Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Q1 FY2015 Earnings Presentation
21 slides from Hillgrove Resources's earnings presentation, May 22, 2014
Slide 1: Q1 and Company Update
For personal use only Q1 AND COMPANY UPDATE GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CHIEF FINANCIAL OFFICER 22 MAY 2014
Slide 2: Corporate Snapshot – As at 30 April 2014
CORPORATE SNAPSHOT – AS AT 30 APRIL 2014 For personal use only ASX listed: HGO Shares on issue: 1,180.9 million Share price: $0.078 (21 May 2014) Market capitalisation: $92.1 million (21 May 2014) Cash and cash equivalents $14.1 million Debt $33.4 million Net Debt $19.3 million Tax l
Slide 3: Top Shareholders – 30 April 2014
TOP SHAREHOLDERS – 30 APRIL 2014 For personal use only Top Shareholders % of isc SHAREHOLDER DISTRIBUTION Perennial Value Management 12.5% Platinum Partners 8.4% Renaissance Smaller Companies 7.4% Colonial First State – 5.5% Growth Australian Equities Freepoint Metals & Concentrates 4.7% Aedos Advis
Slide 4: Q1 Highlights – Mining Operations and Production
Q1 HIGHLIGHTS – MINING OPERATIONS AND PRODUCTION For personal use only 5,554 tonnes of copper in concentrate produced for the quarter, tracking above the guidance range for year 25,000mt 20,000mt 15,000mt 10,000mt 22,300mt to 24,600mt Copper 5,000mt 0mt Guidance Actual Production 6,000mt 4,000mt 2
Slide 5: Production Output
PRODUCTION OUTPUT For personal use only FY 2013 FY2014 Jan-14 Apr-14 Period Ore to ROM from Pit kt to Jan 2013 2,221 to Jan 2014 2,633 QTR 733 QTR 812 Record quarter for Ore to/(from) kt 849 (70) 148 169 total tonnes mined long term stockpiles Record quarter for Mined Waste kt 11,777 10,027 3,48
Slide 6: Improved Mining Production Output
IMPROVED MINING PRODUCTION OUTPUT For personal use only Note: The chart above includes total Bank Cubic Metres (BCM) mined, and total ore tonnes (kt) mined. Total BCM mined of 1,702k is equivalent to 5,259kt New Liebherr excavators, multiple pits, and other productivity improvements lifting mining
Slide 7: Mining Operations and Production
MINING OPERATIONS AND PRODUCTION For personal use only Note: Rodda will include Emily Star; and Giant will include Giles, Lean and Valentine 7
Slide 8: Ore Milled and Feed Grade
ORE MILLED AND FEED GRADE For personal use only Mill and wet plant continued to perform well during the quarter Mill throughput above nameplate capacity, with 757kt of ore milled for the quarter Mined ore fed directly to mill with only minor additions of low grade due to high milling rate 8
Slide 9: Q1 Highlights – Revenue and Costs
Q1 HIGHLIGHTS – REVENUE AND COSTS For personal use only Period FY 2013 FY 2014 JAN-14 APR-14 US cents per lb to JAN 13 to JAN 14 QTR QTR Mining Costs 92 117 98 111 Processing Costs 97 72 50 47 Other Direct Cash Costs 23 22 15 16 Total Onsite Costs 212 211 163 174 Transport & Shipping 18 17 16 16 Tre
Slide 10: Improved Mining Costs
IMPROVED MINING COSTS For personal use only Consistent reductions in mining unit costs over the last three quarters 10
Slide 11: Lower Processing Costs Maintained
LOWER PROCESSING COSTS MAINTAINED For personal use only Quarterly Processing Unit Costs Including Mobile Crushing ($/t Milled) Record low 16.00 processing unit 14.00 costs achieved in the quarter, due to 12.00 optimisation work 10.00 and a focus on Costs ($/t) saving initiatives 8.00 6.00 Ongoin
Slide 12: Strong Hedge Book
STRONG HEDGE BOOK For personal use only Strong hedge book A$/mt A$/lb provides certainty for cash flows and A$10,000 A$4.54 revenue during the debt repayment A$9,000 A$4.08 period A$8,000 A$3.63 Approximately 10,200t of copper hedged in first half of the year (90% of A$7,000 A$3.18 payable coppe
Slide 13: Sensitivities and Guidance
SENSITIVITIES AND GUIDANCE For personal use only Based on current performance and planned operational improvements, Hillgrove maintains the following guidance for financial year 2015 Guidance For FY15 Ore mined 3,000kt to 3,250kt Ore processed 2,900kt to 3,000kt Ore grade processed 0.83% to 0.88% Co
Slide 14: Debt Reduction
DEBT REDUCTION For personal use only Hillgrove again made a significant reduction to its debt balance during the quarter Total debt reduced from AUD40.8M to AUD33.4M at 30 April 2014 A Gold Loan repayment of AUD1.3M (866oz) was made in addition to the repayment of AUD6.0M Senior Debt principal
Slide 15: Continuous Improvement Initiatives
CONTINUOUS IMPROVEMENT INITIATIVES For personal use only Multi stream analyser to further optimise recoveries and costs Load and haul productivity improvements Larger blast hole diameters as well as reconfigured burden and spacing Multiple pit sources for ore supply Continued maintenance o
Slide 16: Financial Year End Change
FINANCIAL YEAR END CHANGE For personal use only Background Hillgrove has historically had a Financial Year Reporting period of 31 January Proposed Change Board has resolved to change year end for reporting purposes to 31 December Implementation and Transition periods The company will move to the
Slide 17: Strategic Focus
STRATEGIC FOCUS For personal use only The strategic focus of the Company is on further improvements in performance of the Kanmantoo Mine, expansion of the Kanmantoo region Resource through exploration, realisation of value from the Indonesian assets and creation of value for shareholders Achieve F
Slide 18: Summary
SUMMARY For personal use only Revenue for the quarter was AUD45.5M at an average realised price for copper of AUD3.71/lb (USD3.34/lb) Production guidance for FY15 of 22,300t to 24,600t Cu in concentrate, with first quarter production exceeding the upper end of the guidance Strong positive oper
Slide 19: Key Contacts
KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director Russell Middleton, Chief Financial Officer Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000 E: info@hillgroveresources.com.au T: 61 2 8247 9300 19
Slide 20: Competent Person Statements
COMPETENT PERSON STATEMENTS For personal use only Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE 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
Slide 21: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE For personal use only 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
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