providing exposure to a potential tier 1 discovery in a tier-1 ......veladero argentina barrick /...
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Great Bear Royalties (TSXV:GBRR) | April 2021
April 2021Corporate Presentation
TSXV:GBRR
A New Royalty Entrant Providing Exposure to a Potential Tier 1 Discovery
in a Tier-1 jurisdiction
Great Bear Royalties (TSXV:GBRR) | April 2021
Cautionary StatementThis presentation contains certain forward-looking information and statements which may not be based on fact, including without limitation, statements regarding the Company’s expectations in respect of its business strategy, access to capital, events or developments that the Company expects to take place in the future; ability to raise additional capital and complete future financings; the ability of the Company to comply with environmental, safety and other regulatory requirements. All statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “potential”, “estimate”, “may”, “will” and similar expressions identify forward-looking information and statements.
Such forward-looking information and statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such information and statements are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and statements. Such factors include, but are not limited to, the inability of the Company to raise sufficient monies to carry out its business plan, changes in government legislation, taxation, controls, regulations and political or economic developments in Ontario, risks associated with the ability to retain key executives and personnel, title disputes and other claims. Many of these risks, uncertainties and contingencies can affect the Company’s actual performance and could cause actual performance to differ materially from those expressed or implied in any forward-looking information and statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those presented in such information and statements.
The Company disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
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Great Bear Royalties (TSXV:GBRR) | April 2021 3
Investment HighlightsGreat Bear Royalties Corp.
Potential Tier 1 gold discovery in the heart of an established Canadian mining camp
Royalties on Tier 1 assets are very rare and extremely valuable
Leverage to a $45M / +175,000 meter drill program for 2021
27.3 million shares outstanding – held by longstanding GBR-V shareholders Management has a track record of value creation and significant royalty experience
Cornerstone asset = 2% NSR on Great Bear Resource’s Dixie Project
A rare, unique new entrant to the growing royalty space
Exposure to one of the largest exploration programs in Canada
Tight share structure and experienced management team
Member of Discovery Group (https://www.discoverygroup.ca/)
Great Bear Royalties (TSXV:GBRR) | April 2021
Shares Outstanding 27.3M
Options 2.5M
Fully Diluted 29.8M
Market Cap (@ $3.90 per share) ~C$115M
Working Capital ~C$5M
Shareholder breakdown (approx.)
Corporate Snapshot
4
10%
20%
70%
InsidersInstitutionsOther
John Robins – CEO & Director• Co-founder and principal of Discovery Group• Professional geologist, prospector and entrepreneur with 35+ years of experience
in the mining industry. Founder of Kaminak Gold and Bluestone Resources
Calum Morrison – President• VP Corporate Development at Great Bear Resources; formerly with Teck Resources • +$1 billion in royalty transaction experience (led the sale of a US$610M Silver
Stream to Franco-Nevada and a US$525M Gold Stream to Royal Gold)
Zeenat Lokhandwala – Chief Financial Officer• Previously with Leagold Mining, through the merger with Equinox Gold• Formerly part of KPMG’s mining practice
Chris Taylor – Director• President & CEO at Great Bear Resources• Structural and Economic Geologist with over 20 years experience
James Paterson – Director• Principal of Discovery Group• 23+ years industry experience, including executive and directorship roles with
companies such as ValOre Metals Corp. (current), Kaminak Gold, Northern Empire Resources, and Bluestone Resources
Management / Directors Capital Structure (as at April 9, 2021)
Great Bear Royalties (TSXV:GBRR) | April 2021
2.0% Net Smelter Royalty1
• Reference to all minerals produced from the Dixie Project in Red Lake, Ontario
NSR covers a 9,140 ha property package• Dixie Project consists of contiguous claims over 22 km• Less than 5% of the total property has been explored to date
Straightforward, attractive royalty structure• Perpetual royalty (no expiry), uncapped and no buyback option• Gold payable in credits or physical gold• All other attributable minerals payable in cash
1 NSR = defined percentage of the gross revenue from a resource extraction operation, less a proportionate share of incidental transportation, insurance, refining and smelting costs
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2% Net Smelter Royalty on the Dixie ProjectAttractive Royalty Structure on a Large, Prospective Land Package
Great Bear Royalties (TSXV:GBRR) | April 2021
The Dixie Project
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A Discovery with Tier 1 Potential in Canada
District scale – 9,140 Hectares of contiguous claims over 22 km, covering an 18 km gold target
Tier 1 jurisdiction – Dixie is a 15 min drive from the town of Red Lake, Ontario with exceptional access to infrastructure
Large, high grade and near surface – An extremely rare combination
One of the largest exploration programs in Canada – $45M budget for 2021 with over 175,000 metres of drilling planned
Widely recognized as a potential Tier 1 gold mine – Current Analyst consensus estimates of~500-550koz gold annually implies potential annual cash flow of ~C$20-25M/yr to GBRR at current gold prices1
More info at: greatbearresources.ca
1 S&P Capital IQ, Street research
Great Bear Royalties (TSXV:GBRR) | April 2021 7
Background / TimelineGreat Bear Royalties Corp. Spun Out to Shareholders of Great Bear Resources Ltd. in 2020
Jan 2020 – Great Bear Resources announced a proposed spin out of a 2.0% NSR on the Dixie Project
Apr 2020 – Shareholder approval received + final court approval for the Plan of Arrangement• Great Bear Royalties Corp. incorporated as a wholly owned subsidiary 100% of shares distributed to shareholders• Spin-out completed by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia)
Dec 2020 – Great Bear Royalties closes oversubscribed rights offering to existing shareholders, raising gross proceeds of ~C$2.0M
Apr 2021 – Great Bear Royalties commences trading on the TSX Venture under the symbol “TSXV:GBRR”
Foundational asset providing a pathway for creation of shareholder value
Great Bear Royalties (TSXV:GBRR) | April 2021
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$10
$20
$30
$40
$50
$60
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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A New Entrant to a Growing Royalty SpaceThe Precious Metals Royalty Space has Grown to ~US$60B with 3 Key Players Making up >80%
Precious Metals Royalty Companies – Total Market Capitalization (US$M)
Newmont acquires ‘Old’ Franco-Nevada for $2.9B Wheaton Precious
formed
Franco-Nevada IPO
US$33B
US$58B
1 Includes other precious metals royalties (ELE, ELY, EMPR, EMX, FISH, GBRR, GROY, MMX, MTA, NSR, OGN, RZZ, STRR, VOX) Source: S&P Capital IQ; as at April 9, 2021
Market % ofCap Total
Franco-Nevada $26B 44%Wheaton Precious $19B 32%Royal Gold $7B 12%Osisko Royalties $2B 3%Sandstorm Gold $1B 3%Other (14 Active Companies) $3B 5%
Total Precious Royalties $58B 100%
Great Bear Royalties (TSXV:GBRR) | April 2021 9
A Tier 1 FocusGreat Bear Royalties Offers Investors a Peer-leading Tier 1 Focus
1 Based on consensus NAV estimates and/or company disclosureSource: S&P Capital IQ
"diversification doesn't make sense. It's crazy to put money into your 20th choice rather than your first choice..."
Royalty peers often market their offering of a diversified portfolio of assets across multiple jurisdictions,however their key assets are diluted away in large portfolios, with exposure to less favourable jurisdictions
“Tier 1 jurisdictions”
58%81%100% 65%100%
100% 100% 80% 66%82%
Royalties 1 6 81 30 106 46 136 62 9 111 18 387 181 5 1 191Streams -- 5 -- -- -- 1 10 2 -- 4 -- 13 8 1 30 9
50% 45% 42% 33%25% 14%
Peer Portfolio Breakdown – Exposure to Tier 1 Jurisdictions1
- Warren Buffet (billionaire investor)
Great Bear Royalties (TSXV:GBRR) | April 2021
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$250
$500
$750
$1,000
Salo
bo (W
PM)
Cob
re P
anam
a (F
NV)
Pena
squi
to (W
PM)
Can
dela
ria (F
NV
)
Anta
pacc
ay (F
NV)
Anta
min
a (W
PM)
Still
wat
er (W
PM)
Mt.
Mill
igan
(RG
LD)
Still
wat
er (F
NV)
Pueb
lo V
iejo
(RG
LD)
Con
stan
cia
(WPM
)
Anta
min
a (F
NV)
Anda
collo
(RG
LD)
Can
adia
n M
alar
tic (O
R)
Hem
lo (F
NV
)
Rose
mon
t (W
PM)
Pasc
ua-L
ama
(WPM
)
Vois
ey's
Bay
(WPM
)
San
Dim
as (W
PM)
Khoe
mac
au (R
GLD
)
Cor
tez (
RGLD
)
Gol
dstr
ike
(FN
V)
Pena
squi
to (R
GLD
)
Cot
abam
bas (
WPM
)
Det
our L
ake
(FN
V)
Zink
gruv
an (W
PM)
Yaul
iyac
u (W
PM)
Nev
es C
orvo
(WPM
)
Car
iboo
(OR)
Alpa
la (F
NV)
Pasc
ua-L
ama
(RG
LD)
Man
tos B
lanc
os (O
R)
Karm
a (F
NV)
Tasi
ast (
FNV)
Gol
den
Star
(RG
LD)
Alju
stre
l (W
PM)
Palm
arej
o (F
NV)
Bald
Mou
ntai
n (F
NV)
Con
dest
able
(FN
V)
Rain
y Ri
ver (
RGLD
)
Stream Royalty
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Top 40 Precious Metals Royalty AssetsRanked by Average Analyst Net Asset Value (US$M)
Note: Dashed bars = development assetSource: S&P Capital IQ
$3.7
B
$2.3
B
$13B
$1B $500M $250M
Tier 1 Royalties
Great Bear Royalties (TSXV:GBRR) | April 2021 11
Top 40 Royalty Asset Ownership LandscapeWho owns them?
Source: S&P Capital IQ; as at April 9, 2021
TBD
Market Capitalization (C$M) / Top 40 Royalty Asset Ownership$32.3B $23.7B $9.1B
$2,540
$1,845
$985
$560 $485$340 $275 $235 $175 $115 $105 $95 $85
Great Bear Royalties (TSXV:GBRR) | April 2021
2020F Oper. Stats1 ReserveAsset Country Majority Owner(s) Au Prod. AISC Life Est.2 Royalty? Stream?
(koz) (US$/oz) (years)
Geita Tanzania AngloGold 615 $565 2 - -Fekola (80%) Mali B2Gold 605 $575 7 -Fosterville Australia Kirkland Lake 600 $310 3 -Kumtor Kyrgyzstan Centerra 540 $775 11 - -Detour Lake Canada Kirkland Lake 530 $1,155 30 -Veladero Argentina Barrick / Shandong 510 $1,275 10 - -Kupol-Dvoinoye Russia Kinross 505 n.r. 3 - -KCGM Australia Northern Star 460 $1,120 15 - -Tropicana Australia AngloGold / IGO 425 $1,020 7 - -Tasiast Mauritania Kinross 395 n.r. 16 -Cerro Negro Argentina Newmont 250 $1,100 10 - -
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“Tier 1” – Brought into popularity in 2018 via the Barrick / Randgold merger, which promised an “unrivalled portfolio of Tier 1 gold assets for investors”
Barrick / Newmont define ‘Tier 1’ or ‘World-Class’ as follows:>10yr mine life, >500koz/yr production, bottom half of cost curve
What is a ‘Tier 1’ Gold Mine?Who owns them? Where are they? Do they have Royalties?
“A mine with a stated life in excess of 10 years, annual production of at least 500,000 ounces of gold and total cash costs per ounce that are in the lower half of the industry cost curve”
“Defined as +500k GEO’s/year consolidated; <$900/oz AISC, mine life >10 years in countries classified in the A and B rating ranges for each of Moody’s, S&P and Fitch”
– ‘Tier 1’ 4 mines
– ‘World-Class’ 8 mines
Tier 1 Mines
Potential Tier 1 Mines
2020F Oper. Stats1 ReserveAsset Country Majority Owner(s) Au Prod. AISC Life Est.2 Royalty? Stream?
(koz) (US$/oz) (years)
Nevada Gold Mines USA Barrick / Newmont 3,550 $905 13 -Olimpiada Russia Polyus 1,215 n.r. 20 - -Pueblo Viejo Dom. Rep. Barrick / Newmont 930 $745 11 - Sukari Egypt Centamin / Gov't. NPI 900 $1,000 8 - -Tarkwa-Damang (90%) Ghana Gold Fields 805 $990 9 - -Kibali (90%) Dem. Rep. Congo Barrick / AngloGold 790 $815 12 - -Grasberg (81%) Indonesia Freeport 770 n.r. 60 - -Lihir PNG Newcrest 770 $1,255 29 - -Cadia Australia Newcrest 720 $125 28 - -Boddington Australia Newmont 700 $1,015 18 -Loulo-Gounkoto (80%) Mali Barrick 650 $995 13 - -Canadian Malartic Canada Agnico / Yamana 550 $965 8 -Paracatu Brazil Kinross 525 n.r. 15 - -Yanacocha Peru Newmont / Buena. 525 $960 21 - -Penasquito Mexico Newmont 510 $770 14 Ahafo Ghana Newmont 480 $960 20 -Tanami Australia Newmont 480 $685 12 - -Merian (75%) Suriname Newmont 445 $840 12 - -
1 Operating stats shown on a 100% basis2 Estimated using current reserves and 2020F production; excludes mine life extensions and / or reserve additionsSource: Company filings, S&P Capital IQ, Street research
Royalties on Tier 1 / Potential Tier 1 assets = RARE
Great Bear Royalties (TSXV:GBRR) | April 2021 13
Dixie Project Analogue – Barrick Gold’s Hemlo MineD
ixie
(LP
Faul
t)H
emlo
Gol
d M
ine
Deposit Long-Section Deposit Characteristics Similarities Applicable Royalties
• +4.2 km disseminated gold zone
• Drilled to a maximum depth of 500 metres
• Current drill spacing of up to 150m
• ~90% of gold mineralization along 2.6 km strike length
• 22.6M oz. disseminated gold deposit
• Majority of gold below 500m (94% mined underground)
• Average zone width of 8m at 8.5 g/t
• Disseminated sheet-like high grade gold mineralization
• Felsic volcanic and metasedimentary host rocks
• Major crustal shear zones
• Alteration styles: Albite-sericite-silica+/- sulphides
• GBRR owns a 2% NSR over the entire property at Dixie
• Franco-Nevada owns a 3% NSR / 50% NPI over a portion of the western underground extension of the ore-body (roughly equivalent to the area circled)
• Analyst Consensus Net Asset Value = ~US$450M1
FNV NSR / NPI
1 S&P Capital IQ, Street research
Great Bear Royalties (TSXV:GBRR) | April 2021 14
Why Great Bear Royalties?
Royalties/Streams on Tier 1 assets are very rare and extremely valuable – the Dixie Project has the potential to be Tier 1
High-quality foundational asset provides multiple pathways to creation of shareholder value
Exposure to value accretion through the ongoing advancement of the Dixie Project
Management with track record of value creation and significant experience in the royalty industry
Minimal G&A fully funded for next 2+ years with current cash balance
Great Bear Royalties (TSXV:GBRR) | April 2021 TSX-V: GBR | OTCQX: GTBDF15
1020-800 West Pender StreetVancouver, BC V6C 2V6
www.greatbearroyalties.com
GBRR