Hillgrove Resources Limited · ASX:HGO

Hillgrove Resources — 12th SA Exploration and Mining Conference (December 2015)

18 slides from Hillgrove Resources's conference presentation, Dec 11, 2015

  1. Slide 1: A Proud South Australian Company

    For personal use only A PROUD SOUTH AUSTRALIAN COMPANY LACHLAN WALLACE IIIII GENERAL MANAGER 11 DECEMBER 2015

  2. Slide 2: South Australian Government Partnership

    For personal use only SOUTH AUSTRALIAN GOVERNMENT PARTNERSHIP

  3. Slide 3: South Australian Government Partnership

    SOUTH AUSTRALIAN GOVERNMENT PARTNERSHIP  SA Government Copper Strategy to be For personal use only commended Proposed pipeline route  Collaborative approach - opportunities and challenges  Corporate office and functions moved from NSW to SA  Water pipeline - best practice community engagement 

  4. Slide 4: Copper Mine Development Success Factors

    For personal use only COPPER MINE DEVELOPMENT SUCCESS FACTORS Find, Assess, Develop, Operate, Community & Closure

  5. Slide 5: Find - Exploration

    FIND - EXPLORATION For personal use only  28 metres @ 0.61% Cu, 0.14g/t Au and 2.6g/t Ag within a broader mineralised zone of 39 metres @ 0.47% Cu, 0.11g/t Au and 2.1g/t Ag  Included within the 28 metre intersection are:  a higher grade zone of 10 metres @ 0.88% Cu, 0.18g/t Au and 3.2 g/t Ag; and

  6. Slide 6: Find - Indonesia

    FIND - INDONESIA High quality assets with significant potential but significant For personal use only expenditure demands • Data room has been made more readily available • Leading to increased interest • Flexible with potential opportunities to move projects forward 6

  7. Slide 7: Assess - HGO Share Price Performance

    ASSESS - HGO SHARE PRICE PERFORMANCE ASX Small Resources 3 Year Performance For personal use only 150.0% Generally companies taken over in 2013/14 or in the gold sector 100.0% 26 Companies have decreased > 90% 50.0% Hillgrove Resources -78% Peer Median -76% 0.0% (50.0%) (100.0%) 7

  8. Slide 8: Develop - Sticking to the Basics

    DEVELOP - STICKING TO THE BASICS Low price outlook constrains supply: For personal use only  knock out upper end of the cost curve, and  stops or defers all but the best projects Foundations for prosperity in next phase for those that can:  Find and/or extend projects without capital infrastructu

  9. Slide 9: Operate - Hillgrove Resources Well Positioned

    OPERATE – HILLGROVE RESOURCES WELL POSITIONED Hillgrove Resources: For personal use only  Progressing well with mining cutback  Prudent use of cash through cutback before moving into life extension and then cash generation  Significant cost savings onsite expanded to corporate  50% reduction wit

  10. Slide 10: Cost Control

    For personal use only 10 COST CONTROL

  11. Slide 11: Operate - Throughput & Recovery

    OPERATE - THROUGHPUT & RECOVERY For personal use only  4 successful CPS campaigns to October for 1,808t copper  Increased throughput despite CPS, averaging 4.45Mtpa rates in Q3.  Recovery impacted by CPS and lower feed grade  Excellent run time through the plant 11

  12. Slide 12: Operate - Corporate Savings

    OPERATE - CORPORATE SAVINGS Corporate savings: For personal use only  Office location and associated premium  Reduction in number of roles  Significant reduction in travel  Salary reduction leadership  CEO & MD - $75k on sign up and $75k from 1/12/15  Board – 20% reduction from 1/12/15  CFO/C

  13. Slide 13: Operate - Hedge Book Valuation > $22M

    OPERATE - HEDGE BOOK VALUATION > $22M For personal use only 13

  14. Slide 14: Community and Closure - Progressive Rehabilitation

    COMMUNITY AND CLOSURE – PROGRESSIVE REHABILITATION For personal use only 14

  15. Slide 15: Community and Closure - Master Planning

    COMMUNITY AND CLOSURE – MASTER PLANNING Master Planning For personal use only  Planning for closure  Conceptual artwork by Garry Duncan to inspire discussion:  Tourism  Education  Recreation  Restoring natural habitat  Industrial hub 15

  16. Slide 16: Cash Flow

    CASH FLOW For personal use only $160,000,000 $140,000,000 $120,000,000 CONSOLIDATE $100,000,000 SURVIVE THRIVE Cash Balance $80,000,000 $60,000,000 $40,000,000 $20,000,000 - Time 16

  17. Slide 17: Statement

    STATEMENT No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this docum

  18. Slide 18: Competent Person Statements

    COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE For personal use only JORC 2012 Tonnage Cu Au Ag Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 2.63 0.88 0.10 1.95 the Australian Securities

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