Regent Pacific Group Limited · HKEX:575
Regent Pacific — Corporate Update (July 2007)
23 slides from Regent Pacific's corporate update, July 2007
Slide 1: Corporate Update
Regent Pacific Group Limited Corporate Update J uly 2007
Slide 2: Regent – Early Stage Producer with Growth
Regent – Early Stage Producer with Growth Shares: 1,650M (outstanding) 2,314M (fully diluted) Turnover: 22.44M Shares/day (3 months average) Market cap: US$323M (fully diluted) Listed: Hong Kong and Frankfurt Code and Index: 0575.HK and 0575.F Share price: HK$1.09 (or 13.97 US cents)
Slide 3: Regent – Share Structure at 22 June 2007
Regent – Share Structure at 22 June 2007 SHARE STRUCTURE SUBSTANTIAL SHAREHOLDERS 1,650 million shares outstanding Jim Mellon (Chairman): 25.09% - Basic 21.09% - Fully Diluted 143 million employee options Sir John Templeton: 8.50% - Basic outstanding 6.06% - Fully Diluted Gladiator Asset Mgt: 5.81%
Slide 4: Dapingzhang Mine – Copper and Zinc Operation in China (Copper)
Dapingzhang Mine – Copper and Zinc Operation in China COPPER OPERATION Mining: Open Pit Processing: Conventional flotation Product: Copper concentrate with gold & silver credits Forecast Metal Sold 2007: 3,000t/a Forecast Metal Sold 2008: 9,000t/a Cash Costs 2007: -3.50* Cash Costs 2008: -2.00* Copp
Slide 5: Dapingzhang Mine – Copper and Zinc Operation in China (Zinc)
Dapingzhang Mine – Copper and Zinc Operation in China ZINC OPERATION Mining: Open Pit Processing: Conventional flotation Product: Zinc concentrate with potential silver credits Forecast Metal Sold 2007: 15,000t/a Forecast Metal Sold 2008: 28,000t/a Zinc Resources (Contained): 230,000t/a Expansion fe
Slide 6: Dapingzhang Mine – 3D Plan of Pits
Dapingzhang Mine – 3D Plan of Pits
Slide 7: Dapingzhang Mine
Dapingzhang Mine • Life of mine to 2015 • Current drilling is showing great potential to extend well beyond 2015 • Open cut mining operation • Contract mining • Mining well ahead of schedule – over 140,000 tonnes of Zinc rich (>5%) Dawaz ore on ROM
Slide 8: Dapingzhang Mine – Ore Reserves
Dapingzhang Mine – Ore Reserves Ore Reserves as at 31 March 2007 15.57Mt - Cu average grade 1.17% and Zn average grade of 1.09% Reserves Grade tonnes Copper Zinc Gold Silver Lead Deposit Classification Ore Type millions % % g/t g/t % Dapingzhang Pit Probable Massive 8.37 1.72 1.53 0.47 17.98 0.16 Di
Slide 9: Dapingzhang Mine – Mineral Resources
Dapingzhang Mine – Mineral Resources Mineral Resource Statement as at March 2007 Indicated Resource Inferred Resource Tonnes Copper Zinc Gold Silver Lead Tonnes Copper Zinc Gold Silver Lead Deposit Ore Type (Mt) (%Cu) (%Zn) (Au g/t) (Ag g/t) (%Pb) (Mt) (%Cu) (%Zn) (Au g/t) (Ag g/t) (%Pb) Dapingzhang
Slide 10: Consultants – Blue Chip Firms
Consultants – Blue Chip Firms Committed to using Blue Chip Firms for assisting on optimisation programme Resource Estimation: Cube Consulting Mine Engineering: Cube Consulting Metallurgical: SGS Lakefield Geotechnical: George, Orr & Associates Environmental: Environmental Resources Management (ERM)
Slide 11: Environment, Health & Safety
Environment, Health & Safety • Completed and now implementing, needs analysis • Committed to International Best Practice Standards • Environmental Resources Management - completing mine wide EHS plan and training • SRK and ENFI - upgrading tailings disposal, waste dump and wastewater management plan
Slide 12: Regent – Projects
Regent – Projects DAPINGZHANG JV • Increasing quality and productivity of mining operations • Increasing throughput from September 2007 • New mill in preliminary design • Drilling resource extensions • Regional exploration YINZISHAN JV • Drilling started with two rigs
Slide 13: Exploration – Strong Commitment & Budget
Exploration – Strong Commitment & Budget • Strategic focus on exploration • Significant budget – US$8M (2007) • Drilling biased • Focussed target styles – VMS (polymetallic) • Total VMS landholding over 157km2
Slide 14: Regional Exploration
Regional Exploration • Regional exploration commenced successfully with first VMS discovery outside of Dapingzhang Mine • Discovery significant – Cu-Zn mineralisation known over camp sized 6km strike length & open to north • Belt potential to host additional VMS systems • Major exploration programme
Slide 15: Yinzishan JV – The Next VMS Deposit?
Yinzishan JV – The Next VMS Deposit? • 90.5% equity interest via Sino-foreign JV Company • 100% of dividends for first 15 years, 95.25% for second 15 years and 90.5% until end of 50 year term • 50 year operating term • Potential for becoming the next VMS deposit • Initial drill program of 5,000 metr
Slide 16: Regent’s Land Bank
Regent’s Land Bank REGENT JV’s LAND HOLDINGS ARE: Location / Name Licence Type Regent Effective Ownership (%) Area Km2 Dapinghzhang JV Exploration 40 16.22 Exploration 40 31.25 Exploration 40 36.02 Exploration 40 7.532 Exploration 40 3.84 Mining 40 2.751 Sub-total 97.613 Yinzishan JV Exploration 90.
Slide 17: Positive Outlook Prevails on Copper and Zinc
Positive Outlook Prevails on Copper and Zinc COPPER ZINC DEMAND DEMAND China biggest driver - consumption accelerating China driven – experiencing strong demand European demand remains solid for Zinc Concentrate in China US not as bad as initially thought World demand strong Global demand above cons
Slide 18: Regent – Action Oriented and Value Driven
Regent – Action Oriented and Value Driven Regent has grown its: • Resources at Dapingzhang Mine • Cashflow, earnings and balance sheet • Organisation with quality people • Shareholder value Regent will continue its growth through: • Expanding Dapingzhang Mine operations (increasing production and vo
Slide 19: Dapingzhang JV Company – 2007 Financial Year Results
Dapingzhang JV Company – 2007 Financial Year Results • Net Profit of US$10.43M • Shareholders equity of US$63.20M • Cash balance of US$3.48M • No hedging of any commodity or currency • Ore production of 22,541 tonnes • 4,125 tonnes of contained Copper in Concentrate sold • Cash cost US$0.183/lb, inc
Slide 20: Regent – 2007 Financial Year Results
Regent – 2007 Financial Year Results • Net Profit of US$0.58M • EPS of US$0.0004 per share • Shareholders equity of US$20.09M, 53% increase from March 2006 • Net finance costs of US$2.61M • Cash balance of US$3.94M at 31 March 2007
Slide 21: Regent’s JV Shareholding Structure
Regent’s JV Shareholding Structure
Slide 22: Disclaimer
Disclaimer The information contained in this presentation has been prepared using the information available to Regent Pacific Group Limited (“Regent”) at the time of preparation and may not include all relevant information regarding Regent or Yunnan Simao Shanshui Copper Company Limited (“Yunnan Sim
Slide 23: Disclaimer
Disclaimer These materials are highly confidential, are being given solely for your information and for your use and may not be copied, reproduced or redistributed to any other person in any manner. Accordingly, you agree to keep the contents of this presentation and these materials strictly confide