Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Euroz Hartleys Rottnest Island Conference 2021
17 slides from Ramelius Resources's conference presentation, Mar 9, 2021
Slide 1: Cost Control & Margin Expansion
Ramelius Resources Limited For personal use only Tim Manners Chief Financial Officer ASX:RMS Cost Control & Margin Expansion March 2021 EUROZ HARTLEYS ROTTNEST ISLAND CONFERENCE • MARCH 2021 1
Slide 2: Forward Looking Statements
QUALIFICATION Forward Looking Statements For personal use only This presentation contains certain forward-looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and unce
Slide 3: Corporate Summary
CORPORATE SUMMARY Corporate Structure Production Guidance For personal use only Shares on Issue 814M FY 2021 Guidance5 260,000 - 280,000oz @ AISC A$1,230 - A$1,330/oz Market Cap6 A$1.14B @ $1.40 per share FY 2020 Production4 230,426oz @ AISC A$1,164/oz Cash & Gold2 A$221.5M Mineral Resources1 4.7Moz
Slide 4: H1 FY2021 – Physicals & Financials
H1 FY2021 – PHYSICALS & FINANCIALS For personal use only • Group Sales: 147,836 oz up 73% (H1 FY20: 85,692 oz) Gold Sales • Ave Price: A$2,312/oz up 25% (H1 FY20: A$1,844/oz) • Group: A$1,261/oz up 2% (H1 FY20: A$1,240/oz) AISC • AISC Margin: A$1,051/oz up 74% (H1 FY20: A$604/oz) • EBITDA: A$192.8M
Slide 5: Key Metrics for Last Months
KEY METRICS FOR LAST 18 MONTHS We surveyed 8 other ASX Listed Gold Producers*…and the results are in… For personal use only Full Year First Half Ramelius were ranked… FY 20 FY 21 Gold Production #8 #6 AISC #3 #3 EBITDA Margin #1 #1 NPAT Margin #3 #1 ^ RoCE = NPAT divided by Average Total Assets less
Slide 6: Consistent Production Growth with Expanding Margins
CONSISTENT PRODUCTION GROWTH# WITH EXPANDING MARGINS For personal use only ➢ 21.5% year-on-year gold production growth FY15-FY20 AISC Margin increased from 20% ➢ Further 17% growth to 270koz mid- in FY15 to 42% in FY20 point in FY21 ➢ Consistent AISC profile over past 6 years ➔ varying <4% ➢ Cost co
Slide 7: AISC Margin by Operation
AISC MARGIN BY OPERATION For personal use only ➢ Mt Magnet star performer in 2020; with solid base load and high grade UG’s (Shannon) ➢ Edna May improving as mill returns to full utilisation with high grade satellite feeds ➢ Expanding margins due to solid cost management & increasing prices EUROZ HA
Slide 8: Cash Flow and Profit
CASH FLOW AND PROFIT use only Mining Deferred Waste Haulage Waste Cash Expenditure Inventory AISC/oz, Processing EBIT, For personal Movements More Magic EBITDA Ore Magic Happens Depreciation & and G&A Happens Amortisation PROFIT Gold Corporate Provisions Capital Passage of Time…but if you get the ca
Slide 9: Cost Control Environment – Fit for Purpose
COST CONTROL ENVIRONMENT – FIT FOR PURPOSE For personal use only Internal Controls Analytics Delegated Fit for Purpose Authority Reporting ERP “The Vault” One single source of truth Approval Business Limits Intelligence Chart of Accounts Budgets Forecasts Accountability Honesty Respect Fairness EURO
Slide 10: Feedback Loop Key to Cost Control
FEEDBACK LOOP KEY TO COST CONTROL For personal use only • Frequent Reporting • Feedback Loop • Variance analysis on cost • Optimising mine plans drivers • New Reserves & Resources • Why, why, why ? • …the cycle starts again • Business Intelligence tools • Control Environment • Budgeting - physicals
Slide 11: Ramelius – The Mines
RAMELIUS – THE MINES * The Undergrounds: For personal use only ➢ Increase in number and quality of underground ops driving unit costs down over time ➢ Change-out of contractors ensures competitive environment ➢ Unit costs fallen from c. A$200/t to A$170/t The Open Pits: ➢ Will vary pit by pit and wi
Slide 12: Ramelius – The Mills
RAMELIUS – THE MILLS* Edna May: For personal use only ➢ Higher throughput more recently bringing unit costs down ➢ Grid power; low reagent use ➢ Averages < A$18/t consistently (2.7 mtpa) Mt Magnet: ➢ Higher cost quarters include mill shuts & planned maintenance ➢ Gas fired power; variable oxide/fres
Slide 13: Cash Generation Since July 2017
EMO - $41 M Marda - $13 M CASH GENERATION SINCE 1 JULY 2017 (ALL IN $A) Tampia - $14 M Penny - $43 M For personal use only Plant & Equipment $ 47 M Project Acquisitions Exploration $ 111 M $ 58 M Dividends $ 23 M Operating Cash Flow $651 Million Increase in Cash Mine Development $ 125 M $ 288 M EURO
Slide 14: Inorganic Growth – A History of Adding Value
INORGANIC GROWTH – A HISTORY OF ADDING VALUE* ➢ Track record of generating positive For personal use only (net) cash flow from new projects ➢ Marda now in production (300kt ore stockpile, ~A$25M in free cf.) ➢ Tampia commenced capital expenditure program ➢ Penny capital program brought forward from
Slide 15: Organic Growth – Mt Magnet Backbone of RMS
ORGANIC GROWTH – MT MAGNET BACKBONE OF RMS* For personal use only ➢ Mt Magnet acquired in 2011 for A$40M ➢ Chart shows only projects active in current Financial Year ➢ Active projects show a cumulative investment of A$101M, returning approximately A$281M ➢ Mt Magnet may yet prove to be the best inve
Slide 16: Focus for 2021
FOCUS FOR 2021 • Continue focus on meeting guidance & managing costs For personal use only Operational Excellence • Improving safety and excelling in our ESG performance • A$20M exploration budget - Mt Magnet and Edna May High Impact Exploration • Additional A$5M for Penny Project, taking FY2021 tot
Slide 17: Thank You
THANK YOU For personal use only Ramelius Resources Limited ASX Code: RMS Level 1, 130 Royal Street East Perth WA 6004 Authorised for release to the ASX by the Managing Director. For further information contact: Investor enquiries: Media enquiries: Mark Zeptner Tim Manners Luke Forrestal Managing Dir
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