Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Brisbane Mining Conference 2023
32 slides from Hillgrove Resources's conference presentation, Mar 22, 2023
Slide 1: Brisbane Conference Presentation
Wednesday, 22 March 2023 BRISBANE CONFERENCE PRESENTATION For personal use only Hillgrove Resources Limited’s CEO and Managing Director Lachlan Wallace will be presenting at the Brisbane investor conference this morning, please refer to the attached presentation. Mr Wallace will be presenting at 9.3
Slide 2: Australia's Next Copper Mine
AUSTRALIA’S NEXT COPPER MINE For personal use only Lachlan Wallace CEO & Managing Director March 2023 1
Slide 3: Summary
SUMMARY For personal use only ■ FULLY FUNDED (SUBJECT TO EGM & FIRB APPROVALS) ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ 3.6Mtpa PROCESSING PLANT ON CARE AND MAINTENANCE AND ALL INFRASTRUCTURE IS ALREADY IN PLACE FOR A POTENTIAL RESTART ■ STAGE 1 HAS STRONG FIN
Slide 4: Recent Updates
RECENT UPDATES For personal use only ■ UPDATED ECONOMIC ASSESSMENT ■ EXTENDED MINE LIFE ■ >$200M FREE CASH GENERATION (POST TAX) ■ CAPEX $25M, NPV8 $165M, IRR 231% ■ FULLY FUNDED1 ■ UNDERGROUND MINE DEVELOPMENT ■ HEDGING LINES ■ EXPANSION DRILLING – INCREASE MINE LIFE & ANNUAL COPPER PRODUCTION ■ DE
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Company Overview Investment Highlights • ASX listed (‘HGO’) Australian resources company that owns and ✓ Advanced, fully permitted and funded project with key operates the Kanmantoo Copper Gold Mine in South Australia infrastructure in place for a <$30M capex
Slide 6: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Tier 1 location ✓ Ready workforce - No FIFO ✓ Close to Port Adelaide 5
Slide 7: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Surplus annual native seed production ✓ Linking rehab to regional vegetation to create greenbelt ✓ 122ha native vegetation completed 6
Slide 8: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Genuine win-win community engagement ✓ Community and government support ✓ ESG reporting to GRI, UNSDG, ICMM 7 Kanmantoo Callington Community Consultative Committee (K4C) receiving award from Premier Steven Marshall for Community Excellen
Slide 9: Plant and Infrastructure Already in Place
PLANT AND INFRASTRUCTURE ALREADY IN PLACE For personal use only ✓ 3.6Mtpa processing plant ✓ All critical spares ✓ Maintained for quick, low-cost restart 8
Slide 10: Tailings Storage Facility Already in Place
TAILINGS STORAGE FACILITY ALREADY IN PLACE For personal use only ✓ Tailings storage with approved capacity of >7Mt, well above current mine plan of 4.5Mt ✓ Further low-cost capacity available to accommodate growing mine plan ✓ All services connected (power, water). Long term power contract provides
Slide 11: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Nugent Portal Development decline and Ventilation drive underground drill platform 10
Slide 12: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Underground decline commenced 11
Slide 13: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only ✓ Decline and ventilation drive commenced ✓ Infrastructure at portal in place ✓ First copper intersected only 13m from portal! 12
Slide 14: Excellent Economics – Stage 1 Only
EXCELLENT ECONOMICS – STAGE 1 ONLY For personal use only ✓ Low capital - existing infrastructure and close proximity of lodes ✓ Low AISC - excellent geotechnical conditions and multiple headings enable efficient mining ✓ Nugent 2022 drilling increased the MRE increased by 6kt Cu metal which is not i
Slide 15: Fully Funded
FULLY FUNDED For personal use only ■ WELL FUNDED WITH NO DEBT ■ NO DEBT REPAYMENTS PROVIDES OPERATIONAL FLEXIBILITY ■ REDUCES CONVENANTS – BRINGING FORWARD DIVIDENDS ■ FUNDING PROVIDES DEVELOPMENT CONTINGENCY & FACILITATES GROWTH ■ FULLY FUNDED ■ CASH $20M ■ SPP $3M ■ EGM $7M ■ FIRB $12M ■ HEDGING ■
Slide 16: Significant Leverage to the Copper Price
SIGNIFICANT LEVERAGE TO THE COPPER PRICE For personal use only ✓ Stopes terminate in lower grade halo around high grade mineralised core. ✓ As price increases, the cut-off grade reduces, enabling additional copper mineralization to be mined for low incremental cost by simply widening stope width. ✓
Slide 17: >100% Exploration Strike Rate = Resource Growth
> 100% EXPLORATION STRIKE RATE = RESOURCE GROWTH For personal use only ✓ 143 Cu-Au intersections of economic grade and width from only 122 holes: over 100%! ✓ Mine plan does not include 6kt added to Nugent MRE in 2022 and recent drilling results in Spitfire, North Hub and South Hub ✓ Every drill pro
Slide 18: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only Stage 1 Mine plan ✓ Stage 1 includes 2 of 9 lodes to 250m below pit ✓ All 9 lodes remain open at depth and along strike 17
Slide 19: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only ✓ Drilling density limits mine plan to 250m below pit (~600mRL) but copper mineralisation has been confirmed at 500m below pit and still open. ✓ Spitfire drilled from underground in 2022 is not in current economic assessment. 18
Slide 20: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only ✓ 2021/22 drilling increased Nugent MRE by 6kt Cu metal which is not in current economic assessment. When included, it is expected to increase mine plan. ✓ Nugent remains open at depth and along strike. 19
Slide 21: Just Scratching the Surface – South Hub
JUST SCRATCHING THE SURFACE For personal use only Stage 1 Mine plan South Hub: Critchley, Paringa & Emily Star ✓ Area below Emily pit remains open 17m @ 3.6% Cu 0.6 g/t Au ✓ Drilling commenced late 2022 20 14m @ 2.8% Cu 0.3 g/t Au
Slide 22: Just Scratching the Surface – North Hub
JUST SCRATCHING THE SURFACE For personal use only Stage 1 Mine plan North Hub: North Kav & Coopers ✓ North Kavanagh lode visible in pit wall 9m @ 2.1% Cu 0.7 g/t Au ✓ Immediate low-cost access from existing pit haul road 21 10m @ 1.6% Cu 0.6 g/t Au ✓ ~200m strike length, 300m depth and still open
Slide 23: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only North Hub South Hub Kavanagh Nugent ✓ Conceptual designs indicate North Hub and South Hub can be added to the plan for low incremental cost (pending successful confirmatory drilling) ✓ Mill only 40% utilised and plenty of TSF capacity, so additional
Slide 24: News Flow
Strong news flow as we NEWS FLOW transition to producer For personal use only Indicative timetable(1) ✓ Q1-23 UPDATED MINE PLAN ✓ Q1-23 COMMENCE EARLY WORKS & MINE EXTENSION DRILLING ■ Q2-23 CONCLUDE FUNDING (EGM & FIRB) ■ Q2-23 FID & COMMENCE UNDERGROUND DEVELOPMENT ■ Q3-23 CONTINUED MINE LIFE EXPA
Slide 25: Opportunity Re-cap
OPPORTUNITY RE-CAP For personal use only ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ STAGE 1 ALREADY HAS STRONG ECONOMICS WITH SHORT PAYBACK PERIOD ■ HIGHLY LEVERAGED TO COPPER PRICE INCREASES AND RESOURCE GROWTH ■ MULTIPLE ON-LEASE INFILL DRILLING TARGETS TO FUR
Slide 26: Appendix
For personal use only Appendix 25
Slide 27: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Summary information This presentation contains summary information about Hillgrove Resources Limited (Hillgrove or the Company) and its activities as at 27 February 2023. The information in this presentation is of a general nature and does not purport to be complete nor
Slide 28: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Future performance continued The forward looking statements are subject to risks, stakeholder engagement, uncertainties and assumptions which could cause actual results, timing, or events to For personal use only differ materially from the expectations described in such
Slide 29: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Mineral Resources and Ore Reserves Estimates continued There is a lower level of geological and grade continuity confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the conversion of Inferred Resource esti
Slide 30: Investment Risks
INVESTMENT RISKS Potential investors should be aware that there are risks associated with investing in Hillgrove. Certain risks are beyond the control of Hillgrove and its Directors and Management and may have a material impact on Hillgrove's future operating and financial performance, and/or the fi
Slide 31: Investment Risks
INVESTMENT RISKS • The future success of the Company depends, to a significant extent, upon the continued services of the members of the management Key person team of the Company. There can be no assurance that the Company will be able to retain or hire all personnel necessary for the dependence dev
Slide 32: References
REFERENCES All exploration drill results, exploration information and Mineral Resource Estimates have previously been reported to the ASX by Competent Person at the time. The results reported herein are reported in the form and context of the original ASX releases. Refer http://www.hillgroveresource
Hillgrove Resources — Brisbane Mining Conference 2023 on 6ix