Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Non-Deal Roadshow (May 2019)
25 slides from Ramelius Resources's roadshow presentation, May 21, 2019
Slide 1: Investor Presentation – North American Investor Roadshow May 2019
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS INVESTOR PRESENTATION North American Investor Roadshow – May 2019 NORTH AMERICAN INVESTOR ROADSHOW • MAY 2019 1
Slide 2: Forward Looking Statements and Competent Persons Statement
QUALIFICATION For personal use only Forward Looking Statements This presentation contains certain forward looking statements with respect to Ramelius’financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Actual results,
Slide 3: Corporate Summary – Added to the ASX300 in March 2019
CORPORATE SUMMARY – ADDED TO THE ASX300 IN MARCH 2019 Corporate Structure: at 14 May 2019 Share Price Performance Shares on Issue 656M (3M Unlisted Options, 10M Rights) $1.00 40,000,000 For personal use only $0.90 35,000,000 Market Cap US$391M (A$558M @ A$0.85 per share) $0.80 Cash & Gold US$73M (A$
Slide 4: Ramelius – Adding Value via Acquisition and Efficient Mining
RAMELIUS – ADDING VALUE VIA ACQUISITION AND EFFICIENT MINING For personal use only ✓ • Recent acquisitions provide additional mine life and maximise the value of existing infrastructure ✓ • Strategic acquisitions under active consideration – new production centre ✓ • Strong balance sheet and cashflo
Slide 5: Operations Summary
OPERATIONS SUMMARY ▪ Western Australia based gold producer operating from two main For personal use only production centres - Mt Magnet and Edna May ▪ The Mt Magnet production centre comprises: ▪ A number of open pit and underground operations at Mt Magnet itself ▪ Complemented by high grade ore hau
Slide 6: Strategic Acquisitions
STRATEGIC ACQUISITIONS ✓ Edna May acquired in late 2017 for US$26.9M For personal use only (A$38.4M) from Evolution Mining Ltd ✓ Since acquisition: ▪ Produced 137,700 ounces of gold ▪ AISC of US$853/oz (A$1,219/oz) ▪ Generated >US$49M (A$70M) in free cash, 84% ROI ▪ and there is plenty more to come…
Slide 7: Recent Acquisitions
RECENT ACQUISITIONS ✓ For personal use only Tampia Hill and Marda Projects now being integrated – aiming to achieve Ore Reserve position in excess of 1,000,000oz* Tampia Hill Gold Project *Aspirational statement NORTH AMERICAN INVESTOR ROADSHOW • MAY 2019 7
Slide 8: Focus on Mining Excellence and Cost Minimisation
FOCUS ON MINING EXCELLENCE AND COST MINIMISATION ▪ FY2019: For personal use only ▪ Guidance for full year FY2019 remains at 190-210,000oz ▪ AISC forecast remains at US$825-860/oz (A$1,175-1,225/oz) ▪ FY2019 guidance maintained without incorporating any ounces from Greenfinch ▪ Production at Edna May
Slide 9: Focus on Mining Excellence and Cost Minimisation
FOCUS ON MINING EXCELLENCE AND COST MINIMISATION ✓ FY2020 production estimate of 230-250,000oz For personal use only ✓ New Life of Mine Plan to be published in June 19 Quarter Mt Magnet Processing Plant Mt Magnet Milky Way open pit NORTH AMERICAN INVESTOR ROADSHOW • MAY 2019 9
Slide 10: Project Summary
For personal use only PROJECT SUMMARY NORTH AMERICAN INVESTOR ROADSHOW • MAY 2019 10
Slide 11: Mt Magnet – Keeps Delivering New Resources
MT MAGNET – KEEPS DELIVERING NEW RESOURCES ▪ +6Moz gold camp, Ramelius since 2011 For personal use only ▪ Galaxy Mine Area ▪ 4 open pits complete 2011-2017 ▪ Further potential below Titan & Saturn pits ▪ Cosmos Mine Area ▪ Milky Way open pit underway ▪ Stellar open pits underway ▪ Shannon open pit u
Slide 12: Mt Magnet – Shannon Underground & Stellar Open Pit
MT MAGNET – SHANNON UNDERGROUND & STELLAR OPEN PIT For personal use only Shannon open pit floor ▪ Updated Mineral Resource ▪ 770,000 tonnes @ 4.7 g/t Au for 115,000oz ▪ 25% increase on previous ▪ Maiden Underground Ore Reserve ▪ Pit Extension Resource (>0.6g/t Au) ▪ 324,000 tonnes @ 5.2 g/t Au for 5
Slide 13: Mt Magnet – Eridanus Open Pit & Resource Potential
MT MAGNET – ERIDANUS OPEN PIT & RESOURCE POTENTIAL For personal use only “New style discoveries within a gold camp that has been around for over 100 years…” ▪ Fresh open pit, lying between two existing pits ▪ 43m at 4.17 g/t Au from 27m in GXDD0084 (pre-collar) including 12m at 11.6 g/t Au ▪ Maiden
Slide 14: Vivien – High Grade Ore Hauled to Mt Magnet
VIVIEN – HIGH GRADE ORE HAULED TO MT MAGNET, AISC BELOW US$700/oz (A$1,000/oz) ▪ Consistent producer at ~12.5koz per Quarter For personal use only ▪ Produced 105koz project-to-date ▪ On track to return over US$70M (A$100M) in cash: 10 times the initial investment ▪ Mineral Resource ▪ 674,000t @ 5.9
Slide 15: Edna May – Westonia and Holleton Regional Exploration
EDNA MAY – WESTONIA AND HOLLETON REGIONAL EXPLORATION ▪ Greenstone belts appear more extensive than previously mapped For personal use only ▪ Ramelius has consolidated 130km of contiguous strike over Westonia/Holleton greenstone belts since acquiring Edna May ▪ Now extended 50km west to incorporate
Slide 16: Edna May – Underground Development Underway
EDNA MAY – UNDERGROUND DEVELOPMENT UNDERWAY ▪ Low capital cost, high grade production For personal use only ▪ Open at depth – diamond drilling from surface commenced to extend ▪ Initial Ore Reserve ▪ 398,000 tonnes @ 4.8 g/t Au for 61,000 ounces ▪ All intercepts opposite shown are not currently incl
Slide 17: Edna May – Stage & Greenfinch Open Pits
EDNA MAY – STAGE 2 & GREENFINCH OPEN PITS STAGE 2 OPEN PIT For personal use only ▪ Mining completed October 2018 ▪ Plant full using surface stockpiles GREENFINCH OPEN PIT (in green) ▪ Ore Reserve ▪ 1.7Mt @ 1.2 g/t Au for 62,000oz ▪ EPA “not to assess” April 2018 ▪ Mining Proposal approved July 2018
Slide 18: Marda Gold Project – Setting Up for Commencement
MARDA GOLD PROJECT – SETTING UP FOR COMMENCEMENT ▪ Located ~200km north-east from Edna May For personal use only ▪ Fits well with Ramelius’ ore haulage based business model ▪ Infill drilling completed with excellent results including; ▪ 12m at 2.72 g/t Au from 17m in MARC0014 - Goldstream ▪ 30m at 2
Slide 19: Tampia Hill Project (Explaurum Ltd Takeover)
TAMPIA HILL PROJECT (EXPLAURUM LTD TAKEOVER – ASX:EXU) ▪ Acquired via Cash & Scrip Off-Market Takeover Offer for Explaurum For personal use only ▪ Compulsory acquisition notices sent 25th Feb 2019 ▪ Located ~140km by road from Edna May ▪ Ramelius completing Strategic Review of Tampia Hill Project; a
Slide 20: Inexpensive Relative to Peers
INEXPENSIVE RELATIVE TO PEERS ASX-LISTED AUSTRALIAN FOCUSED GOLD PRODUCERS For personal use only $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 EV/Production (A$ per oz) $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 *Based on FY19 guidance *MOY, GCY based on CY19 guidance $500 *SL
Slide 21: Growth Strategy in Action
GROWTH STRATEGY IN ACTION ▪ Established 200koz p.a producer For personal use only ▪ Favourable jurisdiction ▪ Strategic processing assets 1,000 ▪ Strong balance sheet 900 ▪ Added to S&P/ASX-300 800 700 ▪ Excellent management team Thousands (Oz Au) 600 ▪ Proven operating track record 500 Delivering
Slide 22: 2019 Key Focus Areas
2019 KEY FOCUS AREAS For personal use only • US$14M (A$20M) exploration program plus recent acquisitions build on Step Change in Reserve Position 700koz Ore Reserve with a target of 1Moz in sight • Strong focus on value accretive acquisitions Operational Excellence • 21 of last 23 Quarters meeting p
Slide 23: Mineral Resource Statement
MINERAL RESOURCE STATEMENT For detailed information relating to Mineral Resources see ASX Release (RMS) 18 Sept 2018, ‘Resources and Reserves Statement 2018’. For personal use only The Company confirms that it is not aware of any new information or data that materially affects the information includ
Slide 24: Ore Reserve Statement
ORE RESERVE STATEMENT For detailed information relating to Ore For personal use only Reserves see ASX Release (RMS) 18 Sept 2018, ‘Resources and Reserves Statement 2018’. The Company confirms that it is not aware of any new information or data that materially affects the information included in this
Slide 25: Appendix: Peer Data Sources
APPENDIX: PEER DATA SOURCES Peer EV/Production & Guidance Charts - Production guidance data sourced from the following announcements For personal use only Company Release Date Announcement Comment Northern Star Resources 1/05/2019 Investor Presentation - Macquarie Australia Conference Evolution Mini