issued and outstanding 396.4 m fully diluted 396.8 m options 0.4 m cash $119 m usd short-term debt...
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Issued and Outstanding 396.4 M
Fully Diluted 396.8 M
Options 0.4 M
Cash $119 M USD
Short-Term Debt $338 M USD
Long-Term Debt $571 M USD
Share Price $2.07 CND
Market Cap $0.8 Bn
52 Week Range$1.30 – $3.40 CND
China Gold International Resources Corp. Ltd. (TSX:CGG – HKEx:2099) is a Canadian based, profitable and growing gold and copper producer. The company operates two mines in China: the CSH Gold Mine in Inner Mongolia Region, and the Jiama Copper-Polymetallic Mine in Tibet Region. • Both mines are currently going through drastic expansion. • CGG is the only overseas listing vehicle of state owned enterprise and 39% shareholder, China
National Gold (CNG).
• Strong support from controlling shareholder – CNG, the largest gold producer in China• Distinguished integrated PRC and international management with proven track record• Two producing mines and a pipeline of acquisition targets• Huge exploration potential providing significant resources and reserve upside• Clearly defined production growth profile, including Jiama Phase II and CSH expansions• International best practice in mine development and environmental protection• Benchmark in China• Strategy in place for organic and accretive growth
Share Information (as of September 2015)
Top 10 Shareholders (# shares) (Sept. 2015)
Financial Performance
Highlights
Company Profile
Support from Major Shareholder
Valuation of Jiama and CSH vs. Market Value of CGG
(USD)Estimated Value of Jiama (Feasibility Study and Internal Estimates) $1,240,000,000Estimated Value of CSH (Feasibility Study and Internal Estimates) $640,000,000Combined Estimated Value $1,880,000,000
Current Market Capitalization $0.8 Billion
China National Gold Group (CNG)
• Large-scale, central level state-owned enterprise
• Largest gold producer in China
• Reports directly to the central government: adopting high HSE standard and Exceptional Social Responsibility
China Gold International (CGG)
• Canadian based and listed on TSX & HKEX
• ONLY Flagship overseas listing vehicle of China National Gold Group
• Mandated exclusive offshore acquisition vehicle for China National Gold Group
• Mines are operated in China with strong support from China National Gold Group
This unique partnership facilitated CGG to:
• Increase Local and State Government Support
• Participate in Group Procurement
• Access the Preferential Rights to Acquisition Targets
• Access Technical and Operating Expertise
CGG leverages the technology, engineering, operating, government relationships, financing capabilities and international project pipeline of China National Gold.
Q2 ended June 30, 2015 Q2 ended June 30, 2014
Revenues (MM USD) $84 $49Net Profit (MM USD) $10.6 $8.4Net Operating Cash Flow (MM USD) $(15.3) $(11.4)Earning per share (US cents) 2.54 cents 1.93 centsCash Costs *- CSH $642/oz Au $446/oz AuCash Costs *- Jiama $1.43/lb Cu $1.09/lb CuGold Produced CSH (oz) 49,783 24,571Copper produced Jiama (lbs) 10,853,025 9,646,650
*Cash cost after by-product credits
Current Market Capitalization is LESS THAN Valuation of CGG
Biggestshareholder
of CGG: 39.33% stake
CGG Unique
Advantages
Xin SongChairman & Executive DirectorBing LiuCEO & Executive DirectorLianzhong SunNon-executive DirectorLiangyou JiangSenior Executive Vice President & Executive Director
Management and DirectorsY.B. Ian HeIndependent Non-executive DirectorYunfei ChenIndependent Non-executive DirectorGreg HallIndependent Non-executive DirectorJohn King BurnsIndependent Non-executive DirectorLisheng ZhangVice President
X.D. JiangVice President of Production &Executive DirectorDerrick ZhangChief Financial OfficerSonglin ZhangVice President & Chief EngineerJerry XieExecutive Vice President &Corporate Secretary
Suite 660, One Bentall Centre, 505 Burrard Street Vancouver, BC Canada V7X 1M4 Tel: 604.609.0598 Elena M. KazimirovaInvestor Relations Manager and Financial [email protected] Tel: 604.609.0598
www.chinagoldintl.com
Corporate Office
Equity:Credit SuisseEVA DimensionsGuotai Junan
Debt:S&P “BBB-“ long-term corporate
rating
TSX: CGG │HKEX: 2099
Analyst’s Following
IFM - INDEPENDENT FUND MGMT
BMO GLOBAL ASSET MANAGEMENT
TA Investment Management
ALPS ADVISORS INC
FRANKLIN ADVISERS INC
BLACKROCK FUND ADVISORS
VANGUARD GROUP INC
DIMENSIONAL FUND AD-VISORS LP
NORGES BANK INVESTMENT MANAGEMEN
VAN ECK ASSOCIATES CORP
250,000.00MM
374,212.00MM
632,486.00MM
714,011.00MM
924,200.00MM
1,851,889.00MM
2,531,807.00MM
3,536,677.00MM
4,398,136.00MM
17,527,543.00MM
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2007 2008 2009 2010 2011 2012 2013 20140
20,000 40,000 60,000 80,000
100,000 120,000 140,000 160,000 180,000
139,443 131,418
163,443
Resources Tonnage(mt)
Grade(g/t)
Gold Content (Moz)
Measured 50.7 0.65 1.06
Indicated 152.1 0.60 2.91
Total M&I 202.8 0.61 3.97
Inferred 85.4 0.51 1.39
Resources
Reserves Tonnage(mt)
Grade (g/t)
Gold Content(Moz)
Proved 49.8 0.65 1.05
Probable 108.8 0.61 2.14
Total 158.6 0.63 3.19
Reserves
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029-$200,000
$0
$200,000
$400,000
$600,000Revenue Operating Profit Free Cash Flow
20132014
20152016
20172018
20192020
20212022
20232024
20252026
20272028
20292030
20312032
20332034
20352036
20372038
20392040
20412042
20432044
2045
-$400,000
$0
$400,000
$800,000
$1,200,000
$1,600,000Revenue Free Cash Flow
The CSH Gold MineCSH’s Robust Economics Supports ExpansionBy 2016 annual gold production is expected to increase to ~260,000 oz. from current 163,443 oz.
The Jiama Copper-Gold Polymetallic Mine
One of the Largest Cu-Mo-Au-Ag-Pb-Zn Mining Operations in China – Tibet
Robust Economics Support Phase II Development
• A conventional open-pit, heap-leach, gold-mining operation
• Mining a large, bulk-tonnage, low-grade gold deposit
• Principal product: Gold dore bars with silver credits
• Well-established infrastructure with excellent access to roads and sufficient supplies of power, water and local labor force
• Expansion construction completed August 2013 to increase mine processing capacity from 30,000 tpd to 60,000 tpd, thus shortening mine life to 11 years
• Q3 2014 – commercial production begins on the new facilities
Note: Northeast and Southwest pits combined at December 31, 2014 under NI 43-101
One of the Largest Open Pit Gold Mines in China – Inner Mongolia
• Open-pit and underground mines operation
• A large, skarn-type and porphyry copper polymetallic deposit with well-developed hornfels-type mineralization located in the Gangdise Copper Metallogeny Belt
• Principal product: Copper with gold and silver credits
• Completed Feasibility study is aimed to increase the processing capacity from 6,000 tpd to 50,000 tpd by 2015
• Expansion construction expected to be completed in 2015
• Aiming to produce 178,000,000 lbs. of copper by 2016
• Expected life of mine: 35 years
Annual Gold Production (oz)
Shorter mine life = Higher degree of confidence in gold price assumptions, revenues and costs projections• $4.2 Bn LOM (Life of Mine) Revenue Expectations• $1.6 Bn LOM Operating Profit Expectations• $1,253 million LOM Undiscounted Cash Flow Expectation
Annual Copper Production (lbs)
2010 2011 2012 2013 20140
10,000,000
20,000,000
30,000,000
40,000,000 25,820,417
28,323,626
30,847,469
August 1, 2013 -new additional 30,000 tpd crushing system and ADR plant completed2014 – Production ramp-up to 60,000 completed
$23.5 Bn LOM (Life of Mine) Revenue Expectations$1.3 Bn Net Present Value (9%)$5.8 Bn LOM Undiscounted Free Cash Flow Expectation
TSX: CGG │HKEX: 2099