Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (July 2015)
37 slides from Regis Resources's investor presentation, Jul 16, 2015
Slide 1: Conference call and presentation ASX cover letter
_____________________________________________________________________________________________________ ABN 28 009 174 761 www.regisresources.com Level 1 1 Alvan Street For personal use only Subiaco WA 6008 Australia P 08 9442 2200 F 08 9442 2290 16 July 2015 Manager Announcements Company Announcement
Slide 2: Regis Resources Ltd Investor Presentation July 2015
For personal use only 1 1 REGIS RESOURCES LTD INVESTOR PRESENTATION JULY 2015
Slide 3: Disclaimer & Competent Persons Statement
DISCLAIMER & COMPETENT PERSONS 22 STATEMENT For personal use only 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
Slide 4: Outline of Agenda
17 JULY 2015 INVESTOR UPDATE For personal use only 3 3 OUTLINE OF AGENDA Managing Director Mark Clark to provide update on: • Balance sheet and capital management initiatives • Production review for Q4 and FY 2015 • Production guidance and outlook for 2016 • Resource and Reserve update • Growth oppo
Slide 5: Corporate
4 CORPORATE 4 For personal use only CAPITAL STRUCTURE SHAREHOLDERS ASX code RRL Australian insto Shares on issue 500m 20% 27% Newmont Last price $1.14 8% North American insto Market capitalisation A$539m 12% 19% Directors and mgt Daily turnover (no. shares) 4.1m 14% UK & Europe insto Unlisted option
Slide 6: Balance Sheet
5 BALANCE SHEET 5 For personal use only NET CASH POSITION BUILDING STRONGLY 80 60 40 20 $ Millions Cash - Debt (debt includes the deferred contractor payment amounts negotiated Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 for flood affected period of operations) Net cash/(debt) -20 -40 -60 Stron
Slide 7: Capital Management
6 CAPITAL MANAGEMENT 6 For personal use only DIVIDEND Targeting a final dividend in relation to FY2015 earnings of 5 – 7 cents per share* Quantum to be determined by board at time of release of financial results in Sept15 Payment in December 2015 quarter Long term intentions are to establish
Slide 8: Review of 2015 Operations
REVIEW OF 2015 OPERATIONS For personal use only 7 7 DUKETON OPERATIONS DELIVER STRONG CASHFLOW Q4 2015 FY2015 OPERATIONS Ore mined (Mbcm ) 1.05 4.65 Q4 production in line with updated guidance & FY2015 production within original guidance Waste mined (Mbcm) 6.48 23.70 Q4 throughput 2.54MT (>10MTp
Slide 9: Production Guidance 2016
PRODUCTION GUIDANCE 2016 For personal use only 8 8 GUIDANCE Production: 275,000 – 305,000 ounces Cost: AISC A$970 – A$1,070/oz Expansion capital: A$15-20 million GUIDANCE MID-POINT STATISTICS* Moolart Well Rosemont Garden Well Total MID POINT SUMMARY Ore mined (Mbcm ) 1.5 1.0 2.2 4.7 Production 29
Slide 10: 2015 Reserve Update
9 2015 RESERVE UPDATE 9 For personal use only Group Resources 249.1MT at 0.95g/t for 7.63 million ounces Duketon Reserves 59.1MT at 1.06g/t for 2.01 million ounces CHANGES IN RESERVES MOOLART AREA ROSEMONT GARDEN WELL ↑76koz on 2014* ↑117koz on 2014* ↓391koz on 2014* Replaced 2015 depletion Replaced
Slide 11: Garden Well: New Pit Design to Deliver Enhanced Economics
10 GARDEN WELL 10 For personal use only NEW PIT DESIGN TO DELIVER ENHANCED ECONOMICS 1.30 7.00 MILLED GRADE STRIPPING RATIO 1.20 6.00 1.10 5.00 1.00 0.90 4.00 0.80 3.00 0.70 2.00 0.60 0.50 1.00 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Grade (g/t) Forecast Grade (g/t) 2016 Stripping ra
Slide 12: Garden Well: Southern End of 2014 Pit Design
11 GARDEN WELL 11 For personal use only SOUTHERN END OF 2014 PIT DESIGN – OUT FOR NOW BUT UNDER REVIEW 2014 reserve pit design 2015 reserve pit design Southern end of pit omitted from reserves in 2015 based on 2014/15 reconciliation • Significantly reduces LOM stripping ratio and improves per ounce
Slide 13: Duketon Near Term Growth
DUKETON NEAR TERM GROWTH For personal use only 12 12 CURRENT MINE LIVES Project Mine Life Annual Mill Capacity Garden Well 7 years ≈ 5 MT Rosemont 6 years ≈ 2 MT Moolart Well 3 years ≈ 3 MT ≈ 10 MT MINE LIFE EXTENSION OPPORTUNITIES – NEXT 12 MONTHS FOCUS Project Extension Opportunity Status Moolart
Slide 14: Acquisitions for Growth: Moolart Well Area
13 AQCUISITIONS FOR GROWTH 13 For personal use only MOOLART WELL AREA 10km Mine life 3 years Successful reserve replacement of production in recent years through oxides and satellites Moolart Well Recent strategic transactions to further bolster this operation: Acquisition of 365koz Resource*
Slide 15: Gloster Gold Deposit: Acquiring for Moolart Well
14 GLOSTER FAMOUS BLUE GOLD GEOLOGY DEPOSIT 14 For personal use only ACQUIRING FOR MOOLART WELL Gloster located 26km west of Felsic Volcanics Regis Tenure Moolart Well Historic resource* at 0.5g/t lower cut: Category Tonnes Grade Ounces Indicated 7,523,000 1.37 332,000 Inferred 756,000 1.35 33,0
Slide 16: Gloster Gold Deposit
15 GLOSTER GOLD DEPOSIT 15 For personal use only Hole ID Northing Easting EOH Metres Metres Interval Au g/t Depth From To JWMFABB198 6949960 408810 64 24 36 12 9.25 JWMFABC21 6950530 408622 120 36 46 10 7.82 JWMFABC138 6950682 408342 165 28 32 4 15.80 JWMFABC165 6950730 408452 132 30 43 13 4.21 JWMF
Slide 17: Gloster Gold Deposit
16 GLOSTER GOLD DEPOSIT 16 For personal use only Oxidised Diorite
Slide 18: Gloster Gold Deposit
17 GLOSTER GOLD DEPOSIT 17 For personal use only Oxidised Diorite
Slide 19: Duketon Gold Exploration JV
DUKETON GOLD EXPLORATION JV For personal use only 1818 EXPLORING FOR MOOLART WELL Agreement with Duketon Mining 10km (ASX:DKM) to form DGEJV signed July 2015 Regis to spend $1m over 2 years to earn 75% on a decision Moolart Well to mine* JV area covers felsic volcanics in the core of DGB aroun
Slide 20: Coopers Gold Prospect
19 COOPERS GOLD PROSPECT 19 For personal use only ANOTHER BOLT-ON FOR MOOLART WELL Gold trend poorly tested Dolerite 11km south of Moolart Well and 600m Dolerite north of Dogbolter Gold mineralisation defined by earlier drilling over 400m strike in Dolerite and Diorite • defined in Aircore and R
Slide 21: Coopers Gold Prospect
20 COOPERS GOLD PROSPECT 20 For personal use only Hole No Northing Easting Hole From To Interval Gold (mN) (mE) Depth (m) (m) (m) g/t (m) RRLCPRC005 6934420 434880 88 48 56 8 2.71 RRLCPRC006 6934420 434900 103 68 70 2 23.88 RRLCPRC007 6934420 434920 118 89 94 5 5.99 RRLCPRC008 6934420 434940 133 106
Slide 22: Coopers Gold Prospect: Drilling Cross Section
21 COOPERS GOLD PROSPECT 21 For personal use only DRILLING CROSS SECTION Moderate east dipping high grade gold shear zone Dolerite-diorite host rocks 50m Oxidised to 90m depth OUTLOOK Further drilling planned for Sept15Q • 40 RC holes on 5 lines (4,500m) • Testing north extent and fresh rock
Slide 23: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES 22 22 GARDEN WELL & ROSEMONT AREA For personal use only 2015/16 PRIORITIES Baneygo • Follow up recent exciting high grade results • Resource delineation & expansion • Further exploration of the poorly explored 12km Rosemont- Baneygo shear Rosemont Underground • Diamo
Slide 24: Baneygo Gold Project
23 BANEYGO GOLD PROJECT 23 For personal use only 6907450mN Section EXCITING HIGH GRADE RESULTS POINT TO Baneygo NEW DUKETON PROJECT Resource 8k oz 12km south of Rosemont Gold hosted in Quartz Dolerite similar to 12km to 6906700mN Section Rosemont Rosemont Baneygo Beacon Baneygo 43koz Au Resour
Slide 25: Baneygo Gold Project: Highlights of Recent Drilling
24 BANEYGO GOLD PROJECT 24 For personal use only HIGHLIGHTS OF RECENT DRILLING Hole No Northing Easting Hole From To Interval Gold (mN) (mE) Depth (m) (m) (m) g/t (m) RRLBYRC002 6907462 431925 114 50 83 33 8.35 RRLBYRC023 6906712 432197 102 35 42 7 8.96 RRLBYRC024 6906721 432235 168 87 110 23 2.55 R
Slide 26: Baneygo Gold Project
25 BANEYGO GOLD PROJECT 25 For personal use only
Slide 27: Baneygo Gold Project
26 BANEYGO GOLD PROJECT 26 For personal use only Baneygo Baneygo Beacon Baneygo South Sydney Mint North Significant scope for material resource increase in the 3km area of historical resources Large gaps in drilling over the 3km strike
Slide 28: Rosemont to Baneygo: Regional Scale Opportunity
27 ROSEMONT TO BANEYGO 27 For personal use only REGIONAL SCALE OPPORTUNITY Rosemont Rosemont to Baneygo trend 20km poorly tested. Quartz dolerite host rock at 22m @ 2.6g/t, f 22m Rosemont continues to Baneygo and 10km beyond to the south King John Garden Well Current RC drilling around histori
Slide 29: Rosemont
28 ROSEMONT 28 use only 8m @ 4.1g/t For personal 18m @ 3.8g/t 400m 12m @ 7g/t 3m @ 8.2g/t 3m @ 16.2g/t 5m @ 16.9g/t 4km Area subject to DD for underground Resource potential • Rosemont gold mineralisation is hosted in a quartz dolerite unit. • Rosemont is open at depth and along strike & offers sign
Slide 30: Rosemont U/G Study Area
ROSEMONT U/G STUDY AREA For personal use only 29 29 S N 77000mN 77500mN 78000mN Current Mined Pit - Apr15 Reserve Open Pit Design 500mRL 500mRL 4m @ 39.9g/t 9m @ 5.5g/t 6m @ 5.3g/t Open 3m @ 11.1g/t 21m @ 8.8g/t 31m @ 3.5g/t LEGEND 250mRL 250mRL Proposed UG Areas 6m @ 5.9g/t Planned Diamond drilling
Slide 31: Tooheys Well Gold Prospect
TOOHEYS WELL GOLD PROSPECT For personal use only 3030 A BOLT-ON FOR GARDEN WELL Garden Well Shear Zone continues to Tooheys Well Located 2.5km south of Garden Well Gold shear zones hosted by chert & shale Previous drilling returned significant gold intercepts on a western structure Section
Slide 32: Tooheys Well Gold Prospect: Drilling Cross Section
TOOHEYS WELL GOLD PROSPECT For personal use only 31 31 DRILLING CROSS SECTION Moderate east dipping high grade gold shear zone Chert and shale host rocks Weathered to 80m OUTLOOK Drilling to commence in Sept15Q: • Test continuity of shear zone 750m to the south • Target gold mineralisation i
Slide 33: Russells to Reichelts Gold Trend
RUSSELLS TO REICHELTS 32 32 GOLD TREND For personal use only Garden Well Processing Plant Old Peculiar Gold mineralised shear zone poorly tested along strike Russell’s Find 55koz Au Resource • Aircore drill testing on 400m spaced traverses along the mineralised Reichelts Find shear zone 17koz Au Res
Slide 34: Recap of Regis Update
RECAP OF REGIS UPDATE For personal use only 33 33 Q4 2015 production 75koz at cash cost of A$873/oz & AISC of A$1,148/oz FY2015 production 310koz at cash cost of A$826/oz & AISC of A$994/oz FY2016 guidance 275-305koz at AISC A$970-1,070/oz Midpoint 290koz at AISC A$1,020/oz At current gold
Slide 35: Question & Answer
QUESTION & ANSWER For personal use only 34 34
Slide 36: JORC Compliant Mineral Resources March 2015
JORC COMPLIANT MINERAL RESOURCES 35 35 31 MARCH 2015 For personal use only Group Mineral Resources as at 31 March 2015 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
Slide 37: JORC Compliant Ore Reserves March 2015
JORC COMPLIANT ORE RESERVES 36 36 31 MARCH 2015 For personal use only Group Ore Reserves as at 31 March 2015 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) (M