Canadian Minerals and Materials

1. Canadian Minerals and Materials BUS 417 - 1121 By: Kyle Woo, David Toljanich, Sherwin Pasha, and Jonas Wang

2. General Economic Information

3. This is an increase of $3 billion from 2009. These numbers are expected to increase further for 2011. Canadian Minerals and Materials contributed roughly $54 Billion to Canadian gross domestic product in 2010

5. Canada was the global leader for exploration budgets in 2010 – an increase from 2009

6. Metals and non metals account for 87% of the Canadian mining and materials industry.

7. The value of Canadian Mineral products has increased over the last 10 years.

8. Value of Uranium produced (Tonnes U/ $000) 2008-2010 Uranium Mining

9. NI43-101 Governs the quality of information shared by mining companies in the Canadian industry. Disclosure is based on the advice of a qualified person Entitles investors to a standard of information to evaluate investment potential

10. Industry Cross Section Detailed examination of operations in the Canadian materials industry relies on a cross section of Industry leaders. 3 companies are considered: Teck Resources, Goldcorp and Cameco

11. Teck Resources Copper Coal Zinc Gold Corp Gold Cameco Uranium

12. Copper Symbol Cu Current spot price: 3.77US/lb (Comex, Feb 21, 2012) Value produced in 2010: 3.83 Billion CAN This is roughly 10 percent of all metal and non metal production for 2010.

13. Copper outlook 2012

15. Futures Price of Copper

16. Coal • There are different types of coal: • Lignite--aka. “brown coal”; used as fuel for electric power generation • Sub-bituminous coal--used as fuel for steam-electric power generation and in the chemical synthesis industry • Bituminous coal-used as fuel for steam-electric power generation and used to make coke (which is used as a fuel and to smelt iron ore in blast furnaces; very little smoke under combustion conditions) • Anthracite-hard, glossy, black coal; used mainly for commercial and residential space heating • Graphite-difficult to ignite (therefore, not used as fuel very commonly); primarily used in pencils and as a lubricant (when powdered)

17. Coal Canadian exports of coal tend to bituminous coal Current spot price of bituminous coal: 118.05US per ton Value produced in 2010: 5.54 Billon CAN This is roughly 13% of all mineral production in Canada in 2010.

18. Coal Outlook 2012

19. Coal pricing

20. Zinc Symbol Zn Current Spot price: 0.9104US/lb (Feb 21, 2012) Value produced in 2010: 1.34 Billion CAN Roughly 4% of all metals and non metals produced

21. Zinc Outlook 2012

22. Gold Outlook 2012

23. Gold Symbol: Au Current Spot price: 1753US/oz (Feb 21, 2012) Value produced in 2010: 3.92Billion CAD Roughly 11% of all metals and non metals produced in Canada

24. Gold Outlook 2012

25. Gold Pricing

26. Uranium Uranium is sold in a variety of commodities Value is determined by quality Value Produced in 2010 in Canada: 1.2 Billion

27. Uranium Outlook 2012

28. Uranium pricing

30. Stock Metrics

31. 1 Year Price Movement

32. 1 Year vs. S&P/TSX Composite

33. 1 Year vs. S&P/TSX Metals & Mining Index

34. 1 Year 50 + 200 Day Moving Averages

35. 1 Year vs. GLD Gold ETF (SPDR Gold Trust)

36. 1 Year vs. GC (Comex Gold Futures)

37. 5 Year Price Movement

38. 5 Year vs. S&P/TSX Composite

39. 5 Year vs. S&P/TSX Metals & Mining Index

40. 5 Year 50 + 200 Day Moving Averages

41. 5 Year vs. GLD Gold ETF (SPDR Gold Trust)

42. 5 Year vs. GC (Comex Gold Futures)

43. P/E Ratio “…never analyze a precious-metals company based on the price-to-earnings ratio. In general, a high P/E means high projected earnings in the future, but all gold stocks have high P/E ratios. The P/E ratio for a gold stock doesn't really tell us anything because precious metals companies need to be compared by assets, not earnings. Unlike buildings and machinery, gold companies have large amounts of gold in their vaults and in mines throughout the world. Gold on the balance sheet is unlike other capital assets; gold is seen as currency of last resort. Investors are therefore willing to pay more for a gold company because it is the next best thing to physically holding the gold themselves. There are a few valuation techniques that analysts use when comparing various precious metal companies. The most popular and widely used ratio is market capitalization per ounce of reserves (market cap divided by reserves). This indicates to investors what they are paying for each ounce of reserves. Obviously, a lower price is better. ” http://www.investopedia.com/features/industryhandbook/metals.asp

44. Market Cap/Au Eq Decreasing McapMcap/Au Eq Barrick Gold Corporation (ABX) $135.23 Goldcorp Inc. (G) $222.03 Kinross Gold Corporation (K) $117.30 Yamana Gold Inc. (YRI) $242.33 Eldorado Gold Corporation (ELD) $255.78 Agnico-Eagle Mines Limited (AEM) $155.70 New Gold Inc. (NGD) $145.58

45. Market Cap/Au Eq Decreasing Mcap/Au Eq Eldorado Gold Corporation (ELD) $255.78 Yamana Gold Inc. (YRI) $242.33 Goldcorp Inc. (G) $222.03 Agnico-Eagle Mines Limited (AEM) $155.70 New Gold Inc. (NGD) $145.58 Barrick Gold Corporation (ABX) $135.23 Kinross Gold Corporation (K) $117.30

46. Overview Senior, Vancouver-based, gold producer with silver, copper, zinc, and, lead by products Leading gold producer engaged in operation, exploration, development and acquisition of precious metal properties in Canada, US, Mexico, and Central and South America Operations in Canada, USA, Argentina, Mexico, and Guatemala Low cost producer with low political risk No hedging of gold price Payment of dividends to shareholders since year 2003 Institutional shareholders including Fidelity Management & Research (6.73%), RBC Asset Management, Inc. (3.49%), Van Eck Associates Corporation (2.94%), BlackRock Investment Management (UK) Ltd. (2.82%) Gold production of 2,514,700 ounces in 2011 Expect annual gold production to reach 4.2 million ounces by 2016, an increase of 70% over the next 5 years

47. History 1989: Began when Robert McEwen bought control of two mining companies 1990: he hired new management and changed the board of directors for both companies 1994: four mining companies merged to create Goldcorp Inc. Transformed Goldcorp from a collection of small companies into a mining powerhouse Overcame many challenges: bid to extract the gold he believed all along was at Red Lake, lawsuits, family feud, debilitating strike, and a death threat.

48. Recent Acquisitions/Dispositions On March 31, 2006, Goldcorp acquired the Eleonore gold project in Quebec from Virginia Gold Mines Ltd. On May 12, 2006, Goldcorp completed the purchase of a number of Placer Dome assets from Barrick Gold for approximately $1.6 billion. In August 2006, Goldcorp acquired Glamis Gold to create one of the world’s largest gold companies. On February 14, 2008, Goldcorp completed the disposition of 108 million common shares of Silver Wheaton to a syndicate of underwriters On September 25, 2008, Goldcorp acquired Gold Eagle Mines Ltd. On February 16, 2010, Goldcorp completes the acquisition of 70% interest in El Morro project

49. Operations/Projects

50. Results of Operations