Regis Resources Limited · ASX:RRL
Regis Resources — Q1 FY2018 Earnings Presentation
24 slides from Regis Resources's earnings presentation, Oct 12, 2017
Slide 1: Regis Resources September 2017 Quarterly Report & Exploration Update
1 1 REGIS RESOURCES LTD SEPTEMBER 2017 QUARTERLY REPORT & EXPLORATION UPDATE
Slide 2: Disclaimer & Competent Persons Statement
DISCLAIMER & COMPETENT PERSONS 22 STATEMENT This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’
Slide 3: Review of FY2018 Q1 Operations
REVIEW OF FY2018 Q1 OPERATIONS 3 3 DUKETON CONTINUES TO DELIVER STRONG CASHFLOW Q1 Q4 OPERATIONS FY18 FY17 Q1 gold production 91,921 ounces Ore mined (Mbcm) 1.4 1.4 2% higher than Q4 FY17 Run rate at top end of FY18 guidance of 335-365koz Waste mined (Mbcm) 5.1 6.1 Q1 throughput, grade & rec
Slide 4: Duketon
3.5mt > ; 7.00 3.0mt 3.0mt 6.00 2.5mt 2.5mt D 5.00 4 2.0mt 2.0mt 4.00 1.5mt 1.5mt + + 3.00 1.omt 1.0mt - + 2.00 o.5mt | L 1.00 0.5mt © © ° 4 Ry ay A % wy wy wy ay wy wy wy ay ¢ ¢ ¢ ¢ ca g ¢ ¢ fold e a ro ou ? oe & mmm Tonnes mined Strip ratio (w:0) mmm Dry tonnes milled Head grade (g/t) 97.0% 100koz
Slide 5: FY2018 Q1 Operating Results
FY2018 Q1 OPERATING RESULTS 5 5 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q1 Q4 Ore mined (Mbcm ) 0.6 0.6 0.8 0.8 1.4 1.4 Waste mined (Mbcm) 1.2 1.4 3.9 4.7 5.1 6.1 Stripping ratio (w:o) 2.2 2.5 4.5 5.7 3.6 4.4 Ore mined (Mtonnes) 1.0 1.0 2.2 2.1 3.2 3.1 Ore milled (M
Slide 6: FY2018 Q1 Operating Results – Duketon Northern Operations
FY2018 Q1 OPERATING RESULTS 6 6 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q1 Q4 Ore mined (Mbcm ) 0.6 0.6 0.8 0.8 1.4 1.4 Waste mined (Mbcm) 1.2 1.4 3.9 4.7 5.1 6.1 Stripping ratio (w:o) 2.2 2.5 4.5 5.7 3.6 4.4 Ore mined (Mtonnes) 1.0 1.0 2.2 2.1 3.2 3.1 Ore milled (M
Slide 7: FY2018 Q1 Operating Results – Duketon Southern Operations
FY2018 Q1 OPERATING RESULTS 7 7 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q1 Q4 Ore mined (Mbcm ) 0.6 0.6 0.8 0.8 1.4 1.4 Waste mined (Mbcm) 1.2 1.4 3.9 4.7 5.1 6.1 Stripping ratio (w:o) 2.2 2.5 4.5 5.7 3.6 4.4 Ore mined (Mtonnes) 1.0 1.0 2.2 2.1 3.2 3.1 Ore milled (M
Slide 8: Cashflow Waterfall
8 CASHFLOW WATERFALL 8 Strong cash-flow from operations of $62.9m (Q4: $74.2m) Cashflow affected by significant build in gold in circuit - $6.8m of working capital to be realised in Dec17 quarter. Lower spot gold price – average Q1: $1,620/oz, average Q4: $1,675/oz Effective cash build of $32m a
Slide 9: Exploration Update
9 EXPLORATION UPDATE 9 DUKETON - SIGNIFICANT RESULTS IN Q1 Completed 48,806m (Q3: 34,163m) of drilling on 15 gold projects Significant drill capacity used on required sterilisation & near mine development drilling at numerous projects 8 projects and 31,322 metres Rosemont Underground Numerou
Slide 10: Rosemont South & Main Underground Opportunities
ROSEMONT SOUTH & MAIN 10 10 UNDERGROUND OPPORTUNITIES 3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2 Phase 1 drill programmes underway at Rosemont South and below Rosemont Main Pit: Returning numerous high grade intercepts Drilling to continue in Q2
Slide 11: Rosemont Main Pit Underground Project
ROSEMONT MAIN PIT 11 11 UNDERGROUND PROJECT POTENTIAL FOR UNDERGROUND MINING INVENTORY EXTENSION Testing high grade shoots 100-200m vertically below ultimate open pit design depth Holes drilled to date are encouraging for underground opportunities 57 holes for 9,840m of RC drilled in Q1 - high
Slide 12: Rosemont Main Pit Underground Project – Drill Results in Q1
ROSEMONT MAIN PIT 1212 UNDERGROUND PROJECT DRILL RESULTS IN Q1 Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit Gold mineralised quartz-dolerite unit is approx 80m wide. Q1 Results (all outside reserves): 3m @ 54.63g/t from 151m 2m @ 49.45g/t from 52m 2m @ 44.45g/
Slide 13: Drill Outs Complete So Focus Returns to Regional Exploration
DRILL OUTS COMPLETE SO FOCUS 13 13 RETURNS TO REGIONAL EXPLORATION NEXT 6 SIGNIFICANT SCALE REGIONAL TARGETS Post successful delivery of Maiden Reserve at Tooheys Well, focus has returned to generating next suite of regional exploration targets. 6 new regional targets generated from data review
Slide 14: McPhillamys (NSW)
14 McPHILLAMYS (NSW) 14 ORGANIC GROWTH PROJECT Located in Central-West NSW Well established gold mining district Cadia, Cowal, Northparkes +45Moz* Gold resource 2.31Moz Gold reserve 2.03 Moz One of Australia’s larger undeveloped open pit opportunities PFS completed showing high quality
Slide 15: McPhillamys Process Water Options – Mt Piper and Springvale
15 McPHILLAMYS 15 PROCESS WATER OPTIONS Option 1 – Water Supply from Mt Piper Power Station and Springvale Mine Non-binding heads of agreement for supply & offtake of 4-5GLpa of water for a 7Mtpa processing facility Water available from middle of 2019 with a 10 year supply term and further 10 ye
Slide 16: McPhillamys Process Water Options – Groundwater Access Licenses
16 McPHILLAMYS 16 PROCESS WATER OPTIONS Option 2 – Groundwater Access Licenses Contractually secured 4.5GLpa of Water Access Licenses over ground water approx. 80km from McPhillamys Represents a viable and secured alternative source of water supply sufficient for 7mtpa operation McPhillamys Mt P
Slide 17: McPhillamys Maiden Reserve Reported September 2017
17 McPHILLAMYS 17 MAIDEN RESERVE REPORTED SEPTEMBER 2017 Infill Drilling Completed 44,000m of drilling over the last 9 months Reduced drill pattern to 50x25m (nominal) Maiden Ore Reserve Category Tonnes Grade Ounces (> 0.4g/t lower cut) (MT) (g/t) (000’s) Probable Ore Reserve 60.1 1.05 2,034 O
Slide 18: McPhillamys PFS Generates Strong Project
18 McPHILLAMYS 18 PFS GENERATES STRONG PROJECT – ORGANIC GROWTH WITH QUALITY & SCALE PFS Results Capital Cost A$m Operating Cost Ore milled (Million tonnes) 60.1 Treatment plant 142.3 A$/tonne Grade (g/t) 1.05 Water pipeline 38.0 A$/oz Mining Recovery (%) 85 Power supply 8.7 LOM gold 15.46 produced
Slide 19: McPhillamys Robust Processing Flowsheet & Simple Open Pit Mining
19 McPHILLAMYS 19 ROBUST PROCESSING FLOWSHEET & SIMPLE OPEN PIT MINING 7 MTPA PROCESSING PLANT Operating Cost Plant design is simple & robust, A$/tonne broadly comprising: A$/oz Three stage crushing Mining Grinding and classification 15.46 Gravity recovery & ultrafine 537 grinding UFG for 4%
Slide 20: McPhillamys Indicative Development Timetable
20 McPHILLAMYS 20 INDICATIVE DEVELOPMENT TIMETABLE Milestone Target Date Complete Definitive Feasibility Dec 2017 Quarter Study (DFS) Submit Environmental Impact Mar 2018 Quarter Statement (EIS) Approval by NSW Department Sept 2018 Quarter Planning & Environment (DPE) Commence plant construction Dec
Slide 21: McPhillamys Bolt-On Acquisition Expected to Deliver Further Value
21 McPHILLAMYS 21 BOLT ON ACQUISITION EXPECTED TO DELIVER FURTHER SIGNIFICANT VALUE Acquired Blayney Gold Project for A$3.25m Contiguous to the McPhillamys project and hosts two quoted Mineral Resource Estimates*: • Discovery Ridge: 13.84Mt at 1.1g/t for 501koz • Bald Hill: 37.0Mt at 0.5g/t for
Slide 22: Recap of Presentation
RECAP OF PRESENTATION 2222 Q1 gold production 91,921 ounces at AISC of A$861/oz Production 2% higher than Q4 (90,428oz) and run rate at top of FY18 guidance Q1 AISC below bottom of guidance range - Gloster & Erlistoun strip ratios tapering Cash-flow from operations $62.9m for Q1 (Q4: $74.2m)
Slide 23: JORC Compliant Ore Reserve Estimates March 2017
APPENDIX 1 JORC COMPLIANT 23 23 ORE RESERVE ESTIMATES 31 MARCH 2017 Gold Proved Probable Total Ore Reserve Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Person3 (g/t)2 (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Moolart W
Slide 24: JORC Compliant Mineral Resources March 2017
APPENDIX 2 24 24 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2017 Gold Measured Indicated Inferred Total Resource Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Person2 (g/t) (Mt) (g/t) (koz) (Mt) (g/t)