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RUSSIA UAE
GOLD AND SILVER CONNECTION
RUSSIA A GOOD PLACE TO BE
Business Invest Road Show Russian UAE
October 29th 2014
GOLD HOLDING
GOLD HOLDING
GOLD HOLDING
GOLD HOLDING
GOLD HOLDING
GOLD HOLDING
Average cash costs in 2013 were 650-$975 $/ounce for the six leading companies in
Russia and were between 700 and 1200 $/ounce for the rest of gold-mining
companies
All-in-sustainable cost (AISC) in 1Q-2014 ranged from 1100to1360$/once for six
leading companies
Tax regime is similar to other mining jurisdictions ( RoyaltyMineral ExtractionTax6% )
Low gold price created favorable conditions for M&A deals for new investors
Russia is creating new incentives to attract financing for early stages of exploration
projects
Presence of reputable foreign consulting companies, globally recognized certified
laboratories and large engineering companies with modern technologies and best
practices for exploration and mining
Number of Russian gold-mining companies announced successful results of PILOTS
PLANT FOR REFRACTORY ORE. Some of them are started to construct and put these
technologies in to commercial operation.
State gold reserves are being steadily accumulated by Russia Central Bank, with
current level of 1094 tons of gold (WGC data)
Russian and foreign banks are actively providing financing to Russian gold-mining
companies
There are no restrictions to sell out the produced bullion. In 1998 Russian
commercial banks were permitted to export refined gold. In 2002 gold-mining
companies were granted the right to export bullion gold as well.
GOLD HOLDING
Based on the state of geological exploration, four categories of reserves(A, B, C1, C2) and three
categories of resources (P1, P2, P3) are identified in Russian official classification:
A Category reserves - Represent proved reserves with well defined boundaries, shape and
Structure of ore bodies.
B Category reserves - Represent probable reserves with pre-defined outlines of ore bodies,
without detailed mapping of natural minerals types.
1 Category reserves - include reserves of the explored deposits of complex geology and
unexplored reserves on new areas, with extrapolation.
Prognostic resources of category P1 - Include resources on the flanks and deeper levels of
known deposits. This category indicates the possibility of extending the boundary of a
mineralized zone beyond the C2 reserves, or the discovery of new mineral bodies with the help
of exploration works.
GOLD HOLDING
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Exploration
Russia needs fresh exploration, as grade has fallen dawn.
Equity financing
low gold price has made gold assets in Russia to become cheap
and it is time to make investments.
Gold trading
Russian bank need to have new counter-parties (as western
banks are lowering trading limits) to preserve 100% liquidity of
gold in Russia.
GOLD HOLDING
RUSSIA UAE
GOLD AND SILVER CONNECTION
Business Invest Road Show Russian UAE
October 29th 2014
GOLD HOLDING
GOLD HOLDING
GOLD HOLDING