities, esp. gold
Mining Database - launching now with gold
Non-metal business targeting major EMs' demand to
generate cash flow while the metals market recovers
Ferrous (Quebec, Newfoundland and Labrador )
Maintaining assets for market recovery including:
▫ Joyce Lake DSO Feasibility complete
▫ Blackbird DSO Resource estimate
▫ Full Moon Taconite PEA complete
▫ Duncan Lake Magnetite PEA complete
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Operating Cost
Opex FOB, Sept-Îles C$/t $58.25
Opex FOB, Sept-Îles US$/t $46.61
Capital Cost
Capex C$M 259.6
Operating Parameters
Life of Mine years 7+
Tonnage tpa 2.5M
Processing Dry
Product mix lump 35%
fines 65%
Joyce Lake DSO – Feasibility March 2015
Reserves Tonnage Fe % SiO2 %
Reserves (+ 52% Fe) 17.72 M 59.71 11.62
Oblique View of Joyce Lake Mineralization
Environmental Impact Statement completed (waiting to submit)
Post feasibility – internal optimization complete
Project positioned to proceed quickly when market recovers as first project
development followed by others, including the Full Moon Taconite Project
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0
50
100
150
200
250
US$
/t
Iron Ore Spot Price (TSI (CFR China) Fe62% spot since ~2009)
Iron Ore: Where We Are, How We Got Here
7 - 8 years
Dec 11, 2015:
US$37.0 (lowest in 15)
End 2015:
US$40.2
Iron Ore Price TrendGlobal financial
crisis
China’s US$600B stimulus Real estate boom in China Start of major expansions
Over supply from major expansions
Market bottom?
recovery?
Mar 3, 2016:
US$51.6~30% YTD
OR
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Where we are headedIron Ore Market Dynamics in the Coming Cycle
China demand factor: Steel demand peaked two years ago More sustainable mid-high rate GDP growth (5-7%) driven by consumption
(requiring fewer commodities than in the last cycle) and structural reforms No massive stimulus anymore. Short-term limited and specific government
target stimulus expected to maintain target (~7% in 2016) growth only Recent surge in iron ore price due to seasonal re-stocking and supply
disruption at Port Hedland due to tropical cyclone Longer-term outlook remains positive on the strength of such massive
regional initiative as One Belt One Road, started with AIIB last year
Global supply factor: Oversupply due to major expansions and cost reductions by top producers Major expansions to complete by 2018 (Vale sees 70mtpa capacity exit in
2016) Cost curve is flattening as more low-cost supply enters the market
Iron ore price expected to remain low in the short to medium term
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Century Strategically Positioned
$5.7M of patient cash in Iron Ore JV
All three projects are at BFS or PEA
Carrying cost for projects is minimal
Prepared to wait two-three years or longer if necessary
Once market returns Joyce Lake DSO (EIS completed) can be brought to production in 18 to 30 months
Creating value for shareholders continues with M&A, Database and other Non-metal initiatives
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0
5000
10000
15000
20000
25000
30000China’s GDP in US$B (Past and Projected)
In 2016 China grows by $740B to
$12T
Non-Ferrous Strategy: Why diversify?
Source: China NBS data, IMF, Century (constant 2015 constant exchange rate in forecast years from 2016 forward)
Low labour cost driving cheap exports
Growth by fixed asset investment
Consumption-ledService-oriented
China joins WTO and starts housing reform
Consumption-led, service-oriented economy:
Mid-high income per capita Demand for quality consumer products More investable assets demanding quality
investment products and services
Super Cycle
Eco
no
mic
Re
form
beg
ins
US$B
China38%
USA16%
EU10%
Other36%
Country / Region's Share of World's 2015 GDP Growth
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Two-Pronged Non-Ferrous Strategy
M&A:
Focus on value proposition, precious and base metal producing opportunities
Maintaining relationships with sources of capital
The Century Mining Database:
Originally built for Century use for acquisitions
Designed with proprietary algorithms for searches for both professionals and retail investors
Considering a link to strategic partners with substantial user-base community
Fully translated with focus on Chinese clientele for mining investment purposes
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For professional and retail investors, to:
rank and compare data or metrics of choice
access results by search questions, by markets and mining metrics
directly link to 800+ company reviews and access 3,500 projects
Expl. and mining companies,
TSX/TSXV, LSE/AIM, ASX, HKEx + others
Starting with gold includes:
>1500 companies, market cap >US$100B
100+ countries, >5 billion oz. gold
Bilingual - English and Chinese
Feature highlights:
asset location maps
regional analysis and data downloading
benchmarking and custom tracking tools
The Century Mining Database
Supported by A Growing List of Strategic Partners: ICBC; TIME; MC
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China’s Pent-Up Liquidity –To be released when RMB internationalizes
High Net Worth Individual Holdings Overseas High Net Worth Individuals Planning Overseas Investments
19%
33%37%
57%
0%
10%
20%
30%
40%
50%
60%
HNWI Ultra-HNWI
2011 2015 2011 201550% 40%
40%45%
0%
20%
40%
60%
80%
100%
HNWI Ultra-HNWI
Increase
Unchanged
Decrease
Increase
Unchanged
Decrease
Investment Sector Growth 2008-2015 (CAGR %)China Total Investable Assets 2015 - US$ 17T
7.73
0.67
2.53
2.53
2.00
1.20
Cash and Deposits
OverseasBank WM Products
Capital Markets
Life Insurance14%
18%
19%
25%
30%
38%
CASH AND DEPOSITS
L IFE INSURANCE
INVESTMENT PROPERTY
CAPITAL MARKET PRODUCTS
BANK WM PRODUCTS
OVERSEAS INVESTMENT
*Sources: Bain & CompanyCentury Global Commodities Corporation (TSX:CNT)
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Middle Class Demand for Quality FoodCentury Food, a Start-up Venture
Distributing western-sourced high quality food products to the Chinese
market
Enormous potential - rising demand from 115M middle class adults
Century Food is run by a separate, lean team of professionals based in
Hong Kong, with a proven track record in the sector
Building on knowledge and distribution network in the China market
Minimal incremental overhead and minimal Capex required
To generate cash flow while the metals market recovers providing a strong
position to take advantage of market cyclicality
To Date: Century has successfully established a distribution network to
supermarkets, hotel and restaurant chains, and international airlines in
Hong Kong, from an exclusive distribution agreement with a large Australian
egg producer (China-Australia FTA signed and sealed) and is now moving
into other high quality food products
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SummaryCentury is also well funded with $36.5M working capital in the
Company and $5.7M cash in its JV to pursue its strategic plans
Century has been restructured as an international company for:
Ferrous strategy (waiting for market recovery)
Non Ferrous strategy (M&A and Mining Database)
Century Food venture in China
Key activities going forward:
Launching and growing the mining database
Rigorously identifying mining M&A opportunities
Growing our food business in China
Continuing to position our massive iron ore deposits and advanced projects for market recovery
Potential multiple spin-outs to crystalize value in due course
Market cap of ~C$30M
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Thank You!Please visit our booth for a mining database demo and to check out your favourite mining companies!