Slide 1: Kanmantoo Production Update and Investor Site Visit
For personal use only KANMANTOO PRODUCTION UPDATE AND INVESTOR SITE VISIT RUSSELL MIDDLETON IIIII CHIEF EXECUTIVE OFFICER (ACTING) STEVE MCCLARE IIIII GENERAL MANAGER KANMANTOO 30 OCTOBER 2012
Slide 2: 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
Slide 3: Third Quarter FY13 Update
For personal use only THIRD QUARTER FY13 UPDATE 3
Slide 4: Production Update: Key Improvements During the Quarter
THIRD QUARTER PRODUCTION UPDATE KEY IMPROVEMENTS DURING THE QUARTER Mining For personal use only Improved ore tracking and deposition plan Improved mining practises to minimise dilution Continued review of mining contract performance Processing and Crushing Successful reline of the SAG M
Slide 5: Production Update: Key Production Achievements
THIRD QUARTER PRODUCTION UPDATE KEY PRODUCTION ACHIEVEMENTS For personal use only Mining Increased mining movements Reduction in ore dilution Processing and crushing Increased mill throughput Improved mill feed grade Increased copper concentrate production and metal content Fourth an
Slide 6: Continued Uplift in Production
THIRD QUARTER PRODUCTION UPDATE CONTINUED UPLIFT IN PRODUCTION Previous April July October Quarter YTD Financial Year Quarter Quarter to Date* (at 28/10/12) For personal use only Total Tonnes Mined (kt) 3,156 3,481 3,417 3,495 10,393 Ore to long term stockpiles (kt) 382 298 248 214 760 Ore to ROM (k
Slide 7: Continued Uplift in Production
THIRD QUARTER PRODUCTION UPDATE CONTINUED UPLIFT IN PRODUCTION Mining For personal use only Legacy lower grade stocks from previous quarter processed during August and early September Enhanced pit design Optimisation of drill and blast Enhanced deposition planning Increased productivity
Slide 8: Cost Performance: C1 Unit Production Costs Decreasing
THIRD QUARTER COST PERFORMANCE C1 UNIT PRODUCTION COSTS DECREASING For personal use only Apr-12 Jul-12 QTR to YTD Period QTR QTR 30/09/12* (at 30/9/12) US cents per lb Mining Costs 132 116 93 114 Processing Costs 111 88 94 97 Other Direct Cash Costs 29 22 23 26 Total Onsite Costs 272 226 210 237 Tra
Slide 9: Cost Performance: C1 Unit Production Costs Decreasing
THIRD QUARTER COST PERFORMANCE C1 UNIT PRODUCTION COSTS DECREASING For personal use only C1 unit cash cost trending down Driven by disciplined mining practises Increased copper grades Proposed new crusher will further reduce processing unit costs Other cost initiatives Pit design optimis
Slide 10: Outlook
For personal use only 10 OUTLOOK
Slide 11: Step Change Improvements: Growing Free Cash Flows
STEP CHANGE IMPROVEMENTS GROWING FREE CASH FLOWS For personal use only $’s • New Primary Crusher • Lower unit costs ‐ maximise mill rate • Short term planning ‐ sulphidisation ‐ ore continuity ‐ cost reduction ‐ waste deposition • Resource expansion • Drill and Blast ‐ on site conversion • Focus on
Slide 12: Other Improvement Initiatives: Proposed New Primary Crusher
OTHER IMPROVEMENT INITIATIVES PROPOSED NEW PRIMARY CRUSHER For personal use only Proposed new crusher will increase throughput from 2.4 to 2.8 million tonnes per annum Capex cost = $3.3 million including improved flow in ore bin Benefits through Reduced costs by removing interim crusher, roc
Slide 13: Kanmantoo Exploration
KANMANTOO EXPLORATION FOCUS ON EXTENDING RESERVE LIFE THROUGH NEAR MINE EXPLORATION For personal use only First half 2012 program was focused on Resource extension within Kanmantoo Mining Lease New life of mine plan to be completed in November 2012 Reserve upgrade expected by January 2013 Ev
Slide 14: Next Quarter Outlook: Key Goals
NEXT QUARTER OUTLOOK KEY GOALS For personal use only Growing positive cash flow Further operational improvements Cost reviews Continuation of improvement trajectory 14