Westgold Resources Ltd · ASX:WGX
Westgold Resources — Merger or Acquisition (September 2012)
31 slides from Westgold Resources's merger presentation, Sep 6, 2012
Slide 1: Westgold and Metals X: Creation of a Diversified Mining House
Westgold and Metals X: Creation of a Diversified Mining House, Well Funded to Pursue Growth 6 September 2012
Slide 2: Transaction Highlights
TRANSACTION HIGHLIGHTS #1 Creation of a larger, diversified mining house with exposure to gold, tin, nickel and copper Portfolio including one producing and three development assets, providing immediate cash flow as well #2 as an enhanced growth profile The Independent Expert, BDO Corporate Finance,
Slide 3: Snapshot of Merged Group
SNAPSHOT OF MERGED GROUP Diversified portfolio with exposure to gold, tin and nickel and strategic global investments. +A$34.6m Liquid Investments 15% An Entry Into Mongolia Au 25.0% An Entry Into Madagascar Au, Al 2.8% Low Cost, High Grade Ni, Au, Ag, Zn 5.2% Murchison Au Project Au, V, Li 3.9MOz G
Slide 4: Transaction Summary
TRANSACTION SUMMARY Structure • Merger by Scheme of Arrangement • Subject to customary Westgold Shareholder and Court approvals • Merged group to retain Metals X company name and ASX ticker and listing • Metals X does not vote Consideration • 11 Metals X shares for every 10 Westgold shares • 11 Meta
Slide 5: Independent Experts Conclusion
INDEPENDENT EXPERTS CONCLUSION “Fair and reasonable and in the best interests of shareholders” – Independent Expert, BDO Corporate Finance “In our opinion, the position of WGR shareholders if the Share Scheme is approved is more advantageous than the position if the Share Scheme is not approved.” –
Slide 6: Valuation Scorecard
VALUATION SCORECARD Metrics Metals X Westgold Resources Pro Forma Merged Entity Ordinary Shares 1,316.6M 417.1M 1,651.8M Mineral Asset Value* $420.3M $142.9M $563.2M Cash and Working Capital $61.6M $3.3M $60.8 Listed Investments $50.0 - $34.2M** Total Asset Value $531.9M $146.2M $658.2M Cents Per Sh
Slide 7: Well Funded to Pursue Growth
WELL FUNDED TO PURSUE GROWTH Strong pro forma balance sheet: +A$95m cash, working capital and listed investments Lowered risk of dilutive equity raising for Westgold Potential for the merged group to renegotiate more favourable terms on any debt funding options Capable of financing continued
Slide 8: Growth Project Pipeline
GROWTH PROJECT PIPELINE Merged Group will be: • Australia’s largest tin producer holding the highest grade and largest resource • A rapidly advancing gold producer targeting 120-180KOz per annum • An emerging nickel major with the globally significant Wingellina Project EXPLORATION DEVELOPMENT PRODU
Slide 9: Australia's Largest Tin Producer
AUSTRALIA’S LARGEST TIN PRODUCER Renison (50%) Renison Expansion (50%) Resources 9.69Mt @ 1.58% Sn 20Mt @ 0.45% Sn; 0.21% Cu 7.16Mt @ 0.36% Cu Target Annual Production 7-8Kt Sn 5Kt Sn 1-2Kt Cu 2Kt Cu Renison Project Australia’s only producing tin mine, located on the west coast of Tasmania Sup
Slide 10: Australia's Largest Tin Producer
AUSTRALIA’S LARGEST TIN PRODUCER The Renison and Renison Expansion Projects have the highest grade and some of the largest resources in Australia with circa A$300M of established processing and mine infrastructure 1.75 Renison 1.50 Outback 1.25 Collingwood Stellar Grade (%) 1.00 0.75 Consolidated 0.
Slide 11: Central Murchison Gold Project (CMGP)
CENTRAL MURCHISON GOLD PROJECT (CMGP) CMGP Resources 2.7Moz Au Target Production (per annum) 60-120,000oz Au Integrated underground/open pit mining operation with a plan for a centralised processing facility Holds tenements which have historically produced +5Moz of gold Current combined Total
Slide 12: Central Murchison Gold Project (CMGP)
CENTRAL MURCHISON GOLD PROJECT (CMGP) Jewels of the Murchison- 1.6Moz historic production at 17g/t Au 12
Slide 13: Wingellina Project
WINGELLINA PROJECT Wingellina Resources 183Mt @ 1% Ni; 0.08% Co Target Production (per annum) 40Kt Ni; 3Kt Co One of the largest undeveloped nickel projects in the world MOU With Samsung C&T, MLX 30% free carried to commercial production Hosts 183Mt of ore at 1% nickel and 0.08% cobalt; +90% c
Slide 14: Wingellina Project
WINGELLINA PROJECT Wingellina (Tropical Limonite) Typical Australian Laterites Strip Ratio 1:1 (0.5:1 for 20 years) 3-5:1 Ore Thickness (avg) 80 m 5-15 m Tonnes/km2 50-60 Mt 5-15 Mt Iron/MgO High/Low Low/Moderate-High Acid Consumption < 300 Kg/t (~20% of Op Cost) > 500 Kg/t (Significant % of Op Cost
Slide 15: Rover Project
ROVER PROJECT Rover 1 Resources 1.2Moz AuEq Target Production (per annum) 60,000oz AuEq New undercover south-western extension (14,000km2) to the prolific Tennant Creek Goldfield which has produced +5.0Moz of gold to date and represents one of Australia’s top five goldfields. Key asset is Rover
Slide 16: Strategic Investments
STRATEGIC INVESTMENTS The Merged Group will have exposure to a number of exploration and development projects which allows for both the flexibility to fund and finance the exploration 15% and development activities in a dedicated manner without the competition for capital from operations. 25% 2.8% 5
Slide 17: Catalysts for Re-rating
CATALYSTS FOR RE-RATING Raised profile (increased scale, market capitalisation, access to capital markets, research coverage, enhanced liquidity and removes the perceived funding risks associated with development of CMGP and Rover 1 The creation of a larger diversified mining house with producing
Slide 18: Indicative Timetable
INDICATIVE TIMETABLE 31 August 2012 • Despatch of Scheme Booklet to Westgold shareholders 3 October 2012 • Scheme meeting to consider and approve the Scheme 4 October 2012 • Second Court hearing to approve Scheme 17 October 2012 • Implementation Date • Termination of official ASX quotation of WGR (o
Slide 19: Westgold Resources and Metals X: Creation of a Diversified Mining House
Westgold Resources and Metals X: Creation of a Diversified Mining House, Well Funded to Pursue Growth 6 September 2012
Slide 20: Appendix: WGR & MLX Reserves and Resources Statement
APPENDIX: WGR & MLX RESERVES AND RESOURCES STATEMENT 20
Slide 21: Reserves – Central Murchison Gold Project
Reserves – Central Murchison Gold Project Probable Total Ore Body Tonnes Grade Ounces Tonnes Grade Ounces Underground Big Bell 2,895,000 4.20 391,000 2,895,000 4.20 391,000 Great Fingall^/Golden Crown 878,000 8.00 224,000 878,000 8.00 224,000 Sub-total 3,772,000 5.08 616,000 3,772,000 5.08 616,000 O
Slide 22: Resources – Central Murchison Gold Project
Resources – Central Murchison Gold Project Measured Indicated Inferred Total Resource Mining Centre/ Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au Deposit g/t Oz g/t Oz g/t Oz g/t Oz Big Bell 1600N / Shocker - - - 2,870,000 1.31 121,000 3,503,000 1.26 141,000 6,373,000 1.28 263,000 1600N / Sho
Slide 23: Resources – Rover Gold and Copper Project
Resources – Rover 1 Gold and Copper Project Table 1: Rover 1 – Total Mineral Resource Estimate (using 2.5 g/t Au cut-off) Rounding errors may occur Classification Tonnes AuEq g/t* Au g/t Ag g/t Bi % Co % Cu % AuEq Oz* Indicated 2,740,771 6.59 2.42 2.33 0.18 0.04 1.42 580,696 Inferred 4,073,374 4.89
Slide 24: Resources – Rover Gold and Copper Project
Resources – Rover 1 Gold and Copper Project Table 2a: Rover 1 – High Grade Gold Zones (using 2.5 g/t Au cut-off) Rounding errors may occur Classification Tonnes AuEq g/t^ Au g/t Cu % AuEq Oz^ Indicated 607,618 11.86 9.26 1.47 231,689 Inferred 717,118 5.54 5.1 0.25 127,729 Total 1,324,736 8.44 7.01 0
Slide 25: Resources – Explorer 108 Lead Zinc Silver Project
Resources – Explorer 108 Lead Zinc Silver Project Explorer 108 Identified Mineral Resource (using 2.5% Pb+Zn and 5% Pb+Zn cut-off) Total Inferred Resource Statement, at 2.5% Pb+Zn% Class Tonnes Pb+Zn Pb Zn Au Ag Cu Pb Metal Zn Metal Au Ag T % % % g/t g/t % T T Oz Oz Inferred 8,733,000 5.6 2 3.7 0.3
Slide 26: Mineral Resources – MLX-Tin Division
Mineral Resources – MLX-Tin Division TIN COPPER JORC CATEGORY Cut-off Sn Grade Tonnes (Kt) Grade (%Sn) Tonnes (Kt) Cu Metal (t) %Sn Metal (t) (%Cu) Measured Renison Bell 0.80% 972 2.00 19,400 778 0.35 2,700 Mt Bischoff 0.50% - - - - - - Rentails 0.00% 19,999 0.45 89,400 19,999 0.21 42,400 Collingwoo
Slide 27: Mining Reserves – MLX-Tin Division
Mining Reserves– MLX-Tin Division TIN COPPER PROJECT Cut-off Tonnes Grade Sn Tonnes Grade Cu % (Kt) (%Sn) Metal (t) (Kt) (%Cu) Metal (t) Proved Reserves Renison Bell 0.80% 372 1.44 5,300 372 0.32 1,200 Mt Bischoff 0.50% - - - - - = Rentails 0.00% - - - Collingwood 0.70% - - - Sub-total 372 1.44 5,30
Slide 28: Mineral Resources – MLX-Nickel Division
Mineral Resources – MLX-Nickel Division Wingellina Cut Off (%Ni) Tonnes (Mt) Ni (%) Co (%) Fe203(%) Measured 0.5 68.8 1.00 0.078 48.7 Indicated 0.5 98.6 0.97 0.075 46.4 Inferred 0.5 15.7 0.97 0.069 42.7 Total I.M.R 0.5 183.2 0.98 0.076 47.0 Claude Hills* Cut-off (% Ni) Tonnes (Mt) Ni (%) Co (%) Fe20
Slide 29: Mining Reserves – MLX-Nickel Division
Mining Reserves– MLX- Nickel Division Mining Reserve Estimate as at 30 June 2012 Class Tonnes (Kt) Ni (%) Co (%) Fe203(%) Proven - - - - Probable 167,470 0.98 0.08 47.34 Total 167,470 0.98 0.08 47.34 29
Slide 30: Westgold Resources Disclaimer
WESTGOLD RESOURCES DISCLAIMER Disclaimer This presentation has been prepared by Westgold Resources Limited (“Westgold” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contains
Slide 31: Metals X Disclaimer
METALS X DISCLAIMER General Disclaimer This presentation has been prepared by Metals X Limited (“Metals X” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation contains forecasts an
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