MEXICO Leagold Mining is a La n American gold producer ng ... · ABOUT LOS FILOS The Los Filos mine...
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MEXICO CITY GUERRERO MEXICO LOS FILOS Leagold Mining is a LaƟn American gold producer headquartered in Canada. Leagold is creaƟng an intermediate LaƟn American gold producer through a ‘buy and build’ strategy. In 2017, Leagold acquired the Los Filos gold mine in Mexico, which in 2017 produced 191,000 ounces of gold. Los Filos is expected to produce 215,000 to 240,000 ounces of gold in 2018. Leagold is well-posiƟoned to achieve its plans with a strong shareholder base, a moƟvated management team, and deep relaƟonships in the gold mining sector. The company’s shares trade on the TSX under the symbol LMC and on the OTCQX under the symbol LMCNF. ABOUT LOS FILOS The Los Filos mine is located 230 km south of Mexico City and is accessible by paved roads and a private airstrip. Los Filos consists of two open pit mines – Los Filos and Bermejal – and an underground mine at Los Filos. It also has an opportunity to develop an underground mine at Bermejal as an expansion project. Development of the Bermejal Underground project began in Q3 2017 with the advancement of a portal and ramp. ACQUISITION OF BRIO GOLD In January 2018, Leagold announced its intenƟon to commence an unsolicited take-over bid for Brio Gold, a Canadian mining company with three operaƟng gold mines and one development project in Brazil. In February 2018, Leagold and Brio Gold reached an agreement to complete the transacƟon on friendly terms. Brio Gold represents a compelling opportunity for Leagold to acquire a porƞolio of producing assets with a strong growth profile. The acquisiƟon is expected to close in May 2018. TSX: LMC | OTCQX: LMCNF | WWW.LEAGOLD.COM BRAZIL PILAR FAZENDA BRASILEIRO RDM SANTA LUZ April 2018
Transcript of MEXICO Leagold Mining is a La n American gold producer ng ... · ABOUT LOS FILOS The Los Filos mine...
MEXICO CITY
GUERR E RO
M EX I CO
LOS FILOS
Leagold Mining is a La n American gold producer headquartered in Canada. Leagold is crea ng an intermediate La n American gold producer through a ‘buy and build’ strategy.
In 2017, Leagold acquired the Los Filos gold mine in Mexico, which in 2017 produced 191,000 ounces of gold. Los Filos is expected to produce 215,000 to 240,000 ounces of gold in 2018.
Leagold is well-posi oned to achieve its plans with a strong shareholder base, a mo vated management team, and deep rela onships in the gold mining sector. The company’s shares trade on the TSX under the symbol LMC and on the OTCQX under the symbol LMCNF.
ABOUT LOS FILOSThe Los Filos mine is located 230 km south of Mexico City and is accessible by paved roads and a private airstrip. Los Filos consists of two open pit mines – Los Filos and Bermejal – and an underground mine at Los Filos. It also has an opportunity to develop an underground mine at Bermejal as an expansion project. Development of the Bermejal Underground project began in Q3 2017 with the advancement of a portal and ramp.
ACQUISITION OF BRIO GOLDIn January 2018, Leagold announced its inten on to commence an unsolicited take-over bid for Brio Gold, a Canadian mining company with three opera ng gold mines and one development project in Brazil. In February 2018, Leagold and Brio Gold reached an agreement to complete the transac on on friendly terms. Brio Gold represents a compelling opportunity for Leagold to acquire a por olio of producing assets with a strong growth profi le. The acquisi on is expected to close in May 2018.
TSX: LMC | OTCQX: LMCNF | WWW.LEAGOLD.COM
BRAZ I L
PILAR
FAZENDA BRASILEIRO
RDM
SANTA LUZ
April 2018
CREATING AN INTERMEDIATE LATIN AMERICAN GOLD PRODUCER
• Post-transac on closing, Leagold will have four opera ng mines in two a rac ve mining jurisdic ons, plus two development projects to fuel the next stage of growth
• The expansion at Los Filos and the restart of Santa Luz have the poten al to take produc on to ~700,000 oz gold per year by 2020
STRATEGIC RATIONALE ACQUISITION OF BRIO GOLD
• Diversifi ca on from a single asset, single country
• Strong pla orm for expansion in Brazil and Mexico will help to further accelerate growth
• Compelling opportunity to acquire producing assets with a strong growth profi le
• All-share deal structure preserves cash for future growth; no fi nancing condi ons
• Transac on will more than double Leagold produc on based on combined Leagold and Brio 2018 guidance of approx. 450,000 oz
• Increased scale supports a valua on re-ra ng
• Cost savings through reduc on of Brio corporate costs
• Low comple on risk, with support in place from a majority of both companies’ shareholders
HEAD OFFICE
Suite 3043 – 595 Burrard Street, PO Box 49152 Vancouver, BC, V7X 1J1, CanadaTEL +1 604 398 [email protected]
INVESTOR RELATIONS
Meghan Browntel: +1 604 398 [email protected]
Richard Thomas SVP OPERATIONS
Peter Burger LOS FILOS GENERAL MANAGER
Bernade e D’Silva VP CORPORATE SERVICES AND CORPORATE SECRETARY
Meghan BrownVP INVESTOR RELATIONS
MANAGEMENT
Neil Woodyer PRESIDENT AND CEO
Doug Bowlby SVP CORPORATE DEVELOPMENT
Doug Reddy SVP TECHNICAL SERVICES
Harpreet Dhaliwal VP FINANCE AND CFO
Ashley BakerDIRECTOR, LEGAL AFFAIRS
BOARD OF DIRECTORS
Frank Giustra, Chair3
Russell Ball1,2
Gordon Campbell1,4
General Wesley K. Clark2,3,4
The Rt Hon. the Lord Garel-Jones2
Miguel Rodriguez1,3,4
Neil Woodyer
1 Audit Commi ee2 Corporate Governance and Nomina ng Commi ee3 Remunera on Commi ee4 Health, Safety and Environment Commi ee
PRO FORMA KEY DATA1,2
Head offi ce Vancouver, BC
Ticker TSX:LMC / OTCQX:LMCNF
Share price (Apr 10, 2018) C$2.70
Issued shares 263 M
Market cap (Apr 10, 2018) approx. US$567 M
Op ons 13 M
Warrants (strike price C$3.58) 2 M
Warrants to Brio shareholders (strike price C$3.70) 47 M
Fully diluted 325 M
Cash (Dec 31, 2017) US$73 M
Debt (Dec 31, 2017) US$239 M
PRO FORMA KEY SHAREHOLDERS2
SHARES M OWNERSHIP
Yamana Gold 58.1 22.4%
Goldcorp 34.6 13.3%
Orion Resource Partners 24.4 9.4%
Ruff er 10.3 4.0%
Neil Woodyer, CEO and Director 7.8 3.0%
Frank Giustra, Chair 5.7 2.2%
1 Numbers included in table are es mates only and assume all Brio restricted shares, 2017 RSUs, 50% of 2015 and 2016 RSUs, DSUs and op ons are converted at a projected exchange ra o of 0.922; fi nal exchange ra o to be determined on closing of the transac on
2 Numbers subject to Goldcorp exercising its equity par cipa on right under the April 7, 2017 Investor Agreement with Leagold
ANALYST COVERAGE
FIRM ANALYST TEL EMAIL
BMO Capital Markets Andrew Breichmanas +44 (0) 20 7246 5430 [email protected]
Canaccord Genuity Rahul Paul +1-416-869-7289 [email protected]
Clarus Securi es Jamie Spra +1-416-343-4204 jspra @clarussecuri es.com
GMP Securi es Steven Butler +1-416-943-6651 sbutler@gmpsecuri es.com
Sco abank Ovais Habib +1-416-863-7141 ovais.habib@sco abank.com
PRO FORMA LEAGOLD COMPANY PROFILE
