Red 5 — Investor Presentation (June 2016)
23 slides from Red 5's investor presentation, June 2016
Slide 1: A growing, low-cost gold producer in the Philippines
A growing, low-cost gold producer in the Philippines Investor Presentation – June 2016 Mark Williams, Managing Director ASX Code: RED 1
Slide 2: Presentation Overview: 5 Key Pillars
Presentation Overview: 5 Key Pillars ASX-listed gold producer operating in the Philippines 1. Low-cost production from open pit operations at Siana – Projected to achieve higher end of FY2015/16 guidance at 57-60,000oz – Operating cost profile expected to reduce with expected significant reduction i
Slide 3: Corporate Snapshot
Corporate Snapshot Unhedged and debt-free ASX-listed gold producer operating in the Philippines ASX Code RED Directors and Management Share price (as at 10 June 2016) A$0.088 Kevin Dundo – Chairman Issued shares 761.9M Mark Williams – Managing Director Market capitalisation (at 8.8 cps) ~A$67.0M Mar
Slide 4: Siana Gold Project – Location
Siana Gold Project – Location Located in a highly prospective and well-established mining region 4
Slide 5: Open Pit Mining Schedule and Production Guidance
Open Pit Mining Schedule and Production Guidance Open pit on track to achieve guidance with reducing cost profile 1. 2015/16 financial year forecast production profile: Low cost open pit Open Pit Update and FY 2017 Guidance production Quarter Estimated Au oz recovered 2. September 2015 quarter (Actu
Slide 6: Siana – Underground Feasibility Study
Siana – Underground Feasibility Study A blueprint to deliver future growth at Siana 1. Updated Feasibility Study completed in Low cost open pit June 2016 by underground mining production consultants Mining One Pty Ltd: 2. – Forecast production of ~60,000ozpa over Underground initial 8-year product
Slide 7: Siana – Underground Resources & Reserves
Siana – Underground Resources & Reserves Underpins robust long-term underground mine development 1. Siana Underground deposit: Low cost open pit production Indicated and Inferred Mineral Resource of 3.8Mt @ 5.8g/t 2. Au for 704,000oz Underground development Maiden Probable Ore Reserve of 3.01Mt
Slide 8: Siana – Underground Production Profile
Siana – Underground Production Profile Robust economics with relatively modest capital cost estimate 1. 600,000 7.00 Projected 12-month Low cost open pit timeline to access production 6.00 underground ore 500,000 Potential to fund Total Ore Production & Grade 2. 5.00 Underground development 400,
Slide 9: Siana – Underground Mining Method
Siana – Underground Mining Method A blueprint to deliver future growth at Siana 1. Mine plan based on use of Low cost open pit a conservative short up- production hole retreat mining method with cemented 2. Underground paste-fill for ore extraction development Proven mining method 3. with good p
Slide 10: Siana – Long-Term Underground Mine Plan
Siana – Long-Term Underground Mine Plan Includes assessment of entire resource beneath the Siana open pit 1. Feasibility Study also considered Low cost open pit technical and economic viability production of the entire UG resource – including Indicated and Inferred 2. Underground material developm
Slide 11: Key Parameters
Key Parameters From updated Underground Feasibility Study Financial Model 1. Summary of Key Parameters from Underground Feasibility Low cost open pit Study Financial Model production Life of Mine (LOM) including development Years ~9 2. Underground LOM Ore Mined Mt 3.8 development Maximum Plant Feed
Slide 12: Major Capital Expenditure Items for FY 2016-17
Major Capital Expenditure Items for FY 2016-17 Estimated costs Short-term loan facility of 1. • Open Pit Development A$17.2M Low cost 300 million Philippine open pit production • Underground Development A$13.6M pesos (~A$8.8M) secured 2. • Paste-Fill Plant A$18.2M from Philippines-based Undergroun
Slide 13: Siana Underground – Major Project Risks
Siana Underground – Major Project Risks Risk Management Strategies 1. Risk Area Risk Mitigation Strategies Low cost open pit production • Water ingress into Upgrade open pit dewatering capability to 1000 litres/second underground mine Install additional four 250m deep water bores in West Wall 2.
Slide 14: Siana Underground – Major Project Risks
Siana Underground – Major Project Risks Risk Management Strategies 1. Risk Area Risk Management Strategies Low cost open pit production • Development rates Conservatively targeting advance rates of 70m per month in the decline and 30m per month in any ore drive 2. Underground Commence portals ea
Slide 15: The Future – Exploration and Growth
The Future – Exploration and Growth Surigao del Norte – one of the most mineralised provinces in one of the most mineralised countries globally 1. • Exploration targets identified Low cost open pit production • Increase in near-mine and regional exploration activities Near-mine: 2. Underground dev
Slide 16: Mapawa Project
Mapawa Project Maiden resource paves the way for Scoping Study; longer term exploration upside 1. Low cost 20km north of Siana open pit production JORC 2012 Indicated and Inferred Mineral Resource for LSY deposit of 2. Underground 8.8Mt @ 1.0g/t Au for 289,000oz development Resource based on 1
Slide 17: Mapawa Project
Mapawa Project Scoping Study paves the way for engineering studies; longer term exploration upside 1. Low cost Successful 2016 Scoping Study indicates open pit potential to develop an initial open pit production operation based on the Mapawa LSY 2. deposit, with ore delivered by road to Undergroun
Slide 18: Processing Plant
Processing Plant Only modern operating gold plant in a highly endowed world-class mining region 1. Low cost Modern 1.1Mtpa gravity and carbon-in-leach open pit production (CIL) processing facility Constructed in 2011 2. Underground development Heart of the plant is an Outotec Mill (1.1Mtpa nam
Slide 19: Management Track Record – Recent Achievements
Management Track Record – Recent Achievements Realising our potential at Siana and beyond 1. Low cost Gold production on track to achieve higher end of open pit FY2016 guidance at 57-60,000oz production Operational improvements completed – upgrade of haul roads, re-build of ring drainage system
Slide 20: Sustainable Development Initiatives
Sustainable Development Initiatives Strong commitment to health and safety, community and environmental programs 1. Support continues in the areas of: Low cost open pit • Health production • Community education 2. • Welfare • Agricultural Underground developmenjt • Infrastructure 3. • Clean water Ex
Slide 21: Summary: Key Investment Takeaways
Summary: Key Investment Takeaways ASX-listed gold producer operating in the Philippines 1. Low-cost production from open pit operations at Siana – Projected to achieve higher end of FY2015/16 guidance at 57-60,000oz Red 5 has a clear – Operating cost profile expected to reduce with expected signific
Slide 22: Disclaimer and Competent Person’s Statement
Disclaimer and Competent Person’s Statement Competent Person’s Statement for JORC 2012 Mineral Resource and Ore Reserve The information in this report that relates to Mineral Resources and Ore Reserves for the Siana Open Pit is extracted from the report titled Siana Open Pit Mining Review and Reserv
Slide 23: Thank you.
Thank you. Mark Williams (Managing Director) Kevin Dundo (Chairman) Web: www.red5limited.com E-mail: info@red5limited.com 23 23