Bellevue Gold Limited · ASX:BGL
Bellevue Gold — Investor Presentation (September 2021)
72 slides from Bellevue Gold's investor presentation, Sep 2, 2021
Slide 1: Feasibility Study 2 and Capital Raising
Feasibility Study 2 and Capital Raising High-grade Bellevue Gold Project in WA fully funded to first production
Slide 2: Disclaimers & Compliance Statements
Disclaimers & Compliance Statements This Presentation has been prepared by Bellevue Gold Limited (Company) and is authorised by the Managing Director of Bellevue Gold Limited. DISCLAIMER This Presentation has been prepared by the Company based on information from its own and third party sources and
Slide 3: Disclaimers & Compliance Statements
Disclaimers & Compliance Statements This Presentation contains references to Mineral Resource and Ore Reserves estimates, which have been extracted from the Company’s ASX announcements on 8 July 2021 titled “Bellevue Increases Total Resources to 3.0Moz at 9.9g/t” and on 2 September 2021 respectively
Slide 4: Disclaimers & Compliance Statements (cont)
Disclaimers & Compliance Statements (cont) In connection with the Placement, one or more investors may elect to acquire an economic interest in the New Shares (Economic Interest), instead of subscribing for or acquiring the legal or beneficial interest in those shares. A Joint Lead Manager (or its a
Slide 5: Investment Highlights
Investment Highlights A$106m underwritten placement ensures Bellevue is fully funded to first production and on track to deliver the project in the June quarter of 2023, whilst continuing the exploration program One of the highest-grade, lowest cost mines in Australia with the first 5 years producin
Slide 6: Overview of equity raising
Overview of equity raising Bellevue Gold Limited is conducting an underwritten institutional placement to raise A$106 million and a non-underwritten Share Purchase Plan to raise up to A$25 million (collectively “the Offer”) Offer structure and size • Bellevue is conducting the Offer to raise up to A
Slide 7: Equity raising timetable
Equity raising timetable Event Date1 Placement Trading halt Thu 2 September 2021 Launch of Offer and Investor Presentation Thu 2 September 2021 Trading halt lifted and announcement of completion of Placement Fri 3 September 2021 Settlement of Placement Shares Tue 7 September 2021 Allotment of Placem
Slide 8: Sources and uses of funds
Sources and uses of funds Proceeds from the Offer, in conjunction with the A$200 million Macquarie loan facility, will be used to fund the development of the Bellevue Project Sources of funds A$m Uses of funds A$m Proceeds from Placement 106 Development and construction capital 252 Proceeds from SPP
Slide 9: Dual track strategy delivering Value with the FS2 study
Dual track strategy delivering Value with the FS2 study • Bellevue’s dual track strategy of exploration and a pathway to production continues to unlock value • In only 6 months FS2 has added A$701m, or a 65% increase in free cash flow and increased the IRR to 72% (pre-tax) • Further exploration will
Slide 10: A resource that continues to grow rapidly
A resource that continues to grow rapidly • Since the discovery hole in November 2017, the Resource has grown at a compound annual growth rate of 81% at a discovery cost of A$18/oz BGL Resource Growth (koz) † BGL Resource per Share (oz/Msh) † † . 3,000 koz 2,410 koz 1,040 koz 3,493 690 koz 2,831 2,5
Slide 11: A deposit that continues to grow in every direction
A deposit that continues to grow in every direction • Since the Tribune discovery hole in November 2017, the resource has grown at a compound annual growth rate of 81% • The recent Lucknow discovery extends the strike to over 5km and the Lucien discovery sits 300m beneath the Deacon lode; and the de
Slide 12: A Robust, Independent Feasibility Study
A Robust, Independent Feasibility Study On the pathway to production Bellevue has engaged industry leading experts to assist and drive the Feasibility Studies Studies, mine design, scheduling Non-processing infrastructure Process plant and infrastructure Geotechnical engineering Metallurgical testwo
Slide 13: FS2 vs FS1 – adding immediate value to the project
FS2 vs FS1 – adding immediate value to the project Stage 2 Study delivers a significant improvement in all key project metrics, including production, life of mine, costs, free cash flow, profit and return metrics; all without a material change in capital costs Key LOM Production Statistics FS1 FS2 Δ
Slide 14: FS1 vs FS2 - What’s Changed?
FS1 vs FS2 - What’s Changed? Key de-risking events achieved on the project since underground activities commenced Study Parameters FS1 FS2 Outcome Mill Size 750 ktpa 1 Mtpa (and repriced) 33% Improvement Decreased risk with additional Independent Mining Areas Three areas and 21 fronts Five areas a
Slide 15: BGL joining an exclusive gold club
BGL joining an exclusive gold club • There are only 7 other assets globally in Tier 1 jurisdictions, that produce over 180kozpa with a head grade over 5g/t • FS2 will see the project produce over 200kozpa for the first 5 years and a LOM average of 183kozpa for 8.1 years • Further Resource conversion
Slide 16: BGL – FS2 delivers substantial production growth
BGL – FS2 delivers substantial production growth • Updated Stage 2 Feasibility Study provides for a production increase of 21% over the life of the project • Significant increase to production demonstrated within six months of previous study, with significant cashflow generation from year 2 and a pr
Slide 17: BGL – Forecast to deliver sector-leading financial returns
BGL – Forecast to deliver sector-leading financial returns • BGL’s production is forecast to commence in FY23 and set to deliver sector-leading profitability compared to its ASX listed peer group LTM EBITDA Margin vs BGL LOM EBITDA Margin % LTM AISC Margin vs BGL LOM AISC Margin † % 66% 58% 54% 58%
Slide 18: BGL - Forecast to be Australia’s lowest greenhouse gas emitter/oz
BGL - Forecast to be Australia’s lowest greenhouse gas emitter/oz • Bellevue is forecast to become the lowest emitter on a per ounce basis in Australia; the Stage 2 Feasibility Study shows a forecasted greenhouse gas intensity of 0.202 t CO2e / oz. This has improved by ~30% due to the planned integr
Slide 19: BGL – Forecast to become a Top Australian gold mine
BGL – Forecast to become a Top 20 Australian gold mine • The updated Stage 2 Feasibility Study shows BGL is forecast to enter the Top 20 largest producing gold mines in Australia • 21% uplift in LOM average production compared to the Stage 1 Feasibility Study released in February 2021 • BGL is forec
Slide 20: BGL – Forecast to enter the bottom quartile on AISC vs peers
BGL – Forecast to enter the bottom quartile on AISC vs peers • The Stage 2 DFS positions BGL in the bottom cost quartile with a forecast LOM All In Sustaining Cost (AISC) of A$1,014/oz • In the first 5 years of production the project will average an AISC of A$922/oz 2,104 2,034 1,942 1,964 1,744 1,7
Slide 21: A$200M Fully Underwritten Credit Approved Project Finance
A$200M Fully Underwritten Credit Approved Project Finance • Macquarie was Bellevue’s first institutional investor and has elected to take the majority of upfront fees in Bellevue shares • Due to the forecast strong free cash flow generation Bellevue will be in the enviable position to be able to con
Slide 22: Outstanding forecast EBITDA and free cash flow generation
Outstanding forecast EBITDA and free cash flow generation The Bellevue mine design and project has been optimised on profitability and free cash flow and not grade and the project generates an average LOM FCF/oz of A$1,405/oz (pre tax and post commissioning) Pre-tax and at a spot gold price scenario
Slide 23: Development & de-risking continues a rapidly growing Resource
Development & de-risking continues a rapidly growing Resource • FS2 further de risks the project with 5 independent mining areas accessed prior to production. Deacon, Viago, Armand, Marceline and Tribune with the total A$1,502m of capital and operating costs incorporated into the A$1,014/oz AISC • O
Slide 24: Development timetable with targeted first gold production
Current Development timetable with targeted first gold production June Q 20231 2021 2022 2023 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Existing Decline Rehabilitation Development Underground Exploration Access Project Approvals and Permitting Early Works Infrastructure Stage 2 Feasibili
Slide 25: Exploiting Our Competitive Advantages
Exploiting Our Competitive Advantages One of Australia’s highest-grade gold mines, with exciting exploration potential and an accelerated development timeline: “Real People, Real Profits, Real Growth” 3.0Moz 2.4 MozFCF A$1.8b + 10.0g/t at 9.9g/t 72% IRR GRADE & SCALE PROFITABILITY GROWTH STRONG ESG
Slide 26: Appendices
Appendices Click here for the 3D Inventum model
Slide 27: Sources and Uses Of Funds from Stage 1 July 2020
Sources and Uses Of Funds from Stage 1 July 2020 FS2 FS1 and Stage 1 Work Completed from Sources of funds A$m Uses of funds A$m2 Development2 July 2020 Current Cash1 71 Mine development and construction capital3 252 255 Nil Proceeds from Underwritten Early works (A$20m), pre-development (A$40m) 200
Slide 28: Fully Funded to Production
Fully Funded to Production Pre-Production Capital Expenditure (A$M) Site and Sustaining Capital 66 Processing Plant 82 Open Pit 14 Underground1 132 Capitalised operating costs 19 Capitalised revenue (61) Sub Total 252 Contingency2 15 Total 267 Variations to FS1 include optimisation of underground ca
Slide 29: Conventional Processing Facility – to deliver LOM recoveries of 96.7%
Conventional Processing Facility – to deliver LOM recoveries of 96.7% Processing Plant • Total LOM recoveries forecasted at 96.7% • Process plant designed to recover high gravity component at the front end. Test work indicates between 58% and 85% is recoverable through gravity recovery methods. • Cy
Slide 30: Conventional mining methods
Conventional mining methods Sub Horizontal Lodes (13% LOM Ounces) • Areas with footwall dips < 45o utilise a modified cut and fill method with sub level stoping • Primary development is driven along strike of the ore zones, the ore is then stripped out (up to 4.2m) • The primary drive is filled with
Slide 31: Project Operating Costs
Project Operating Costs Operating Costs A$M A$/T Milled A$/oz Produced Operating Costs (post-production) • Underground & Open Pit Mining – Rates supplied by UG & OP Mining 649 81.99 438 competitive Request for Quotation (RFQ) processes. Costs include recovery of ore and delivery to surface ROM Pad,
Slide 32: BGL – Site Updated 3D Inventum video & Site Flyover Video
BGL – Site Updated 3D Inventum video & Site Flyover Video 3D Inventum Link Click Below Project Flyover Link Click Below https://inventum3d.com/c/BGL/Bellevue https://bellevuegold.wistia.com/medias/w9cw1f5wk2 32
Slide 33: Corporate Summary
Corporate Summary Building Strong Foundations ASX Code Current Share Price (as at 30 August 2021) A$0.99 BGL ASX 300 (September 2019) Market Capitalisation ~ A$846M Shares on issue ~859m Cash1 ~ A$71m Management & consultant options & Hits up to 163g/t New high grade Stage 1 Feasibility ~20m $1.60 V
Slide 34: Management Team with a proven track record
Management Team with a proven track record Daina Del Borrello Craig Jones Sam Brooks Luke Gleeson Maddison Cramer Rod Jacobs Amber Stanton GM People and Company Culture Chief Operating Officer Chief Geologist Head of Corporate Development Joint Company Secretary Project Director General Counsel and
Slide 35: Board of Directors
Board of Directors Kevin Tomlinson Steve Parsons Fiona Robertson Shannon Coates Michael Naylor Executive Independent Chairman Managing Director Non-Executive Independent Director Non-Executive Independent Director Executive Director Mr Tomlinson has over 30 years’ Mr Parsons is an experienced geolog
Slide 36: Tier 1 location in world-class gold belt
Tier 1 location in world-class gold belt Bellevue has Major Landholding of Over 2,780km² Excellent infrastructure: Historically significant producing region: • Services at Leinster, Leonora and Wiluna • Major gold deposits & producing gold mines in proximity to Bellevue’s Projects (Agnew Gold • Dail
Slide 37: A$23-28m exploration budget: An organic pipeline of growth
A$23-28m exploration budget: An organic pipeline of growth Bellevue discovery to resource growing at a compound annual growth rate of 81%. Armand Lode discovered August 2020, Marceline Lode discovered recently post the first Feasibility Study, multiple advanced targets ready for further Resource gro
Slide 38: Bellevue’s economic contributions to society to grow with FS2
Bellevue’s economic contributions to society to grow with FS2 • Since the ‘discovery hole’ in November 2017, Bellevue has injected over A$88m into the Australian economy • During construction and operation, our Stage 1 Feasibility Study forecasts to generate A$2.3 billion into the economy, including
Slide 39: BGL’s approach to ESG = no greenwashing
BGL’s approach to ESG = no greenwashing • Our Stage 1 Feasibility Study estimated that the gas power station would contribute 73% of the mine’s overall emissions • The latest plans for the Bellevue power station will further reduce emissions, whilst maintaining reliability and meeting power demands
Slide 40: ESG & the opportunity to be ‘best in class’ corporate citizens
ESG & the opportunity to be ‘best in class’ corporate citizens BGL is evaluating all options on the pathway to development - Smart blasting ✓ - Use of renewable electricity (eg. Climate consideration examples: - Energy efficient grinding ✓ solar, batteries) to power - Bushfires ✓ - Running compresso
Slide 41: Bellevue is an industry leader in diversity
Bellevue is an industry leader in diversity Bellevue has a Cultural Heritage Management Plan and a Diversity Policy • Bellevue is leading the Australian mining sector for gender diversity and has a 0% gender pay-gap for like-for-like roles • Key metrics of our diversity results include: o 40% female
Slide 42: Why Bellevue?- Click Here
Why Bellevue?- Click Here BELLEVUE GOLD 4a “ i Site Servi BELIEVE
Slide 43: Values and Vision
Values and Vision “To create a standout gold mining and exploration company that is an industry benchmark” At Bellevue we believe we have a unique opportunity to develop a standout gold mining company that is the benchmark for others to be measured against. We believe our four key values are fundame
Slide 44: The sustainability pathway - a vision to be best in class
The sustainability pathway - a vision to be best in class Begin TCFD TCFD gap Develop climate Climate considerations analysis and risks and for new infrastructure, TCFD phase 3: phase 1: integrate identify Refresh TCFD staged action opportunities efficiency options and benchmarking plan register fue
Slide 45: Bellevue’s leading commitment on efficient energy use
Bellevue’s leading commitment on efficient energy use • The Bellevue Gold Project has been designed to optimize energy use and reduce environmental impact • Modeling places the project as of one of the most efficient gold mines, based on forecast energy use (GJ) per ounce produced • Since the Stage
Slide 46: Energy-emissions intensity – Bellevue is leading the way
Energy-emissions intensity – Bellevue is leading the way • Energy-emissions intensity is the factor of emissions per unit of energy produced, such as tonnes of CO2e per GJ • This trend shows that off-grid mines, powered by a gas-fired power station have a lower energy-emissions intensity than grid-c
Slide 47: Scope 1 and Scope 2 emissions of Australian gold mines
Scope 1 and Scope 2 emissions of Australian gold mines • The annual greenhouse gas emissions of Australian gold mines is plotted below • Due to the project’s low carbon emission intensity, Bellevue will have one of the lowest total greenhouse gas emissions per year of any Australian gold mine • Bell
Slide 48: Bellevue’s community contributions and PACE values
Bellevue’s community contributions and PACE values Our commitment to the Communities in which we operate is the ‘C’ in our PACE values Bellevue is committed to supporting Aboriginal 2020 BELLEVUE GOLD people with pathways to employment. We offer trainees the opportunity to gain work experience in CO
Slide 49: Processing Plant Overview
Processing Plant Overview 49
Slide 50: Non Process Infrastructure
Non Process Infrastructure Infrastructure requirements • New office and facilities to support the mine activities • New 300-person camp located north of the project area with access from the Goldfields Highway • Potable water sourced, treated and distributed around the site (has been secured and cur
Slide 51: Project Finance Key Terms
Project Finance Key Terms Loan Facility Facility Amount A$200,000,000 (Fully Underwritten) Tenor 31 December 2027 (6 years) Repayment Period Quarterly, March 2024 - December 2027 Interest Rate 3.50% per annum pre-Project Completion and 3.00% per annum post Project Completion Early Repayment Allowed
Slide 52: Opportunities & Risks
Opportunities & Risks Opportunities Risks • Mill throughput increase to process lower grade stockpiles of mined • Gold price volatility and exchange rate risk material. Infrastructure design has allowed for readily expandable • Resource and Reserve estimates growth. • Risks as to forecasts • Paste f
Slide 53: Mineral Resource and Ore Reserve Estimates
Mineral Resource and Ore Reserve Estimates INDEPENDENT JORC 2012 RESOURCE AND RESERVE ESTIMATES FOR THE BELLEVUE GOLD PROJECT 3.5g/t gold lower cutoff, totals rounded to reflect acceptable position Tonnes Grade Contained Ounces Mineral Resource (Mt) (g/t Au) (Moz) Indicated Mineral Resources 3.9 11.
Slide 54: Risks
Risks The project has continued to be de-risked by the following events being achieved since the February 2021 Feasibility Study release: • Ongoing drilling of the Mineral Resources with successful update and increase of the global Mineral Resource in July 2021 which forms the basis of the updated F
Slide 55: Risks (continued)
Risks (continued) Risks as to forecasts The Company has prepared operating cash costs, future production targets and revenue profiles for its future operations at the project. These forecasts, although considered to have reasonable grounds, may be adversely affected by a range of factors including:
Slide 56: Risks (continued)
Risks (continued) In addition, in order to access the Project Loan Facility, the Company is required to commit to 135,000 ounces of gold hedging at a minimum forward price of A$2,250. Though the current spot price is approximately A$2,480, there is no guarantee that the Company can achieve the requi
Slide 57: Risks (continued)
Risks (continued) parties. The presence of Aboriginal sacred sites and cultural heritage artefacts on the tenements is protected by State and Commonwealth laws. Any destruction or harming of such sites and artefacts may result in the Company incurring significant fines and Court injunctions, which m
Slide 58: Risks (continued)
Risks (continued) COVID-19 Supply chain disruptions resulting from the transmission of COVID-19 in the community and measures implemented by governments around the world to limit the transmission of the virus may adversely impact the Company’s operations, financial position, prospects and ability to
Slide 59: Risks (continued)
Risks (continued) The occurrence of any of these circumstances could result in the Company not realising its operational or development plans or in such plans costing more than expected or taking longer to realise than expected. Any of these outcomes could have an adverse effect the Company's financ
Slide 60: Risks (continued)
Risks (continued) The Company may undertake additional offerings of shares and of securities convertible into shares in the future. The increase in the number of shares issued and outstanding and the possibility of sales of such shares may have a depressive effect on the price of shares. In addition
Slide 61: Risks (continued)
Risks (continued) duration and success for permitting efforts are contingent upon many variables not within the control of the Company. There can be no assurance that all necessary permits will be obtained, and, if obtained, that the costs involved will not exceed those estimated by the Company. Ame
Slide 62: Risks (continued)
Risks (continued) • climate change may cause certain physical and environmental risks that cannot be predicted by the Company, including events such as increased severity of weather patterns and incidence of extreme weather events and longer-term physical risks such as shifting climate patterns. All
Slide 63: Risks (continued)
Risks (continued) Competition risk The Company will compete with other companies, including major gold companies in Australia and internationally. Some of these companies will have greater financial and other resources than the Company and, as a result, may be in a better position to compete for fut
Slide 64: Risks (continued)
Risks (continued) In Taxation Ruling TR 2012/7, the ATO regards the underground mine as a new depreciating asset and as such, qualifies for TFE provided that it is committed to after 6 October 2020 and is first held and installed ready for use by 30 June 2023. BGL expects to incur underground develo
Slide 65: Underwriting risk
Risks (continued) Underwriting risk The Company has entered into an underwriting agreement with the Joint Lead Managers who have agreed to fully underwrite the placement, subject to certain terms and conditions (Underwriting Agreement). If certain conditions are not satisfied or certain events occur
Slide 66: Potential for Dilution and Control Risk
Risks (continued) Litigation risk The Company is exposed to possible litigation risks including native title claims, tenure disputes, environmental claims, royalty disputes, other contractual disputes, occupational health and safety claims and employee claims. Further, the Company may be involved in
Slide 67: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new fully paid ordinary shares of the Company (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sol
Slide 68: International Offer Restrictions (cont)
International Offer Restrictions (cont) Any financial information contained in this document has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards and interpretations issued by the International Accounting Standards Boar
Slide 69: International Offer Restrictions (cont)
International Offer Restrictions (cont) Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Ho
Slide 70: International Offer Restrictions (cont)
International Offer Restrictions (cont) New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not being offered or sold in New Zealand (or allotted with a view
Slide 71: International Offer Restrictions (cont)
International Offer Restrictions (cont) Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing materi
Slide 72: International Offer Restrictions (cont)
International Offer Restrictions (cont) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets
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