Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (April 2023)
38 slides from Hillgrove Resources's shareholder meeting presentation, Apr 28, 2023
Slide 1: AGM 2023
AGM 2023 For personal use only Lachlan Wallace CEO & Managing Director 28 April 2023 1
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Company Overview Investment Highlights • ASX listed (‘HGO’) Australian resources company that owns and ✓ Advanced, fully permitted and funded project with key operates the Kanmantoo Copper Gold Mine in South Australia infrastructure in place for a <$30M capex
Slide 3: Last 12 Months in Review
LAST 12 MONTHS IN REVIEW For personal use only ■ UPDATED MINERAL RESOURCE ESTIMATE ■ ADDED 1.3Mt TO RESOURCE BASE – 21% INCREASE ■ 5.2Mt NOW CLASSIFIED AS MEASURED OR INDICATED (UP FROM 3.7Mt) ■ UPDATED ECONOMIC ASSESSMENT ■ EXTENDED MINE LIFE ■ >$200M FREE CASH GENERATION (POST TAX), CAPEX $25M, NP
Slide 4: Kanmantoo Underground
KANMANTOO UNDERGROUND For personal use only 4
Slide 5: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Tier 1 location ✓ Ready workforce - No FIFO ✓ Close to Port Adelaide 5
Slide 6: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Surplus annual native seed production ✓ Linking rehab to regional vegetation to create greenbelt ✓ 122ha native vegetation completed 6
Slide 7: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Genuine win-win community engagement ✓ Community and government support ✓ ESG reporting to GRI, UNSDG, ICMM 7 Kanmantoo Callington Community Consultative Committee (K4C) receiving award from Premier Steven Marshall for Community Excellen
Slide 8: Plant and Infrastructure Already in Place
PLANT AND INFRASTRUCTURE ALREADY IN PLACE For personal use only ✓ 3.6Mtpa processing plant ✓ All critical spares ✓ Maintained for quick, low-cost restart 8
Slide 9: Tailings Storage Facility Already in Place
TAILINGS STORAGE FACILITY ALREADY IN PLACE For personal use only ✓ Tailings storage with approved capacity of >7Mt, well above current mine plan of 4.5Mt ✓ Further low-cost capacity available to accommodate growing mine plan ✓ All services connected (power, water). Long term power contract provides
Slide 10: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Nugent Portal Development decline and Ventilation drive underground drill platform 10
Slide 11: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Underground decline commenced 11
Slide 12: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only ✓ Decline and ventilation drive commenced ✓ Infrastructure at portal in place ✓ First copper intersected only 13m from portal! 12
Slide 13: Excellent Economics – Stage Only
EXCELLENT ECONOMICS – STAGE 1 ONLY For personal use only ✓ Low capital - existing infrastructure and close proximity of lodes ✓ Low AISC - excellent geotechnical conditions and multiple headings enable efficient mining ✓ Nugent 2022 drilling increased the MRE increased by 6kt Cu metal which is not i
Slide 14: Fully Funded
FULLY FUNDED For personal use only ■ DEBT FREE ■ NO DEBT REPAYMENTS PROVIDES OPERATIONAL FLEXIBILITY ■ REDUCES CONVENANTS – BRINGING FORWARD DIVIDENDS ■ FUNDING PROVIDES DEVELOPMENT CONTINGENCY & FACILITATES GROWTH ■ FULLY FUNDED ■ CASH $18M ■ AGM $8M ■ FIRB $12M ■ HEDGING ■ 16,000 t ■ ~50% OF FIRST
Slide 15: Significant Leverage to the Copper Price
SIGNIFICANT LEVERAGE TO THE COPPER PRICE For personal use only ✓ Stopes terminate in lower grade halo around high grade mineralised core. ✓ As price increases, the cut-off grade reduces, enabling additional copper mineralization to be mined for low incremental cost by simply widening stope width. ✓
Slide 16: Development on Track
DEVELOPMENT ON TRACK For personal use only 16
Slide 17: Early Works Underway
EARLY WORKS UNDERWAY For personal use only Installing drape mesh over pit walls 17
Slide 18: Early Works Underway
EARLY WORKS UNDERWAY Access road upgraded For personal use only Unloading dewatering pipe 18
Slide 19: Early Works Underway
EARLY WORKS UNDERWAY For personal use only 100 person mining change house & laundry being dismantled in preparation for transport to Kanmantoo 19
Slide 20: Early Works Underway
EARLY WORKS UNDERWAY For personal use only Primary ventilation substation Ventilation fans Fitting out explosives vehicles 20
Slide 21: Mill Refurbishment
MILL REFURBISHMENT For personal use only Hydro scaling 21
Slide 22: Exploration Growth
For personal use only EXPLORATION GROWTH 22
Slide 23: Mine Expansion Drilling Underway
MINE EXPANSION DRILLING UNDERWAY For personal use only 23
Slide 24: >100% Exploration Strike Rate = Resource Growth
> 100% EXPLORATION STRIKE RATE = RESOURCE GROWTH For personal use only ✓ 143 Cu-Au intersections of economic grade and width from only 122 holes: over 100%! ✓ Mine plan does not include 6kt added to Nugent MRE in 2022 and recent drilling results in Spitfire, North Hub and South Hub ✓ Every drill pro
Slide 25: Exploration Target
EXPLORATION TARGET For personal use only Exploration Target – on-lease 10 – 20 Mt 0.9 – 1.3% Cu 0.1 – 0.3 g/t Au The Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determina
Slide 26: Kanmantoo Deeps
KANMANTOO DEEPS For personal use only Main Kavanagh Zone AMT/MT surveys identified 1.2km zone of high conductivity Coincident with: ✓ Magnetic anomaly ✓ Strong gravity anomaly Zone of interest starts at 1300m below surface Kanmantoo Deeps 26
Slide 27: Utilising Mill Capacity to Grow Annual Production
UTILISING MILL CAPACITY TO GROW ANNUAL PRODUCTION For personal use only North Hub South Hub Kavanagh Nugent ✓ Conceptual designs indicate North Hub and South Hub can be added to the plan for low incremental cost (pending successful confirmatory drilling) ✓ Mill only 40% utilised and plenty of TSF ca
Slide 28: News Flow
Strong news flow as we NEWS FLOW transition to producer For personal use only Indicative timetable(1) ✓ Q1-23 UPDATED MINE PLAN ✓ Q1-23 COMMENCE EARLY WORKS & MINE EXTENSION DRILLING ■ Q2-23 CONCLUDE FUNDING (AGM & FIRB) ■ Q2-23 FID & COMMENCE UNDERGROUND DEVELOPMENT ■ Q3-23 CONTINUED MINE LIFE EXPA
Slide 29: Summary
SUMMARY For personal use only ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ STAGE 1 ALREADY HAS STRONG ECONOMICS WITH SHORT PAYBACK PERIOD ■ HIGHLY LEVERAGED TO COPPER PRICE INCREASES AND RESOURCE GROWTH ■ MULTIPLE ON-LEASE INFILL DRILLING TARGETS TO FURTHER INCREA
Slide 30: Questions?
For personal use only QUESTIONS? 30
Slide 31: Appendix
For personal use only Appendix 31
Slide 32: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Summary information This presentation contains summary information about Hillgrove Resources Limited (Hillgrove or the Company) and its activities as at 27 February 2023. The information in this presentation is of a general nature and does not purport to be complete nor
Slide 33: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Future performance continued The forward looking statements are subject to risks, stakeholder engagement, uncertainties and assumptions which could cause actual results, timing, or events to differ materially from the expectations described in such forward-looking state
Slide 34: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Mineral Resources and Ore Reserves Estimates continued There is a lower level of geological and grade continuity confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the conversion of Inferred Resource esti
Slide 35: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Competent Persons Statement The information in this report that relates to the Exploration and Drilling Results on the Kanmantoo project were initially reported by the Company to ASX on 26 May 2016, 10 October 2019, 3 September 2020, 3 May 2021, 6 May 2021, 24 June 2021
Slide 36: Investment Risks
INVESTMENT RISKS Potential investors should be aware that there are risks associated with investing in Hillgrove. Certain risks are beyond the control of Hillgrove and its Directors and Management and may have a material impact on Hillgrove's future operating and financial performance, and/or the fi
Slide 37: Investment Risks
INVESTMENT RISKS • The future success of the Company depends, to a significant extent, upon the continued services of the members of the management Key person team of the Company. There can be no assurance that the Company will be able to retain or hire all personnel necessary for the dependence dev
Slide 38: References
REFERENCES All exploration drill results, exploration information and Mineral Resource Estimates have previously been reported to the ASX by Competent Person at the time. The results reported herein are reported in the form and context of the original ASX releases. Refer http://www.hillgroveresource
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