Hillgrove Resources Limited · ASX:HGO

Hillgrove Resources — H1 2014 Earnings Presentation

19 slides from Hillgrove Resources's earnings presentation, Sep 24, 2014

  1. Slide 1: Half Year Results 31 July 2014

    For personal use only HALF YEAR RESULTS 31 JULY 2014 GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CHIEF FINANCIAL OFFICER 24 SEPTEMBER 2014

  2. Slide 2: Highlights

    HIGHLIGHTS  Net Profit After Tax of A$5.8 million For personal use only  EBITDA of A$27.0 million  Sales Revenue of A$92.5 million  Mill throughput increased to over 3.0Mtpa, with record copper production of 11,438 tonnes for the half (above the guidance range for the year)  First half C1 costs

  3. Slide 3: Operating Results

    For personal use only 3 OPERATING RESULTS

  4. Slide 4: Production Output

    PRODUCTION OUTPUT FY13/14 FY13/14 CY14 Period For personal use only 1H 2H 1H Ore to ROM from Pit kt 1,244 1,389 1,492 Ore to long term stockpiles kt 0 262 705 Mined Waste kt 4,886 5,141 7,806 Total Tonnes Mined kt 6,130 6,792 10,003  Record mill throughput and To ROM from LT Stockpiles kt 221 111 1

  5. Slide 5: Financial Results

    For personal use only 5 FINANCIAL RESULTS

  6. Slide 6: Statutory Profit Driven by EBITDA and Increased Production

    STATUTORY PROFIT DRIVEN BY EBITDA AND INCREASED PRODUCTION INCOME STATEMENT (A$ million) 6 months to 31 July 2014 31 July 2013 For personal use only Revenue 92.5 58.6 Cost of production (63.6) (29.4) Changes in inventories of ore and concentrate 5.6 (1.2) Employee benefits expense (3.0) (3.8) Unreal

  7. Slide 7: Strong Balance Sheet

    STRONG BALANCE SHEET BALANCE SHEET For personal use only A$ million 31 July 2014 31 January 2014 Current Assets 47,035 51,846  The reduction in cash is a Cash 12,145 16,452 direct result of continued Receivables 3,243 5,024 investment in mine Inventories 27,839 26,162 infrastructure and the Financi

  8. Slide 8: Aggressive Repayment of Debt

    AGGRESSIVE REPAYMENT OF DEBT For personal use only A$60m A$50m A$40m A$30m A$20m A$10m A$0m Apr‐12 Jan‐14 Apr‐14 Jul‐14 Oct‐14 Jan‐15 Apr‐15 Jul‐15 Gold Loan Project Finance Mezzanine Debt  Strong project cash flow generation has led to the ability to aggressively repay debt – gross debt reduced fr

  9. Slide 9: Strategy Leading to Value

    For personal use only STRATEGY LEADING TO VALUE 9

  10. Slide 10: Enhancing Shareholder Value

    ENHANCING SHAREHOLDER VALUE For personal use only THREE PILLARS FOR ENHANCING SHAREHOLDER VALUE Regional Capital Kanmantoo Growth Management Enabling the Productivity and cost Grow reserves and Company to establish focus in order to extend mine life of a foundation for maximise the free Kanmantoo th

  11. Slide 11: Research Coverage: Analysts Target Increase in Share Price

    RESEARCH COVERAGE: ANALYSTS TARGET INCREASE IN SHARE PRICE For personal use only Current HGO Share Price (post share consolidation) $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Note: Analysts forecasts adjusted for consolidation ratio 11

  12. Slide 12: Market Outlook and Guidance

    For personal use only MARKET OUTLOOK AND GUIDANCE 12

  13. Slide 13: Guidance to December 2014

    GUIDANCE TO DECEMBER 2014 Adjusted for 11 month year ending 31 December 2014; Hillgrove maintains its For personal use only guidance levels based on current performance and planned operational improvements Guidance for CY14 Ore mined 2,850kt to 3,000kt Ore processed 2,900kt to 3,000kt Ore grade proc

  14. Slide 14: H1 Highlights – Copper Production

    H1 HIGHLIGHTS – COPPER PRODUCTION For personal use only  A record 11,438 tonnes of copper in concentrate produced for the half, tracking above the guidance 20,500mt to range for the year 22,500mt Copper 14

  15. Slide 15: Copper Market

    COPPER MARKET  Global copper mine production surprised to the upside in 2H2013, leaving larger For personal use only than expected global concentrate stocks coming into 2014  Although copper mine supply is expected to be in a small surplus over the next 2 - 3 years, the supply deficit gap will wid

  16. Slide 16: Copper Price Forecast History

    COPPER PRICE FORECAST HISTORY Broker long term real copper price forecast history (US$/t) For personal use only Spot: US$6,901/t Source: Broker reports; spot copper price based on LME cash copper price as of April 28, 2014: US$6,786/t (or US$3.08/lb)  Brokers remain positive on copper industry fund

  17. Slide 17: Key Contacts

    KEY CONTACTS For personal use only For further information please contact:  Greg Hall, CEO and Managing Director and Russell Middleton, CFO  Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000  E: info@hillgroveresources.com.au  T: 61 2 8247 9300 17

  18. Slide 18: Competent Person Statements

    COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE For personal use only JORC 2012 Tonnage Cu Au Ag Classification (Mt) (%) (g/t) (g/t) Hillgrove Resources is an Australian mining Measured 2.63 0.88 0.10 1.95 company listed on the Australian S

  19. Slide 19: Disclaimer – Important Notice

    DISCLAIMER – IMPORTANT NOTICE No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all o

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