우리나라금융회사의리스크지배구조 현황및개선방안´건호.pdf · 박절차(disciplined process of challenge), 정책혹은전략의채택여부에대한의사결정(decision
Disciplined Cash Management and Portfolio Building at …onthegroundgroup.com/documents/4 - Chris...
Transcript of Disciplined Cash Management and Portfolio Building at …onthegroundgroup.com/documents/4 - Chris...
Disciplined Cash Management and Portfolio Building at the Bottom of the Cycle 1
2TSX-V: LRA NOVEMBER 2015
• Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”,
“anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are
based on the opinions and estimates of management on the date the statements are made, and are subject to a variety of risks and
• uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking
statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements.
• The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in
accordance with applicable securities laws. For a description of material factors that could cause the Company’s actual results to differ
materially from the forward-looking statements, please review the Company’s Management Discussion & Analysis and Financial Statements
filed on www.sedar.com.
• Michael Bennell, Lara’s Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy, is a Qualified Person
as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and
approved the written disclosure of the technical information in this presentation regarding the Company’s projects.
Forward Looking Statements
Return (%)
0%
50%
100%
150%
-50%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Palisade Capital, 2015
1,560 days
Opportunity – Value
TSX-V: LRA NOVEMBER 2015 3
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2011-03-23 2011-10-09 2012-04-26 2012-11-12 2013-05-31 2013-12-17 2014-07-05 2015-01-21 2015-08-09
South American Currency Exchange Rates
BRL-USD BRL-CAD CLP-USD CLP-CAD
4TSX-V: LRA NOVEMBER 2015
South America – Currency
Source: Bloomberg
Devaluing of South American currencies relative to USD and CAD
5TSX-V: LRA NOVEMBER 2015
South America – Decline of Mining
Vale Freeport Belo Sun Amarillo Gold Luna GoldS&P TSX
Global Mining Index
YTD -43.6% -54.4% 41.0% 0.0% -83.6% -29.3%2014 -43.7% -37.9% -43.8% -35.0% -76.1% -21.8%
5 Years -86.4% -77.9% -54.2% -91.3% -98.3% -66.7%
Relative Performance
Source: Investing.com and Google Finance November 2, 2015; Vale and Freeport USD, Belo Sun, Luna Gold and Amarillo Gold CAD
Collapses in share price
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
03-Dec-09 17-Apr-11 29-Aug-12 11-Jan-14 26-May-15
Belo Sun
Amarillo Gold
Luna Gold
0
10
20
30
40
50
60
70
23-Dec-09 07-May-11 18-Sep-12 31-Jan-14 15-Jun-15
Freeport
Vale
6TSX-V: LRA NOVEMBER 2015
Low Odds, High Cost
Costs of discovery have gone up 3 fold- Boston Consulting Group, 2015
Cost ($millions)
0
50
100
150
200
250
Base MetalsEstimated
Weighted average for 2000-2009 = $64 million
Weighted average for1980 -1989 = $23 million
1975 1980 1985 1990 1995 2000 2005 2010
{ {
Population Growth
Consumption Upgrade
Consumption
Complex Consumption New Demand
Urbanization
Copper – Demand Drivers
TSX-V: LRA NOVEMBER 2015 7
2x
Image Source: New York Leadership Center
Politics
Environment
Dependence
Cost Declining Grade
Timeline
Copper – Supply Challenges
TSX-V: LRA NOVEMBER 2015 8
$ 15%
14 Million Ton ShortfallThat is just under 14x the annual production of Escondida
(The largest copper mine in the world)
2017-2021
2015-2016
Time
Price
AnalystConsensus:$2.80/lb
$3.50/lbto$4.00/lb
Source:FirstQuantum,2015
Floorat$2.002015-2016
Copper– MutualAgreementonPriceDirection
TSX-V: LRA NOVEMBER 2015 9
Affordable Geological potential
Minimal competition for
mineral resources
✔
South America – Opportunity
TSX-V: LRA NOVEMBER 2015 10
Image Source: MedicCast
Source: Brent Cook – Exploration Insights
Relativ
eVa
lue
12
10
8
6
4
2
0
Concept Pre-discovery Discovery Feasibility Development Startup Deplete
SpeculatorsLeave
OrphanPeriod
InstitutionalInvestment
SoldtoaMiner
FullValue
The “Sweet Spot” – Maximum Value Creation
11TSX-V: LRA NOVEMBER 2015
Property Raise Money Explore
Raise Money Explore Raise Money
$TSX
$$TSX
$$$TSX
Repeat until discovery or bankruptcy
Classic Exploration – Raising and Drilling
TSX-V: LRA NOVEMBER 2015 12
Properties Raise Money Identify Targets
Partner Partner Funds Add more Properties
$TSX
70% 30%
Partner until discovery
$$
$
$$
$
Risk Adverse Exploration – Prospect Generator Model
TSX-V: LRA NOVEMBER 2015 13
14
Joint Ventures, Alliances and Royalties
15
Country Partner Project Commodity Lara % Cash $m Expl $m Royalties
Brazil Codelco Liberdade Copper 25% 2% NSR
Brazil Tessarema Curionopolis Copper-Au Royalty 2.00 2 - 5% NSR
Brazil Aguia Sergipe Potash Shares 0.150
Brazil Paradigm Canindé Graphite 20% 0.70 4.50 2% NSR
Brazil Vertical Curionopolis Iron Royalty 0.80 $0.75 - $1.5/t
Peru Aruntani Grace Gold Royalty 2.00 0.50 0.75-1% NSR
Peru Redzone Lara Copper 45% 1% NSR
Peru Hochschild Corina Gold Royalty 4.15 2.00 2% NSR
Peru Kiwanda Picha Copper 30% 1%-2% NSR
Chile Kiwanda Bahia Inglesa Phosphate Shares 0.77 5.00 2% NSR
Colombia Kiwanda Carbhid Coal Shares 2% NSR
Colombia Kiwanda Pelaya Coal Shares 2% NSR
Totals 10.67 12.00
TSX-V: LRA NOVEMBER 2015
16TSX-V: LRA NOVEMBER 2015
Liberdade
• 3licensesintheCarajás district,closetooperating ironandcoppermines
• Tessarema hascompleted theStage1earn-into49%ownership
• Tessarema intends tocompleteearn-into100%
Curionopolis Copper
17TSX-V: LRA NOVEMBER 2015
Tessarema Earn-In (Cumulative % Ownership) Payments to Lara Work Required
49% $US700,000 2,000 m of drilling, Final Exploration Report
60% US$500,000 and 5% NSR on pilot production Secure Pilot License
100% US$750,000 and additional 2% NSR on commercial production
Commercial production at project (min rate of 500 tpd)
Taking advantage of the bottom of the cycle:
Lara Exploration Ltd. signed option to acquire the previously mined Azul Tin Project in Brazil from Best Metais e Soldas S.A.
Along with a series of cash payments, Lara will pay a 2% NSR to Best Metais e SoldasS.A. on production from the mine or can buy back the royalty for US$3 million
New Opportunities – Azul Tin Project, Brazil
DueDate US$
UponSigning 7,500
ByDecember 31,2015 7,500
ByDecember 31,2016 40,000
ByDecember 31,2017 200,000
ByDecember 31,2018 500,000
TSX-V: LRA NOVEMBER 2015 18
Be fearful when others are greedy, and greedy when others are fearful
- Warren Buffett
19
Contact
20
For more information please contact:
Christopher MacIntyreVice President, Corporate DevelopmentSuite 414, 100 Richmond Street WestToronto, Ontario, Canada M5H 3K6Phone: +1 416-703-0010Fax: +1 416-964-0823
Or visit us online at:www.laraexploration.com
TSX-V: LRA NOVEMBER 2015