Focus Minerals Ltd · ASX:FML
Focus Minerals — Investor Presentation (March 2011)
20 slides from Focus Minerals's investor presentation, March 2011
Slide 1: Focus Minerals Limited: Aggressively Expanding into a Rising Gold Price
ASX: FML www.focusminerals.com.au Focus Minerals Limited Aggressively Expanding into a Rising Gold Price CAMPBELL BAIRD: CHIEF EXECUTIVE
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making in
Slide 3: Focus Minerals: A Rapidly Expanding Gold Producer
Focus Minerals: A Rapidly Expanding Gold Producer Profitable Gold producer based in Western Australia’s Eastern Goldfields Producing profitably for 3 years Resource base of 2.1 million ounces 1.2Mtpa processing facility Funded the development of 2 new mines from cash flow (opening H1 2011) On track
Slide 4: Asset Location
Asset Location Greater Coolgardie Three Mill Hill treatment plant 1.2Mtpa processing facility Tindals Mining Centre • Underground & open pits The Mount Underground Mine Treasure Island Gold Project 4
Slide 5: Focus Minerals At A Glance
Focus Minerals At A Glance ASX Code FML Ordinary Shares 2,882m Market Cap A$224m Unlisted Options 84m Cash and Bullion $8.6m (31/12/10) Debt $0.0m Range 12 month A$0.04 – A$0.10 Average Daily Volume (3m) 25.2m shares Board & Senior Executive Shareholders (as at 31/12/10) Location Shares % Executive
Slide 6: Focus has transformed its business inside 2 years
Focus has transformed its business inside 2 years Moved from being an explorer to producer End of 2008 Start of 2011 • 1 producing mine • 3 producing mines • Toll treating • 1.2Mtpa processing plant • Produced 17,445oz • Will produce 100,000oz pa • $20m Debt. 35Koz Hedge • position 2 Yrs. No debt or
Slide 7: Focus is a Growth Business
Focus is a Growth Business Focus has been reinvesting profits into an aggressive mine expansion programme Revenue Growth EBITDA Growth Normalised EPS 80,000,000 25,000,000 0.40 60,000,000 20,000,000 15,000,000 0.20 40,000,000 10,000,000 20,000,000 5,000,000 0.00 0 FY 09 FY 10 FY 11 0 FY 09 FY 10 FY
Slide 8: Right Strategic Assets
Right Strategic Assets • 1.2Mtpa plant in Coolgardie. Processing at +100,000tpm since June 2010 Three Mile Hill • < 5km from Tindals Mining Centre. 85km from The Mount Processing plant • Configurable to expand capacity • Long life cash generation platform – engine room of Focus Tindals Gold Mining •
Slide 9: Focus Minerals Overview
Focus Minerals Overview Focus Minerals Ltd.
Slide 10: Three Mile Hill Treatment Plant
Three Mile Hill Treatment Plant 1.2Mtpa plant currently operating at 1.3Mtpa Processing at +100,000 tonnes per month since June 2010 Spent $22M recommissioning & took to full nameplate capacity inside 6 months. Replacement value of >$100 million; 2 years construction for a similar plant 10
Slide 11: Tindals Mining Centre
Tindals Mining Centre Stable underground production profile Commencing open pits in April 2011. Significant upside at depth Tindals Mining Centre has been the engine room of the Focus business. In a region that has produced >1Moz over the last 100 years. Total Resource of 11.1 Mt @ 2.8g/t for 1M oun
Slide 12: Tindals Mining Centre…..continued
Tindals Mining Centre…..continued Underground Operations: Underground mine currently producing at +45,000tpm @ 3.5g/t. Comprises 5 main ore bodies & gold endowment of 2,500 oz. per vertical metre Open Pits Will commence open pit mining in April 2011. 3 ore bodies immediately planned for development.
Slide 13: Greater Coolgardie Region
Greater Coolgardie Region Coolgardie massively underexplored Greater Coolgardie Focus has 220sqkm of tenements located in heart of Coolgardie gold belt. Resource of 11.3M tonnes @ 1.9g/t for 694,000 ounces Reserve of 1.1M tonnes @ 1.7g/t for 60,000 ounces - Greenfields in Reserve Massively underexpl
Slide 14: The Mount: Spearheading Next Stage of Expansion
The Mount: Spearheading Next Stage of Expansion New high-grade mine Significant boost to Focus’ production profile Box Cut High-grade Underground Mine Completely new production area 85km to the south of Three Mile Hill plant 2.1M tonnes @ 5.5g/t for 370,000 ounces Footprint of 300m x 600m – remains
Slide 15: Greenfields Exploration: Treasure Island Gold Project
Greenfields Exploration: Treasure Island Gold Project World class gold project on the Boulder-Lefroy Fault Biggest gold producing system in Australia Absolute greenfields exploration Treasure Island project delivering surface samples of 58.9 g/t, 48.4 g/t & 39.8 g/t Commenced drilling in 1st week of
Slide 16: Treasure Island Gold Project
Treasure Island Gold Project Significant number of samples contain extensive finely disseminated visible gold in quartz | Multiple vein arrays Additional projects already identified to the north, south and east of Treasure Island including paleochannels + Junction style deposit 16
Slide 17: Summary High-Level Strategic Growth Plan
Summary High-Level Strategic Growth Plan 50,000oz 77,000oz 100,000oz +130,000oz +???? Calendar 2009 Calendar 2010 On track 2011 Target 2012 Production from Tindals underground mine & stockpiles Tindals Underground | 45,000tpm @ 3.5g/t The Mount | 30,000tpm @ 5.5g/t Tindals Open Pits | 30,000tpm @ 2.
Slide 18: Investment Summary
Investment Summary Focus management team has a demonstrated track record of delivery to production, on time, on budget. A profitable gold producer delivering 100,000oz of gold. Strong portfolio of mining & exploration operations. A clear strategic growth plan to grow production to +130,000oz
Slide 19: Appendices: Resources and Reserves
Appendices Appendix 1: FOCUS MINERALS RESOURCES at 30 September 2010 Appendix 2: FOCUS MINERALS RESERVES AND STOCKS at 30 September 2010 Measured Resources | Indicated Resources | Inferred Resources Total Resources eserves: Proven Reserves iI Probable Reserves IL “Tal Reserves ] Tonnes | Grade Tonne
Slide 20: Aggressively Expanding into a Rising Gold Price
Aggressively Expanding into a Rising Gold Price 20