Saracen Mineral Holdings Limited
Saracen Mineral — Investor Presentation (May 2015)
24 slides from Saracen Mineral's investor presentation, May 2015
Slide 1: Australia's next mid-tier gold producer
ASX Code: SAR Australia’s next mid-tier gold producer Investor Presentation: Europe, Asia – May 2015 Raleigh Finlayson Managing Director
Slide 2: Qualification
Qualification This presentation has been prepared by Saracen Mineral Holdings Limited (Saracen or the Company) based on information from its own and third party sources and is not a disclosure document. No party other than the Company has authorised or caused the issue, lodgement, submission, despat
Slide 3: Growing Production, Growing Cash-Flow
Growing Production, Growing Cash-Flow • Transformation to mid-tier gold producer underway • On track to produce >160koz in FY 2015 • Gold production set to double to ~300koz at AISC <A$1075/oz within two years, driving substantial increase in free cash-flow • Two operational centres in Western Austr
Slide 4: Corporate Overview
Corporate Overview Corporate Structure Board & Management ASX Code SAR Non-Executive Chairman Geoff Clifford Shares 792.8m Managing Director Raleigh Finlayson Share Price $0.47 Non-Executive Director Mark Connelly As at 25 May Market Cap A$372m 2015 Non-Executive Director Barrie Parker Enterprise Va
Slide 5: High Grade, Low Cost Production in the Heart of WA
High Grade, Low Cost Production in the Heart of WA Carosue Dam Operations, NE of Kalgoorlie • Strong operational track record since 2009 • Producing at ~160kozpa • Base load transitioning to three new UG mines • Karari, Deep South, Whirling Dervish, Thunderbox Project, SE of Leinster Thunderbox Caro
Slide 6: Saracen: The Key Value-Drivers
Saracen: The Key Value-Drivers 1. Produce – Carosue Dam FY15 on track for >160koz, FY16 guidance in coming weeks 2. Develop – Thunderbox On time and on budget, Stage 1 adds ~125koz pa over ~4.5 years 3. Grow – Earnings visibility Potential +4 year mine life at Karari, +10 year mine life at Thunderbo
Slide 7: Carosue Dam – The Engine Room
Carosue Dam – The Engine Room • 2.4Mtpa CIL plant, operated since 2010 with ore sourced from Whirling Dervish OP and Red October UG: • Red October – Currently ~60kozpa @ ~6-7g/t Au • Whirling Dervish – Harvesting cash to support future growth • Transitioning to larger, long-life underground mines as
Slide 8: Production Guidance – Next 12 Months
Production Guidance – Next 12 Months Gold production – FY 2015: • Original guidance range of 145-155koz • ~121koz delivered FY 2015 to date • On track for >160koz Gold production – FY 2016: • Guidance to be advised in coming weeks • Anticipate similar output to FY15 • Mill feed in ~ equal proportion
Slide 9: Karari – Emerging High-Grade Discovery Just 500m from the Mill
Karari – Emerging High-Grade Discovery Just 500m from the Mill Ore stockpile will grow to >2.4Mt & 100koz ~30 June 2015 @ < A$800/oz AISC i.e. ~A$72m deferred FCF 7
Slide 10: Karari – A Size System
cA Saracen 1 250mN e@ KRRC184 14mM@ 7m @ 3.4git Limit of Open Pit Re 17m @ T 2 g z Open Pit Production 8.67Mt @ 1.559/ for 432,300 az /Limit of Resource a/ (as at 9 October 2014) 250mRL-| / Ore Reserves * (as at 9 October 2014) ja e KRRC333 A 10m@1.2g/t J A A KRRC323 1 20m @ 3.5g/t AS 25m @7.9git ee
Slide 11: Karari – A Size System
Potential >4 years: Karari – A Size System • Multiple HG lodes • Attractive widths • New discoveries • UG much bigger than previously understood • Maiden Reserve late 2015 • Drilling continues 8
Slide 12: Red October – High-Grade Production
Red October – High-Grade Production Average +7g/t production 10
Slide 13: Deep South – Production ready
Deep South – Production ready 11
Slide 14: Whirling Dervish OP – Harvest time
Whirling Dervish OP – Harvest time FY2013 FY2014 FY2015 Mining > milling rate 12
Slide 15: Thunderbox – Taking Gold Production to 300kozpa
Thunderbox – Taking Gold Production to 300kozpa • Existing 2.5Mtpa CIL plant to be refurbished • A$65M pre-production CAPEX (internally funded) • Resource recently upgraded from 1.6Moz to 2.0Moz • Stage 1 OP – 596koz contained, A$1032/oz AISC, 4-5 year mine life • Outstanding future growth potential
Slide 16: Thunderbox – Potential >10 years
Thunderbox – Potential >10 years Deliver Stage 1 on Thunderbox Production Profile Stages 1 - 3 time and on budget 160,000 $1,600 Potential >10 years: 140,000 $1,400 Gold Production (oz) • Including stage 2/3 120,000 $1,200 • Both Zones open down-plunge 100,000 $1,000 A$/oz • Hit 55m @ 3.0g/t 80,000
Slide 17: Thunderbox – On Time and On Budget
Thunderbox – On Time and On Budget FY2015 FY2016 FY2017 Thunderbox Operations Mar Q Jun Q Sep Q Dec Q Mar Q Jun Q Sep Q Dec Q Mar Q Jun Q Feasibility Study - Stage 1 Development Decision On track Approvals Implementation & Mobilisation Pre-Strip Mining - Zone A Mining - Zone A Pre-Strip Mining
Slide 18: Thunderbox – Open down plunge
Thunderbox – Open down plunge 15
Slide 19: Thunderbox – Consistent & persistent
Thunderbox – Consistent & persistent 16
Slide 20: The Vision – Joining the Exclusive Ranks of ASX Mid-Tier Miners
The Vision – Joining the Exclusive Ranks of ASX Mid-Tier Miners 1,300 Join the ASX mid-tier ranks – How? 1,200 1,100 • ~300koz pa 1,000 • < A$1,075/oz AISC Mid-tier Juniors 900 • +5 years LOMP Market cap (A$m) 800 • 100% from organic growth 700 • Funded from internal cash flows 600 500 400 300 200 1
Slide 21: Share Price Catalysts
Share Price Catalysts June 2015 Q • Drilling Results – Karari • Drilling Results – Red October • Drilling Results – Blue Manna Proactive marketing • Feasibility – Deep South UG • May – Europe / Asia • FY16 Guidance • August – Diggers & Dealers, Site visits September 2015 Q • September – Denver Gold
Slide 22: Advantage depth
Advantage depth 0 Peer average* Red October (SAR) Thunderbox (SAR) Whirling Dervish (SAR) Karari (SAR) Deep South (SAR) -100 -200 Depth (m below surface) -300 -400 -500 -600 -700 * Yellow bars = Saracen (SAR) underground mines 20 * Peers average includes underground mines owned by NST, EVN, SBM, RSG
Slide 23: Summary – Reasons to Invest in Saracen
Summary – Reasons to Invest in Saracen • Low-cost Australian gold miner • Two production hubs in the politically stable, secure jurisdiction of Western Australia • Production forecast to double to ~300kozpa in 2 years • Well-stocked project pipeline with increasing visibility • Outstanding explorati
Slide 24: Contact Details
Contact Details: Troy Irvin Chief Corporate Development Officer Phone: +61 8 6229 9100 Email: info@saracen.com.au Website: www.saracen.com.au
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