Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Investor Presentation (February 2023)
55 slides from Vault Minerals's investor presentation, Feb 22, 2023
Slide 1: Equity Raising Presentation
For personal use only Equity Raising Presentation 21 February 2023 Not for release to US wire services or distribution in the United States www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This presentation (Investor Presentation) has been prepared by Red 5 Limited ACN 068 647 610 (RED) in connection with RED’s proposed placement (Placement) of new ordinary shares in RED (New Shares) to institutional and sophisticated investors under section 708A o
Slide 3: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements For personal use only Certain statements made during or in connection with this Investor Presentation contain or comprise certain forward-looking statements regarding RED’s Mineral Resources and Reserves, exploration activities, project
Slide 4: Investment Highlights
Investment Highlights King of the Hills KOTH Processing Hub For personal use only • Mineral Resource of 4.75 Moz1 • Lowest cost plant in the • Ore Reserve of 2.7 Moz1 Leonora district • Open pit and underground • 4.7mtpa processing capacity, mines expanding to 5.5mtpa3 • ~15 year mine life1 • ~200ko
Slide 5: Red 5 Limited – Corporate Profile
Red 5 Limited – Corporate Profile 0.50 Our Company Vision For personal use only 0.45 0.40 “To be a successful multi-operational 0.35 exploration and mining company, providing 0.30 benefits to all stakeholders, through the 0.25 0.20 consistent application of technical excellence, 0.15 and responsible
Slide 6: 1. Executive Summary
For personal use only 1. Executive Summary www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 6
Slide 7: Red 5 Asset Overview
Red 5 Asset Overview Red 5’s assets comprise the King of the Hills (KOTH) Gold Mine, Darlot Gold Mine and a 3.25% net smelter royalty over the Siana Gold Mine For personal use only KOTH Summary Mineral Resource5 4.75Moz 2H FY2023 Production6 90-105koz Ore Reserve5 2.7Moz Indicative Production2 >200k
Slide 8: KOTH Commercial Production Declared December 2022
KOTH Commercial Production Declared December 2022 • KOTH Gold Mine built on schedule For personal use only • First gold produced on 5 June 2022 with commercial production declared on 16 December 2022 • 2H FY2023 guidance of 90k – 105k oz at an AISC of A$1,750 – 1,950/oz • KOTH open pit • Stage 1 cut
Slide 9: Strengthening balance sheet to support steady-state operations
Strengthening balance sheet to support steady-state operations at KOTH and provide a robust platform for growth For personal use only • Red 5 is seeking to raise $80 million via a two-tranche placement (Placement) in conjunction with a A$8-10 million share purchase plan1 (SPP), (together the Equity
Slide 10: Equity Raising Sources and Uses
Equity Raising Sources and Uses Additional funding enables: Sources of Proceeds A$M For personal use only De-risked ramp up of KOTH to steady Placement proceeds1 80 state production of 5.5Mtpa in FY24 Provides balance sheet flexibility to assess and accelerate future Uses of Proceeds1 A$M invest
Slide 11: Strong Balance Sheet Flexibility Post Equity Raising
Strong Balance Sheet Flexibility Post Equity Raising Progressively De-leveraging KOTH Gold Mine (A$M’s) For personal use only 150 ● Future free cash flow from steady- Cash balance will depend on state operations at KOTH will be gold price and operational used to continue to de-leverage the performan
Slide 12: Debt Summary and Hedging Profile
Debt Summary and Hedging Profile • Finance Facility with Macquarie Bank, Loan repayment profile (A$M’s) For personal use only HSBC and BNP Paribas Senior • First principal repayment of $10.5M paid 180 Construction on 31 December 20221 160 15 Facility • $150M remaining at 31 December 20221 • $114M re
Slide 13: KOTH 2H FY2023 Guidance
KOTH 2H FY2023 Guidance Ore sourced from KOTH Open Pit, KOTH 2H FY2023 guidance1 ● Underground and Darlot Underground mines For personal use only Production (koz) 90 – 105 ● KOTH Open Pit provides the mill baseload feed ● KOTH Open Pit “Catch Up” Plan completed in AISC (A$/ounce) 1,750 - 1,950 early
Slide 14: KOTH Mill is the Logical Processing Hub for the Leonora District
KOTH Mill is the Logical Processing Hub for the Leonora District ● KOTH process plant is the lowest cost mill in Regional process plants – mill size, unit cost and distance to Leonora the Leonora district For personal use only ● Processing cost of A$12/t1 60 ● Large mill drives site-wide economies o
Slide 15: Adding additional Mining Industry Experience to the Board
Adding additional Mining Industry Experience to the Board Red 5 is undergoing a formal process to renew Red 5 Board of Directors the composition and succession of the Red 5 For personal use only Board: New Chairperson See information on this slide ● Temporarily increase its Board to 8 members Kevin
Slide 16: 2. Equity Raising Overview
For personal use only 2. Equity Raising Overview www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 16
Slide 17: Equity Raising Overview
Equity Raising Overview Details For personal use only • Red 5 is seeking to raise A$80 million via a two-tranche placement (Placement), comprising the issue of approximately 592.6 million new fully paid ordinary shares (New Shares) - Tranche 1 to raise approximately A$56.6 million utilising the Comp
Slide 18: Pro Forma Financial Position
Pro Forma Financial Position Balance sheet significantly de-leveraged with pro forma gearing of ~13% Description Units Pre-Equity Raising Equity Raising Repayment of Debt and Post-Equity Raising For personal use only 5 Adjustment Creditors 6 (Pro Forma) Share Price1,2 A$/share 0.175 0.135 0.168 Shar
Slide 19: Equity Raising Timetable
Equity Raising Timetable Event Time (AEST)/Date1 For personal use only SPP record date Monday, 20 February 2023 Trading halt and launch of Placement Bookbuild Tuesday, 21 February 2023 Results of Placement Bookbuild announced, trading halt lifted and recommencement of trading Thursday, 23 February 2
Slide 20: 3. Operational Update at King of the Hills
For personal use only 3. Operational Update at King of the Hills www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 20
Slide 21: SAG mill – commercial production declared Dec 2022
SAG mill – commercial production declared 16 Dec 2022 For personal use only www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 21
Slide 22: Gyratory crusher built with 6Mtpa crushing capacity
Gyratory crusher built with 6Mtpa crushing capacity For personal use only www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 22
Slide 23: KOTH OP mine plan to 2037 – opportunity to accelerate mining
KOTH OP mine plan to 20371 – opportunity to accelerate mining For personal use only 1. Red 5 ASX Release: 7 September 2022 www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 23
Slide 24: Progressing stage of the open pit
Progressing stage 1 of the open pit For personal use only www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 24
Slide 25: OP now mining through the granodiorite-ultramafic contact
OP now mining through the granodiorite-ultramafic contact1 Stage 1 waste cutback For personal use only completed in January As the open pit deepens, the successive benches demonstrate the progressive increase in tonnes and grade at depth 1. Red 5 ASX Release: 24 January 2023 www.red5limited.com Our
Slide 26: KOTH produced 36,260 ounces in the December Quarter
KOTH produced 36,260 ounces in the December Quarter ● KOTH produced 36,260 ounces in the Dec 2022 KOTH Open Pit Ore Reserve Model Stage 1 - Contained Ounces by RL For personal use only Quarter1 RL HG LG ● January 2023 had record production of 13,534 5295 ounces2 5285 5275 Current mining ● Progressiv
Slide 27: KOTH underground mine progressively mining more fresh areas
KOTH underground mine progressively mining more fresh areas More tonnes at higher grades are expected For personal use only from the KOTH underground in H2 FY23 ● Fully resourced underground mine crews are in place ● Mining in more fresh areas – resulting in predictable tonnes and grade (with less d
Slide 28: Site is powered by 30MW hybrid gas-solar power station
Site is powered by 30MW hybrid gas-solar power station For personal use only www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 28
Slide 29: TSF5 on track for completion in April 2023
TSF5 on track for completion in April 2023 For personal use only www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 29
Slide 30: 4. Growth Strategy
For personal use only 4. Growth Strategy www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 30
Slide 31: KOTH Geology is Well Understood - Open in all Directions
KOTH Geology is Well Understood - Open in all Directions Jun-22 Mineral Resource1 Jun-22 Ore Reserve1 For personal use only 105.5Mt @ 1.4 g/t for 70.2Mt @ 1.2 g/t for 4.75Moz Au 2.66Moz Au ● Orebody in the contact zone of a substantial Granodiorite intrusion ● 4km long x 2km wide ● Historical unders
Slide 32: KOTH 5-year UG Mine Plan is only constrained by drilling
KOTH 5-year UG Mine Plan1 is only constrained by drilling For personal use only 1. Red 5 ASX Release: 7 September 2022 www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 32
Slide 33: KOTH diamond drill results enhance FY23 and FY24 mine plan
KOTH diamond drill results enhance FY23 and FY24 mine plan1 Growth opportunity under the South Pit final shell once fully dewatered For personal use only Regal and Eastern Flank ● 10m at 79.62g/t ● 62m at 6.33g/t ● 24.5m at 14.07g/t ● 6.8m at 35.06g/t Central ● 3.4m at 49.4g/t ● 29.6m at 3.48g/t ● 3
Slide 34: KOTH Exploration – Numerous Surface Targets
KOTH Exploration – Numerous Surface Targets ● Three satellite deposits are already in the LOM plan: For personal use only ● Rainbow ● Centauri ● Cerebus-Eclipse ● Integrated datasets have identified priority targets along the Tarmoola and Ursus Fault corridors ● Tarmoola Fault Corridor ● Poorly test
Slide 35: Darlot drilling results identified potential to upgrade Resource
Darlot drilling results identified potential to upgrade Resource1 Darlot UG mine retains significant option value with potential at-depth in a higher gold price environment For personal use only Middle Walters South1 ● 6.0m at 71.4g/t ● 3.4m at 42.5g/t ● 31.1m at 5.8g/t Centurion Lode1 ● 1.1m at 1,5
Slide 36: 5. Appendix
For personal use only 5. Appendix www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 36
Slide 37: Standout Value Opportunity
Standout Value Opportunity ● Red 5 EV/Reserve relative to its 1,800 For personal use only peers ● Valuation of WA based-gold 1,500 Capricorn companies1 EV / Reserve (A$/oz) ● Bubble size = Enterprise Value 1,200 Bellevue ● The KOTH Gold Mine positions Red 5 Ramelius as an emerging mid-tier Australia
Slide 38: Leadership Team with Strong Mining Expertise
Leadership Team with Strong Mining Expertise Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi- billion international development projects – the Company is well placed to maximise the full potential of the KOTH Gold Mine F
Slide 39: KOTH Mineral Resource of 4.75Moz
KOTH Mineral Resource of 4.75Moz1 Total Open Pit & Underground KOTH Resource as at June 2022 For personal use only Cut-off Mining Gold Contained Gold Classification Tonnes (000t) (g/t) Method (g/t) (000oz) Measured 0.4-1.0 OP+UG 1,330 1.2 50 Indicated 0.4-1.0 OP+UG 72,880 1.4 3,250 Inferred 0.4-1.0
Slide 40: KOTH Ore Reserve of 2.7Moz
KOTH Ore Reserve of 2.7Moz1 Total KOTH Ore Reserves as at June 2022 For personal use only Cut-off JORC 2012 Tonnes Gold Contained Gold Deposit Mining Method (g/t) Classification (Mt) (g/t) (Moz) KOTH Open pit 0.4 Probable 63.3 1.2 2.4 KOTH Underground 1.3 Probable 2.8 2.0 0.2 Rainbow Open pit 0.4 Pr
Slide 41: Top Gold Deposits in Australia
Top 20 Gold Deposits in Australia Resources Reserves For personal use only Mt g/t Moz Mt g/t Moz Cadia 3374.0 0.4 37.6 Cadia 1280.0 0.4 17.4 Golden Mile - KCGM 545.9 1.6 27.4 Golden Mile – KCGM 280.9 1.3 11.9 Boddington 838.3 0.6 16.4 Boddington 558.3 0.7 11.6 Mallina Gold Project 250.7 1.3 10.6 Tan
Slide 42: Australian Top Gold Deposits
Australian Top 20 Gold Deposits1 Resources Reserves Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest St Ives Goldfields Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 2.8 4.75 0.4 Proven 1.8 5.04 0.3 For personal use
Slide 43: Competent Persons Statement
Competent Persons Statement Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves For personal use only ● The information in this presentation that relates to the Mineral Resources for the King of the Hills deposit is extracted from the ASX announcement titled “Mineral Resource
Slide 44: 6. Key Risks
For personal use only 6. Key Risks www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 44
Slide 45: Key Risks
Key Risks Set out in this section are some of the potential risks associated with RED, its business, the industry in which it operates and an investment in RED shares. It is not an exhaustive list of every risk faced by RED now or in the future. For personal use only Risk Global economic Changes in
Slide 46: Key Risks
Key Risks Risk For personal use only Key personnel RED’s success depends on the continued services of its key personnel. Due to management’s experience and the important role they have taken in developing RED’s mining, business and financial plans, RED could be adversely affected if any of the key m
Slide 47: Key Risks
Key Risks Risk For personal use only Conditions and The permits and agreements on the KOTH and Darlot projects are governed by Australian legislation and are evidenced by the granting of permits and agreements and the renewal of extension of such permits and agreements. Each permit, agreement or ext
Slide 48: Key Risks
Key Risks Risk For personal use only Operational risk The success of RED’s operations will be subject to uncertainty with respect to (among other things): ore tonnes, mine grade, ground conditions, geology, metallurgical recovery or unanticipated metallurgical issues (which may affect extraction cos
Slide 49: Key Risks
Key Risks Risk For personal use only Litigation Legal proceedings may arise from time to time in the course of RED’s business. RED may be involved in disputes with other parties in the future which may result in litigation. Any such claim or dispute, if proven, may impact adversely on RED’s operatio
Slide 50: 7. International Offer Restrictions
For personal use only 7. International Offer Restrictions www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 50
Slide 51: International Offer Restrictions
International Offer Restrictions This Investor Presentation does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or s
Slide 52: International Offer Restrictions
International Offer Restrictions Jurisdiction For personal use only European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for s
Slide 53: International Offer Restrictions
International Offer Restrictions Jurisdiction For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and an
Slide 54: International Offer Restrictions
International Offer Restrictions Jurisdiction For personal use only United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New Shares have not been, and will not be, registered under the US Securities Act of 1933 o
Slide 55: Thank You
For personal use only THANK YOU Level 2, 35 Ventnor Avenue, West Perth, Western Australia 6005 Australia (61-8) 9322 4455 (61-8) 9481 5950 www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 55