Resolute Mining Limited · ASX:RSG
Resolute Mining — Investor Day (November 2017)
40 slides from Resolute Mining's investor day presentation, Nov 17, 2017
Slide 1: Mine Gold. Create Value. London Capital Markets Day
For personal use only Mine Gold. Create Value. London Capital Markets Day – Friday, 17 November 2017 Presentations by John Welborn, Lee-Anne De Bruin, Paul Henharen, and Bruce Mowat
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers For personal use only Not an offer of securities This presentation contains a summary of information about Resolute and its activities that is current as at the date of this presentation unless otherwise stated. The information in this presentation is general in nat
Slide 3: Important Notices and Disclaimers: Competent Person Statement
Important Notices and Disclaimers For personal use only Competent Person Statement The information in this presentation that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Andrew Goode who is a member of the Australasian Institute of Min
Slide 4: Corporate Summary
Corporate Summary (ASX:RSG) For personal use only Shares on issue 741,477,595 Share Price Share Price A$1.03 as at 16 Nov 2017 1.4 1.2 Market Capitalisation A$763M (US$585M) 1 $AUD Average daily volume 8.0M Shares 0.8 Cash, bullion, investments A$230M (US$176M) at 30 Sept 2017 0.6 0.4 Debt A$21M (US
Slide 5: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. 5
Slide 6: Mine Gold. FY17 Results
Mine Gold. For personal use only FY17 Results 329,834oz Total Gold Production A$1,132/oz All-In Sustaining Cost (AISC) 317,242oz A$1,717/oz Total Gold Sold Average Price Received (A$/oz) 6
Slide 7: Create value. FY17 Results
Create value. For personal use only FY17 Results A$541M A$177M Revenue from gold and silver sales Gross profit from operations A$136M Net Profit before tax $A290M Cash, Bullion & Listed Investments 7
Slide 8: Balance Sheet Strength
Balance Sheet Strength A financial turnaround driven by free cashflow generation For personal use only A$M Cash & bullion net of debt 300 250 200 150 100 50 0 -50 -100 Jun-15 Jun-16 Jun-17 8
Slide 9: Increasing AISC margin
Increasing AISC margin Active sales and lower costs deliver increasing AISC margin For personal use only A$/oz All-In Sustaining Cost & Average Price Received 2,000 1,800 1,717 1,624 1,600 1,467 1,400 424 585 373 1,200 1,000 800 600 1,200 1,094 1,132 400 200 0 Jun-15 Jun-16 Jun-17 All-In Sustaining
Slide 10: Three years running…
Three years running… Track record of strong operating performance For personal use only FY15 FY16 FY17 Original Guidance 315koz 300koz 300koz Production Actual 329koz 315koz 330koz (oz) Achieved ✔ ✔ ✔ Original Guidance A$1,280/oz A$1,280/oz A$1,280/oz AISC Actual A$1,094/oz A$1,200/oz A$1,132/oz (A$
Slide 11: Long life, large scale assets
Long life, large scale assets Three assets across West Africa and Australia For personal use only Syama Gold Ravenswood Bibiani Gold Mine Gold Mine Mine Mali, West Africa Queensland, Australia Ghana, West Africa Resolute has a successful A successful operating history Resolute acquired the Bibiani G
Slide 12: 8Moz over 28 years' continuous gold production and counting
8Moz over 25 years’ continuous gold production and counting… only 8,000,000 use 7,000,000 Syama For personal 6,000,000 Ravenswood ounces 5,000,000 Golden Pride 4,000,000 Obotan Bullabulling 3,000,000 Chalice Experience 2,000,000 Marymia Southern Cross 1,000,000 Higginsville Expertise 0 1993 1994 199
Slide 13: 4,300,000 ounces of gold produced from years of investing in Africa
For personal use only 4,300,000 ounces of gold produced from 20 years of investing in Africa 13
Slide 14: Syama Gold Mine Operation Highlights
Syama Gold Mine For personal use only Operation Highlights FY17 Operating Performance Ore Mined Ore Milled Head Grade Recovery Total Production AISC (t) (t) (g/t) (%) (Gold oz) A$/oz Syama Sulphide 1,215,153 2,106,371 2.59 69.8 136,000 1,001 Syama Oxide 1,319,596 1,340,097 2.84 83.2 101,830 960 Syam
Slide 15: Syama Gold Mine Overview
Syama Gold Mine 7.5Moz Total For personal use only Overview Resource* 2.9Moz Total Reserve Production Rate Sulphide Oxide 12 Year Underground Mine Life 2.4Mtpa 1.5Mtpa (170kozpa) (70kozpa) US$881/oz LOM AISC - Underground * Includes upgraded Syama U/G resource – see ASX Ann. 23 October 2017 15
Slide 16: Syama Definitive Feasibility Study
Syama Definitive Feasibility Study An industry standard sublevel cave (SLC) For personal use only • Life of Mine All-In Sustaining Costs of US$881 per ounce • Initial operating life of more than 12 years • Twin decline design - increased haulage capacity • Mining rate limited to current 2.4Mtpa proc
Slide 17: Sublevel Cave Mining at Syama
Sublevel Cave Mining at Syama A highly efficient, top-down, bulk mining method For personal use only • Controlled, high-productivity ore delivery Box cut for both portals Open Pit Outline • Highly mechanised / amenable to Return Air way Twin Portals automation Declines • Low up-front capex Initial a
Slide 18: Syama Underground
Syama Underground A world class sublevel cave in the making… For personal use only Syama (8Moz) Nafolo 18
Slide 19: Rapid Underground Development
Rapid Underground Development Syama Underground ahead of schedule For personal use only • Underground mine development has advanced more than 3km • Semi-automated drilling with Sandvik DD422i allowing longer rounds and rapid underground development with less overbreak 19 19
Slide 20: Processing enhancements at Syama
For personal use only Processing enhancements at Syama 1. P85 2. Low Carbon Roaster (LCR) 20
Slide 21: Project components: Lifting overall plant gold recovery to 85%
Project 85 components Lifting overall plant gold recovery to 85% For personal use only • Most gold lost from the Syama sulphide circuit is in the float tailings and calcine CIL tailings: • Gold not associated with floatable or slow floating sulphide reports to tails; • Incomplete liberation of gold
Slide 22: Double refractory sulphide ore processing
Double refractory sulphide ore processing CFB Roaster plant layout For personal use only Roaster Stack Calcine tails storage Secondary Cyclones Carbon Roaster enriched concentrate Spray Cooler storage Calcine CIL ESP 22
Slide 23: Refractory ore processing: Systematically increasing value
Refractory ore processing Systematically increasing value For personal use only Typical Composition of Syama Ore and Concentrate 2009 - Outotec and Resolute commissioned the Au, g/t S2-, % Corg, % circulating fluidised bed roaster. Ore 3.60 2.25 0.24 2013 – 2016 - Continuing to improve roaster Conce
Slide 24: Low carbon roast (LCR)
Low carbon roast (LCR) Process benefits For personal use only Roasting – CIL recovery increase: • Gold recovery up to 95% as indicated from testwork; • Achieved through a significant reduction in Corg. Carbon enriched concentrate: • Ability to treat the carbon enriched concentrate (CEC); • The CEC c
Slide 25: Roaster Performance: Current state
Roaster Performance Current state For personal use only Carbon Enriched Concentrate (CEC) ~ 6 tph @ ~ 4.7 % (w/w) Corg Fine carbon rich Concentrate calcine dust Roast – CIL 22-24 tph Gold Recovery: @~2% Roaster Plant CIL (w/w) Corg Coarse carbon lean calcine >90% Overall Calcine @ ~ 0.4-0.5 % (w/w)
Slide 26: Roaster Performance: Low Carbon Upgrade
Roaster Performance Low Carbon Upgrade For personal use only Carbon Enriched Concentrate (CEC) Agglomeration ~ 6 tph @ ~ 4.7 % (w/w) Corg Fine carbon rich calcine Concentrate dust Roast – CIL ~27 tph Gold Recovery: @~2% Roaster CIL (w/w) Corg Carbon lean calcine ~95%* @ ~0.2% (w/w) Corg • Agglomerat
Slide 27: Roaster Performance: Future supercharged roaster
Roaster Performance Future “supercharged roaster” For personal use only Carbon Enriched Concentrate (CEC) Agglomeration 1200 – 1300 Nm3/h O2 to ~ 6 tph @ ~ 4.7 % (w/w) Corg Fine roaster air flow stream carbon rich calcine Concentrate dust Roast – CIL ~27 tph Gold Recovery: @~2% Roaster CIL (w/w) Cor
Slide 28: A major gold discovery at Syama
A major gold discovery at Syama Exciting new discovery at Nafolo For personal use only • Adjacent to 8Moz Syama deposit • Potential to transform Syama operation • Untested to the south and at depth • All drillholes to date have intersected gold mineralisation • Remains open in all directions 28
Slide 29: Syama Gold Mine: One of Africa's premier gold mines
Syama Gold Mine One of Africa’s premier gold mines For personal use only Randgold Acacia Centamin Newmont Resolute Randgold Kibali Bulyanhulu Sukari Ahafo Syama Loulo 19.7Moz 18.7Moz 12.9Moz 10.4Moz 10.0Moz 9.9Moz Goldfields Anglogold Goldfields Anglogold Iamgold Randgold Tarkwa Geita Damang Iduapri
Slide 30: Ravenswood Gold Mine Operation Highlights
Ravenswood Gold Mine Operation Highlights For personal use only FY17 Operating Performance Ore Mined Ore Milled Head Grade Recovery Total Production AISC (t) (t) (g/t) (%) (Gold oz) A$/oz FY17 Actual 2,366,159 1,995,293 1.54 93.1 92,004 1,406 FY18 Production Guidance Gold Production AISC AISC (oz) (
Slide 31: Ravenswood Gold Mine Overview
Ravenswood Gold Mine Overview For personal use only 4.3Moz Total Resource Production Rate Post 2020 1.8Moz Total Reserve +130kozpa 13 Year Mine Life 2.8Mtpa 5.0Mtpa LOM Process Capacity - Current Nameplate Capacity A$1,166/oz AISC 31
Slide 32: Sarsfield and Buck Reef West
Sarsfield and Buck Reef West For personal use only Two large scale, bulk tonnage open pits Sarsfield Buck Reef West 32
Slide 33: Bibiani Gold Mine Overview
Bibiani Gold Mine For personal use only Overview Mining Rate 2.5Moz Total Resource* 1.2Mtpa 0.6Moz Total Reserve LOM >100koz Proposed Annual Production US$858/oz AISC US$72M Pre-production capex 5 Year 9 months Initial Mine Life Timeline to production * Includes upgraded Bibiani resource – see ASX A
Slide 34: Bibiani Gold Mine: Phase two drilling success
Bibiani Gold Mine Phase two drilling success For personal use only 34
Slide 35: Exploration for growth
Exploration for growth Exploring to expand the business, not stay in business For personal use only A$M Exploration Expenditure $40 Egypt $35 Mali $30 Democratic Republic $25 of the Congo Côte d’Ivoire $20 $15 Tanzania Ghana $10 $5 $0 FY15 FY16 FY17 FY18 35
Slide 36: Looking for New Opportunities
Looking for New Opportunities For personal use only Africa: the future is gold 36
Slide 37: Mine Gold. Create Value. Scale Longevity Value
Mine Gold. Create Value. For personal use only Scale Longevity Value 12yrs@ Syama P/NAV 5.6 Moz Reserves 13yrs @ Ravenswood 0.6 x Balance sheet Track Record Growth $290MCash, Bullion & Listed Investments 28 yrs 8Moz producing& counting Nafolo Bibiani Tabakaroni 37
Slide 38: Appendix 1: Mineral Resources Statement 2017
Appendix 1: Mineral Resources Statement 2017 For personal use only Group MEASURED INDICATED INFERRED TOTAL MINERAL RESOURCES 1 share kt g/t koz kt g/t koz kt g/t koz kt g/t koz koz Ravenswood (Australia) 100% Sarsfield (insitu) 2 45,522 0.8 1,168 38,497 0.7 882 22,079 0.7 518 106,098 0.8 2,568 2,568
Slide 39: Appendix 2: Ore Reserves Statement 2017
Appendix 2: Ore Reserves Statement 2017 For personal use only PROVED PROBABLE TOTAL Group share ORE RESERVES kt g/t koz kt g/t koz kt g/t koz koz Ravenswood (Australia) 100% Sarsfield (insitu) 2 28,450 0.8 747 18,640 0.7 423 47,090 0.8 1,170 1,170 Nolans East 1,543 0.8 37 612 0.7 14 2,155 0.7 51 51
Slide 40: Your gold awaits
For personal use only Your gold awaits Mine gold. Create value. ASX:RSG | www.rml.com.au 40