Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (May 2016)
23 slides from Hillgrove Resources's shareholder meeting presentation, May 26, 2016
Slide 1: Annual General Meeting Company Update
For personal use only ANNUAL GENERAL MEETING COMPANY UPDATE STEVE McCLARE IIIII CEO & MANAGING DIRECTOR 26 MAY 2016
Slide 2: Safety, Community and Environment
For personal use only SAFETY, COMMUNITY AND ENVIRONMENT
Slide 3: Safety Has Significantly Improved
SAFETY HAS SIGNIFICANTLY IMPROVED For personal use only KEY TAKEAWAYS Significant improvement in safety, lowest TRIFR since operations began in 2011 3
Slide 4: Premier's Award – Excellence in Supporting Communities
PREMIER’S AWARD – EXCELLENCE IN SUPPORTING COMMUNITIES For personal use only KEY TAKEAWAYS Social licence to operate is a fundamental pillar of future success 4
Slide 5: Environmental – Progressive and Offset Rehabilitation
ENVIRONMENTAL – PROGRESSIVE AND OFFSET REHABILITATION For personal use only KEY TAKEAWAYS 17% of site rehabilitation requirements completed in CY15 High quality rehabilitation, achieved in a progressive and cost effective manner 5
Slide 6: Annual Accounts
For personal use only ANNUAL ACCOUNTS
Slide 7: Report Highlights CY15
REPORT HIGHLIGHTS CY15 Copper in concentrate 17,306 tonnes For personal use only Underlying EBITDA of $17.3M Impairment of Assets Indonesia $29.9M Kanmantoo $69.8M Revenue $139.5M - average realised copper price of $3.57/lb (US$2.74/lb) C1 cost $2.81/lb (US$2.11/lb) $18.1m progressin
Slide 8: The Past Months – Post Financing
For personal use only THE PAST 12 MONTHS – POST FINANCING
Slide 9: Executive Summary
EXECUTIVE SUMMARY Lower production in the last 12 months driven by historical oxide stockpiles and upper For personal use only areas of the Giant Pit, Significant focus area, addressed with an updated mineral resource estimate, Confidence in mineral resource estimate: Based on back validatio
Slide 10: Cashflow – Working Capital Analysis
CASHFLOW – WORKING CAPITAL ANALYSIS For personal use only Projected CFADS Copper OX Copper PR Gold Revenue Costs Actual CFADS Revenue Revenue KEY TAKEAWAYS Revenue losses from copper only partially offset by lower expenses and higher precious metals revenue. Resulting in minimal buffer. 10
Slide 11: Revenue Analysis Since Last AGM
REVENUE ANALYSIS SINCE LAST AGM 12 month copper production 4.4kt lower than initially forecast For personal use only 56% historical oxide and transitional stockpiles 44% primary feed (satellite pits and upper levels of Giant) Expected to have minimal impact in the future Oxide and transiti
Slide 12: Mineral Resource Estimate 2016 - Methodology
MINERAL RESOURCE ESTIMATE 2016 - METHODOLOGY 2013 MRE 2016 MRE 2016 MRE Comments For personal use only Modelling OK MIK Highly variable mineralisation method linear non-linear requires non-linear modelling Recoverable to avoid smoothing Historic holes Included Excluded Removes spatial and grade 79 h
Slide 13: Mineral Resource Estimate (Continued)
MINERAL RESOURCE ESTIMATE (CONTINUED) 40,000 For personal use only 12% 35,000 30,000 Copper Metal (tonnes) (11%) 25,000 20,000 15,000 10,000 5,000 - 2013 MRE Actual 2016 MRE (mill reconciled) KEY TAKEAWAYS Mineral Resource Estimate compared to historic mining in Kavanagh Old model over predicted
Slide 14: Mineral Resource Estimate (Continued)
MINERAL RESOURCE ESTIMATE (CONTINUED) For personal use only Mineral Resource Estimate comparison of 2016 MRE to 2013 MRE: Extra 11,080 tonnes of copper metal for the same deposits despite depletion 2016 MRE reconciles favourably against historic production from Kavanagh 11% on tonnes of copper
Slide 15: Updated Life of Mine Plan Summary
UPDATED LIFE OF MINE PLAN SUMMARY Current life of mine plan reflects the updated geological model For personal use only Last 12 months waste to ore ratio of 5.4:1 Three phases of remaining mine life: Phase 1: Capital Investment (Remainder 2016) Relatively high strip ratio (4.3:1) Phase 2
Slide 16: Exploration
For personal use only EXPLORATION
Slide 17: Along Strike Mineralisation
ALONG STRIKE MINERALISATION Contiguous geophysical trend extending up to 1km to NNE For personal use only of existing Giant orebody Observed in recent Gravity, but subtle in historic EM/IP due to near-surface effects and lack of QA/QC Untested until recent HGO deep RC hole KEY TAKEAWAYS Grav
Slide 18: Along Strike Mineralisation
ALONG STRIKE MINERALISATION 28m @ 0.61% Cu and 0.14g/t Au (324m RC Hole) For personal use only DHEM - Significant off-hole conductors towards pit & up-dip Indicative grades and thickness consistent with current orebody Giant orebody remains open at depth KEY TAKEAWAYS Encouraging hole and
Slide 19: Planned Exploration Program
PLANNED EXPLORATION PROGRAM For personal use only KEY TAKEAWAYS Near-mine exploration to recommence once operation stabilised 19
Slide 20: Closing
For personal use only CLOSING
Slide 21: Executive Summary
EXECUTIVE SUMMARY For personal use only Directors remain confident significant value in the mine can be achieved Updated geological model: Robust Estimate appropriate for the complex deposit Reinforced with historical validation and actual performance over the last 3 months Cash flow profi
Slide 22: Statement
STATEMENT 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 completeness of all or part of this docum
Slide 23: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2016 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag For personal use only Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 10.6 0.6 0.1 1.4 the Australian Securities Exc