Geopacific Resources Limited · ASX:GPR
Geopacific Resources — Investor Presentation (October 2019)
30 slides from Geopacific Resources's investor presentation, Oct 21, 2019
Slide 1: Project Development Commences
Project Development Commences 1.6moz* Woodlark Gold Project * For Mineral Resource refer to slide 15 and the PFS announcement released on 12 March 2018. 1
Slide 2: Investment Highlights
Investment Highlights Completed by industry leaders & +1moz confirms high margin gold opportunity Reserve & Robust DFS1 Significant discount to peers Attractive High margin valuation to gold peers opportunity +100koz pa (yr1-5) with low costs Funded to from outcropping gold mineralisation commence P
Slide 3: Equity raising overview
Equity raising overview Overview Detail Structure and size Equity capital raising of up to $45 million • Two tranche Placement of 1,600 million shares to raise $40 million • Tranche one approximately $17.2 million • Tranche two approximately $22.8 million, subject to shareholder approval at a genera
Slide 4: Timetable
Timetable Key Event Date & Time (AWST) SPP record date 18 October 2019 Announcement of capital raising 21 October 2019 SPP opening date 4 November 2019 Tranche 1 placement settlement date 28 October 2019 Tranche 1 placement allotment date 29 October 2019 SPP closing date 29 November 2019 Issue of sh
Slide 5: Use of Funds
Use of Funds Geopacific is funded to commence development and complete project financing. The first phase of development activities, outlined below, is expected to de-risk project execution in preparation for the construction of the process plant and completion of project financing. Key Event $m Pro
Slide 6: Company Snapshot (ASX: GPR)
Company Snapshot (ASX: GPR) Pre Post Post Share Capital Structure Equity Raise Equity Raise6 Consolidation7 0.04 Market Capitalisation A$77.3m1 A$117.3m2 A$117.3m2 Shares on issue 2.8bn 4.4bn3 174.4m 0.03 Options/SAR’s4 168.1m 168.1m 6.7m Share price A$ Cash (30 September) A$3.2m A$43.2m5 A$43.2m5 0
Slide 7: Board and Senior Management
Board and Senior Management Geopacific’s team has a strong track record in project development & overseas mining projects Mr Clyne has over 35 years’ experience in international banking specialising in emerging markets. He has held roles of President, Director, Managing Director and Chief Executive
Slide 8: PNG – Why wouldn’t you want to be here?
PNG – Why wouldn’t you want to be here? Proven mining investment jurisdiction with long mining history Many world-class gold mines Newcrest investing ~US$2.3b* in Wafi Golpu now Many profitable gold operations on Islands Newcrest, Lihir at 66Moz Au St Barbara, Simberi at 6Moz Au Democratic governmen
Slide 9: Easy Place to Work
Easy Place to Work The flat terrain & close proximity to the port provides logistical advantages and cost efficiencies Logistical advantages Qualified teams Island benefits • Flat terrain • Strong track record in remote • 1.5hr flight from Port Moresby • Port and air strip operations • Bulk deliveri
Slide 10: Woodlark Gold Project (PNG) – 100%
Woodlark Gold Project (PNG) – 100% A permitted project with a robust DFS1 completed by industry leaders • Production – +1moz Reserve,13 year operating life and AISC of A$1,033/oz • Annual output – 104kozpa over first 5yrs • Low strip ratio (<4:1) – shallow open pits and wide ore zones • Capex – A$19
Slide 11: Strong Feasibility Results
Strong Feasibility Results Robust Low waste to Near-surface Strong upfront production ore ratio mineralisation cashflow profile Unit First 5 Yrs* Life of Mine Mine Life yea rs 5 13 Strip Ratio (x) 3.2 3.9 Feed Grade (g/t Au) 1.5 1.1 Gold Recovery (%) 90.2 88.8 Annual Output (koz/pa) 104 74 Total Pro
Slide 12: Upside - additional in-pit ounces
Upside - additional in-pit ounces Potential to gain additional in-pit ounces and reduce strip ratio Inferred mineralisation surrounding pits Limited drilling access in village area, relocation agreed Mineralisation remains open at depth and in all directions 12
Slide 13: Upside - Near-pit depth extension
Upside - Near-pit depth extension Mineralisation remains open beneath pits in all directions Pits are constrained by limited drilling, inferred Further drilling mineralisation beneath pits available for conversion required Prior drilling was strategically focused in-pit to ensure maximum conversion
Slide 14: Regional exploration upside
Regional exploration upside Large regional goldfield 600km2 Exploration License Over 30 prospect areas Visible gold across licence area (yellow) Gold follows mineralised structures (red) Significant potential beneath thin limestone cover 14
Slide 15: Resources and Reserves
Resources and Reserves Resources Reserves 47.04Mt at 1.04g/t Au for 1.57moz Au 28.9Mt at 1.12g/t Au for 1.04moz Au Category Tonnes Grade Ounces Category Tonnes Grade Ounces (>0.4g/t lower cut) (Mt) (g/t) (oz) (>0.4g/t lower cut) (Mt) (g/t) (oz) Measured 21.24 1.10 754,000 Proven 18.6 1.17 697,000 To
Slide 16: Low waste to ore compared to peers
Low waste to ore compared to peers Less waste drives a Geopacific ORE WASTE COST SAVINGS significant cost saving Low waste to ore ratio 3.9 : 1 (LOM) Other ORE WASTE Goldfield High grade, near surface gold mineralisation The above diagram is conceptual in nature and comparison is based on average LO
Slide 17: Low Cost, High Margin
Low Cost, High Margin Margin greater than 55% at A$2,000/oz gold price $2,000 Low cost drivers Upside from DFS Margin $1,750 Flat terrain Margin $1,500 55% Local labour force DFS Margin Gold Price (A$) $1,250 Outcropping gold mineralisation $1,000 Near surface, wide ore zones $750 Low All in Sustain
Slide 18: Compelling Investment Opportunity
Compelling Investment Opportunity 5.3 x 1.9 x US$ enterprise value per reserve ounce courtesy of PCF Capital Group Resources Thermometer – June 2019 *Calculated as at 15 October 2019 18
Slide 19: DFS Gold Price Sensitivity
DFS Gold Price Sensitivity The DFS sensitivity analysis presents robust economics at a A$1,650/oz gold price & highlights project upside to an increasing gold price Net cashflows, NPV and IRR present greater returns Rapid payback of 1.6 years at A$2,000/oz gold price 19
Slide 20: Upside of Early Cashflow
Upside of Early Cashflow Average free cashflow (pre-tax) per annum yr1-5 A$120m A$104m A$84m 43% increase 25% increase Upfront cashflow A$1,650/oz A$1,850/oz A$2,000/oz gold price (DFS) gold price gold price The information is based on the gold price sensitivity analysis from the November 2018 DFS.
Slide 21: Licence to Operate
Licence to Operate Commitment to provide positive and lasting benefits to a small, supportive community. Commitment to provide Mining & Environmental The Community positive & lasting benefits Permits in place Local population of ~6,000, Future employment opportunities. Strong working relationships w
Slide 22: Project Financing
Project Financing Funded to commence development and complete project financing Debt Equity Final Stages of Project Financing Due Diligence First phase of development funding completed. Independent Technical Experts (ITE) report completed. A strong shareholder base containing specialist funds with c
Slide 23: Divestment of non-core assets
Divestment of non-core assets Geopacific believes that delivering the Woodlark Gold Project into production will generate the greatest return for shareholders. As a result, the Company will focus on the development and financing of Woodlark and divest its non-core assets. The Company is in negotiati
Slide 24: Investment highlights
+1.6moz Gold deposit Attractive Large valuation to exploration peers Upside Investment Funded to commence highlights High margin development Licence to gold operate opportunity Proven management team
Slide 25: APPENDIX
APPENDIX For further information please refer to Woodlark DFS confirms high margin development project: https://www.asx.com.au/asxpdf/20181113/pdf/44078980g1q3bv.pdf 25
Slide 26: Key risks
Key risks General risk Fluctuations in the stock market - The price of securities listed on the ASX may rise or fall due to numerous factors which may affect the market performance of the Company. Changes in regulatory environment - Changes to laws (including tax laws), regulations and accounting st
Slide 27: Key risks
Key risks Company Specific Risk Financing - Future funding will be required by the Company to support its activities. There can be no assurance that such funding (whether it be equity or debt) will be available on satisfactory terms or at all. Any additional equity financing will dilute shareholding
Slide 28: Key risks
Key risks Securities investment and market Securities investment - The prices at which the Company’s Shares trade may fluctuate in response to a number of factors including the risk factors identified in this Section as well as securities market factors such as limited liquidity of the Shares and la
Slide 29: Disclaimer and competent persons statement
Disclaimer and competent persons statement This presentation is for information purposes only. Neither this presentation nor the information contained in it Forward Looking Statements All statements other than statements of historical fact included in this constitutes an offer, invitation, solicitat
Slide 30: Foreign Jurisdictions
Foreign Jurisdictions This document does not constitute an offer of shares or other securities in the Company in any place in which, or to any person to This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by whom, it would not be l
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