Resolute Mining Limited · ASX:RSG
Resolute Mining — BMO Global Metals & Mining Conference 2014
24 slides from Resolute Mining's conference presentation, Feb 26, 2014
Slide 1: ASX Announcement: Chief Executive Officer's Presentation
ASX ANNOUNCEMENT For personal use only 26 February 2014 01 CHIEF EXECUTIVE OFFICER’S PRESENTATION Attached is a copy of the Chief Executive Officer’s presentation to be given at the BMO Global Metals & Mining Conference. GREG FITZGERALD Company Secretary
Slide 2: BMO Global Metals & Mining Conference
For personal use only BMO Global Metals & Mining Conference Hollywood, Florida Chief Executive Officer – Peter Sullivan 26 February 2014
Slide 3: A sustainable gold producer
A sustainable gold producer Long term operator in Africa and Australia For personal use only • One of the largest gold producers listed on the ASX. • Long term operator in Africa and Australia. • FY2014 guidance of 345,000oz at A$890/oz. • 100% unhedged, strong leverage to gold price. • Cash generat
Slide 4: Corporate Overview
Corporate Overview About Resolute Mining Limited For personal use only Key information ASX Code RSG Shares 641M Last Share Price1 $0.63 Market Cap1 A$403M Daily Turnover2 5.1M shares Cash/Bullion/Liq Inv3 A$50M Debt3 A$116M Hedging NIL Key Shareholders ICM 35.3% Van Eck 5.0% 1. At 20 February 2014 2
Slide 5: Australian Gold Company
Australian Gold Company Focus on Africa, +6.5Moz gold produced since 1989 For personal use only • Long term gold producer • Experienced project operator and developer 500,000 Operated 9 mines across Australia and Africa, including 7 mines developed and closed 450,000 400,000 350,000 300,000 ounces 2
Slide 6: December Half Year Results
December Half Year Results Strong performance through gold cycle For personal use only Highlights • Revenue from gold sales $286M at average gold price received of A$1,406/oz • Reported NPAT of $23M • Solid first half gold production to 31 December of 182,405oz • Cash Cost per ounce of gold produced
Slide 7: FY2014 Focus on cash
FY2014 Focus on cash For personal use only • Operating versatility and cash generating for wide range of gold price movements. • Modified mine plan for Syama with reduced capital expenditure. • Ongoing drive to reduce operating cost base. • Senior management pay-freeze implemented. • Ongoing commitm
Slide 8: Growth strategy in 2014
Growth strategy in 2014 Opportunities For personal use only Syama expansion Mali • Capital expenditure savings | Expansion project progressed • Total forecast capital spend reduced to US$235M • 70,000 oz/pa production lift to ~270,000oz/pa from 2015 • Deep infill diamond drilling underway to upgrade
Slide 9: Syama: A profitable, long life project
Syama A profitable, long life project For personal use only Key statistics RSG ownership 80% Commissioned 2009 Production (1H FY14) 72,529 oz Production grade 3.24 g/t Cash costs (1H FY14) A$1,082/oz Mine life (30 Jun 13) 10+ years Total reserves 2.4 Moz Reserve grade 2.6 g/t Total resources 4.7 Moz
Slide 10: Resetting Syama
Resetting Syama Expansion remains robust at current gold price For personal use only • Major expansion of open pit sulphides Syama Gold Production – Updated two stage plan delivers improved economics 250,000 – Sulphide crushing circuit to remain in place 200,000 – Current plant with some upgrade mai
Slide 11: Ravenswood: Stable, long-term production
Ravenswood Stable, long-term production For personal use only Key statistics RSG ownership 100% Commissioned 2004 Production (1H FY14) 72,680 oz Production grade 2.9 g/t Cash costs (1H FY14) A$811/oz Mine life (30 Jun 13) 10+ years Total reserves 1.5 Moz Reserve grade 0.9 g/t Total resources 1.7 Moz
Slide 12: Mt Wright Delivering
Mt Wright Delivering Extended mine life For personal use only • Ore production consistent 1.4Mtpa from sub-level shrinkage. • Grade dilution well within expectation. • 46% increase to Mt Wright ore reserve1. – Mining to extend below 600RL base. – Additional 1.7Mt of ore, 137,000oz gold extending min
Slide 13: Re-opening of Sarsfield
Re-opening of Sarsfield Under assessment For personal use only § Potential to extend Ravenswood life and increase production by reopening Sarsfield pit: ‒ Reserve/Resources of 2.5Moz. ‒ Additional 110kozpa output. ‒ Mine life extended by 9 years. § Feasibility Study estimated capital cost of $123M a
Slide 14: Tanzania: Potential to leverage experience
Tanzania Potential to leverage experience For personal use only • Nyakafuru located 120 kilometres NW of now completed Golden Pride mine. • Recently announced 388,000oz Reserve and 900,000oz in Resources. • RC/diamond drilling along Kanegele shear continues to deliver very good results over a 5 kilo
Slide 15: Golden Pride: End of a long mine life
Golden Pride End of a long mine life For personal use only • Closure of Golden Pride end of 2013 after 15 Key statistics years in production. RSG ownership 100% • Rehabilitation well advanced as progressively Commissioned 1998 undertaken since commencement. • Cost provision of ~$10M. Production (1H
Slide 16: Bibiani: Advanced Ghana gold project
Bibiani Advanced Ghana gold project For personal use only • 2.8Moz Mineral Resources, 3Mtpa CIL processing facility and +4Moz of gold produced to date. • Resolute acquired ~20% stake in Noble Mineral Resources and backed an A$85M financing package in Nov 2012. • Noble entered Voluntary Administratio
Slide 17: High Value Exploration Portfolio
High Value Exploration Portfolio Prospective upside For personal use only • Highly prospective, underexplored tenure spread across Mali, Cote d’Ivoire, Tanzania and Australia • Strong balance sheet enables renewed exploration focus to unlock value and add exploration premium • Exploration budget for
Slide 18: Reserves and Resources update June 2013
Reserves and Resources update 30 June 2013 For personal use only • Total Reserves and Resources á 13%: – Reflecting modified Syama mine plan and drilling success across Queensland, Total Mineral Resource and Ore Reserve Mali and Tanzania. 14 • Reserves at 4.3Moz of gold: 12 – Impacted by removal of
Slide 19: Favourable Valuation Metrics
Favourable Valuation Metrics For personal use only Source: BMO Capital Markets, 18 February 2014 18
Slide 20: Flexibility for future growth
Flexibility for future growth A sustainable gold producer For personal use only § One of the largest gold producers listed on the ASX § Long term operator in Africa and Australia § FY2014 guidance of 345,000oz at A$890/oz § 100% unhedged – strong leverage to gold price § Cash generating over wide ra
Slide 21: Thank you / Disclaimer
Thank you For personal use only DISCLAIMER • This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute Mining. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions m
Slide 22: JORC Reserves
JORC Reserves RESOLUTE GROUP RESERVES and RESOURCES For personal use only Reserves and Resources comply with the Australian code for reporting of Mineral Resources and Reserves (The JORC Code 2004) Reserves and Resources Statement as at end of June 2013 Gold Reserves Project Resolute Group Resolute
Slide 23: JORC Measured & Indicated Resources
JORC Measured & Indicated Resources For personal use only Gold Resources 1 Project Resolute Group Resolute Group (includes stockpiles) Project Gold grade Contained Share Share Tonnes (g/t) Ounces Gold % ounces RESOURCES 1 Resources (Measured) Australia Sarsfield (insitu) 2 16,185,000 0.8 393,000 100
Slide 24: JORC Inferred Resources
JORC Inferred Resources Gold Resources 1 For personal use only Project Resolute Group Resolute Group (includes stockpiles) Project Gold grade Contained Share Share Tonnes (g/t) Ounces Gold % ounces Resources (Inferred) Australia Mt Wright (insitu)3 1,090,000 3.1 108,000 100% 108,000 Sarsfield (insit
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