Capital Market Day - NEW FOUND GOLD CORP

Explicit Guidance:

• Cash Flow & CapEx: Fully funded to execute the strategy; $150M Queensway CapEx covered by current cash balances ($80M+) and debt drawdown options, leaving a comfortable cash balance by end of next year.
• Production Targets (Queensway):
  • Q4 2027: First Queensway material to mill.
  • FY 2028–2030: Target production of 100,000+ oz/year.
  • Future Growth: Targeting 200,000 oz/year as Phase 2 and 3 are built.
• Mine Planning (Hammerdown):
  • Q1 2027: Commissioning of permanent crusher and sorting plant.
  • 2026: Ramp-up to 16,000 tons/day of material movement to support next year's mine plan.
  • Milling: Targeting 87–88% recovery in coming months (currently 85–90%).
• Financial Efficiency:
  • AISC: $1,375/oz.
  • Cash Cost: <$1,000/oz (first 3 years).
  • NPV: $1.7B (base case); $100M NPV increase for every $100/oz gold price increase.
  • Initial CapEx: Low; Phase 1 uses contractor mining, transitioning to owner mining.
• Funding & Debt:
  • Debt: $105M (EdgePoint), 8.75% fixed rate, 3-year term; $35M second tranche available by year-end.
  • Equity: $115M raised (market buy deal) plus $20M US equity from EdgePoint.

Business-Segment Outlook:

• Queensway (Flagship):
  • Phasing Strategy: Phase 1 (Off-site milling at Pine Cove, 2,000 tpd capacity) → Phase 2 (On-site mill, 4,900 tpd, + underground) → Phase 3 (Expansion).
  • Geology: 110km Appleton Fault Zone; only ~3km drilled; significant upside in depth (down to 1km), Dropkick Zone (11km strike), and AFZ peripheral areas.
  • Resource Update: 38% increase to MRE; 1.92M oz (Meas/Ind) at 2.19 g/t; 600k oz inferred. Dropkick added 82k oz (Ind) + 147k oz (Inferred).
  • Mining Method: High-grade open pits (Phase 1) transitioning to underground (Phase 2) targeting 1,600 tpd feed to Gravity CIL.
• Hammerdown:
  • Commercial production active; generating free cash flow to fund growth.
  • 97% of Phase 1 material converted to Meas/Ind.
  • Exploration potential: Shallow depth (250m); six gold trends defined in the Bayvert district with room for resource expansion.
• Pine Cove (Processing):
  • Retooling to Gravity CIL circuit; expanding capacity to 1,400 tpd by end of 2027 to process Hammerdown and Queensway material.
  • Current recovery: 85–90%; Targeting 92% (Gravity CIL) and 88% (Flotation) for Queensway.

Market and Competitive Outlook:

• Grade Positioning: Queensway expected to host some of the highest-grade open-pit gold mines globally (Phase 1 average ~13 g/t).
• Cost Structure: Low upfront capital costs due to phased approach; cash flow from Phase 1 funds Phase 2 and 3.
• Shareholder Value: Transition from exploration to mid-tier producer; market cap ~$850M vs. potential for >100k oz/year producer.
• Talent Acquisition: Leveraging local labor market (90% of workforce from NL/Labrador) to reduce costs and attract workers returning from other jurisdictions (Fort McMurray/Nunavut).

Macro / Industry Outlook:

• Jurisdiction Risk: Management characterizes Newfoundland and Labrador as the "best" jurisdiction for mining due to government openness and community support.
• Permitting Timeline: Significantly faster than industry norms; Queensway environmental assessment expected to be in hand by Q1 2027 (vs. typical 2–2.5 years).
• Labor Market: Positive trend of returning skilled FIFO workers to local communities, mitigating labor shortages.
• Regulatory: Adhering to robust regulatory regimes with proactive environmental monitoring (striving to exceed standards).

Strategic Initiatives:

• Acquisition Integration: Full integration of Maritime Resources (Hammerdown + Pine Cove) achieved; systems and data transferable to Queensway.
• Infrastructure Expansion:
  • Q1 2027: Commissioning of permanent crusher and sorting plant at Hammerdown.
  • Queensway Site: Relocation of power lines (cost ~$6M) to enable direct power for Phase 2; new road construction underway.
  • Mill Expansion: Pine Cove capacity increase to 1,400 tpd by Q4 2027.
• Exploration Pipeline:
  • Focus on infill drilling (Inferred to Indicated) and step-out drilling in Dropkick and Bullseye projects.
  • Targeting new discovery zones and expanding resource depth at Queensway and the Green Bay/Favret Peninsula district.
• Sustainability & Social License:
  • Goal: Join Mining Association of Canada.
  • Community Hiring: Maintaining >90% local employment; "hub-and-spoke" model to support local economies.
  • Environmental: Progressive rehabilitation and water quality monitoring (specifically for Salmon rivers).

Risks and Headwinds to Outlook:

• Execution Risk: Transitioning from exploration to large-scale production; reliance on successful ramp-up of new teams and equipment.
• Technical Risk: Need to verify underground depth potential beyond 500m; metallurgical complexity of refractory ore (10–15% of total gold).
• Permitting: Although current timeline is optimistic, reliance on government approval for Phase 1 and subsequent phases.
• Market Volatility: Sensitivity to gold price fluctuations affecting NPV and project economics.
• Community Relations: Need to maintain continuous transparency regarding environmental impacts (e.g., salmon habitat) to prevent social license erosion.

Management Tone on the Future:

• Confidence: Highly optimistic; describes the opportunity as "generation of possibility" and "best is yet to come."
• Differentiation: Emphasizes speed to production (under 2 years from asset acquisition to gold pour) and low capital intensity compared to industry peers.
• Momentum: Describes the company's trajectory as a "fast transition" from exploration to producer, with "real testament" to government support and team execution.
• Valuation View: CEO suggests current market cap presents a "good entry point" for the company's transformation into a mid-tier producer.

Miscellaneous:

• Corporate Actions: Recently up-listed to TSX; first quarterly production results announced; revised PEA and MRE released.
• Shareholder Base: Institutional holdings increased from 0% to ~40% in one year; support from Eric Sprott and EdgePoint.
• Board Composition: New board appointed last year including Dr. Andrew Fury (former Premier of NL).
• Geological Analogs: Queensway compared to the Foster Village deposit (Eastern Australia) based on structure and age.