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RBC Capital Markets 2015 Global Mining & Materials Conference

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RBC Capital Markets 2015 Global Mining & Materials Conference

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RBC Capital Markets 2015 Global Mining & Materials Conference

  1. 1. June 15-17, 2015 RBC Capital Markets 2015 Global Mining & Materials Conference
  2. 2. TSX P | NYSE PPP | 2 This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, 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 of such words and phrases or statements that certain actions, events or results “may”, ”could”, “would”, ”might”, or “will be taken”, “occur” or “be achieved”, or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s operations, including, without limitation, fluctuations in spot and forward markets for gold, silver and other metals, fluctuations in currency markets, changes in national and local governments in Mexico and the speculative nature of mineral exploration and development, risks associated with obtaining necessary exploitation and environmental licenses and permits, and the presence of laws that may impose restrictions on mining. A complete list of risk factors are described in the Company’s annual information form and will be detailed from time to time in the Company’s continuous disclosure, all of which are, or will be available, for review on SEDAR at www.sedar.com. This presentation uses the terms “measured resources”, “indicated resources” and “inferred resources”. The Company advises readers that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), the United States Securities and Exchange Commission does not recognize them. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted in to reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by applicable law. 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 currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Unless otherwise indicated, all dollar values herein are in US$. Cautionary Statement
  3. 3. TSX P | NYSE PPP | 3 Investment Opportunity EMERGING MID-TIER GOLD PRODUCER Corporate Office (Toronto) Producing Mine Development Project Exploration Property Black Fox Grey Fox San Dimas Cerro Del Gallo Ventanas Mexico City High-Grade Production in the Americas Diversified, Stable, Mining Friendly Jurisdictions Strong Financial Position Mexico: Our Platform Asset with Exploration Pipeline Canada: Situated in a Multi-Million Ounce Gold District
  4. 4. TSX P | NYSE PPP | 4 Strong Financial Position SUFFICIENT LIQUIDITY TO FUND ORGANIC GROWTH Source: 2015E-2017E Operating Cash Flow – Capital IQ consensus CFPS multiplied by current 162 million shares outstanding. *See final slide for footnotes. $72 $74 $91 $135 $130 2013 2014 2015E 2016E 2017E Consensus Estimated Operating Cash Flow ($ millions) $133M STRONG LIQUIDITY $123M1 PRUDENT DEBT LEVEL As at March 31, 2015 Exchanges TSX: P NYSE: PPP Balance Sheet (As at March 31, 2015) Cash $58 million Line of Credit2 $75 million Total Liquidity $133 million Convertible Debenture (6.5%, due Mar. 2016, US$14.00 conversion) $48 million Convertible Debenture (5.75%, due Feb. 2020, US$6.55 conversion) $75 million Line of Credit Draw Down2 (Due May 2017) Nil Total Debt1 $123 million Capital Structure Common Shares Outstanding 162 million Fully Diluted3 193 million Market Capitalization (At April 30, 2015) C$720 million
  5. 5. TSX P | NYSE PPP | 5 Production Increased by 54% over Q1 2014 STRONG FIRST QUARTER 2015 Operating Results Q1 2015 Q1 2014 Gold equivalent production 4 (gold equivalent ounces) 61,073 39,758 San Dimas 46,569 35,662 Black Fox 14,504 4,096 Gold production 4 (ounces) 54,365 32,278 San Dimas 39,861 28,182 Black Fox 14,504 4,096 Silver production 4 (million ounces) 1.93 1.51 All-in sustaining costs 5 ($ per gold ounce) $1,044 $1,381 San Dimas $659 $893 Black Fox $1,552 $1,480 Total cash cost 5 ($ per AuEq ounce) $699 $686 San Dimas $582 $632 Black Fox $1,077 $1,154 *See final slide for footnotes. 40 61 Q1 2014 Q1 2015 +54% Production (AuEq koz)
  6. 6. TSX P | NYSE PPP | 6 Production To Increase By Up To 20% In 2015 HIGH-GRADE PRODUCTION WITH ORGANIC GROWTH 161 180 190 215 64 80 100 100 2014 2015E 2016E 2017E Black Fox San Dimas 300-350 250-270 280-300 225 8 *See final slide for footnotes. Guidance Black Fox San Dimas 2015 Attributable production4 (gold equivalent ounces) 75,000- 85,000 175,000- 185,000 250,000- 270,000 Gold production4 (ounces) 75,000- 85,000 145,000- 155,000 220,000- 240,000 Silver production4 (million ounces) - 6.5-7.5 6.5-7.5 All-in sustaining costs5,6 (per gold ounce) $1,075-$1,125 $840-$890 $1,000-$1,100 Total cash costs5,6 (per gold equivalent ounce) $820-$870 $590-$640 $650-$700 Capital expenditures ($ millions) $22.6 $41.4 $66.7 Exploration ($ millions) $12.3 $6.4 $19.1 Targeted Production Growth Profile (AuEq koz) 4,7
  7. 7. TSX P | NYSE PPP | 7 Diversified, Stable, Mining Friendly Jurisdictions Corporate Office TORONTO, ONTARIO Producing Mine Development Project Exploration Property Black Fox Mine TIMMINS, ONTARIO Grey Fox Project TIMMINS, ONTARIO San Dimas Mine SINALOA-DURANGO BORDER Cerro Del Gallo Project GUANAJUATO Ventanas Exploration Property DURANGO 70% MEXICO 30% CANADA 2015E PRODUCTION BY REGION Operating in attractive mining jurisdictions with: • Long mining history • Stable Government • Established permitting process Located in areas with: • Existing infrastructure • Skilled local workforce • Suppliers • Community support
  8. 8. TSX P | NYSE PPP | 8 Production Details LOCATION Guanajuato State, Mexico OWNERSHIP 100% (no stream) METALS Gold, Silver, & Copper MINING Open pit, Heap leach STAGE May 2012 Feasibility Study on Phase 1 Heap Leach Development Details LOCATION 32km south of San Dimas, Durango, Mexico OWNERSHIP 100% (no stream) METALS Gold & Silver PROPERTY 3,470 hectares RESULTS 7.1 g/t AuEq over 9.7 m, 7.9 g/t AuEq over 6.2 m Exploration Details LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream4) METALS Gold & Silver MINING Underground CAPACITY 2,500 TPD (nameplate) 2015E 180,000AuEq oz4 $865 per oz5,6 all-in sustaining costs San Dimas Ventanas Cerro del Gallo 95,000AuEq oz 4 24 months from construction decision MEXICO Platform Asset with Exploration Pipeline *See final slide for footnotes.
  9. 9. TSX P | NYSE PPP | 9 The Company’s Foundation SAN DIMAS *See final slide for footnotes. Mineral Reserves and Mineral Resources (December 31, 2014, Mineral Resources include Mineral Reserves) Classification Tonnage (Mt) Gold Grade (g/t) Cont. Gold (koz) Mineral Reserves Proven & Probable 4.5 5.7 818 Mineral Resources (includes Mineral Reserves) Measured & Indicated 4.6 6.6 970 Inferred 6.5 3.8 786 Mazatlan San Dimas Mine SINALOA-DURANGO BORDER Ventanas Exploration Property DURANGO LOCATION Sinaloa-Durango, Mexico OWNERSHIP 100% (silver stream1) METALS Gold & Silver MINING Underground CAPACITY 2,500 TPD (nameplate) PRODUCTION4,8 175,000-185,000 AuEq oz CASH COSTS5,6 $590-$640/AuEq oz Mexico
  10. 10. TSX P | NYSE PPP | 10 Expanding Production in 2015+ SAN DIMAS Production Increasing by up to 20% in 2015 • Mill expansion to 3,000 TPD underway • Mill operating above nameplate capacity • Mined grade increasing to 5.0 g/t in 2015 Productivity Improvements • Moving from 5.5 day, 3x8-hour shifts to 7 day, 2x12-hour shifts • Increasing high performance development crews • Completing strategic tunnels to reduce haulage routes and lower costs Optimization Programs • Increasing to 40% long-hole mining in 2015 • Introduce tailings washing system to optimize recoveries • Hydro-electric facility expanded to 14 MW of peak capacity Improving Productivity
  11. 11. TSX P | NYSE PPP | 11 Established Infrastructure SAN DIMAS Main Haulage Drift Infrastructure • Over 500 km of lateral development • Strategic tunnels connecting Central Block to Sinaloa Graben will reduce haulage costs • Low Development Costs of $1,500/metre State of the Art Dry Tailings Facility • 3,000 TPD capacity currently being expanded to 3,800 TPD Hydro-Electric Power Generation • San Dimas supplies 75% of its own power with green hydro-electric generator • Reduces power costs to $0.015 /kWh compared to $0.11 /kWh from the grid • Hydro-electric power plant expanded to 14 MW of peak capacity in 2014
  12. 12. TSX P | NYSE PPP | 12 Significant Exploration Upside SAN DIMAS Large Prospective Property • 22,500 hectare property • Over 120 known veins • 90% of Reserves located within 6km of mill • Entire property highly prospective Jessica Vein Discovery • Not included in 2014 Resource estimate, currently being mined • Open along 225 metres averaging 9.7 g/t gold and 1,497 g/t silver over 2.2 metres true width • Located under volcanic capping Victoria Vein • Reserves of 168koz of gold at 9.1 g/t and 7.9Moz of silver at 428 g/t Perez Vein • Intercepts include 7.4 g/t gold and 528 g/t silver over 11.9 metres
  13. 13. TSX P | NYSE PPP | 13 Production Details LOCATION 3.5 km south of Black Fox, Ontario OWNERSHIP 100% (no stream) METALS Gold MINING Open pit & potential underground STAGE Scoping study to be completed by Q1 2016 Development Details LOCATION Between Grey Fox and Black Fox OWNERSHIP 100% (6.3% gold stream on Pike River4) METALS Gold PROPERTY 1,750 hectares (total contiguous land package, including Black Fox and Grey Fox), covering 6.5 km strike length of the Destor-Porcupine Fault Zone Exploration Details LOCATION Timmins, Ontario OWNERSHIP 100% (8% gold stream4) METALS Gold MINING Open pit & Underground CAPACITY 2,200 TPD 2015E 80,000Au oz4 $1,100 per oz5,6 all-in sustaining costs Black Fox Pike River Property Grey Fox Multi-Million Ounce Gold District CANADA *See final slide for footnotes.
  14. 14. TSX P | NYSE PPP | 14 District Wide Proven Depth Potential BLACK FOX COMPLEX Classification Property Tonnage (Mt) Gold Grade (g/t) Cont. Gold (koz) Mineral Reserves Proven & Probable Black Fox 3.0 4.0 393 Mineral Resources (includes Mineral Reserves) Measured & Indicated Black Fox 3.6 5.3 608 Measured & Indicated Grey Fox 4.7 4.4 668 Inferred Black Fox 0.3 8.3 68 Inferred Grey Fox 1.3 4.2 174 LOCATION Timmins, Ontario OWNERSHIP 100% (8% gold stream1) METALS Gold MINING Open pit & Underground CAPACITY 2,200 TPD PRODUCTION4,8 75,000-85,000 oz CASH COSTS5,6 $820-$870/ oz Mineral Reserves and Mineral Resources (December 31, 2014, Mineral Resources include Mineral Reserves) Timmins, Ontario *See final slide for footnotes.
  15. 15. TSX P | NYSE PPP | 15 Optimization Plan • Replacing low-grade open-pit ounces with high-grade underground ounces • Building underground long-hole stop inventory • Recommence mining from underground in mid-2015 Exploration Upside • Mineralization proven to 800 metres depth • Expanding high-grade central zone • Drilling to 1,000 metres depth in 2015 Beyond 2017 • Black Fox scoping study to assess potential for raise-bore shaft • Grey Fox open-pit scoping study to be completed by Q1 2016 Established Mining Complex with Exploration Upside BLACK FOX COMPLEX Mining Complex with Upside Opportunity
  16. 16. TSX P | NYSE PPP | 16 Focused on Reserve & Resource Development BLACK FOX MINE Near-Surface Targets • Recently identified Tamarack Gold zone • Near-surface targets continue to demonstrate potential Central Zone • Infill drilling to link mineralization close to existing infrastructure Central Zone at Depth • 50 intercepts avg. 12 gpt / 7 m • Drilling to 1,000m in 2015. Proven to 800m depth
  17. 17. TSX P | NYSE PPP | 17 Open Land Package • 50,000 metres of drilling planned in 2015 • Potential to further increase resources by testing for down-dip and strike extensions Future Production for the Black Fox Complex GREY FOX Growing Resources Through the Drill Bit Long Section Looking West (September 2013 Resource Model; 2.5 g/t cut-off grade) Long Section Looking West (December 2014 Resource Model; 3.0 g/t cut-off grade) 147 Zone Contact Zone Grey = Indicated, Green = Inferred Red = Indicated, Green = Inferred 147 Zone Contact Zone Classification Tonnage (Mt) Gold Grade (g/t) Cont. Gold (koz) Mineral Resources Measured & Indicated 4.7 4.4 668 Inferred 1.3 4.2 174 Mineral Reserves and Mineral Resources (December 31, 2014, Mineral Resources include Mineral Reserves) LOCATION 3.5 km south of Black Fox, Ontario OWNERSHIP 100% (no stream) METALS Gold MINING Open pit & Potential underground STAGE Scoping study in progress
  18. 18. TSX P | NYSE PPP | 18 Expected Catalysts and News Flow Q1 2015 Reserve and Resource Update Plus discovery of Jessica vein at San Dimas Q1 2015 Black Fox Complex Exploration Update Drilling from 520 metre level exploration drift Q1 2016 Release Grey Fox Scoping Study 20162015 Q3 2015 Increase Black Fox Underground Production Complete ramp-up to 1,000 TPD production from the underground mine 2015 San Dimas Expansion In-Progress Continue to advance expansion to 3,000 TPD Q4 2015 Black Fox Exploration Exploration results from drilling to a depth of 1,000 metres 2016 San Dimas Expansion Complete Steady-state 3,000 TPD throughput achieved
  19. 19. TSX P | NYSE PPP | 19 Positioned to Outperform DELIVERING SUPERIOR RETURNS 250–270koz MEXICO & CANADA4,8 Primero Share Price Performance (January 2012 to Present) *See final slide for footnotes. Producing in America’s Top Mining Jurisdictions Disciplined Cost Management Strong Financial Position Proven Track Record $650–700/oz TOTAL CASH COST5,6 $133million CASH & AVAILABLE CREDIT2 +48% VS. TSX GLOBAL GOLD (100%) (40%) 20% 80% 140% Primero Mining Corp. S&P/TSX Global Gold Index Delivering Superior Returns to Primero Shareholders
  20. 20. APPENDICES
  21. 21. TSX P | NYSE PPP | 21 Strong Q1 2015 Financial Results (US$ thousands, except per share amounts) Q1 2015 Q1 2014 Revenues 73,310 48,269 Earnings from mine operations 11,470 9,481 Net income (loss) 3,584 (8,253) EPS ($ per share) 0.02 (0.06) Adjusted net income 9 1,139 (2,048) Adjusted EPS 9 ($ per share) 0.01 (0.02) Operating cash flows 10 (before changes in working capital) 18,777 6,509 CFPS 10 ($ per share) 0.12 0.05 $48 $73 Q1 2014 Q1 2015 +52% *See final slide for footnotes. Revenue (US$ millions)
  22. 22. TSX P | NYSE PPP | 22 Lower Capital Expenditures & Investment in Exploration 2015 GUIDANCE Note: Figures may not add due to rounding. Capital Expenditures Estimated 2015 Costs San Dimas Underground Development $15.2 million San Dimas Sustaining Capital $10.8 million San Dimas Projects $15.4 million San Dimas Sub Total $41.4 million Black Fox Underground Development $13.4 million Black Fox Sustaining Capital $4.5 million Black Fox Projects $3.4 million Grey Fox Development Studies $1.3 million Black Fox Complex Sub Total $22.6 million Cerro del Gallo Development $2.7 million Total $66.7 million 2014 Capital Expenditure $80.5 million Exploration Expenditures Estimated 2015 Costs San Dimas Diamond Drilling $3.1 million San Dimas Drifting $1.9 million San Dimas Regional Diamond Drilling $0.9 million Ventanas Regional Diamond Drilling *$0.5 million San Dimas Sub Total $6.4 million Black Fox Diamond Drilling $5.0 million Grey Fox & Regional Exploration $7.3 million Black Fox Complex Sub Total $12.3 million Cerro del Gallo Geology Mapping $0.4 million Total $19.1 million 2014 Exploration $34.3 million
  23. 23. TSX P | NYSE PPP | 23 Sensitivity Table PRIMERO Base Price Change Increments Δ CFPS8,10 ($/share) Δ AISC5,8 ($/oz Au) Δ FCF8 ($ millions) Gold Price ($/oz) $1,200 $100 $0.12 n/a $20 Silver Price ($/oz) $18.00 $3.00 $0.01 $7 $1 Canadian Dollar (Cdn$/US$) 1.10 10% $0.05 $40 $10 Mexican Peso (Mex$/US$) 13.00 10% $0.04 $35 $8 *See final slide for footnotes.
  24. 24. TSX P | NYSE PPP | 24 2014 Operating Cost Breakdown PRIMERO 40% 18% 17% 7% 6% 5% 4% -5% Labour Contractors Materials & Consumables Fuel & Lubricants Maintenance Power Freight, Refining, & Off-Site Other Adjustments 40% 17% 17% 3% 6% 2% 5% 10% 33% 17%13% 9% 6% 6% 2% -14% ConsolidatedSan Dimas Black Fox
  25. 25. TSX P | NYSE PPP | 25 0 10 20 30 -80% -60% -40% -20% 0% 20% 40% 60% 80% 8/13/2010 2/13/2011 8/13/2011 2/13/2012 8/13/2012 2/13/2013 8/13/2013 2/13/2014 8/13/2014 2/13/2015 Volume(Millions) P-T Volume Primero Mining Corp. S&P/TSX Global Gold Index Primero IPO, Begins Trading on the TSX, and Finalizes San Dimas Acquisition Primero Announces Brigus Gold Acquisition Primero Added to S&P/TSX Composite IndexPrimero Announces San Dimas Expansion Plan Phase 1 Primero Begins Trading on the NYSE Primero Announces Acquisition of Cerro Del Gallo Primero Announces APA Ruling Spot Gold Hits 4- Year Low Primero Closes US$75M Offering of Convertible Debentures PRIMERO Stock Performance & Significant Events
  26. 26. TSX P | NYSE PPP | 26 Primero Warrants TSX: P.WT Convertible Debentures TSX: P.DB.U Revolving Line of Credit Facility Convertible Debentures TSX:P.DB.V Face Value n/a $48.1 million Drawn at Mar. 31, 2015: Nil $75.0 million Maturity / Expiry July 20, 2015 March 31, 2016 May 23, 2017 February 28, 2020 Interest Rate n/a 6.5% Floating Rate (see below) 5.75% Payable n/a Semi-Annually Monthly Semi-Annually Conversion / Strike C$8.00 US$14.00 n/a US$6.55 Additional Notes  CUSIP: 74164W114  Provision for forced conversion if the market price of the Primero’s shares is at least 125% of the conversion price  CUSIP: 74164WAA4  The floating interest rate was approximately 4.75% per annum during the year ended December 31, 2014  Not redeemable prior to Feb. 2018  Provision for early redemption if the market price of the Primero’s shares is at least 125% of the conversion price  CUSIP: 74164WAB2 Summary of Debt & Tradable Securities PRIMERO
  27. 27. TSX P | NYSE PPP | 27 Primero sells 8% of annual gold production at Black Fox at ~$518 per ounce • Primero streams 6.3% from the Black Fox Extension which includes the Pike River Property • Gold is sold at $500 per ounce subject to inflationary adjustment beginning in 2013, not to exceed 2% per annum • The Grey Fox property is not subject to any gold streaming agreements Silver Purchase Agreement SAN DIMAS BLACK FOX Gold Streaming Agreement 16% 84% Silver Gold Silver as Percentage of 2014 Revenue Primero sells 50% of annual silver production above 6.0 million ounces at spot • Remainder sold at ~$4.20 per ounce under silver purchase agreement • Threshold commences August 6 to following August 5 • Expansion anticipated to generate meaningful silver spot sales post expansion to 3,000 TPD
  28. 28. TSX P | NYSE PPP | 28 Construction • Mill expansion to 3,000 TPD began in Q1 2015 and is expected to be completed by mid-2016 Capital Cost • Currently estimated at $26.4 million, including a 30% contingency. After-tax IRRis expected to be 78% with a 12 month payback period11 Production • An estimated increase by more than 30% over 2014 to approximately 215,000 gold equivalent ounces Cash Costs • Expected to drop by ~$50 per ounce from 2014 levels Expansion to 3,000 TPD SAN DIMAS 1,500 2,000 2,500 3,000 Actual Forecast Base Production Mine at 2,150 TPD Mill Expanded to 2,500 TPD Mine at 2,500 TPD Mill Expanded to 3,000 TPD 2011 2012 2013 2014 2015E 2016E San Dimas Mill Throughput (TPD) *See final slide for footnotes.
  29. 29. TSX P | NYSE PPP | 29 District-Wide Exploration Potential SAN DIMAS SW NE 3,000 m. 2,000 m. 1,000 m. Source: San Dimas Geology Office WEST BLOCK 2015 Exploration SAN ANTONIO Mined 1987-2002 CENTRAL BLOCK Mined 2002-Current TAYOLTITA BLOCK Mined 1975-Current ARANA HANGING WALL SINALOA GRABEN Mined 2012-Current 2015 EXPLORATION PROGRAM Drilling for Extensions of Known Veins Longitudinal Cross Section 3,000 m. 2,000 m. 1,000 m. Mineralization – Ore Bodies Extension of the Favorable Horizon Potential Intrusive Faults LEGEND Kilometers 0 1 2
  30. 30. TSX P | NYSE PPP | 30 Grey Fox • Gold resources hosted primarily in 3 zones: Contact, 147, & Grey Fox South • Mineralization consistent with Brittle Deformation emplacement • Bounded by the Destor- Porcupine and Gibson-Kelore faults Contact Zone • Gold mineralization traced over 600 x 550 metres, and to a depth of 700 metres. Remains open to the north and at depth. 147 Zone • Gold mineralization traced over 700 x 500 metres, and to a depth of 500 metres. Grey Fox South • Gold mineralization traced over 700 x 500 metres, and to a depth of 400 metres. The Continuation of a Regional Play GREY FOX Contact Zone 147 Variolitic Volcanic Sedimentary Unit Mafic Volcanic Mafic Intrusive Variolitic Volcanic Mafic Volcanic Ultramafic Volcanic 147 Zone GF South Contact Zone Black Fox Mine Grey Fox Project Hislop Mine 1.3 km & Open to the North
  31. 31. TSX P | NYSE PPP | 31 Depositional Model BLACK FOX COMPLEX Colvine et al. (1988) Troop (1985) Archean Lode Gold Deposits Depositional Model 147 &Contact Zones • Mineralization predominantly in stockwork structures Black Fox Mine • Mineralization predominantly in vein structures Producing & Past- Producing Mines Ross Mine Composite Level Plans Upper Portion of the Ross Mine Shows Mineralization Characteristics Similar to the Grey Fox 147 Zone • Ross Mine is located 3 km south of the 147 Zone • Ross Mine produced over 1 million ounces at 4.7 g/t average grade. • Note the change in ore body shape over a vertical range of 1 km as one moves from a brittle to a ductile environment.
  32. 32. TSX P | NYSE PPP | 32 Potential for an Additional 95,000 AuEq oz CERRO DEL GALLO (1) “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 . Effective date May 11th 2012 (2) Cash cost is a non-IFRS measurement. LOCATION Guanajuato State, Mexico OWNERSHIP 100% METALS Gold, silver, & copper MINING Open pit, heap leach and/or conventional mill STAGE Feasibility Study published May 2012 on Heap Leach scenario Established Infrastructure: Active mining district, skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes. Supportive Community: District has produced 1.14 billion oz of silver and 6.5 million oz of gold over its 450 year mining history. Construction Decision: Contingent on the project achieving a 15% IRR at $1,100/oz gold First Stage Heap Leach DFS – Operational Data (May 2012)1 Avg LOM Gold Grade 0.69 g/t Avg LOM Annual Throughput 4.5 Mt Gold Equivalent Production 95 koz /yr Gold Production 68 koz /yr Silver Production 1,072 koz /yr Copper Production 1,113 t/year Estimated Cash Costs 2 ~$700/oz Proven & Probable Gold Reserves (32.2M tonnes at 0.7 g/t) 712 koz Measured & Indicated Gold Resources (Exclusive of Reserves, 47.9M tonnes at 0.6 g/t) 923 koz Mine Life (Stage 1) 7.2 years Large Gold Domain
  33. 33. TSX P | NYSE PPP | 33 HEALTH AND SAFETY • We understand that our most important assets are our people and their safety is our number one priority • We maintain world-class health and safety policies • In 2014 Black Fox won the “First Aid Trophy” in the Ontario Mine District Competition in Timmins • In 2014 Total Reportable Injury Frequency Rate (TRIFR) declined by 36% ENVIRONMENT • Environmental awareness campaigns continued in 2014 • San Dimas is certified as “Clean Industry” by PROFEPA (Mexican EPA) • We utilize sustainable green technologies where possible - Primero’s own hydroelectric dam supplies the majority of San Dimas Mine’s power COMMUNITY • 3 Recreational Facilities were built in the town of Tayoltita by Primero and Silver Wheaton • The Black Fox Mine maintains strong relationships with their communities and the Wahgoshig First Nation • We treat our local communities as our partners • We focus on understanding our local communities goals and providing local opportunities Focus on Responsible Mining PRIMERO
  34. 34. TSX P | NYSE PPP | 34 Mineral Reserves and Mineral Resources SAN DIMAS (As at December 31, 2014) Classification Tonnage (Mt) Gold Grade (g/t) Silver Grade (g/t) Contained Gold (koz) Contained Silver (koz) Mineral Reserves Proven & Probable 4.470 5.7 352 818 50,510 Mineral Resources Measured & Indicated 4.554 6.6 415 970 60,704 Inferred 6.514 3.8 293 786 61,310 Notes to Mineral Reserve Statement: 1. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 2. San Dimas cut-off grade of 2.94 g/t AuEq based on total operating cost of US$110.06/t. Metal supply contract obligations have been referenced in determining overall vein reserve estimate viability. 3. Assumed processing recovery factors at San Dimas for gold of 97% and silver of 94%. 4. Exchange rate assumed is 13 pesos/US$1.00. 5. The San Dimas Mineral Reserve estimate was prepared under the supervision of Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and a QP for the purposes of National Instrument 43-101 (“NI 43-101”). Notes to Mineral Resource Statement: 1. Mineral Resources are total and include those resources converted to Mineral Reserves 2. Assumed gold price of US$1,200 per troy ounce and silver price of US$18 per troy ounce. 3. San Dimas cut-off grade of 2.0 g/t AuEq was applied. 4. At San Dimas a constant bulk density of 2.6 tonnes/m3 has been used. 5. The Mineral Resource estimates for San Dimas was prepared under the supervision of Mr. Harold Brisson PhD, Eng., Resource Manager of Primero and a QP for the purposes of NI 43-101.
  35. 35. TSX P | NYSE PPP | 35 Classification Tonnage (Mt) Gold Grade (g/t) Contained Gold (koz) Mineral Reserves Proven & Probable 3.022 4.0 393 Mineral Resources Measured & Indicated 3.578 5.3 608 Inferred 0.255 8.3 68 Proven & Probable Reserves Open Pit 0.879 2.2 61 Underground 1.239 7.5 300 Stockpile 0.904 1.1 31 Total 3.022 4.0 393 Mineral Reserves and Mineral Resources BLACK FOX (As at December 31, 2014) Notes to Black Fox Mineral Reserve estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. Black Fox open-pit cut-off grade of 0.9 g/t and underground cut-off grade of 3.7 g/t. 3. Assumed processing recovery factors at Black Fox for gold of 94%. 4. Exchange rate assumed is CDN$1.10/US$1.00. 5. The Black Fox Mineral Reserve estimate was prepared under the supervision of Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Karl Dessureault, P.Eng., Chief Mine Engineer Black Fox, Primero, and both a QP for the purposes of National Instrument 43-101 (“NI 43-101”). Notes to Black Fox Mineral Resource estimate: 1. Mineral Resources are total and include those resources converted to Mineral Reserves. 2. Assumed gold price of US$1,200 per troy ounce . 3. Black Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.4 g/t were applied. 4. The Mineral Resource estimates for Black Fox was prepared under the supervision of Mr. Harold Brisson PhD, Eng., Resource Manager of Primero and a QP for the purposes of NI 43-101.
  36. 36. TSX P | NYSE PPP | 36 Mineral Resources GREY FOX (As at December 31, 2014) Classification Cut-off Grade (g/t) Potential Material Tonnage (Mt) Capped Gold Grade (g/t) Contained Gold (koz) Indicated Resources >0.9 Open Pit 2.966 3.6 345 >3.0 Underground 1.715 5.9 323 Total 4.681 4.4 668 Inferred Resources >0.9 Open Pit 0.280 2.9 26 >3.0 Underground 1.009 4.6 148 Total 1.289 4.2 174 Notes to Grey Fox Mineral Resource estimate: 1. Assumed gold price of US$1,200 per troy ounce. 2. Grey Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.0 g/t were applied. 3. The Mineral Resource estimate for Grey Fox was prepared by Mr. Rodney Webster MAusIMM, MAIG of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of National Instrument 43-101 (“NI 43-101”).
  37. 37. TSX P | NYSE PPP | 37 Reserves and In-Pit Resources1 CERRO DEL GALLO 1. “Technical Report First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” June 2012 (“Feasibility Study”). Gold equivalent ounces calculated by Cerro Resources using gold, silver and copper prices of US$1,341/oz, US$25.58/oz and US$7,582/t respectively. 2. These resources are reported using internal cut-off grade of 0.2 g/tAu as per Feasibility Study, 2012 and Golder Associates Technical Report, 2008. Phase I Heap Leach In-Pit Proven and Probable Reserves3 Proven 28.2 0.71 0.64 15.1 13.7 0.08 50.2 1.15 1.05 Probable 4.0 0.54 0.07 13.2 1.7 0.07 6.2 0.93 0.12 Proven & Probable 32.2 0.69 0.71 14.8 15.3 0.08 56.4 1.14 1.18 In-Pit Resources (excluding Proven and Probable Reserves)4,5 Measured 39.9 0.61 0.78 13.8 17.71 0.10 88.8 1.07 1.37 Indicated 8.0 0.55 0.14 11.0 2.83 0.08 14.6 0.92 0.24 Measured & Indicated 47.9 0.60 0.92 13.3 20.55 0.1 103.4 1.06 1.64 Category Tonnage (Mt) Gold Grade (g/t) Contained Gold (Moz) Silver Grade (g/t) Contained Silver (Moz) Copper Grade (%) Contained Copper (Mlb) AuEq Grade (g/t) Contained AuEq (Moz) Total Resources Within the Gold Domain2 Measured 129 0.54 2.24 12.0 49.8 0.09 256.0 0.94 3.91 Indicated 80 0.38 0.98 8.0 20.6 0.08 141.1 0.69 1.77 Measured & Indicated 209 0.48 3.22 11.0 70.3 0.08 396.9 0.83 5.58 Inferred 20 0.3 0.19 7.0 4.5 0.09 39.7 0.59 0.38 3. These reserves are reported using internal cut-off grades of 0.24 and 0.29 gAuEq/t for weathered and partially oxidized, respectively. 4. These resources are reported using internal cut-off grades of 0.24, 0.29, and 0.34 gAuEq/t for weathered, partially oxidized, and fresh material resp. 5. See note 7 in January 23, 2013 News Release “Primero achieves 2012 Guidance and Provides 2013 Outlook”.
  38. 38. TSX P | NYSE PPP | 38 Tamara Brown | VP, Investor Relations • Former Director Investor Relations for IAMGOLD • Former partner of a Toronto based, boutique investment bank and professional engineer in mining industry H. Maura Lendon | Chief General Counsel and Corporate Secretary • Former Senior Vice President, Chief Legal Officer and Corporate Secretary of HudBay Minerals Inc.; Chief Counsel Canada, Chief Privacy Officer - Canada of AT&T David Sandison | VP, Corporate Development • Former VP, Corporate Development of Clarity Capital ; Director, Corporate Development Xstrata Zinc Canada ; Director Business Development, Noranda/Falconbridge; Former EVP, Noranda Chile Louis Toner | VP, Project Development & Construction • Over 30 Years of Engineering and Construction experience, formerly held Senior Project Management roles with BBA Inc. and Lafarge Canada Inc. Gabriel Voicu | VP, Geology and Exploration • 25 Years of mining experience, formerly held senior technical and exploration positions with Cambior and IAMGOLD James Mallory | VP, Corporate Responsibility • Over 35 Years of mining experience • Former VP, Vice-President, Operations & Social Responsibility at South American Silver • 13 Years of experience in Latin America Joseph Conway | Chief Executive Officer • 30 Years of experience • Appointed President and CEO in June 2010 • Former CEO, President & Director of IAMGOLD and Repadre Capital Wendy Kaufman | Chief Financial Officer • 20 Years of experience • Appointed CFO in September 2014 • Former VP, Finance and Treasurer of Inmet Mining Corporation Executive Management Ernest Mast | President & COO • 25 Years of experience • Appointed President & COO in Feb. 2015 • Former President & CEO – Minera Panama (Inmet), VP Ops. – New Gold. Maria-Luisa Sinclair | VP, Human Resources • 25 Years of international Human Resources experience in the mining sector with particular expertise in Latin America. • Held key human resources positions with Placer Dome, Pan American Silver, Baja Mining, and Skye Resources.
  39. 39. TSX P | NYSE PPP | 39 Robert Quartermain | Director 2,3 • Founder and President & CEO, Pretivm Resources • Former President and CEO of Silver Standard Brad Marchant | Director 1 • Co-founder of Triton Mining Corporation • Founder of BioteQ Environmental Technologies Inc. Michael Riley | Director 2,5 • Chartered accountant with more than 26 years of accounting experience • Chair of Primero Audit Committee Eduardo Luna | Director 1 • Former EVP & President, Mexico. Former Chairman and CEO of Silver Wheaton, Executive VP of Goldcorp and Luismin S.A. de C.V. (San Dimas) and President of Mexican Mining Chamber and the Silver Institute Rohan Hazelton | Director 1 • VP, Strategy, Goldcorp • Formerly with Wheaton River and Deloitte & Touche LLP Grant Edey | Director 3,4,5 • President & CEO, Khan Resources Inc. • Former Director of Breakwater Resources, former director of Queenstake Resources, Santa Cruz Gold • Former CFO, IAMGOLD David Demers | Director 2,3,4,5 • Founder, CEO and Director Westport Innovations • Director of Cummins Westport and Juniper Engines Wade Nesmith | Chairman • Founder of Primero • Founding and current director of Silver Wheaton Board of Directors Board Committees: 1. Health, Safety and Environment 2. Human Resources 3. Governance and Nominating 4. Lead Director 5. Audit Joseph Conway | Director see Executive Management
  40. 40. TSX P | NYSE PPP | 40 This presentation has been prepared in accordance with the requirements of Canadian provincial securities laws which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum classification systems. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource estimates disclosed in this presentation may not be comparable to similar information disclosed by U.S. companies. The mineral reserve estimates in this presentation have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, SEC Industry Guide 7 under the United States Securities Exchange Act of 1934, as amended, as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definition of “probable reserves” used in NI 43-101 differs from the definition in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as “reserves” under SEC standards. In addition, this presentation uses the terms “indicated resources” and “inferred resources” to comply with the reporting standards in Canada. The Company advises United States investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Further, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the “inferred resources” exist. In accordance with Canadian securities laws, estimates of “inferred resources” cannot form the basis of feasibility or other economic studies. It cannot be assumed that all or any part of “indicated resources” or “inferred resources” will ever be upgraded to a higher category or are economically or legally mineable. In addition, disclosure of “contained ounces” is permitted disclosure under Canadian securities laws; however, the SEC only permits issuers to report mineralization as in place tonnage and grade without reference to unit measures. NI 43-101 also permits the inclusion of disclosure regarding the potential quantity and grade, expressed as ranges, of a target for further exploration provided that the disclosure (i) states with equal prominence that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resources, and (ii) states the basis on which the disclosed potential quantity and grade has been determined. Disclosure regarding exploration potential has been included in this presentation. United States investors are cautioned that disclosure of such exploration potential is conceptual in nature by definition and there is no assurance that exploration will result in any category of NI 43-101 mineral resources being identified. Notes to Investors Regarding the Use of Resources
  41. 41. TSX P | NYSE PPP | 41 1. $48.1 million senior unsecured convertible debenture (acquired from Brigus, with a 6.5% coupon an effective conversion price of US$14.00 and an expiry of March 2016); US$75 million convertible, unsecured, subordinated debentures; and nil draw down from line of credit. Excludes capital leases. 2. The Company closed a $75 million line of credit on May 23, 2014 and has drawn down nil as of March 31, 2015. 3. Fully diluted shares include 20.8 million warrants with an exercise price of Cdn$8.00 per share, expiring on July 20, 2015; and 10.4 million options with an average exercise price of Cdn$5.96. 4. “Gold equivalent ounces” include silver ounces produced at San Dimas, and converted to a gold equivalent based on a ratio of the average commodity prices realized for each period. Silver production is subject to a silver purchase agreement. The silver purchase agreement dictates that until August 6, 2014 Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of silver produced at San Dimas and 50% of any excess at $4.16 per ounce (increasing by 1% per year). Thereafter Primero will deliver to Silver Wheaton a per annum amount equal to the first 6.0 million ounces of silver produced at San Dimas and 50% of any excess at $4.20 per ounce (increasing by 1% per year). The Company will receive silver spot prices only after the annual threshold amount has been delivered. Black Fox is subject to a gold purchase agreement under which Sandstorm is entitled to 8% of production at the Black Fox mine and 6.3% at the Black Fox Extension. 5. Cash costs and All-in Sustaining Costs are non-GAAP measures. Refer to the Company’s first quarter 2015 MD&A for a reconciliation to operating expenses. Note the calculation of all-in sustaining costs at San Dimas changed with the acquisition of a second producing asset and subsequently do not include corporate G&A. 6. Major assumptions include a flat gold price per ounce of $1,200, a flat silver price per ounce of $18. 7. Assumes San Dimas operates at least at 3,000 TPD from end of Q2 2016; and Primero management estimates for Black Fox production, based on 2,200-2,300 TPD operation and underground throughput increasing to 1,000 TPD by the end of 2015. 8. Based on 2015 Guidance, refer to news release dated January 20, 2015 “Primero Increases Production by 57% in 2014 and Expects a Further 20% Increase in 2015” as filed on www.sedar.com. 9. Adjusted net income/earnings and adjusted net income/earnings per share are non-GAAP measures. Neither of these non-GAAP performance measures has any standardized meaning and is therefore unlikely to be comparable to other measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the Company’s first quarter 2015 MD&A for a reconciliation of adjusted net income/earnings to reported net income. 10. “Operating cash flow” is operating cash flow before working capital changes. This and operating cash flows before working capital changes per share (CFPS) are non-GAAP measures which the Company believes provides a better indicator of the Company’s ability to generate cash flow from its mining operations. See the Company’s first quarter 2015 MD&A for a reconciliation of operating cash flows to GAAP. 11. The Company currently estimates that expanding the San Dimas mill to 3,000 TPD will require approximately $26.4 million of capital investment, with approximately $6 million expenditure expected in 2014 and the remainder spread over the following eighteen months. As a result of the preliminary nature of the capital assessment a contingency factor of 30% has been included in the capital estimate. Footnotes
  42. 42. TSX P | NYSE PPP | 42 Notes
  43. 43. TSX P | NYSE PPP | 43 Notes
  44. 44. PRIMERO MINING CORP. 79 Wellington St. West, Suite 2100 Toronto, ON M5K 1H1 T 416 814 3160 TF 877 619 3160 www.primeromining.com Tamara Brown Vice President, Investor Relations T 416 814 3168 info@primeromining.com June 15-17, 2015 RBC Capital Markets 2015 Global Mining & Materials Conference

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