Resolute Mining Limited · ASX:RSG
Resolute Mining — Investor Presentation (July 2013)
23 slides from Resolute Mining's investor presentation, Jul 1, 2013
Slide 1: Chief Executive Officer's Presentation
ASX Announcement For personal use only 1 July 2013 01 CHIEF EXECUTIVE OFFICER’S PRESENTATION Attached is a copy of the Chief Executive Officer’s presentation to be given to investors. GREG FITZGERALD Company Secretary
Slide 2: Corporate Presentation July 2013
For personal use only CORPORATE PRESENTATION JULY 2013
Slide 3: A Proven Gold Producer
For personal use only A PROVEN GOLD PRODUCER One of the largest gold producers listed on ASX Operating assets across Africa and Australia FY2014 guidance of 345,000oz at A$890/oz 100% unhedged – strong leverage to gold price Cash generating over wide gold price range Lightly geared balance sheet pro
Slide 4: Corporate Overview
CORPORATE OVERVIEW Key Information For personal use only ASX Code RSG Shares 641M Last Share Price1 $0.60 Market Cap1 A$388M Daily Turnover2 4.3M shares Cash/Bullion/Inv3 A$177M Debt3 A$69M Hedging NIL Shareholders ICM 32.0% Van Eck 7.4% Vinva IM 5.1% 1. Current at 28 June 2013 2. Average FY2013 3.
Slide 5: FY2013: Consolidating Our Position
FY2013: CONSOLIDATING OUR POSITION FY2013 production of 430,000oz at A$830/oz For personal use only Dividend of $31 million paid to shareholders Syama expansion underway – FY2015 Golden Pride closure – Nyakafuru assessment Sarsfield review showing positive results to date Strategic investment in Nob
Slide 6: Focus on Cash
FOCUS ON CASH Operating versatility and cash generating for wide range of For personal use only adverse gold price movements Review of Syama life of mine plans undertaken Reduced project capex program for FY 2014 in light of prevailing market conditions US$113m deferred from FY2014 Review Syama oxid
Slide 7: Resolute: In a Position of Strength
For personal use only RESOLUTE: IN A POSITION OF STRENGTH A consistent gold Producing gold in FY13 forecast producer since 1989 Africa since 1996/97 430Koz at A$830/oz OZ 500,000 400,000 300,000 200,000 100,000 0 6
Slide 8: Working with Our Community Partners
WORKING WITH OUR COMMUNITY PARTNERS For personal use only 7
Slide 9: Mali Gold Industry
MALI GOLD INDUSTRY • Mali third largest gold producing Country in Africa For personal use only • Other gold mining companies operating in Mali • Resolute operating to conventions negotiated around development time • New Mining Act 2012 – sets out standard convention • Favourable operating & fiscal r
Slide 10: Syama - A Profitable Long Life Project
SYAMA - A PROFITABLE LONG LIFE PROJECT Key Statistics For personal use only RSG Ownership 80% Commissioned 2009 Production (FY13F) 190,000 oz Production Grade 3.5 g/t Cash Costs (FY13F) A$840/oz Mine Life 15+ years Total Reserves 3.6 Moz Reserve Grade 2.8 g/t Total Resources 2.8 Moz Resource Grade 2
Slide 11: Syama Expansion Is Extremely Robust at Current Gold Price
SYAMA EXPANSION IS EXTREMELY ROBUST AT CURRENT GOLD PRICE Major expansion approved June 2012 For personal use only ‒ Expansion of open pit ‒ Establishment of oxide circuit ‒ Infrastructure including grid power connection Captures total reserves of 3.68Moz including 557Koz oxide material Produc
Slide 12: Ravenswood – Stable, Long-Term Production
For personal use only RAVENSWOOD – STABLE, LONG -TERM PRODUCTION Key Statistics RSG Ownership 100% Commissioned 2004 Production (FY13F) 140,000oz Production Grade 2.9 g/t Cash Costs (FY13F ) A$770/oz Current Mine Life 3+ years Total Reserves 1.5 Moz Reserve Grade 0.9 g/t Total Resources 0.9 Moz Reso
Slide 13: Mt Wright Delivering
MT WRIGHT DELIVERING For personal use only • Ore production consistent 1.4mtpa from sub level shrinkage • Grade dilution well within expectation • Decline completed to design depth • Assessment underway for potential to extend mining below 600RL base Drill testing to the 500RL 12
Slide 14: Re-opening of Sarsfield Remains an Option
RE-OPENING OF SARSFIELD REMAINS AN OPTION Potential to extend Ravenswood For personal use only life and increase production by reopening Sarsfield pit ‒ Reserves of 1.1Moz ‒ Additional 110kozpa output ‒ Mine life extended by 9 years Feasibility Study estimated capital cost of $123M and LOM avera
Slide 15: Golden Pride – A Strong Production Record
GOLDEN PRIDE – A STRONG PRODUCTION RECORD Key Statistics For personal use only RSG Ownership 100% Commissioned 1999 Production (FY13F) 100,000 oz Production Grade 1.8 g/t Cash Costs (FY13F) A$880/oz Mine Life 0.5 year Total Reserves 0.1 Moz Reserve Grade 1.8 g/t Total Resources 1.4 Moz Resource Grad
Slide 16: Golden Pride – Rehabilitation
GOLDEN PRIDE – REHABILITATION For personal use only Closure of Golden Pride end of 2013 after 15 years in production Rehabilitation well advanced as progressively undertaken since commencement Cost provision of ~$10m Plant options being considered 15
Slide 17: Potential to Leverage Experience in Tanzania
For personal use only POTENTIAL TO LEVERAGE EXPERIENCE IN TANZANIA Existing 1.1Moz resource located 120km NW of Golden Pride at Nyakafuru Studies underway to evaluate a future development at Nyakafuru – potential to transport GP plant Extensive RC/diamond drilling at Nyakafuru is producing goo
Slide 18: High Value Exploration Portfolio
HIGH VALUE EXPLORATION PORTFOLIO Highly prospective, underexplored tenure For personal use only 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 FY14 US$15M Mult
Slide 19: Noble Mineral Resources Investment
NOBLE MINERAL RESOURCES INVESTMENT Resolute acquired a 19.99%1 stake in Noble and backed a For personal use only A$85 million financing package in November 2012 Noble owns the Bibiani gold mine in Ghana To date Bibiani has underperformed and not met production or cost forecasts Resolute has invested
Slide 20: Why Resolute?
WHY RESOLUTE? One of the largest gold producers listed on the ASX For personal use only Long term operating gold miner in Africa and Australia FY2014 guidance of 345,000oz at A$890/oz 100% unhedged – strong leverage to gold price Cash generating over wide range of adverse gold price moves Lightly ge
Slide 21: Thank you / Disclaimer
For personal use only Thank you 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
For personal use only 21 JORC RESERVES
Slide 23: JORC Resources
For personal use only JORC RESOURCES Notes: 1. Mineral Resources are exclusive of Reserves – differences may occur due to rounding. 2. All Resources and Reserves are reported above 1gpt cut-off except Sarsfield above 0.4gpt cut-off and Nyakafuru above 0.5gpt cut-off. 3. Mt Wright underground Reserve