Resolute Mining Limited · ASX:RSG
Resolute Mining — Merger or Acquisition (July 2019)
41 slides from Resolute Mining's merger presentation, Jul 31, 2019
Slide 1: Resolute's Acquisition of Toro Gold
For personal use only Resolute’sAcquisition of Toro Gold Value Accretive, High Quality, Low-Cost Gold Production 31 July 2019
Slide 2: Cautionary Statement
Cautionary Statement For personal use only This presentation contains information about Resolute Mining Limited (Resolute or the Company) and its activities that is current as at the date of this presentation unless otherwise stated. The information in this presentation remains subject to change wit
Slide 3: Resolute to Acquire Toro Gold
For personal use only RESOLUTE TO ACQUIRE TORO GOLD Private Low-Cost Producing Gold Mine in Mining-Friendly Senegal 2018 Production of 157koz at AISC of US$655/oz Well Established, High-Margin 1Moz Open Pit Mine 7 Year Mine Life with Average Annual Production of 140koz Extensive Exploration Potentia
Slide 4: Resolute's Acquisition of Toro Gold
Resolute’s Acquisition of Toro Gold Value Accretive, High Quality, Low-Cost Gold Production from the Mako Gold Mine For personal use only • Acquisition of 100% of the shares of Toro Gold Limited (Guernsey) for US$274 million comprising: − US$130 million of cash; and Transaction − 142.5 million Resol
Slide 5: Transaction Highlights
Transaction Highlights Toro Gold enhances Resolute’s portfolio and delivers on our ambition For personal use only to be a multi-mine, low-cost, African-focused gold producer Cash Flow and Value • Mako is a high quality, low-cost producing asset with attractive scale Accretive • The acquisition of To
Slide 6: Mine More Gold. Create More Value.
For personal use only Mine More Gold. Create More Value. 5
Slide 7: Introducing the Mako Gold Mine
Introducing the Mako Gold Mine Low cost, high margin production from a stable, mining friendly jurisdiction For personal use only Overview Location Location • Senegal Ownership • 90%; Senegal Government 10% (free carried) Mine Type • Open Pit Mineral Resources • 20.4Mt at 1.89g/t Au for 1.244Moz Ore
Slide 8: Mako Gold Mine – Mining and Processing
Mako Gold Mine – Mining and Processing Simple open pit mining with high gold recoveries through CIL plant For personal use only Mining Processing • Conventional drill and blast, load and haul operation • 2.3Mtpa processing plant • Mining services provided by proven contractor, African Mining Service
Slide 9: Mako Gold Mine – Exploration
Mako Gold Mine – Exploration Located on the prolific Kenieba Window with exciting near-mine exploration opportunities For personal use only Petowal (Mako Site) Tenements • 36 core drill holes planned for approximately 7,000m for 2019 • Infill and deeper drilling under the pit to better understand po
Slide 10: Mako Gold Mine – Jurisdiction
Mako Gold Mine – Jurisdiction Senegal: a stable, mining friendly jurisdiction with excellent infrastructure For personal use only Overview • Senegal enjoys a reputation for political stability and has a strong democratic tradition • Senegal is an excellent investment jurisdiction and politically sta
Slide 11: Toro Gold's African Exploration Portfolio
Toro Gold’s African Exploration Portfolio Resolute’s exploration to extend further in Cote d’Ivoire and into Guinea For personal use only Cote d’Ivoire Guinea • 6 exploration permits and a further 2 permits • 3 Greenfields exploration permits in Siguiri under application Prefecture • Joint venture w
Slide 12: Resolute's Production and Margin Growth
Resolute’s Production and Margin Growth Increased Production to Drive Higher Revenues and Larger Dividends For personal use only Attractive Scale Enhanced Margins Increased Production Lower AISC FY2019 (Annualised to 31 Dec) FY2019 (Annualised to 31 Dec) Resolute’s Production Increased to Resolute S
Slide 13: Diversification of African Production Base
Diversification of African Production Base Expansion into Senegal, a stable, mining friendly jurisdiction For personal use only Mako Senegal Syama Mali Ravenswood Australia Stage Production Stage Production Stage Production Type Open Pit Type Underground / Open Pit Type Underground / Open Pit Mine L
Slide 14: Expansive Growth Platform
Expansive Growth Platform For personal use only Active Significant Long Term Regional Development Exploration Optionality Consolidation Opportunities Potential • Ravenswood Expansion • Stunning exploration • Directly owned highly • Diversified African Project: targeting results from Tabakoroni prosp
Slide 15: Resolute Pro-Forma Summary
Resolute Pro-Forma Summary use only Toro Gold Pro-Forma Exchange ASX / LSE Private ASX / LSE Share Price (A$/share) 1.78 -- 1.78 Capitalisation Shares Outstanding (m) 758 110(1) 902(2) For personal Market Capitalisation (A$m) 1,346 -- 1,601(3) Cash, Bullion and Investments (A$m) 56 133(4) 189 Debt (
Slide 16: Unique and Highly Attractive Investment Proposition
Unique and Highly Attractive Investment Proposition For personal use only Resolute is a dividend paying gold producer with multiple long life, high margin assets and a strong platform for growth and consolidation within Africa Proven Operator Strong Exploration Leader in Mining Long Life, Low Cost,
Slide 17: Resolute Portfolio
Resolute Portfolio For personal use only Syama Mako Ravenswood Bibiani Syama Complex comprises the Syama Mako is a high quality, low-cost At Ravenswood, Resolute is taking steps Bibiani is a potential long life, high Underground Mine, a world class, fully producing asset with attractive scale, to tr
Slide 18: Syama
Syama For personal use only Mali PRODUCTION TARGET 300 kozpa LOM AISC US$ 746 /oz RESOURCES 8.2 Moz RESERVES 3.4 Moz MINE LIFE 14 Years 17
Slide 19: Syama Underground Mine
Syama Underground Mine The world’s first fully automated For personal use only underground gold mine Commenced sublevel caving on time and on budget in December 2018 Commercial production rates achieved in June 2019
Slide 20: Syama Underground Autonomous Mining
Syama Underground For personal use only Autonomous Drilling The most advanced Autonomous Truck Navigation mining automation system Autonomous Loading & Dumping in the world Mine Digitalisation Autonomous Haulage Central Monitoring & Visualisation 19
Slide 21: Syama System Overview
Syama System Overview For personal use only Major Components PHASE 1: MINE DIGITALISATION Phase 1 capability delivers the completed control room Mine-wide with connection to the underground wireless network and Wireless the ability to schedule, control and monitor MANUAL Network underground activiti
Slide 22: Syama System Overview: Phase 1 Mine Digitalisation
Syama System Overview For personal use only Phase 1: Mine Digitalisation Control Room + Network + OptiMine = Efficiency The 2 Declines and the 1105 and 1130 production levels Benefits of the visualisation system include: will be connected to the visualisation system in the • Visualisation of mine an
Slide 23: Phase 2: Autonomous Haulage and Production
Syama System Overview For personal use only Phase 2: Autonomous Haulage and Production Automated Haulage Loop – The Main Game • The Automated Haulage Loop is the “Main Game” in terms of the Syama Underground Mine’s delivered benefit from innovation • The Automated Haulage loop enables Resolute to ha
Slide 24: Automated Haulage Loop – The Main Game
Syama System Overview For personal use only Phase 2: Autonomous Haulage and Production Automated Haulage Loop – The Main Game The Automated Haulage Loop consists of three sections: 3. Boxcut & ROM 1. Haulage Level: this is where the autonomous trucks are loaded underground by the remotely operated 2
Slide 25: The Impact of Automation at Syama
The Impact of Automation at Syama For personal use only Productivity Continuous Less Operation Downtime Extra Productive Consistent High-speed Output Production Hours Optimised Upgradeable To Less Operational Tracking & Headings Reporting Multi-machine Control 24
Slide 26: Technology Driven Productivity Gains
The Impact of Automation at Syama For personal use only Technology Driven Productivity Gains AUTOMATED MINE 15% - 20% Gain • Remotely Operated Machinery PRODUCTIVITY – TONNES / METRES • Autonomous Drilling • Autonomous Loading • Autonomous Haulage DIGITAL MINE 10% - 15% Gain • Tracking and Visualisa
Slide 27: Economics, Safety and People
The Impact of Automation at Syama For personal use only Economics, Safety and People LOM AISC Reduced to Mine Life Extended to US$ 746 /oz 2032 Low Reduced Damage Smaller Fleet $$ $ Upfront Capex Upskilling Local Workforce Improved Operator Comfort 26
Slide 28: Active, Multi-Rig Exploration Program
Active, Multi-Rig Exploration Program For personal use only Resolute controls 80km strike length of Syama greenstone belt 27
Slide 29: Nafolo: A Major Gold Discovery at Syama
Nafolo: A Major Gold Discovery at Syama For personal use only Extension potential for the existing Syama Underground Mine Nafolo Snapshot • Untested to the south and at depth • All drillholes to date have intersected gold mineralisation • Nafolo mineralisation can potentially be accessed from existi
Slide 30: Tabakoroni Exploration: High Grade Intersections
Tabakoroni Exploration: High Grade Intersections For personal use only Potential standalone underground operation supports mine life extension Mineral Resource of 1.03Moz at 5.1g/t Au 29
Slide 31: Mako
Mako For personal use only Senegal PRODUCTION LOM AVERAGE 140 kozpa LOM AISC US$ 780 /oz RESOURCES 1.2 Moz RESERVES 0.9 Moz MINE LIFE 7 Years 30
Slide 32: Ravenswood
Ravenswood For personal use only Australia PRODUCTION TARGET ~200 koz pa LOM AISC 823 US$ /oz RESOURCES 5.9 Moz RESERVES 2.7 Moz MINE LIFE ~15 Yrs 31
Slide 33: Bibiani
Bibiani For personal use only Ghana TARGET PRODUCTION 100 kozpa LOM AISC US$ 764 /oz RESOURCES 2.5 Moz TARGET MINE LIFE 10 Years 32
Slide 34: Strategic Investments in Africa
Strategic Investments in Africa For personal use only Objective Establish a portfolio of investments in emerging 26% stake 16% stake gold explorers to expand our project pipeline and provide a source of medium term potential growth opportunities 11% stake 27% stake Focus Equity investments in Africa
Slide 35: Health & Safety
Health & Safety For personal use only Committed • To working safely, all of the time • To taking pride, in everything we do • To improving the way we work Accountable • To the people we work with • For the quality of our work • To the expectation of our business Responsible • To our families • To th
Slide 36: The Resolute Foundation
For personal use only The Resolute Foundation will be the vehicle through which Resolute will deliver future sustainable development initiatives at scale on a global basis. The Resolute Foundation will leverage the strengths, skills and capacities of the Company, our partners, host governments and l
Slide 37: Leadership: Board of Directors
Leadership For personal use only Board of Directors Martin Botha John Welborn Yasmin Broughton Non-Executive Chairman Managing Director & CEO Non-Executive Director BSc (Eng) BCom, FCA, FAIM, MAICD, BComm, PG Law, GAICD Currently serves as Non-Executive MAusIMM, SAFin, JP Corporate lawyer; currently
Slide 38: Leadership: Management
Leadership For personal use only Management John Welborn Lee-Anne de Bruin David Kelly Managing Director & CEO Chief Financial Officer Chief Operating Officer (Acting) BCom, FCA, FAIM, MAICD, BCom, BAcc (Hons), CA BSc (Hons) MAusIMM, SAFin, JP A chartered accountant with over 18 years A geologist wi
Slide 39: Corporate Summary
Corporate Summary (ASX:RSG | LSE:RSG) For personal use only Capitalisation A$ £ US$ Price Performance and Trading on ASX Share Price $1.78 £0.99 $1.22 YTD Daily Trading Averages : Volume: 8.2m / Value: A$9.7m Shares on Issue 758m Market Capitalisation $1,346m £752m $925m Cash, Bullion, Investments $
Slide 40: Ambition: Multi-Mine, Low Cost, African-Focused Gold Producer
For personal use only Ambition: Multi-Mine, Low Cost, African- Focused Gold Producer 39
Slide 41: Contacts
For personal use only Contacts Follow Us John Welborn | Managing Director & CEO Jeremy Meynert | General Manager – BD & IR EMAIL | contact@rml.com.au PHONE | +61 8 9261 6100 WEB | www.rml.com.au