Red 5 — Q2 2021 Earnings Presentation
34 slides from Red 5's earnings presentation, Jul 15, 2021
Slide 1: June 2021 Quarterly Presentation
June 2021 Quarterly Presentation Investor conference call ASX Code: RED 15 July 2021 www.red5ltd.com
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open Pit Mining Review and
Slide 3: Red 5 – A standout growth opportunity
Red 5 – A standout growth opportunity ✓ Red 5 has two gold mines in one of the world’s safest and most prospective gold districts ▪ 2,816 sq km of granted and pending tenements ✓ King of the Hills (KOTH) is a major Australian gold deposit – Top 10-largest Ore Reserves in Australia1 ▪ Mineral Resourc
Slide 4: KOTH now fully financed through to operations
KOTH now fully financed through to operations Facility Amount and ▪ A$175 million Syndicated Facility Agreement comprising: ▪ A$160 million Senior Secured Project Loan Facility; and Syndicate Banks ▪ A$15 million Cost Overrun and Working Capital Facility. ▪ Syndicate Banks – Macquarie (50%), BNP Par
Slide 5: Red 5 Limited – Corporate profile
Red 5 Limited – Corporate profile Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Shareholders Share price
Slide 6: Darlot - FY21 transition year to satellite feed
Darlot - FY21 transition year to satellite feed ▪ Full year production of 76,104 ounces1 (guidance 74,000 – 78,000 ounces) and AISC of $2,273/oz2 (guidance of $2,240/oz - $2,290/oz)2 ▪ June 2021 Quarter production of 15,251 ounces and AISC of $2,461/oz1 ▪ Production in Darlot Underground is increasi
Slide 7: Great Western satellite mine now operating as planned
Great Western satellite mine now operating as planned 7 www.red5ltd.com
Slide 8: King of the Hills– Australia's Next Significant Gold Mine
King of the Hills– Australia’s Next Significant Gold Mine 8
Slide 9: Fully funded, de-risked, Top-10 gold deposit
KOTH - fully funded, de-risked, Top-10 gold deposit ▪ Gold companies/assets (Bubble Size = Indicative Production p.a) Australia’s top 10 gold deposits by Ore Reserve2 ▪ AISC and indicative mine reserve life of WA-based gold companies1,2 Mt g/t Moz 1,700 Cadia 1400.0 0.4 20.0 St Barbara Boddington 56
Slide 10: KOTH - site activities underway, equipment being delivered
KOTH - site activities underway, equipment being delivered A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Installation of CIL tanks Total (Real) capital cost 226 ▪ The majority of remaining project expenditure is through fixed-pri
Slide 11: KOTH - village is fully operational
KOTH - village is fully operational 11 www.red5ltd.com
Slide 12: KOTH - process plant steel erection commenced
KOTH - process plant steel erection commenced ▪ MACA Interquip is the EPC Contractor ▪ Plant design on track – 97% complete ▪ All platework and steelwork packages awarded – to be fabricated in WA ▪ 70% of steelworks delivered to site ▪ CIL tanks being installed ▪ Mill and stockpile foundations comme
Slide 13: KOTH - delivery of long lead items to site
KOTH - delivery of long lead items to site ▪ All components of the 15MW SAG mill are completed; Majority now on site ▪ The Mill Shell will arrive in Perth in the Sept Quarter ▪ The variable speed drive and other minor mill elements are currently being shipped to WA ▪ New Metso gyratory crusher is no
Slide 14: KOTH - first gold on-track for June 2022 quarter
KOTH - first gold on-track for June 2022 quarter 2021 2022 MQ JQ SQ DQ MQ JQ SQ DQ Debt financing Construction and mine permits Bulk earthworks and Village EPC full mobilisation Mill and Crusher delivery to site Site construction Mine Contractor mobilisation Commissioning Production ramp-up (3 month
Slide 15: Siana Gold Project – evaluating options
Siana Gold Project – evaluating options ▪ The Siana Gold Mine, owned by Philippine-affiliated company Greenstone Resources, suspended mine operations in April 2017 ▪ Maintaining mill and pit dewatering to preserve value ▪ Siana is a valuable gold mining asset1: ▪ 8 year Life-of-Mine plan – total pro
Slide 16: KOTH – long mine life generating substantial cash flow
KOTH – long mine life generating substantial cash flow1 Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689 ▪ Free cashflow (after tax) of: IRR % 38.0% 51.6% 64.3% 76.4% 88.
Slide 17: A standout value opportunity in the Australian gold sector
A standout value opportunity in the Australian gold sector Red 5 EV/Reserve relative to its peers 1,200 Ramelius ▪ Valuation of WA based- Silver Lake gold companies1 ▪ Bubble Size = Enterprise 900 EV / Reserve (A$/oz) Bellevue Value Gold Road Capricorn The planned development 600 of KOTH is expected
Slide 18: Thank you
Thank you 18 www.red5ltd.com ASX Code: RED
Slide 19: Appendix
| Appendix ' 4
Slide 20: Leadership team with strong development expertise
Leadership team with strong development expertise Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH development Board Management t
Slide 21: KOTH - 4.1Moz Mineral Resource
KOTH - 4.1Moz Mineral Resource1 Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold ▪ Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 February Indicated 0.4-1.0 OP+UG 69,800 1
Slide 22: KOTH - 2.4Moz Ore Reserve
KOTH - 2.4Moz Ore Reserve1 Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.2 Rainbow Open pit 0.30 Probable 1.9 0.9
Slide 23: KOTH - geology is well understood
KOTH - geology is well understood Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au ▪ Ore body in the contact zone of a substantial Granodiorite intrusion ▪ 4km long x 2km wide ▪ Historical understanding from previous open pit and underground mi
Slide 24: KOTH - mineralisation open in all directions
KOTH - mineralisation open in all directions White Walker Lemonwood South Pit Drilling bulk stope New Structural Corridor Proof of concept drilling confirms gold mineralisation extends 500m from Mineral Resource1 Mineralised stockwork penetrates at least 70 metres into the granodiorite from the gran
Slide 25: KOTH - Satellite Deposits – Mineral Resource of 308koz
KOTH - Satellite Deposits1 – Mineral Resource of 308koz 1. Red 5 ASX Release: 6 May 2020 2. Red 5 ASX Release: 1 May 2019 25 www.red5ltd.com
Slide 26: KOTH - scope to increase production and extend LoM
KOTH - scope to increase production and extend LoM ▪ Future expansion in processing capacity ▪ 6Mtpa crushing circuit installed ▪ Oversized 4Mtpa SAG Mill selected ▪ Design allowance for upgrade of the grinding, leaching and elution components ▪ Minimal interruption to future production ▪ Granodiori
Slide 27: KOTH exploration – numerous targets
KOTH exploration – numerous targets ▪ Integrated datasets have identified priority targets along the Tarmoola and Ursus Fault corridors ▪ Tarmoola Fault Corridor ▪ Poorly tested outside of the mine area ▪ Bulk of historical AC/RAB drilling ineffective (failed to reach top of fresh rock) ▪ 10 high-pr
Slide 28: KOTH - mine plan optimises material movement over LoM
KOTH - mine plan optimises material movement over LoM Cost of Production ($A/oz) Yrs 1-6 LOM ▪ Ore Reserves, Life Of Mine Plan performed by: Mining 895 908 ▪ Open Pit – SRK Consulting Processing 273 321 ▪ Underground – Entech ▪ Mine scheduling being undertaken by Orelogy G&A 39 46 Transport & treatm
Slide 29: KOTH - strategic, low-cost mill in Eastern Goldfields
KOTH - strategic, low-cost mill in Eastern Goldfields ▪ High level of confidence in metallurgy: Classification ▪ Historical processing data (1989-2004) ▪ Metallurgical testwork (historical and FFS) Primary Gyratory Crusher ▪ Processing KOTH ore at Darlot Gravity Circuit ▪ Process Plant Feasibility S
Slide 30: KOTH - 15MW SAG mill supports higher throughput
KOTH - 15MW SAG mill supports higher throughput Hardest Ore Design Mid High ▪ Conventional 4Mtpa CIL plant ▪ Acquired 15MW, dual Power Draw (kW) 9,272 10,859 12,445 synchronous motor semi- autonomous grind (SAG) mill Grind Size (P80) 150 150 150 with VVVF drive Tonnes Per Hour (tph) 500 586 671 ▪ De
Slide 31: KOTH - mine plan focussed on maximising value
KOTH - mine plan focussed on maximising value ▪ Early years of LOM benefit from UG mining and processing of high-grade ore ▪ Potential to extend UG mining beyond FY27 ▪ Low-grade ore is stockpiled and processed in the back half of the LOM Plan ▪ Lower AISC during Years 1-6 result in short payback ▪
Slide 32: Darlot – an exceptional exploration footprint
Darlot – an exceptional exploration footprint Darlot Gold Mine1 Cables & Mission4 ▪ Resource 11.8Mt @ 3.4g/t Au for ▪ Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz ▪ Historical drilling suggests both ▪ Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remain open along strike ▪ 71,
Slide 33: Top 20 Gold Deposit in Australia
Top 20 Gold Deposit in Australia Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3184.0 0.4 36.1 Cadia 1400.0 0.4 20.0 Boddington 836.2 0.6 16.2 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile - KCGM 178.2 1.1 6.3 Tanami 76.9 4.1 10.1 Tanami 36.2 5.0 5.9 Lake Cowal 290.2 1.0 9
Slide 34: Australian Top 20 Gold Deposits
Australian Top 20 Gold Deposits1 Resources Reserves Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Sunrise Dam AngloGold Cadia Newcrest St Ives Goldfields Measured 27.3 1.62 1.4 Proven 11.1 1.52 0.5 Measured 32.0 0.30 0.3 Proven Measured 5.1 2