Regis Resources Limited · ASX:RRL
Regis Resources — Shareholder Meeting (November 2012)
34 slides from Regis Resources's shareholder meeting presentation, Nov 9, 2012
Slide 1: Building a Quality Australian Gold Business
For personal use only BUILDING A QUALITY AUSTRALIAN GOLD BUSINESS ANNUAL GENERAL MEETING 9 NOVEMBER 2012
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT For personal use only This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the
Slide 3: Another Busy Year
ANOTHER BUSY YEAR For personal use only • Moolart Well gold production 105,413 ounces at cash cost of $512/oz • Operating cash-flow $102m • Profit before tax $75m • Completed construction of Garden Well • $113m construction & $35m pre production mining • On time and budget AND all out of operating c
Slide 4: The Year in the Markets
THE YEAR IN THE MARKETS For personal use only 2011 2012 • Gold price (USD) $1,769 $1,719 -3% • Gold price (AUD) $1,744 $1,657 -5% • ASX All Ords 4,406 4,535 +3% • ASX 100 3,543 3,708 +5% • ASX Gold Index 7,378 5,711 -23% • RRL Share Price $3.33 $5.40 +62% • RRL Market Cap $1.45bn $2.44bn +68% 4
Slide 5: Global Gold Production and Cash Costs
GLOBAL GOLD PRODUCTION AND CASH COSTS For personal use only 2002 – 2012 Gold price $380 → $1,600 Production 2,500t → 2,700t Why?? Lack of discoveries Costs of production $200/oz → $800/oz What is real cost? CAPEX explosion
Slide 6: Australian Gold Industry Cost Curve June 2012 Quarter
AUSTRALIAN GOLD INDUSTRY COST CURVE JUNE 2012 QUARTER For personal use only (WITH 1ST, 2ND AND 3RD QUARTILE) $1,030/oz $900/oz $600/oz 6
Slide 7: Capital Costs: RRL In-House Development Advantage
CAPITAL COSTS RRL “IN HOUSE” DEVELOPMENT ADVANTAGE For personal use only REGIS GLOBAL INDUSTRY Regis/ CAPITAL COST CAPITAL COST Industry PROJECT YEAR ($/oz of annual prodn) ($/oz of annual prodn) Moolart Well 2010 670 1,883 36% Garden Well 2011/12 560 2,289 24% Source of industry costs: UBS 8
Slide 8: Purely Australian Gold Miner
PURELY AUSTRALIAN GOLD MINER For personal use only • Projects 100% Regis owned • 9.5Moz of resources1,2 • 2.8Moz of reserves1 • 2 operating mines • 1 development project • 100kozpa ramping to >400koz • Strong growth pipeline • Exclusively in Australia – low political risk Note 1 – full breakdown of
Slide 9: Duketon Project Overview
DUKETON PROJECT OVERVIEW For personal use only • 350km north-north east of Kalgoorlie • 100% Regis owned • 303 granted leases • 1,570 km2 of ground • 7.0Moz of resources1 • 2.8Moz of reserves1 Note 1 – full breakdown of these reserves and resources in accordance with JORC is set out in Appendix 1 &
Slide 10: Ore Reserves
ORE RESERVES1 For personal use only Total Forecast LOM MT g/t Koz Opex Status (A$/oz)2 Garden Well 35.3 1.46 1,660 555 Operating Moolart Well - Laterites 6.8 1.31 285 Operating - Oxide 4.2 1.82 191 Operating MW Total 11.0 1.36 476 550 Erlistoun 2.7 2.36 203 608 Mine plan Rosemont 8.7 1.73 487 628 DF
Slide 11: Gold Production Outlook
GOLD PRODUCTION OUTLOOK For personal use only 500 Thousands Gold Production (ounces) 400 300 200 100 - 2011/12 2012/13 2013/14 2014/15 2015/16 Moolart Well Garden Well Erlistoun - GW displaced tonnes Erlistoun - extra grade Rosemont PROJECT STATUS • Moolart Well – producing • Garden Well – construct
Slide 12: Moolart Well
MOOLART WELL For personal use only • Plant commissioned August 2010 Stage Producing • Sept12 quarter 27,414 oz at A$503/oz1 Mine type Open pit • Mill throughput >25% above design • ≈ 1yr ore supply grade controlled in pit Mineralisation Laterite & oxide • Negligible ongoing capex Plant type Crush, g
Slide 13: Moolart Well Operations
MOOLART WELL OPERATIONS For personal use only 14
Slide 14: Garden Well
GARDEN WELL For personal use only • Virgin discovery by Regis in late 2009 Stage Construction • 30km south of Moolart Well • Capex completed in line with $109m budget Mine type Open pit • Production commenced in Sept 12qtr - 17koz Mineralisation Mixed ultramafic- • Early indications – throughput wil
Slide 15: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 16
Slide 16: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 17
Slide 17: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 18
Slide 18: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 19
Slide 19: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 20
Slide 20: Garden Well Operations
GARDEN WELL OPERATIONS For personal use only 21
Slide 21: Garden Well Resource Extension Drilling
GARDEN WELL RESOURCE EXTENSION DRILLING For personal use only Strong results 520m south of current reserve envelope 22 Resource increase & extension of pit further to south (Mar13 qtr)
Slide 22: Rosemont
ROSEMONT For personal use only • 9 kilometres north west of Garden Well Stage DFS • DFS underway on crush & grind at pit and pump ore slurry to Garden Well . Target: Mine type Open pit Construction Dec12 qtr ≈ A$40m capex Mineralisation Quartz hosted Production Sept13 qtr - 80kozpa stockwork Stron
Slide 23: Regional Exploration
REGIONAL EXPLORATION For personal use only • Targeting areas: • Max 30m of paleochannel cover • No previous effective drilling • Numerous drill targets. • Regional drilling budget • 90,000 metres / $5 million pa Excellent scope for further discovery ► value - 3 mills in district 24
Slide 24: McPhillamys Gold Project
MCPHILLAMYS GOLD PROJECT For personal use only • Acquisition announced 9/8/12 – subject to completion • 250km west of Sydney • 35km from each of Orange & Bathurst • 3 granted leases • 420 km2 of ELs • Project covered by freehold farmland (some to be acquired by Regis) • 2.5Moz of resources 25
Slide 25: Gold Resources
GOLD RESOURCES1 For personal use only Resource Tonnes Gold Ounces Category (millions) Grade (000’s) (g/t) Indicated 41.3 1.27 1,685 Inferred 16.1 1.57 815 Total 57.4 1.36 2,500 Note: 1. full breakdown in accordance with JORC in Appendix 1. Resource quoted at a 0.5g/t lower cutoff. 26
Slide 26: Geology & Resource
GEOLOGY & RESOURCE For personal use only • Resource hosted in dacite rich volcanaclastics • Mineralisation defined to > 600m below surface • Past drilling mainly focussed on defining a bulk underground position – not successful • Less drilling aimed at defining near surface open cut resources – Regi
Slide 27: Metallurgy
METALLURGY For personal use only • Deposit is partially poly-metallic with zones of Cu, Hg and gold tellurides. • Sulphides and tellurides impact gold recovery. • Early stage testwork confirms: • 85% recovery in medium to course grind • High gravity gold – average 36% (P80 of 150µm) • Bond work inde
Slide 28: Infrastructure
INFRASTRUCTURE For personal use only • Close to roads: • Mitchell Hwy 5km & Mid Western Hwy 1.5km • Rail – 8km from intermodal terminal on main east west rail thoroughfare Sydney-Perth • Power – range of transmission lines running through & close to project • Skilled mining labour in Orange and Bath
Slide 29: Target Development Timeline
TARGET DEVELOPMENT TIMELINE For personal use only 2013 2014 2015 2016 2017 Resource drill-out and reserve estimation Pre-feasibility studies & other logistics DFS Construction & development Gold production 30
Slide 30: Target Project
TARGET PROJECT For personal use only • Open pit mining • Carbon in Leach processing (as per Duketon) • Circa 4 million tonnes per annum plant • 140 – 160kozpa gold production over a minimum 10 year mine life • Target capex – Regis norm +/- 15% • Target 2nd quartile cash costs McPhillamys is an excel
Slide 31: The Year Ahead
THE YEAR AHEAD For personal use only • Optimise Garden Well operations • Develop and commence production at Rosemont • Update reserves and resources – Garden Well and Rosemont • Resource drilling and maiden reserve at McPhillamys • Repay bank debt • Commence dividend payment at end of financial year
Slide 32: Appendix: JORC Reserves June 2012
APPENDIX 1 JORC RESERVES 30 JUNE 2012 For personal use only Proven Probable Total Cut-off Project grade gold grade gold grade gold Grade MT MT MT g/t koz g/t koz g/t koz g/t Garden Well 35.3 1.46 1,660 35.3 1.46 1,660 0.60 Moolart Well Laterite 6.1 1.35 263 0.7 0.98 22 6.8 1.31 285 0.50 Oxide, trans
Slide 33: Appendix: JORC Resources June 2012
APPENDIX 2 JORC RESOURCES 30 JUNE 2012 For personal use only Measured Indicated Inferred Total Resources Cut- off Project gold gold gold gold MT g/t MT g/t MT g/t MT g/t Grade koz koz koz koz g/t Moolart Well Laterite 6.4 1.35 279 1.0 0.90 29 0.3 0.88 8 7.7 1.28 316 0.50 Oxide/trans 1.1 1.30 48 15.3
Slide 34: Appendix: Moolart Well Quarterly Operating Stats
APPENDIX 3 MOOLART WELL QUARTERLY OPERATING STATS For personal use only Sept 11 Dec 2011 Mar 12 Jun 12 Sept 12 Quarter Quarter Quarter Quarter Quarter Ore mined 657,919 619,239 598,048 655,101 645,468 (tonnes) Ore milled 636,812 636,058 580,495 636,114 623,864 (tonnes) Grade (g/t) 1.40 1.44 1.28 1.3
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