Sundance Resources — Panoramic Resources — Diggers and Dealers 2014
45 slides from Sundance Resources's conference presentation, Aug 5, 2014
Slide 1: Building a sustainable business: What a difference a year makes
Building a sustainable business What a difference a year makes Diggers and Dealers, Kalgoorlie 5 August 2014 Peter Harold, Managing Director ASX: PAN www.panoramicresources.com 1
Slide 2: Forward looking statements
Forward looking statements This presentation may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Such forward-looking statements may include, without
Slide 3: Key topics
Key topics 1 • Sustainability 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Key takeaways 6 • Additional information 3
Slide 4: Key attributes for a sustainable mining company
Key attributes for a sustainable mining company Safety – No 1 value Good people Quality assets Diversity Margins Dividends Capital growth Strong partnerships Clear strategy 4
Slide 5: Safety – our No. 1 value
Safety — our No. 1 value = = — = = —— >} | Wholly Owned Subsidiary of Panoramic Resources Limited - START SAFE > END SAFE tt PANORAMIC 5 RESOURCES LTO
Slide 6: Good people
PANORAMIC Good people
Slide 7: Quality assets & diversified commodities
Quality assets & diversified commodities Pt + Pd 2.8M oz Au 2.5M oz Ni 187kt Cu 39kt Co 3kt See appendices for full Resource & Reserves tables 7
Slide 8: Margins
Panoramic Group Payable Nickel Analysis 16 16 14 14 12 12 10 10 Realised Ni Price Post Hedging ™, ‘ash Margin Post Hedging & QP Adjustments A$ per lb Payable Cash Cost Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 ee PANORAMIC 8 RESOURCES LTD
Slide 9: Dividends - $104.7M fully franked to-date
Dividends - $104.7M fully franked to-date Panoramic Dividend History 18 16 14 6.5 12 10 5.0 8 6 12.0 10.0 2.0 4 7.0 2 2.0 4.0 4,440 2.0 1.0 1.0 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Interim Dividend (cents per share) Final Dividend (cents per share) 9
Slide 10: Capital growth - share price performance
Capital growth - share price performance Market Cap and Enterprise Value 12 month performance against peers Pro forma PAN.ASX EVN.ASX IGO.ASX MCR.ASX OZL.ASX PAN ASX Ticker ASX:PAN RMS.ASX SLR.ASX WSA.ASX SIR.ASX Shares on issue 320.2M 335% Share Price $0.97 285% (1 August 2014) 235% Market Cap A$31
Slide 11: Partnerships
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Slide 12: Clear strategy – what we are good at
Clear strategy – what we are good at • Discovering ore bodies • Underground mining • Managing costs • Returns to shareholders • Buying unloved assets • Retaining good people 12
Slide 13: Key topics
Key topics 1 • Overview 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Key takeaways 6 • Additional information 13
Slide 14: Our nickel business
Our nickel business • Two mines • Strong production history • Costs down • Productivity up • Loyal workforce • Exploration success 14
Slide 15: Record production year
Record production year Panoramic Total Nickel Production 24,000 5 Ni Contained in Conc./Ore uForecast 18,000 5 Production Ni contained ad o i—J o 2004105 200506 200607 200708 2008/9 2009/10 2010/11 2011/12 2012/3 201314 201415 —= PANORAMIC 15 RESOURCES LTD
Slide 16: Savannah – FY15
Savannah – FY15 • Production guidance • Nickel 8-9kt Ni • Copper 5-5.5kt Cu • Cobalt 400-450t Co • Exploration • Savannah North • Drilling below the 900 Fault • Budget ~$15M 16
Slide 17: Savannah North - major discovery
Savannah North - major discovery • Discovery hole 89.3m @ 1.60% Ni • Another 33.7m @ 1.56% Ni 17
Slide 18: Savannah North – next steps
Savannah North – next steps Potential • EM and mineralisation open to west and northwest • New zone 150m below current Savannah North mineralisation? Forward Work Plan • Extending 1570 drill drive • Drill position available early 2015 • Drill out Savannah North 18
Slide 19: Lanfranchi – FY15
Lanfranchi – FY15 • Production guidance • Nickel 11-12kt Ni* • Exploration • Down-plunge extensions of existing orebodies • EM targets • Mineralised channels on northern Tramways Dome • Budget $3.5M *Subject to BHP Nickel West acceptance of ore delivers above 350ktpa level 19
Slide 20: Potential channel extensions
Potential channel extensions • Lanfranchi Channel 500m below surface 6,000t Ni per 100m vertical • Schmitz Channel 700m below surface 9,000t Ni per 100m vertical • Helmut/Deacon Channel 900m below surface 20,000t Ni per 100m vertical 20
Slide 21: Northern Tramways Dome
Northern Tramways Dome • Historic drilling limited to 300m below surface • Two high MgO channels previously discovered with nickel sulphides • Best results from 2008 • 0.3m at 9.27%Ni • 1.2m at 6.98%Ni • 1.0m at 3.41% Ni • Currently pattern drilling and down-hole EM 21
Slide 22: Nickel market - looking good
Nickel market - looking good • Strong demand • Supply issues • Indonesian ore export ban • 40% price rally since January • Peaked at US$10.00/lb • Currently ~US$8.30/lb • Some forecasts of +US$13/lb in 2015 22
Slide 23: Key topics
Key topics 1 • Overview 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Key takeaways 6 • Additional information 23
Slide 24: Our PGM business
Our PGM business Panton Panton Resources Western Australia 14.3Mt at 2.19g/t Pt, & 2.39g/t Pd* Perth Thunder Bay North Ontario Panton BFS proposed mine development Resources Thunder Bay 0.7Moz of Pt+Pd* Toronto • Two advanced projects • Total Resources of 2.8Moz Pt+Pd* Winter drilling at Thunder Bay
Slide 25: Thunder Bay North – Earn-in and Option to JV with Rio Tinto Exploration
Thunder Bay North – Earn-in and Option to JV with Rio Tinto Exploration • The Consolidated Project Panoramic - Thunder Bay North (TBN) Rio Tinto Exploration Canada (RTEC) - Escape Lake (EL) • Three Phase Agreement 1. Exploration Target Generation - RTEC to spend CAD$250k 2. Earn in Option - RTEC opt
Slide 26: PGM market - prices have moved higher
PGM market - prices have moved higher Platinum market balance Palladium market balance Key points Key points • Ongoing structural supply issues • Demand growth in China and US • Limited new supply coming on • Limited ability to substitute • Price has rallied strongly in 2014 • Price trading at a 14
Slide 27: Key topics
Key topics 1 • Overview 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Key takeaways 6 • Additional information 27
Slide 28: Our gold business
Our gold business WilsonsWilsons – Conceptual Underground – Conceptual Design Underground Design Gidgee Resources 1.3Moz at 2.3g/t Au Western Australia Mt Henry Drilling at Mt Henry Resources Perth 1.2Moz at 1.18g/t Au • Two advanced projects • Total Resources of 2.5Moz Au* Gidgee Mill *See Appendic
Slide 29: Gold market - price still volatile
Gold market - price still volatile Current Gold price in $US and $A • Price volatile • Number of recent gold transactions • Corporate activity building Medium/Long term • Demand growing • New projects needed • CAPEX & OPEX will be higher • Many forecasters quoting US$1,200-1,300/oz long term 29
Slide 30: Key topics
Key topics 1 • Overview 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Key takeaways 6 • Additional information 30
Slide 31: Proven track record
Proven track record • 2001 Acquired Savannah (Sally Malay) • 2004 Savannah commissioned • 2005 Lanfranchi purchased • 2006 Lanfranchi re-commissioned Deacon orebody discovered • 2007 Record profit $88.1M Maiden fully franked dividend 12 cents • 2011 Acquired Gidgee Gold • 2012 Acquired Mt Henry, Thu
Slide 32: Community engagement
Community engagement SPREAD YOUR WINGS al PANORAMIC
Slide 33: FY2015 plans
FY2015 plans Safety • Improve safety performance • Production guidance 20-21,000t Ni Nickel • Maintain focus on costs and productivity • Maximise operating margin • Advance Panton PGMs • Thunder Bay North Earn-in and JV • Deliver Feasibility Studies Gold • Realise value • Savannah - drill below 900
Slide 34: Next three years
Next three years Safety • Improve safety performance • Maintain production at +20,000t Ni Nickel • Savannah - deliver +10 year mine life • Lanfranchi - deliver +5 year mine life PGMs • Advance both projects to development ready status Gold • Realise value • Nickel - continue to explore Exploration •
Slide 35: At all times we must focus on
At all times we must focus on • Our people • Safety • Sustainability • Profitability • Professionalism • Innovation • Growth 35
Slide 36: Thank you
Thank you ASX : PAN www.panoramicresources.com Mission Statement We strive to achieve excellence in all aspects of our business to provide long term capital growth and dividend return to our shareholders, a safe and rewarding work environment for our employees, and opportunities and benefits to the
Slide 37: Additional information
Additional information Appendices Resources, Reserves, Relevant Disclosures and Competent Persons Statements Note: further 2012 Edition JORC compliance tables are referenced in the PAN December 2013 quarterly report 37 37
Slide 38: Appendix 1 - Nickel Resources (Ni,Cu,Co)
Appendix 1 - Nickel Resources (Ni,Cu,Co) Savannah, Copernicus, Lanfranchi Resources Table at 30 June 2013 Measured Indicated Inferred Total Equity Date of JORC Metal Resource Metal Ni Ni Ni Ni (%) Resource Compliance Tonnes Tonnes Tonnes Tonnes Tonnes (%) (%) (%) (%) Savannah Project 100 0 0 Nickel
Slide 39: Appendix 2 - Nickel Reserves (Ni,Cu,Co)
Appendix 2 - Nickel Reserves (Ni,Cu,Co) Savannah, Copernicus, Lanfranchi Reserves Table at 30 June 2013 Equity Date of JORC Proven Probable Total Metal Reserve Metal (%) Reserve Compliance Tonnes (%) Tonnes (%) Tonnes (%) Tonnes Savannah Project Upper Zone 100 Nickel Jul-13 2012 - - 650,000 1.23 650
Slide 40: Qualifying statement and notes
Qualifying statement and notes Savannah Project (including Copernicus) All Savannah Project Resources and Reserves, with the exception of Copernicus have been transitioned to JORC Code 2012. The Copernicus Project Resources and Reserves remain JORC 2004 compliant and are based on a cut-off grade at
Slide 41: Appendix 3 - Gold Project(s) Resources (Au)
Appendix 3 - Gold Project(s) Resources (Au) Gidgee Project and Mt Henry Project Resources Table at 30 June 2013 Measured Indicated Inferred Total Equity Date of JORC Metal Resource Metal Au Au Au Au (%) Resource Compliance Tonnes Tonnes Tonnes Tonnes (Au oz) (g/t) (g/t) (g/t) (g/t) Gidgee Project 10
Slide 42: Qualifying statement and notes
Qualifying statement and notes Gidgee Project On the Gidgee Project, Howards, Shiraz and Wilsons Resources have been transitioned to JORC Code 2012 compliance. All other Resources remain JORC 2004 compliant. Individual Project Resources and Reserves are stated on an equity basis. Information in rela
Slide 43: Appendix 4 - Panton PGM Project - Resources
Appendix 4 - Panton PGM Project - Resources Panton PGM Project Resources Table at 30 June 2013 Grade Metal (oz) Equity Date of JORC Resource Tonnage Pt Pd Au Cu Ni (%) Resource Compliance Pt Pd (g/t) (g/t) (g/t) (%) (%) Top Reef 100 Mar-12 2004 Measured 4,400,000 2.46 2.83 0.42 0.28 0.08 348,000 400
Slide 44: Appendix 5 - Thunder Bay North PGM Project - Resources
Appendix 5 - Thunder Bay North PGM Project - Resources Thunder Bay North Resources Table at 30 June 2013 Grade Metal (oz)) Equity Date of JORC Resource Tonnage Pt Pd Rh Au Ag Cu Ni Co Pt-Eq (%) Resource Compliance Pt Pd (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%) (g/t) Open Pit 100 Jan-11 2004 Indicat
Slide 45: Qualifying statement and notes cont.
Qualifying statement and notes cont. Underground Resource The internal Underground Mineral Resource estimate for the East Beaver Lake extension was made by ordinary kriging methods using the same technical and financial parameters as those used by AMEC Americas Limited for the Underground Mineral Re