Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — FY2014 Earnings Presentation
17 slides from Hillgrove Resources's earnings presentation, May 1, 2014
Slide 1: Full Year FY14 Financial Results and Company Update
For personal use only FULL YEAR FY14 FINANCIAL RESULTS AND COMPANY UPDATE GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CHIEF FINANCIAL OFFICER 1 MAY 2014
Slide 2: Overview of FY14 Financial Results
For personal use only OVERVIEW OF FY14 FINANCIAL RESULTS
Slide 3: Highlights
HIGHLIGHTS For personal use only Revenue of $139.2 million and adjusted EBITDA at $37.3 million for full year Full year Net Profit After Tax of $1.5 million Sales of 74,051t of copper concentrate Record production levels achieved with 75,423t of concentrate containing 17,184t copper, 5,962oz
Slide 4: Profit and Loss
PROFIT AND LOSS $’000 FY2013 FY2014 For personal use only Profit after tax of $1.5M Revenue from sale of concentrates 115,395 139,157 Revenue increased to Other income 1,210 793 $139.2M Cost of production (89,790) (84,125) Changes in inventory 9,114 (79) Operations efficiency has Materials and
Slide 5: Balance Sheet
JAN JAN $’000 BALANCE SHEET 2013 2014 CURRENT ASSETS Cash 27,405 16,452 For personal use only Cash at year end of $16.5M Receivables 6,398 5,024 Inventories 19,731 26,162 Increase in oxide and Derivative financial instruments 4,570 4,016 Other 733 192 transition inventories Total current assets
Slide 6: Cashflow
CASHFLOW For personal use only A$175m 121.3 107.5 A$140m A$105m A$70m 19.0 A$35m 27.4 10.2 9.8 3.7 0.5 2.8 16.5 A$0m Opening Cash Receipts Cash Payments Property, Plant, Exploration Sale of Plant and Capital Raising Repayment of Net Interest Closing Balance Balance and Equipment Equipment Borrowings
Slide 7: Safety
SAFETY For personal use only Safety performance shows significant trend of improvement 12 Month moving average Total Following move to owner operator a Recordable Injury Frequency Rate high level of induction, skills 50 assessment and training has been instigated for all employees 40 Transitio
Slide 8: Kanmantoo Copper Mine Production Output
KANMANTOO COPPER MINE PRODUCTION OUTPUT For personal use only Period FY 2013 FY 2014 Consistent and higher Ore to ROM from Pit (kt) 2,221 2,633 mining rates in second half Ore to long term stockpiles (kt) 849 (70) Mined Waste (kt) 11,777 10,027 Mined grade in line with Total Tonnes Mined (kt) 14
Slide 9: Hillgrove
For personal use only HILLGROVE COMPANY UPDATE
Slide 10: Corporate Snapshot – As at May 2014
CORPORATE SNAPSHOT – AS AT 1 MAY 2014 For personal use only ASX listed: HGO Shares on issue: 1,180.9 million Share price: $0.068 Market capitalisation: $80.3 million Cash and cash equivalents $13.9 million Debt $33.4 million Net Debt $19.5 million Tax losses carried forward circa $69
Slide 11: Current Update
CURRENT UPDATE For personal use only Significant additional reduction to current borrowings, with payment of $7.4M made in the first quarter of FY15 Current copper prices lower than balance date with hedging providing solid support for realised copper sales Equipment supply contractor and Hill
Slide 12: Sensitivities and Guidance
SENSITIVITIES AND GUIDANCE For personal use only SENSITIVITIES TO REVENUE AUD/USD +/- 5% AUD 1.4 million Copper Price +/- 10% AUD 4.5 million Gold Price +/- 10% AUD 1.4 million GUIDANCE FOR FY2015 Processing Ore Processed 2,900 to 3,000 k tonnes ore Copper Grade 0.83% – 0.88% Production
Slide 13: Hedge Prices Realised Significantly Higher Than Current Prices
HEDGE PRICES REALISED SIGNIFICANTLY HIGHER THAN CURRENT PRICES For personal use only Strong hedge book A$/mt A$/lb provides certainty for A$10,000 A$4.54 revenue during debt repayment period A$9,000 A$4.08 Additional hedging put in place in January at A$8,300/t A$8,000 A$3.63 Production to end
Slide 14: Strong Hedge Book
STRONG HEDGE BOOK For personal use only Strong hedge book provides certainty for cashflows and revenue in future periods Approximately 32,000t of copper swaps as at the end of financial year 90% of forecast copper production hedged up until July 2014, approximately 65% thereafter up until Marc
Slide 15: Key Contacts
KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director Russell Middleton, Chief Financial Officer Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000 E: info@hillgroveresources.com.au T: 61 2 8247 9300 15
Slide 16: Competent Person Statements
COMPETENT PERSON STATEMENTS For personal use only Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag Classification (Mt) (%) (g/t) (g/t) Hillgrove Resources is an Australian mining Measured 2.63 0.88 0.10 1.95 company listed on the Australian S
Slide 17: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE For personal use only No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or