Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Merger or Acquisition (February 2020)
40 slides from Ramelius Resources's merger presentation, Feb 25, 2020
Slide 1: Ramelius Offer for Spectrum Metals
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS RAMELIUS OFFER FOR SPECTRUM METALS February 2020 1 SPECTRUM TAKEOVER OFFER – FEBRUARY 2020
Slide 2: Qualification: Forward Looking Statements
QUALIFICATION Forward Looking Statements For personal use only This presentation contains certain forward looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and unce
Slide 3: Ramelius Corporate Summary
RAMELIUS CORPORATE SUMMARY Corporate Structure: Production Guidance: For personal use only Shares on Issue 658M Mineral Resources1 4.10Moz at 30 June 2019 Ore Reserves 0.84Moz at 30 June 2019 Market Cap2 A$958M @ $1.455 per share FY 2019 Production 196,679oz @ AISC A$1,192/oz Cash & Gold3 A$87.7M 1H
Slide 4: Spectrum Metals Offer
For personal use only SPECTRUM METALS OFFER SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 4
Slide 5: Ramelius to Acquire Spectrum Metals
RAMELIUS TO ACQUIRE SPECTRUM METALS Penny North Drilling Highlights1 ✓ Ramelius to acquire Spectrum Metals Limited, For personal use only owner of the high-grade Penny West Gold Project SPWRC002 14m @ 14.4 g/t from 124m including 8m @ 23.4 g/t SPWRC027 6m @ 47.4 g/t from 150m including 2m @ 140.0 g/
Slide 6: Ramelius – Continued Growth Path
RAMELIUS – CONTINUED GROWTH PATH ✓ The acquisition is in line with Ramelius’ strategy For personal use only of acquiring high quality assets within a radius of existing production centres ✓ Provides a near-term development opportunity to introduce additional high-grade ore feed to the Mt Magnet proc
Slide 7: Rationale – Strong Alignment and Mutual Shareholder Benefits
RATIONALE – STRONG ALIGNMENT AND MUTUAL SHAREHOLDER BENEFITS For personal use only • Utilisation of existing processing facilities at Mt Magnet to reduce capital costs and provide Mutual value-add earlier revenue profile whilst maintaining exposure to ongoing exploration potential • Provides Rameliu
Slide 8: Spectrum Offer – Key Details
SPECTRUM OFFER – KEY DETAILS For personal use only • Off-market takeover offer by Ramelius Resources for all the ordinary shares of Spectrum Metals Limited Structure (the “Offer”)1 • One (1) Ramelius shares for every ten (10) Spectrum shares held and cash consideration of A$0.017 per Spectrum share
Slide 9: Spectrum's Penny West Gold Project
SPECTRUM’S PENNY WEST GOLD PROJECT ✓ High-grade Mineral Resources estimate of 799kt @ 13.8 g/t For personal use only Au for 355,500oz1 ▪ Includes highly prospective shear zone (“Penny North”) Resource estimate of 569kt @ 16.8 g/t Au for 306,800oz ✓ Excellent drilling results post Resource estimate a
Slide 10: Financial Results Half Year Ended December 2019
For personal use only FINANCIAL RESULTS HALF YEAR ENDED 31 DECEMBER 2019 SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 10
Slide 11: H1 FY2020 – Highlights
H1 FY2020 – HIGHLIGHTS For personal use only • NPAT: Up 329% to A$20.5M (Dec 18: A$4.8M) Financial Results • Cash & Bullion: A$87.7M (June 2019: A$106.8M); Debt free1 • Mineral Resources upgrade: 660,000t @ 5.7 g/t Au for 120,000oz2 Vivien Project • Mine life: Extended to June 2021 • Mineral Resourc
Slide 12: H1 FY2020 – Production & Sales
H1 FY2020 – PRODUCTION & SALES1 For personal use only • Group: 92,084oz (H1 FY2019: 104,051oz) Gold Production • Mt Magnet: 66,987oz (H1 FY2019: 56,628oz) • Edna May: 25,097oz (H1 FY2019: 47,423oz) • Group: A$1,240/oz (H1 FY2019: A$1,220/oz) AISC • Mt Magnet: A$1,193/oz (H1 FY2019: A$1,193/oz) • Edn
Slide 13: H1 FY2020 – Financial Highlights
H1 FY2020 – FINANCIAL HIGHLIGHTS1 HY Ended HY Ended % For personal use only Financials Units 31 Dec 2019 31 Dec 2018 Change Revenue A$’000 158,451 181,846 (13%) EBITDA A$’000 65,910 50,036 32% EBITDA Margin A$’000 41.6% 27.5% 51% Net profit after Tax A$’000 20,494 4,777 329% Cash Flow from Operation
Slide 14: Reconciliation of NPAT (Dec to Dec 19)
RECONCILIATION OF NPAT (DEC 18 TO DEC 19) ➢ Lower operating costs per ounce For personal use only largely driven by improving grades at Mt Magnet ➢ Lower gold sales with the main ore source at Edna May being LG stockpiles but with a 10% higher realised gold price ➢ Underlying costs per tonne and cos
Slide 15: Guidance & Forward Outlook
GUIDANCE & FORWARD OUTLOOK1 ➢ Sep and Dec Quarterly guidance achieved For personal use only ▪ 44,182 ounces @ AISC A$1,234/oz ▪ 47,902 ounces @ AISC A$1,245/oz ➢ FY2020 Guidance maintained ▪ 205-225,000 ounces @ AISC A$1,225 – A$1,325/oz ➢ Marda production commencement ➢ Greenfinch approvals receive
Slide 16: Key Assets & Outlook
For personal use only KEY ASSETS & OUTLOOK SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 16
Slide 17: Two Key Production Centres
TWO KEY PRODUCTION CENTRES* Mt Magnet Production Centre Edna May Production Centre For personal use only ➢ Comprises a number of open pit and underground ➢ Comprises the Edna May underground, operations Greenfinch open pit project and substantial low grade stockpiles - all within 1km radius ➢ Comple
Slide 18: History of Delivering on Corporate Actions
HISTORY OF DELIVERING ON CORPORATE ACTIONS ➢ Ramelius has successfully acquired value For personal use only accretive projects near existing production centres: ▪ Acquired 100% of Explaurum for A$64 million ▪ Purchased Marda Gold Project for A$13 million ▪ Both projects proximal to Edna May gold min
Slide 19: Resources & Reserves by Production Centre
RESOURCES & RESERVES BY PRODUCTION CENTRE Mt Magnet/Vivien Resources & Reserves1 For personal use only ➢ Mineral Resources 2.34Moz ➢ Ore Reserves 0.40Moz Edna May, Marda & Tampia Resources & Reserves1 ➢ Mineral Resources 1.73Moz ➢ Ore Reserves 0.44Moz Total Resources & Reserves2 ➢ Mineral Resources
Slide 20: Resources & Reserves Growth
RESOURCES & RESERVES1 GROWTH Historical Resources and Reserves ✓ Exploration success and the For personal use only 4,500 900 acquisition of the Tampia and Marda 840 gold projects has increased both: 4,000 800 698 3,500 1,200 700 ➢ Mineral Resources: 3,000 600 ▪ 81 Mt @ 1.6g/t Au for 4.10 Moz 1,100 R
Slide 21: Long Term Production Outlook – One Million Ounces
LONG TERM PRODUCTION OUTLOOK* - ONE MILLION OUNCES OVER 5 YEARS Production Target2 ✓ FY19 production confirmed For personal use only 300 $1,500 ~200,000oz production rate Prior Year 1,330 Mine Life 1,275 1,270 Extensions 1,240 1,250 250 1,192 $1,250 ✓ FY20 production guidance of 205-225,000oz1 200 $
Slide 22: Exploration & Development
For personal use only EXPLORATION & DEVELOPMENT SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 22
Slide 23: Exploration Success – Eridanus Resource
EXPLORATION SUCCESS – ERIDANUS RESOURCE ➢ Significant deeper exploration For personal use only . drilling success, showing grade and thickness improving with depth: ▪ 65m at 1.79 g/t Au including 32m at 3.81 g/t Au from 287m in GXRC2062 ▪ 160m at 1.99 g/t Au from 140m in GXRC756 ▪ 83m at 1.48 g/t Au
Slide 24: Vivien – Mine Life Extended to Late 2021
VIVIEN - MINE LIFE EXTENDED TO LATE 2021 Vivien Extension Mine Design ➢ Mine Ext. drilling below For personal use only 140 Level has resulted in additional Resources & Reserves1to 560mbs; ▪ Resource of 250kt @ 5.8g/t Au for 48,000 oz Au ▪ Reserve of 197kt @ 4.8g/t Au for 30,000 oz Au ▪ Decline re-st
Slide 25: Edna May – Regional Drilling Success
EDNA MAY - REGIONAL DRILLING SUCCESS ➢ Symes’ Find initial Mineral Resource estimate of For personal use only 0.54Mt @ 1.9g/t Au for 34,000oz Au1 ➢ The first significant discovery (outside Edna May) ➢ Tampia prospective for additional resources, drilling underway 1See RMS ASX Release, “Resources and
Slide 26: Strategic Focus
STRATEGIC FOCUS • Continue to focus on meeting guidance and managing costs For personal use only Operational Excellence • Ensure new developments deliver the best possible returns • A$20M exploration budget - Mt Magnet and Edna May High Impact Exploration • Continue to explore opportunities around p
Slide 27: Ramelius – Breaking into a Gallop
RAMELIUS – “BREAKING INTO A GALLOP” For personal use only Sunrise at Edna May gold mine This ASX announcement was authorised for release by the Board of Directors of Ramelius Resources Limited Ramelius Resources Limited ASX Code: RMS Level 1, 130 Royal Street East Perth WA 6004 For further informati
Slide 28: 2019 Mineral Resource Statement
2019 MINERAL RESOURCE STATEMENT MINERAL RESOURCES AS AT 30 JUNE 2019 - INCLUSIVE OF RESERVES Project Deposit Measured Indicated Inferred Total Resource For detailed information relating to Mineral For personal use only t g/t oz t g/t oz t g/t oz t g/t oz Galaxy Group 92,000 1.8 5,400 4,100,000 1.6 2
Slide 29: 2019 Ore Reserve Statement
2019 ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 JUNE 2019 For detailed information relating to Ore Reserves For personal use only Project Mine Proven Probable Total Reserve see ASX Releases (RMS) “Resources and Reserves t g/t oz t g/t oz t g/t oz Statement 2019”, 10 September 2019, “Vivien
Slide 30: Annexure – Composite Intervals Eridanus
ANNEXURE 1 Significant (>0.10 g/t Au) Composite Intervals (not previously reported intervals geologically constrained to the granodiorite host) from Mt Magnet (Eridanus) RC + For personal use only Diamond Drilling Results - WA Centroid pierce points (see Slide 15). True widths are variable given the
Slide 31: Annexure (cont.)
ANNEXURE 1 (CONT.) Significant (>0.50 g/t Au) Diamond core sampling results from recent geotechnical drilling at Mt Magnet (Eridanus) - WA For personal use only Pierce points (see Slide 15). True widths are variable given the various hole azimuths drilled but estimated true thickness of the host gra
Slide 32: Annexure (cont.)
ANNEXURE 1 (CONT.) F/depth Hole_ID Easting Northing RL Azi/Dip From (m) To (m) Interval (m) g/t Au For personal use only (m) GXDD0091 * 576943 6894089 430 331/-40 396.2 232 239.5 7.5 1.00 (Eridanus) 275 277 2 2.91 289.4 290 0.6 9.07 298 310 12 1.60 incl. 302 303 1 10.70 307 310 3 1.31 GXDD0092 57675
Slide 33: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 33
Slide 34: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 34
Slide 35: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 35
Slide 36: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 36
Slide 37: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 37
Slide 38: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 38
Slide 39: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 39
Slide 40: JORC Table
JORC - TABLE 1 For personal use only SPECTRUM TAKEOVER OFFER – FEBRUARY 2020 40
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