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Minera Frisco Investor Presentation - 2Q16 El Coronel Unit
Minera Frisco
Investor Presentation - 2Q16
El Coronel Unit
Overview
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A mining company dedicated to the exploration and production of gold, silver,
copper, lead and zinc
Created in 1962 and acquired by Grupo Carso in 1985
More than 50 years of mining experience
On January 2011, GCarso spin-off Minera Frisco and has been trading independently
in the Mexican Stock Exchange (MFRISCO) since then
9 operating mines and 1 project under development
8,691 employees (includes contractors)
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Location: Sonora
Stage: Operating
Metals: Cu
Maria
Location: Baja California Norte
Stage: Operating
Metals: Au / Ag
San Felipe
Location: Chihuahua
Stage: Operating
Metals: Au / Ag
Concheño
Location: Chihuahua
Stage: Operating
Metals:Au/ Ag/ Cu/ Pb /Zn
San Francisco del Oro
Location: Zacatecas
Stage: Construction
Metals: : Au/ Ag/ Cu/ Pb/ Zn
Tayahua - Cobre Primario
Location: Zacatecas
Stage: Operating
Metals: Au/ Ag/ Cu/ Pb/ Zn
Tayahua
Location: Zacatecas
Stage: Operating
Metals: Au / Ag
El Coronel
Location: Aguascalientes
Stage: Operating
Metals: Au/ Ag/ Cu/ Pb/ Zn
Asientos
Location: Aguascalientes
Stage: Operating
Metals: Au / Ag
El Porvenir
Operating Mines Expansion Projects
Geographic Footprint
Location: Chihuahua
Stage: Operating
Metals: Au / Ag
Ocampo
Location: Chihuahua, Mex.
Exploitation Type: Open Pit &
Underground
Process: Dynamic
Leaching
Start of Operations: 2013
Capacity: 13,500 TPD
Main Metals: Au / Ag
Final Product: Dore Bars
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Operating Mines: open pit & underground
Concheño
Location: Chihuahua , Mex.
Exploitation Type: Underground
Process: Dynamic
Leaching
Start of Operations: 2006
Capacity: 3,000 TPD
Main Metals: Au / Ag
Final Product: Dore Bars
Ocampo
Location: BCN, Mex.
Exploitation Type: Open Pit &
Underground
Process: Heap and
Dynamic Leaching
Start of Operations: 1994
Project expansion start-up: 2013
Capacity: 37,000 TPD
Metals: Au / Ag
Final Product: Dore Bars
San Felipe
TPD (tonnes per day)
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Operating Mines: open pit
Location: Zacatecas , Mex.
Exploitation Type: Open Pit
Process: Heap Leaching
Start of Operations: 2008
Capacity: 55,000 TPD
Metals: Au / Ag
Final Product: Dore Bars
Location: Aguascalientes,
Mex.
Exploitation Type: Open Pit
Process: Heap Leaching
Start of Operations: 2013
Capacity: 8,500 TPD
Metals: Au / Ag
Final Product: Dore Bars
El Coronel El Porvenir
Location: Sonora, Mex.
Exploitation Type: Open Pit
Process: Heap Leaching
Start of Operations: 2004
Capacity: 27,000 TPD
Metals: Cu
Final Product: Copper -
Cathodes
Maria
TPD (tonnes per day)
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Operating Mines: underground
Asientos Tayahua* San Francisco del Oro
Location: Zacatecas, Mex.
Exploitation Type: Underground
Process: Flotation Circuit
Start of Operations: 1917
Capacity: 5,500 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
Location: Aguascalientes,
Mex.
Exploitation Type: Underground
Process: Flotation Circuit
Start of Operations: 2008
Capacity: 3,800 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
Location: Chihuahua , Mex.
Exploitation Type: Underground
Process: Flotation Circuit
Start of Operations: 2004
Capacity: 4,000 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
*Expansion project under development TPD (tonnes per day)
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Projects under development
Nominal installed milling/crushing capacity (tonnes/day)
Name Location MetalsExploitation
type Process
Current
milling/crushing
installed capacity*
Description
Additional
installed
capacity*
Expected
installed
capacity*
Status
Tayahua Zac. Au, Ag,
Pb, Zn, Cu Underground
Milling and
flotation5,500
Primary copper: access ramp
of 6 km, crushing, grinding and
flotation plant
10,000 15,500Under
construction
Expansion projects
82,700
157,300 167,300
2012 2015 2016E
• During 2010, MFrisco initiated an aggressive growth program which consisted in the development of 2 new mining units (Concheño and Porvenir) and the expansion 3 operating units (Coronel, San Felipe and Tayahua).
• As a result, output capacity grew from 82,700 to 157,300 Tn / day.
Tayahua – Primary copper project • This is the only project still under construction and is expected to begin operations early on 2017.
growth %
6.4% 90.2%
-
Key Operating Data
8 growth %
1%
growth %
1% - - - 38% -3% - -7% -
growth %
-11% -2% - -19%
18% 22%
growth %
-6% - 57% - -3%
269
423 412
202
104 98
2013 2014 2015 1H16 2Q15 2Q16
Gold ('000 Oz)
-
growth %
- - 18% - -11% 5%
7,523
8,855 9,331
4,434
2,429 2,165
2013 2014 2015 1H16 2Q15 2Q16
Silver ('000 Oz)
26,296 25,823
20,871
9,401
5,198 4,629
2013 2014 2015 1H16 2Q15 2Q16
Copper (tonnes)
-
18,914 18,275
21,642
10,956
5,852 5,881
2013 2014 2015 1H16 2Q15 2Q16
Lead (tonnes)
63,675
58,913
71,628
36,506
17,899 18,051
2013 2014 2015 1H16 2Q15 2Q16
Zinc (tonnes)
-
Key Operating Data
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It does not include hedging effects.
UnitGold
(Oz)
Silver
(Oz)
Lead
(tonnes)
Zinc
(tonnes)
Copper
(tonnes)
El Coronel 27,130 4,355 - - -
San Felipe 26,638 291,185 - - -
Asientos 1,206 239,484 1,667 6,461 202
Tayahua 1,937 343,296 1,369 5,675 3,085
San
Francisco
del Oro
1,123 396,725 2,845 5,915 578
Porvenir 1,442 20,754 - - -
Ocampo 6,132 165,980 - - -
Concheño 32,768 703,476 - - -
María - - - - 763
Total 98,376 2,165,254 5,881 18,051 4,629
2Q16
60% 18%
9%
10% 4%
2Q16 - Revenues by product
Gold
Silver
Copper
Zinc
Lead
Key Financial Data
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37%
6% -14 %
growth %
20%
growth %
- 70% -58%
margin % 36% 34% -
2% -4%
0% - 32% 42% 34%
-
3,376 3,374
10,305
12,398
13,611
2Q15 2Q16 2013 2014 2015
Revenues (million pesos)
10%
1,093 1,152
4,332 4,521 4,648
2Q15 2Q16 2013 2014 2015
EBITDA (million pesos)
-
5
10
15
20
25
1,050
1,100
1,150
1,200
1,250
1,300
1,350
2Q15 2Q16 2013 2014 2015
Ag-
ave
rage
pri
ce (
usd
/Oz)
Au
- av
erag
e p
rice
(u
sd/O
z)
Gold & Silver Price
Au (Oz) Ag (Oz)
-8 %
-18%
6,027
1,797
746 528
2013 2014 2015 1H16
Capex
(million pesos)
-
Key Financial Data
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Indebtedness
At June 30th , 2016, the company continued with its metal hedging strategy and it covers most of the
production estimated for the remainder 2016 year. Also, a metal hedging strategy started for 2017.
Derivative Financial Instruments
Indebtedness Variation
(USD million) 2Q16/2Q15
Short terms marketable notes - 64 -100%
Long term bonds 264 321 -18%
Syndicated loan 1,060 1,100 -4%
Debt 1,324 1,485 -11%
Exchange rate (pesos per dollar) 18.91 15.57
2Q16 2Q15
On June 30th, 2016 the Company’s debt was composed of a syndicated loan of US$1,060 MM and $5,000 MM
Ps in long term bonds.
On June 14th, the first amortization of the syndicated loan was made, reducing debt in $40 MM USD. At the
end of 2Q16, the syndicated loan decreased by 4% and total debt decreased 11%, reaching US$1,324 MM vs.
US$1,485 MM.
Contact
Investor Relations:
Lizbeth Munguia Samperio
T. +52 (55) 2122.2624
Corporate Office:
Plaza Carso Lago Zurich #245
Presa Falcon Building, 17th Floor
Granada Ampliación
11529 México DF
Trading Symbol:
MSE: MFRISCO
OTC: MSNFY
www.minerafrisco.com
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Certain statements in this presentation may be related to expectations about future events of Minera Frisco. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Minera Frisco undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release.
