Building companies to unlock superior value

Transcription

1 Building companies to unlock superior value Corporate Presentation 2019

2 FM FM FM FM WHAT WE DO Identifies undervalued assets and companies adds capital, talent, strategy and market know-how to build and unlock significant and sustainable shareholder value. THE TEAM A group of well-known, highly experienced mining and capital market professionals with established track records of significant value creation and success. OBJECTIVE Achieve superior performance for shareholders through advancement and development of projects. UNIQUE AND PROVEN MODEL Provide access to BIG company experience management, highly talented technical services team, respected, world class advisory board and infrastructure not usually available to small companies to realize and accelerate value creation and growth. AT A GLANCE FM RISK AND MITIGATION THROUGH ACTIVE MANAGEMENT Active management approach to mitigate risk through hands-on involvement, technical experts, and a wellconnected international advisory board. 2

3 SIGNIFICANT ACHIEVEMENTS Over the last 10 years, in the mining space we have 1 Discovered 20+ Million ounces of gold worth more than $25 billion in situ today. 4 Produced over 3 Million tonnes of iron ore concentrate. 2 Produced over 1 Million ounces of gold from mines that were built or re-started by our team. 5 Discovered over 1.5 Billion tonnes of Potash. 3 Discovered 3+ Billion tonnes of high quality iron ore. 6 Discovered significant resources in silver, zinc, nickel, phosphate, vanadium, tungsten, lithium, and other commodities 3

4 GLOBAL FOOTPRINT QMX Gold Earth Renew Halo Corporate Office Toronto Emerita Corporate Headquarters African Gold Group Black Iron Euro Sun Mining Fura Gems Brazil Potash Afrique Gold DT Plantations Belo Sun Fura Gems Corporate Offices Corporate Office Current F&M Companies Irati Trigon Metals 4

5 SUPPORTED BY WORLD-CLASS EXPERTISE &EXPERIENCE Capital Markets, Marketing & Communications Technical Services: Engineers & Geologists Fully Integrated Team: Built on technical and operational expertise coupled with accomplished capital market professionals Over 200 Employees and Consultants Legal, Accounting & Back Office Support Each company has dedicated board and senior management Improves junior company s chance of success by providing access to in-house resources they individually could not access on their own 5

6 WORLD CLASS TEAM OF EXPERTS Stan Bharti Matt Simpson David Argyle Peter Tagliamonte Mark Eaton David Gower Scott Moore Jose Fanton Helio Diniz Andrew Cheatle Founder and Executive Chairman of Forbes & Manhattan. A mining engineer with over 30 years experience building, operating and financing mining projects. Has amassed over $3 billion worth of investment capital for the junior resources companies he has worked with and for their shareholders. Formerly served as Rio Tinto s Iron Ore Mine General Manager in Canada accountable for 650 people to safely move over 75MTpa. Also has extensive mine design and construction experience from work at Hatch. Started his career with BHP in Australia and went on to build, reopen and operate fertilizer projects in China, Christmas Island and now Brazil over the past 30 years. Over 25 years of experience as a professional mining engineer. He is the former CEO of Sulliden Gold Corp and Desert Sun Mining which were both profitably sold under his leadership to larger companies. An investment professional with well over 20 years of experience financing mining projects including his current role as Chairman of Belo Sun. Former Managing Director Mining Sales for CIBC. Professional geologist and the former Global Head of Nickel Exploration for Falconbridge. Numerous discoveries were made under Mr. Gower s leadership with a particular focus on Brazil. Over 25 years of experience in the resource and durable goods sectors. Former President and CEO of Dacha Strategic Metals, and presently the Chairman of Copper One and Troilus Gold. Over 30 years of experience in mineral exploration with Xstrata, Falconbridge, Vale, and Phelps Dodge including discoveries of significant copper-gold deposits in Para and Mato Grosso States. 30 years of experience including previous Head of Xstrata Brasil where he was a primary discoverer of the world class Araguaia Nickel Deposit and also assembled impressive property portfolios in the prolific Carajas Mineral District. Over 25 years of experience as a professional geologist and mining executive, former President and CEO of Unigold Inc., Executive Director of PDAC and is currently a Non-Executive Director of Condor Gold plc. 6

7 EXPANSIVE NETWORK Wide global reach and experience means an extensive contact list of professionals, technical experts, political leaders and sources of capital Continuous access to deal flow ensures that new investment opportunities are presented regularly F&M values its relationships and constantly seeks ventures that can benefit its business partners, both old and new, across its numerous operational jurisdictions 7

8 SIGNIFICANT OUTPERFORMANCE & VALUE CREATION Relative Performance ( YTD) 1,000 Forbes & Manhattan Index MSCI World Metals & Mining Index S&P / TSX Index 10 Relative Performance (Base = 100) Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 1 Desert Sun Mining acquired by Yamana Gold for $750mm 6 Avion Gold acquired by Endeavour Mining for $400mm 2 Global financial crisis leads to crash in global markets including commodities and equities 7 Sulliden Gold merges with Rio Alto Mining, $464mm value on closing 3 Eurozone members and IMF agree to bailout package to rescue Greece 8 Allana Potash sold to Isreali Chemicals Ltd. for $137mm 4 Consolidated Thompson acquired by Cliffs Natural Resources for $4.9bn 9 Belo Sun Mining files positive feasibility study; receives strategic investments from Agnico Eagle and announces $75mm bought deal 5 Gold price reaches high of ~$1,900/oz; slowdown in China s economic growth and start of commodity bear market 10 F&M acquires Euro Sun Mining and African Gold Group; QMX Gold resumes exploration and announces new gold discoveries in Quebec Source: Bloomberg; as at July 25, 2017 Notes: Forbes & Manhattan Index is a market capitalization weighted index tracking the performance of publicly listed Forbes & Manhattan companies from initial involvement up until investment disposition. 8

9 INTERNATIONAL ADVISORY BOARD Larry King American icon; Former Host of CNN s Larry King Live General Lewis MacKenzie, Canadian Army (Ret.) Canadian Forces for 35 years; led the UN peacekeeping mission in Sarajevo Hon. Pierre Pettigrew, PC, Canada Served as Canadian Federal Minister of Foreign Affairs and International Trade Jim Rogers Author, financial commentator and successful international investor Bernard Wilson Corporate Finance and Investment Banking advisor with substantial experience in restructurings Tim Henderson Former Executive Director at Glencore; responsible for Glencore s copper operations worldwide Michael Kuan Founder of Kuan Capital. Invested and played key roles in some of China s most successful ventures 9

10 KEY DEALS Desert Sun Mining Mkt Cap ~CAD 150 million Acquired a controlling position in Desert Sun in Developed Jacobina mine to near production and sold 4 years later to Yamana Gold for $750m. Consolidated Thompson Sold for USD $4.9 billion Market Cap when F&M got involved was $1m. Raised US$1.3b to build mine and started production within 5 years prior to selling to Cliff s for US$4.9b. Avion Gold Sold for USD $400 million Originally acquired distressed assets in 2008 for $0.20 in the dollar. Turned around operation and sold to Endeavour Mining in 2012 for $400m (~89c/share). Sulliden Gold Rio Alto Merger - $464 million value on closing Acquired in 2009 and resolved long-standing title disputes. Brought to a construction ready state prior to merging with Rio Alto and then Tahoe Resources who brought the mine into production. Sold 2006 Sold 2011 Sold 2012 Sold 2014 Belo Sun Mining Brazil Potash Euro Sun Mining Fura Gems Mkt Cap ~CAD 150 million Mkt Cap ~US 460 million Mkt Cap ~CAD 50 million Mkt Cap ~CAD 60 million Exploration & development of the 6 Moz Volta Grande gold project in Brazil. World-class 400 km long Amazon potash basin with similar scale, geology and age as the Saskatchewan basin in Canada. Development-stage mining company that owns the Rovina Valley Project, located in west-central Romania. Their property hosts the second largest gold deposit in Europe. Mining and marketing company of gemstones with its initial focus in mining rubies from Mozambique and emeralds from Colombia. Ongoing Ongoing Ongoing Ongoing 10

11 INVESTMENT CRITERIA Case study: Belo Sun Acquired significant position in 2009 More than doubled mineral resources to date 5 million ounces of M&I resources currently Increased land position by over 1,100 km 2 Total land position of 1,305 km 2 March 2015 Positive Feasibility Study completed Currently pursuing Construction License Excellent Development Potential and/or Near Term Cash Flow Generation World class size and/or grade is a key product differentiator in an over-crowded sector Manageable Geopolitical Risk F&M recognizes that the best opportunities for value and growth are often in the emerging markets Develop and supplement strong local relationships with our influential international advisory board 11

12 INVESTMENT CRITERIA Case study: Consolidated Thompson Identified, developed, and operated 8 million tonnes per year iron ore mine Secured strategic, significant off-take financing from WISCO Sold for $4.9 billion a few months after commencement of production generating significant returns for shareholders Compelling Valuation & Structure Target 5-10x upside from initial investment Projects often acquired at discount due to technical, geopolitical or other risks F&M has the ability to overcome these issues and exploit the asset through its operational edge Deals structured to optimize capital flows and reduce risk, through joint venture and earn-in structures Optimal Structuring and Valuation Discipline has Generated High Returns for F&M Partnerships are created that align interests, maximize cash that is put into the ground and minimize upfront cash payments to vendors 12

13 INVESTMENT CRITERIA Case Study: Avion Gold Purchased Tabakoto mine and re-started it after identifying mining inefficiencies and reengineering Massively expanded resource base through acquisitions and successful exploration in Burkina Faso Operated & executed successfully through the coup delivering record months Sold to Endeavour Gold in August 2012 for $400M; significant returns generated for shareholders Well Proven Mining Engineering Process to Unlocking Value Ability to Transform Assets F&M provides management, capital and direction to move resource assets up the value chain Resource delineation and expansion Feasibility study Permitting/environmental Financing Construction Operation and expansion At each stage the project becomes less risky and more valuable Success is not contingent on rising commodity prices 13

14 GROUP AT A GLANCE BASE AND PRECIOUS METALS BULK / SPECIALTY METALS AGRICULTURE ENERGY FINANCIAL & OTHER TECHNOLOGY GEMSTONES 14

15 LOCATION 65 Queen Street West, Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 CONTACT INFORMATION +1 (416)