Regis Resources Limited · ASX:RRL

Regis Resources — Investor Presentation (September 2017)

33 slides from Regis Resources's investor presentation, Sep 21, 2017

  1. Slide 1: Regis Resources Ltd Investor Presentation September 2017

    1 1 REGIS RESOURCES LTD INVESTOR PRESENTATION SEPTEMBER 2017

  2. Slide 2: Disclaimer & Competent Persons Statement

    DISCLAIMER & COMPETENT PERSONS 22 STATEMENT This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’

  3. Slide 3: Corporate

    3 CORPORATE 3 CAPITAL STRUCTURE Shares on issue 504m Last price A$3.91 Market capitalisation A$1,970m Daily turnover (no. shares) 5.4m Unlisted options & rights 7.9m OPERATIONS SNAPSHOT Duketon operations (WA) 10Mtpa for 350kozpa SHARE PRICE & VOLUME Resources (total) 8.2Moz 5 30 Reserves 4.2Moz 4.5

  4. Slide 4: Quality Australian Gold Business

    4 QUALITY AUSTRALIAN GOLD BUSINESS REGIS AT A GLANCE Reserves 4.2 Moz Resources 8.2 Moz FY2018 production guidance: 335,000 – 365,000 ounces A$940 – 1,010/oz AISC Net Cash A$152 million (30 June 17) Dividends and organic growth

  5. Slide 5: Quality of Reserves & Jurisdiction Not Yet Reflected in Relative Value

    REGIS RESOURCES LTD: QUALITY OF RESERVES & JURISDICTION 5 5 NOT YET REFLECTED IN RELATIVE VALUE Australian Peers 629.4 EV/Reserves (US$/oz) 537.7 414.7 Average: US$393/oz 353.6 345.6 235.0 234.9 Northern Star Evolution Saracen Regis Resources Oceana Gold Newcrest St Barbara 692 629 Australia & North

  6. Slide 6: Review of FY2017 Operations

    REVIEW OF FY2017 OPERATIONS 6 6 DUKETON CONTINUES TO DELIVER STRONG CASHFLOW FY17 FY16 OPERATIONS Ore mined (Mbcm) 4.6 4.6  Q4 gold production 90,428 ounces  Run rate above FY16 and FY17 guidance of 300-330koz Waste mined (Mbcm) 25.6 22.6  FY17 production 324,353 oz at top end of guidance Strippi

  7. Slide 7: Cashflow Waterfall

    7 CASHFLOW WATERFALL 7 Cash & Gold on Hand - FY2017 $375m $325m ($80.1m) $256.1m $275m ($49.6m) ($35.6m) $225m ($24.9m) $175m ($36.2m) $4.3m ($5.7m) $151.7m $123.3m $125m $75m Strong cash-flow from operations of $256.1m1 for FY2017 underpinned payment of $80.1 million in dividends during the year. 1

  8. Slide 8: Duketon Gold Project: Reminder of History

    DUKETON GOLD PROJECT 8 8 REMINDER OF HISTORY  New management in 2009  First plant built 2010 – 2mtpa name plate  First production in 2011 – 100kozpa  Now 10 million tonnes pa operation – Australia’s 5th largest gold processing project  Now producing 335 – 365kozpa

  9. Slide 9: Three Crucial Goals of Any Mining Business

    DUKETON GOLD PROJECT 9 9 THREE CRUCIAL GOALS OF ANY MINING BUSINESS  Increase production  Maintain or improve operating margin  Replenish or increase reserves

  10. Slide 10: Growing Production

    DUKETON GOLD PROJECT 10 10 GROWING PRODUCTION 400 360 365 2018 Ounces (000’s) GUIDANCE 335 320 280 324 305 240 200 2016 2017 2018

  11. Slide 11: Maintaining or Expanding Margin

    DUKETON GOLD PROJECT 11 11 MAINTAINING OR EXPANDING MARGIN 2,000 1,800 1,600 1,400 A$ per ounce 1,200 1,000 800 600 400 200 0 1-Jul-15 1-Oct-15 1-Jan-16 1-Apr-16 1-Jul-16 1-Oct-16 1-Jan-17 1-Apr-17 GP Delivered price AISC Operating Margin Linear (Operating Margin)

  12. Slide 12: Growing Reserves

    DUKETON GOLD PROJECT 12 12 GROWING RESERVES DUKETON GOLD RESERVES 2009 - 2017 2,100 3.4Moz 2.2Moz 1,600 RESERVES OUNCES (000’s) 1,100 0.6Moz 1.9Moz 600 100 2009 reserve Mining depletion Discovery Current reserves -400 -900 -1,400

  13. Slide 13: FY17 Results - Strong Performance on All Measures

    FY17 RESULTS - STRONG PERFORMANCE 13 13 ON ALL MEASURES Revenue Net Profit After Tax 600 544 160 502 138 465 140 500 120 112 400 372 $ $ MILLIONS $ MILLIONS 100 87 300 80 55 60 200 40 100 20 0 0 2014 2015 2016 2017 2014 2015 2016 2017 EBITDA Earnings & Dividend per Share 300 100.0% 30.0 27.6 253 234

  14. Slide 14: Dividend

    14 DIVIDEND 14 FY2017 DIVIDENDS Dividends Declared  Final dividend declared 20 CENTS PER SHARE • 8 cents per share fully franked ($40 million) 15  Interim dividend 10 8 9 • 7 cps fully franked ($35m paid March 2017) 5 6 7  Final dividend (8cps) payout key metrics: 4 0 • 4.1% basic dividend yield*

  15. Slide 15: Operations Outlook

    15 OPERATIONS OUTLOOK 15 FY2018 GUIDANCE  Gold production 335,000 – 365,000 ounces  Cash costs $770 – $840 per ounce  AISC $940 – $1,010 per ounce  Growth Capex: $23m  Majority of growth capital related to pre production mining of Baneygo and Tooheys Well satellite operations  FY18 production

  16. Slide 16: Satellite Operations

    SATELLITE OPERATIONS FAMOUS BLUE GEOLOGY 16 16 COMMENCED IN FY17 GLOSTER  26km west of Moolart Well  Mining commenced Q1, milling Q2  Processed 536kt ore at 1.32g/t in Q4  Processed 1.13mt ore at 1.29g/t YTD  Adds 3+ years of mill feed to MW  Grade increases production & recovery ERLISTOUN  9

  17. Slide 17: Exploration Update

    17 EXPLORATION UPDATE 17 DUKETON – CONTINUING TO DELIVER Completed 167,000m of drilling in FY17  Tooheys Well – 2.5km S of Garden Well  Drilling culminates in 366koz Reserve  Rosemont Underground  Numerous +20gm intercepts over 500m strike  Intercepts outside current reserves  Opportunity to a

  18. Slide 18: Tooheys Well Gold Project

    TOOHEYS WELL GOLD PROJECT 18 18 MAIDEN RESERVE REPLACES REGIS FY17 PRODUCTION  Located only 2.5km south of GW  Gold shear zones hosted by chert, shale and BIF  Extensive drill-out in 2015 and 16 culminated in maiden resource July 16  Maiden Reserve quoted June 17: Tonnes Grade Gold (Mt) (g/t) (k

  19. Slide 19: Rosemont South & Main Underground Opportunities

    ROSEMONT SOUTH & MAIN 19 19 UNDERGROUND OPPORTUNITIES 3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2 Phase 1 drill programmes underway at Rosemont South and below Rosemont Main Pit:  Returning numerous high grade intercepts  Drilling to continue in FY

  20. Slide 20: Rosemont Main Pit Underground Project

    ROSEMONT MAIN PIT 20 20 UNDERGROUND PROJECT POTENTIAL FOR UNDERGROUND MINING INVENTORY EXTENSION  Testing high grade shoots 100-200m vertically below ultimate open pit design depth  Holes drilled to date are encouraging for underground opportunities  44 holes for 10,993m of RC drilled in Q4 - exc

  21. Slide 21: Rosemont Main Pit Underground Project: Drill Results in Q4

    ROSEMONT MAIN PIT 2121 UNDERGROUND PROJECT DRILL RESULTS IN Q4  Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit  Gold mineralised quartz-dolerite unit is approx 80m wide.  Q4 Results (all outside reserves):  10m @ 43.84g/t Au from 200m  7m @ 33.86g/t Au from 284m  4m @

  22. Slide 22: Drill Outs Complete So Focus Returns to Regional Exploration

    DRILL OUTS COMPLETE SO FOCUS 22 22 RETURNS TO REGIONAL EXPLORATION NEXT 6 SIGNIFICANT SCALE REGIONAL TARGETS  Post successful delivery of Maiden Reserve at Tooheys Well, focus has returned to generating next suite of regional exploration targets.  6 new regional targets generated from data review

  23. Slide 23: McPhillamys (NSW)

    23 McPHILLAMYS (NSW) 23 ORGANIC GROWTH PROJECT  Located in Central-West NSW  Well established gold mining district  Cadia, Cowal, Northparkes +45Moz*  Gold resource 2.31Moz  Gold reserve 2.03 Moz  One of Australia’s larger undeveloped open pit opportunities  PFS completed showing high quality

  24. Slide 24: McPhillamys: Process Water Options

    24 McPHILLAMYS 24 PROCESS WATER OPTIONS Option 1 – Water Supply from Mt Piper Power Station and Springvale Mine  Non-binding heads of agreement for supply & offtake of 4-5GLpa of water for a 7Mtpa processing facility  Water available from middle of 2019 with a 10 year supply term and further 10 ye

  25. Slide 25: McPhillamys: Process Water Options

    25 McPHILLAMYS 25 PROCESS WATER OPTIONS Option 2 – Groundwater Access Licenses  Contractually secured 4.5GLpa of Water Access Licenses over ground water approx. 80km from McPhillamys  Represents a viable and secured alternative source of water supply sufficient for 7mtpa operation McPhillamys Mt P

  26. Slide 26: McPhillamys: Maiden Reserve Reported September 2017

    26 McPHILLAMYS 26 MAIDEN RESERVE REPORTED SEPTEMBER 2017 Infill Drilling Completed  44,000m of drilling over the last 9 months  Reduced drill pattern to 50x25m (nominal) Maiden Ore Reserve Category Tonnes Grade Ounces (> 0.4g/t lower cut) (MT) (g/t) (000’s) Probable Ore Reserve 60.1 1.05 2,034  O

  27. Slide 27: McPhillamys: PFS Generates Strong Project

    27 McPHILLAMYS 27 PFS GENERATES STRONG PROJECT – ORGANIC GROWTH WITH QUALITY & SCALE PFS Results Capital Cost A$m Operating Cost Ore milled (Million tonnes) 60.1 Treatment plant 142.3 A$/tonne Grade (g/t) 1.05 Water pipeline 38.0 A$/oz Mining Recovery (%) 85 Power supply 8.7 LOM gold 15.46 produced

  28. Slide 28: McPhillamys: Robust Processing Flowsheet & Simple Open Pit Mining

    28 McPHILLAMYS 28 ROBUST PROCESSING FLOWSHEET & SIMPLE OPEN PIT MINING 7 MTPA PROCESSING PLANT Operating Cost Plant design is simple & robust, A$/tonne broadly comprising: A$/oz  Three stage crushing Mining  Grinding and classification 15.46  Gravity recovery & ultrafine 537 grinding  UFG for 4%

  29. Slide 29: McPhillamys: Indicative Development Timetable

    29 McPHILLAMYS 29 INDICATIVE DEVELOPMENT TIMETABLE Milestone Target Date Complete Definitive Feasibility Dec 2017 Quarter Study (DFS) Submit Environmental Impact Mar 2018 Quarter Statement (EIS) Approval by NSW Department Sept 2018 Quarter Planning & Environment (DPE) Commence plant construction Dec

  30. Slide 30: McPhillamys: Bolt On Acquisition

    30 McPHILLAMYS 30 BOLT ON ACQUISITION EXPECTED TO DELIVER FURTHER SIGNIFICANT VALUE  Acquired Blayney Gold Project for A$3.25m  Contiguous to the McPhillamys project and hosts two quoted Mineral Resource Estimates*: • Discovery Ridge: 13.84Mt at 1.1g/t for 501koz • Bald Hill: 37.0Mt at 0.5g/t for

  31. Slide 31: Recap of Presentation

    RECAP OF PRESENTATION 31 31  Q4 gold production 90,428 ounces at AISC of A$870/oz  FY17 gold production 324,353 ounces at AISC of A$945/oz  FY17 production at top of guidance & AISC below bottom of guidance  FY18 guidance increased to 335 – 365koz at AISC of A$940 – $1,010/oz  Cash-flow from op

  32. Slide 32: JORC Compliant Ore Reserve Estimates March 2017

    APPENDIX 1 JORC COMPLIANT 32 32 ORE RESERVE ESTIMATES 31 MARCH 2017 Gold Proved Probable Total Ore Reserve Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Person3 (g/t)2 (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Moolart W

  33. Slide 33: JORC Compliant Mineral Resources March 2017

    APPENDIX 2 33 33 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2017 Gold Measured Indicated Inferred Total Resource Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Person2 (g/t) (Mt) (g/t) (koz) (Mt) (g/t)

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