Slide 1: CY14 Results: 11 Months from 1 February to 31 December 2014
For personal use only CY14 RESULTS: 11 MONTHS FROM 1 FEBRUARY TO 31 DECEMBER 2014 GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CHIEF FINANCIAL OFFICER 27 FEBRUARY 2015
Slide 2: Financial Results
For personal use only FINANCIAL RESULTS
Slide 3: Statement of Profit or Loss
STATEMENT OF PROFIT OR LOSS Statement of Profit or Loss 11 months 12 months For personal use only ($ million) to 31/12/14 to 31/01/14 20% revenue increase to Revenue from sale of concentrates 166.8 139.2 $166.8M Other income 0.1 0.3 Cost of production (97.4) (83.8) Long term stockpiles written off
Slide 4: Balance Sheet
BALANCE SHEET ($’000) 31 Dec 2014 31 Jan 2014 For personal use only Current assets Cash and cash equivalents 8,854 16,452 Trade and other receivables 5,012 5,024 Other financial assets 229 192 Increase in inventories due Inventories 32,664 26,162 Derivative financial instruments 1,477 4,016 to inc
Slide 5: Balance Sheet and Gearing
BALANCE SHEET AND GEARING For personal use only Gearing (%) 30.0 25.0 22.8 21.3 20.0 17.5 15.0 10.4 10.0 7.5 5.0 0.0 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Dec‐14 Financial position continues to strengthen, with gearing now below 10% Total Borrowings of only $19.0M, with a further $3.0M paid in January 201
Slide 6: Cash Flow
CASH FLOW For personal use only Operating Activities 11 months to 31 12 months to 31 ($ million) Dec 2014 Jan 2014 Receipts from customers 149.9 121.3 Payment to suppliers, employees and contractors (103.2) (107.5) Net cash flows from operating activities 46.7 13.8 Significant increase in net cash
Slide 7: Strong Hedge Book for Medium Term Revenue Certainty
STRONG HEDGE BOOK FOR MEDIUM TERM REVENUE CERTAINTY For personal use only Strong hedge book provides confidence for realised prices for the medium term Company has 78% of payable copper production hedged through to March 2016 at $7,723/Mt ($3.50/lb) Compares favourably to current copper spot p
Slide 8: Production and Costs
For personal use only PRODUCTION AND COSTS
Slide 9: CY14 Highlights
CY14 HIGHLIGHTS For personal use only Production, sales and unit cost results for the 11 months ended 31 December 2014 Produced 20,693 tonnes of copper in concentrate Produced 90,163 dry metric tonnes of copper concentrate Sold 90,583 dry metric tonnes copper concentrate C1 unit costs of US$
Slide 10: Production Output
PRODUCTION OUTPUT For personal use only CY14 FY14 FY13 Period to 31 Dec 14 to 31 JAN 14 to 31 JAN 13 11 MTHS 12 MTHS 12 MTHS Significant Ore to ROM from Pit kt 2,620 2,633 2,221 increase in Ore to long term stockpiles kt 1,172 262 849 mining activity Mined Waste kt 15,899 10,027 11,777 Total Tonne
Slide 11: CY14 Copper Production
CY14 COPPER PRODUCTION For personal use only 25,000mt Note: Guidance amended to reflect the 11 month 20,000mt financial year 1 February to 31 December 2014 15,000mt 20,500mt to 22,500mt Copper 10,000mt 5,000mt 0mt Feb‐14 Mar‐14 Apr‐14 May‐14 Jun‐14 Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14 Guidance
Slide 12: Lower Mining and Processing Costs Maintained
LOWER MINING AND PROCESSING COSTS MAINTAINED For personal use only Mining Unit Costs by Quarter 25.00 Consistent 20.00 reduction in mining unit costs over the $/BCM 15.00 last six quarters 10.00 5.00 Continued low processing unit 0.00 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014 Sep 201
Slide 13: Forward Looking / Guidance
For personal use only FORWARD LOOKING / GUIDANCE
Slide 14: Life of Mine Plan
LIFE OF MINE PLAN For personal use only In December 2014 the LOM plan was reviewed and an updated model prepared with key physicals as follows Copper Production Primary Ore 25,000 0.90% 6,000,000 0.80% 20,000 5,000,000 0.70% 0.60% 4,000,000 15,000 0.50% 3,000,000 0.40% 10,000 0.30% 2,000,000 5,000
Slide 15: 2015 Outlook
2015 OUTLOOK For personal use only Through the next 12 months, Hillgrove will undertake the following key activities: Continue to manage the volatility in copper price and insulate its operating cash flows through an active hedging program for metals Provide primary ore feed from the Nugent, Emi
Slide 16: Guidance to December 2015
GUIDANCE TO DECEMBER 2015 For personal use only Kanmantoo guidance levels, based on current performance and planned improvements Guidance For FY15 Total Ore Mined 2,800kt to 3,000kt Primary Ore Processed 2,300kt to 2,600kt Primary Ore Grade Processed 0.68% to 0.72% Copper Primary Ore Copper Recovery
Slide 17: Highlights – Summary
HIGHLIGHTS – SUMMARY For personal use only Revenue was $167.0M at an average realised price for copper of $3.62/lb (US$3.31/lb) Copper hedging strategy continues to significantly support revenue stream. 78% of payable copper production is now hedged through to March 2016 at $7,723/Mt ($3.50/lb)
Slide 18: 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 18
Slide 19: 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 is an Australian mining company Measured 2.63 0.88 0.10 1.95 listed on the Australian Securities
Slide 20: 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