Forward Looking Information

Transcription

1 TSX: NASDAQ: MPV MDM

2 Forward Looking Information Caution Regarding Forward Looking Information Certain information included in this presentation constitutes forward-looking information within the meaning of Canadian and United States securities laws. Forward-looking information relates to management's future outlook and anticipated events or results, and can include statements or information regarding plans for exploration, development, mining and production activities at the Company's mineral property, sales estimates, expected sales, and expected operating costs. Forward-looking information included in this presentation includes the estimated mine life and other plans, timelines and targets for exploration, permitting, development, mining and production activities at the Gahcho Kué diamond mine, estimated reserves and resources at the Gahcho Kué diamond mine, the current production forecast and capital and operating cost estimates for the Gahcho Kué diamond mine. Forward-looking information is based on certain factors and assumptions, including, among other things, the current mine plan for the Gahcho Kué diamond mine; construction and exploration activities at the Company's mineral property; currency exchange rates; and world economic conditions. While the Company considers these assumptions to be reasonable based on the information currently available to it, they may prove to be incorrect. Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what the Company currently expects. These factors include, among other things, the uncertain nature of mine development activities, including risks associated with logistical, construction and mining operations, risks associated with joint venture operations, risks associated with the remote location of and harsh climate at the Company's mineral property, risks resulting from the global financial crisis, risks associated with regulatory requirements, the risk of fluctuations in diamond prices and changes in world economic conditions, the risk of fluctuations in the Canadian/US dollar exchange rate, and cash flow and liquidity risks. Please see the Company's most recently filed Management's Discussion and Analysis, as well as the Company's current Annual Information Form, both available at and respectively, for a discussion of these and other risks and uncertainties involved in the Company's operations. Actual results may vary from the forward-looking information. Readers are cautioned not to place undue importance on forward-looking information, which speaks only as of the date of this presentation, and should not rely upon this information as of any other date. Due to assumptions, risks and uncertainties, including the assumptions, risks and uncertainties identified above, actual events may differ materially from current expectations. While the Company may elect to, it is under no obligation and does not undertake to update or revise any forward-looking information, whether as a result of new information, future events or otherwise at any particular time, except as required by law. This presentation has been prepared under the supervision of Carl Verley, P. Geo., a Qualified Person under National Instrument July

3 Mountain Province - Best in Class World s largest and richest new diamond mine Best in class - highest margin new diamond mine Projected highest margin diamond mine in production Potential to be a Tier 1 asset +20 year LOM, +$20 Billion in situ value Fully funded to production July

4 Highest Margin New Diamond Mine Name Gahcho Kué DeB/MPV Canada Bunder Rio Tinto India Grib Lukoil Russia Ghaghoo Gem Botswana Reserve (Mt) Grade (cpt) Total Carats (MMct) Diamond Value ($/ct) Key value driver: GRADE With fully diluted mining grade of 1.57 c/t, Gahcho Kué is: 2X the grade of next richest >2.5x the operating margin of next best July Revenue per tonne ($/t) Operating Cost ($/t) Operating Margin ($/t) Production (MMct/year)

5 Projected Highest Margin Mine 80% Operating Margin Red Dog Zinc 72% Escondida Copper 66% Freeport s Grasberg 54% *Macquarie Research June 2015 July

6 Markets TSX: MPV NASDAQ: MDM Capital Structure Market cap: ~$820M Shares outstanding: 158.9M Fully diluted: M Cash: ~$98M July

7 Joint Venture with De Beers MPV 49% / De Beers 51% JV Board - 2 Representatives Each All material decisions by Consensus Effectively 50/50 JV Each market own share of diamonds De Beers Operator: Performance Obligations July

8 Gahcho Kué Kimberlite Cluster 61M carat open-pit resource to +350 meters July

9 Reserve Statement Pipe Category Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 Probable Tuzo Probable Hearne Probable Total Probable Source: JDS Mining, March 2014 July

10 Independent Diamond Valuations Pipe Actual* Model** Model Esc*** Tuzo Hearne Total $182 $ $ *WWW International Diamonds Consultants, August 2014 **WWW, February 2014 ***Model price escalated by real 1.5% over life of mine (12 years) July

11 Gahcho Kué Diamonds July

12 2014 Feasibility Update IRR 32.6% Capital (Jan 14) (49%) US$346M Contingency US$33M Working capital US$36M Sust. Cap LOM US$41M Operating cost US$65/tonne LOM 12 years LOM Production 53.4 million carats Revenue US$150/carat Source: JDS Mining/Hatch, March 2014 July

13 Diamond Price Gearing Value IRR NPV (49%) $150/carat 32.6% $540M $174/carat 43% $900M $200/carat 62.5% $1.67M Current market cap ~$650M July

14 Sensitivity Analysis July

15 Potential Cash Flow (US$) Revenue Cost Margin Production Cash Flow MPV 49% ~ $182 per carat ~ $42 per carat ~ $140 per carat ~ 4.5M carats/year ~ $630M/year ~ $310M/year Per Share ~ $2.00 July

16 Free Cash Flow July

17 Capital Program Capital (49%) 2015 $226.6M 2016 $120M Total $346.6M Commissioning opex $41M Working capital $14M Total C$401.6M Total US$325.3M Project debt US$370M Cost overrun facility US$75M Total US$445M July

18 Development Schedule Permits approved October 2013 Construction started December 2013 Current status ~64% complete June 2015 End major construction End 2015 Target for plant commissioning Target for start of production H Q July

19 Construction at Gahcho Kué July

20 Construction Diamond Plant July

21 Pre-Stripping 5034 North Lobe July

22 Phase 2 Inferred Resources Pipe Category Tonnes (Mt) Grade (cpt) Carats (Mct) 5034 Inferred Tuzo Inferred Hearne Inferred Total Inferred Further indicated resource of 1.1M carats Mine life potential from 12 to 17 years July

23 Phase 3: Tuzo Deep July

24 Phase 3 Resource Potential Phase 1 Reserve Phase 2 Resource Phase 3 Potential Depth (meters) Volume (tonnes) Volume (carats) Surface to M 20.6M 350 to M 14.6M 560 to 750 ~7M ~12M 2014 Tuzo Deep drill program completed Kimberlite intersected to 740 meters Target for further delineation Mine life potential from 17 to 20 years July

25 Phase 3 Mine Potential July

26 Phase 4: Tesla & 5034/Hearne Deep Mine life potential: + 20 years July

27 Phase 5 Exploration Potential July

28 Path to Tier 1 Asset Phase Carats LOM Value Est. Phase 1: Reserve 55M 12 years $9.4B Phase 2: Resource 18.4M 5 years $3.2B Phase 3: Tuzo Deep ~12M ~3 years ~$2B Phase 4: Tesla & Other??? Phase 5: New Targets??? Vision: +20 years LOM, +$20B in-situ Value July

29 Global Diamond Supply & Demand July

30 Falling Diamond Supply July

31 New Diamond Mines Source: Rio Tinto July

32 Diamond Demand July

33 Diamond Engagement Ring Demand July

34 Diamond Engagement Ring Demand July

35 Corporate Information Head Office 161 Bay Street Suite 2315 Toronto, ON M5J 2S1 Canada Tel Fax TSX: MPV NASDAQ: MDM July