Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers Mining Forum 2017
32 slides from Regis Resources's conference presentation, Aug 9, 2017
Slide 1: Regis Resources Ltd – Diggers & Dealers Mining Forum August 2017
For personal use only 1 1 REGIS RESOURCES LTD DIGGERS & DEALERS MINING FORUM AUGUST 2017
Slide 2: Disclaimer & Competent Persons Statement
DISCLAIMER & COMPETENT PERSONS 22 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
Slide 3: Corporate
3 CORPORATE 3 For personal use only CAPITAL STRUCTURE Shares on issue 501m Last price A$3.91 Market capitalisation A$1,959m Daily turnover (no. shares) 5.4m Unlisted options 10m OPERATIONS SNAPSHOT Duketon operations (WA) 10Mtpa for 350kozpa McPhillamys project (NSW) 2.2Moz resource SHARE PRICE & VO
Slide 4: Review of FY2017 Operations
REVIEW OF FY2017 OPERATIONS For personal use only 4 4 DUKETON CONTINUES TO DELIVER STRONG CASHFLOW FY17 FY16 OPERATIONS Ore mined (Mbcm) 4.6 4.6 Q4 gold production 90,428 ounces Run rate above FY16 and FY17 guidance of 300-330koz Waste mined (Mbcm) 25.6 22.6 FY17 production 324,353 oz at top e
Slide 5: Duketon Gold Project – Reminder of History
DUKETON GOLD PROJECT For personal use only 5 5 REMINDER OF HISTORY New management in 2009 First plant built 2010 – 2mtpa name plate First production in 2011 – 100kozpa Now 10 million tonnes pa operation – Australia’s 5th largest gold processing project Now producing 335 – 365kozpa
Slide 6: Three Crucial Goals of Any Mining Business
DUKETON GOLD PROJECT For personal use only 6 6 THREE CRUCIAL GOALS OF ANY MINING BUSINESS Increase production Maintain or improve operating margin Replenish or increase reserves
Slide 7: Growing Production
DUKETON GOLD PROJECT For personal use only 7 7 GROWING PRODUCTION 400 360 365 2018 Ounces (000’s) GUIDANCE 335 320 280 324 305 240 200 2016 2017 2018
Slide 8: Maintaining or Expanding Margin
DUKETON GOLD PROJECT For personal use only 8 8 MAINTAINING OR EXPANDING MARGIN 2,000 1,800 1,600 1,400 A$ per ounce 1,200 1,000 800 600 400 200 0 1-Jul-15 1-Oct-15 1-Jan-16 1-Apr-16 1-Jul-16 1-Oct-16 1-Jan-17 1-Apr-17 GP Delivered price AISC Operating Margin Linear (Operating Margin)
Slide 9: Growing Reserves
DUKETON GOLD PROJECT For personal use only 9 9 GROWING RESERVES DUKETON GOLD RESERVES 2009 - 2017 2,100 3.4Moz 2.2Moz 1,600 RESERVES OUNCES (000’s) 1,100 0.6Moz 1.9Moz 600 100 2009 reserve Mining depletion Discovery Current reserves -400 -900 -1,400
Slide 10: Cashflow Waterfall
10 CASHFLOW WATERFALL 10 For personal use only Strong cash-flow from ops $256m (FY16: $233m) - cash build $29m after paying $80m dividends Robust balance sheet with $152m of cash and no debt
Slide 11: Dividends
11 DIVIDENDS 11 For personal use only Earnings1 & Dividend Per Share 25 22.4 20 17.4 Cents per Share 15 13 12.2 11.0 10 7 6 5 0 0 FY2014 FY2015 FY2016 FY2017 (H1) EPS Dividend per Share Fully franked interim dividend of 7cps ($35.1m) paid in Q3 Payout ratio 14% of revenue and 57% of NPAT C3.5% d
Slide 12: Operations Outlook – FY2018 Guidance
12 OPERATIONS OUTLOOK 12 FY2018 GUIDANCE For personal use only Gold production 335,000 – 365,000 ounces Cash costs $770 – $840 per ounce AISC $940 – $1,010 per ounce Growth Capex: $23m Majority of growth capital related to pre production mining of Baneygo and Tooheys Well satellite operati
Slide 13: Satellite Operations
SATELLITE OPERATIONS FAMOUS BLUE GEOLOGY 13 13 COMMENCED IN FY17 For personal use only GLOSTER 26km west of Moolart Well Mining commenced Q1, milling Q2 Processed 536kt ore at 1.32g/t in Q4 Processed 1.13mt ore at 1.29g/t YTD Adds 3+ years of mill feed to MW Grade increases production &
Slide 14: Exploration Update – Duketon
14 EXPLORATION UPDATE 14 For personal use only DUKETON – CONTINUING TO DELIVER Completed 167,000m of drilling in FY17 Tooheys Well – 2.5km S of Garden Well Drilling culminates in 366koz Reserve Rosemont Underground Numerous +20gm intercepts over 500m strike Intercepts outside current reser
Slide 15: Tooheys Well Gold Project
TOOHEYS WELL GOLD PROJECT For personal use only 15 15 MAIDEN RESERVE REPLACES REGIS FY17 PRODUCTION Located only 2.5km south of GW Gold shear zones hosted by chert, shale and BIF Extensive drill-out in 2015 and 16 culminated in maiden resource July 16 Maiden Reserve quoted June 17: Tonnes Gr
Slide 16: Rosemont South & Main Underground Opportunities
ROSEMONT SOUTH & MAIN 16 16 UNDERGROUND OPPORTUNITIES For personal use only 3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2 Phase 1 drill programmes underway at Rosemont South and below Rosemont Main Pit: Returning numerous high grade intercepts Dril
Slide 17: Rosemont Main Pit Underground Project
ROSEMONT MAIN PIT 17 17 UNDERGROUND PROJECT For personal use only POTENTIAL FOR UNDERGROUND MINING INVENTORY EXTENSION Testing high grade shoots 100-200m vertically below ultimate open pit design depth Holes drilled to date are encouraging for underground opportunities 44 holes for 10,993m of
Slide 18: Rosemont Main Pit Underground – Drill Results in Q4
ROSEMONT MAIN PIT 1818 UNDERGROUND PROJECT DRILL RESULTS IN Q4 For personal use only Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit Gold mineralised quartz-dolerite unit is approx 80m wide. Q4 Results (all outside reserves): 10m @ 43.84g/t Au from 200m 7m @ 33.86g
Slide 19: Russells to Reichelts Gold Trend
RUSSELLS TO REICHELTS 19 19 GOLD TREND For personal use only Garden Well Processing Plant Old Peculiar Gold mineralised shear zone poorly tested along strike Russell’s Find 55koz Au Resource • Aircore drill testing on 400m spaced traverses along the mineralised Reichelts Find shear zone 17koz Au Res
Slide 20: Reichelts Find
REICHELTS FIND For personal use only 20 20 Historic open pit mined in 1980’s 12km south of Garden Well, 9,000m RC in Q4: Very little drilling (12 holes) > 130m over 1.4km strike 25m @ 2.85g/t from 86m Historic results include: 22m @ 2.70g/t from 61m 21m @ 8.1g/t from 147m 7m @ 5.66g/t f
Slide 21: Drill Outs Complete So Focus Returns to Regional Exploration
DRILL OUTS COMPLETE SO FOCUS 21 21 RETURNS TO REGIONAL EXPLORATION For personal use only NEXT 6 SIGNIFICANT SCALE REGIONAL TARGETS Post successful delivery of Maiden Reserve at Tooheys Well, focus has returned to generating next suite of regional exploration targets. 6 new regional targets gener
Slide 22: Regional Targets
REGIONAL TARGETS For personal use only 22 22 2km 2,000m 2.5km 8,000m Camel Hump Mt Varden strike Aircore strike Aircore
Slide 23: Regional Targets
REGIONAL TARGETS For personal use only 23 23 Corktree North 1km 3,000m 2km 5,000m strike Cuthbert Bore Aircore strike Aircore
Slide 24: Regional Targets
REGIONAL TARGETS For personal use only 24 24 2km 5,000m 2.5km 4,000m Steer Creek Speights strike Aircore strike Aircore
Slide 25: McPhillamys (NSW)
25 McPHILLAMYS (NSW) 25 For personal use only Located in Central-West NSW Well established gold mining district Cadia, Cowal, Northparkes +45Moz* Gold resource 2.2Moz One of Australia’s larger undeveloped and real open pit opportunities 100% Regis owned Excellent organic growth option
Slide 26: McPhillamys – Process Water Options
26 McPHILLAMYS (NSW) 26 PROCESS WATER OPTIONS For personal use only Option 1 – Water Supply from Mt Piper Power Station and Springvale Mine Non-binding heads of agreement for supply & offtake of 4-5GLpa of water for a 7Mtpa processing facility Water available from middle of 2019 with a 10 year s
Slide 27: McPhillamys – Process Water Options
27 McPHILLAMYS (NSW) 27 PROCESS WATER OPTIONS For personal use only Option 2 – Groundwater Access Licenses Contractually secured 4.5GLpa of Water Access Licenses over ground water approx. 80km from McPhillamys Represents a viable and secured alternative source of water supply sufficient for 7mtp
Slide 28: McPhillamys – Infill Drilling Completed
28 McPHILLAMYS (NSW) 28 For personal use only Infill Drilling Completed 44,000m of drilling over the last 9 months Reduced drill pattern to 50x25m (nominal) 66 holes (19,107m) drilled in Q4. Significant Q4 results: 211m @ 1.85g/t Au from 221m 189m @ 1.61g/t Au from 205m 115m @ 2.57g/t
Slide 29: Expanding McPhillamys Resources and Footprint
29 McPHILLAMYS (NSW) 29 For personal use only EXPANDING MCPHILLAMYS RESOURCES AND FOOTPRINT Completed acquisition of Blayney Gold Project for A$3.25m Tenement lies contiguous to the McPhillamys project licence and hosts two quoted Mineral Resource Estimates*: • Discovery Ridge: 13.84Mt at 1.1g/t
Slide 30: Recap of Presentation
RECAP OF PRESENTATION For personal use only 3030 Q4 gold production 90,428 ounces at AISC of A$870/oz FY17 gold production 324,353 ounces at AISC of A$945/oz FY17 production at top of guidance FY17 AISC below bottom of guidance FY18 guidance increased to 335 – 365koz at AISC of $940 – $1,0
Slide 31: JORC Compliant Ore Reserve Estimates March 2017
APPENDIX 1 JORC COMPLIANT 31 31 ORE RESERVE ESTIMATES 31 MARCH 2017 For personal use only Group Ore Reserves as at 31 March 2017 Gold Proved Probable Total Ore Reserve Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type 2 Person3 (g/t
Slide 32: JORC Compliant Mineral Resources March 2017
APPENDIX 2 32 32 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2017 For personal use only Group Mineral Resources as at 31 March 2017 Gold Measured Indicated Inferred Total Resource Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade
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