Earnings Call - GOLDMINING INC

Welcome to the second day of presentations here from the cloud stage and Nordic Funds and Mines. Today we will have 12 companies presenting and first out is Gold Mining Inc and Alistair Still, please go ahead. Thank you and good day. I'm Alistar Still, President and Chief Executive officer of Gold Mining Inc. I'm pleased to be here to present Gold Minding Inc., an exploration and development company with a catalyst-driven gold growth strategy from our portfolio of assets in the Americas, which has a rather unique position of being backstopped by a very strong balance sheet made up of cash and equities, which I'm happy to present to you today. During my presentation today, we'll be making certain forward-looking statements year please feel free to read that on our website when you have a chance. So really what makes us a unique America's opportunity that's the model I will present today and really I think what substantially differentiates gold mining is several factors. The first of which of course is that we have visible value support and that is we have a significant holdings of cash and marketable securities. As of this date, when this presentation was put together, some $220 million worth of cash and marketable securities. In addition to that, we've assembled a very strong technical team with professionals throughout the industry building and operating mines. So we have a team ready to build and execute in our strategy of moving projects forward. And of course, the projects we're moving forward is a multi-asset resource based with substantial scale throughout the Americas. We have over 13 million gold equivalent measured and indicated resource ounces, and an additional 9 million gold-equivalent inferred ounces. That makes us one of the larger-sized exploration development companies with projects in the Americas, and of course, all of that translates into a substantial valuation gap compared to our current market cap of just about $275 million. So considering the cash and equities, the multi-asset resource portfolio is really, we think, representing exceptional value for our shareholders. And we'll explain why that is and what steps we're doing to unlock value within that portfolio. So broken down a little closer, we can compare the total market capitalization to our marketable securities and cash. And we see there's a rather negligible plus or minus $50 million represented across seven projects. Again, substantial resources, but rather than treating them as one basket of resources, we are now rating and ranking and prioritizing, advancing core assets. And just this year alone, we've advanced two preliminary economic assessments, one being on our Lamina project, a gold copper project in Colombia, It has a NPV in excess of $1 billion. That's on one project alone. That's using a $3,500 per ounce gold price. And in addition, our San Jorge project in Pará State in Brazil has an NPV in excess $500 million, a project we're very excited about. In fact, we're launching that as a key priority, and I'll explain how we're doing that further today. And remember, that's just two projects. In addition to that, we have 100% owned ounces on a substantial portfolio throughout the Americas. And where does that portfolio occur? The map here shows where we are located. Our 100% own resources are located in Canada, Brazil, Colombia and Peru. And the makeup of those ounces, you can see we are very heavily weighted to be focused on gold. More than three quarters of the commodity exposure is with gold. However, there is some significant copper, and the copper co-occurs with our gold. And that's a meaningful component because copper is important not only economically, but also strategically as well. It has been declared a critical metal in many jurisdictions, including Colombia, where most of our copper occurs. We have some additional silver and antimony that also co-occur with our Gold projects as well, and particularly the antimony occurring with our Crucero project. Peru so to advance this portfolio I think we have an exceptional team we've assembled my background was almost 25 years working for major operating companies at mine sites building mine sites and doing corporate M&A activity from that background I've assembled a team around us we have an exceptional talented VP of exploration who came from the world's largest miner Newmont we've brought in for the first time a VP of corporate development and investor relations martin dumont who came from sandstorm and i am gold a good strong industry background as well we've now assembled an engineering team to advance our projects and we have the in-house capability to manage and monitor those projects to see that they're moved forward efficiently including for the first time earlier this year appointing a vice president of project development who has more than 30 years experience building and operating mines and of course right at the top of the team we have two co-chairmen extremely experienced in the industry our founder amir adnani has now created five companies including two in the uranium space and three in the gold space so an exceptional talented entrepreneur and businessman as well as david garofalo our co- chairman who formerly had led gold corp and hud bay and had been cfo at Agnico Eagle. So all the building blocks are in place to advance our portfolio. And that portfolio has already started an impressive track record of value creation. So far, we have four marketable securities or equities we carry on the balance sheet, two core holdings, the first two gold royalty and US Gold Mining Inc. These are entities that were actually IPOs from within our portfolio. So we took this asset rich portfolio, started to unlock value by spinning out new companies. Gold Royalty was launched just over five years ago on the NYSE. That was originally the 17 royalties that were written on assets from within the gold mining portfolio. They were added into a new vehicle. David Garofalo came in to lead that company. It raised $90 million in its initial public offering, which was a great endorsement of our assets underpinning that. Today, that company has grown substantially and rapidly its cash flowing has more than 260 royalties now and we're pleased that we own uh just under 10 percent of the equity in gold royalty a rapidly growing cash generating royalty company our second spin out was us gold mining that was launched just three years ago actually our very large gold copper project in alaska the whistler project was put into a nasdaq listed company launched raised money so they could focus activities build up a team and a board to stay focused on that asset we think it's a terrific jurisdiction we've retained approximately 70 percent of the equity in that but it's a public traded company and has just completed its largest ever exploration drill program this past summer and we're excited to be waiting for those asset results the remaining two assets Nevgold and Australian Mines Limited. These were assets or equities we obtained by a farm-out model where we've taken non-core assets, put them into experienced and capable partner hands so they can advance the assets. We stand to benefit by future contingent payments, milestone payments and we've retained significant equity so we can also enjoy the upside. It gives us a lot of flexibility in the balance sheet, we can take those non-core assets and use them to monetize, to advance our core assets, hence minimizing dilution to our shareholders. And if we just highlight briefly that holding we have in U.S. gold mining, I say this is an exceptional asset in Alaska, led by Tim Smith. They're doing terrific work there. This company put out its preliminary economic assessment or initial assessment earlier this year. First time on that project, it had over a $2 billion NPV, and that's using a rather conservative $3,200 per ounce gold price. Strong economic returns, a large resource base. However, only one of three of the resources in the or the deposits in the resource is captured in the PEA. So there's still plenty of upside to grow this resource, expand on it and create additional value for gold mining as we own just over 70% of that equity. However, I think our focus really has taken a fundamental change for the company. We've seen that we have a large portfolio of resources that can be easily overlooked if one doesn't look at the individual pieces within there. We have taken that exercise forward and we've started to unbundle that package further and so that we are now focused on core assets to move them forward and the start of that list is our san george project we put out an exceptional preliminary economic assessment earlier this year very strong economics over 500 million dollar npv excellent irr over 40 internal rate of return with a production profile some 50 000 ounces per year over an almost 11 year mine life a manageable capex to build it we think this is a cornerstone asset for us going forward. We're developing that pathway now and that clear line of sight to production because a couple of things really stand out on this project. One is the quality of the resource. You can see the indicated category resource is approximately one gram per ton, so that's a good solid grade for an open pittable deposit. On the map, on the right-hand side of the screen, you can see a large red area, which is our land package, over 46,000 hectares, So district scale potential, but importantly, running almost north-south through that land package, we see a major paved highway. So this has excellent infrastructure. It's approximately two kilometers from a power line and a major highway, giving excellent access, ease to move around for the exploration, and we think ease to lay out our development plan. We have moved into pre-feasibility studies. And in fact, just earlier this week, we announced our project director from the project, a local appointee, a Brazilian experienced professional who will lead and advance that project as we develop and lay out a pathway to that line of sight. And of course, this is a well-known district as well. The style and type of mineralization we have here, very similar to G-Mining, who have exceptionally built the Tokenton Xenomine, which is some 75 kilometers to the northwest of us in a very similar style of mineralisation. So, excited about the growth portfolio there as we develop that line of sight to production in Brazil. Similarly, our La Mina project in Colombia, a preliminary economic assessment out earlier this year, strong, robust economics, over a billion dollars, again a good solid gold equivalent grade, over one gram per tonne gold equivalent, a meaningful production profile here, over 150,000 gold equivalent ounces per year, again almost approximate 11 year mine life, exceptional project, and Colombia, we're very excited about the path forward for there, it's really opened its doors to development and a pro mining government has come into power there's some exceptional deposits and we think this is one we can develop in our pipeline following behind san george to further unlock value similarly we go through our portfolio and there's a couple of key assets which may become future development opportunities to unlock value to advance in the near term our core assets i would highlight our crucero project in peru a significant gold resource was in place here you can see the categories here over one million ounces of gold alone in the indicated category and over 700 000 ounces gold only inferred however earlier this year we identified antimony co-occurring with the gold and with the antimony included on a gold equivalent basis those numbers rise some 25 to 29 on a goal equivalent basis and antimony a key critical metal adding value for crucero and the final project just to highlight is our yellow knife project in northwest territories in northern canada a significant resource here exceptional grades north of two grams per ton for an open pittable deposit we're approximately 70 kilometers from the main capital city of yellow knife a significant past producer on our property over one million ounces at over one ounce per ton gold so past high grade producer in a camp that's already produced over 15 million ounces we think this is certainly a project for the future for us to unlock value from the yellow knife gold project a quick snapshot of the company itself the corporate snapshot very simple share structure we've been able to minimize dilution by this funding model where we've taken non-core assets we've advanced them spun them out and we're using some of those sources to minimize dilution as we advance our core assets the listings of equities here some significant shareholders to point out on the list uh largest uh holder is the gdxj the etf by van eck and there you go the sprot there's rougher commodity capital blackrock some well-known names and there are four analysts providing independent research the dual listing uh the ticker symbol in toronto easy to remember gold however we also have a listing in new york gldg which gives enhanced liquidity for our shareholders so in summary i'd like to wrap up by saying that we actually have a number of near-term catalysts of growth to show how we are closing that value gap for underappreciated assets as we develop particularly a clear line of sight to development and production at san george we have conducted an exploration earlier this year at san jorge those results will be coming out we'll be moving rapidly into pre-feasibility studies we'll be outlining that with upcoming announcements with our newly appointed project director the infill drilling that will accompany a pre- feasibility we'll also be providing details of that to really start showing that pathway forward i also mentioned our 70 ownership and us gold mining that company has just completed its largest ever drill program this past summer almost 7 500 meters we're eagerly anticipating results from that in the near term as well to create additional value for the whistler gold copper project through our 70 ownership of us gold mining and again next in the pipeline lamina is a strong preliminary economic assessment significant gold and copper in colombia which we think is a robust jurisdiction and crucero and yellowknife projects of the future our ability to unlock additional value which we can use to fund our core projects so an exciting story to tell lots of growth ahead lots of catalysts and i look forward to providing further updates on gold mining as we advance towards development and production at our san george project thank you thank you so much alistair a couple of questions from my side um how do you plan to advance your pea stage projects like lamina and san georges toward full production or monetization it's a great question and certainly is an important milestone we've now crossed is that we've embarked on pre-feasibility studies at our san jorge project we have appointed a very qualified professional as a project director that was just announced earlier this week he can lead those activities we will we will be mobilizing drilling activities to do infill drilling to add additional confidence to the resource to upgrade the inferreds provide metallurgical work do hydrogeological testing so we can have all those components ready for the pre- feasibility work about to start and as that work continues we of course will build up greater certainty to the timelines and the pathway to to production particularly at focused on on san george and you mentioned also the inclusion of antimony uh very interesting at the crucero deposit how will that improve the project strategic value would you say and go the equivalent equivalent resources yes it's a great question and that the the antimony had always been known there but it was only recently that we realized that the critical value or the strategic value of antimony became so apparent so we did create a new updated mineral resource estimate this year at crucero we provided separate gold and antimony mineralogical models geological models that was incorporated into the new resource which actually added between 25 to 29 percent gold equivalency to the total so yes it added numbers but more importantly added a critical component where many companies are searching for antimony, searching for a reliable source in an accessible location, we think that provides a lot of optionality to Crucero, particularly as it right now is not one of our core projects, but it could be an excellent opportunity to bring in a partner to add value where we can advance our more core assets. Alistair, thank you so much for coming here. Thank you for having me.