Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Denver Gold Forum September 2018
29 slides from Ramelius Resources's conference presentation, Sep 25, 2018
Slide 1: Growth Strategy in Action
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS GROWTH STRATEGY IN ACTION DENVER GOLD FORUM • SEPTEMBER 2018 1
Slide 2: Qualification
QUALIFICATION For personal use only Forward Looking Statements Competent Persons Statement This presentation contains certain forward looking The Information in this report that relates to Exploration statements with respect to Ramelius’financial condition, Results, Mineral Resources and Ore Reserve
Slide 3: Ramelius – Growth Strategy in Action
RAMELIUS – GROWTH STRATEGY IN ACTION For personal use only ✓ • Strategy around acquisition of value accretive projects near existing operating mines ✓ • Focus on extension of mine life and maximising value of existing infrastructure ✓ • Strategic acquisitions always under active consideration – new
Slide 4: 1. Production build-up
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up DENVER GOLD FORUM • SEPTEMBER 2018 4
Slide 5: 2. Competitive cost structure
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure DENVER GOLD FORUM • SEPTEMBER 2018 5
Slide 6: 3. Free cash generation
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation DENVER GOLD FORUM • SEPTEMBER 2018 6
Slide 7: 4. Share price appreciation
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation DENVER GOLD FORUM • SEPTEMBER 2018 7
Slide 8: 5. Capital Management
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management DENVER GOLD FORUM • SEPTEMBER 2018 8
Slide 9: 6. Multiple operations
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management 6. Multiple operations DENVER GOLD FORUM • SEPTEMBER 2018 9
Slide 10: 7. Reserve replacement
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management 6. Multiple operations 7. Reserve replacement DENVER GOLD FORUM • SEPTEMBER 2018 10
Slide 11: 8. Strategic acquisitions
GROWTH STRATEGY IN ACTION For personal use only 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management 6. Multiple operations 7. Reserve replacement 8. Strategic acquisitions DENVER GOLD FORUM • SEPTEMBER 2018 11
Slide 12: Corporate Summary
CORPORATE SUMMARY Corporate Structure: at 14 September 2018 Share Price Performance Shares on Issue 528.5M $0.70 10,000,000 For personal use only Market Cap A$238M @ $0.45 per share 9,000,000 $0.60 8,000,000 Cash & Gold A$95.5M at 30 June 2018 $0.50 7,000,000 Debt Nil 6,000,000 $0.40 Enterprise Valu
Slide 13: Operations – Overall Production Up 66% in FY2018
OPERATIONS – OVERALL PRODUCTION UP 66% IN FY2018 ▪ Production Guidance met 18 of last 20 Quarters For personal use only ▪ FY2018; ▪ Record group production of 208,118oz ▪ AISC of A$1,191/oz DENVER GOLD FORUM • SEPTEMBER 2018 13
Slide 14: Operations – Backing Up Again in FY2019 with 200-220,000oz
OPERATIONS – BACKING UP AGAIN IN FY2019 WITH 200-220,000OZ ▪ FY2019; For personal use only ▪ Record group production forecast of 200-220,000oz ▪ AISC of A$1,150-1,250/oz DENVER GOLD FORUM • SEPTEMBER 2018 14
Slide 15: Significant Resource and Reserve Increases
SIGNIFICANT RESOURCE AND RESERVE INCREASES For personal use only ▪ Exploration success and acquisition of Edna May has increased both Resources and Reserves ▪ 36% increase (after mining depletion) in Mineral Resources Reserve Inventory Change ▪ Total Mineral Resources of 70.5Mt @ 1.5g/t Au for 3,476
Slide 16: Takeover Offer - Explaurum's Tampia Hill Project
TAKEOVER OFFER - EXPLAURUM’S TAMPIA HILL PROJECT For personal use only • On 10 September 2018 Ramelius Resources announced an Off-market takeover offer for Explaurum Structure Limited (ASX: EXU) • 1 (one) Ramelius share for every 4 (four) Explaurum shares • Values Explaurum at A$0.123 per share1 or
Slide 17: Takeover Offer - Explaurum's Tampia Hill Project
TAKEOVER OFFER - EXPLAURUM’S TAMPIA HILL PROJECT ▪ Ramelius can utilise in-house expertise and capacity to fast track development of Tampia Hill For personal use only ▪ Strategically located ~130km by road from Edna May, 240km east of Perth ▪ 675koz Resources (11.7Mt at 1.79 g/t Au)¹ ▪ 485koz Reserv
Slide 18: Takeover Offer - Explaurum's Tampia Hill Project
TAKEOVER OFFER - EXPLAURUM’S TAMPIA HILL PROJECT For personal use only ▪ Tampia adds potentially 5 years mine life from Ramelius: 4 Year Production History & FY19 Forecast 2020 Financial Year onwards ▪ Strategic Review to be carried out to deliver best development option including potential use of E
Slide 19: Acquisition - Marda Gold Project
ACQUISITION - MARDA GOLD PROJECT For personal use only ▪ Signed Binding Agreement* to purchase the Marda Gold Project ▪ Strong synergies in utilising Edna May mill to process ore from Marda ▪ Further reinforces Ramelius’ capability to execute Growth Strategy through strategic acquisitions ▪ Enhances
Slide 20: Edna May – Stage & Greenfinch Open Pits
EDNA MAY – STAGE 2 & GREENFINCH OPEN PITS STAGE 2 OPEN PIT For personal use only ▪ Complete mid October 2018 GREENFINCH OPEN PIT (in blue) ▪ Approvals processes ongoing ▪ Working through both Federal and State processes ▪ Ore Reserve ▪ 1.7Mt @ 1.2 g/t Au for 62,000oz ▪ 88% increase on previous Ore R
Slide 21: Edna May – Underground Development Decision
EDNA MAY – UNDERGROUND DEVELOPMENT DECISION ▪ Low capital cost, high grade production at Edna May to sit For personal use only alongside potential future developments from Marda & Tampia Hill ▪ Decision based on prudent assessment of mining economics, capital costs and production scheduling options
Slide 22: Mt Magnet – New Resources & Reserves Announced
MT MAGNET – NEW RESOURCES & RESERVES ANNOUNCED ▪ +6Moz gold camp, RMS since 2011 For personal use only ▪ Galaxy Mine Area ▪ 4 open pits complete 2011-2017 ▪ Drilling below Titan open pit ▪ Cosmos Mine Area ▪ Milky Way open pit underway ▪ Stellar open pits underway ▪ Shannon open pit underway ▪ Erida
Slide 23: Mt Magnet – Maiden Shannon Underground Ore Reserve
MT MAGNET – MAIDEN SHANNON UNDERGROUND ORE RESERVE ▪ Updated Mineral Resource For personal use only ▪ Indicated 480,000 tonnes @ 5.0 g/t Au for 77,000oz ▪ Inferred 290,000 tonnes @ 4.2 g/t Au for 39,000oz ▪ Total 770,000 tonnes @ 4.7 g/t Au for 115,000oz ▪ 25% increase on previous ▪ Maiden Undergrou
Slide 24: Mt Magnet – Eridanus Maiden Open Pit Ore Reserve
MT MAGNET – ERIDANUS MAIDEN OPEN PIT ORE RESERVE Exploring for large, low strip ratio porphyry hosted deposits in the Boogardie Basin For personal use only ▪ Maiden Mineral Resource ▪ Indicated 2,840,000 tonnes @ 1.3 g/t Au for 123,000oz ▪ Inferred 690,000 tonnes @ 1.1 g/t Au for 23,000oz ▪ Total 3,
Slide 25: Vivien – Excellent Performer, AISC Below A$1,000/oz
VIVIEN – EXCELLENT PERFORMER, AISC BELOW A$1,000/OZ ▪ Consistent producer at 12.5koz per Qtr For personal use only ▪ ~4,000m of deeper diamond drilling completed in 2017 ▪ Best results included; ▪ 5.6m @ 5.20g/t Au from 330.4 in VVDD1064 ▪ 10.3m @ 9.20g/t Au from 290.7m in VVDD1067 ▪ 30 June 2018 Or
Slide 26: Significantly Undervalued Gold Producer
SIGNIFICANTLY UNDERVALUED GOLD PRODUCER For personal use only *Based on FY19 guidance *MOY production based on CY19 guidance *GCY based on target rate *EV data taken as at 31-07-2018 DENVER GOLD FORUM • SEPTEMBER 2018 26
Slide 27: Delivering on Growth
GROWTH STRATEGY IN ACTION ▪ Australia’s 7th largest domestic producer For personal use only ▪ Favourable jurisdiction ▪ Strategic processing assets ▪ Strong balance sheet ▪ Excellent management team ▪ Proven operating track record Delivering on growth! DENVER GOLD FORUM • SEPTEMBER 2018 27
Slide 28: Mineral Resource Statement
MINERAL RESOURCE STATEMENT MINERAL RESOURCES AS AT 30 JUNE 2018 - INCLUSIVE OF RESERVES For detailed information relating to Mineral Project Deposit Resources see ASX Release (RMS) 18 Sept 2018, Measured Indicated Inferred Total Resource Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au ‘Resources
Slide 29: Ore Reserve Statement
ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 JUNE 2018 For detailed information relating to Ore For personal use only Reserves see ASX Release (RMS) 18 Sept Proven Probable Total Reserve 2018, ‘Resources and Reserves Statement Project Mine Tonnes Au Au Tonnes Au Au Tonnes Au Au 2018’. kt g/t
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