State of the Market: Latin America Presented by: Glen Jones mine latin america, Toronto November 15 th 2013 marketing@intierrarmg.com
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Outline Based On SOTM Latin America, July 2013, Q2 Results Drilling activity and exploration Resources Production Financings Development Mine Revenue
Why LatAm is Important Region covers 1/6 of the earth surface Produced 418 Mt of iron ore (22% of global) Produced 529 Moz gold (20% of global) Produced 7.6 Mt copper (46% world total) Produced over 375 Moz silver (48% world total)
6-15 Most Valuable Metal Mines MINE COUNTRY TYPE OWNER VALUE (%) 1 Hamersley Australia Fe Rio Tinto Group 2.40 2.40 2 N5, Carajas Brazil Fe Vale 2.17 4.58 3 Mount Newman Australia Fe BHP Billiton Group 1.18 5.76 4 Robe River Australia Fe Consortium 1 1.14 6.90 5 Yandi Australia Fe BHP Billiton Group 1.06 7.95 6 Chichester Range Australia Fe FMG 0.95 8.90 7 Area C Australia Fe BHP Billiton Group 0.94 9.84 8 Minas Centrais Brazil Fe Vale 0.81 10.66 9 Itabira Brazil Fe Vale 0.79 11.45 10 Mariana Brazil Fe Vale 0.77 12.22 11 Sishen South Africa Fe Anglo American 0.77 12.99 12 Escondida Chile Cu Consortium 2 0.68 13.67 13 Grasberg/Ertsberg Indonesia Cu FCX 0.63 14.30 14 Hope Downs Australia Fe Consortium 3 0.63 14.92 15 Minas Itabirito Brazil Fe Vale 0.60 15.53 1. Rio Tinto Group, Mitsui, Nippon Steel, Sumitomo Met Ind 2. BHP Billiton Group, Rio Tinto Group, Mitsubishi, JX Nippon Mining, Mitsubishi Materials 3. Hancock Prospecting, Rio Tinto Group Source: Raw Materials Group
8-15 Largest Open Pit Mines Surface mine Country Owners Metal Ore (Mt) 1 Codelco Norte Chile Codelco Cu 130.0 2 Yanacocha Peru Newmont Corp Au 121.5 3 Morenci SX-EW US Freeport McMoRan Cu 109.8 4 Hamersley Australia Rio Tinto Group Fe 73.1 5 Toquepala SX-EW Peru Southern Copper Cu 70.9 6 Los Pelambres Chile Consortium 1 Cu 64.5 7 Robe River Australia Consortium 2 Fe 57.5 8 Lomas Bayas Chile Glencore Cu 57.3 9 Gusevogorskoye Russia Evraz Group Fe 53.5 10 Mount Newman Australia BHP Billiton Group Fe 53.2 11 Bingham Canyon US Rio Tinto Group Cu 53.1 12 N5, Carajas Brazil Vale Fe 50.8 13 Chichester Range Australia FMG Fe 47.8 14 Collahuasi Chile Consortium 3 Cu 47.8 15 Buenavista del Cobre Mexico Grupo Mexico Cu 47.4 1 Antofagasta, JX Holdings, Marubeni, Mitsui & Co, Mitsubishi Corp 2 Rio Tinto Group, Mitsui, Nippon Steel, Sumitomo 3 Anglo American, Glencore, Mitsui & Co, JX Holdings
Largest Underground Mines MINE COUNTRY MAIN CONTROLLED ORE METAL BY (Mt) 1 El Teniente Chile Cu Codelco 47.0 2 Kiruna Sweden Fe LKAB 26.8 3 Zhezkazgan Kazakhstan Cu Kazakhmys plc 22.9 4 Malmberget Sweden Fe LKAB 16.2 5 Grasberg Indonesia Cu FCX 16.0 6 Impala South Africa Pt Implats 14.1 7 Palabora South Africa Cu Rio Tinto Group 11.8 8 Rudna* Poland Cu KGHM 11.6 9 P-S Complex# Poland Cu KGHM 10.6 10 Olympic Dam Australia Cu BHP Billiton Group 10.3 * KGHM s three mines (Rudna, Polkowice and Lubin) treated as one operation # Polkowice-Sieroszowice Source: Raw Materials Data, 2012
Global Drilling Activity
Latin America Drilling Activity
2012 Drilling Activity
Gold Drilling Activity: Projects GOLD 2013 (Jan-Oct) 2012 2011 Mexico 101 159 151 Argentina 8 62 69 Brazil 42 58 51 Colombia 31 51 43 Peru 43 47 34 Chile 23 29 26 Nicaragua 8 16 15 Guyana 3 7 14 Dominican Republic 6 6 8 Panama 3 6 12 Uruguay 5 4 Bolivia 4 Ecuador 6 4 2 Guatemala 3 5 Haiti 3 1 French Guiana 2 Jamaica 1 Paraguay 1 Suriname 1 1 Total 274 465 436
Copper Drilling Activity: Projects COPPER 2013 (Jan-Oct) 2012 2011 Mexico 33 45 40 Colombia 7 21 18 Chile 10 15 24 Peru 13 14 23 Argentina 2 13 10 Brazil 10 7 4 Panama 2 7 7 Dominican Republic 6 6 6 Jamaica 4 Haiti 3 Nicaragua 3 Bolivia 2 Ecuador 6 2 Guyana 1 Uruguay 2 Total 89 143 134
Silver Drilling Activity: Projects Country 2013 (Jan-Oct) 2012 2011 Mexico 99 171 162 Argentina 11 71 70 Peru 46 47 35 Colombia 27 28 26 Nicaragua 6 15 6 Brazil 9 10 3 Chile 16 9 18 Panama 1 4 6 Dominican Republic 4 3 6 Guatemala 3 4 Haiti 3 1 Bolivia 2 Ecuador 4 1 Guyana Uruguay 2 Total 223 367 339
Additional Gold Resources Country Added in 2012 Added in 2011 Chile 54,437,624 20,196,373 Colombia 35,432,895 22,705,787 Mexico 24,816,618 9,981,594 Brazil 14,004,068 6,757,137 Peru 12,598,939 9,562,135 Panama 9,462,533 0 Argentina 6,613,524 8,146,096 Guyana 4,520,294 4,780,754 Nicaragua 2,587,939 2,320,989 Ecuador 1,348,504 2,094,132 Suriname 1,122,460 0 Venezuela 98,682 0 Guatemala 93,148 173 Dominican Republic 34,946 0 Bolivia 0 1,967,626 El Salvador 0 2,684 French Guiana 0 1,887,892 Sub-Total Latin America (27%) 167,172,174 (15%) 90,403,372 Rest of world 450,550,904 508,750,411 *Contained in situ ounces from new or exis3ng deposits, excluding opera3ng mines
Additional Copper Resources COPPER Added in 2012 Added in 2011 Peru 36,541,963 11,302,709 Chile 35,141,134 105,450,722 Panama 23,150,444 0 Argen3na 10,477,346 6,766,700 Mexico 2,780,748 4,744,186 Brazil 2,491,303 414,200 Colombia 412,976 190,394 Nicaragua 49,211 0 Ecuador 23,350 0 Guyana 9,584 41,007 Dominican Republic 7,032 0 Bolivia 0 102,101 Sub- Total La9n America (58%) 111,085,091 (60%) 129,012,019 Rest of world 78,969,205 85,405,634 *Contained in situ tonnes from new or exis3ng deposits, excluding opera3ng mines
2012 Additional Silver Resources SILVER Added in 2012 Added in 2011 Mexico 5,452,082,104 1,305,800,943 Peru 392,448,290 437,830,058 Argentina 370,107,548 343,768,525 Panama 291,253,704 0 Chile 210,534,026 131,365,851 Colombia 123,710,456 50,725,674 Guatemala 88,256,138 0 Bolivia 39,403,962 71,639,127 Nicaragua 13,556,757 4,792,124 Ecuador 12,445,129 20,917,412 Brazil 3,786,772 4,757,164 Dominican Republic 755,852 0 El Salvador 0 98,271 Sub-Total Latin America (70%) 6,998,340,738 (30%) 2,371,695,149 Rest of world 2,279,889,009 5,434,809,308 *Contained in situ ounces from new or exis3ng deposits, excluding opera3ng mines
Additional Iron Ore Resources IRON ORE Added in 2012 Added in 2011 Argentina 0 396,300 Brazil 5,675,530 11,192,335 Chile 0 0 Peru 0 0 Sub-Total Latin America (15%) 5,675,530 (43%) 11,588,635 Rest of world 31,939,276 15,657,997 *Contained in situ tonnes from new or exis3ng deposits, excluding opera3ng mines
Additional Lead Resources LEAD Added in 2012 Added in 2011 Mexico 3,137,560 2,444,912 Peru 285,577 1,752,646 Bolivia 184,371 385,725 Guatemala 89,415 0 Brazil 60,203 0 Chile 44,473 0 Argentina 35,900 0 Ecuador 0 9,098 Sub-Total Latin America (26%) 3,837,499 (42%) 4,592,381 Rest of world 10,817,520 6,248,418 *Contained in situ tonnes from new or exis3ng deposits, excluding opera3ng mines
Additional Zinc Resources ZINC Added in 2012 Added in 2011 Mexico 6,753,147 4,885,811 Peru 1,542,110 1,687,114 Guatemala 526,707 0 Bolivia 262,756 277,215 Brazil 256,434 0 Chile 99,974 13,979 Colombia 73,966 48,567 Ecuador 0 205,061 Sub-Total Latin America (18%) 9,515,094 (25%) 7,117,747 Rest of world 42,979,143 21,326,462 *Contained in situ tonnes from new or exis3ng deposits, excluding opera3ng mines
Exploration Funding 120,000 100,000 102,377 94,025 Capital Raised (US $ 000) 80,000 60,000 40,000 48,972 44,888 42,237 32,441 20,000 18,821 12,381 9,352 9,139 0 1,961 1,435 477 99 Data for two years to end August 2013, for fundings over US$2M
Data for two years to end August 2013, for fundings over US$2M Exploration Funding
Mine Output
Gold Mines
Mine Output
Copper Mines
Mine Output
Silver Mines
Mine Output
Iron Ore Mines
Mine Output
Iron Ore Mines
Mine Output
Iron Ore Mines
Development Funding
Development Funding
Development Funding
Mexico Development Projects
Central America Development Projects
South America Development Projects
2012 Mine Revenue By Commodity
2012 Mine Revenue By Country
2012 Mine Revenue By Primary Listing
Mined Revenue Locations
Mined Revenue Locations
Mined Revenue location *Projects over $4B were labelled
What s Ahead Economic growth slowing Heavily dependent on China for exports Mexico s new royalty Increasing local opposition to mining Appear to be moving off bottom
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