Nov, 2011
- M A R C H 2 0 1 4 -
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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.
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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
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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.
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Short Term Objectives
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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
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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
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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%
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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
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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.
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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
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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
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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) $5,000,000
25TPD 100TPD
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Revenue Forecast
25 Tons Per Day 50 Tons Per Day 100 Tons Per Day
Monthly Operating Revenue * US$ 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
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Chala Plant Metallurgy
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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.
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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
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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
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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)
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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.
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