Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Wilson HTM Rapid Insights Conference 2012
31 slides from Vault Minerals's conference presentation, Nov 22, 2012
Slide 1: ASX cover letter: Investor presentation
Red 5 Limited ABN 73 068 647 610 PO Box 1911 West Perth 6872 Telephone: +61 8 9322 4455 Western Australia, Australia Facsimile: +61 8 9481 5950 22 November 2012 For personal use only ASX Market Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Pl
Slide 2: The newest Philippines gold producer
For personal use only RED 5 Limited The newest Philippines gold producer Wilson HTM Rapid Insights Conference November 2012 RED 5 Li m i t ed
Slide 3: Presenter – CG Jackson
Presenter – CG Jackson For personal use only Slide 2 RED 5 Li m i t ed
Slide 4: Company overview
Company overview For personal use only • Commercial production declared 16 April 2012 Production guidance (under review) • – formerly 75,000 ounces for 12 months ending June 2013 • Forecast cash costs sub $350 per ounce, low relative to peers • Minimum 10 year life - open pit for the first 8
Slide 5: Red 5 at a glance
Red 5 at a glance... For personal use only RED – ASX: A$1.25 Market Cap: A$170m Issued Shares: 135.5m Cash and gold (31 October 2012) A$13m Enterprise Value (post construction, per 2009 LOM production ounce): US$192/oz Debt (US$8m – one year), no hedge or FX positions Substantial Shareholders Baker
Slide 6: The Philippines
The Philippines For personal use only Resource rich area - providing a number of key growth opportunities • Third largest gold mineral endowment • Fourth largest copper mineral endowment The Philippines has strong investment ratings • Standard & Poor’s rating: BB+ • Fraser Institute: Safest Coun
Slide 7: Surigao del Norte – highly prospective
Surigao del Norte – highly prospective For personal use only Slide 6 RED 5 Li m i t ed
Slide 8: Siana gold mine fast facts
Siana gold mine fast facts For personal use only Red 5 beneficial Interest 100% Location Philippines – Surigao del Norte, Mindanao Island Capital cost to commercial production US$85.6million (VAT US$9.9m refundable against tax) Commercial production declared 16 April 2012 for interim throughput at 7
Slide 9: Production guidance
Production guidance (downward revision under review) For personal use only 12 months to June 2013 Ounces produced 75,000 Cash cost per ounce* sub US$ 340 Total cost per ounce sub US$ 655 Capital development – US$25.3 million second half of year Sustaining capital US$1.6 million Exploration US$5.5 mi
Slide 10: Cash and total cost breakdown
Cash and total cost breakdown For personal use only Direct Cash Operating Costs AUD/oz Mine Costs Open Pit (attributable to ORE tonnes) 87 Processing Costs 203 G & A Costs (includes portion of Manila costs) 68 Refining and Freight 4 Other Selling costs (Govt. Excise Tax, SDMP) 45 Silver Credits (at
Slide 11: Drivers of low costs
Drivers of low costs For personal use only High ore grade in environment where most miners are also lowering cut-off grades to extend mine life Gold present in argillised clays not with quartz - results in lower power consumption and maintenance Lower fuel costs (minimal Government taxes) Lo
Slide 12: Siana site layout
Siana site layout For personal use only Slide 11 RED 5 Li m i t ed
Slide 13: Ramp-up phase continues
Ramp-up phase continues For personal use only Plant modifications to handle sticky ore completed. Jaw crusher recently installed. Surge bin conveyor improvement scheduled November 2012 Power plant (stand-by) – fully operational Mining ramp-up slow due to silt and mine contractor fleet availa
Slide 14: Photo gallery – process plant
Photo gallery – process plant For personal use only Slide 13 RED 5 Li m i t ed
Slide 15: Silt removal took months – now complete
Silt removal took 4 months – now complete For personal use only Slide 14 RED 5 Li m i t ed
Slide 16: Contractor's yard – two thirds of fleet laid-up
Contractor’s yard – two thirds of fleet laid-up For personal use only Slide 15 RED 5 Li m i t ed
Slide 17: Changes in progress
Changes in progress For personal use only Personnel - new mine superintendent and maintenance team in place - vacancy for a direct of operations (interim COO in place) Equipment - additional generating sets ordered to cover deteriorating grid power (essential for pit dewatering continuity) - add
Slide 18: Siana new Resource
Siana new Resource For personal use only Mineral Resource (as at September 2011) Gold Contained Silver Contained Category Tonnes Grade Gold Grade Silver (million) (g/t) (‘000 oz) (g/t) (‘000 oz) Indicated Resource Stockpiles 0.1 1.2 4 8.7 31 Open Pit 9.6 2.5 765 4.5 1,379 Underground 0.9 6.7 199 12.
Slide 19: Mine plan opportunities
Mine plan opportunities For personal use only New Resource – 0.8g/t cut-off grade in pit (previously 1.1g/t) – 81% classified as Indicated category (previously 60%) – open pit accounts for 83% of tonnes and 65% of the ounces (previously 48% and 31% respectively) – additional 526,000 ounces availab
Slide 20: New positions in the pit
New positions in the pit For personal use only Previously unidentified mineralisation noted in north east corner of pit Follow-up drilling (SMDD128) intersects 10 metres at 4.0g/t just 15 metres below current cut back bench Further intersections in most eastern panels – 7 metres at 11.8 g/t an
Slide 21: Underground mining – not to project year
Underground mining – not to project year 8 For personal use only Underhand cut and fill (top down) Road header in ore (more productive in soft ground than conventional drill and blast) – additional benefit less explosive on site Drill and blast for hard material Paste fill ground support – c
Slide 22: Resource panels – upside potential?
Resource panels – upside potential? For personal use only Panels 1-3 represent 89% of LOM plan Panels 4 – 10 insufficiently drilled from surface due to length of angled hole and cost. Best drilled from underground Slide 21 RED 5 Li m i t ed
Slide 23: Siana long section – unfinished business
Siana long section – unfinished business For personal use only Slide 22 RED 5 Li m i t ed
Slide 24: Near mine growth opportunities
Near mine growth opportunities For personal use only Only minimal drilling outside the pit area Near mine exploration – north Spandonis (4 holes) and south Dayano (5 holes) Regional surface sampling at Dayano and Spandonis complete Plus Mapawa and Alegria Slide 23 RED 5 Li m i t ed
Slide 25: Tenement opportunities - Mapawa
Tenement opportunities - Mapawa For personal use only Slide 24 RED 5 Li m i t ed
Slide 26: Tenement opportunities - Alegria
Tenement opportunities - Alegria For personal use only Slide 25 RED 5 Li m i t ed
Slide 27: On-going community support
On-going community support For personal use only Red 5 has taken an active role in local community relations Projects include: Clean water project Health assistance Education programs Welfare programs Agricultural assistance Infrastructure assistance Security assistance Slide 26 RED 5
Slide 28: Summary
Summary For personal use only ramps-up Share price to re-rate as and when Red 5 production and delivers on guidance Low cash costs relative to peers mine Resource growth potential at Siana extending current life aMapawa and Alegria represent the potential for second project in close proximit
Slide 29: Questions
Questions For personal use only Slide 28 RED 5 Li m i t ed
Slide 30: Competent Persons Statement
Competent Persons Statement For personal use only The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on, and accurately reflects, information compiled by Mr Rohan D Williams who is a full time employee of Red 5 Limited and is a Membe
Slide 31: Contact details
Contact details For personal use only Australia Philippines Level 2, 35 Ventnor Avenue Greenstone Resources Corporation West Perth, Western Australia 6005 Level 5, NOL Tower PO Box 1911 West Perth, WA 6872 Commerce Ave, cnr Acacia Ave Ph: + 61 8 9322 4455 Madrigal Business Park Muntinlupa City