Second Quarter & First Half 2022 Results
WEBCAST PRESENTATION
Serafino Iacono, Executive Chairman Mike Davies, CFO
TSX: GCM | OTCQX: TPRFF | 1
DISCLAIMER
Forward Looking Statements
This presentation contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, and, specifically, statements concerning the proposed Aris Merger, anticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, free cash flow, dividend payments, future debt repayments, mineral reserve and resource estimates, exploration programs, timing to complete the Toroparu Project PFS, timing to finalize the mining license for the Toroparu, commencement of Toroparu operations, equity investments strategy, re-rating potential and other statements that are not historical facts. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GCM Mining to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 31, 2022 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this presentation and GCM Mining disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
All amounts are denominated in U.S. dollars, unless indicated otherwise.
GCM Mining Corp. | Webcast Presentation | Q2 & First Half 2022 Results | TSX: GCM | OTCQX: TPRFF | 2 |
GCM TO COMBINE WITH ARIS GOLD
Creating a Leading Americas Gold Producer
- Creates a company with larger scale and significant free cash flow to unlock shareholder value
- New company will be named Aris Mining Corporation
- No premium, all-share business combination to be completed via a court approved plan of arrangement
- 100% share-based transaction with a ratio of 0.5 of a GCM share for each Aris Gold share
- GCM shareholders expected to own 74%1 and Aris Gold shareholders to own 26%1 of Aris Mining
- GCM and Aris Gold shareholder meetings set for September 19, 2022
- Directors/officers of GCM (3%) and Aris Gold (9%) have agreed to vote in favour
Juby
ONTARIO
Operating Mines
Development Projects
Exploration Projects
Combined group with larger scale, cash flow and unrivalled growth
Simplifies ownership and enhances financial capacity
Balances portfolio with strong cash flows and production growth
Strengthens combined team
- Positions GCM and Aris Gold shareholders to participate in a stronger combined group, which is expected to be better placed for a valuation re-rate
- Enhanced market visibility, trading liquidity and access to capital
- Eliminates cross-ownership (i.e. GCM's 44% equity interest in Aris Gold), holding company discount and intercompany loans
- Pro forma cash and committed funding of over US$600M, substantial free cash flow from the Segovia Operations and a reduction of US$10M/year in corporate G&A
- The combined assets have the potential to drive a top-of-class growth profile: Segovia Operations (206 koz/yr in 2021), Marmato Mine (175 koz/yr3 ), Toroparu Project (225 koz/yr3) and Soto Norte Project (50% of 450 koz/yr5 )
- Total measured and indicated resources are peer-leading at 18.3 Moz4
- Combined group to leverage GCM's leadership in sustainable mining practices in Colombia
- Corporate team led by Neil Woodyer as CEO and Director and Ian Telfer as Chair to continue to deliver on buy-and-build strategy
Soto Norte
Toroparu
Segovia
GUYANA
Marmato COLOMBIA
Notes:
1. On an In-The-Money Diluted basis as of date of execution of the Arrangement Agreement.
2. Estimated avg annual production over the Upper and Lower Mine steady state production years
3. A preliminary economic assessment is preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
4. See Table 2 in section - Pro Forma consolidated mineral reserves and resources of the News Release dated July 25, 2022. Assumes exercise of option to increase JV ownership from 20% to 50% .
GCM Mining Corp. | Webcast Presentation | Q2 & First Half 2022 Results
TSX: GCM | OTCQX: TPRFF | 3
RESULTS
2nd Quarter | 1st Half | |||
2022 | 2021 | 2022 | 2021 (2) | |
53,198 | 52,198 | Gold production (ozs) | 103,149 | 103,684 |
$1,859 | $1,797 | Realized gold price ($/oz) | $1,859 | $1,805 |
$877 | $767 | Cash cost ($/oz) (1) | $847 | $816 |
$1,228 | $1,101 | AISC ($/oz) (1) | $1,207 | $1,133 |
$101.4M | $96.4M | Revenue | $202.7M | $198.3M |
$45.9M | $48.0M | Adjusted EBITDA (1) | $91.1M | $94.3M |
$39.0M | $29.8M | Net income (loss) | $44.2M | $148.1M |
$0.40 | $0.41 | Per share | $0.45 | $2.31 |
$14.2M | $23.6M | Adjusted net income (1) | $29.0M | $45.5M |
$0.15 | $0.33 | Per share | $0.30 | $0.69 |
$31.5M | $12.8M | Operating cash flow | $55.7M | $26.4M |
$20.5M | ($2.8M) | Free Cash Flow (1) | $31.2M | ($0.3M) |
(1) Non-IFRS measures. Refer to the Company's MD&A for computation.
- Results of Aris consolidated for one month prior to the loss of control of Aris on February 4, 2021. Thereafter, Aris is an equity-accounted investee.
GCM Mining Corp. | Webcast Presentation | Q2 & First Half 2022 Results | TSX: GCM | OTCQX: TPRFF | 4 |
CAPITAL STRUCTURE
TSX: GCM OTCQX: TPRFF
Market Capitalization
CA$354 million (1)
Common Shares
97.6 million
52 Week High/ Low
CA$6.13/ CA$3.13
1,000,000
800,000
600,000
400,000
200,000
0
Warrants:
GCM.WT.B: 10.1 million @ CA$2.21 (2024 expiry)
Unlisted: 16.8 million @ CA$1.90 to CA$6.50 (2022-2024expiry)
Stock Options:
3.9 million @ CA$2.55 to CA$6.88 (2022-2027expiry)
NCIB(2)
Commenced October 20, 2021.
Bought back 1,418,602 shares to-date.
Convertible Debentures
CA$18 million @ CA$4.75 (2024 expiry)
Senior Unsecured Notes due 2026
US$300 million at 6.875% coupon
Fully Diluted
132.2 million shares
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
(1) Based on CA$3.63 at close on August 11, 2022.
- The NCIB will allow the Company to purchase for cancellation up to 9,570,540 Shares of the Company over a 12-month period ending October 19, 2022
GCM Mining Corp. | Webcast Presentation | Q2 & First Half 2022 Results | TSX: GCM | OTCQX: TPRFF | 5 |
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GCM Mining Corp. published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 12:44:07 UTC.