Slide 1: SACOME Presentation: Q2 and Company Update
For personal use only SACOME PRESENTATION Q2 AND COMPANY UPDATE GREG HALL IIIII CEO & MANAGING DIRECTOR 29 AUGUST 2013
Slide 2: Production and Exploration Assets
HILLGROVE FIRST QUARTER UPDATE 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 in Indonesia Sumba gold project (80% owned) Kanmantoo B
Slide 3: Corporate Snapshot
HILLGROVE FIRST QUARTER UPDATE CORPORATE SNAPSHOT ASX listed: HGO For personal use only Shares on issue: 1,023.8 million SHAREHOLDER DISTRIBUTION Share price: AUD0.085* Market capitalisation: AUD87.0 million* Cash and cash equivalents: AUD17.1 million @ 31 July Debt AUD48.3 million 47%
Slide 4: Kanmantoo Mine and Exploration Area
HILLGROVE FIRST QUARTER UPDATE KANMANTOO COPPER MINE AND EXPLORATION AREA 100%-owned by Hillgrove For personal use only 55km from Adelaide, South Australia Mining Lease is within 500km2 Exploration Exploration Area EL4401 License, and relatively unexplored Exploration potential considered hi
Slide 5: 2Q and Company Highlights – Mining Operations and Production
HILLGROVE FIRST QUARTER UPDATE 2Q AND COMPANY HIGHLIGHTS – MINING OPERATIONS AND PRODUCTION Areas of high grade ore were reached in the main Kavanagh Pit at base of old For personal use only Kanmantoo mine pit Run of Mine (ROM) mill feed was impacted by the mining services changeover, resulting
Slide 6: 2Q and Company Highlights – Mining Services
HILLGROVE FIRST QUARTER UPDATE 2Q AND COMPANY HIGHLIGHTS – MINING SERVICES A mutual termination of the Mining Services contract with Exact Mining For personal use only Services was executed toward the end of July, which is subject to approval by Hillgrove’s finance partners Temporary contract se
Slide 7: 2Q and Company Highlights – Revenue and Costs
HILLGROVE FIRST QUARTER UPDATE 2Q AND COMPANY HIGHLIGHTS – REVENUE AND COSTS Revenue for the quarter was AUD27.6 million at an average realised price for For personal use only copper of USD3.56/lb C1 costs for the quarter were USD2.40 per pound A revision of C1 costs for the 12 months to July
Slide 8: Mine Grade and Ore to ROM
KANMANTOO COPPER MINE MINE GRADE AND ORE TO ROM For personal use only Mining Grade and Ore to ROM % KT 0.9 800 0.8 700 0.7 600 0.6 500 0.5 400 0.4 300 0.3 0.2 200 0.1 100 0 0 Apr‐12 Jul‐12 Oct‐12 Jan‐13 Apr‐13 Jul‐13 Ore to ROM from Pit kt Mining Grade to ROM % ROM mill feed was impacted by weathe
Slide 9: Ore Milled and Grade
KANMANTOO COPPER MINE ORE MILLED AND GRADE For personal use only Ore Milled and Grade % KT 0.8 800 0.7 700 0.6 600 0.5 500 0.4 400 0.3 300 0.2 200 0.1 100 0 0 Apr‐12 Jul‐12 Oct‐12 Jan‐13 Apr‐13 Jul‐13 Ore Milled kt Milled Grade ‐ Cu % Mill and wet plant continued to perform well during quarter, wi
Slide 10: Processing Costs Reduced
KANMANTOO COPPER MINE PROCESSING COSTS REDUCED For personal use only C1 cash costs of production were down to USD2.40/lb (using an average AUD/USD exchange rate of 0.9513) Due to removal of additional equipment from ROM for much of the quarter and a reduction in operating costs, in particular pr
Slide 11: Strong Hedge Book
KANMANTOO COPPER MINE STRONG HEDGE BOOK For personal use only Hillgrove AUD Copper Position Strong hedge book provides certainty A$10,000 for cashflows and revenue in future A$9,000 periods Approximately A$8,000 38,000 tonnes of copper swaps A$7,000 65-70% of forecast copper production A$6,000
Slide 12: Significant Increase in Regional Recruitment
KANMANTOO COPPER MINE SIGNIFICANT INCREASE IN REGIONAL RECRUITMENT Sixty two new Hillgrove employees recruited in first half of August 2013, For personal use only representing: 80% employee increase from the local region (Callington/Kanmantoo) 95% employee increase from the Adelaide Hills regi
Slide 13: New Contract Arrangements
KANMANTOO COPPER MINE NEW CONTRACT ARRANGEMENTS A Supply, Maintenance and Repair Contract (SMARC) for the provision of For personal use only major and minor mobile mining equipment being developed with established operator Andy’s Earthmovers (Asia Pacific) Pty Ltd Mobilised an initial mining fle
Slide 14: Strong Reliance on SA and Local Suppliers
KANMANTOO COPPER MINE STRONG RELIANCE ON SA AND LOCAL SUPPLIERS For personal use only Over 363 suppliers have been used since the start of construction and mining 92% of these are South Australian based Approximately half of our suppliers are locally based, ie Callington, Kanmantoo, Mt Barker,
Slide 15: Life of Mine
KANMANTOO COPPER MINE LIFE OF MINE LOM plan to encompass Note: For personal use only Rodda will include Emily immediate resource areas – Star; and Giant will include Giles, Lean and Valentine targeting 10 year life of operations Mining performance currently focussed on Kavanagh pit, with the pit
Slide 16: Sensitivities and Guidance
HILLGROVE FIRST QUARTER UPDATE SENSITIVITIES AND GUIDANCE For personal use only SENSITIVITIES TO REVENUE AUD/USD +/- 5% AUD 2.8 million Copper Price +/- 10% AUD 4.5 million Gold Price +/- 10% AUD 0.8 million GUIDANCE FOR FY2014 Production Copper 16,500 – 18,000 tonnes Costs C1 Costs USD 2.
Slide 17: Summary
HILLGROVE FIRST QUARTER UPDATE SUMMARY Revenue for the quarter was AUD27.6 For personal use only million at an average realised price for copper of USD3.56/lb Kanmantoo revised guidance for FY14 revised following mining services changeover 16,500 to 18,000t Cu Positive cash generation in FY14,
Slide 18: Key Contacts
HILLGROVE FIRST QUARTER UPDATE KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000 E: info@hillgroveresources.com.au T: 61 2 8247 9300 18
Slide 19: Disclaimer
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