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10-102499 2010
CIBC World Markets does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Ian Parkinson 1 (416) 956-6169
Ian.Parkinson@cibc.ca
See "Important Disclosures" section at the end of this report for important required disclosures, including potential conflicts of interest. See "Price Target Calculation" and "Key Risks to Price Target" sections at the end of this report, or at the end of each section hereof, where applicable.
CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8 (416) 594-7000
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Resource Size Cu
Resource Cu Eq
EV / lb Cu Eq
Developers Abacus Mining And Exploration Corp Antares Minerals Inc Augusta Resource Corp Baja Mining Corp Candente Resource Corp Copper Fox Metals Inc Copper Mountain Mining Corp Coro Mining Corp Duluth Metals Ltd Entre Gold Explorator Resources Inc Far West Mining Ltd International Pbx Ventures Ltd Lumina Copper Corp Minera Andes Inc Nevada Copper Corp NGEX Resources Norsemont Mining Inc Northern Dynasty Minerals Ltd Pacific Booker Minerals Inc Panoro Minerals Ltd Polymet Mining Corp Redhawk Resources Inc Terrane Metals Corp Western Copper Corp
Source: Company reports and CIBC World Markets Inc.
7 8 5 18 12 19 9 4 6 20 11 15 20 20 17 3 20 10 20 14 20 1 2 13 16
6 8 5 17 13 20 11 7 4 20 10 12 19 20 18 3 20 16 20 15 20 2 1 9 14
1 9 2 20 7 18 6 4 19 20 16 13 15 20 17 5 20 10 20 11 20 3 14 8 12
18 1 6 16 8 3 20 15 7 19 21 10 14 22 2 5 22 11 22 17 22 12 13 9 4
11 19 10 8 16 9 20 12 3 2 17 7 4 20 13 20 20 15 20 14 20 1 18 6 5
8 11 21 20 1 16 25 2 15 14 17 23 10 4 12 13 6 19 9 18 5 22 7 24 3
10 13 23 18 1 11 25 3 9 14 19 20 5 4 16 17 6 22 7 21 8 15 12 24 2
14 13 3 8 19 16 1 12 5 20 11 4 18 20 15 7 20 9 20 10 20 3 6 2 17
23 3 6 16 9 8 19 10 12 5 25 18 24 7 2 13 14 17 1 21 22 15 20 11 4
24 7 12 16 14 4 22 15 3 8 25 11 21 10 6 17 13 18 1 20 23 9 19 5 2
17 8 7 20 12 4 16 14 11 2 25 15 21 10 6 18 13 19 1 22 23 9 24 5 3
Grade Cu Eq 23 14 22 2 19 20 25 16 1 6 5 4 24 9 11 13 10 17 12 18 8 7 3 21 15
EV / lb Cu
Tonnage
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Investment Summary
In this report, we attempt to objectively filter Americas-focused junior copper names based on third-party vetted public information only. The ranking system highlights those names that score well on metrics we feel are relevant to equity investors and potential acquirers as well. These names represent a basket of what we would term to be best-in-class Canadian-listed, junior copper developers of the over 150 companies we originally screened, and would suggest a diversified approach to investing in these names due to liquidity risk and the catalyst-driven nature of returns in this sector. While extremely difficult to predict when and by whom each of the companies gets acquired, or when news events will move the stock price, it can be seen that our higher ranked companies tend to be those that have already entered into a significant transaction with development partners or potential acquirers.
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Company Australian Companies Balmoral Iron Ore PTY Ltd Michelango Ltd Midwest Corporation Felix Resources Canadian Companies Tyler Resources Canadian Royalties Chariot Resources Ltd Commonwealth and British Minerals Ltd Corriente Resources Inc Far Southeast Gold Resources Inc Beaver Brook Antimony Mine Northern Peru Copper Corporation Cancelled takeovers Lynas Corporation DMC Mining
Source: AME and Bloomberg.
Chinese Owner CITIC Pacific Golden China Resources Corporation Sinosteel Yanzhou Coal Jinchuan Group Jilin Jien Nickel Industry China Sci-Tech Zijin Mining Group CRCC-Tongguan Investment Zijin Mining Group Hunan Non-Ferrous Metal Corporation China Minmetals / Jiangxi Copper Hunan Non-Ferrous Metal Corporation Meijin Energy Group
Commodity Iron Ore Gold / Base Iron Ore Coal Nickel / Copper Nickel Copper Gold / Base Copper Gold Base Metals Copper Rare Earths Base Metals
Value (US$MM) 200 130 1,360 2,900 188 181 255 170 679 70 30 450 213 37
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
25% partner on Boleo with a consortium of Korean companies 80% of Lookout Hill Project owned by Ivanhoe
Partnered with 50/50 with Anglo American on Pebble 25% of Copper Mountain project is owned by Mitsubishi Materials
The score is based on the weighted rankings of each company in select criteria that we feel are the most representative at how the market rates these projects and companies quantitatively. Exhibit 3 summarizes the weightings we used for each of the criteria that we believe capture the economics of these projects in the simplest way and are consistent with how a potential acquirer would view the company/project.
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
copper resources. According to U.S. Geological Survey (USGS) data, China holds (in country) only 6.3% of total global copper resources and reserves. It is for this reason that copper is high on the list of strategic resources for the country and why acquisitions of copper assets by Chinese interests have risen in the past year. We summarize some of these transactions later.
Source: USGS.
2. Demand China is the largest consumer of the red metal and requires it to
continue the national development programs that are underway in copper intensive industries such as residential home building, electricity infrastructure, and transportation.
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Consumption
Source: USGS.
Production
Reserv e base
3. Regional trading partners Both South Korea and Japan have a vested
interest to have copper supply to trade with China for the above mentioned reasons. In very simplistic terms, we believe if youre long what Chinas short, youre in a good position.
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
9
Total Acquisition Cost as a % of Prevailing Cu Price 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% Pyhasalmi (Inmet) - Jan-02 Disputada (Anglo American) - May-02 Highland Valley (Teck Cominco) - Dec-03 Robinson Mine (Quadra) - Feb-04 Neves Corvo (Eurozinc) - Feb-04 Marcona (Chariot Res) - May-04 Las Bambas (Xstrata) - Aug-04 Hudson Bay (Ontzinc) - Dec-04 Magistral (Quadra) - Jan-05 Las Cruces (Inmet) - Apr-05 Cerro Verde (Sumitomo/Buenaventura) - Jun-05 Carlota (Quadra) - Dec-05 La Granja (Rio Tinto) - Dec-05 Adastra (First Quantum) - Jan-06 Cerro Corona (Gold Fields) - Jan-06 Tintaya (Xstrata) - May-06 Michiquillay (Anglo American) - Apr-07 Western Keltic (Sherwood) - Nov-07 El Galeno (CNMC/Jiangxi) - Dec-07 Tyler Resources (Jinchuan) Jan-08 El Tesoro & Esperanza (Marubeni) - Apr-08 Sherwood (Capstone)- Sept-08 Copper Mountain (Mitsubishi)- Nov-09 Centenario Copper (Quadra)- Feb-09 Stingray (Mercator)- Oct-09 Gibraltar (Sojitz)- Nov-09 Corriente (CRCC-Tongguan)- Dec-09 Nokomis (Antofagasta) - Jan-10 Chariot (China Sci-Tech)- Feb-10 Lady Annie (China Sci-Tech)-Mar-10 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 TAC as % Cu Price Acquisition Capital Operating Total Acquisition Cost ($/lb Cu Recoverable Reserve)
We then take the average of these transactions and apply them to our coverage universe. Using a range of $0.05/lb.-$0.15/lb. premium paid per recoverable pound as implied by recent transaction, we can then look at the potential upside our developers have relative to their current market capitalizations. Of course the actual premium paid for a companys equity is going to depend on the perceived level of risk for the project, level of detailed engineering, and quality of the asset.
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
2,500.0
2,000.0
1,500.0
1,000.0
500.0
Pacific Booker Minerals Inc Abacus Mining And Exploration Corp Candente Resource Corp International Pbx Ventures Ltd Copper Mountain Mining Corp Explorator Resources Inc Redhawk Resources Inc Augusta Resource Corp Copper Fox Metals Inc Antares Minerals Inc Norsemont Mining Inc Minera Andes Inc Nevada Copper Corp Terrane Metals Corp Far West Mining Ltd Duluth Metals Ltd Western Copper Corp Polymet Mining Corp Coro Mining Corp Baja Mining Corp Entre Gold
In addition to buying companies outright, China has also acted as a key strategic investor for many mining companies over the past year, putting billions of dollars to work. These investments have helped companies recapitalize, continue to develop and even build new mining projects. While we have highlighted transactions in many different commodity types, we anticipate that copper will soon be very prevalent on this list.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Chinese Owner Hunan Valin Iron and Steel Anshan Iron and Steel Guangdong Foreign Trade Group CITIC Australia Coal Sinosteel Gang Huang Guangdong Rising Asset Management Sichuan Hanlong Group GFTG Shengtor Metal China Non-Ferrous Zhongjin Lingnan Zijin Mining Group Jinchuan Group Jinchuan Group Hunan Non-Ferous Metal Corporation Wuhan Iron and Steel Sichuan Taifeng Group Shandong Provincial Bureau of Geology Fushan International Energy Group Chiping Xinfa Group Corporation Baosteel China Guangdong Nuclear Power Group Wuhan Iron and Steel Jinchuan Group Private China Investment Corporation Jilin Jien Nickel Industry Li Ka-Shing China Investment Corporation Sichuang Taifeng Group Aluminum Corporation of China
Commodity Iron Ore Iron Ore Zinc Coal Iron Ore Manganese Copper/Gold Molybdenum Gold Zinc Zinc Copper/Gold Base Nickel Lead / Zinc Iron Ore Iron Ore Bauxite Iron Ore Bauxite Coal Uranium Iron Ore Nickel Silver Diversified Nickel Energy Energy Nickel Diversified
Share 17.22% 36.12% 19.83% 22.40% 5.55% 4.53% 19.75% 32.20% 16.00% 9.33% 52.00% 34.79% 12.89% 9.47% 74.28% 13.03% 19.90% 12.98% 14.29% 18.90% 15.00% 69.34% 20% 42% 3% 17% 51% 36% 6% 30% 20%
Mkt Cap (US$ MM) 14,141.7 723.0 448.5 3,025.0 610.2 742.4 1,831.0 234.0 135.1 82.2 214.1 383.9 246.4 38.7 17.6 106.2 102.3 33.6 1,737.8 33.4 2,613.4 82.0 1,957.4 73.5 1,273.7 22,410.3 31.0 21,032.3 8,343.3 17.6 124,855.9
11
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Explorator Resources Inc Far West Mining Ltd International PBX Ventures Ltd Lumina Copper Corp Minera Andes Inc Nevada Copper Corp NGEX Resources
Norsemont Mining Inc Northern Dynasty Minerals Ltd Pacific Booker Minerals Inc Panoro Minerals Ltd Polymet Mining Corp Redhawk Resources Inc Terrane Metals Corp Western Copper Corp
Note: PEA: Preliminary Economic Assessment (a.k.a. Scoping Study), PFS: Prefeasibility Study, DFS: Definitive Feasibility Study. Source: Company reports.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Exhibit 11. Who Has The Most Pounds In The Ground? Total Attributable Metal Contained By Company On Copper Equivalent (CuEq Basis) Excluding Northern Dynasty at 76B lbs. CuEq
25 20 15 10 5 Pacific Booker Minerals Inc Abacus Mining And Exploration Corp International Pbx Ventures Ltd Candente Resource Corp Copper Mountain Mining Corp Explorator Resources Inc Redhawk Resources Inc Augusta Resource Corp Antares Minerals Inc Copper Fox Metals Inc NGEX Resources Norsemont Mining Inc Minera Andes Inc Western Copper Corp Polymet Mining Corp Nevada Copper Corp Terrane Metals Corp Lumina Copper Corp Panoro Minerals Ltd Far West Mining Ltd Duluth Metals Ltd Coro Mining Corp Baja Mining Corp Entre Gold
Northern Dynastys attributable resource is 76B lbs. CuEq more than 4x Western Copper. Note: CuEq calculated based on CIBC long-term commodity forecasts. Source: Company reports and CIBC World Markets Inc.
13
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
While many companies hold large resources in their portfolio, we believe the market is currently paying more for projects with engineering and economics put around them. With this in mind, we have estimated the total copper equivalent production on an attributable basis (Exhibit 12). As can be seen in comparing Exhibits 11 and 12, this can change the relative ranking.
Exhibit 12. If All Projects Were Built, Who Would Have The Most Production? [Expected Total Attributable Production LOM (CuEq)]
Total Production LOM (MM lbs CuEq) 12,000 10,000 8,000 6,000 4,000 2,000 Redhawk Resources Inc Pacific Booker Minerals Inc Abacus Mining And Exploration Corp Candente Resource Corp International Pbx Ventures Ltd Copper Mountain Mining Corp Explorator Resources Inc Augusta Resource Corp Antares Minerals Inc Copper Fox Metals Inc Western Copper Corp Minera Andes Inc Norsemont Mining Inc Nevada Copper Corp Polymet Mining Corp Duluth Metals Ltd Terrane Metals Corp Far West Mining Ltd Coro Mining Corp Baja Mining Corp Entre Gold
14
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Exhibit 13 outlines our 25 developers based on published asset size using the respective mine plans last economic cut-off grade. In the case of multiple projects, it is a weighted average grade. Higher-grade projects typically have lower operating costs and tend to have a cushion in overall production, once in operation. It is for this reason that higher-grade assets are seen as more desirable.
Exhibit 13. Who Has The Best Grade? Copper Equivalent Grade By Company (M+I+I)
1.80% 1.60% 1.40% Grade (CuEq) 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Redhawk Resources Inc Explorator Resources Inc Northern Dynasty Minerals Ltd Pacific Booker Minerals Inc Abacus Mining And Exploration Corp NGEX Resources International Pbx Ventures Ltd Candente Resource Corp Augusta Resource Corp Copper Fox Metals Inc Antares Minerals Inc Western Copper Corp Norsemont Mining Inc Polymet Mining Corp Nevada Copper Corp Terrane Metals Corp Far West Mining Ltd Minera Andes Inc Duluth Metals Ltd Entre Gold Panoro Minerals Ltd Coro Mining Corp Copper Mountain Mining Corp Lumina Copper Corp Baja Mining Corp
Note: CuEq calculated based on CIBC long-term commodity forecasts. Source: Company reports and CIBC World Markets Inc.
15
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Cash costs of production is our final criterion for our screening process (Exhibit 14). For this calculation, we use the disclosed onsite and offsite costs for each operation on a per tonne milled basis, then apply standard operating metrics for each operation and project-specific average production and CIBC long-term commodity price forecasts in order to arrive at standardized by-product assumptions. In the case of multiple operations, we have applied a weighted average.
Exhibit 14. Summary Cash Costs (Assuming All Projects Are Built)
2.00 1.50 Cash Costs (US$/lb) Net of byproduct credits 1.00 0.50 (0.50) (1.00) (1.50) Explorator Resources Inc Abacus Mining And Exploration Corp Pacific Booker Minerals Inc Redhawk Resources Inc Augusta Resource Corp Copper Fox Metals Inc International Pbx Ventures Ltd Candente Resource Corp Western Copper Corp Norsemont Mining Inc Terrane Metals Corp Polymet Mining Corp Antares Minerals Inc Far West Mining Ltd Duluth Metals Ltd Minera Andes Inc Copper Mountain Mining Corp Nevada Copper Corp Baja Mining Corp Entre Gold Coro Mining Corp
Note: By-product credits calculated using CIBC long-term commodity forecasts. Source: Company reports and CIBC World Markets.
16
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
In order to get a sense of the size of the projects represented in this report, we also want to highlight the amount of annual production that, once built, is represented by each one of these companies. Exhibit 15 shows how much projected production will cost based solely on the required capex of the projects in their respective portfolios currently.
17
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Another question that we attempt to address in this report is the companys financial capacity to build the project. During the last two years, we have seen market valuations for junior mining names plummet with many not rebounding back to previous lofty levels. This combined with credit markets for mining names collapsing has left many companies without the means to build their projects. Without considering debt, we look at the companies market capitalizations relative to their required capex in an effort to see how the market is valuing the likelihood of the companies building their projects. Exhibit 17 outlines the most financeable projects based on the estimated attributable capital expenditure to get all of the projects in their portfolios into production. Names to the left clearly are benefiting from more market confidence to build out their respective projects.
18
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
19
Market Cap / Attributable Capex 100% 120% 20% 40% 60% 80% 0% Copper Mountain Mining Corp Terrane Metals Corp Polymet Mining Corp Augusta Resource Corp Far West Mining Ltd Duluth Metals Ltd Redhawk Resources Inc Nevada Copper Corp Baja Mining Corp Norsemont Mining Inc Explorator Resources Inc Coro Mining Corp Antares Minerals Inc Abacus Mining And Exploration Corp Minera Andes Inc Copper Fox Metals Inc Western Copper Corp International Pbx Ventures Ltd Candente Resource Corp
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
A Question Of Torque
While not always a primary focus of junior mining investors given the typical long time period to cash flow, shorter-term investors may be more interested in finding investments that provide leverage to copper. Exhibit 18 outlines the market betas to copper prices based on weekly returns over the past two years. We have also outlined the beta of these stocks during rising price weeks as well as those with falling copper prices. While most are similar to their overall beta, there are some that may provide better positive leverage or downside protection.
Weekly Returns
Positive Beta
Negative Beta
Source: Bloomberg.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
CIBC Americas Focused Junior Copper Developers Index S&P/TSX COMPOSITE INDEX
LME COPPER SPOT ($) CIBC Americas Focused Junior Copper Producers' Index
Source: Bloomberg.
21
22
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Stake 100% 100% 100% 100% 100% 70% 100% 93% 75% 100% 100% 60% 100% 20% 20% 49% 100% 100% 100% 100% 49% 100% 100% 100% 100% 100% 100% 50% 100% 30% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Location Canada Peru Peru USA USA Mexico Peru Canada Canada Argentina Argentina USA USA Mongolia Mongolia Chile Chile Chile Argentina Argentina Argentina USA USA Argentina Canada Eritrea Peru USA Canada Peru Peru USA USA Canada Canada Canada Canada Canada Canada Canada Canada
Engineering Complete PEA PEA PEA DFS DFS DFS PEA PFS Construction PEA PEA PEA RD RD RD PEA PEA PEA RD PEA Production PEA PEA RD RD RD DFS RD DFS RD RD DFS PEA RD DFS DFS RD PFS PFS RD RD
Total Cu Resource (MM lbs.) 3,316 2,832 8,846 617 8,404 6,092 7,680 8,256 4,127 386 6,775 11,564 7,129 7,064 9,630 2,215 3,684 1,186 8,714 12,522 5,042 1,419 3,588 1,217 550 4,011 80,602 2,317 1,591 1,528 4,766 2,991 4,081 2,905 260 144 61 5,838 1,751 2,938
Total CuEq Resource (MM lbs.) 4,875 2,832 10,779 617 9,983 11,210 8,828 17,451 4,127 502 7,884 30,496 8,379 8,687 17,079 2,788 10,913 3,345 12,537 14,322 752 5,821 1,604 5,806 2,241 1,174 5,497 153,726 3,354 1,657 2,135 12,689 3,462 8,257 6,722 359 178 535 14,475 3,218 3,012
Tonnage (000) 523,000 287,130 688,312 133,800 865,800 424,600 750,000 1,580,121 546,300 33,330 628,693 823,873 810,390 212,500 910,000 155,184 547,300 423,362 841,000 1,037,000 3,290 486,167 35,865 460,000 176,300 27,700 441,300 10,777,000 271,089 156,900 90,000 889,800 186,551 650,600 727,200 10,454 8,816 39,000 1,317,000 283,700 34,000
Initial Capex Grade CuEq US$ MM (100%) 0.42% 534 0.45% 125 0.71% 2,105 0.21% 65 0.52% 832 1.20% 889 0.53% 1,206 0.50% 3,100 0.34% 438 0.68% 163 0.57% 278 1.68% 1,332 0.47% NA 1.85% NA 0.85% NA 0.82% 434 0.90% 941 0.36% 774 0.68% NA 0.63% 2,789 10.37% NA 0.54% 526 2.03% 192 0.63% NA 0.58% NA 1.92% NA 0.57% 846 0.65% NA 0.56% 517 0.48% NA 1.08% NA 0.71% 312 0.93% 198 0.58% NA 0.42% 881 1.56% 151 0.92% NA 0.62% 325 0.50% 1,838 0.51% NA 4.02% NA
Cash Costs 0.56 1.10 1.08 1.58 0.32 0.17 0.96 0.33 1.33 0.51 0.64 (0.63) NA NA NA 0.98 (0.20) (0.48) NA 0.67 NA 1.61 1.26 NA NA NA 0.77 NA 0.73 NA NA (1.29) 1.03 NA (0.22) 0.93 NA NM (0.07) NA NA
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Project Scatters
Exhibit 20. Tonnage Versus CuEq Grade
Americas Underground Projects 4.50% 4.00% 3.50% Kutcho Copper Grade (CuEq) 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1,000 Cozamin (Zinc) Giant Copper (Underground) Condestable / Raul Aranzazu Minera Valle 10,000 Tonnage (ln) 100,000 1,000,000 Copper Creek Boleo Pumpkin Hollow (Ungerground) Redstone Cozamin (Copper) Nevada Copper Corp Baja Mining Corp Imperial Metals Corp Western Copper Corp Aura Minerals Inc Nokomis Capstone Mining Corp Iberian Minerals Corp Duluth Metals Ltd Amerigo Resources Ltd Redhawk Resources Inc
US/Canada Early Stage OP 1.00% 0.90% 0.80% Copper Grade (CuEq) 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 1,000 Island Copper Casino (Sulphide) Catface Ajax Ann Mason Giant Copper (Open Pit) Casino (Oxide) GJ Carmacks (Sulphide) Pumpkin Hollow Berg Schaft Creek Pebble Imperial Metals Corp Western Copper Corp Northern Dynasty Minerals Ltd Terrane Metals Corp Nevada Copper Corp Abacus Mining And Exploration Corp Ngex Resources Copper Fox Metals Inc 10,000 100,000 Tonnage (ln) 1,000,000 10,000,000 100,000,000 Entre Gold
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
1.80%
Taseko Mines Ltd
1.60% 1.40% 1.20% Grade (CuEq) 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% -
Imperial Metals Corp Western Copper Corp Augusta Resource Corp Terrane Metals Corp
Red Chris
Polymet Mining Corp Pacific Booker Minerals Inc Copper Mountain Mining Corp
Mount Polley Morrison Huckleberry Carlota Copper Mountain Rosemont (Oxide) 200 400
800
1,000
1,200
1.20% Cotabambas 1.00% Arapiraca (Oxide) Santo Domingo Arapiraca (Sulphide) 0.80% Grade CuEq El Espino-Venus San Jorge (Oxide) Jose Maria 0.60% Bayaguana Antilla 0.40% Vizcachitas (Oxide) 0.20% Haquira (Oxide) Copaquire Caariaco Vizcachitas (Sulphide) San Jorge (Sulphide) Constancia Sierra Gorda Haquira (Sulphide) Taca Taca
Antares Minerals Inc Aura Minerals Inc Candente Resource Corp Coro Mining Corp Explorator Resources Inc Far West Mining Ltd Globestar Mining Corp International Pbx Ventures Ltd Los Andes Copper Ltd Lumina Copper Corp Ngex Resources Panoro Minerals Ltd Quadra Mining Ltd Norsemont Mining Inc
0.00% 200 400 600 800 1,000 1,200 Tonnage (MM) 1,400 1,600 1,800 2,000
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Lady Annie (China Sci-Tech)-Mar-10 Chariot (China Sci-Tech)- Feb-10 Nokomis (Antofagasta) - Jan-10 Corriente (CRCC-Tongguan)- Dec-09 Gibraltar (Sojitz)- Nov-09 Stingray (Mercator)- Oct-09 Centenario Copper (Quadra)- Feb-09 Copper Mountain (Mitsubishi)- Nov-09 Sherwood (Capstone)- Sept-08 El Tesoro & Esperanza (Marubeni) - Apr-08 Boleo (Korea Resources)- Apr-08 Tyler Resources (Jinchuan) Jan-08 El Galeno (CNMC/Jiangxi) - Dec-07 Western Keltic (Sherwood) - Nov-07 Michiquillay (Anglo American) - Apr-07 Tintaya (Xstrata) - May-06 Cerro Corona (Gold Fields) - Jan-06 Adastra (First Quantum) - Jan-06 La Granja (Rio Tinto) - Dec-05 Carlota (Quadra) - Dec-05 Cerro Verde (Sumitomo/Buenaventura) - Jun-05 Las Cruces (Inmet) - Apr-05 Magistral (Quadra) - Jan-05 Hudson Bay (Ontzinc) - Dec-04 Las Bambas (Xstrata) - Aug-04 Marcona (Chariot Res) - May-04 Neves Corvo (Eurozinc) - Feb-04 Robinson Mine (Quadra) - Feb-04 Highland Valley (Teck Cominco) - Dec-03 Disputada (Anglo American) - May-02 Pyhasalmi (Inmet) - Jan-02 Average Average Excl. Outliers Range 1/4 Std. Dev.
Source: Company reports, Reuters.
Jan-10 Feb-10 Jan-10 Dec-09 Nov-09 Oct-09 Feb-09 Oct-08 Sep-08 Apr-08 Apr-08 Jan-08 Dec-07 Nov-07 May-06 May-06 Jan-06 Jan-06 Dec-05 Oct-05 Jun-05 May-05 Jan-05 Dec-04 Aug-04 May-04 Feb-04 Dec-03 Dec-03 May-02 Jan-02
$3.560 $3.350 $3.388 $3.290 $3.100 $2.730 $1.570 $2.879 $3.143 $3.933 $3.950 $3.118 $3.011 $3.049 $3.548 $3.710 $2.081 $2.131 $2.075 $1.836 $1.531 $1.521 $1.444 $1.423 $1.290 $1.228 $1.311 $0.973 $0.979 $0.724 $0.682
47% 40% 56% 44% 42% 55% 94% 61% 66% 36% 30% 53% 26% 38% 22% 27% 22% 32% 32% 39% 41% 37% 53% 41% 60% 51% 54% 74% 69% 77% 71% 55% 54% 50%
NA 0.74x NA 0.83x 1.08x 0.72x 0.17x NA 0.77x 1.54x NA 1.02x 0.47x NA NA 1.54x 0.59x 0.49x NA 0.70x NA 0.66x NA NA NA 0.64x 0.68x 0.72x 0.61x 0.59x 0.64x 0.83x 0.82x 0.74x
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Exhibit 22. CIBC Junior Copper Rankings, Market Cap, And Infrastructure Risk
25.00 CIBC Junior Mining Score 20.00 15.00 10.00 5.00 Abacus Mining And Exploration Corp Northern Dynasty Minerals Ltd Pacific Booker Minerals Inc Explorator Resources Inc Redhawk Resources Inc Augusta Resource Corp Copper Fox Metals Inc Antares Minerals Inc International Pbx Ventures Ltd Candente Resource Corp Norsemont Mining Inc Terrane Metals Corp Far West Mining Ltd NGEX Resources Minera Andes Inc Western Copper Corp Polymet Mining Corp Nevada Copper Corp Copper Mountain Mining Corp Lumina Copper Corp Panoro Minerals Ltd Duluth Metals Ltd Coro Mining Corp Baja Mining Corp Entre Gold 800 700 500 400 300 200 100 Mkt Cap (C$MM) 600
CIBC Score
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
In other countries with adequate infrastructure and defined copper resources, there may be resistance to mine development from local residents, special interest groups, and governments. This can be due to industry groups in the region of the mine for example grape growers in some areas of Argentina, or from environmental groups who point to minings history of environmental mishaps, such as in B.C. Local groups have also been known to impede mine development in different parts of the world as well. Using a basic point system, we attempt to assess these risks on a project by project basis, then sum them up for each company in an attempt to highlight those companies that carry a significant amount of these risks and as a result may trade at a discount to peers until issues like benefit agreements and environmental permits are completed.
Political Risk
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Profile Profile Antaresoperates in an emerging copper district in Peru, developing the 100%-owned, Haquira project , a large Cu-Mo Antares operates in a newly emerging copper district in Peru developing the Haquira deposit. A large prophyry A preliminary economic assessment (scoping molybdenum, gold and silver credits.project. porphyry. copper deposit containing copper, with study) has outlined the economics of the Currently only the oxide portion of the deposit has had any engineering and economic analysis conducted on it.
Investment Summary Investment Summary ANM controls one of the largest copper deposits in our junior mining universe, with 13.6B lbs. of CuEq contained. A With the revised resource calculation released in , Antares controls one of the largest copper deposits in the preliminary economic assessmentbillion lbcompleted including the sulphide resource, giving development on the the junior mining universe with 10 is now of copper contained. With the up coming technical work options for the project. The low be released by mid-year, the company is poised to add significant price to the project sulphide portion tocapex oxide project, for ~US$300MM, or the large combined project carry a valuetag of US$1.9B. Xstrata announced its intention to develop the Las copper producercontaining to build itsof CuEq, term production and possibly garnering interest from a larger Bambas project, looking 23.6B lbs. longer which, combined with the profile. Antapaccay expansion, will bring $5.7B of infrastructure spending to the region. Possible cost sharing arrangements for power, pipelines and roads could reduce the capital required to build Haquira.
Outlook
- A scoping study on the sulphide resource Outlook
Cash ($mm) Working capital ($mm) Total debt ($mm) Common equity ($mm) Net debt/common equity (x)
- Drilling activities may also shed further light on the mineralized system present in the region. - Cost sharing agreements with Xstrata may improve the economics of the Haquira project substantially. - Acquisition of water and surface rights as well as environmental permitting will also further derisk the project and make the project more desirable to a potential suitor.
CIBC Forecast Cu price (US$/lb) Mo price (US$/lb) Au price (US$/oz) Ag price (US$/oz) F2011E F2012E 2.50 15.00 1,000 15.00 F2013E 2.00 15.00 1,000 15.00 F2014E 2.00 14.00 1,000 15.00 F2015E 2.00 14.00 1,000 15.00 F2016E F2015E E 281 # 3 # 15 # 668 # F2012E 0 (2) (4) (4) (4) (0.05) F2016E 600 500 400 300 200 100 0 F2012E F2013E F2014E F2015E F2016E Cu production (mm lbs)
Year-end Jan. 31 EPS ($) CFPS ($) Book value ($) NPV per share (C$) P/E (x) P/CF (x) P/book value (x) P/NPV (x) EV/EBITDA (x) EV/EBIT (x) EV/OpFCF (x) ROE ROCE Dividend/share ($)
F2011E (0.05) (0.02) 84 nm nm 3.2 nm nm nm -5% -5% 0.00 Copper nm 3.11 Grade Mo (%)
Operating Metrics Cu production (mm lbs) Mo production (mm lbs) Au production (000 oz) Ag production (000 oz) Income Statement Revenue EBITDA EBIT EBT Reported income EPS ($)
F2013E -
F2014E -
Sensitivity to 10% Change in Forecast Price EPS ($) - 2010E NAVPS ($) Reserves & Resources Haquira (Oxide) Haquira (Sulphide) Tonnes (mm) 287.2 688.3
ABX
Key Ratios Growth EBITDA YoY EBIT YoY EBT YoY OpFCF YoY 3-Yr CAGR EPS 3-Yr CAGR CFPS 3-Yr CAGR EBITDA 3-Yr CAGR EBIT Profitability EBITDA margin EBIT margin EBT margin Net margin Coverage Dividend cover (x) Interest cover (x)
Au (g/t)
0.01%
0.038
Operating Summary Haquira (Oxide) Copper Production (mm lbs) Cash cost (US$/lb. Cu) Haquira (Sulphide) Copper Production (mm lbs) Moly Production (mm lbs) Gold Production (000 oz) SilverProduction (000 oz) Cash cost (US$/lb. Cu)
F2013E
F2014E
F2015E
F2009A F2010A F2011E F2012E Cash Flow Earnings after tax 0 (4) (4) (3) (4) + Depreciation & amortization 2 0 0 0 0 + Deferred tax (1) 0 0 0 0 7 0 1 1 1 + Other Funds from operations 8 (3) (3) (2) (2) ## - Capital expenditures Free cash flow Free CFPS Operating free cash flow ## ## ## ## 14 (18) (0.28) (18) 9 (12) (0.19) (12) 27 (29) (0.45) (29) 7 (9) (0.14) (9)
nm nm nm nm
nm nm nm nm
nm nm nm nm
nm nm nm nm
79.1 1.12
nm nm
nm nm
nm nm
nm nm
NPV Valuation (1) Mining assets Haquira Oxide (100%) Haquira Sulphide (100%) Haquira Sulphide UG (100%)
US$mm
Project Location
Balance Sheet Cash Other current assets Other assets Capital assets Total assets Current liabilities Debt (LT & current) Other liabilities Preferred equity Common equity Total liabilities and equity Net debt (cash)
122 620 41
783 7 -
5.08 0.05 -
Net asset value (US$) 790 Net asset value (C$) 1. 10% real discount rate on assets, CIBC price forecasts and after tax.
5.12 5.89
MANAGEMENT David Anderson and Paul Zweng, Founding Directors John Black, President, CEO & Director Mark Wayne, CFO and Founding Director Web Site www.antaresminerals.com
29
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/14/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 S-09 N-09 J-10 M-10 M-10 J-10 .5 M .0 M 2.0 M 1.5 M 1.0 M
C$0.17 N/A
0.38 345.75 nm 171.3 150.8 29.1 25.0 CQ2 2010 4.8 1.47 48.4 nm (0.0) 0.3 (0.0) CQ2 2010 (0.58) (0.61) (0.61) (0.54) (0.58) (4.47) CQ2 2010 2.51 48.14 50.65 1.04 1.25 2.29 48.36 156.32 0.31 0.31 95.48 CQ2 2010 (0.54) 0.51 (1.34) (2.14) (2.97) (1.81) (0.01) (0.00)
0.15
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 (0.58) (0.53) (0.59) (0.61) (0.50) (0.73) (0.61) 0.58 (0.73) (0.61) 0.58 (0.73) 0.01 (0.01) 0.01 (0.01) (0.57) (0.52) (0.58) (3.60) (3.73) (4.21) CQ1 2010 CQ4 2009 CQ3 2009 2.51 7.06 3.70 48.14 46.81 51.19 50.65 53.87 54.89 1.04 3.69 3.66 1.25 1.25 1.97 2.29 4.95 5.63 48.36 48.93 49.26 156.33 156.30 124.30 0.31 0.31 0.40 0.31 0.31 0.40 95.48 90.82 89.75 CQ1 2010 CQ4 2009 CQ3 2009 (0.61) 0.58 (0.73) 0.51 (0.05) (0.18) (1.34) (0.94) (0.33) (2.14) 5.38 0.18 (2.97) 4.39 (0.32) (0.83) (1.07) (0.51) (0.01) (0.01) (0.00) 0.00 (0.00) (0.00)
#N/A N/A 97.0 0.55 #N/A N/A (0.5) #N/A N/A #N/A N/A nm (3.7) #N/A N/A CQ2 2009 (0.70) (1.02) (1.02) (1.02) (0.01) (0.01) (0.69) (4.19) CQ2 2009 4.06 50.57 54.64 3.31 1.44 4.74 49.89 123.17 0.41 0.41 91.32 CQ2 2009 (1.02) (1.20) (0.71) 2.50 0.59 (1.88) (0.02) (0.01)
3.0 M 2.5 M
Project Locations
Project Specifics Ownership % 49% Class Location British Columbia, Canada Tonnes (MM) 442.0 81.0 Engineering Completed PEA Deposit Type Cu Au Porphyry Mining Method OP Mine Life (yrs) 23 Ratio (w/o) 1.7 Recovery Method Floatation
Ajax Resources
Ajax
M+I Inferred
Contained Metal Cu Au (MM lbs) (000 oz) 2,923 2,700 393 417 Attributable Production (avg p.a.) Cu Au Throughput (tpd) (MM lbs) (000 oz) 60,000 51.5 35.3 Management Team THOMAS A MCKEEVER, CHAIRMAN ANDREW F POOLER, EXEC VP/COO JOHN PATRICK NICOL, SENIOR VP/CFO
Operating Metrics
Ajax
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.amemining.com
30
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (10/22/2009) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10 6.0 M 4.0 M 2.0 M .0 M
C$3.35 N/A
Key Projects Rosemont Augusta's 100%-owned Rosemont deposit is expected to produce 221 million pounds per year of copper once it begins production in late 2011, accounting for as much as 10% of US copper output. In addition to copper, Rosemont will produce significant amounts of silver and molybdenum over its 20-year mine life. As of January 2009, Rosemont has proven and probable mineral reserves containing 546 million tons grading 0.45% copper, 0.015% molybdenum and 0.12 ounces per tonsilver in sulfide ore, and an additional 70 million tons at 0.17% copper in oxide ore. Significant planning has gone into the facility design and construction of the Rosemont Copper mine, reducing its footprint to less than half the size of current mines in the Tucson area. The facility will be screened by perimeter buttresses to minimize the visual impact during both construction and operation and will not be visible from Green Valley, Vail, Sahuarita, Tubac or Tucson. The buttresses will both stabilize the soil and shield visual impact from state highway SR-83. Only a small portion of the final pit configuration will be visible from the highway. The Rosemont Copper property is located in Pima County, approximately 50 kilometers southeast of Tucson, Arizona, and is situated near a number of large porphyry type producing copper mines operated by Freeport McMoRan and Asarco. The site is easily accessible via highway from east to west, with a network of unpaved roads leading into the property. It is also located less than 10 to 15 kilometers from a major transmission line as well as the main rail lines connecting to major ocean ports. On January 15, 2009 Augusta released an updated feasibility study for the Rosement copper project. The study concluded that Rosemont is economically robust at a range of metal price assumptions and carries low development risk. Specifically, Rosemont is expected to produce 221 million pounds of copper over a 20-year mine life, along with significant amounts of silver and molybdenum. Using long-term metal price assumptions of $1.85 per pound for copper, $12 per ounce for silver and $15 per pound for molybdenum, the project generates an NPV (5%) of US$1.2 billion. Augusta is now moving through the National Environmental Policy Act (NEPA) permitting process, after the United States Forest Service ("USFS") and Bureau of Land Management ("BLM") made determinations of completeness regarding Rosemont's Mine Plan of Operations ("MPO") in the first quarter 2008. The MPO was deemed sufficient to initiate the process for preparing an Environmental Impact Statement (EIS) under federal law. It normally takes anywhere from 12 to 18 months to complete the draft EIS and the initial public review process. Another three to six months are typically required to respond to public comments and prepare the final EIS, after which the USFS will issue a Record of Decision either approving the plan or providing recommendations for modifications to the plan. Subsequent to the Record of Decision, the Company will file a final Plan of Operations (incorporating any necessary modifications). It is then that permits would be issued allowing the Company to commence construction. Upon completion of this process, Augusta expects to receive approval to construct the mine in 2011. Project Update: In a statement dated April 30, 2010, the Coronado National Forest has delayed the release of the Draft Environmental Impact Statement (DEIS) for the Rosemont Copper project in Arizona in order to complete an additional plant study and additional groundwater modeling of development plan alternatives. The Coronado National Forest must complete field surveys for a native plant (Hexalectris revoluta) thought to be partially coincident with one or two of the several alternative proposals for the dry stack tailings area siting on USFS land. The plant has an April-June emergent season, and survey teams are in the field to collect data throughout the season. The Company believes that avoidance of the known plant location is possible with minimal changes to project siting for the one or two potentially affected alternatives. In addition, DEIS project teams conducting detailed groundwater hydrology studies will complete further calculations on potential impacts and mitigation measures for the alternative facility sites under evaluation in the DEIS. Hydrology experts have undertaken a comprehensive calibration and sensitivity analysis of the complex predictive groundwater models. The groundwater models evaluate potential for impacts of the various alternatives for the Rosemont Copper project. Completion of these studies will allow better comparisons between the alternative siting proposals. Both studies are expected to be completed this July; the completion of the DEIS in Q4 2010, and final permits and construction to begin in 2011, followed by full production in Q4 2012.
3.78 263.12 nm 122.5 80.1 409.2 434.9 FQ2 2010 6.2 0.71 45.8 121.1 0.32637 (0.1) (0.0) 1.0 #N/A N/A (0.4) FQ2 2010 #N/A N/A (1.23) (2.21) (2.21) (2.21) (0.02) (0.02) (1.19) (6.87) FQ2 2010 8.64 164.65 173.28 7.93 44.26 52.19 121.09 122.48 0.99 0.99 69.88 FQ2 2010 (2.21) (0.85) (14.66) 5.44 (10.07) (15.51) (0.13) (0.01)
1.31
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 #N/A N/A #N/A N/A (1.48) (1.33) (1.12) (1.44) (1.63) (0.94) (1.37) (1.63) (0.94) (1.37) (2.14) (0.94) (0.01) (0.02) (0.01) (0.01) (0.02) (0.01) (1.44) (1.26) (1.09) (5.76) (8.28) (11.17) FQ1 2010 FQ4 2009 FQ3 2009 17.23 7.08 17.21 147.88 135.56 127.41 165.11 142.64 144.62 4.34 54.56 44.50 46.44 3.59 3.56 50.78 58.15 48.07 114.33 84.48 96.55 119.13 106.77 106.39 0.96 0.79 0.91 0.96 0.79 0.91 69.24 59.23 66.76 FQ1 2010 FQ4 2009 FQ3 2009 (1.37) (2.14) (0.94) (1.67) (1.36) (0.56) (18.77) (10.31) (9.42) 29.80 2.08 24.60 9.36 (9.59) 14.61 (20.45) (13.07) (7.60) (0.19) (0.13) (0.08) (0.02) (0.01) (0.01)
#N/A N/A #N/A N/A 3.28 #N/A N/A (0.1) #N/A N/A #N/A N/A nm (8.3) #N/A N/A FQ2 2009 (1.28) (0.89) (0.89) (0.89) (0.01) (0.01) (1.25) (15.16) FQ2 2009 3.19 119.29 122.48 46.16 3.53 49.70 72.78 92.15 0.79 0.79 59.42 FQ2 2009 (0.89) (0.26) (5.00) 3.86 (1.40) (5.25) (0.06) (0.00)
Project Location
Project Specifics Ownership % Rosemont (Oxide) Rosemont (Sulfide) Resources 100% 100% Class Location Arizona, USA Arizona, USA Tonnes (MM) 103.4 30.4 635.9 229.9 Engineering Completed DFS DFS Grades Cu Mo (%) (%) 0.20% 0.24% 0.46% 0.013% 0.38% 0.007% Operating Costs US$/t milled 3.50 7.43 Throughput (tpd) 25,000 68,000 Deposit Type Cu-Mo-Ag Porphyry Cu-Mo-Ag Porphyry Mining Method OP OP Mine Strip Ratio Life (yrs) (w/o) 7 2.0 21 2.0 Contained Metal Mo Au MM lbs (000 oz) 94 34 Recovery Method SX/EW Floatation
Au (g/t) -
Ag (000 oz) 2,365 416 Management Team RICHARD W. WARKE, CHAIRMAN GIL CLAUSEN, PRESIDENT/CEO RAGHUNATH REDDY, CHIEF FINANCIAL OFFICER LANCE NEWMAN, VP PROJECT DEVELOPMENT ROD PACE, CEO ROSEMONT COPPER COMPANY MARK STEVENS, VP EXPLORATION Website www.augustaresource.com
Operating Metrics
Attributable Capex
Attributable Production (avg p.a.) Cu Mo Au Ag (MM lbs) (MM lbs) (000 oz) (000 oz) 20.0 200.0 4.7 17.0 2,400.0
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
31
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (10/7/2009) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 S-09 N-09 J-10 M-10 M-10 J-10 .0 M S-10 .5 M 1.0 M 1.5 M 2.0 M
C$0.82 N/A
0.97 229.06 nm 165.9 144.1 136.0 166.7 FQ2 2010 22.6 8.17 0.4 169.1 nm (0.1) (0.1) 0.9 #N/A N/A (0.3) FQ2 2010 (2.02) (2.27) (2.25) (2.25) (0.02) (0.02) (1.86) (5.70) FQ2 2010 13.57 170.10 183.67 5.41 9.15 14.56 169.12 143.98 0.88 0.88 92.08 FQ2 2010 (2.25) (1.67) 2.36 3.04 3.73 (6.64) (0.05) (0.01)
0.52
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 #N/A N/A (1.85) (1.96) (1.80) (0.80) (2.28) (2.53) (0.73) (1.89) (2.53) (0.73) (1.89) (2.53) (0.01) (0.01) (0.02) (0.01) (0.01) (0.02) (1.71) (1.35) (1.74) (5.36) (6.01) (4.60) FQ1 2010 FQ4 2009 FQ3 2009 16.52 23.60 30.24 163.18 157.33 149.62 179.70 180.93 179.86 3.60 5.05 2.84 9.78 10.26 46.34 13.38 15.31 49.17 166.32 165.63 130.69 143.90 143.39 143.39 0.90 0.90 0.91 0.90 0.90 0.91 92.56 91.54 72.66 FQ1 2010 FQ4 2009 FQ3 2009 (0.73) (1.89) (2.53) (2.89) (9.94) 2.21 2.57 (13.34) (12.61) 2.22 1.23 1.05 1.91 (22.05) (9.35) (8.86) #N/A N/A (11.81) (0.06) #N/A N/A (0.08) (0.02) (0.07) 0.02
#N/A N/A #N/A N/A 0.93 #N/A N/A (0.3) #N/A N/A #N/A N/A nm (6.0) #N/A N/A FQ2 2009 (2.39) (1.87) (1.87) (1.87) (0.01) (0.01) (2.33) (4.26) FQ2 2009 41.15 145.95 187.10 5.38 11.16 16.53 170.57 143.08 0.93 0.93 91.16 FQ2 2009 (1.87) (1.58) (10.02) 0.85 (10.76) (11.79) (0.08) (0.01)
2.5 M
Project Location
Project Specifics Ownership % 70% Class Location Baja California, Mexico Tons (MM) 264.7 159.9 Engineering Completed DFS Grades Zn Co (%) (%) 0.64% 0.06% 0.70% 0.04% Deposit Type Cu-Co-Zn-Mn Seam Mining Method UG Mine Strip Ratio Life (yrs) (w/o) 23 NA Contained Metal Zn Co (MM lbs) (MM lbs) 3,735 350 2,468 141 Recovery Method Floatation/SXEW
Boleo Resources
Boleo
M+I Inferred
Mn (MM lbs) 18,849 10,329 Management Team CHARLES THOMAS OGRYZLO, CHAIRMAN L ROWLAND WALLENIUS, CHIEF FINANCIAL OFFICER MICHAEL SHAW, VP:CONSTRUCTION & ENG/COO KENDRA LOW, VP:ADMINISTRATION/SECRETARY
Operating Costs US$/lb Cu* US$/t milled 0.17 33.79 Throughput (tpd) 8,500
Attributable Production (avg p.a.) Cu Zn Co Mn (MM lbs) (MM lbs) (MM lbs) (000 oz) 58.8 45.6 2.5 -
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.bajamining.com
32
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/20/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
12.00 10.00 8.00 6.00 4.00 2.00 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10
C$7.45 N/A
10.00 4.64 nm 11.7 10.1 87.2 84.7 FQ1 2011 3.3 2.83 28.7 nm (0.2) (0.1) 2.4 #N/A N/A (0.4) FQ1 2011 (0.71) (0.71) (0.71) (0.54) (0.05) (0.05) (0.73) (7.85) FQ1 2011 3.46 25.83 29.29
5.74
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ4 2010 FQ3 2010 FQ2 2010 #N/A N/A (0.49) (0.52) (0.54) (0.48) (0.51) (0.53) (0.48) (0.51) (0.53) (0.48) (0.51) (0.53) (0.04) (0.05) (0.05) (0.04) (0.05) (0.05) (0.48) (0.51) (0.53) (7.85) (7.83) (7.98) FQ4 2010 FQ3 2010 FQ2 2010 3.46 4.20 4.58 25.83 25.36 24.61 29.29 29.56 29.18 0.65 0.65 28.91 11.64 2.48 2.48 97.80 0.98 0.98 28.20 11.40 2.47 2.47 96.65
#N/A N/A #N/A N/A 3.04 #N/A N/A (0.3) #N/A N/A #N/A N/A nm (7.9) #N/A N/A FQ1 2010 (0.74) (0.73) (0.73) (0.73) (0.06) (0.06) (0.73) (8.87) FQ1 2010 5.41 23.67 29.08 0.63 0.63 28.45 11.40 2.50 2.50 97.82
0.63 0.63 0.63 0.63 28.66 28.66 11.44 11.64 2.51 2.46 2.51 #N/A N/A 97.85 97.85
FQ1 2011 FQ4 2010 FQ3 2010 FQ2 2010 FQ1 2010 (0.54) (0.48) (0.51) (0.53) (0.73) (0.36) (0.26) (0.16) (0.20) (0.36) (1.43) (0.52) (1.08) (0.60) (1.43) 0.93 (3.68) (0.78) (0.31) (0.80) (1.79) (1.79) (0.78) (1.24) (0.80) (1.79) (0.16) (0.07) (0.11) (0.07) (0.16) (0.08) (0.02) (0.01) (0.02) (0.03)
.0 M .0 M .0 M .0 M .0 M .0 M .0 M .0 M .0 M
Project Location
Project Specifics Ownership % Location 100% British Columbia, Canada Class Tonnes (MM) 208.3 62.8 Cu (%) 0.39% 0.38% Operating Costs US$/t milled 7.90 Throughput (tpd) 30,000 Engineering Completed DFS Deposit Type Cu-Au Porphyry Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 21 0.8 Recovery Method Floatation
Morrison Resources
Morrison
M+I Inferred
Contained Metal Mo Au MM lbs (000 oz) 23 1,272 7 384 Managemernt GREGORY R. ANDERSON, CEO, PRESIDENT, DIRECTOR WILLIAM G. DEEKS, CHAIRMAN ERIK A. TORNQUIST, EVP, COO, DIRECTOR RUTH SWAN, CFO Website www.pacificbooker.bc.ca
Operating Metrics
Attributable Capex
Morrison
Attributable Production (avg p.a.) Cu Mo (MM lbs) (MM lbs) 65.2 0.5
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
33
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/20/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.80 0.70 0.60 0.50 0.40 0.30
C$0.55 N/A
0.73 122.16 nm 104.2 45.4 57.3 52.2 FQ2 2010 2.1 1.48 37.8 nm (0.0) (0.0) 0.2 (0.0) FQ2 2010 (0.23) (0.38) (0.38) (0.54) (0.01) (0.01) (0.45) (10.23) FQ2 2010 1.86 20.96 22.82 0.38 1.37 1.75 37.85 91.18 0.42 0.42 95.59 FQ2 2010 (0.54) (0.30) (0.15) 0.14 (0.31) (0.45) (0.00) (0.00)
0.22
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (0.46) (0.70) (0.28) (0.54) 0.45 (0.21) (0.54) 0.45 (0.21) (0.54) 0.45 (0.21) (0.01) (0.01) (0.45) (0.70) (0.26) (2.57) (1.54) (6.97) FQ1 2010 FQ4 2009 FQ3 2009 1.86 2.19 1.12 20.96 20.98 19.50 22.82 23.17 20.63 0.38 0.39 0.23 1.37 1.40 1.37 1.75 1.79 1.60 21.07 21.39 19.03 91.41 90.57 79.74 0.23 0.24 0.24 0.23 0.24 0.24 92.34 92.29 92.24 FQ1 2010 FQ4 2009 FQ3 2009 (0.54) 0.45 (0.21) (0.30) (0.54) (0.18) (0.15) (0.25) (0.39) 0.14 1.83 0.05 (0.31) 1.04 (0.53) (0.45) (1.73) (0.57) (0.00) (0.02) (0.01) (0.00) (0.01) (0.00)
#N/A N/A #N/A N/A 2.30 #N/A N/A (0.6) #N/A N/A #N/A N/A nm (1.5) #N/A N/A FQ2 2009 #N/A N/A (0.35) (0.22) (0.22) (0.22) (0.34) (27.14) FQ2 2009 1.65 19.15 20.80 0.27 1.39 1.66 19.14 79.47 0.24 0.24 92.03 FQ2 2009 (0.22) (0.36) (0.95) (0.01) (1.32) (0.38) (0.00) (0.00)
Operating Metrics
Attributable Capex
Initial Sustaining US$/lb Cu* 162.5 19.0 0.51 277.5 90.9 0.64
Attributable Production (avg p.a.) Cu Au (MM lbs) (000 oz) 49.2 87.0 39.3
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Management Team ROBERT A. WATTS, CHAIRMAN ALAN STEPHENS, PRESIDENT/CEO MICHAEL PHILPOT, VP CORP SECRETARY DAMIEN TOWNS, CHIEF FINANCIAL OFFICER ANGELO PERI, VP EXPLORATION FABIAN GREGORIA, PRESIDENT MINERA SAN JORGE Website www.coromining.com
34
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/15/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
4.00 3.50 3.00 2.50 5.0 M 2.00 4.0 M 1.50 3.0 M 1.00 0.50 0.00 S-09 2.0 M 1.0 M .0 M N-09 J-10 M-10 M-10 J-10
C$3.36 N/A
3.58 604.10 nm 89.7 82.4 302.0 358.2 FQ2 2010 50.4 117.56 0.3 159.7 nm (0.1) (0.1) 1.3 (0.9) FQ2 2010 (0.69) (2.62) (2.62) (2.09) (0.03) (0.03) (0.68) (4.56) FQ2 2010 124.49 174.38 298.87 6.92 132.21 139.13 159.74 89.78 1.26 1.26 53.45 FQ2 2010 (2.09) (0.29) (61.96) 160.18 97.93 (62.74) (0.72) (0.00)
1.22
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (0.70) (0.44) (0.40) (0.47) (0.34) (0.39) (0.47) (0.34) (0.39) (0.51) (0.35) (0.41) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.69) (0.44) (0.39) (2.71) #N/A N/A (2.09) FQ1 2010 FQ4 2009 FQ3 2009 24.08 51.36 54.46 113.77 90.14 64.22 137.85 141.50 118.67 6.96 12.77 2.12 1.44 1.41 3.74 8.40 14.18 5.86 129.45 127.32 112.82 78.28 77.57 75.13 1.06 1.06 1.07 1.06 1.06 1.07 93.91 89.98 95.06 FQ1 2010 FQ4 2009 FQ3 2009 (0.51) (0.35) (0.41) (1.64) (1.33) (0.23) (28.15) (17.91) (5.37) 2.44 15.50 55.05 (27.35) (3.73) 49.45 (29.28) (18.38) (5.50) (0.38) (0.53) (0.14) (0.02) (0.04) (0.01)
#N/A N/A #N/A N/A 2.66 #N/A N/A (0.1) #N/A N/A #N/A N/A nm #N/A N/A #N/A N/A FQ2 2009 (0.35) (0.31) (0.31) (0.31) (0.01) (0.01) (0.35) (3.49) FQ2 2009 4.96 59.02 63.98 26.86 3.77 30.63 33.35 31.63 1.05 1.05 52.13 FQ2 2009 (0.31) (2.61) (6.09) 9.20 0.49 (8.70) (0.28) (0.08)
Project Locations
Project Specifics Ownership % 75% Class Location British Columbia, Canada Tonnes (MM) 359.6 186.7 Grades Cu (%) 0.37% 0.29% Operating Costs Sustaining 55.4 US$/lb Cu* 1.33 US$/t milled 11.10 Engineering Completed Construction Deposit Type Cu Porphyry Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 17 2.0 Contained Metal Cu (MM lbs) 2,933 1,194 Attributable Production (avg p.a.) Cu (MM lbs) 78.8 Management Team JAMES CALHOUN O'ROURKE, CHAIRMAN/PRESIDENT/CEO RODNEY A SHIER, CFO/SECRETARY BILL DODDS, GENERAL MANAGER:MINE PETER HOLBEK, VP EXPLORATION J. PETER CAMPBELL, VP ENVIRONMENTAL ALASTAIR TIVER, CHIEF MINING ENGINEER Website www.cumtn.com Recovery Method Floatation
Copper Mountain
Operating Metrics
Copper Mountain
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
35
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (9/9/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 S-09
C$0.69 N/A
0.88 914.67 nm 352.4 138.4 243.2 242.7 FQ2 2010 2.6 1.16 14.5 nm 0.0 (0.0) 0.1 (0.0) FQ2 2010 (0.31) (0.31) (0.31) (0.31) (0.28) 2.84 FQ2 2010 1.87 13.75 15.61 0.71 0.36 1.07 14.55 274.62 0.05 0.05 93.15 FQ2 2010 (0.31) (0.04) (2.37) 2.27 (0.14) (2.18) (0.01) (0.00)
0.09
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (0.46) (0.93) (0.49) (0.45) (0.92) (0.49) (0.45) 1.53 (0.49) (0.45) 1.53 (0.49) 0.01 0.01 (0.42) (0.89) (0.45) 1.76 (119.07) (128.20) FQ1 2010 FQ4 2009 FQ3 2009 1.71 3.05 2.22 11.63 10.50 9.40 13.34 13.56 11.61 0.40 0.51 0.32 0.35 0.35 0.34 0.76 0.85 0.66 12.58 12.70 10.95 245.12 242.36 219.17 0.05 0.05 0.05 0.05 0.05 0.05 94.34 93.71 94.32 FQ1 2010 FQ4 2009 FQ3 2009 (0.45) 1.53 (0.49) (1.02) (1.09) (0.46) (1.21) (0.16) (3.44) 0.21 1.97 5.78 (2.03) 0.72 1.88 (2.17) (1.85) (0.59) (0.01) (0.01) (0.00) (0.00) (0.00) (0.00)
69.00 #N/A N/A 13.03 #N/A N/A (0.6) #N/A N/A #N/A N/A nm (119.1) #N/A N/A FQ2 2009 (0.43) (0.43) (0.43) (0.43) (0.39) (177.64) FQ2 2009 0.28 9.30 9.58 3.61 0.33 3.94 5.64 112.50 0.05 0.05 58.86 FQ2 2009 (0.43) (0.18) (0.05) (0.23) (0.33) (0.00) (0.00)
10.0 M 9.0 M 8.0 M 7.0 M 6.0 M 5.0 M 4.0 M 3.0 M 2.0 M 1.0 M .0 M
N-09
J-10
M-10
M-10
J-10
S-10
Project Location
Project Specifics Ownership % Schaft Creek 93% Location Canada Engineering Completed PFS Deposit Type Cu Au Porphyry Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 23 1.9 Recovery Method Floatation
Resources
Class
Schaft Creek
M+I Inferred
Operating Metrics
Attributable Capex
Schaft Creek
Attributable Production (avg p.a.) Cu Mo Au Ag (MM lbs) (MM lbs) (000 oz) (000 oz) 197.2 10.6 186.0 1,344.7
Management Team ELMER B. STEWART, CHAIR, PRESIDENT & CEO J. MICHAEL SMITH, EVP MURRAY J. HUNTER, CFO & VP CAM GRUNDSTROM, VP OPERATIONS
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.copperfoxmetals.com
36
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/15/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 S-09
C$2.16 N/A
3.99 687.69 nm 102.9 86.0 222.2 188.2 CQ2 2010 19.6 30.84 33.1 nm (0.2) (0.2) 0.3 #N/A N/A (0.2) CQ2 2010 (3.27) (3.27) (3.27) (6.05) (0.06) (0.06) (2.18) (84.20) CQ2 2010 35.41 4.31 39.72
0.58
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 #N/A N/A (3.27) (0.81) (1.91) (3.27) (0.81) (1.91) (3.27) (0.81) (1.91) (6.31) (1.89) (1.91) (0.07) (0.03) (0.02) (0.07) (0.03) (0.02) (1.94) (0.88) (1.28) (84.20) (84.20) (64.43) CQ1 2010 CQ4 2009 CQ3 2009 33.61 4.55 6.74 4.31 3.65 3.68 37.92 8.21 10.42
#N/A N/A #N/A N/A 6.32 #N/A N/A (87.0) #N/A N/A #N/A N/A nm (109.5) #N/A N/A CQ2 2009 (3.27) (3.27) (3.27) (1.91) (0.02) (0.02) (2.18) (104.34) CQ2 2009 8.94 3.05 12.00
4.57 4.16 0.50 0.29 0.59 4.57 4.16 0.50 0.29 0.59 33.15 33.76 7.70 10.13 11.40 101.14 93.36 80.55 80.40 80.35 0.33 0.36 0.10 0.13 0.14 0.33 0.36 0.10 0.13 0.14 87.88 89.02 93.87 97.23 95.06 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (6.05) (6.31) (1.89) (1.91) (1.91) (5.31) (2.36) (0.36) (1.56) (2.36) (12.28) 6.06 (6.06) (0.64) 6.06 6.94 0.48 0.04 1.62 3.71 (5.95) (2.16) 3.71 (17.59) 3.57 (6.42) (2.20) (2.22) (0.17) 0.04 (0.08) (0.03) (0.03) (0.05) (0.02) (0.01) (0.02) (0.03)
N-09
J-10
M-10
M-10
J-10
Project Locations
Project Specifics Ownership % Nokomis Resources (100% Basis) 60% Class Location Minnesota, USA Tons (MM) 550.0 273.8 Engineering Completed PEA Mining Deposit Type Method VMS UG Mine Life (yrs) 22 Strip Ratio (w/o) N/A Contained Metal Co Au (MM lbs) (000 oz) 121 1,627 60 801 Recovery Method Floatation
Nokomis
M+I Inferred
Pt (000 oz) 3,112 1,629 Management Team CHRISTOPHER C DUNDAS, CHAIRMAN/CEO VERN BAKER, PRESIDENT JOHN A FRANCIS, CHIEF FINANCIAL OFFICER MARA STRAZDINS, DIR:CORP COMMUNICATIONS H JAMES BLAKE, SECRETARY Website www.duluthmetals.com
Operating Metrics
Operating Costs US$/lb Cu* US$/t milled (0.63) 22.72 Throughput (tpd) 40,000 Cu (MM lbs) 109.0
Nokomis
799.2
333.8
Attributable Production (avg p.a.) Ni Co Au Pd (MM lbs) (MM lbs) (000 oz) (000 oz) 25.4 0.5 15.0 94.2
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
37
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/4/2010) Avg Daily Volume (000s) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.60
C$0.35 N/A
0.57 52wk Low (7/20/2010) Lima Frankfurt 114.82 61.57 17.55 98.9 84.0 34.6 29.1 FQ2 2010 1.4 P/E (Trailing 12m) (x) 5.78 P/CF (x) P/B (x) 46.6 EV / EBITDA (Trailing 12m) (x) nm Cash Gen / Cash Req (x) (0.0) Price / Free Cash Flow (x) (0.0) Cash Flow / Net Income (x) 0.5 EV/OPFCF (x) ROE (%) (0.0) ROCE (%) FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 #N/A N/A (0.28) (0.31) (0.44) (0.80) (0.28) (0.28) (0.30) (0.83) (0.28) (0.28) (0.30) (0.83) (0.42) (0.28) (0.30) (0.83) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.25) (0.31) (0.43) (0.80) (3.80) (2.75) (3.15) (6.14) FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 6.29 6.29 1.72 1.97 40.79 40.79 42.12 42.14 47.08 47.08 43.84 44.11 0.51 0.51 1.25 1.51 0.51 0.51 1.25 1.51 46.58 46.58 42.59 42.61 81.07 94.05 81.07 80.94 0.57 0.50 0.53 0.53 81.07 0.50 #N/A N/A 0.53 98.92 98.92 97.14 96.58 FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 (0.42) (0.28) (0.30) (0.83) 0.03 0.03 (0.19) (0.16) (1.05) (1.05) (0.29) (0.28) 4.08 4.08 0.29 3.06 3.06 (0.19) (0.44) (1.02) (0.95) (0.42) (0.32) (0.01) (0.01) (0.01) (0.00) (0.00) 0.00 (0.00) (0.00)
0.29
Toronto
#N/A N/A #N/A N/A 0.68 #N/A N/A (0.4) #N/A N/A #N/A N/A nm (3.2) #N/A N/A FQ2 2009 (0.27) 0.18 0.18 0.18 (0.26) (7.02) FQ2 2009 2.29 42.13 44.42 1.67 1.67 42.75 80.94 0.53 0.53 96.24 FQ2 2009 0.18 0.13 (1.12) (0.99) (0.94) (0.01) 0.00
1.4 M
0.50
1.2 M
Drill Results Summary, Canariaco Sur and Quebrada Drill Hole From (m) To (m) Interval (m) Cu (%) Au (gpt) Ag (gpt) CS08-001 146.0 146.0 0.095 0.032 0.581 -600 /south 146.0 180.0 34.0 0.25 0.11 1.27 180.0 534.9 354.9 0.35 0.15 1.43 including 300.0 400.0 100.0 0.41 0.17 1.59 including 300.0 322.0 22.0 0.48 0.22 1.93 CS08-002 73.0 73.0 0.19 0.08 1.79 -550 /south 73.0 249.2 176.2 0.41 0.12 1.59 including 166.0 249.2 83.2 0.47 0.15 1.64 249.2 505.8 256.6 0.16 0.07 1.31 Project Specifics Ownership % 100% Class Location Ferreafe, Peru Tonnes (MM) 622.0 128.0 Engineering Completed PEA Grades Au (g/t) 0.07 0.06 Deposit Type Cu Au Porphyry Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 19 0.5 Recovery Method Floatation
0.20 .4 M 0.10
.2 M
.0 M S-10
Project Locations
Caariaco Resources
Caariaco
M+I Inferred
Contained Metal Au Cu (MM lbs) (000 oz) 6,470 1,430 1,210 250
Ag (000 oz) 36,500 6,770 Management Team DR. KLAUS M. ZEITLER, CHAIRMAN JOANNE CONSTANCE FREEZE, CEO SEAN IVOR WALLER, PRESIDENT AURORA G DAVIDSON, CHIEF FINANCIAL OFFICER THEODORE MURARO, GENERAL MANGER, PERU MARIA EUGENIA MONTAGNE, TREASURER/SECRETARY Website www.candente.com
Operating Metrics
Throughput 85,000
Attributable Production (avg p.a.) Cu Au Ag (MM lbs) (000 oz) (000 oz) 220.0 52.0 862.0
Caariaco
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
38
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/11/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet (US$) Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (x) Cash Flow Statement (US$) Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10
C$2.46 N/A
3.59 118.14 nm 113.4 81.6 279.0 240.8 FQ2 2010 40.4 40.30 0.7 43.9 nm (0.16) (0.14) 0.60 (0.14) FQ2 2010 (2.17) (2.16) (2.16) (3.42) (0.04) (0.04) (2.27) (19.63) FQ2 2010 40.95 4.32 45.26
1.84
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (2.18) (5.92) (3.60) (2.16) (6.04) (3.62) (2.16) (6.04) (3.62) (2.16) (6.04) (3.62) (0.02) (0.06) (0.04) (0.02) (0.06) (0.04) (2.14) (5.88) (3.56) (35.71) (37.67) (30.43) FQ1 2010 FQ4 2009 FQ3 2009 40.95 42.04 42.33 4.32 3.77 2.91 45.26 45.80 45.24
#N/A N/A #N/A N/A 3.99 #N/A N/A (74.3) #N/A N/A #N/A N/A nm (37.7) #N/A N/A FQ2 2009 (3.71) (3.73) (3.73) (3.73) (0.04) (0.04) (3.68) (33.08) FQ2 2009 42.09 2.41 44.50
0.65 0.65 1.16 0.61 0.68 0.72 0.72 0.68 0.46 0.38 1.36 1.36 1.84 1.06 1.05 43.90 43.90 43.97 44.18 43.44 97.07 97.48 97.06 95.15 94.63 0.45 0.45 0.45 0.46 0.46 0.45 0.45 0.45 0.46 0.46 32.23 96.99 95.99 97.65 97.63 FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 FQ2 2009 (3.42) (2.16) (6.04) (3.62) (3.73) (2.34) (2.34) (3.70) (3.65) (2.98) (0.46) (0.46) (0.16) (0.11) (0.03) 0.61 1.76 2.55 3.96 3.46 (1.03) (1.03) (1.31) 0.20 0.45 (2.80) (2.36) (3.78) (3.71) (2.98) (0.03) (0.02) (0.04) (0.04) (0.03) (0.02) (0.02) (0.04) (0.04) (0.03)
.8 M .7 M .6 M .5 M .4 M .3 M .2 M .1 M .0 M
Project Location
Project Specifics Ownership % Ann Mason Lookout Hill (Heruga) Lookout Hill (Hugo North) Resources 100% 20% 20% Class Location Nevada, USA Gobi Desert, Mongolia Gobi Desert, Mongolia Tonnes (MM) 810.4 910.0 117.0 95.5 Engineering Completed RD PEA PEA Grades Cu (%) 0.40% 0.48% 1.80% 1.15% Deposit Type Cu Mo Skarn Cu Au Mo Porphyry Cu Au Porphyry Mo (%) 0.01% 0.01% Au (g/t) 0.49 0.61 0.31 Mining Mine Ratio Method Life (yrs) (w/o) Recovery Method NA NA NA NA UG NA NA NA UG 30 NA Floatation Contained Metal Cu Mo Au (MM lbs) MM lbs (000 oz) 7,129 179 9,630 201 14,336 4,643 2,295 2,421 952
Ann Mason Lookout Hill (Heruga) Lookout Hill (Hugo North) Lookout Hill (Hugo North)
Management Team JAMES L. HARRIS, CHAIRMAN GREGORY G. CROWE, PRESIDENT & CEO HAMISH MALKIN, CFO LINDSAY R. BOTTOMER, VP BUSINESS DEVELOPMENT
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.entreegold.com
39
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (3/12/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 S-09 .1 M .0 M N-09 J-10 M-10 M-10 J-10 S-10 .2 M .1 M
C$4.67 N/A
6.00 23.91 nm 59.2 49.9 276.7 273.1 CQ2 2010 9.6 2.79 43.1 nm (0.1) (0.0) 0.7 #N/A N/A (0.2) CQ2 2010 (1.30) (1.30) (1.30) (1.30) (0.02) (0.02) (1.29) (21.53) CQ2 2010 3.72 41.53 45.25
1.76
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 #N/A N/A (2.80) (0.53) (0.40) (2.80) (0.67) (3.79) (2.80) (0.67) (3.79) (2.80) (0.67) (3.79) (0.04) (0.01) (0.07) (0.04) (0.01) (0.07) (2.79) (0.52) (0.39) (20.18) (15.53) (20.99) CQ1 2010 CQ4 2009 CQ3 2009 6.71 10.01 1.78 38.59 34.06 32.34 45.30 44.07 34.12
#N/A N/A #N/A N/A 6.77 #N/A N/A (0.2) #N/A N/A #N/A N/A nm (15.5) #N/A N/A CQ2 2009 (0.69) (0.80) (0.80) (0.80) (0.01) (0.01) (0.69) (12.73) CQ2 2009 2.80 34.68 37.48
0.93 1.12 0.82 0.55 0.38 1.26 1.09 0.83 0.57 0.70 2.18 2.21 1.64 1.12 1.08 43.06 43.10 42.43 33.01 36.40 62.41 62.40 62.21 57.16 56.90 0.69 0.69 0.68 0.58 0.64 0.69 0.69 0.68 0.58 0.64 95.18 95.13 96.27 96.73 97.11 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (1.30) (2.80) (0.67) (3.79) (0.80) 0.23 (0.68) (0.44) (0.31) (0.51) (3.04) (2.92) (1.41) (1.09) (1.03) 0.03 0.31 10.05 0.33 0.02 (2.78) (3.29) 8.21 (1.07) (1.53) (2.81) (3.60) (1.85) (1.40) (1.54) (0.05) (0.06) (0.03) (0.02) (0.03) 0.00 (0.01) (0.01) (0.01) (0.01)
.3 M .2 M
Project Location
Project Specifics Ownership % Santo Domingo 100% Location Santo Domingo, Chile Engineering Completed PEA Deposit Type IOCG Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 25 2.0 Recovery Method Floatation
Resources
Class
Grades
Fe %
27.2% 25.7%
Santo Domingo
M+I Inferred
Operating Metrics
Attributable Capex
Santo Domingo
Attributable Production (avg p.a.) Fe Cu Au (MM lbs) (MM mt) (000 oz) 144.5 4.1 11.9
Management Team ROBERT E HINDSON, CHAIRMAN RICHARD NORMAN ZIMMER, PRESIDENT/CEO IAIN F MACPHAIL, CHIEF FINANCIAL OFFICER DAVID ROBERT REID, SECRETARY/LEGAL COUNSEL
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.farwestmining.com
40
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (8/30/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (x) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
3.00 2.50 2.00 1.50 1.00 0.50 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10
C$2.43 N/A
San Jorge copper / gold / molybdenum -1.5% annual NSR on byproduct production Equity Interests Coro Mining (COP-T): 1 million shares Los Andes Copper (LA-V): 6.28 million shares, - 3.9 million warrants ($1.00, expire 02/2010)
2.59 52.14 nm 34.7 24.7 84.2 #N/A N/A CQ2 2010 5.2 6.5 10.6 nm 0.0 (0.01) 0.31 nm (0.01) CQ2 2010 #N/A N/A (0.15) (0.02) (0.02) (0.02) (0.15) 0.91 CQ2 2010 6.59 4.10 10.69 0.06 0.06 10.63 34.61 0.31 0.31 99.48 CQ2 2010 (0.02) (0.18) (0.18) (0.37) (0.37) (0.01) (0.01)
0.70
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 #N/A N/A #N/A N/A #N/A N/A (0.14) (0.07) (0.09) (0.31) 1.04 0.89 (0.31) 1.04 0.89 0.17 (0.27) 0.89 0.01 0.02 0.01 0.02 (0.14) (0.25) 0.09 6.43 (48.53) 28.01 CQ1 2010 CQ4 2009 CQ3 2009 6.65 6.67 6.88 4.00 3.96 3.94 10.66 10.63 10.82 0.04 0.19 0.20 0.04 0.19 0.20 10.61 10.44 10.62 34.61 34.61 34.61 0.31 0.30 0.31 0.31 0.30 0.31 99.58 98.20 98.15 CQ1 2010 CQ4 2009 CQ3 2009 0.17 (0.27) 0.89 (0.18) (0.21) (0.13) 0.06 0.03 0.50 (2.71) (0.12) (0.18) (2.34) (0.12) (0.18) 0.37 (0.00) (0.01) 0.01 (0.00) (0.00) (0.00)
nm nm 7.91 nm nm nm nm nm 0.9 0.9 CQ2 2009 #N/A N/A (0.33) (1.70) (1.70) (0.17) (0.01) (0.01) (0.33) (62.75) CQ2 2009 8.86 3.88 12.74 2.92 2.92 9.82 34.61 0.28 0.28 77.08 CQ2 2009 (0.17) (0.23) (0.06) (0.06) (0.35) (0.29) (0.01) (0.00)
.6 M .5 M .4 M .3 M .2 M .1 M .0 M
Project Location San Jorge The San Jorge Property is located in west-central Argentina approximately 110 km northwest of the provincial city of Mendoza and 250 Km northeast of Santiago, Chile. The Property comprises 2 Mining Concessions and 44 Mining Estacas covering a total of 444.6 hectares. In May 2006, the Company optioned the project to Coro Mining Corp (Coro), a Vancouver based mining development company (TSX-COP). In order for Coro to exercise the option, Coro must pay Lumina US$500,000 by May 2009 and US$16 million on the earlier of completing a bankable feasibility study or the following schedule: May 2010 US$2 million (Paid) - May 2011 US$4 million - May 2012 US$5 million - May 2013 US$5 million (less the value of the 1 million shares issued to Lumina to date). In addition, on the commencement of commercial production, Coro will pay Lumina US$0.02 per contained pound of copper in the sulphide mineral reserves for the project as defined by the feasibility study, less the US$16 million previously paid. Further, Coro will pay to Lumina US$0.015 per contained pound of copper of any additional sulphide material not defined as mineral reserves in the feasibility study but processed through its mill. Should Coro choose to process the oxide material, it will pay to Lumina US$0.025 per contained pound of copper within the oxide reserves as defined in the feasibility study on commencement of commercial production. For any additional oxide material mined, Coro will pay Lumina US$0.02 per pound contained copper that is processed. Coro will also pay Lumina a 1.5% net smelter royalty on all other metals produced including gold and molybdenum.
Project Specifics Ownership % Taca Taca 100% Location Puna Region, Argentina Engineering Completed RD Deposit Type Cu Au Porphyry Mining Mine Method Life (yrs) OP NA Ratio (w/o) NA Recovery Method NA
Resources
Class
Taca Taca
Inferred
Mo (%) 0.02%
Au (g/t) 0.11
Contained Metal Cu Mo Au (MM lbs) MM lbs (000 oz) 8,714 334 2,974
Management Team ROBERT PIROOZ, CHAIRMAN DAVID STRANG, PRESIDENT & CEO SANDRA LIM, CFO MARSHAL KOVAL, VP CORPORATE DEVELOPMENT LEO HATHAWAY, VP EXPLORATION Website www.luminacopper.com
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
41
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/15/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10 .5 M .0 M 1.5 M 1.0 M
C$0.95 N/A
1.20 457.02 nm 264.7 177.6 251.5 267.4 FQ2 2010 15.2 11.02 31.9 126.9 0.1 0.1 (0.0) 0.5 (0.0) FQ2 2010 1.88 1.31 1.31 4.64 0.02 0.02 (1.36) (4.33) FQ2 2010 23.74 147.78 171.52 12.72 31.85 44.57 126.95 264.74 0.48 0.48 74.01 FQ2 2010 4.64 1.20 (6.06) 1.23 (3.62) (4.86) (0.02) (0.00)
0.61
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (1.01) (6.96) (0.95) 1.31 1.16 5.22 1.31 2.79 5.22 1.31 2.79 5.22 0.01 0.01 0.02 0.01 0.01 0.02 #N/A N/A (6.96) (0.95) 9.22 4.68 (6.69) FQ1 2010 FQ4 2009 FQ3 2009 23.74 26.72 27.94 147.78 139.85 137.99 171.52 166.57 165.93 12.72 10.35 9.81 31.85 31.85 31.99 44.57 42.20 41.79 126.95 124.37 124.13 264.74 262.91 262.30 0.48 0.47 0.47 0.48 0.47 0.47 74.02 74.67 74.81 FQ1 2010 FQ4 2009 FQ3 2009 1.31 2.79 5.22 1.20 (1.20) (0.72) (6.06) (1.12) (0.28) 1.23 0.31 20.03 (3.63) (2.01) 19.04 (4.86) (2.32) (1.00) (0.02) (0.01) (0.00) 0.00 (0.00) (0.00)
15.33 #N/A N/A 1.85 #N/A N/A (1.9) #N/A N/A (1.4) nm 4.2 #N/A N/A FQ2 2009 (1.85) 0.92 0.92 0.92 (1.85) (16.53) FQ2 2009 8.26 128.78 138.49 8.79 31.99 40.78 97.71 230.54 0.42 0.42 70.56 FQ2 2009 0.92 (1.01) (0.93) 0.05 (1.89) (13.88) (0.06) (0.00)
2.5 M 2.0 M
Project Location
Project Specifics Ownership % 49% 100% Class Location Santa Cruz, Argentina San Juan, Argentina Tonnes (MM) 2.2 1.0 900.0 Engineering Completed Production PEA Grades Cu (%) 0.52% Operating Costs US$/t milled 153.00 7.59 Deposit Type Ag Au Epithermal Cu Porphyry Mining Method UG OP Mine Strip Ratio Life (yrs) (w/o) 3 23.6 NA 1.5 Recovery Method Floatation Floatation
Mo (%) 0.003%
Ag (000 oz) 37,958 11,274 48,612 Management Team ROB MCEWEN, CHAIRMAN, PRESIDENT & CEO JAMES K. DUFF, COO PERRY Y. ING, CFO NILS F. ENGELSTAD, VP CORP AFFAIRS
Attributable Capex
Attributable Production (avg p.a.) Cu Throughput (tpd) (MM lbs) 15,000 100,000 360.3
Mo (MM lbs) -
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.minandes.com
42
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/11/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 .2 M .0 M N-09 J-10 M-10 M-10 J-10 S-10 .8 M .6 M .4 M
C$3.26 N/A
Key Projects Pumpkin Hollow Pumpkin Hollow is an advanced development stage copper property, which contains Measured and Indicated Resources totalling 5.6 Billion pounds of Copper plus additional Inferred Resources of 3.7 Billion pounds of Copper (all using a 0.2% copper cutoff grade). This 9.3 Billion pound copper resource, 1.45 million ounces of gold, 55 million ounces of silver and 130 million tons of contained iron in 361 million tons at an average grade of 36% iron at a 20% iron cutoff was estimated effective June, 2009. Contained within the larger resource is a high grade component of 77 million tons grading 1.7% Copper at a 1.0% cutoff containing 2.6 Billion pounds of Copper. Ongoing drilling has yet to define the limits of this world class Copper-IronGold-Silver deposit. Robust Preliminary Economic Assessment (PEA) results were announced on March, 17, 2008, and updated December 1, 2009 to incorporate a High Grade Case. The initial PEA demonstrated that at a US$1.75 long term copper price, the Pumpkin Hollow Copper Project has a US$784 Million NPV at an 8% discount, with an IRR of 24%. At a US$2.50 copper price the project's discounted NPV at an 8% discount increases to US$1.1 Billion. The updated PEA assuming a High Grade Case demonstrated that at a US$2.50 copper price, The Pumpkin Hollow Copper Project has a US$498 Million NPV at an 8% discount with an IRR of 44% and Capex of $192 Million. At a US$3.00 copper price the project's discounted NPV at an 8% discount increases to US$ 784 Million. The NI43-101 compliant technical report highlighted several additional areas that have the potential to further improve the already solid economic base.
3.57 165.17 nm 53.1 34.4 173.1 149.9 CQ2 2010 25.3 20.78 2.0 47.6 nm (0.1) (0.0) 1.0 (0.2) CQ2 2010 (2.16) (2.13) (2.13) (2.13) (0.04) (0.04) (2.16) (12.62) CQ2 2010 23.85 26.79 50.63
1.65
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 (1.41) (0.29) (0.21) (1.56) (0.30) (0.21) (1.56) (0.30) (0.21) (1.56) (0.30) (0.21) (0.04) (0.01) (0.01) (0.04) (0.01) (0.01) (1.41) (0.29) (0.21) (14.60) (11.04) (13.15) CQ1 2010 CQ4 2009 CQ3 2009 7.59 10.64 1.48 24.49 19.40 17.80 32.08 30.04 19.28
#N/A N/A #N/A N/A 3.43 #N/A N/A (0.1) #N/A N/A #N/A N/A nm (12.6) #N/A N/A CQ2 2009 (1.13) (1.12) (1.12) (1.12) (0.03) (0.03) (1.13) (13.46) CQ2 2009 2.24 16.00 18.23
NC10-53
E2 Deposit
NC10-49 NC10-54
From (m) 329.5 350.5 226.2 281 326.1 344.4 172.2 202.7 222.5 262.1 199.6 211.8 352 455.1 500.2 578.8 272.8 309.4 342.9 527.3 559.3 468.3 504.4
To (m) 334 358.1 233.2 285 330.7 356.6 183.8 208.5 251.5 292.9 205.7 281.9 353.5 483.1 551.7 582.1 301.8 315.5 346 538 625.4 470.9 515.1
Length Length (m) (ft) 4.5 15 7.6 25 7 23 4 13 4.6 15 12.2 40 11.6 38 5.8 19 29 95 30.8 101 6.1 20 70.1 230 1.5 5 28 92 51.5 169 3.3 11 29 95 6.1 20 3.1 10 10.7 35 6.1 20 2.6 8.5 10.7 35
True Length (m) 3.2 5.4 5 2.8 3.2 8.6 8.9 4.4 29 30.8 20 230 1.5 22.9 41.9 2.7 14.5 3.1 1.6
Cu (%) 0.97 0.45 0.42 0.74 0.33 0.36 1 1.55 0.56 0.48 0.35 1.46 1.22 0.65 0.95 0.65 1.9 1.12 1.27 3 1.4 2.69 1.24
Au (g/t) 0.09 0.018 0.03 0.05 0.054 0.031 0.039 0.097 0.055 0.069 0.011 0.005 0.612 0.1 0.212 0.116 0.394 0.188 0.277 0.278 0.231 0.289 0.14
Ag (g/t) 1.5 1 1.8 3 1.7 1.5 3.6 5.4 1.7 2 0.8 0.4 4.3 2.7 3.2 1.8 7.7 6 4.2 6.1 2.2 11.6 3.1
Mo (%) 0.01 0.002 0.007 0.01 0.001 <.001 0.004 0.012 0.004 0.003 0.002 0.001 0.006 0.006 0.016 0.003
Fe (%)
3.06 3.67 0.45 0.15 0.29 1.92 1.90 1.89 3.06 3.67 2.37 2.05 2.18 47.57 28.41 27.67 17.23 16.06 53.11 45.34 45.08 40.58 40.58 0.90 0.63 0.61 0.42 0.40 0.90 0.63 0.61 0.42 0.40 93.95 88.55 92.11 89.36 88.07 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (2.13) (1.56) (0.30) (0.21) (1.12) (0.75) 0.56 (0.01) (0.51) (0.31) (3.48) (4.21) (1.39) (0.41) (0.43) 21.35 0.25 10.54 (0.01) 1.90 17.13 (3.40) 9.14 (0.94) 1.16 (4.22) (3.66) (1.40) (0.92) (0.74) (0.10) (0.08) (0.03) (0.02) (0.02) (0.02) 0.01 (0.00) (0.01) (0.01)
1.2 M 1.0 M
0.00 S-09
Project Location
Project Specifics Ownership % Pumpkin Hollow (Open Pit) Pumpkin Hollow (Underground) Resources 100% 100% Class Location Nevada, USA Nevada, USA Tonnes (MM) 277.6 208.6 27.7 8.2 Cu (%) 0.51% 0.42% 1.83% 1.67% Engineering Completed PEA PEA Grades Mo Au (%) (g/t) 0.003% 0.06 0.002% 0.03 0.005% 0.21 0.005% 0.17 Deposit Type IOGC IOGC Mining Method OP UG Mine Strip Ratio Life (yrs) (w/o) 23 3.2 13 N/A Contained Metal Mo Au MM lbs (000 oz) 18 532 7 229 4 180 1 42 Recovery Method Floatation Floatation
Ag (000 oz) 20,872 12,883 4,370 1,203 Management Team BRIAN P KIRWIN, CHAIRMAN GIULIO T BONIFACIO, PRESIDENT/CEO JOE CHAN, CHIEF FINANCIAL OFFICER CATHERINE TANAKA, SECRETARY
Operating Metrics
Attributable Capex
Operating Costs US$/t milled 15.00 41.00 Throughput (tpd) 60,000 7,500
Initial Sustaining US$/lb Cu* Pumpkin Hollow (Open Pit) Pumpkin Hollow (Underground) 526.0 192.0 177.7 175.8 1.61 1.26
Attributable Production (avg p.a.) Cu Mo Au Ag (MM lbs) (MM lbs) (000 oz) (000 oz) 187.3 12.8 616.3 81.9 6.6 84.6
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.nevadacopper.com
43
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/26/2010) Avg Daily Volume (000s) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
12.00 10.00 8.00 6.00 4.00 2.00 0.00 S-09
C$7.33 N/A
6.49
Toronto
120.56 93.8 58.6 687.9 646.3 FQ2 2010 46.5 44.78 148.3 nm (0.12) (0.04) 1.58 (0.04) FQ2 2010 (2.09) (5.62) (5.62) (5.62) (0.06) (0.06) (2.09)
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (2.26) (2.36) (2.46) (2.16) (2.18) (2.25) (2.16) (2.18) (2.25) (2.16) (2.18) (2.25) (0.02) (0.02) (0.02) (0.02) (0.02) (0.02) (2.26) (2.36) (2.46)
#N/A N/A #N/A N/A 4.64 #N/A N/A #N/A N/A #N/A N/A #N/A N/A nm #N/A N/A #N/A N/A FQ2 2009 (6.01) (2.41) (2.41) (2.41) (0.03) (0.03) (6.01)
FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 FQ2 2009 44.96 46.63 45.13 45.24 45.64 107.35 101.42 104.94 106.90 116.12 152.31 148.06 150.07 152.14 161.76 0.18 0.09 0.19 0.34 0.07 3.83 3.65 3.81 4.00 3.73 4.00 0.34 0.07 148.31 144.32 146.07 151.80 161.69 93.73 186.98 93.17 92.99 92.94 1.58 0.77 1.57 1.63 1.74 1.58 0.77 1.57 1.63 1.74 97.37 97.48 97.33 99.77 99.96 FQ2 2010 FQ1 2010 FQ4 2009 FQ3 2009 FQ2 2009 (5.62) (1.97) (2.18) (2.25) (2.41) (1.30) (0.88) (0.93) (0.78) (1.19) (4.16) 0.08 0.09 0.11 0.05 2.71 0.87 0.74 0.25 0.03 1.58 0.08 (0.10) (0.42) 0.85 (1.30) (1.21) (0.93) (0.78) (1.19) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)
Project Location
Project Specifics Ownership % 50% Class Location Alaska, USA Tonnes (MM) 5,942 4,835 Engineering Completed RD Grades Cu (%) 0.42% 0.24% Deposit Type Cu Au Mo Porphyry Mining Mine Method Life (yrs) OP/UG NA Ratio (w/o) NA Recovery Method Floatation Management Team ROBERT A DICKINSON, CHAIRMAN RONALD W THIESSEN, PRESIDENT/CEO MARCHAND SNYMAN, CHIEF FINANCIAL OFFICER BRUCE JENKINS, EXEC VP:ENVIRONMENTAL AFFAIRS STEPHEN HODGSON, EXEC VP:ENGINEERING SEAN MAGEE, EXEC VP:PUBLIC AFFAIRS Company Website www.northerndynastyminerals.com
Pebble Resources
Pebble
M+I
Inferred
Contained Metal Cu Mo Au (MM lbs) MM lbs (000 oz) 55,019 2,816 66,864 25,582 2,292 40,417
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
44
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/18/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10 .5 M .0 M 2.5 M 2.0 M 1.5 M 1.0 M
C$0.62 N/A
1.00 99.57 nm 146.9 116.2 91.1 71.1 CQ2 2010 20.2 22.10 48.5 nm #N/A N/A (0.1) 0.3 #N/A N/A (0.1) CQ2 2010 (2.80) (2.31) (2.31) (2.77) (0.02) (0.02) (2.80) (7.88) CQ2 2010 20.53 26.42 46.96
0.50
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 #N/A N/A #N/A N/A (2.65) (3.68) (1.84) (2.77) (1.76) (1.85) (2.77) (1.76) (1.85) (2.77) (1.92) (1.85) (0.02) (0.01) (0.02) (0.02) (0.01) (0.02) (2.26) (3.70) (1.79) (22.30) (5.18) (18.95) CQ1 2010 CQ4 2009 CQ3 2009 23.76 26.07 6.74 26.45 26.59 30.32 50.21 52.66 37.06
#N/A N/A #N/A N/A 1.98 #N/A N/A nm #N/A N/A #N/A N/A nm (82.2) #N/A N/A CQ2 2009 (1.81) (1.92) (1.92) (1.92) (0.02) (0.02) (1.76) (29.36) CQ2 2009 7.47 18.24 25.71
0.86 1.66 1.73 1.29 0.63 0.88 0.88 0.09 1.66 1.73 2.16 1.50 46.09 48.55 50.92 34.89 24.21 146.90 146.90 119.15 134.26 58.11 0.31 0.33 0.43 0.26 0.42 0.31 0.33 0.43 0.26 0.42 99.81 96.69 96.71 94.16 94.16 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (2.77) (2.77) (1.92) (1.85) (1.92) (3.53) (2.26) (4.51) (1.07) (3.26) 3.19 2.00 5.54 0.63 4.68 0.02 8.50 0.05 (0.34) (0.32) 9.54 (0.39) 1.43 (0.34) (0.26) 1.04 (1.07) (3.36) (0.00) (0.00) 0.01 (0.01) (0.03) (0.02) (0.04) (0.05) (0.01) (0.03)
3.5 M 3.0 M
Project Specifics Ownership % Josemaria GJ Hambok Resources Engineering Completed RD 100% San Juan, Argentina RD 100% British Columbia, Canada RD 90% Western Eritrea Class Tonnes Grades Cu Zn (MM) (%) (%) Inferred 460.0 0.39% M+I 153.3 0.32% Inferred 23.0 0.26% M+I 10.7 0.98% 3.24% Inferred 17.0 0.85% 1.74% Location Deposit Type Cu Au Porphyry Cu Au Porphyry VMS Au (g/t) 0.30 0.37 0.31 0.20 0.19 Ag (g/t) 6.84 5.89 Mining Mine Strip Ratio Method Life (yrs) (w/o) NA NA NA NA NA NA NA NA NA Contained Metal Cu Zn (MM lbs) MM lbs 3,588 1,085 132 231 764 319 652 Recovery Method NA NA NA Au (000 oz) 4,437 1,819 229 69 104 Ag (000 oz) 2,353 3,219 Management Team LUKAS H. LUNDIN, CHAIRMAN DR. WOJTEK WODZICKI, PRESIDENT & CEO WANDA LEE, CFO PAUL CONIBEAR, DIRECTOR WILLIAM A. RAND, DIRECTOR MICHAEL WINN, DIRECTOR Website www.ngexresources.com
Josemaria GJ Hambok
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
45
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/6/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
3.00 2.50 2.00 1.50 1.00 0.50 0.00 S-09
C$2.02 N/A
2.64 118.73 nm 81.7 68.6 165.1 147.0 FQ3 2010 25.7 25.40 7.0 32.5 nm (0.3) (0.5) 0.4 (0.7) FQ3 2010 (3.55) (4.08) (4.08) (4.08) (0.05) (0.05) (3.54) (122.63) FQ3 2010 26.23 15.89 42.12 0.83 8.74 9.58 32.54 81.71 0.40 0.40 77.26 FQ3 2010 (4.08) (3.51) (0.53) 2.42 (1.62) (4.04) (0.05) (0.04)
1.69
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ2 2010 FQ1 2010 FQ4 2009 (4.42) (5.81) (9.46) (4.39) (5.91) (10.32) (4.39) (5.91) (10.32) (4.39) (5.91) (10.32) (0.06) (0.08) (0.17) (0.06) (0.08) (0.17) (4.39) (5.79) (9.40) (125.33) (190.98) (176.36) FQ2 2010 FQ1 2010 FQ4 2009 27.86 11.51 14.46 15.87 15.89 19.13 43.73 27.40 33.60 1.68 3.46 4.73 8.47 8.20 7.94 10.14 11.66 12.67 33.59 15.75 20.92 80.43 70.10 70.02 0.42 0.22 0.30 0.42 0.22 0.30 76.80 57.46 62.28 FQ2 2010 FQ1 2010 FQ4 2009 (4.39) (5.91) (10.32) (3.60) (6.08) (8.50) (0.01) 3.22 (3.45) 21.26 22.04 17.66 (2.86) 10.10 (3.61) (6.08) (12.29) (0.05) (0.09) (0.20) (0.05) (0.09) (0.14)
#N/A N/A #N/A N/A 5.07 #N/A N/A (3.1) #N/A N/A #N/A N/A nm (183.9) #N/A N/A FQ3 2009 #N/A N/A (7.01) (7.76) (7.76) (7.76) (0.14) (0.14) (7.00) (279.49) FQ3 2009 7.88 20.30 28.18 11.24 9.21 20.45 7.73 56.90 0.14 0.14 27.43 FQ3 2009 (7.76) (5.74) (5.76) 6.03 (5.47) (11.51) (0.21) (0.10)
12.0 M 10.0 M 8.0 M 6.0 M 4.0 M 2.0 M .0 M N-09 J-10 M-10 M-10 J-10 S-10
Project Location
Project Specifics Ownership % 100% Class Location Chumbivilcas, Peru Tonnes (MM) 392.5 48.8 Engineering Completed DFS Grades Cu (%) 0.42% 0.35% Deposit Type Cu-Mo-Ag Porphyry Mining Method OP Mine Strip Ratio Life (yrs) (w/o) 15 0.9 Recovery Method Floatation
Constancia Resources
Constancia
M+I Inferred
Operating Metrics
Attributable Capex Operating Costs Initial Sustaining US$/lb Cu* 846.0 147.6 0.77 US$/t milled 10.59
Constancia
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Management Team GEORGE P BELL, CHAIRMAN PATRICK C EVANS, CHIEF EXECUTIVE OFFICER ROBERT WILLIAM BAXTER, PRESIDENT/COO CHRISTOPHER J REYNOLDS, VP:FINANCE/CFO CAROL FRIES, VP:SOCIAL & ENVIRONMENT SEAN SPRAGGETT, VP:ENGINEERING www.norsemont.com Website
46
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (4/9/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 S-09
C$0.23 N/A
0.32 85.86 nm 87.8 73.0 20.2 19.9 FQ2 2010 0.7 (0.16) 27.6 nm (0.0) (0.0) 0.3 (0.0) FQ2 2010 (0.26) (0.24) (0.24) (1.02) (0.01) (0.01) (0.25) (14.81) FQ2 2010 0.39 31.65 32.54 0.55 4.36 4.91 27.63 87.75 0.31 0.31 84.91 FQ2 2010 (1.02) (0.34) (0.11) 0.10 (0.35) (0.45) (0.01) (0.00)
0.17
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (0.26) (0.19) (0.20) (0.24) (0.12) (0.22) (0.20) (0.30) 0.08 (0.20) (0.30) 0.08 (0.25) (0.18) (0.19) (2.50) #N/A N/A (6.62) FQ1 2010 FQ4 2009 FQ3 2009 0.39 0.69 0.66 32.15 31.99 31.21 32.54 32.67 31.88 0.55 0.65 0.15 4.36 4.45 4.54 4.91 5.09 4.69 27.63 27.58 27.19 87.75 87.75 84.64 0.31 0.31 0.32 0.31 0.31 0.32 84.91 84.41 85.30 FQ1 2010 FQ4 2009 FQ3 2009 (0.20) (0.30) 0.08 (0.33) 0.03 (0.14) (0.11) (0.23) (0.21) 0.10 0.45 (0.35) 0.25 (0.35) (0.48) (0.25) (0.35) (0.01) (0.00) (0.00) (0.00) 0.00 (0.00)
#N/A N/A #N/A N/A 0.75 #N/A N/A (1.1) #N/A N/A #N/A N/A nm #N/A N/A #N/A N/A FQ2 2009 (0.37) (0.36) (0.27) (0.27) (0.36) (8.29) FQ2 2009 1.04 30.99 32.03 0.13 4.83 4.95 27.08 84.64 0.32 0.32 84.54 FQ2 2009 (0.27) (0.60) (0.31) (0.92) (0.92) (0.01) (0.01)
Project Specifics Ownership % 30% 100% Class ng Location Apurimac, Peru Apurimac, Peru Tonnes (MM) 156.9 90.0 Grades Cu (%) 0.46% 0.77% RD RD Deposit Type Cu-Mo Porphyry Cu-Au Porphyry Mining Method NA NA Mine Strip Ratio Life (yrs) (w/o) NA NA NA NA Recovery Method NA NA Managemernt C. ALLEN BORN, CHAIRMAN LUQUMAN A. SHAHEEN, PRESIDENT & CEO CHRISTIAN G. PILON, PRES MINERA PANORO (PERU) FRED A.C. TEJADA, VP EXPLORATION MICHAEL KERFOOT, CFO Website www.panoro.com
Antilla Cotabambas
Inferred Inferred
Mo (%) 0.01% -
Au (g/t) 0.42
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
47
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (1/12/2010) Avg Daily Volume (000s) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (USD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet (US$) Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow (US$) Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
4.50 4.00 3.50 3.00 2.50 .4 M 2.00 1.50 1.00 0.50 0.00 S-09 .3 M .2 M .1 M .0 M S-10
C$1.50 N/A
1.33
NorthMet Acquisition of the Erie Plant. Beginning on November 15, 2005 POM entered into three Contracts for Deed with a subsidiary of Cliffs Natural Resources Inc, under which POM now owns a large processing facility, a tailings disposal facility, and extensive associated infrastructure located approximately six miles west of POMs NorthMet deposit. In combination, the Erie Plant includes a 100,000 ton-per-day crushing and milling facility, a railroad and railroad access rights connecting the Erie Plant to the NorthMet deposit, as well as 120 railcars, locomotive fueling and maintenance facilities, water rights and pipelines, large administrative offices on site and approximately 6,000 acres to the east and west of the Erie Plant, contiguous to the existing tailing facilities. Engineering and feasibility. POM retained Bateman Engineering Pty. of Brisbane, Australia (Bateman) as the coordinating consultant to prepare a Definitive Feasibility Study (the DFS). On September 25, 2006, POM reported that the Definitive Feasibility Study (DFS) prepared by Bateman confirming the economic and technical viability of the NorthMet Project. Since September 2006 POM has completed additional drilling, expanded the reserves, and more recently POM has been updating the mine scheduling, approximately within the DFS pit design, and updating estimated capital and operating costs. In May 2008 it completed an internal update of the DFS (the DFS Update) which contemplates an initial stage in which POM would sell concentrate during completion of construction and commissioning of the hydrometallurgical plant contemplated in the DFS. This approach has the advantage of staging capital costs so that the hydrometallurgical plant can be funded in part from cash flow from sales of concentrate, and it reduces POMs reliance on delivery of long lead-time equipment before the start of commercial production. Glencore Strategic Partnership. In October 2008, POM entered into a strategic partnership with Glencore AG (Glencore) whereby Glencore will invest up to $50 million in PolyMet in the form of a loan exchangeable into our common shares, and Glencore agreed to purchase all of our production of concentrates, metal, or intermediate products on market terms at the time of delivery, for at least the first five years of production. POM also appointed a senior technical representative of Glencore to join our Technical Steering Committee. Project Update Environmental review of the project is a joint state and federal process led by the Minnesota Department of Natural Resources (DNR) and the US Army Corp. of Engineers (USACE), jointly the Lead Agencies. An EIS, prepared by a third party contractor for the Lead Agencies, is intended to provide information to the public and government agencies that: describes potential environmental impacts of the project, explores alternatives to the Proposed Project that avoid or minimize potential environmental impacts, and considers mitigation of environmental impacts. EIS Status The PolyMet draft EIS was published in early November 2009 and the public review period was completed in early February 2010. The Lead Agencies held two informational meetings: one near site and one in the metro Minneapolis area. The Lead Agencies are reviewing the approximately 3,800 comments received on the draft EIS in order to prepare a work program for response and possible incorporation into the final EIS, as well as any additional analysis that may be needed before the final EIS can be completed. The US Environmental Protection Agency (EPA) was not formally involved in preparation of the draft EIS. However, it has provided critical comments that PolyMet has reviewed in detail the Company makes the following observations: - The EPAs rating of the draft EIS as unsatisfactory appears to have been based on the proposed project without consideration of alternatives or mitigations discussed in the document. - During the past four-and-a-half years following approval of the Environmental Assessment Worksheet (the draft EIS scoping document) PolyMet has spent in excess of $20 million on environmental engineering and review. Much of this work, undertaken by some of the worlds leading environmental engineers and scientists, has been directed at enhancing environmental protections and minimizing impacts of the project. - Many of the results of this work were incorporated in various alternatives set out in the draft EIS. However, many of the comments on the draft EIS did not focus on these alternatives and may not have fully considered the supporting information. - The draft EIS is supported by extensive scientific studies and, in some areas, identified the need for additional information. PolyMet has been working with the Lead Agencies to complete additional information for inclusion in the final EIS. Permitting The permitting process is linked to, but separate from, environmental review. Permits can only be issued once the environmental review has been completed and the DNR has issued an Adequacy Decision and the USACE has issued its Record of Decision. Several permits will need to be issued by the DNR, the Minnesota Pollution Control Agency (PCA) and the USACE before construction can begin.
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ4 2010 FQ3 2010 FQ2 2010 (6.18) (0.88) (1.09) (5.16) (0.84) (1.04) (5.16) (0.84) (1.04) (5.16) (0.84) (1.04) (0.03) (0.01) (0.01) (0.03) (0.01) (0.01) (6.17) (0.87) (1.08) (9.55) (5.28) (6.07) FQ4 2010 FQ3 2010 FQ2 2010 22.02 3.55 3.79 117.63 111.81 105.38 139.65 115.36 109.18 5.71 6.06 5.32 36.37 36.78 31.81 42.08 42.84 37.13 97.57 72.51 72.05 148.98 139.08 139.08 0.65 0.52 0.52 0.65 0.52 0.52 69.87 62.86 65.99 FQ4 2010 FQ3 2010 FQ2 2010 (5.16) (0.84) (1.04) (1.38) (0.39) (0.72) (5.20) (4.45) (3.80) 24.94 4.51 4.72 18.36 (0.33) 0.20 (6.58) (4.84) (4.52) (0.05) (0.03) (0.03) (0.01) (0.00) (0.01)
#N/A N/A #N/A N/A 2.23 #N/A N/A (0.1) #N/A N/A #N/A N/A nm (10.7) #N/A N/A FQ1 2010 (1.01) (0.98) (0.98) (0.98) (0.01) (0.01) (1.00) (6.97) FQ1 2010 3.55 99.70 103.25 4.96 26.90 31.86 71.40 137.78 0.52 0.52 69.15 FQ1 2010 (0.98) 0.06 (4.31) (0.06) (4.30) (4.24) (0.03) 0.00
.8 M .7 M .6 M .5 M
N-09
J-10
M-10
M-10
J-10
Project Location
Project Specifics Ownership % Northmet Resources 100% Class Location Minnesota, USA Tons Grades (MM) Cu (%) 638.2 0.27% 251.6 0.28% Engineering Completed DFS Mining Deposit Type Method Volcanic OP Mine Life (yrs) 20 Contained Metal Cu Ni (MM lbs) (MM lbs) 3,382 996 1,384 392 Strip Ratio (w/o) 1.5 Recovery Method Autoclave / SX/EW
Northmet
M+I Inferred
Co (MM lbs) 91 28
Pt (000 oz) 1,354 615 Management Team WILLIAM F MURRAY, CHAIRMAN JOSEPH M SCIPIONI, PRESIDENT/CEO DOUGLAS J NEWBY, CHIEF FINANCIAL OFFICER NIALL MOORE, SECRETARY/CONTROLLER Website www.polymetmining.com
Operating Metrics
Northmet
312.0
290.0
Attributable Production (avg p.a.) Cu Ni Co Throughput (tpd) (MM lbs) (MM lbs) (MM lbs) 32,000 61.5 14.5 0.7
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
48
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (6/23/2010) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
0.60 0.50 0.40 0.30 0.20 0.10 0.00 S-09 N-09 J-10 M-10 M-10 J-10 S-10
C$0.45 N/A
0.49 52wk Low (11/5/2009) 0.15 162.39 nm 109.0 95.9 49.0 46.7 CQ2 2010 1.1 P/E (Trailing 12m) (x) nm 4.13 P/CF (x) nm 2.3 P/B (x) 2.80 16.7 EV / EBITDA (Trailing 12m) (x) nm 0.1 Cash Gen / Cash Req (x) nm (0.01) Price / Free Cash Flow (x) nm (0.00) Cash Flow / Net Income (x) nm 0.16 EV/OPFCF (x) nm nm ROE (%) (14.80) (0.04) ROCE (%) (14.80) CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (0.51) (0.14) (0.19) (0.05) (0.02) (0.52) (0.11) (0.19) (0.02) (0.03) (0.52) (0.11) (0.19) (0.02) (0.03) (0.52) (0.20) (0.19) (0.02) 0.05 (0.01) (0.00) (0.00) 0.00 (0.01) (0.00) (0.00) 0.00 (0.43) (0.47) (0.08) (0.23) (0.11) (14.80) (2.92) (1.63) (0.57) 1.87 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 4.54 0.77 1.11 0.32 0.60 14.38 14.05 13.75 13.57 13.37 18.91 14.82 14.86 13.89 13.97 0.41 0.07 0.51 0.63 0.66 1.81 1.92 1.95 1.96 2.09 2.22 1.99 2.46 2.59 2.76 16.69 12.83 12.41 11.30 11.22 103.77 85.00 85.19 83.19 78.83 0.16 0.15 0.15 0.14 0.14 0.16 0.15 0.15 0.14 0.14 88.26 86.58 83.47 81.34 80.28 CQ2 2010 CQ1 2010 CQ4 2009 CQ3 2009 CQ2 2009 (0.52) (0.20) (0.19) (0.02) 0.05 (0.41) (0.78) (0.23) 0.06 0.23 (3.94) (0.52) (0.19) (0.36) (0.13) 4.28 0.36 1.19 0.03 0.45 (0.08) (0.95) 0.77 (0.27) 0.55 (4.35) (1.31) (0.42) (0.30) 0.10 (0.04) (0.02) (0.00) (0.00) 0.00 (0.00) (0.01) (0.00) 0.00 0.00
1.6 M 1.4 M 1.2 M 1.0 M .8 M .6 M .4 M .2 M .0 M
Project Location
Project Specifics Ownership % Copper Creek Resources 100% Class Location Arizona, USA Tonnes (MM) 27.3 159.2 Engineering Completed PEA Grades Cu (%) 1.05% 0.76% Operating Costs US$/t milled 27.78 Deposit Type Cu Mo Porphyry Mining Method UG Mine Strip Ratio Life (yrs) (w/o) 30 NA Recovery Method Floatation
Copper Creek
M+I Inferred
Au (000 oz) 16 17
Operating Metrics
Attributable Capex
Attributable Production (avg p.a.) Cu Throughput (tpd) (MM lbs) 10,000 73.1
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Management Team R. JOE SANDBERG, PRESIDENT & DIRECTOR ALEC PECK, CFO DARRYL J. YEA, DIRECTOR STEVEN BASTABLE, DIRECTOR J. STEPHEN BARLEY, MANAGING DIRECTOR GREG MCKELVEY, DIRECTOR Website www.redhawkresources.com
49
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (12/11/2009) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 S-09
C$1.38 N/A
Berg Terrane Metals' second significant asset is the Berg Project located in west-central British Columbia, Canada, some 84 km southwest of Houston, BC and 22 km northwest of the currently operating Huckleberry Mine. From 1965 to 1980, Kennecott Exploration Ltd and Placer Dome Inc completed 119 diamond drill holes totaling 20,128 metres on the property and developed a significant copper-molybdenum resource. The Joint Venture partners also completed numerous metallurgical tests, environmental studies, and financial analysis on the Berg Project. Development plans envisaged an open pit mining operation. The Project was shelved in the early 1990's due to declining metal prices and the two Joint Venture partners shifting their attention to other parts of the world. In 2006, Terrane Metals obtained 100% ownership of the Berg Project and reactivated the property to evaluate the potential of bringing the Project to commercial production. Terrane has completed over 22,500 metres of diamond drilling in 60 holes, testing the depth potential of the deposit and investigating the molybdenum-rich core zone near the contact of the Berg Stock. In May 2009 Terrane announced a revised NI 43-101 compliant Mineral Resource Estimate for the Berg Project, a 36% expansion over the previous resource estimate (see table below). Howards Pass The Howards Pass Project straddles the Yukon Territory -- Northwest Territories border. Between 1972 and 1982, the Howards Pass Joint Venture ("HPJV"), owned 51% by Placer Dome (CLA) Limited and 49% by Cygnus Mines Limited, identified extensive stratiform-style zinc, lead and silver mineralization. In 2005, the HPJV was optioned to Selwyn Resources Ltd ("Selwyn" - formerly Pacifica Resources Ltd), whereby Selwyn is required to make $10 million in option payments to HPJV over a seven year period, undertake $3.5 million in work commitments (completed) and grant a 20% Net Profits Interest (capped at $10 million) and a 1% Net Smelter Royalty to the joint venture partners. Terrane Metals Corp has acquired Placer Dome's 51% interest in the Joint Venture. Maze Lake The Maze Lake Project is located in the Kivalliq District of Nunavut, with excellent access from either Rankin Inlet or Whale Cove, both on Hudson Bay. The Maze Lake Project consists of five Inuit Owned Lands Mineral Exploration Agreements with a total area of 39,866 hectares (~99,000 acres). Maze Lake is an early-stage gold exploration project. The current land package was staked in 2003 by Placer Dome who conducted exploration programs on the property until 2004. Work included extensive lake water and frost boil surveys, localized geological mapping, an airborne magnetometer survey, a small Induced Polarization Survey, and approximately 1200 metres of diamond drilling. Terrane Metals purchased the property in 2006 after Placer Dome was acquired by Barrick Gold Corporation. In August 2007, Terrane Metals granted Laurentian Goldfields the right to earn up to a 75% interest in the Maze Lake Project by making $6,000,000 in exploration expenditures over four years and issuing 1,000,000 units of Laurentian to Terrane. Laurentian is currently the operator of the project. Project Specifics Ownership % Mount Milligan Berg Resources 100% 100% Class Location British Columbia, Canada British Columbia, Canada Tonnes (MM) 706.7 20.5 506.0 144.6 Engineering Completed Construction RD Deposit Type Cu-Au Porphyry Cu-Mo-Ag Porphyry Mining Mine Method Life (yrs) OP 22.1 NA NA Strip Ratio (w/o) 0.8 NA
1.98 2,501 nm 535.6 188.9 634.4 771.7 CQ2 2010 78.7 59.91 14.5 166.7 nm (0.01) 0.36 (0.07) CQ2 2010 #N/A N/A (1.19) (1.19) (0.96) (0.96) #N/A N/A #N/A N/A (1.19) (0.58) CQ2 2010 0.49 226.42 226.91 18.79 41.38 60.17 166.74 368.09 0.45 0.45 73.48 CQ2 2010 (0.96) (1.03) (0.62) 0.10 (1.46) (1.64) (0.00) (0.00)
0.26
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) CQ1 2010 CQ4 2009 CQ3 2009 (1.19) (2.06) (0.99) (1.19) (2.06) (0.99) (0.94) (1.58) (0.75) (0.94) (1.58) (0.75) (1.14) (2.02) (0.94) (9.68) (6.78) (5.54) CQ1 2010 CQ4 2009 CQ3 2009 0.49 1.87 1.35 226.42 225.20 224.39 226.91 227.07 225.73 18.79 17.99 17.22 41.38 41.63 42.11 60.17 59.62 59.33 166.74 167.45 166.40 128.18 127.97 123.20 0.36 0.37 0.38 0.36 0.37 0.38 73.48 73.74 73.72 CQ1 2010 CQ4 2009 CQ3 2009 (0.94) (1.58) (0.75) (1.03) (2.01) (0.86) (0.62) (1.05) (1.45) 0.10 3.61 1.96 (1.55) 0.55 (0.35) (1.64) (3.01) (3.07) (0.00) (0.01) (0.01) (0.00) (0.01) (0.00)
#N/A N/A #N/A N/A 3.78 #N/A N/A (0.2) #N/A N/A #N/A N/A nm (6.4) #N/A N/A CQ2 2009 (1.07) (1.07) (1.34) (1.34) (1.02) (6.37) CQ2 2009 1.99 223.10 225.09 15.57 42.35 57.92 167.17 363.20 0.13 0.13 74.27 CQ2 2009 (1.34) (0.95) (1.63) 2.91 0.33 (2.99) (0.01) (0.00)
90.0 M 80.0 M 70.0 M 60.0 M 50.0 M 40.0 M 30.0 M 20.0 M 10.0 M .0 M
N-09
J-10
M-10
M-10
J-10
S-10
Project Location
Contained Metal Mo Au Ag MM lbs (000 oz) (000 oz) 7,498 135 412 61,400 107 11,700
Operating Metrics
Attributable Capex
Mount Milligan
Attributable Production (avg p.a.) Cu Mo Au Ag (MM lbs) (MM lbs) (000 oz) (000 oz) 80.8 194.5 357.3
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Management Team JEFFREY FRANZEN, CHAIRMAN ROBERT PEASE, CEO & DIRECTOR BASIL HUXHAM, CFO PETER MARSHALL, SVP PROJECT DEVELOPMENT PAUL HOSFORD, VP ENGINEERING DARREN O'BRIEN, VP EXPLORATION Website terranemetals.com
50
The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Not Rated
Ian Parkinson - (416-956-6169) - Ian.Parkinson@cibc.ca Matthew Gibson - (416-956-6729) - Matthew.Gibson@cibc.ca
Key Data
52wk High (11/4/2009) Avg Daily Volume (000s) TSX Index weight (%) Shares Outstanding (MM) Float (MM) Market Cap ($MM) Enterprise Value ($MM) Cash ($mm) Working capital ($MM) Total debt ($MM) Common equity ($mm) Net debt/common equity (x) EPS (Trailing 12m) Cash Flow / Basic Share ($) Book Value / Share ($) Sales / Share (Trailing 12m) ($) Free Cash Flow / Share ($) Income Statement (CAD) Revenue ($MM) Operating Income ($MM) Pretax Income ($MM) Income bef XO items ($MM) Net Income ($MM) Basic EPS ($) Diluted EPS ($) EBITDA ($MM) Return on Common Equity (%) Balance Sheet Total Current Assets ($MM) Total Long-Term Assets ($MM) Total Assets ($MM) Total Current Liabilities ($MM) Total Long-Term Liabilities ($MM) Total Liabilities ($MM) Total Shareholders' Equity ($MM) Shares Outstanding (MM) Book Value per Share ($) Tangible Book Value / Sh ($) Shrhldr Eqy / Tot Liab & Eqy (%) Cash Flow Net Income ($MM) Cash - Operating Activities ($MM) Cash - Investing Activities ($MM) Cash - Financing Activities ($MM) Net Changes in Cash ($MM) Free Cash Flow ($MM) Free Cash Flow / Diluted Sh ($) Cash flow per Share ($) Share Price Performance
2.50 2.00 1.50 1.00 0.50 0.00 S-09 N-09 J-10 M-10 M-10 J-10
C$1.21 N/A
2.25 156.08 nm 81.9 69.5 99.1 90.8 FQ2 2010 13.7 (6.10) 75.0 nm (0.0) (0.0) 0.9 (0.1) FQ2 2010 (0.79) (0.78) (0.78) (0.78) (0.01) (0.01) (0.79) (3.20) FQ2 2010 8.54 81.15 89.69 14.64 14.64 75.05 81.86 0.92 0.92 83.68 FQ2 2010 (0.78) (0.38) (0.78) 2.84 1.68 (5.39) (0.07) (0.00)
0.81
P/E (Trailing 12m) (x) P/CF (x) P/B (x) EV / EBITDA (Trailing 12m) (x) Cash Gen / Cash Req (x) Price / Free Cash Flow (x) Cash Flow / Net Income (x) EV/OPFCF (x) ROE (%) ROCE (%) FQ1 2010 FQ4 2009 FQ3 2009 (0.78) (0.67) (0.57) (0.76) (0.63) (0.51) (0.76) (0.23) (0.51) (0.76) (0.23) (0.51) (0.01) (0.01) (0.01) (0.01) (0.77) (0.67) (0.56) (2.98) (2.57) (3.18) FQ1 2010 FQ4 2009 FQ3 2009 11.35 13.80 12.05 75.65 73.08 71.27 87.00 86.88 83.32 14.16 10.76 12.41 14.16 10.76 12.41 72.84 76.12 70.91 79.43 79.28 76.83 0.92 0.96 0.92 0.92 0.96 0.92 83.72 87.62 85.10 FQ1 2010 FQ4 2009 FQ3 2009 (0.76) (0.23) (0.51) (1.09) (0.14) (0.68) (1.86) (5.31) (2.18) 0.06 5.30 3.66 (2.88) (0.16) 0.80 (2.95) (3.23) (2.86) (0.04) (0.04) (0.04) (0.01) (0.00) (0.01)
#N/A N/A #N/A N/A 1.32 #N/A N/A (0.3) #N/A N/A #N/A N/A nm (2.6) #N/A N/A FQ2 2009 (0.65) (0.59) (0.59) (0.59) (0.01) (0.01) (0.63) (3.28) FQ2 2009 11.03 67.44 78.48 10.84 10.84 67.64 72.82 0.93 0.93 86.18 FQ2 2009 (0.59) (0.54) (0.77) (1.30) (1.30) (0.02) (0.01)
Project Specifics Ownership % 100% 100% 100% 100% 100% 100% Class Engineering Location Completed(1) Yukon Territory, Canada DFS Yukon Territory, Canada RD Yukon Territory, Canada PFS Yukon Territory, Canada PFS North West Territory, Canada RD British Columbia, Canada RD Tonnes Grades (MM) 10.4 0.1 5.7 3.2 38.0 1.0 1,085.0 232.0 34.0 230.9 52.8 Cu (%) 1.13% 0.82% 0.77% 0.69% 0.07% 0.10% 0.21% 0.16% 3.92% 0.28% 0.28% Mo (%) 0.01% 0.02% 0.02% Au (g/t) 0.52 0.00 0.23 0.18 0.57 0.45 0.23 0.18 0.31 0.38 Deposit Type Cu Porphyry Cu Porphyry Au Oxide Cu-Au-Mo Porphyry Stratiform Cu-Au Porphyry Ag (g/t) 4.94 1.50 2.24 1.64 9.00 Mining Method OP NA OP OP UG OP Cu (MM lbs) 258 1 96 48 59 2 5,018 819 2,938 1,425 326 Mine Strip Ratio Recovery Life (w/o) Method 6 5.4 SX/EW NA NA NA 7 1.0 Heap Leach 28 1.0 Floatation NA NA NA NA NA NA Contained Metal Mo (MM lbs) 8 0 445 95 Au (000 oz) 173 0 41 18 696 14 7,931 1,313 2,294 640 Ag (000 oz) 1,647 4 408 167 9,838 -
Project Locations
Carmacks (Oxide) Carmacks (Sulphide) Casino (Leach Cap) Casino (Sulphide) Redstone Island Copper Resources
Carmacks (Oxide) Carmacks (Sulphide) Casino (Leach Cap) Casino (Sulphide) Redstone Island Copper
M+I Inferred M+I Inferred M+I Inferred M+I Inferred Inferred M+I Inferred
Operating Metrics
Operating Costs US$/lb Cu* 0.93 (0.07) US$/lb Cu* 235 US$/t milled 17.47 2.90 8.84 Throughput (tpd) 5,000 25,000 94,770
Attributable Production (avg p.a.) Cu Mo Au Ag (MM lbs) (MM lbs) (000 oz) (000 oz) 33.8 3.1 124.0 10.9 85.0 158.0 -
Management Team DALE CORMAN, CHAIRMAN & CEO PAUL WEST-SELLS, PRESIDENT & COO JULIEN FRANCOIS, VP FINANCE & CFO JONATHAN CLEGG, VP ENGINEERING CLAIRE DEROME, VP GOVERNMENT & COMMUNITY RELATIONS
RD - Resource Definition, PEA - Preliminary Economic Assessment (Scoping Study), PFS - Prefeasibility Study, DFS - Definitive Feasibility Study *By-product credits based on CIBC long term metal price forecasts
Website
www.westerncoppercorp.com
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
IMPORTANT DISCLOSURES:
Analyst Certification: Each CIBC World Markets research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report. Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets are compensated from revenues generated by various CIBC World Markets businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers. In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by CIBC World Markets Inc.:
Stock Prices as of 09/12/2010: Antares Minerals Inc. (2g) (ANM-V, C$3.88, Sector Outperformer - Speculative) Capstone Mining Corporation (2g, 7) (CS-TSX, C$2.72, Sector Performer) Consolidated Thompson Iron Mines Ltd. (2g) (CLM-TSX, C$8.64, Sector Outperformer) First Quantum Minerals Ltd. (FM-TSX, C$63.73, Sector Outperformer) HudBay Minerals Inc. (2g, 7) (HBM-TSX, C$14.96, Sector Outperformer) Husky Energy Inc. (2a, 2c, 2e, 2f, 2g) (HSE-TSX, C$25.72, Sector Performer) Inmet Mining Corporation (2g) (IMN-TSX, C$52.69, Sector Performer) Ivanhoe Mines Ltd. (2a, 2e, 2g) (IVN-TSX, C$18.65, Sector Performer) Mercator Minerals Ltd. (ML-TSX, C$2.14, Sector Performer) Penn West Energy Trust (2a, 2e, 2g, 3a, 3c) (PWT.UN-TSX, C$19.69, Sector Outperformer) Quadra FNX Mining Ltd. (2a, 2e, 2g) (QUX-TSX, C$13.10, Sector Outperformer) Silvercorp Metals Inc. (2g) (SVM-TSX, C$8.12, Sector Performer) Taseko Mines Limited (2g) (TKO-TSX, C$4.69, Sector Outperformer) Teck Resources Limited (2a, 2b, 2c, 2e, 2f, 2g, 7, 9, 12) (TCK.B-TSX, C$39.25, Sector Outperformer) Thompson Creek Metals Company, Inc. (2g) (TCM-TSX, C$9.66, Sector Performer)
Companies Mentioned in this Report that Are Not Covered by CIBC World Markets Inc.:
Stock Prices as of 09/12/2010: Abacus Mining & Exploration Corp. (AME-V, C$0.17, Not Rated) Abra Mining Limited (AII-AUS, A$0.13, Not Rated) Amerigo Resources Ltd (ARG-TSX, C$0.83, Not Rated) Anglo American PLC (AAL-L, p2507.33, Not Rated) Antofagasta (ANTO-L, 1118.00, Not Rated) Aquila Resources Inc. (AQA-TSX, C$0.41, Not Rated) Augusta Resource Corporation (AZC-TSX, C$3.25, Not Rated) Aura Minerals Inc. (ORA-TSX, C$3.64, Not Rated) Baja Mining Corporation (BAJ-TSX, C$0.83, Not Rated) Bauxite Resources Limited (BAU-AUS, A$0.17, Not Rated) BHP Billiton Ltd. (BHP-NYSE, US$70.64, Not Rated) Candente Resource Corp (DNT-TSX, C$0.40, Not Rated) Cape Alumina Ltd. (CBX-AUS, A$0.28, Not Rated) Centrex Metals Limited (CXM-AUS, A$0.37, Not Rated) China Sci-Tech Holdings Ltd. (0985-HK, [HKD]0.17, Not Rated) Cliffs Natural Resources Inc. (CLF-NYSE, US$65.53, Not Rated) Compania de Minas Buenaventura SAA (BVN-NYSE, US$40.48, Not Rated) Copper Fox Metals Inc. (CUU-V, C$0.65, Not Rated) Copper Mountain Mining (CUM-TSX, C$3.35, Not Rated) Coro Mining Corporation (COP-TSX, C$0.55, Not Rated) Crowflight Minerals (CML-TSX, C$0.13, Not Rated) DMC Mining Limited (DMM-AUS, A$0.52, Not Rated) Duluth Metals Ltd. (DM-TSX, C$2.11, Not Rated) Energy Metals Limited (EME-AUS, A$0.54, Not Rated) Entree Gold Inc. (ETG-TSX, C$2.45, Not Rated) Explorator Resources Inc. (EXO-V, C$0.43, Not Rated)
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Companies Mentioned in this Report that Are Not Covered by CIBC World Markets Inc.: (Continued)
Stock Prices as of 09/12/2010: Far West Mining Ltd. (FWM-TSX, C$4.85, Not Rated) Fortescue Metals Group Limited (FMG-AUS, A$4.81, Not Rated) Fox Resources Ltd (FXR-AUS, A$0.21, Not Rated) Gindalbie Metals Ltd. (GBG-AUS, A$0.92, Not Rated) Globestar Mining (GMI-TSX, C$1.18, Not Rated) Gold Fields Ltd. (GFI-NYSE, US$14.72, Not Rated) Iberian Minerals Corp. (IZN-V, C$0.46, Not Rated) Imperial Metals Corp. (III-TSX, C$16.95, Not Rated) IMX Resources (IXR-AUS, A$0.43, Not Rated) Indophil Resources NL (IRN-AUS, A$0.69, Not Rated) International PBX Ventures Ltd. (PBX-V, C$0.27, Not Rated) Jiangxi Copper (0358-HK, [HKD]17.96, Not Rated) Kagara Zinc Limited (KZL-AUS, A$0.65, Not Rated) Liberty Mines Inc. (LBE-TSX, C$0.18, Not Rated) Los Andes Copper Limited (LA-V, C$0.13, Not Rated) Lumina Copper Corp. (LCC-V, C$2.54, Not Rated) Lynas Corporation Limited (LYC-AUS, A$1.23, Not Rated) Macarthur Coal (MCC-AUS, A$9.40, Not Rated) Marubeni Corporation (8002-T, 451.00, Not Rated) Metals X FPO (MLX-AUS, A$0.15, Not Rated) Minera Andes Inc. (MAI-TSX, C$0.94, Not Rated) Mitsubishi Materials Corp. (5711-T, 234.00, Not Rated) Moly Mines Limited (MOL-TSX, C$0.71, Not Rated) Mount Gibson Iron Limited (MGX-AUS, A$1.76, Not Rated) Mungana (MUX-AUS, A$0.91, Not Rated) Murchison Metals Ltd (MMX-AUS, A$0.66, Not Rated) Nevada Copper Corp. (NCU-TSX, C$3.21, Not Rated) NGEx Resources Inc. (NGQ-TSX, C$0.60, Not Rated) Norsemont Mining (NOM-TSX, C$2.00, Not Rated) Northern Dynasty Minerals Ltd (NDM-TSX, C$7.50, Not Rated) OM Holdings Limited (OMH-AUS, A$1.63, Not Rated) Pacific Booker Minerals Inc. (BKM-V, C$7.47, Not Rated) Pan Australian Resources Ltd. (PNA-AUS, A$0.52, Not Rated) Panoro Minerals Ltd. (PML-V, C$0.27, Not Rated) Perilya Limited (PEM-AUS, A$0.44, Not Rated) Polymet Mining (POM-TSX, C$1.52, Not Rated) Redhawk Resources, Inc. (RDK-V, C$0.46, Not Rated) Rio Tinto plc (RIO-L, p3495.29, Not Rated) Sojitz Corporation (2768-T, 143.00, Not Rated) Sumitomo Metal Mining (5713-T, 1207.00, Not Rated) Terramin Australia Limited (TZN-AUS, A$0.53, Not Rated) Terrane Metals Corp. (TRX-V, C$1.39, Not Rated) Toledo Mining Corp (TMC-L, p26.30, Not Rated)
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Companies Mentioned in this Report that Are Not Covered by CIBC World Markets Inc.: (Continued)
Stock Prices as of 09/12/2010: Western Copper Corporation (WRN-TSX, C$1.23, Not Rated) Xstrata (XTA-L, p1135.50, Not Rated) Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to Important Disclosure Footnotes" section of this report.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
10 11 12 13 14
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
Sector Weightings**
**Broader market averages refer to the S&P 500 in the U.S. and the S&P/TSX Composite in Canada. "Speculative" indicates that an investment in this security involves a high amount of risk due to volatility and/or liquidity issues. ***Restricted due to a potential conflict of interest.
Metals & Minerals Sector includes the following tickers: ANM, BAN, BIM, CCO, CLM, CS, DML, EQN, FM, GMO, HBM, IMN, IVN, LIF.UN, LUN, ML, MNB, NML, PDN, QUX, S, TCK.B, TCM, TKO, UEC, UUU. *Although the investment recommendations within the three-tiered, relative stock rating system utilized by CIBC World Markets Inc. do not correlate to buy, hold and sell recommendations, for the purposes of complying with NYSE and NASD rules, CIBC World Markets Inc. has assigned buy ratings to securities rated Sector Outperformer, hold ratings to securities rated Sector Performer, and sell ratings to securities rated Sector Underperformer without taking into consideration the analyst's sector weighting.
Important disclosures required by IIROC Rule 3400, including potential conflicts of interest information, our system for rating investment opportunities and our dissemination policy can be obtained by visiting CIBC World Markets on the web at http://researchcentral.cibcwm.com under 'Quick Links' or by writing to CIBC World Markets Inc., Brookfield Place, 161 Bay Street, 4th Floor, Toronto, Ontario M5J 2S8, Attention: Research Disclosures Request.
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The Next Leg Of Growth In The Copper Supply Chain - September 12, 2010
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