Endomines AB (publ) AGM 20th April 2017

Transkript

1 Exploring the true potential of the Karelian Gold Line Endomines AB (publ) AGM 20th April 2017

2 Disclaimer Exploring the true potential of the Karelian Gold Line Statements in this presentation which are not purely historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are forward-looking statements. Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a presenter s aid and support - not a standalone document. Please note that such forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in Finland, and lack of appropriate funding, all of which could among other things, prevent any of the forward looking statements in this presentation from coming to fruition or lead to a delay in the development of mining operations. 2

3 Endomines AB in a nutshell Exploring the true potential of the Karelian Gold Line Quoted on NASDAQ OMX Stockholm and OMX Helsinki Focus on gold production and exploration along the Karelian Gold Line - 40 km of gold prospective greenstone belt Production target 2017: kg gold/year Long term development plans implemented Strong Social License to operate Finland Gold Industrial mineral Ilmenite Gold Pampalo Karelian Gold Line Helsinki 3

4 Pampalo in the Centre of the Karelian Gold Line Discovered in 1990 and explored by Finnish Geological Survey Developed by Outokumpu as an open pit and decline operation down to 280m underground Historical production 115,000 tons of ore 15.3 g/ton strong indication of high grade deposits in the area Efficient production plant: The initial design capacity of 230,000 tpa in 2011 was successfully upgraded in 2013 to > max 450,000 tpa High utilization rate 93% Personnel Significant local employer 70 % locals 45 own staff and 30 contractors Strong social license and local support for operations Company applies Zero Harm-policy in all operations Good safety performance No environmental issues 4 Exploring the true potential of the Karelian Gold Line

5 Pampalo Gold Mine Mucking Ventilation raise drifting 14 Apr Apr-17

6 Raise Pampalo mining principle Longitudinal projection Drifting Long hole drilling Ore Backfilling Cable bolt holes for ground support Blasting rings Charging RC loading Unconsolidated backfill CRF Diamond drill holes with assays Horisontal pillar 20 m Cross section

7 Pampalo processing 4 th Sept 2012 Trucking Flotation Mine Drainage Water Crusher Feeder Fines Classification Coarse fraction Screen Tailings Storage Facility Crushed ore stockpile Grinding mills Gravimetric circuit No cyanide or excess strong acids used No harmful materials in tailings No Acid Mine Drainage (AMD) expected ~100 % water recirculation Gravimetric concentrate % Au Flotation concentrate ~ t/a; g/t Au 7

8 µg/l mg/l µg/l Environmental Exploring the true potential of the Karelian Gold Line Zero Harm policy: - No accidents - No adverse environmental incidents Solids in the discharge water Nickel in the discharge water Ni-content Solids Limit Limit Potable water 0 0 Discharge water ph 12 Leväkasvun aiheuttama poikkeama 10 ph 8 Lower limit 6 Upper limit Arsen in the discharge water As content Limit Potable water 8

9 LTIFR 1/2017 Pampalo safety statistics - LTIFR Zero is impossible Zero is a dream Zero Harm policy: - No accidents - No adverse environmental incidents 30 Industry avg. 20 Zero by chance Goal: Zero by choice Endomines Contractors Total 10 0 LTFIR= accident number / working hours 9

10 PRODUCTION selective mining Full Production Selective mining Key production figures Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1-Q4 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1-Q4 Q1/2017 Milled ore (tonnes) Head grade (Au gram/tonne) 2,1 1,8 2 1,7 1,9 2,1 2,4 2,7 3,1 2,6 2,7 Gold recovery (%) 83,8 84,1 82,7 81, ,2 82,8 85,3 83,0 82,9 83,4 Hourly utilization (%) 82,8 91,5 93,3 80, ,3 37,7 34,0 43,5 37,6 41,3 Gold production (kg) 131,3 126,6 153,3 118,5 529,5 58,5 73,7 83,0 109,8 325,0 97,9 3,5 3,0 2,5 2,0 Au g/t 1,5 1,0 0,5 Full production 153,3 131,3 126,6 118,5 2,1 2,0 1,8 1,7 Selective mining 3,1 2,7 2,4 109,8 2,1 83,0 73,7 58,5 97,9 2, Au kg ,0 0 Gold production (kg) Head grade (Au gram/tonne) Apr-17

11 OPEX / Eur milled tonn Cash Cost Benchmark to Kittilä Gold mine 100 Benchmark OPEX Eur/milled tonn PAMPALO OPEX/ (EUR/tonne milled ore) KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPEX/ (EUR/tonne milled ore) Linear (PAMPALO OPEX/ (EUR/tonne milled ore)) Linear (KITTILÄ GOLD MINE (truck hoisting, Nordic region) OPEX/ (EUR/tonne milled ore)) Pampalo operating cost /tonne is lower when benchmarked against similar (much larger 10x) underground operation in the Nordic Region Pampalo Cash Cost is higher why: Cash Cost = OPEX / sold ounces Head grade is the key factor high grade-more ounces Apr-17

12 Pampalo Ore Reserves and Mineral Resources development (longitudinal projection) Year 2010 Year

13 UG Core Drilling (Inflill & Exploration) Areas to be drilled in 2017 North / D-lens Exploration drilling 1000m South Exploration drilling 500m S-lens Definition/Infill drilling 2000m Area Exploration drilling 5100m /Q2 Production area Infill drilling 5700m Apr-17

14 Surface Exploration Section 5450, looking North AT/Mafic volc F2 fold hinge target Model Earth East Structure Exploration drilling 1000m (3-4 drill holes) S1A: 0.22 g/t Au S1 S0 layering Model Earth/Ian Neilson interpretation Apr-17

15 Pampalo Near Mine Exploration Potential Pampalo NW Indicated resource g/t Au Korpivaara Tonalite Pampalonlammit 2016 discovery Inferred resource g/t Au Interpreted target Model Earth Pty Ltd/Australia Pampalo Underground Mine F2 fold hinges Pampalo East / Open Pit Ore reserve: g/t au Indicated resource g/t Au Inferred resource g/t Au Apr-17

16 Finansiella nyckeltal Sammandrag av årets resultat January-december MSEK /- EU (flotationskoncentrat) 88,9 122,5-33,6 Norge (gravimetrisk guldkoncentrat) 12,2 28,5-16,4 Intäkter från guldkoncentrat 101,1 151,0-50,0 Effekt av realiserat resultat på guldprissäkring 0,0-38,1 38,1 Summa nettoomsättning 101,1 113,0-11,9 Övriga intäkter 1,0 0,5 0,5 Summa intäkter 102,1 113,5-11,4 Resultat före avskrivningar mm -9,2-62,8 53,6 Avskrivningar och nedskrivningar -95,4-88,9-6,6 Resultat från säkringsinstrument 1,5-5,0 6,4 Rörelseresultat -103,1-156,6 53,5 Resultat efter skatt -125,0-165,0 39, Apr-17

17 Why Endomines? Great exploration potential along the Karelian Gold Line Solid mining and processing operations Experienced personnel Social License to Operate Zero Harm policy Safety Environmental Stable shareholders with a positive long term view A company open for Merger & Acquisitions Karelian Gold Line compared to Southern Cross belt 17 Data from Mineral Titles Division of the Western Australia Department of Mineral and Petroleum Resources. Exploring the true

18 Öppet Hus & Aktieägardag Fredagen den 19 maj 2017 Pampalon kultaharkko

19 Valberedningen föreslår val av Michael Mattson till ny styrelseledamot Michael Mattsson (f. 1973) Utbildning: Dipl. MSc inom finans från Handelshögskolan i Stockholm Övriga uppdrag: Styrelseledamot i Copperstone Resources AB. Innehav i Endomines AB: aktier Erfarenhet: Professionell investerare och entreprenör (2013- Svenska Pannkakshuset AB, Åre Skilodge AB), företagsöverlåtelser (M & A) under talen på Enskilda Securities/Blackstone Group i New York, Enskilda Securities Corporate Finance i Stockholm samt Kaupthing Fonder, Investment Banking & Affärsutveckling i Stockholm Valberedningen ansett Michael Mattsson som oberoende i förhållande till bolaget och bolagsledningen respektive större aktieägare i bolaget enligt 4.4 och 4.5 i Bolagskoden Apr-17

20 Tillträdande ny verkställande direktör för Endomines AB Saila Miettinen-Lähde (f. 1962) Utbildning: Civilingenjörsexamen från Tampere tekniska universitet Övriga uppdrag: Styrelseledamot i Outokumpu Oyj sedan 2015 Erfarenheter: vice VD och ekonomidirektör för Talvivaara Mining under åren ekonomidirektör för F-Secure, ett It-företag verksamt inom cybersäkerhet och noterat vid Nasdaq Helsinki Saila tillträder sin nya befattning hos Endomines AB den 1 maj Apr-17