Ramelius Resources Limited · ASX:RMS
Ramelius Resources — 121 Mining Investment Conference, Hong Kong 2019
24 slides from Ramelius Resources's conference presentation, Mar 19, 2019
Slide 1: Ramelius Resources Investor Presentation
Ramelius Resources Limited For personal use only Mark Zeptner Tim Manners Managing Director Chief Financial Officer ASX:RMS INVESTOR PRESENTATION 121 Mining Investment Conference, Hong Kong 121 MINING INVESTMENT CONFERENCE • MARCH 2019 1
Slide 2: Qualification: Forward Looking Statements
QUALIFICATION For personal use only Forward Looking Statements This presentation contains certain forward looking statements with respect to Ramelius’financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Actual results,
Slide 3: Corporate Summary – Newly Added to the ASX300
CORPORATE SUMMARY – NEWLY ADDED TO THE ASX300 Corporate Structure: at 14 March 2019 Share Price Performance Shares on Issue 645M $0.80 10,000,000 For personal use only Market Cap A$464.4M @ $0.72 per share 9,000,000 $0.70 8,000,000 Cash & Gold A$109.8M (at 31 December 2018) $0.60 7,000,000 Debt Nil
Slide 4: Operations Summary
OPERATIONS SUMMARY ▪ Western Australia based gold producer operating from two main For personal use only production hubs, Mt Magnet and Edna May ▪ The Mt Magnet hub comprises a number of open pit and underground operations complemented by high grade ore sourced and hauled from the Vivien underground
Slide 5: Ramelius – Adding Value via Acquisition and Efficient Mining
RAMELIUS – ADDING VALUE VIA ACQUISITION AND EFFICIENT MINING For personal use only ✓ • Recent acquisitions provide additional mine life and maximise the value of existing infrastructure ✓ • Strategic acquisitions always a consideration – new production hub ✓ • Strong balance sheet and cashflows allo
Slide 6: Recent Acquisitions
RECENT ACQUISITIONS ✓ For personal use only Tampia Hill and Marda Projects now being integrated – aiming to achieve Ore Reserve position in excess of 1,000,000oz* Tampia Hill Gold Project * Aspirational statement 121 MINING INVESTMENT CONFERENCE • MARCH 2019 6
Slide 7: Strategic Acquisitions
STRATEGIC ACQUISITIONS ✓ For personal use only Edna May acquired in late 2017 for A$38.4M from Evolution Mining Ltd ✓ Since acquisition: - Produced 131,400 ounces of gold - AISC of A$1,219/oz - Generated >A$65M in free cash, for 68% ROI - and there is plenty more to come… ✓ Edna May firmly establish
Slide 8: Strong Balance Sheet and Cashflows
STRONG BALANCE SHEET AND CASHFLOWS ✓ For personal use only A$109M in cash and gold, no debt – ready to execute on strategy Vivien Mining Operations Mt Magnet Mining Operations 121 MINING INVESTMENT CONFERENCE • MARCH 2019 8
Slide 9: Focus on Mining Excellence and Cost Minimisation
FOCUS ON MINING EXCELLENCE AND COST MINIMISATION ✓ FY2020 production estimate of 230-250,000oz For personal use only ✓ New Life of Mine Plan to be published in June 19 Quarter Mt Magnet Processing Plant Mt Magnet Mining Operations 121 MINING INVESTMENT CONFERENCE • MARCH 2019 9
Slide 10: Focus on Mining Excellence and Cost Minimisation
FOCUS ON MINING EXCELLENCE AND COST MINIMISATION ▪ FY2019: For personal use only ▪ Re-forecasting of H2 FY2019 has re-confirmed guidance for full year FY2019 of 190-210,000oz ▪ AISC forecast remains at A$1,150-1,250/oz ▪ FY2019 guidance maintained without incorporating any ounces from Greenfinch due
Slide 11: Project Summary
For personal use only PROJECT SUMMARY 121 MINING INVESTMENT CONFERENCE • MARCH 2019 11
Slide 12: Mt Magnet – Keeps Delivering New Resources
MT MAGNET – KEEPS DELIVERING NEW RESOURCES ▪ +6Moz gold camp, Ramelius since 2011 For personal use only ▪ Galaxy Mine Area ▪ 4 open pits complete 2011-2017 ▪ Further potential below Titan & Saturn pits ▪ Cosmos Mine Area ▪ Milky Way open pit underway ▪ Stellar open pits underway ▪ Shannon open pit u
Slide 13: Mt Magnet – Shannon Underground & Eridanus Open Pit Ore Reserves
MT MAGNET – SHANNON UNDERGROUND & ERIDANUS OPEN PIT ORE RESERVES For personal use only “New discoveries within a gold camp that has been around for over 100 years…” ▪ Updated Mineral Resource ▪ Fresh open pit, lying between two existing pits ▪ 770,000 tonnes @ 4.7 g/t Au for 115,000oz ▪ Maiden Miner
Slide 14: Vivien – High Grade Ore Hauled to Mt Magnet
VIVIEN – HIGH GRADE ORE HAULED TO MT MAGNET, AISC BELOW A$1,000/OZ ▪ Consistent producer at ~12.5koz per Quarter For personal use only ▪ Produced 105koz project-to-date ▪ On track to return over A$100M in cash: 10 times the initial investment ▪ Mineral Resource ▪ 674,000t @ 5.9 g/t Au for 127,000 ou
Slide 15: Edna May – Growing Beyond Stage 2 Open Pit
EDNA MAY – GROWING BEYOND STAGE 2 OPEN PIT STAGE 2 OPEN PIT For personal use only ▪ Mining completed 26 October 2018 GREENFINCH OPEN PIT ▪ Approvals processes ongoing ▪ Ore Reserve ▪ 1.7Mt @ 1.2 g/t Au for 62,000oz ▪ 88% increase on previous Ore Reserve ▪ Commencement target June 2019 Qtr PRODUCTION
Slide 16: Edna May – Underground Development Underway
EDNA MAY – UNDERGROUND DEVELOPMENT UNDERWAY ▪ Low capital cost, high grade production at Edna May to sit alongside For personal use only potential open pit developments ▪ Resource open at depth with possibility to extend mine life beyond current Ore Reserve position ▪ Initial Ore Reserve ▪ 398,000 t
Slide 17: Marda Gold Project – Integration Underway
MARDA GOLD PROJECT – INTEGRATION UNDERWAY ▪ ~200km north-east of the Edna May processing plant For personal use only ▪ Fits well with Ramelius’ ore haulage based business model ▪ Infill drilling commenced to enable JORC 2012 resource/reserve reporting ▪ Initial production estimate for FY20 incorpora
Slide 18: Tampia Hill Project (Explaurum Ltd Takeover)
TAMPIA HILL PROJECT (EXPLAURUM LTD TAKEOVER – ASX:EXU) ▪ Acquired via Cash & Scrip Off-Market Takeover Offer for Explaurum For personal use only ▪ Compulsory acquisition notices sent 25th Feb 2019 ▪ Ramelius to swiftly progress Strategic Review of Tampia Hill Project; a. On-site processing facility
Slide 19: What Next for Tampia?
WHAT NEXT FOR TAMPIA? ▪ Strategic Review completion target end of April 2019; For personal use only ▪ Tampia infill RC and Mace extension AC drilling ongoing ▪ Discussions with key stakeholders and Shire commenced ▪ Hydro-geological and environmental studies underway ▪ Additional metallurgical test
Slide 20: Inexpensive Relative to Peers
INEXPENSIVE RELATIVE TO PEERS ASX-LISTED AUSTRALIAN FOCUSED GOLD PRODUCERS For personal use only $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 EV/Production (A$ per oz) $6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 *Based on FY19 guidance $500 *MOY, GCY based on CY19 guida
Slide 21: Growth Strategy in Action
GROWTH STRATEGY IN ACTION ▪ Australia’s 7th largest domestic producer For personal use only ▪ Favourable jurisdiction ▪ Strategic processing assets ▪ Strong balance sheet ▪ Added to S&P/ASX-300 ▪ Excellent management team ▪ Proven operating track record Delivering on growth! 121 MINING INVESTMENT
Slide 22: 2019 Key Focus Areas
2019 KEY FOCUS AREAS For personal use only • $15M exploration program plus recent acquisitions build on 700koz Ore Step Change in Reserve Position Reserve with a target of 1Moz in sight • Disciplined acquisition strategy which must be value accretive Operational Excellence • 20 of last 22 Quarters m
Slide 23: Mineral Resource Statement
MINERAL RESOURCE STATEMENT MINERAL RESOURCES AS AT 30 JUNE 2018 - INCLUSIVE OF RESERVES For detailed information relating to Mineral Project Deposit Resources see ASX Release (RMS) 18 Sept 2018, Measured Indicated Inferred Total Resource Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au ‘Resources
Slide 24: Ore Reserve Statement
ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 JUNE 2018 For detailed information relating to Ore For personal use only Reserves see ASX Release (RMS) 18 Sept Proven Probable Total Reserve 2018, ‘Resources and Reserves Statement Project Mine Tonnes Au Au Tonnes Au Au Tonnes Au Au 2018’. kt g/t
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