Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (May 2015)
27 slides from Hillgrove Resources's shareholder meeting presentation, May 28, 2015
Slide 1: Annual General Meeting Company Update
For personal use only ANNUAL GENERAL MEETING COMPANY UPDATE STEVE McCLARE IIIII CEO & MANAGING DIRECTOR 28 MAY 2015
Slide 2: Safety Has Improved But Must Be Better
SAFETY HAS IMPROVED BUT MUST BE BETTER For personal use only The Total Recordable Injury Frequency Rate (TRIFR) has improved 75% in the last three years. This year the severity has reduced but the frequency remains. It must continue to decline before we can be proud of this reduction. 2
Slide 3: Community Communications
COMMUNITY COMMUNICATIONS Engagement continues through the Kanmantoo Callington Community Consultative For personal use only Committee (KCCCC), with key areas discussed including dust, noise, lights and rehabilitation program A Dust Working Party was formed promoting understanding and community i
Slide 4: Dust Monitoring
4 For personal use only DUST MONITORING
Slide 5: Dust Monitoring – Summer Period 14/15
10 20 30 40 50 60 70 0 01/12/2014 00:00 5 For personal use only 03/12/2014 00:00 05/12/2014 00:00 07/12/2014 00:00 09/12/2014 00:00 11/12/2014 00:00 13/12/2014 00:00 15/12/2014 00:00 17/12/2014 00:00 19/12/2014 00:00 21/12/2014 00:00 23/12/2014 00:00 25/12/2014 00:00 27/12/2014 00:00 29/12/2014 00:0
Slide 6: Seed Farm and Rehabilitation
SEED FARM AND REHABILITATION For personal use only 6
Slide 7: Environmental Offset Rehabilitation
ENVIRONMENTAL OFFSET REHABILITATION For personal use only 7
Slide 8: Waste Dump Shaping and Rehabilitation
WASTE DUMP SHAPING AND REHABILITATION For personal use only 8
Slide 9: PEPR Extension
PEPR EXTENSION Program for Environment Protection and Rehabilitation (PEPR) in relation to the Life For personal use only of Mine plan for ML6345 and ML6436 was approved by the Department of State Development. The approval provides a 75% increase in processed ore and a two year extension to 2019
Slide 10: Sustainable Operations
SUSTAINABLE OPERATIONS Owner Operator mining - July 2013 For personal use only - 48% mining unit costs + 81% mining production + 8% payload per truck + 24% truck efficiency + 17% drilling efficiency - 17% blasting powder factor - 29% fuel consumption - 75% dilution 10
Slide 11: Processing and ROM Unit Costs
PROCESSING AND ROM UNIT COSTS For personal use only 11
Slide 12: Ore Processing
For personal use only 12 ORE PROCESSING
Slide 13: Annual Accounts and Report Highlights
ANNUAL ACCOUNTS AND REPORT HIGHLIGHTS For personal use only A record 20,693t Cu within concentrates produced EBITDA of $42.7M with underlying EBITDA of $53.4M Statutory Profit after tax of $3.8M with Underlying Profit after tax of $10.1M Reduction in bank debt from $40.8M to $18.0M - Gearing
Slide 14: Strong Hedge Book Performance
STRONG HEDGE BOOK PERFORMANCE For personal use only Hillgrove Resources Hedge Book (A$/mt) 9,000 8,000 7,000 6,000 Month End Cash Price (A$/mt) Expired Hedging (A$/mt) Committed Hedging (A$/mt) 6,500mt of copper hedges added in April 2015 at a price of A$7,917/mt (A$3.59/lb) before margins. 19.6
Slide 15: Mine Life Potential
MINE LIFE POTENTIAL For personal use only Reduced Mining and Reserve Exploration Processing Costs Existing PEPR New Proposed PEPR Further PEPR 2015 2016 2017 2018 2019 2020 2021 2022 2023 15
Slide 16: Strategy – Enhance Shareholder Value
STRATEGY – ENHANCE SHAREHOLDER VALUE For personal use only THREE PILLARS FOR ENHANCING SHAREHOLDER VALUE KANMANTOO REGIONAL CAPITAL MINE GROWTH MANAGEMENT Productivity and cost Enabling the focus to maximise free Company to maximise cash flow generation shareholder value Targeted regional through ap
Slide 17: Enhancing Shareholder Value – Kanmantoo
ENHANCING SHAREHOLDER VALUE – KANMANTOO For personal use only 17
Slide 18: Giant Pit Potential
GIANT PIT POTENTIAL Lower costs potentially allow a second cutback on the Giant Pit with existing resource. For personal use only Current Confirmatory Mined Optimisation Surface Current Giant Pit Design Optimisation Options with Reduced Costs Section Line Model Legend > 0.6% Cu 0.4% < Cu <0.2% < 0
Slide 19: Broader Exploration Programme
BROADER EXPLORATION PROGRAMME Wheal Ellen appears to For personal use only continue at depth but not along strike Detailed gravity surveys to north of Kavanagh / Giant have indicated extensions Helicopter TEM completed 19
Slide 20: Initial Exploration Success
INITIAL EXPLORATION SUCCESS Exploration success in a 433 metre deep For personal use only reverse circulation (RC) hole, 200 metres to the north of the current resource. 28 metres @ 0.61% Cu, 0.14g/t Au and 2.6g/t Ag at a 0.2% Cu cut off – within a broader mineralised zone of; 39 metres @ 0.47%
Slide 21: Initial Exploration Success
INITIAL EXPLORATION SUCCESS For personal use only Two density inversion shells that may cause the observed surface gravity signature, and the location of KTRC995 exploration hole Conceptual 3D model of the two potential density shells. Note that the shells have been truncated artificially just north
Slide 22: Kanmantoo Exploration Next Steps
KANMANTOO EXPLORATION NEXT STEPS For personal use only 22
Slide 23: Kanmantoo Exploration Next Steps
KANMANTOO EXPLORATION NEXT STEPS For personal use only 23
Slide 24: What Happened in Nugent
WHAT HAPPENED IN NUGENT For personal use only 24
Slide 25: Managing Directors Intent
MANAGING DIRECTORS INTENT For personal use only Shore up revenue – complete Giant cutback promptly Lower costs – Company wide Simplify and consolidate organisation in line with renewed focus on Kanmantoo Extend life – through input cost reductions and exploration Maximise cash from Operati
Slide 26: Statement
STATEMENT 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 completeness of all or part of this docum
Slide 27: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag For personal use only Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 2.63 0.88 0.10 1.95 the Australian Securities