Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (April 2021)
46 slides from Regis Resources's investor presentation, Apr 13, 2021
Slide 1: Equity Raising for Proposed Acquisition of 30% Interest in the Tropicana Joint Venture
EQUITY RAISING FOR PROPOSED ACQUISITION OF 30% INTEREST IN THE TROPICANA JOINT VENTURE 13 April 2021 Not for release to US wire services or distribution in the United States
Slide 2: Important Notices and Disclaimer
2 IMPORTANT NOTICES AND DISCLAIMER Disclaimer This investor presentation has been prepared by Regis Resources Limited (ASX:RRL) (Regis or Company). For the purposes of ASX Listing Rule 15.5, Regis confirms that this presentation has been authorised for release to the ASX by the board of directors of
Slide 3: Important Notices and Disclaimer (Cont'd)
3 IMPORTANT NOTICES AND DISCLAIMER (CONT’D) Limitation on information provided by IGO All information in this presentation relating to the Tropicana Gold Project, including in relation to historical production, mineral resource and ore reserve estimates, historical costs, life of mine plans and othe
Slide 4: Important Notices and Disclaimer (Cont'd)
4 IMPORTANT NOTICES AND DISCLAIMER (CONT’D) Forward-looking statements This presentation contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding the financial position of Regis, future produc
Slide 5: Important Notices and Disclaimer (Cont'd)
5 IMPORTANT NOTICES AND DISCLAIMER (CONT’D) Disclosure The Underwriter and its affiliates and related bodies corporate are full service financial institutions engaged in various activities, which may include trading, financial advisory, investment management, investment research, principal investmen
Slide 6: Table of Contents
6 TABLE OF CONTENTS 1. Investment Highlights & Strategic Rationale 7 2. Overview of Tropicana 15 3. Transaction Funding 21 4. Regis Story and Update 25 Appendix A: JORC Compliance Appendix B: Key Risks Appendix C: International Offer Restrictions
Slide 7: 1. Investment Highlights & Strategic Rationale
1. INVESTMENT HIGHLIGHTS & STRATEGIC RATIONALE
Slide 8: Tropicana Represents a Portfolio Enhancing Acquisition for Regis
8 TROPICANA REPRESENTS A PORTFOLIO ENHANCING ACQUISITION FOR REGIS ✓ Regis has entered into a binding asset sale agreement, which is subject to certain conditions including the waiver or non-exercise of pre-emptive rights held by Tropicana AngloGold Ashanti, to acquire a 30% interest in Tropicana, a
Slide 9: Overview of Tropicana
9 OVERVIEW OF TROPICANA Overview Operational Profile Location Map ▪ One of the 5 largest gold producing gold ▪ 330km North-East of Kalgoorlie, Western Duketon Location mines in Australia with long-term annual Australia Leonora Geraldton gold production between 450 – 500Koz ▪ 30% Regis1 TROPICANA ▪ L
Slide 10: Transaction Summary
10 TRANSACTION SUMMARY ▪ Regis Resources Limited (ASX:RRL) (Regis) has entered into an asset sale agreement with IGO Limited (ASX:IGO) (IGO) to acquire a 30% interest in the assets of Tropicana Gold Mine (Tropicana Share), with an effective date of 31 March 2021 (the Transaction), which is subject t
Slide 11: Tropicana is One of Australia's Top Producing Gold Mines
11 TROPICANA IS ONE OF AUSTRALIA’S TOP 5 PRODUCING GOLD MINES The Tropicana gold mine is in the top five of Australia’s largest and most successful gold mines: ▪ AngloGold is a world class joint venture partner with a proven history of developing and operating the Tropicana asset ▪ 463Koz of product
Slide 12: Tropicana Will Consolidate Regis' Position as a Leading Australian Gold Miner
12 TROPICANA WILL CONSOLIDATE REGIS’ POSITION AS A LEADING AUSTRALIAN GOLD MINER FY21 Gold Production Midpoint of Guidance Ranges (Koz) FY20 Gold Reserves (Moz) 1,950 – 2,150 1,540 – 1,700 1,200 52 19 1,000 14 Regis will strengthen its position within the Top 5 Australian Gold Companies 12 800 10 Ac
Slide 13: Quality Asset That Enhances Regis' Existing Portfolio
13 QUALITY ASSET THAT ENHANCES REGIS’ EXISTING PORTFOLIO Reserves (Moz)(1)(2) Resources (Moz)(1)(2) Pro-forma Summary 22% 4.4 10.0 3.6 30% 7.7 ▪ Reserves & Resources: Increases attributable group Reserves to 4.4Moz (up ~+22%) and Regis Pro Forma Regis Regis Pro Forma Regis Resources to 10.0Moz (Up ~
Slide 14: Key Elements of Value Growth
14 KEY ELEMENTS OF VALUE GROWTH Exploration & Optimisation Life Extension Growth McPhillamys Gold Project Increasing Business Value Step Change Growth Tropicana will add immediate cash flow and production to Additional Duketon Underground the portfolio Incremental Growth Tropicana Mine (30%) Acquisi
Slide 15: 2. Overview of Tropicana
2. OVERVIEW OF TROPICANA
Slide 16: Tropicana Represents a Portfolio Enhancing Acquisition for Regis
16 TROPICANA REPRESENTS A PORTFOLIO ENHANCING ACQUISITION FOR REGIS ✓ Regis has entered into a binding asset sale agreement, which is subject to certain conditions including the waiver or non-exercise of pre-emptive rights held by Tropicana AngloGold Ashanti, to acquire a 30% interest in Tropicana,
Slide 17: Tropicana Historical Operating & Financial Performance
17 TROPICANA HISTORICAL OPERATING & FINANCIAL PERFORMANCE Ore Milled (Kt) and Milled Grade (g/t) Metallurgical Recovery (%) Kt Lower milled grades driven by increased processing of g/t % 91% lower grade stockpiles during the Havana open pit cutback 10.0 3.0 2.4 2.2 8.0 2.1 2.1 2.5 1.8 90% 1.6 2.0 6.
Slide 18: Attractive Long-Term Outlook
18 ATTRACTIVE LONG-TERM OUTLOOK Current Plan and Five Year Outlook Regional Opportunities ▪ Current plan includes: ▪ All deposits at Tropicana are open at depth providing the foundation for mine life ˗ Boston Shaker open pit extension. Furthermore, other local satellite opportunities have been ident
Slide 19: Expansion and Extension Opportunities
19 EXPANSION AND EXTENSION OPPORTUNITIES Multiple Opportunities to Extend Mine Life(1) Source: AngloGold Capital Markets Day Presentation (19 February 2021) (1) Upon Completion of the Transaction, Regis will have a 30% interest in the Tropicana asset and any potential mine life extension opportuniti
Slide 20: Substantial Exploration Potential
20 SUBSTANTIAL EXPLORATION POTENTIAL ✓ Tropicana discovery opened a new belt that had previously been sparsely explored ✓ Tenement package is still relatively underexplored given only A$94m has been spent on exploration since first production (100% basis, excluding study costs) ✓ 18 prospects along
Slide 21: 3. Transaction Funding
3. TRANSACTION FUNDING
Slide 22: Transaction Funding and Regis Pro Forma Capitalisation
22 TRANSACTION FUNDING AND REGIS PRO FORMA CAPITALISATION Equity Raising ▪ Fully underwritten(1) institutional placement and a 1 for 3.08 pro rata Pro forma Capital Structure accelerated non-renounceable entitlement offer Acquisition ˗ ~74 million shares under placement raising approximately A$200 3
Slide 23: Offer Terms, Timing & Pricing
23 OFFER TERMS, TIMING & PRICING ▪ Fully underwritten(1) Equity Raising of A$650 million consisting of an institutional placement(2) of A$200 million and a 1 for 3.08 pro rata accelerated non-renounceable entitlement offer of A$450 million (with fractional entitlements rounded up to the nearest whol
Slide 24: Indicative Timetable
24 INDICATIVE TIMETABLE Event Date Announcement of the Placement and Entitlement Offer Tuesday, 13 April 2021 Entitlement Offer Record Date Thursday, 15 April 2021 Institutional Entitlement Offer and Placement Institutional Entitlement Offer and Placement opens Tuesday, 13 April 2021 Institutional E
Slide 25: 4. Regis Story and Update
4. REGIS STORY AND UPDATE
Slide 26: Corporate Overview
26 CORPORATE OVERVIEW CAPITAL STRUCTURE BOARD & MANAGEMENT ASX Code RRL James Mactier Jim Beyer Steve Scudamore Issued capital1 513m shares Independent Managing Director Independent Non-Executive Chairman Non- Executive Director Market capitalisation2 A$1.7b Lynda Burnett Fiona Morgan Russell Barwic
Slide 27: Duketon Project Overview
27 DUKETON PROJECT OVERVIEW 5.0Moz in Resources and 1.6Moz in Reserves Production Guidance of 355,000 - 380,000oz gold at A$1,230-$1,300/oz AISC and Growth Capital of A$60- 70m for FY2021 Three operating centres in Garden Well, Moolart MOOLART WELL Well and Rosemont DUKETON PROJECT 2.5Mtpa Among the
Slide 28: McPhillamys Project
28 MCPHILLAMYS PROJECT MINERAL RESOURCE 2.29 Moz Au ORE RESERVE 2.02 Moz Au PRODUCTION Up to ~200koz Au SATELLITE PROJECT Discovery Ridge - 390koz Au Resource PRE-FEASIBILITY STUDY PHYSICALS1 Ore milled (Million tonnes) 60.1 Grade (g/t) 1.05 Recovery (%) 85 LOM gold produced (oz) 1,728,000 One of Au
Slide 29: Looking Forward - FY21 Q3 Update
29 LOOKING FORWARD - FY21 Q3 UPDATE CURRENT FY21 PRODUCTION GUIDANCE Gold Production 355,000 - 380,000 ounces Q3 FY21 Production of 86koz bringing FY21 YTD to 259koz KEY Q4 DELIVERABLES • Plant performance and reliability • Rosemont UG Main Zone ramp-up improvement projects • Manage Open Pit geotech
Slide 30: H1 2021 Financial Highlights
30 H1 2021 FINANCIAL HIGHLIGHTS Strong Net Profit EBITDA A$85M A$199m up 7% Net Profit Margin +21% EBITDA Margin 50% Interim Dividend Cash flow from Cash & Bullion 4c per share operating activities A$220m* Grossed up H1 yield A$148m No debt of 1.7%** Approved Garden Well Underground Project * Includ
Slide 31: Appendices
APPENDICES
Slide 32: JORC Compliance
32 JORC COMPLIANCE The information in this report that relates to Regis’ Mineral Resources or Ore Reserves is extracted from Regis’ ASX release dated 24 August 2020 entitled “Group Resources and Reserves as at 31 March 2020 and Organic Growth Update” (Report) and is available at https://regisresourc
Slide 33: Disclosure Regarding Tropicana Mineral Resources and Ore Reserves
33 DISCLOSURE REGARDING TROPICANA MINERAL RESOURCES AND ORE RESERVES Topic Response Have the estimates been reported by the former owner Yes rather than the acquirer? Please state the source and date of the reporting of the The information in this presentation that relates to the Tropicana Gold Proj
Slide 34: Disclosure Regarding Tropicana Mineral Resources and Ore Reserves (Cont'd)
34 DISCLOSURE REGARDING TROPICANA MINERAL RESOURCES AND ORE RESERVES (CONT’D) Topic Response Are there any more recent estimates or data relevant N/A - the estimates were reported on 17 March 2021 under JORC Code 2012 to the reported mineralisation Is there any evaluation and/or exploration required
Slide 35: Key Risks
35 KEY RISKS INTRODUCTION This section discusses some of the risks associated with an investment in Regis. Regis's business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance. This section summarises the following k
Slide 36: Key Risks (Cont'd)
36 KEY RISKS (CONT’D) Operational Risk Drilling, mining and processing activities carry risk and as such, activities may be curtailed, delayed or cancelled as a result of a number of factors outside Regis’s control. These include geological conditions, technical difficulties, securing and maintainin
Slide 37: Key Risks (Cont'd)
37 KEY RISKS (CONT’D) Native title The Native Title Act 1993 (Cth) recognises and protects the rights and interest in Australia of Aboriginal and Torres Strait Islander people in land and waters according to their traditional laws and customs. Native title may impact Regis’ operations and future pla
Slide 38: Key Risks (Cont'd)
38 KEY RISKS (CONT’D) Existing Regis operations – geological and geotechnical risks There is a risk that unforeseen geological and geotechnical difficulties may be encountered in Regis's existing operations, such as unusual or unexpected geological conditions, pit wall failures, rock bursts, seismic
Slide 39: Key Risks (Cont'd)
39 KEY RISKS (CONT’D) Information systems risks Regis relies on computer, information and communications technology and related systems in order to properly operate the administrative and compliance aspects of its business. From time to time Regis experiences occasional system interruptions and dela
Slide 40: Key Risks (Cont'd)
40 KEY RISKS (CONT’D) Funding risk – debt Regis has entered into a commitment letter and term sheet with Bank of America, pursuant to which Bank of America has agreed to provide an A$300 million secured facility (Term Facility). The Term Facility will be used by Regis to finance part of the consider
Slide 41: Key Risks (Cont'd)
41 KEY RISKS (CONT’D) Impact of transaction on existing Tropicana arrangements Some of Tropicana’s services contracts or other commercial arrangements may contain restriction on assignment clauses or similar/other provisions that may be triggered by the Acquisition. If the relevant counterparties do
Slide 42: Key Risks (Cont'd)
42 KEY RISKS (CONT’D) Tax laws and application Existing tax law and future changes in taxation laws, including changes in interpretation or application of the law by the courts or taxation authorities in Australia and any other jurisdiction in which Regis may operate in the future, may affect the ta
Slide 43: International Offer Restrictions
43 INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in an
Slide 44: International Offer Restrictions (Cont'd)
44 INTERNATIONAL OFFER RESTRICTIONS (CONT’D) New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not being offered to the public within New Zealand other tha
Slide 45: International Offer Restrictions (Cont'd)
45 INTERNATIONAL OFFER RESTRICTIONS (CONT’D) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Ma
Slide 46: Further information: Jim Beyer | Managing Director & CEO
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200