Geopacific Resources Limited · ASX:GPR
Geopacific Resources — Investor Presentation (November 2018)
23 slides from Geopacific Resources's investor presentation, Nov 13, 2018
Slide 1: Woodlark DFS confirms high margin development project
GEOPACIFIC RESOURCES LIMITED Woodlark DFS confirms high margin development project ASX: GPR Hy’ aaa! ne) ie SM ET TTC 2.2 Vrs ‘© (0) Post-tax capital payback 1 Moz 1 0 0 k (13yr operating life) Oz Gold pa (Average for first 5 years) Ww 33% IRR Pre-tax Exploration Upside —, 1$626m NS Cashflow 5 from
Slide 2: Investment Highlights
Investment Highlights High Low AISC of A$866/oz (Yr 1-5) & A$1,033/oz Strong Upfront operating cashflow generates (LOM) from shallow pits, flat terrain & Cashflow rapid 2.2yr project period Margin outcropping soft ore Robust Simple process route with gold production Licence Operating permits granted
Slide 3: Upfront cashflow drives rapid payback
Upfront cashflow drives rapid payback Strong upfront cashflow 2.2yr Project payback period A$343M Operating cashflow (Post-tax) 3
Slide 4: High Margin
High Margin Low operational costs & robust production schedule drive competitive AISC of A$866/oz* Outcropping Mineralisation Simple Processing Route Positive Operating Environment • Wide, near surface ore zones • CIL processing plant • Logistical advantages • Low strip ratio of 2.1 : 1 (Yr 1-2) • F
Slide 5: Corporate snapshot (ASX: GPR)
Corporate snapshot (ASX: GPR) Corporate Significant shareholders* Geopacific is an emerging Cash A strong shareholder Tembo Capital 29% gold producer focused on (30 September 2018) A$6.0m base containing large Resource Capital Funds 18% developing and expanding resource specialist funds Franklin Adv
Slide 6: Board and Senior Management
Board and Senior Management Geopacific’s team has built over 10 mines in 6 countries, in gold, coal and copper Mr•.Jerkovic is a qualified Mr Jerkovic geologist is a qualified with geologist postgraduate with qualifications postgraduate qualificationsininMining Miningand andMineral MineralEconomics
Slide 7: Milestones achieved to date
Milestones achieved to date Significant advances since acquisition Pre Geopacific Dec 2016 2017 2018 $150M spent Woodlark JV Kula Takeover Economic ownership increases to 93% 300km drilling Work started in 30,000m development drilling Resources Dec 2016 DFS 2012 complete Studies improve CAPEX and Re
Slide 8: Robust mine plan & strip ratio
Robust mine plan & strip ratio Delivering strong upfront operating cashflow, low AISC’s and rapid project payback Strong • 149Mt from 3 deposits over mining 10yr mine life profile • Progressive mining ramp up Multiple • Early target of highest grade staged pits ore averaging 1.72g/t Au Outcropping •
Slide 9: Robust production profile
Robust production profile Delivering strong upfront operating cashflow, low AISC’s and rapid project payback +100k oz • 2.4Mtpa milling capacity gold pa • +1Moz Gold Reserve (Yr 1-5 average) Simple • CIL processing method Processing • Stockpile to provide De-risked operational safety margin Low • Dr
Slide 10: Key information - Physicals
Key information - Physicals OPERATIONAL PHYSICALS Unit First 5 Yrs of Production * Life of Mine Strip Ratio (x) 3.2 3.9 Low strip ratio Total Material Mined (kt) 77,601 149,189 Ore Mined (kt) 18,404 30,304 Grade Mined (g/t Au) 1.16 1.11 Contained Gold (oz Au) 688,948 1,083,291 Ore Processed (kt) 11,
Slide 11: Key information - Financial
Key information - Financial CASHFLOW Life of Mine US$ Life of Mine A$ Strong upfront Cashflow from Operations Mi l l i on (M) 469 626 operating Less: Capital Expenditure Mi l l i on (M) (152) (202) Free Cashflow (Pre-tax) Mi l l i on (M) 318 424 cashflow Less: Income Tax Mi l l i on (M) (60) (80) Fr
Slide 12: Woodlark Infrastructure
Woodlark Infrastructure Woodlark Island 70km long, 25km wide 580km2 Exploration Licenses, 60km2 Mining Licence 600km east of Port Moresby Flat Topography & Logistical Advantages Key mining areas and plant area within 4km radius Easy access to all project areas incl. airstrip Wharf located within 7km
Slide 13: Licence to Operate
Licence to Operate Mining and Environmental Permits in place Strong working relationship with government & supportive community Commitment to provide positive & lasting benefits Primary provider of future employment opportunities Ongoing health and education initiatives 13
Slide 14: Development Pathway
Development Pathway Deliverables Q4 Q1 Q2 Q3 Q4 Yr 1 Yr 2 DFS Release Project Finance Complete EPC Plant Tendering & Contract Award Board Consideration & Approval GPR Manning Build Up Construction First Ore Mined Plant Commissioned Regional Exploration Program Obtain commercially attractive project
Slide 15: Resources and Reserves
Resources and Reserves Resources Reserves 47.04Mt at 1.04g/t Au for 1.57moz Au 28.9Mt at 1.12g/t Au for 1.04moz Au Category Tonnes Grade Ounces Category Tonnes Grade Ounces (>0.4g/t lower cut) (Mt) (g/t) (oz) (>0.4g/t lower cut) (Mt) (g/t) (oz) Measured 21.24 1.10 754,000 Proven 18.6 1.17 697,000 To
Slide 16: Upside - Near-pit depth extension
Upside - Near-pit depth extension Mineralisation remains open beneath pits in all directions Pits are constrained by limited drilling Further drilling Prior drilling was strategically focused within pit required Infill drilling of inferred area surrounding pits – potential for immediate upside Poten
Slide 17: Upside - additional in-pit ounces
Upside - additional in-pit ounces Potential to gain additional in-pit ounces and reduce strip ratio Inferred mineralisation surrounding pits Limited drilling access in village area, relocation agreed Mineralisation remains open at depth and in all directions 17
Slide 18: Regional exploration upside
Regional exploration upside Large regional goldfield covering highly prospective volcanic sequence High-quality exploration targets & over 30 prospect areas Visible gold across 580km2 EL (yellow) Gold follows mineralised structures (red) Significant potential beneath thin limestone cover 18
Slide 19: PNG – Proven Mining Investment Jurisdiction
PNG – Proven Mining Investment Jurisdiction Long mining history & member of the Commonwealth Home to numerous world-class gold mines Profitable gold operations on Islands Newcrest, Lihir at 66Moz Au St Barbara, Simberi at 6Moz Au Democratic government & stable fiscal environment Major trade partners
Slide 20: Valuation upside
Valuation upside Compelling valuation upside vs peers Low enterprise value to Reserve ounce ratio High operating margin (LOM) +1Moz Reserve with expansion potential Comparisons prepared by Petra Capital 20
Slide 21: Attractive valuation to peers
Attractive valuation to peers Market Competitive capitalisation Competitive AISC’s & strong Reserve base grade to tonnes Driven by low strip ratio of 3.4 : 1 (Yr 1-5) upside moved Comparisons prepared by Petra Capital 21
Slide 22: Investment Case
INVESTMENT CASE High margin Strong cash flow Robust production profile Licence to operate Exploration upside Proven management team Attractive valuation vs peers 22
Slide 23: Disclaimer and competent persons statement
Disclaimer and competent persons statement This presentation is for information purposes only. Neither this presentation nor the information The information in this report that relates to Woodlark Mineral Reserves is based on information contained in it constitutes an offer, invitation, solicitation
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