Regis Resources Limited · ASX:RRL
Regis Resources — Macquarie Australia Conference 2020
32 slides from Regis Resources's conference presentation, May 7, 2020
Slide 1: Macquarie Bank Australia Conference
For personal use only Macquarie Bank Australia Conference JIM BEYER – Managing Director & CEO 7 May 2020 ASX:RRL
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT For personal use only This presentation contains only a brief overview of Regis Resources Limited and its affects the information included in the Relevant ASX Announcements and in each case the associated entities (“Regis or RRL") and their respective activities and operations
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW CAPITAL STRUCTURE 12 MONTH SHARE PRICE PERFORMANCE For personal use only ASX Code RRL 20 7.00 Issued capital1 508.2M shares 6.00 Market capitalisation2 A$2.3B 15 5.00 Cash and gold on hand3 A$169M 4.00 Millions $AUD 10 3.00 Borrowings3 Nil 2.00 Resources4 8.2Moz 5 1.00 Reserves4
Slide 4: COVID-19 Response
4 COVID-19 RESPONSE Health & Safety of our workforce of primary concern For personal use only • Primary objective to protect the health and wellbeing of Regis employees, contractors, their families and the communities in which we operate • Health screening for all persons entering the operations • E
Slide 5: Corporate Highlights
5 CORPORATE HIGHLIGHTS For personal use only A$2.3B company with 8.2Moz in Resources and 4.0Moz in Reserves Production Guidance of 340,000 - 370,000oz gold at upper end of A$1,125-$1,195/oz AISC 1 and Growth Capital of ~A$83m for FY2020 Strong dividend stream with cumulative payments of A$448m since
Slide 6: Transparent Sustainability and ESG Reporting
6 TRANSPARENT SUSTAINABILITY AND ESG REPORTING For personal use only Sustainability Metrics Health & Safety People & Culture Mental Health & Wellbeing Environment Rehabilitation & Closure Social Performance Corporate Governance
Slide 7: Industry Leader in Low Cost Production
7 INDUSTRY LEADER IN LOW COST PRODUCTION For personal use only ALL-IN SUSTAINING COSTS 2019 & 2020 Forecast (US$/OZ) International peers (2019A) $1,400 Australian peers (2020E) $1,200 $1,000 AISC (US$/oz) $800 $600 $400 $200 $0 Source: Canaccord Genuity – February 2020. FX Assumption – 0.70AUD/1USD
Slide 8: Growth Strategy Continues
8 GROWTH STRATEGY CONTINUES For personal use only Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Extension Expansion Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Duk
Slide 9: FY20 Guidance and Medium Term Outlook
9 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 10: Rosemont Underground Mine
10 ROSEMONT UNDERGROUND MINE First Development Progressing on plan Ore Delivered In July For personal use only PRE-FEASIBILITY STUDY METRICS1 Commencement Capital A$36 million Maximum Cash Outflow A$41 million Average Mining Rate 480 - 600ktpa AISC A$1,120/oz Mine Life ~5 years First Ore Sept Q 2019
Slide 11: Rosemont Underground Mine
11 ROSEMONT UNDERGROUND MINE Considerable mine life extension potential - drill testing commenced Delivered In July For personal use only
Slide 12: Garden Well Underground – Taking Shape
12 GARDEN WELL UNDERGROUND – TAKING SHAPE High-grade southern plunge highlights UG potential In July For personal use only Zone of continuous mineralisation: • up to 10m true widths • 80 – 100m height and • 300m N-S strike and • extends >300m below surface Recent Highlights : 5.3 m @ 5.0 g/t Au 3.8
Slide 13: FY20 Guidance and Medium Term Outlook
13 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 14: McPhillamys Gold Project
14 MCPHILLAMYS GOLD PROJECT 100% owned and one of Australia’s largest undeveloped open pittable gold resources For personal use only MINERAL RESOURCE 2.29 Moz of gold ORE RESERVE 2.02 Moz of gold With more potential at Discovery Ridge Mineral Resource – 10.4Mt @ 1.2 g/t Au for ~390koz ANNUAL PRODUCT
Slide 15: McPhillamys Gold Project
15 MCPHILLAMYS GOLD PROJECT A Significant Organic Growth Opportunity For personal use only Development Application (DA) is progressing – Exhibition and Submission period has closed with no objections from any regulators Regis’ Response to Submissions now underway DA outcomes feed into the Definitive
Slide 16: FY20 Guidance and Medium Term Outlook
16 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 17: 8Moz Gold Discovered to Date
17 8Moz GOLD DISCOVERED TO DATE Landholding triples to 3,000 km2 giving Regis control of 90% of the belt For personal use only Central Zone Accelerating Exploration in H2 2020 MOOLART WELL Exploration budget increased by $7m to $31m for FY2020 Risden Accelerated exploration on high-grade UG Well ext
Slide 18: Growth Strategy Continues
18 GROWTH STRATEGY CONTINUES For personal use only Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Extension Expansion Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Du
Slide 19: FY20 Guidance and Medium Term Outlook
19 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 20: Summary
20 SUMMARY For personal use only Consistent Among the Lowest Operational Delivery Cost Producers Strong Track Record Clear Internal Growth of Dividend Returns Path
Slide 21: Further information
For personal use only Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200
Slide 22: Appendix
APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018 For personal use only APPENDICES i) FY20 Half Year Financial Results ii) Hedging Strategy Details iii) Project Pipeline iv) Reserves and Resources - 31 March 2019 22
Slide 23: Financial Highlights
23 Appendix i) FINANCIAL HIGHLIGHTS For personal use only Record Net Profit EBITDA A$93m up 17% A$186m up 27% Net Profit Margin +25% EBITDA Margin 50% Cash flow from Cash & Bullion operating activities Interim Dividend A$169m* A$147m 8c per share No debt up 16% *Includes bullion on hand valued at $2
Slide 24: FY2020 Half Year Physicals
24 Appendix i) FY2020 HALF YEAR PHYSICALS For personal use only FY 2020 Half Year FY19 H1 Physicals DNO DSO TOTAL TOTAL Variance Ore mined (Mbcm) 0.67 1.39 2.06 2.52 -18% Production on track to meet full year guidance 340,000 – Waste mined (Mbcm) 3.19 10.19 13.38 13.15 +2% 370,000oz Stripping ratio
Slide 25: FY2020 Half Year Financial Results
25 Appendix i) FY2020 HALF YEAR FINANCIAL RESULTS: Net Profit For personal use only H1 FY2020 H1 FY2019 Unit 31 Dec 2019 31 Dec 2018 A$93M up 17% Ounces Produced oz 178,482 181,366 Ounces Sold oz 182,807 186,276 Average Realised Price A$/oz 2,063 1,696 Sales Revenue A$m 371.4 317.2 Royalties A$m (17
Slide 26: Strong Performance on All Profit Measures
26 Appendix i) STRONG PERFORMANCE ON ALL PROFIT MEASURES FY20 continues the trend Net Profit After Tax For personal use only Revenue 100 93 400 371 89 90 85 83 338 80 350 317 80 77 299 307 290 300 70 252 61 60 A$ millions 250 A$ millions 50 200 40 150 30 100 20 50 10 0 0 2017 H1 2017 H2 2018 H1 2018
Slide 27: Cashflow Waterfall
27 Appendix i) CASHFLOW WATERFALL Strong cashflow from operations of A$179.1 supported the current phase of increased capital investment and also the payment of A$40.7m in dividends during the first half of FY2020 For personal use only Cash & Bullion* on Hand - 31 December 2019 A$450m A$400m $179.1m
Slide 28: Dividend
28 Appendix i) DIVIDEND Regis continues to be an Australian gold industry leader on dividend payment metrics For personal use only Interim dividend of 8 cps (A$41m) fully franked payout: 11% of H1 FY20 revenue and 22% of EBITDA Regis has paid and/or declared 89cps - A$448m in dividends since 2013 Le
Slide 29: Spot Deferred – Flexible Gold Hedge Book
29 Appendix ii) “SPOT DEFERRED” – FLEXIBLE GOLD HEDGE BOOK (31 Mar 2020) For personal use only Regis’ hedge position reduced to ~419koz at an average of A$1,620/oz. 2,500 2,410 Regis is currently actively managing the process of selling into the 2,000 lowest price hedges. Currently at a rate of appr
Slide 30: Project Pipeline
30 Appendix iii) PROJECT PIPELINE For personal use only Moolart Well Ext. Baneygo – Idaho Gloster UG McPhillamys Gloster Moolart Well Garden Well UG Discovery Ridge Garden Well Beamish Duketon Greenstone Belt Garden Well OP Expansion Baneygo Russells Tooheys Well Tooh
Slide 31: Group Ore Reserves (31 March 2019)
APPENDIX 1 JORC COMPLIANT 31 Appendix iv) GROUP ORE RESERVE ORE RESERVES ESTIMATES 31 MARCH (312018 March 2019) For personal use only
Slide 32: Group Mineral Resources (31 March 2019)
32 Appendix iv) GROUP MINERAL RESOURCES (31 March 2019) For personal use only
Regis Resources — Macquarie Australia Conference 2020 on 6ix