Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Corporate Update (May 2013)
22 slides from Hillgrove Resources's corporate update, May 1, 2013
Slide 1: Performance Update from Hillgrove's Kanmantoo Operation
For personal use only PERFORMANCE UPDATE FROM HILLGROVE'S KANMANTOO OPERATION GREG HALL IIIII CEO & MANAGING DIRECTOR 1 MAY 2013
Slide 2: Australian and Indonesia Focus: Production and Exploration Assets
AUSTRALIAN AND INDONESIA FOCUS PRODUCTION AND EXPLORATION ASSETS Bird’s Head project Production and cash flow in Australia For personal use only Sumba project Kanmantoo Copper Mine (100% owned), South Australia Rim-of-Fire exploration upside in Indonesia Sumba gold project (80% owned) Kanman
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION AT 31 JANUARY 2013 ASX listed: HGO For personal use only Shares on issue: 1,022.8 million SHAREHOLDER DISTRIBUTION Cash and cash equivalents: AUD 27.4 million Share price: AUD 0.135* Market capitalisation: AUD 138.1 million* AUD 50.
Slide 4: Kanmantoo Copper Mine and Exploration Area
PERFORMANCE UPDATE KANMANTOO COPPER MINE AND EXPLORATION AREA 100%-owned by Hillgrove For personal use only 55km from Adelaide, South Australia Mining Lease is within 500km2 Exploration Exploration Area EL4401 License, and relatively unexplored Exploration potential considered high The pro
Slide 5: Highlights
PERFORMANCE UPDATE HIGHLIGHTS Revenue for the full year of $115.4 million – and EBITDA at $17.1 million For personal use only Full year Net Loss after tax of $11.8 million, second half profit of $2.9 million Significant investment in CAPEX for Kanmantoo project with new primary crusher and tai
Slide 6: Safety – Month Rolling Kanmantoo TRIFR
PERFORMANCE UPDATE SAFETY – 3 MONTH ROLLING KANMANTOO TRIFR For personal use only 6
Slide 7: Kanmantoo Copper Mine Production Output Since Start Up
PERFORMANCE UPDATE KANMANTOO COPPER MINE PRODUCTION OUTPUT SINCE START UP For personal use only Copper Production Total BCM Movements DMT OOO's 1,600 600 1,400 500 1,200 400 1,000 800 300 600 200 400 100 200 ‐ 0 Contained Copper Total BCM Movements 7
Slide 8: Supporting Local Area and Building Diversity in South Australia
PERFORMANCE UPDATE SUPPORTING LOCAL AREA AND BUILDING DIVERSITY IN SOUTH AUSTRALIA For personal use only Hillgrove Staff Hillgrove Staff Distribution Gender Diversity 16% 13% 48% 36% 87% Local Semi Local Metro Male Female 8
Slide 9: Kanmantoo Copper Mine Production Output
PERFORMANCE UPDATE KANMANTOO COPPER MINE PRODUCTION OUTPUT Period FY 2012 H1 H2 FY 2013 H1 vs H2 Analysis Ore to ROM from Pit (kt) 495 1,030 1,191 2,221 For personal use only Ore to long term (kt) 1,267 546 303 849 Significant increase in stockpiles Mined Waste (kt) 7,446 5,322 6,455 11,777 total
Slide 10: Financial Summary
PERFORMANCE UPDATE FINANCIAL SUMMARY Revenue of $115.4 million For personal use only H2 VS H1 ANALYSIS Hillgrove Resources underlying EBITDA of $17.1 million – a year of two halves: Significant improvement to Period H1 H2 FY 2013 all key financial $’000 $’000 $’000 metrics in H2: Revenue 50,149
Slide 11: Cashflow
PERFORMANCE UPDATE CASHFLOW For personal use only A$140m 106.8 75.3 A$105m A$70m 38.1 15.0 5.9 A$35m 3.1 2.9 27.4 17.8 20.7 8.6 1.1 A$0m Opening Cash Cash Property, Exploration Other Capital Borrowings Repayment Repayment Deferred Closing Balance Receipts Payments Plant, and Investing Raising of of
Slide 12: Hedge Prices Realised Significantly Higher Than Current Prices
PERFORMANCE UPDATE HEDGE PRICES REALISED SIGNIFICANTLY HIGHER THAN CURRENT PRICES For personal use only Hillgrove AUD Copper Position A$10,000 A$9,000 A$8,000 A$7,000 A$6,000 Cash Price (A$/mt) Committed Hedging (A$/mt) ^ Production started December 2011 12
Slide 13: Strong Hedge Book
PERFORMANCE UPDATE STRONG HEDGE BOOK For personal use only Strong hedge book provides certainty for our cashflows and revenue in future periods Approximately 41,000 tonnes of copper swaps Approximately 70% of forecast copper production hedged up until June 2015 at an average price at circa A$7
Slide 14: Events After Financial Year Reporting Date
PERFORMANCE UPDATE EVENTS AFTER FINANCIAL YEAR REPORTING DATE New primary crushing circuit installed ahead of plan and within budget, with For personal use only commissioning currently underway Removal of ancillary crushing equipment from ROM will lead to lower unit costs and a substantial incre
Slide 15: Extension of Kanmantoo Mine Life
PERFORMANCE UPDATE EXTENSION OF KANMANTOO MINE LIFE New LOM planning with long-term pit optimisation provides a reasonable basis For personal use only for indicative future planning and likely extension of mine life to 2023 Estimated period of operation initially increasing from 6.5 to 10 years
Slide 16: Indonesia – Birds Head Project Attributes
PERFORMANCE UPDATE INDONESIA – BIRDS HEAD PROJECT ATTRIBUTES Hillgrove has an 80% beneficial interest in PT Akram through a JV Agreement For personal use only Moving to a corporatised ownership structure – PMA conversion in progress IUP rights granted to March 2017 cover almost 1,000km² Hill
Slide 17: Indonesia – Sumba Island Project Attributes
PERFORMANCE UPDATE INDONESIA – SUMBA ISLAND PROJECT ATTRIBUTES Hillgrove has an 80% direct shareholding in PT Fathi Resources through For personal use only Singapore holding structures, which has been converted to PMA status IUP rights granted to December 2016 cover ~1,000km² – reducing to 750km
Slide 18: Sensitivities and Guidance
PERFORMANCE UPDATE SENSITIVITIES AND GUIDANCE SENSITIVITIES TO REVENUE For personal use only AUD/USD +/- 5% AUD 2.8 million Copper Price +/- 10% AUD 4.5 million Gold Price +/- 10% AUD 0.8 million GUIDANCE FOR FY2014 Production Concentrate 75,000 – 85,000 dry metric tonnes Copper 18,000 – 2
Slide 19: Summary
PERFORMANCE UPDATE SUMMARY Kanmantoo now on track to meet guidance For personal use only for FY14 Revised finance arrangements complete Positive cash generation in FY14, with significant copper price certainty as a result of the strong copper hedge book Continued investment in infrastructure
Slide 20: Key Contacts
PERFORMANCE UPDATE KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director or 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 8
Slide 21: Disclaimer
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 c
Slide 22: Disclaimer: Competent Persons
DISCLAIMER COMPETENT PERSONS The information in this release that relates to Exploration Results and Exploration Targets for the Kanmantoo Copper Mine is based For personal use only upon information compiled by Mr Steven McClare, who is a Member of The Australasian Institute of Mining and Metallurgy