Transcript Slide 1

S E C U R I T I E S
Current Trends In Mining Finance
April 29, 2013
1
S E C U R I T I E S
Extensive Experience in Mining & Metals
2
S E C U R I T I E S
The Leading US Franchise in Mining & Metals
C$10.7 million
$8.7 million
C$20.0 million
$11.5 million
$22.3 million
$44.0 million
$20.0 million
C$15.0 million
Financial Advisor
Sale to
Agnico Eagle
Pending
Financial Advisor
Rights Offering
Financial Advisor
Reverse Stock Split
January 2013
Co-Manager
Bought Deal
(Flow-Through)
January 2013
Lead Bookrunner
Follow-on Equity
Offering
December 2012
Lead Bookrunner
Follow-on Equity
Offering
November 2012
Lead Bookrunner
Initial Public
Offering
July 2012
Sole Bookrunner
Follow-on Equity
Offering
June 2012
Co-Manager
Bought Deal
(Flow-Through)
June 2012
January 2013
$650.0 million
C$80.5 million
$332.5 million
C$27.4 million
C$15.0 million
C$629.1 million
$47.3 million
C$30.0 million
Senior Co-Manager
10% Senior Notes
Offering
May 2012
Co-Manager
Follow-on Equity
Offering
May 2013
Co-Manager
Follow-On Equity
Offering
February 2012
Financial Advisor
Private Placement
(Flow-Through)
December 2011
Financial Advisor
Advisory Services
Special Committee
October 2011
Co-Manager
Bought Deal
(Flow-Through)
October 2011
Financial Advisor
Merger with
Golden Minerals
September 2011
Joint Bookrunner
Follow-on Equity
Offering
July 2011
Financial Advisor
Strategic Placement
$510.0 million
$200.0 million
C$115.0 million
C$17.3 million
$180.0 million
$275.0 million
$230.0 million
C$40.3 million
C$12.0 million
Senior Co-Manager
Follow-on Equity
Offering
June 2011
Co-Manager
9.25% Senior Notes
Offering
April 2011
US Placement Agent
Follow-on Unit
Offering
April 2011
Lead Bookrunner
Follow-on Equity
Offering
March 2011
Co-Manager
Follow-on Equity
Offering
March 2011
Co-Manager
Senior
Notes Offering
March 2011
Co-Manager
Convertible
Notes Offering
March 2011
Lead Bookrunner
Follow-on Equity
Offering
March 2011
Financial Advisor
Strategic Placement
$112.1 million
$675.0 million
C$151.5 million
$10.1 million
C$283.0 million
C$37.9 million
$46.0 million
C$40.5 million
C$28.8 million
Lead Bookrunner
Follow-on Equity
Offering
February 2011
Senior Co-Manager
Follow-on Equity
Offering
February 2011
Co-Manager
Bought Deal
US Placement Agent
Initial Public
Offering
December 2010
US Placement Agent
Initial Public
Offering
November 2010
Financial Advisor
Sale to
Ranger Energy
September 2010
US Placement Agent
Bought Deal
Financial Advisor
Bought Deal
December 2010
Sole Financial Advisor
Sale of Noche
Buena Royalty
December 2010
September 2010
July 2010
$393.8 million
C$283.5 million
C$51.8 million
$1.2 billion
$240.0 million
C$10.0 million
$422.9 million
$41.7 million
$65.8 million
Co-Manager
Initial Public
Offering
July 2010
Co-Manager
Bought Deal
May 2010
US Placement Agent
Initial Public
Offering
April 2010
Co-Manager
Follow-on Equity
Offering
April 2010
Co-Manager
Initial Public
Offering
April 2010
US Placement Agent
Follow-on Equity
Offering
April 2010
Co-Manager
Follow-on Equity
Offering
March 2010
Lead Bookrunner
Initial Public
Offering
March 2010
Lead Bookrunner
Follow-on Equity
Offering
February 2010
$114.4 million
C$6.0 million
C$72.6 million
$15.1 million
C$14.4 million
$23.0 million
$17.0 million
$22.8 million
$4.0 million
Senior Co-Manager
Follow-on Equity
Offering
February 2010
Financial Advisor
Strategic Placement
Sole Placement Agent
PIPE
January 2010
Bookrunner
Follow-on Equity
Offering
January 2010
November 2009
US Placement Agent
Equity Private
Placement
November 2009
Sole Bookrunner
Follow-on Equity
Offering
October 2009
Joint Bookrunner
Follow-on Unit
Offering
October 2009
Lead Bookrunner
Follow-on Equity
Offering
September 2009
Sole Financial Advisor
Gold Stream
Financing
September 2009
C$80.0 million
$51.0 million
C$57.6 million
C$20.0 million
$50.3 million
C$15.5 million
C$9.0 million
$99.4 million
C$3.0 million
Sole Financial Advisor
Acquisition of
Klondex Mines
Withdrawn
Senior Co-Manager
Follow-on Equity
Offering
August 2009
US Placement Agent
Bought Deal
US Placement Agent
Equity Private
Placement
June 2009
Joint Bookrunner
Follow-on Equity
Offering
May 2009
US Placement Agent
Follow-on Equity
Offering
May 2009
Sole Financial Advisor
Strategic Placement
Senior Co-Manager
Follow-on Equity
Offering
February 2009
US Placement Agent
Private Placement
of Units
December 2008
June 2009
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March 2009
June 2011
February 2011
S E C U R I T I E S
A Leader in Mining & Metals Marketed Equity Deals
Mining & Metals Bookrunner League Table(a)
Junior Mining Bookrunner League Table(b)
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14
14
12
13
11
13
10
7
12
6
11
11
4
10
4
9
4
8
Source:
Note:
(a)
(b)
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Cowen Equity Capital Markets and Dealogic.
Equity deals above represent Cowen Securities transactions.
Includes all mining & metals public follow-ons >$15M in the US and Canada since May 2009. Excludes bought deals and private placements.
Includes precious metals public follow-ons >$15M in the US and Canada since May 2009. Excludes bought deals, private placements and offerings by issuers with >$5B pro forma MVEs.
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S E C U R I T I E S
Commodity Price Cyclicality
Commodity Prices Over the Past Five Years
250%
Gold
Silver
C opper
C oal
200%
150%
+46%
+19%
100%
(10%)
(12%)
50%
0%
Mar-08
Jul-08
Nov-08 Mar-09
Jul-09
Nov-09 Mar-10
Jul-10
Nov-10 Mar-11
Source: Capital IQ. Data as of April 26, 2013.
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Jul-11
Nov-11 Mar-12
Jul-12
Nov-12 Mar-13
S E C U R I T I E S
Mining Equities Price Cyclicality
Mining Equities Prices Over the Past Five Years
200%
GDX
C oal Index
C opper Index
150%
100%
(46%)
50%
(55%)
(65%)
Mar-08
Jul-08
Nov-08 Mar-09
Jul-09
Nov-09 Mar-10
Jul-10
Nov-10 Mar-11
Jul-11
Nov-11 Mar-12
Source: Capital IQ. Data as of April 26, 2013.
Note: Coal Index represents Dow Jones U.S. Coal Index. Copper Index based on Cowen Securities Investment Banking coverage database.
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Jul-12
Nov-12 Mar-13
S E C U R I T I E S
Bear Market for Mining Equities
Since the peak in the summer of 2011, mining shares have traded down significantly
Mining Equities Prices Since 2011 Peak
150%
GDXJ
C oal Index
C opper Index
S&P 500
+33%
100%
50%
(52%)
(59%)
(68%)
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Source: Capital IQ. Data as of April 26, 2013.
Note: Coal Index represents Dow Jones U.S. Coal Index. Copper Index based on Cowen Securities Investment Banking coverage database.
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Jan-13
Mar-13
S E C U R I T I E S
Gold Equities Have Traded Off Substantially
Gold stocks in particular have been battered in recent months
Gold Equities Prices Since 2011 Peak
AUY
GOLD
GOL
NGD
GG
NEM
C DE
AEM
GORO
GOR
NC M
VGZ
IMZ
AU
SA
ABX
EGO
VIT
KGC
MUX
C KG
NG
ANV
ATM
MAX
ORE
MAY
GBU
GUY
VTR
ITH
AUM
GGA
GC U
SGR
(48%)
(50%)
(51%)
(53%)
(55%)
(56%)
(58%)
(59%)
(60%)
(61%)
(65%)
(67%)
(67%)
(69%)
(70%)
(70%)
(71%)
(74%)
(76%)
(77%)
(77%)
(77%)
(79%)
(81%)
(84%)
(85%)
(88%)
(88%)
(90%)
(91%)
(93%)
Source: Capital IQ. Data as of April 26, 2013.
Note: Light blue denotes major gold producers.
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(33%)
(34%)
S E C U R I T I E S
Decline in Equity Financings
Mining Equity Issuance Since Over the Past Five Years
Proceeds in $B
# of deals
773
$44.2
793
$35.7
697
$29.3
412
619
$16.7
$15.8
156
$3.0
2008
2009
2010
2011
Source: Capital IQ as of April 26, 2013.
Note: Includes all IPOs and follow-ons since 2008 in the precious metals, diversified metals and coal industries.
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2012
2013 YTD
S E C U R I T I E S
Upward Trend in Debt Financings
Mining Debt Issuance Over the Past Five Years
Proceeds in $B
# of deals
142
$57.6
119
$46.4
109
$32.9
35
$23.2
16
$17.7
18
$4.8
2008
2009
2010
2011
Source: Capital IQ as of April 26, 2013.
Note: Includes all corporate bonds/notes issued since 2008 in the precious metals, diversified metals and coal industries.
10
2012
2013 YTD
S E C U R I T I E S
Transition From Equity to Debt
Mining Equity & Debt Issuance Over the Past Five Years
Proceeds in $B
Debt
Equity
$75.7
$73.4
$67.4
$68.6
21%
39%
52%
66%
79%
$21.5
$20.7
61%
15%
48%
78%
34%
85%
22%
2008
2009
2010
2011
Source: Capital IQ as of April 26, 2013.
Note: Includes all IPOs, follow-ons and corporate bonds/notes issued since 2008 in the precious metals, diversified metals and coal industries.
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2012
2013 YTD
S E C U R I T I E S
Superior Performance of Royalty Companies
Since 2008, royalty companies have largely outperformed
Royalty Companies Market Caps Over the Past Five Years
Royalty Companies Prices Over the Past Five Years
Market Cap in $B
300%
Royal Gold
Franco-Nevada
Silver Wheaton
GDX
GDXJ
Royalty Index
$13.8
$12.7
250%
$10.3
200%
+68%
$8.5
$8.4
150%
$6.4
$5.3
$5.2
$3.8
$3.0
100%
$4.8
$3.7
$3.5
$2.9
2008
2009
(46%)
(50%)
50%
$1.7$1.7 $1.9
$1.6
2010
2011
2012
2008
2013
2009
Source: Capital IQ. Data as of April 26, 2013.
Note: Royalty Index represents Franco-Nevada, Royal Gold and Silver Wheaton. Note GDXJ commenced trading on November 11, 2009.
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2010
2011
2012
2013
S E C U R I T I E S
Private Equity Investors
Traditional Funds
Resource Focused Funds
CEF Holdings
LFM Partners
Vulcan Mining
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S E C U R I T I E S
Current Precious Metals M&A Environment

Precious metals mining M&A volume in North America fell by more than 50% in 2012 compared to 2011
— Value of transactions: $6B (2012) vs. $13B (2011)
— # of transactions: 307 (2012) vs. 384 (2011)

Decline driven by impaired CEO confidence and difficult financing environment

Global economic uncertainty during 2012 led to a decline in commodity prices and a pullback in equity valuations
— Macroeconomic growth and European sovereign debt concerns continue to weigh on the markets
— Equity capital markets remain challenged, though the ‘right deals’ can get done
— Precious metals equities have retraced after summer rally
— Significant disconnect between precious metals prices and the underlying equities

Precious metals equities have retraced after summer rally
— Investor fatigue persists given underperformance relative to GLD
— Juniors trading at all-time lows vs. bullion
— Financing concerns given challenging capital markets

Substantial universe of juniors are ‘available for sale’ and limited number of viable buyers

Majors have been quiet given industry-wide trends, including:
— Capital and operating cost escalation – Pascua Lama, Tasiast, Pueblo Viejo, Donlin, Hope Bay, Meadowbank
— Geopolitical risk – resource expropriation, increased taxes/royalties, worker strikes/protests, military coups,
etc.
— Negative transaction experience – Kinross/Red Back, Barrick/Equinox, Newmont/Fronteer
— Emphasis on shareholder returns – dividends, portfolio rationalization, capital expenditure reductions, etc.
— Perception that juniors remain overvalued – quality of technical studies, insufficient drilling/engineering, etc.

Focused on projects that have manageable capex and/or are located in favorable/familiar jurisdictions
Deal Volume
Lower
Market
Conditions
Volatile
Juniors
Undervalued
&
Oversupplied
Buyers
‘Wait and
See’
Recent
Activity
Picking Up
14
Source: Capital IQ, Company data.
Note: Hostile transactions shaded in grey. Includes transactions greater than US$50M.
(1) Premia paid based on unaffected stock price 1-day prior to initial announcement.
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26%
22%
44%
42%
39%
36%
36%
33%
31%
37%
30%
74%
82%
61%
211%
93%
73%
71%
77%
72%
58%
100%
56%
68%
90%
56%
52%
46%
88%
2011
Aurizon (Alamos)
Orko Silver (Coeur)
Aurizon (Hecla)
11%
22%
18%
18%
14%
11%
7%
8%
17%
20%
19%
35%
35%
36%
43%
58%
69%
2010
Minefinders (Pan Amer.)
Silvermex (First Majestic)
Trelawney (IAMGOLD)
RX (US Silver)
Extorre (Yamana)
Allied (St Barbara)
La Mancha (Weather)
US Silver (Hecla)
Avion (Endeavour)
CGA Mining (B2Gold)
Prodigy Gold (Argonaut)
Andina (Hochschild)
Queenston
20% (Osisko)
PMI (Keegan)
Cerro Resources (Primero)
Orko Silver (First Majestic)
Fronteer (Newmont)
Ventana (EBX)
Century (White Tiger)
Richfield (New Gold)
Medoro (Gran Columbia)
Minera Andes (US Gold)
Goldstone (Premier)
Primero (Northgate)
Adamus (Endeavour)
Northgate (AuRico)
Grayd (Agnico-Eagle)
Silver Quest (New Gold)
Auryx (B2Gold)
Crocodile (Luxor)
E. Goldfields (Eldorado)
24%
30%
Median: 34%
37%
50%
21%
17%
15%
24%
39%
235%
2009
10%
10%
19%
19%
18%
238%
140%
69%
60%
19%
14%
2008
Linear (Apollo)
Underworld (Kinross)
Brett (Osisko)
Comaplex (Agnico-Eagle)
Lihir (Newcrest)
Brazauro (Eldorado)
X-Cal (Paramount)
Terrane (Thompson Creek)
Red Back (Kinross)
AuEx (Fronteer)
Andean (Goldcorp)
Avoca (Anatolia)
Continental (Jinchuan)
Capital Gold (Gammon)
Gold Wheaton (Franco)
20%
4%
30%
37%
40%
24%
17%
15%
250%
70%
Central Sun (B2Gold)
Strata Gold (Victoria)
W. Goldfields (New Gold)
Capital (Gammon) - Failed
Kinbauri (Orvana)
Moto Goldmines (Rangold)
Klondex (Para.) - Failed
Sino Gold (Eldorado)
West Timmins (Lake Shore)
Aquiline (Pan American)
Castle Gold (Argonaut)
Canplats (Goldcorp)
Equigold (Lihir Gold)
Peak Gold (New Gold)
Metallica (New Gold)
Frontier (Eldorado)
Aurelian (Kinross)
Gold Eagle (Goldcorp)
MAG Silver (Fresn.) - Failed
Orezone (IAMGOLD)
Gold Res. (Rusoro) - Failed
S E C U R I T I E S
Precedent Transactions – Precious Metals
Average premiums(1) have been constant over time, however, recent dislocation has seen premia increase
Precious Metals Transactions Since 2008
2012
-