+ All Categories
Home > Documents > Nov, 2011 - M A R C H 2014 -. TSX-V: IO Disclaimer This presentation includes forward-looking...

Nov, 2011 - M A R C H 2014 -. TSX-V: IO Disclaimer This presentation includes forward-looking...

Date post: 24-Dec-2015
Category:
Upload: chester-miles
View: 216 times
Download: 0 times
Share this document with a friend
Popular Tags:
19
Nov, 2011 - M A R C H 2014 -
Transcript
Page 1: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

Nov, 2011

- M A R C H 2 0 1 4 -

Page 2: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 2

Disclaimer

This presentation includes forward-looking statements which are not historical facts but instead address future events and conditions

which by their very nature, involve inherent risks and uncertainties. Such information can generally be identified by the use of

forward-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or

similar variations. Forward-looking information in this presentation includes, but is not limited to, intended acquisitions, upgrades and

production at milling facilities, financing plans, use of proceeds and estimated net income. Actual results in each case could differ

materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices and exchange

rates; (ii) change in market conditions: (III) the fact that the Company has based many of its projections on information disclosed by

Dynacor Gold Mines Inc. (TSX:DNG, a company that the Company has in part based its business model on), and the Company’s

development and factors affecting it may be very different from those relevant to Dynacor, (iv) availability and quality of mill feed, (v)

regulatory and political developments and (vi) the Company has limited operating experience with its Chala Plant mill and future

operational results may not be accurately predicted based on this limited test milling information to date. Our forward-looking

information is based on the beliefs, expectations and opinions of management on the date the statements are made and we do not

assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise,

other than as required by applicable law.

Future-Oriented Financial Information

In addition this presentation contains future-oriented financial information (“FOFI”). The purpose of the FOFI is to provide prospective

investors with information pertaining to the Company’s longer term objectives. Readers should be cautioned that information may not

be appropriate for other purposes.

Currency

Unless otherwise indicated, all dollar values herein are in Canadian dollars.

.

Page 3: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 3

Directors & Advisory Board

Edward Kelly, BBA, President & CEO / Director+20 years of management experience in sales, marketing and business development working in both private and public companies, +10 years working experience with Canadian public companies, Turn-around specialist who has rescued several private ventures, with corporate restructuring increasing sales by over 110% in 3 years, +3 years working in Peru.

George Moen, B.Com. Chief Operating OfficerFounder of Sandwich Tree & grew +100 locations across Canada, Former President of Blenz Coffee & grew the business to over 100 locations internationally, Co-Founder & serial entrepreneur of many successful businesses, including Rapid Time Networks, and High Output Business Networking.

Sharon Muzzin, CA, Chief Financial Officer Ms. Muzzin has been a Senior Consultant of Malaspina Consultants Inc. since September 2005. She has over 25 years of experience providing management services to both private and public entities including several public companies in the mining industry. She is a Chartered Accountant.

Phu Van Bui, P.Geo.,DirectorMr. Bui is the principal geologist at Azalea GeoServices and a registered professional geoscientist with APEGBC. Since 2004, he has been engaged in base and precious-metal exploration and development projects in Alaska, Australia, Northern Canada, and Eastern Europe

George Young, Chief Metallurgist, Advisory BoardMetallurgist and a mining lawyer, with significant experience in mining development In Latin America. +35 years of experience in the industry, serving previously as VP and Director of International Royalty Corp., President of MAG Silver Corp, General Counsel Bond International Gold.

Paul Matysek, M.Sc. P.Geo, Advisory BoardFormer President & CEO of Potash One where he successfully transacted the company for $454M to K+S Canada. Founder & CEO of Energy Metals Corp., where he helped grow from a market cap of $10M to its acquisition for $1.8B Executive capacity for several exploration & development companies including First Quantum Minerals, First Majestic, Energy Metals & Lithium One.

Other Directors

Gunther Roehlig, Director

Oliver Foeste, Director

Thomas Henricksen, Director & Chief Geologist Peru

Robert McMorran, Director

James L. Harris, LLB, Corp Secretary

Page 4: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 4

Mission Statement

To establish ourselves as a brand by providing superior service to the small scale gold mining sector, by strengthening business relations with all stake holders.

Our Vision is to become the leader in the custom processor of gold ore in Peru, through acquiring, upgrading, and increasing production at existing milling facilities thereby providing attractive returns on capital to investors and excellent opportunity for share price growth.

Page 5: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 5

Short Term Objectives

TSX-V: IO

­ Raise $5M in equity/debt financing to secure mill feed and upgrade Chala Plant mill to 100 TPD

­ Establish US$9.8 million/year initial net cash flow rate at 100 TPD

­ Ramp up production to 100 TPD in calendar 2014

­ Sign a LOI on one additional existing mill in a strategic location in Peru

­ Strengthen management team in Peru

­ Solidify key relationships for gold material supply with small scale mining community leaders

Page 6: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 6

Long Term Objectives

­ Raise $15M in equity/debt financing to increase capacity at Chala Plant and

Future Plants 2 & 3 to 100TPD, as well secure mill feed taking company wide

operations to 300TPD

­ Continue the growth profile by acquiring & upgrading 4 producing toll milling

facilities within 5 years and increase production to over 1000 TPD

­ Eventually, with increasing milling capacity, become the small-scale miner’s

company of choice for legal, environmental, and technical guidance for

partnerships and guaranteed gold ore supply to the company

­ Become the “processor of choice” by offering long lasting and reliable

relationships, superior service and conditions which emulate North American

standards

­ Become the “investment of choice” for Peruvian pension funds

Page 7: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 7

Share Structure

As of March 7, 2014

Issued & Outstanding 63.5 M

Warrants 10.1 M

Options 3.9 M

Fully Diluted 77.5 M

Cash & Cash Equivalents $400,000

Marketable Securities 1,300,000

Market Cap $5.7 M

52 Week Range $0.065 - $0.13

Ownership- Management 17.5%

Page 8: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 8

The Business Opportunity

Peru Formalization

­ Government of Peru was losing tax and royalty revenues from small mines exporting

“under the radar screen”

­ Recently instituted “formalization” process requires all mines to process materials

through a recognized permitted mill facility. Inca One has identified mills to acquire

whose owners cannot navigate the permitting process

­ Many “small miners” have been identified and have applied for “formalization”, and

will need to ship their materials to an approved mill, presenting an outstanding

opportunity for Inca One’s shareholders

Page 9: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 9

Strategic Locations for Mill Acquisitions

**Internal Numbers Provided by Ministry of Energy and Mines of Peru**

Region Number of Mines

1. Arequipa 13,7092. Ayacucho 7,9693. Puno 6,1304. Apurimac 5,8465. La Libertad 5,2036. Piura 2,128

6

5

1

2 4

3

Top 6 Regions For Mines Applying for Formalization

­ Toll milling of high grade gold material is quite lucrative.

­ Many sub-standard mills are in place that are in need of upgrading, a task usually best suited to expatriates, and which otherwise represent a low capital investment relative to the upside from the cash flow.

Page 10: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 10

New Government Formalizes & Regulates the

Artisanal Mining Sector

New Mining Laws in Force

Since April 2012

Improves Working

Conditions

Environmental Protection

Increases Government Tax

Revenues.

Reported $500 Million

Increased Demand for

Legally Compliant Processing

A Window of Opportunity

New Mining Policy Presents Opportunity

Page 11: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 11

­ Newly acquired processing plant ­ Current operating capacity is 25 TPD,

­ Upgrades underway to improve processing efficiency and to increase capacity to 50 TPD; can be permitted for up to 350 TPD

­ 620km south of Lima, Peru in the mining intensive region of Chala

­ Provides capacity for immediate cash flow & growth, irrespective of gold prices. 45 acres of land provides ample opportunity for growth

Chala Processing Plant

Page 12: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 12

Use of Proceeds

Lock Box for Ore Purchases for 100 TPD $1,925,000

Plant Upgrades to take Capacity to 100 TPD (Including 2 New Ball Mills) 855,000

Tailings Pond Upgrades 150,000

Connect to National Power Grid 150,000

Drill Water Well on Chala Plant Site 50,000

Heavy Equipment 150,000

Dump Truck 60,000

Pick Up Trucks (3) 60,000

Camp Improvements 50,000

Concrete Work 50,000

Laboratory Upgrade 40,000

Security Fence and Gates 30,000

Truck Scale 50,000

6 Months Working Capital Inca One Peru 350,000

6 Months Working Capital Inca One Canada 480,000

Contingency 250,000

Fees and Commission 300,000

TOTAL (USD) $5,000,000

25TPD 100TPD

Page 13: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 13

Revenue Forecast

25 Tons Per Day 50 Tons Per Day 100 Tons Per Day

Monthly Operating Revenue * US$ 267,500 US$ 535,000 US$ 1,070,000

Monthly Operating Cost ** US$ 91,000 US$ 129,000 US$ 255,000

Operating Monthly Cash Flow US$ 176,500 US$ 406,000 US$ 815,000

Net Cash Flow on an Annual Basis From Operations

US$ 2,118,000 US$ 4,872,000 US$ 9,780,000

*Estimate based on US$1250/oz sale price multiplied by 28.5 days per month** Does not include general and administrative expenses

25 Tons Per Day 50 Tons Per Day 100 Tons Per Day

Monthly Operating Revenue * US$ 226,000 US$ 452,000 US$ 903,000

Monthly Operating Cost ** US$ 91,000 US$ 129,000 US$ 255,000

Operating Monthly Cash Flow US$ 135,000 US$ 323,000 US$ 648,000

Net Cash Flow on an Annual Basis From Operations

US$ 1,620,000 US$ 3,876,000 US$ 7,776,000

Average grade of .5 oz/tonne

Average grade of .8 oz/tonne

Total oz of Gold on an Annual 6,840 13,680 27,360 Basis From Operations

Page 14: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com

Chala Plant Metallurgy

14

­ Mill feed is “easy and clean”

­ Simple crushing, coarse grinding, vat leaching and CIL processing produces ~90-92% recovery and allows flexible scheduling options

­ Any high grade tailings can be stored separately in the tailings pond for later re-processing for Inca One’s account

At present, Inca One will be producing a loaded activated carbon. However, Inca One is currently reviewing the cost-benefit of producing and selling Dore.

Page 15: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 15

Chala Plant Mill Feed

­ Local and regional small miners consistently produce material grading in excess of 1 ounce of gold per tonne

­ Processing terms are expected to provide Inca One a minimum 265/tonne of gross margin per tonne processed at the mill when ore grades average 0.8 ounces per tonne

­ Inca One intends to become the “processor of choice” by offering superior service and conditions which emulate to North American standards

­ Reduce payment to mill feed suppliers from 20 days to within hours with onsite and expanded professional testing procedures of mill feed

­ Offer additional services such as technical (geology) and legal (formalization process) in return for off take contracts

­ Help increase their production through modern mining methods creating increased production

Page 16: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 16

Chala Plant Performance Model

50 tpd 100 tpd 200 tpd 350 tpd $-

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$0.22* $0.44*

$0.87*

$1.53*

Sh

are

Pri

ce

Projection based on publicly disclosed information from a Peruvian gold

milling company:

­ $265 Gross Margin per tonne processed­ $814 Market Cap per tonne milled **

$97M MKT CAP

$55M MKT CAP

$28M MKT CAP

$14M MKT CAP

*Based on existing number of shares outstanding** Extrapolated from September 30th, 2013 year to date results*** These measures may not be comparable with those of other toll milling corporations

Page 17: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 17

Projected Net Income Per Year

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

Based on publicly disclosed information from a Peruvian gold milling company including a gross margin of 265/tonne processed and market cap of $814/tonne milled *

81 TPD 275 TPD 475 TPD 675 TPD 888 TPD 1,000 TPDTOTAL

*Based on existing share structure**These measures may not be comparable with those of other toll milling corporations

Projected Net Income (Before depreciation and interest) Market Cap

(Million)

Page 18: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com 18

We Peru

­ World’s 6th largest producer of gold

­ World’s 2nd largest producer of silver

­ World’s 3rd largest producer of copper and zinc

­ Mining provides 64% of the nation's exports

­ US$53B investment expected over the next decade

­ Only country in South America serious about formalizing small scale mining sector

Ideal Framework

Mining companies may legally continue to work for up to 2 years, while they perform the necessary studies and paperwork to be granted a Small Miners Permit for up to 350 tons per day.

Page 19: Nov, 2011 - M A R C H 2014 -. TSX-V: IO  Disclaimer This presentation includes forward-looking statements which are not historical facts.

TSX-V: IOwww.incaone.com

Contact

Head Office

1125 - 595 Howe Street

Vancouver, British Columbia

Canada, V6C 2T5

Tel: (604) 568-4877

Fax: (604) 569-1604

Peru OfficeDos de Mayo 516 Office 308

Miraflores, Lima 18 - Peru

Tel: (+51) 1 221 9849

Investor RelationsKin Communications

Suite 100-736 Granville St.

Vancouver, British Columbia

Canada V6Z 1G3

Tel: (604) 684-6730

TF: 1-866-684-6730

E: [email protected]


Recommended