going for gold - liongold corp · october 2013 7 liongold corp-going for gold dynamic, expanding...
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1October 2013
Going for Gold
2October 2013
Disclaimer
This document may contain statements that constitute “forward-looking statements”, including, but not limited to, statements
relating to the implementation of strategic initiatives, and other statements relating to our future business development and
economic performance. While these forward-looking statements represent our judgments and future expectations concerning
the development of our business, a number of risks, uncertainties and other statutory requirements may render actual
developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general
market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets,
currency exchange rates and interest rates, (3) competitive pressures, (4) technology developments, (5) changes in the financial
position or creditworthiness of our customers, obligors and counterparts, and changes in the developments in the markets in
which they operate, (6) legislative developments, (7) management changes and changes to our business group structure and
(8) other key factors that may adversely affect our business and financial model.
We are not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking
statements whether as a result of new information, future events or otherwise. The technical and financial information presented
are best estimates of management and are not JORC or NI43-101 compliant unless otherwise stated. Investors are cautioned
not to place undue reliance on this information and not rely solely on the information presented for purposes of making
investment decisions. This material may not be reproduced, distributed or transmitted to any other person or incorporated in any
way into another document or other material without the prior written consent of LionGold.
3October 2013
Castlemaine Goldfields,
Ballarat Mine Victoria, Australia
757,700 ounce Gold Resource at 2 tenements, 40-50,000 oz
production target, 100%-owned
Signature Metals, Owere Mines,
Konongo Ashanti Gold Belt,
Ghana
1.47 million ounce Gold Resource, 77%-owned
1.47 million ounce Gold
Resource, 76%-owned
Minera Nueva Vista,
Amayapampa, Bolivia
1.28 million ounce Gold Resource including 787,300 Reserves,
100% owned
Citigold Corporation, Charters
Towers, Queensland, Australia
11 million ounce Gold Resource, incl620,000 Reserves,18%-ownedUnity Mining
Tasmania & NSW, Australia
623,000 oz Gold Resource at 3 tenements, incl 354,000
Reserves, 50,000 oz production, 13% owned
Projects in the Americas, Africa, Australia
1 - LionGold will subscribe to A1 shares in two tranches. The second tranche of the placement, which amounts to 5% of A1′s share capital, is subject to approval by A1 shareholders and regulatory agencies.
Acadian Mining Corporation
Nova Scotia Goldfields Canada
1.33 million ounce Gold Resource at Fifteen Mile Stream & Beaver
Dam, 100% owned
Arrangement with SOE SINOMA Group’s
CBMI Construction
Key Mining Assets…Today- 7.0 million ounces Gold Resources since March 2012 1
281,000 Gold Resource15% owned
A1 Consolidated Gold
Victoria, Australia
4October 2013
Company Project Resources(ounces)
Reserves(ounces)
Early stage
Exploration
Advanced
Exploration
Feasibility Development Production
Castlemaine
Goldfields 100%
Ballarat 71,700 -
Castlemaine 686,000 -
Minera Nueva Vista100% Amayapampa 1,280,000 737,300
Acadian Mining100%
Beaver Dam 950,000 -
Fifteen Mile Stream 383,000 -
Signature Metals77%
Konongo 1,470,000 -
Brimestone Resources
100%Penny’s Find 52,300 -
Citigold Corporation18%
Charters Towers 2,120,400 110,000
Unity Mining13%
Henty 296,000 121,000
Darques Reef 327,000 233,000
A1 Consolidated
Gold 15%A1 Gold Mine 281,200 -
LionGold Project Pipeline- Progressing existing projects
Production figures represent annualised targets.
Figures are extracted from previous JORC- and NI43-101-compliant announcements. Resources include Reserves. For Projects in which LionGold has a
controlling stake, the Resources and Reserves are based on 100% of the Project’s holding. For Citigold Corporation, Resources and Reserves are based on LionGold’s
18% equitable holding of the Charters Towers Project’s 11 million ounces of gold Resources, inclusive of 620,000 ounces of Reserves.Take over of 5% of A1’s share
capital is subject to approval by A1 shareholders and regulatory agencies.
Production 40-50,000 oz pa
Exploration on-going
Infrastructure & mine developmentProduction 2015: 19,000 oz pa 2018: 85,000 oz pa
Scoping study end 2013Production potential 2017
Scoping study completion end 2013Exploration on-going
New operations management in place
Exploration on-going
Production 50,000 oz pa
Production 2015: 50,000 oz pa
Production 2014/2015: 35,000 oz pa
5October 2013
Geographically diversified- Risk management
Developed – 61% Stable business environment
Infrastructure, skilled labour, funding
Can be high-cost
Australia, Canada Established mining industry
Excellent skills-base
Many junior miners
• Preference for friendly / developed jurisdictions
• Increasing opportunities for regional consolidation
No geographic
limitations, but -
Friendly Emerging – 21% Bigger opportunities
Lower entry cost
Ghana, Ashanti Gold Belt Stable, foreign-friendly
Established gold industry
Highly prospective, scalable
“Challenging” – 18% Good value
Bolivia Relationships key
Profile by Resource Ounces“De-risking”
Developed
Friendly Emerging
“Challenging”
Canada19%
Australia57%
Ghana33%
Bolivia5%
Canada5%
Australia42%
Ghana21%
Bolivia18%
Canada19%
Investment
Resource
6October 2013
v
Exploration
FY2012
FY2013
FY2014
Non-core business divestment begins
Indices inclusion
Project screening
Fund-raising for gold
business – S$100m
Institutionalisation
of shareholder base
Unity Mining
Ounces-in-the-Ground
Signature Metals
Castlemaine Goldfields
Brimstone Resources
Citigold Corp
Minera Nueva Vista
Acadian Mining
New shareholders
Business review
Proposed change of corebusiness to precious metals
FY2011
Production
Acquisition
Focus
–Today‒
Resources7.0m oz
Reserves0.9m oz
Production40-50,000 oz
~
8 Projects
4 Countries
A1 Gold Mine Ore processing agreement
CBMI MOU
Team-building
Business integration
Acadian Mining
18%
13%
9%
Fast-tracking growth- Response to improved acquisition opportunities
A1 Consolidated 15%
77%
7October 2013
LionGold Corp- Going for Gold
Dynamic, Expanding Operations
• Initial growth acquisition-led,
value accretive
• 7.0 million oz acquired from FY2013
- eight total, wholly-owned in production
- S$210 million value, <US$30 per oz
• Production focus going forward
- Target raised to 200,000 vs 120,000 oz
- Growing opportunity: regional consolidation
0 2 4 6 8 10
Current
FY2013
FY2012
FY2011
Reserve Resource
Targetend 2014
Resource & Reserves
(million ounces)
0 50 100 150 200
Current
FY2013
FY2012
FY2011
Production
(‘000 ounces annualised)
Targetend 2014
FY2011
FY2012
FY2013
Current
Reserves Resource
FY2012
FY2011
FY2013
Current
8October 2013
Technical Committee
Audit CommitteeRemuneration Committee
Nomination Committee
SignatureMetals
77%
CastlemaineGoldfields
100%
100%
18%CitigoldCorporation
Operations
BrimstoneResources
OwereMines
70%
Minera Nueva Vista
100%
Board of Directors
LionGold
Corp Ltd
Investment
Tan Sri Dato’ Nik Ibrahim Kamil
Non-Executive Chairman
Over 45 years managerial and business experience across a range of industries, including mining, media, financial, energy and infrastructure.
Asiasons WFG Financial Chairman. Actively involved in resource M&A in Asia and Africa and banking in sub-Saharan Africa.
Professionally qualified accountant with affiliations in the UK, Australia and Malaysia with experience in Australia, Southeast Asia and South Africa.
Twenty years of legal practice with a broad range of experience ranging from litigation and conveyance to corporate and commercial matters.
Accountant with extensive experience in project development, finance and business development throughout Asia.
Nicholas NgChief Executive Officer & Managing Director
Raymond TanGeneral Counsel & Executive Director
Dato’ Md Wira DaniAbdul Daim
Non-Executive Director
RolandSelvanayagam
Independent Non-Exec Director
Dr Denis ClarkeIndependent
Non-Executive Director
Gary ScanlanIndependent
Non-Executive Director
Lynne Ng Su LingIndependent
Non-Executive Director
Bernard SooIndependent
Non-Executive Director
Former CEO of DMG Partners and MD of Citicorp Investment Bank, Singapore. Previously head of Asia investment banking at Rabobank.
Over 30 years legal experience including 15 years with Robert Wang & Woo LLP where he was Partner and Head of the Corporate & Commercial Department.
Over 40 years experience in senior technical, financial and management roles in the mining industry globally, including with Rio Tinto and Plutonic.
Ten years with PwC, followed by more than two decades evaluating, developing, financing and administrating mining projects globally.
Acadian MiningCorporation
100%
Unity Mining
13%
Group Structure- As at October 2013
A1 Consolidated
15%
9October 2013
CEO & MDNicholas Ng
Board of Directors
General CounselRaymond Tan
COOMatthew Gill
• Also Executive Director and Company Secretary.
• Provided legal advisory to LionGold since 2007.
• Over 30 years legal experience including 15 years with Robert Wang & Woo LLP, where he was Partner, and Head of the Corporate & Commercial Department.
• 19 years in investment banking and corporate advisory in Asia-Pacific.
• Former Corporate Finance, Co-Head for DMG Partners and Corporate Finance Head for HL Bank.
• Former CFO of SGX-listed Darco Water Technologies.
• Mining engineer with over 30 years experience in all aspects of exploration and mining in Australia, India and Papua New Guinea.
• Turned around Ballarat Mine for Castlemaine and the Beaconsfield Mine, Tasmania.
• Australian Mine Manager of the Year for 3 consecutive years.
•17 years as a corporate lawyer, including acting as general legal counsel for public-listed companies.
• 8 years actively involved in the setting up of iron ore and gold mining operations around the world, from Mali to Mongolia.
• Spearheading LionGold’s M&A effort globally.
• 29 years in financial markets.
• Former CEO of DMG Partners, and MDof Citicorp Investment Bank, Singapore. Previous Head of Asia Investment Banking at Rabobank.
• Concluded numerous IPO, M&A, privatisations and other financial transactions in Asia-Pacific.
CFOBrendan Goh
Corporate & Business Development Director
Peter Chen
• Audit Committee
• Remuneration Committee
• Nomination Committee
• Technical Committee
Corporate Finance and Legal Teams
now in-house
Global Technical Team
• Matthew Gill – Australia• Andrew Lawry – Global Projects• Chris Gbyl – West Africa• Mike Clarke – Bolivia• Pending – Canada
New Leadership Team- Seasoned financial, legal & technical expertise
10October 2013
Financial snapshot- As at 30 June 2013
Austere budgeting, rigorous cost controls, standardised reporting
SGD’ million 30.06.2013 30.06.2012
Revenue 34.8 25.8
COGS (33.0) (22.2)
Gross Profit 1.8 3.6
Total loss after tax (0.5) (7.2)
Loss attributable to minority
interests(3.1) (2.1)
Gain/(loss) for the period
attributable to equity holders of
the company
2.6 (5.1)
SGD’ million 30.06.2013 30.06.2012
Current assets 126.0 131.3
Non-current assets 252.0 257.2
Total Assets 378.0 288.4
Current liabilities 46.9 45.4
Non-current liabilities 72.6 66.6
Total Liabilities 119.5 112.1
Net Assets 258.4 276.3
Gold operational update Q2 FY2014 Q1 FY2014
Gold produced (ounces) 13,845 9,431
Operating cash cost A$666 A$807
All-in cost A$1,055 A$1,210
11October 2013
Operating Objectives- Balance & Prioritise
Mine Profile
Resource expansion
Reserve replacement
Production rising, reliable
Increasing Life of Mine
PrioritiseCommunity
Environment, Health, Safety
Education & Training
P r o d u c t i o n E f f i c i e n c y
12October 2013
EndProduction
Exploration
Targeting the “Sweet Spot”- Producing / near-producing assets
Mining Project Life Cycle
Pre- FeasibilityScoping Study
Feasibility Study
Extension
Va
lue R
isk
5-10% 10-20%
BrownfieldsGreenfields
Indicative Capital Allocation
70-85%
Maximise Value,
Mitigate Risk
Development
Production
13October 2013
Acquisition Strategy: Tweaked- Targeting scalable production
Better opportunities from April 2013• Accelerated streamlining by gold majors
- Divestment of non-core assets
• Realistic valuation expectations by juniors
• More favorable environment for negotiation,cost-cutting, capital discipline
• Gold production 50-100,000 oz pa- or clear path to ramp-up, 6-12mos
• > 1 millionoz gold Resource- inclusive of established reserve base- 5 years+ life-of-mine
• Organic cashflow growth- < US$1200 per ounce production cost
- Strong working capital position
• Up to US$100 million investment
•SGX-listed
• De-risking of assets
- Geographic
- Funding access
- Lower dilution risk
• Broader opportunities
- Bigger, global group
LGC ALLURESCREENINGGold producers globally
14October 2013
Results delivered- and going forward
Project AcquiredCastlemaine Goldfields (100%)
Signature Metals (77%)Minera Nueva Vista (100%)
Brimstone Resources (100%)
Acadian Mining (100%)
Acquire
“Gold in the Ground”
FY2013 FY2014 Dec 2014
Divest Green Businesses
Expanded Funding OptionsCBMI Construction MOU
AcquireProducing Assets
10 millionoz Resource2 millionoz Reserve
200,000 oz pa Production
5 year Life of Mine
OngoingInitiatives
Shareholder Return
Minimise Volatility
Raise Transparency
Mitigate Balance Sheet Risk
Strategic Investments
Citigold Corporation (18%)
Unity Mining (13%)
GlobalGold Co
Integrate resourcesFortify team, alliances
Organic production
growth
Divest China Business
Strategic Investments
A1 Consolidated Gold (15%)
15October 2013
Company
Name
Country of
listing
Market Cap
(US$/M)
Enterprise
Value (US$/M)
Resource
(Au Moz)
EV/
ResourceOperations
CNMC SGX 75 74 0.50 148 Malaysia, Sokor in production
G-Resources HKSE 765 780 8.10 96 Indonesia, Martabe, in production
Zhaojin Mining HKSE 2,492 3,795 22.20 171 Projects in China, in production
China Gold HKSE 1,080 1,308 8.10 161Projects in Tibet, Inner Mongolia, in
production
Zijin Mining HKSE 8,027 11,789 44.80 263 Projects in China, in production
LingBao Gold HKSE 170 794 3.00 265 Projects in China, in production
Zhongjin Gold SSE 4,629 5,493 15.00 366 Projects in China, in production
Shandong Gold SSE 5,069 5,969 11.00 543 Projects in China, in production
Median Valuation 1,786 2,551 9.55 217
LionGold Corp SGX 139 116 7.00 178 Projects: Australia, Ghana, Bolivia
and Canada
Global Gold Co listed in Asia- vs single-project / country focus
10 October 2013
16October 2013
Gold supply / demand dynamics- Driven by emerging market consumption
7%
ETF
9%
Tech
12%
Central Bank
72%
Consumer
Source: Thomson Reuters GFMS, World Gold Council
Gold Supply
Net Seller
Net Buyer
1990 2008 2013E
0
(600)
600
Source: CPM Group
To
nn
es
Recycled
Mined
36%
64%
Source: Thomson Reuters GFMS, World Gold Council0 2000 4000 6000 8000 10000
United Kingdom
Switzerland
Netherlands
France
Italy
Germany
USA
Thailand
Indonesia
Taiwan
South Korea
Japan
India
China
Source: World Gold Council
Emerging & Japan3,401 tonnes
2.6% of total reserves
US & Europe18,384 tonnes
59% of total reserves
Gold Demand
World Gold Market 2012: 4,405 tonnes
Jewellery Demand
Bar & Coin DemandCentral Bank Reserves
Central BanksNet Buyers from 2008
To
nn
es
To
nn
es
Source: World Gold Council
0
100
200
300
400
500
600
700
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
India
GreaterChina
FarEast
MiddleEast/Turkey
RestofWorld
US
EuropeexCIS
0
100
200
300
400
500
600
Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
India
GreaterChina
FarEast
MiddleEast/Turkey
RestofWorld
US
EuropeexCIS
17October 2013
18October 2013
Castlemaine Goldfields Limited- High grade nuggety ore
Excellent facilities in established gold
region, central Victoria, Australia
Five concessions in total with JORC Resources in Ballarat (producing) and Castlemaine
Ballarat Mine production target 40-50,000 oz
Life of mine + production enhancement
150,000 tpa ore processing agreement with A1 Gold Mine- Share of gold revenues from A1 Gold Mine- Toll treatment rate per tonne of ore processed
Resource Gold
(ounces)Tonnage(tonnes)
Grade(g/t)
Castlemaine 686,000 2,760,000 7.7
Ballarat 71,700 263,000 8.5
Total 757,700
Figures indicate historical gold production at Castlemaine Goldfields’ five
tenements 100% owned by LionGold from October 2012
Figures shown are based on previously quoted JORC-compliant statements
Ore processing capacity of 600,000 tpa
Castlemaine Goldfields’ Tenements
Gold operational update Q2 FY2014 Q1 FY2014
Gold produced (ounces) 13,845 9,431
Operating cash cost A$666 A$807
All-in cost A$1,055 A$1,210
19October 2013
Flagship Owere Mines (70% owned) holds
The Konongo Gold Project, Ghana
192 km2 concession in Ashanti Gold Belt- 16 known gold deposits, 12 km strike- 80 km along strike from Ashanti AngloGold’s
>200,000 ounce pa, 30 million ounce Obuasi mine
Substantial untapped high-grade UG potential- Historic production of 1.6 million ounces
at 11.8 grams per tonne, mostly from UG
Scoping study completion planned end 2013
- Exploration on-going, ramped up in Feb 2013
Signature Metals Limited- Prioritising exploration targets
Konongo
Gold
Project
Resources1Gold
(ounces)Tonnage(tonnes)
Grade(g/t)
Measured & Indicated 779,600 13,100,000 1.9
Inferred 687,100 10,500,000 2.0
Total 1,466,700
77% owned by LionGold as at April 2012 and listed on the ASX.
Figures shown are based on previously quoted JORC-compliant statements.
Konongo Gold Project
20October 2013
Minera Nueva Vista S.A.- Infrastructure development underway
Amayapampa ProjectBustillo Province, Bolivia
Resources of 1.28m oz, inclusive of 787,000 Reserves- NI 43-101 compliant
Owns the rights to overlapping concessions totaling34 km2, located 290 km southeast of La Paz
Excellent management team in place
“Starter pit” phase 1, 19,000 ounces annualised 2015
- Review phase 2 for 95,000 ounce open pit mine
Amayapampa
CategoryGold
(ounces)Tonnage(tonnes)
Grade(g/t)
Reserves
Probable 787,300 18,900,000 1.3
Resources
Indicated 979,637 26,160,000 1.2
Inferred 300,363 8,750,000 1.1
Total Resources 1,280,000
100% owned by LionGold from December 2012.
Resource is inclusive of Ore Reserves. Figures based on previously quoted NI43-101-compliant statements
21October 2013
Acadian Mining Corporation Limited- Inexpensive foothold in North-America
Nova Scotia ProjectsCanadian tenements in Nova Scotia
Under-explored gold-bearing province
- Limited modern exploration
Scoping study for open pit underway
- Completion due end 2013- Potential production 3 years thereafter- Test mining options under consideration
Attractive royalty portfolio
Regional consolidation potential
Figures based on previously quoted NI43-101-compliant statements.
PropertyGold
(ounces)Tonnage(tonnes)
Grade(g/t)
Beaver Dam
Indicated 446,000 849,000 1.5
Inferred 504,000 972,000 1.5
Fifteen Mile Stream
Indicated 383,000 561,000 1.6
TOTAL 1,333,000
22October 2013
A1 Consolidated Gold- 15% Strategic investment, alliance with Castlemaine Goldfields
Walhalla Goldfield, Victoria, Australia
Advanced project ready for production
Mine plan review has focused on the 1400 Stockwork zone
below the 1420 level
- Reported Mine inventory designed for 6 years at a peak
production rate of 150,000 tpa to December 2019
Progressive increase in mining rate
150,000 tpa ore processing agreement with CastlemaineGoldfields- Share of gold revenues from A1 Gold Mine- Toll treatment rate per tonne of ore processed
Resource Gold
(Ounces)Tonnage
(tonnes)Grade
(g/t)
Indicated 41,200 250,000 5.1
Inferred 240,000 1,170,000 8.4
Total 281,200 1,420,000 6.2
LionGold will subscribe to 20% of A1 shares in two tranches. The second tranche of the placement, which amounts to 5% of A1′s share capital, is subject to approval by A1 shareholders and regulatory agencies.Figures shown are based on previously quoted JORC-compliant statements
A1 Consolidated Golds’ Tenements
23October 2013
Citigold Corporation Limited- 18% strategic investment, single largest shareholder
Charters Towers ProjectCharters Towers tenements near
Townsville, Queensland
“Australia’s highest grade gold field”
- 56 mineral holdings spanning >1,500 km2
- Significant Life of Mine potential, >10 years
LionGold now with two board seats
Ripe for review, revamp- Secured A$100 million in funding mid-2013- New operations management
ASX-listed, 18% owned by LionGold from December 2012.
Refer to www.citigold.com for JORC-compliant statements.
Indicated Resources includes Probable Reserves, and Inferred Resources includes Indicated Resources.
Charters
Towers
CategoryGold
(ounces)Tonnage(tonnes)
Grade(g/t)
Reserves
Probable 620,000 2,500,000 7.7
Resources
Indicated 780,000 3,200,000 7.6
Inferred 11,000,000 25,000,000 14
Ore processing capacity of 340,000 tpa
24October 2013
Unity Mining Limited- 13% strategic stake, single largest shareholder
Unity Mining, ASX-listed
Australian gold resources totaling 731,000 oz
Annualised production targeted to double by year-end to 100,000 oz
Cash of A$27.5 million as at 30 June 2013, no debt- A$23 million revenue from the sale of 16,860 ounces of
gold in 3Q FY2013
Unity’s Primary Projects
13.2% owned by LionGold from May 2013, single largest shareholder
ProjectCategory Gold
(ounces)Tonnage(tonnes)
Grade(g/t)
HentyReserves 121,000 780,000 5.3
Resources 296,000 2,060,000 5.1
Dargues
Reef
Reserves 233,000 1,390,000 5.2
Resources 327,000 2,170,000 5.3
GoldStone Resources – 35%
- 3 West African exploration project, including a 602,000 ounceGhanaian gold project locate near LionGold’s Owere Mine
- London-listed
Henty Mine, northwest Tasmania – 100%
- Established mine, producing 50,000 oz per year
- Cash cost of A$979 per ounce, 5 year + LOM
Dargues Reef, NSW – 100%- On target to produce 50,000 oz per year annualised by early
2014, based on recent announcements.
Figures shown are based on previously quoted JORC-compliant statements
25October 2013
LionGold Corp Ltd59 Mohamed Sultan Road
Sultan Link 02-08
Singapore 238999
T: +65 6690 6860
F: +65 6690 6844
www.liongoldcorp.com
Thank you
w w w . l i o n g o l d c o r p . c o m