Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Q4 2013 Earnings Presentation
22 slides from Hillgrove Resources's earnings presentation, Feb 28, 2013
Slide 1: Fourth Quarter Report
For personal use only FOURTH QUARTER REPORT GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CFO STEVE MCCLARE IIIII GENERAL MANAGER - KANMANTOO 28 FEBRUARY 2013
Slide 2: Disclaimer - Important Notice
DISCLAIMER Important Notice For personal use only No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or c
Slide 3: Corporate Overview
For personal use only 3 CORPORATE OVERVIEW
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION AT 31 JANUARY 2013 ASX listed: HGO For personal use only SHAREHOLDER DISTRIBUTION Shares on issue: 1,022.8 million Cash and cash equivalents: AUD 27.4 million Share price: AUD 0.135* Market capitalisation: AUD 138.1 million* AUD 50.
Slide 5: Australian and Indonesia Focus
AUSTRALIAN AND INDONESIA FOCUS PRODUCTION AND EXPLORATION ASSETS Bird’s Head project Production and cash flow in Australia For personal use only Sumba project Kanmantoo Copper Mine (100% owned), South Australia Rim-of-Fire exploration upside in Indonesia Sumba gold project (80% owned) Kanman
Slide 6: Hillgrove Fourth Quarter Update Highlights
HILLGROVE FOURTH QUARTER UPDATE HIGHLIGHTS For personal use only Significant increase in Kanmantoo Life of Mine potentially to 2023 Mining operations reached target capacity of 500kbcm per month with 23% increase in total material moved on previous quarter Crushing circuit and ore processing p
Slide 7: Kanmantoo Operations
For personal use only KANMANTOO OPERATIONS The focus during the quarter has been on establishing the new LOM plan and then aggressively moving the pit to the position required for maximum direct pit ore feed to coincide with commissioning of the new primary crusher. 7
Slide 8: Kanmantoo Copper Mine - Safety
KANMANTOO COPPER MINE SAFETY – 12 MONTH ROLLING KANMANTOO TRIFR For personal use only Monthly TRIFR TRIFR - Total Recordable Injury Frequency Rate YTD ‐ TRIFR 70.0 120.0 58.4 60.0 100.0 62.8 52.1 53.9 50.0 52.8 80.0 49.6 46.1 51.0 49.3 46.6 40.0 42.9 41.2 60.0 30.0 82.6 102.5 40.0 20.0 64.9 41.2 10.
Slide 9: Kanmantoo Copper Mine - Production Output
KANMANTOO COPPER MINE PRODUCTION OUTPUT Period FY 2012 FY 2013 Q1 12 Q2 12 Q3 12 Q4 13 Ore to ROM from Pit (kt) 495 2,221 544 486 552 639 Significant For personal use only Ore to long term stockpiles (kt) 1,267 849 298 248 205 98 increase of Mined Waste (kt) 7,446 11,777 2,639 2,683 2,805 3,650 23
Slide 10: Kanmantoo Copper Mine - C1 Production Costs
KANMANTOO COPPER MINE C1 PRODUCTION COSTS For personal use only Period Apr‐12 Jul‐12 Oct‐12 Jan‐13 Full C1 costs higher US cents per lb QTR QTR QTR QTR Year primarily due to increased waste Mining Costs 132 116 85 155 120 that enables Processing Costs 111 88 97 94 97 delivery of desired Other Dire
Slide 11: Kanmantoo Copper Mine - Current Resource Estimate
KANMANTOO COPPER MINE CURRENT RESOURCE ESTIMATE For personal use only * May 2012 has been depleted relative to Nov 2008 due to treatment of 667kt @ 0.68% Cu through the ore processing plant Global Mineral Resource (March 2012) JORC Cu Au Ag Bi Cu Metal Classification (Mt) (%) (g/t) (g/t) (g/t) (kt)
Slide 12: Kanmantoo Copper Mine - Extension of Mine Life
KANMANTOO COPPER MINE EXTENSION OF MINE LIFE New LOM planning with long-term pit optimisation provides a reasonable basis For personal use only for indicative future planning and likely extension of mine life to 2023 Estimated period of operation initially increasing from 6.5 to 10 years New p
Slide 13: Implementation of Operational Improvements
KANMANTOO COPPER MINE IMPLEMENTATION OF OPERATIONAL IMPROVEMENTS Development of LOM Plan shows focus on bench turnover in Kavanagh and For personal use only enhanced mill throughput to provide desired financial performance but requires continued use of lower grade stockpiled material through to Ap
Slide 14: Solid Outlook for Realised Copper Prices
HILLGROVE FOURTH QUARTER PERFORMANCE SOLID OUTLOOK FOR REALISED COPPER PRICES For personal use only Hedging provides Hillgrove AUD Copper Position price protection 10,000 above current 9,500 spot prices 9,000 8,500 8,000 7,500 7,000 6,500 6,000 Feb‐11 Feb‐12 Feb‐13 Feb‐14 Aug‐10 Oct‐10 Dec‐10 Apr‐
Slide 15: Indonesian Exploration
For personal use only INDONESIAN EXPLORATION The Company’s focused investment and exploration in Indonesia has successfully achieved the original objectives of establishing a high-quality investment platform and delineating potential Tier One targets. In line with this goal, management are now manda
Slide 16: Indonesia Bird's Head Project - Project Attributes
INDONESIA BIRD’S HEAD PROJECT PROJECT ATTRIBUTES Hillgrove has an 80% beneficial interest in PT Akram through a JV Agreement For personal use only Moving to a corporatised ownership structure – PMA conversion in progress IUP rights cover almost 1,000km², granted to March 2017 Hillgrove respo
Slide 17: Indonesia Bird's Head Project - Exploration Areas
INDONESIA BIRD’S HEAD PROJECT PROJECT EXPLORATION AREAS Porphyry copper-gold, polymetallic and epithermal gold mineralisation recognised For personal use only West Delta easily accessed from the north coast Granted Izin Pinjam Pakai Explorasi over West Delta target area Established, strong r
Slide 18: Bird's Head Project - Exploration Programme
INDONESIA BIRD’S HEAD PROJECT EXPLORATION PROGRAMME Exploration activities focused on: For personal use only Reconnaissance geological mapping of the drainages both east and west of the main West Delta corridor Detailed mapping at Suben/Rak Rak Prospects in preparation for drill testing Assess
Slide 19: Indonesia Sumba Island - Project Attributes
INDONESIA SUMBA ISLAND PROJECT ATTRIBUTES Hillgrove has a 80% direct shareholding in PT Fathi Resources through Singapore For personal use only holding structures Fathi already converted to PMA status IUP rights cover almost 1,000km² , granted to December 2016. Reducing to 750km² Hillgrove r
Slide 20: Indonesia Sumba Island - Exploration Programme
INDONESIA SUMBA ISLAND EXPLORATION PROGRAMME Aeromagnetic coverage over volcanic sequences For personal use only Potential porphyry related mineralisation in Masu corridor and South coast Masu Project area in East Sumba the principal target area for exploration over numerous gold targets No
Slide 21: Indonesia Sumba - Masu Exploration
INDONESIA SUMBA MASU EXPLORATION LIANDINGER Final trench and rock chip For personal use only samples from the Majapahit Prospect included the following intercepts: MATR178: 2m @ BIG SULPHUR 7.01g/t Au and 5g/t Ag MATR179: 6m @ 1.32g/t Au and 0.2g/t Ag KARIPI Numerous significant high grade g
Slide 22: Disclaimer - Competent Persons
DISCLAIMER COMPETENT PERSONS The information that relates to Exploration Results and Exploration Targets for the Kanmantoo Copper Mine is based upon For personal use only information compiled by Mr Steven McClare, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr McClare is