Resolute Mining Limited · ASX:RSG
Resolute Mining — Africa Down Under Conference 2012
25 slides from Resolute Mining's conference presentation, Aug 30, 2012
Slide 1: Chief Executive Officer's presentation at Africa Down Under Conference
ACN 097 088 689 01 For personal use only 30 August 2012 CHIEF EXECUTIVE OFFICER’S PRESENTATION AT AFRICA DOWN UNDER CONFERENCE Attached is a copy of the Chief Executive Officer’s presentation given at the Africa Down Under Conference. GREG FITZGERALD Company Secretary
Slide 2: Africa Downunder Perth
For personal use only AFRICA DOWNUNDER PERTH CHIEF EXECUTIVE OFFICER PETER SULLIVAN 30 AUGUST 2012
Slide 3: A reliable and consistent gold producer
A RELIABLE AND CONSISTENT GOLD PRODUCER For personal use only One of the largest gold producers listed on the ASX Three operating assets across Africa and Australia FY2013 guidance of 415,000oz at A$830/oz 100% unhedged – strong leverage to gold price Internally funded Syama expansion to 270Koz pa U
Slide 4: Resolute: years of operating experience including more than 15 years in Africa
RESOLUTE: 20 YEARS+ OPERATING EXPERIENCE INCLUDING MORE THAN 15 YEARS IN AFRICA For personal use only A consistent gold Producing gold in FY13 forecast OZ producer since 1989 Africa since 1996/97 415Koz at A$830/oz 500000 400000 300000 200000 100000 0 3
Slide 5: Working with our community partners
WORKING WITH OUR COMMUNITY PARTNERS For personal use only 4
Slide 6: Solid corporate structure
SOLID CORPORATE STRUCTURE For personal use only Key Information Price (AUD) $1.64 ASX Code RSG $1.59 $1.54 Shares 628.28M $1.49 Last Share Price1 $1.56 $1.44 $1.39 Market Cap1 A$980M $1.34 $1.29 Daily Turnover2 A$6.6M $1.24 Cash/Bullion3 A$139M Debt3 A$11M Volume(m) 14.0 Hedging NIL 12.0 10.0 Shareh
Slide 7: Balance sheet positioned for growth
BALANCE SHEET POSITIONED FOR GROWTH For personal use only Transformation of balance sheet over the past 18 months 2011/12 Debt & Cash Levels 200 A$139M in cash and bullion at the end of June 2012 160 120 More than $40M spent on 80 share buybacks since March 40 0 Internal growth fully funded by Jan F
Slide 8: Financial performance continues to improve – first dividend since 1999
FINANCIAL PERFORMANCE CONTINUES TO IMPROVE – REFLECTED IN FIRST DIVIDEND SINCE 1999 For personal use only FY2012 FY2011 Change Group production 398,451oz 330,859oz 20.4% Gold sales revenue $576.7M $445.1M 29.6% Total operating costs $262.2M $293.5M 10.7% Total debt $11.0M $126.0M 91.3% Cash, bullion
Slide 9: A gold miner with a global footprint
A GOLD MINER WITH A GLOBAL FOOTPRINT For personal use only 8
Slide 10: Syama – a profitable, long-life project
SYAMA – A PROFITABLE, LONG-LIFE PROJECT For personal use only Key Statistics RSG Ownership 80% Commissioned 2009 FY12 Production 145,196oz FY12 Cash Costs US$813/oz Throughput 2.4Mtpa Grade 2.8 g/t Total Reserves 3.6Mozs Total Resources 2.8Mozs Mine Life 15+ years Historical Production 0.33Moz 9
Slide 11: Syama expansion is extremely robust at current gold price
SYAMA EXPANSION IS EXTREMELY ROBUST AT CURRENT GOLD PRICE For personal use only § Major expansion approved in July 2012 ‒ Expansion of open pit ‒ Establishment of oxide circuit ‒ Infrastructure including grid power connection § Captures total reserves of 3.68Moz including 557Koz oxide material § Pro
Slide 12: Mali political situation has stabilised
MALI POLITICAL SITUATION HAS STABILISED § Military coup in March 2012 For personal use only § No impact on Syama operations, located 300km south of Bamako § Military handed power to President Traore in April § Transition Government formed in April and replaced in August by a more inclusive Unity Gov
Slide 13: Golden Pride – a strong production record
GOLDEN PRIDE – A STRONG PRODUCTION RECORD For personal use only Key Statistics RSG Ownership 100% Commissioned 1999 FY12 Production 115,298oz FY12 Cash Costs US$764/oz Throughput 2.4Mtpa Grade 1.6 g/t Total Reserves 0.1Mozs Total Resources 1.4Mozs Mine Life 1 year Historical Production 2.07Moz 12
Slide 14: Potential to leverage experience in Tanzania
POTENTIAL TO LEVERAGE EXPERIENCE IN TANZANIA For personal use only § Closure of Golden Pride due in mid 2013 after 15 years in production § Existing 1.1Moz resource located 120km NW of Golden Pride at Nyakafuru § Studies underway to evaluate a future development at Nyakafuru – potential to transport
Slide 15: Ravenswood – stable, long-term production
RAVENSWOOD – STABLE, LONG-TERM PRODUCTION For personal use only Key Statistics RSG Ownership 100% Commissioned 2004 FY12 Production 137,965oz FY12 Cash Costs A$753/oz Throughput 1.5Mtpa Grade 0.9 g/t Total Reserves 1.5Mozs Total Resources 0.9Mozs Mine Life 4+ years Historical Production 1.17Moz 14
Slide 16: Re-opening of Sarsfield remains an option
RE-OPENING OF SARSFIELD REMAINS AN OPTION For personal use only § Potential to extend Ravenswood 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 17: High value exploration portfolio
HIGH VALUE EXPLORATION PORTFOLIO For personal use only § Highly prospective, underexplored tenure 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 FY13 US$22M § Mult
Slide 18: Syama satellite exploration upside
SYAMA SATELLITE EXPLORATION UPSIDE For personal use only § Significant oxide material outlined to support the proposed 1Mtpa process plant expansion § Further drilling designed to test and expand the current resource base along the 6km Alpha to A21 deposit trend north of the Syama deposit § Gold ano
Slide 19: Syama regional exploration upside
SYAMA REGIONAL EXPLORATION UPSIDE For personal use only § Tenure covers ~75km of highly prospective and underexplored Syama Shear in West African Birimian Greenstone Belt § Multiple resource extension targets along strike to the north and south § Tabakoroni Feasibility Submitted and awaiting Exploit
Slide 20: Ravenswood exploration
RAVENSWOOD EXPLORATION For personal use only § 3000km2 tenure over Ravenswood Goldfield in Queensland § Mt Wright/Kidston style breccia pipe targets § Key Projects for testing in next 12 months − Golden Valley − Mt Success − Mt Douglas 19
Slide 21: Huge position in prospective Cote d'Ivoire
HUGE POSITION IN PROSPECTIVE COTE D’IVOIRE For personal use only § Targeting large deposits in the underexplored, world-class Birimian terrains of West Africa § Applied for ~10,000km2 of permits covering 200km+ of Greenstone Belts NE of Newcrest Mining’s Bonikro mine § Ten high priority multi elemen
Slide 22: Fifteen years experience operating in Africa – and at least 15 more to come
FIFTEEN YEARS EXPERIENCE OPERATING IN AFRICA – AND AT LEAST 15 MORE TO COME For personal use only Proven track record mining in Africa and Australia Three operating assets across Africa and Australia FY2013 guidance of 415,000oz at A$830/oz 100% unhedged – strong leverage to gold price Internally fu
Slide 23: Thank you / Disclaimer
THANK YOU For personal use only 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 24: JORC Reserves
For personal use only 23 JORC RESERVES
Slide 25: JORC Resources
JORC RESOURCES For personal use only 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