Geopacific Resources Limited · ASX:GPR
Geopacific Resources — Investor Presentation (December 2020)
42 slides from Geopacific Resources's investor presentation, Dec 14, 2020
Slide 1: Capital Raising Presentation
Capital Raising Presentation For personal use only 1.6Moz* Woodlark Gold Project * For Mineral Resource refer to slide 32 and the PFS announcement released on 12 March 2018 1
Slide 2: Disclaimer
Disclaimer For personal use only This investor presentation has been produced by Geopacific Resources Limited ACN 003 208 383 (Company) only in relation to a Joint Lead Manager Disclaimer placement of new fully paid ordinary shares in the Company (New Shares) to sophisticated and professional invest
Slide 3: Equity raising overview
Equity raising overview For personal use only Overview Detail Offer structure • A$140 million two tranche placement (Placement) • A$18.4 million tranche one1 and $121.6 million tranche two2 • Tranche two is subject to shareholder approval • The Placement is not underwritten Offer price A$0.42 per sh
Slide 4: Sources and use of funds
Sources and use of funds For personal use only • The funds raised from the Placement will be used under the use of funds towards the development of the Woodlark Gold Project as outlined in the table below. • The sources and uses of funds outlined below are forecast to take the Company to a positive
Slide 5: Indicative timetable
Indicative timetable For personal use only Event Indicative Timing SPP record date 7:00pm (WST), 11 December 2020 Placement and SPP announcement 14 December 2020 Settlement tranche one Placement 18 December 2020 Allotment tranche one Placement 21 December 2020 SPP Open date 11 January 2021 General M
Slide 6: Investment highlights
Investment highlights For personal use only +1Moz Ore Project Execution Update released November 2020 Reserve with highlights compelling project metrics 1 untapped exploration Preparation of the site for potential construction underway Early Works High margin Program in gold progress opportunity Rob
Slide 7: Company snapshot
Company snapshot (ASX: GPR) For personal use only Capital Structure Share Prices $A Commencement of Closing share Price ($A) Market capitalisation (before Placement)1 A$73.5M $0.80 Non Executive Director $0.70 Sir Charles Lepani $0.60 Market capitalisation (post Placement)1,2,3 A$213.5M $0.50 $0.40
Slide 8: Project surrounded by world class assets
Project surrounded by world class assets For personal use only Proven mining investment jurisdiction with long mining history Many world-class gold mines nearby Many profitable gold operations on Islands Newcrest, Lihir at 66Moz Au St Barbara, Simberi at 6Moz Au PNG large gold producer with 2.6Moz*
Slide 9: Papua New Guinea (PNG)
Papua New Guinea (PNG) For personal use only Key Facts Christian Democratic Nation APEC Member Resource focused economy Corporate income tax rate of 30% PNG hosts 2018 APEC Economic Leaders Meeting Established mining industry and hosts numerous world class gold mines Royalty of 2.0% and 0.5% levy to
Slide 10: The Board
The Board For personal use only Experienced Board with considerable public and private sector experience in Papua New Guinea • 35 years’ experience in international banking specialising in emerging markets Ian Clyne • Strong believer in PNG and has demonstrated a high level of commitment to social &
Slide 11: The Management Team
The Management Team For personal use only New CEO Tim Richards brings extensive operational experience in Papua New Guinea • Mining Engineer with over 20 years’ experience in open pit mining from scoping and feasibility studies, site technical services, operations and mine management Tim Richards •
Slide 12: Recent work program
Recent work program For personal use only Board and Management Team with a proven track record of achieving key project outcomes • Successful A$40M placement in Q4 2019, strong shareholder base with capacity to support development $40M Raise Corporate • Restructure of Board and Management team with
Slide 13: Woodlark Gold Project Execution Update
Woodlark Gold Project Execution Update* For personal use only Robust Project • Project Execution Update confirms improved economics Metrics • Post-tax NPV8 increases 76% to A$347M (US$253M), IRR of NPV A$347M 34% at a gold price of A$2,200/oz • Forecast average AISC of A$1,239/oz (US$904/oz) over AI
Slide 14: Robust mine plan
Robust mine plan* For personal use only Forecast to deliver strong upfront cashflow, robust margins and rapid project payback Simple Open • 157Mt from 3 deposits over Pit Mining 10 years Outcropping • Wide zones of near surface Deposits mineralisation Untapped • 3 phase exploration strategy Explorat
Slide 15: Robust production profile
Robust production profile* For personal use only Forecast to deliver strong upfront cashflow, robust margins and rapid project payback Conventional • Industry proven Processing 2.4Mtpa carbon in leach Route (CIL) gold process plant • +1Moz Ore Reserve 13 Year Initial provides 13 years of Project Lif
Slide 16: Key information – physicals
Key information – physicals* For personal use only OPERATIONAL PHYSICALS Unit Life of Mine +1Moz Reserve Strip Ratio (x) 4.1 Total Material Mined (kt) 156,694 Ore Mined (kt) 30,848 Grade Mined (g/t Au) 1.11 Contained Gold (koz Au) 1,099 Ore Processed (kt) 30,848 Untapped Grade (g/t Au) 1.11 Explorat
Slide 17: Key information – financial
Key information – financial* For personal use only CASHFLOW * US$ A$ Rapid 1.8 Year Cashflow from Operations (i nc pre-s tri p) Mi l l i on (M) 727 995 Less: Capital Expenditure (excl pre-s tri p) Mi l l i on (M) (196) (269) Project Payback Free Cashflow (Pre-tax) Mi l l i on (M) 530 727 Period Less
Slide 18: Establishment capital
Establishment capital For personal use only The establishment capital cost estimate was comprehensively updated to reflect the revised execution approach and to account for revisions to contracting structures and increased execution preparedness Description Estimate1 A$M Process Plant 106.4 DSTP Sys
Slide 19: Simple mining and processing route
Simple mining and processing route For personal use only Straight forward mining and processing route translates to low operating costs Managing Director Managing Director Mining Processing • Non-Executive Director open pit mining methods Conventional • CIL gold process plant • Multi staged pits all
Slide 20: Project financing – status
Project financing – status For personal use only Preferred financier selected and term sheets executed with Sprott Private Resource Lending II L.P. (Sprott Resource Lending) for a1: • US$85 million Project Finance Facility (the "Project Finance Facility"); and • US$15 million Callable Gold Stream (t
Slide 21: Project financing – key terms
Project financing – key terms For personal use only US$85M Project Finance Facility US$15M Callable Gold Stream Key Term Description Key Term Description Facility Amount US$85 million. US$15 million as a prepayment for 3.3750% of the gold production, until 30,000 ounces of gold have been delivered.
Slide 22: Cost effective and reliable logistics
Cost effective and reliable logistics For personal use only Proven and cost effective logistical solution currently services the project’s Civil Works Program Barge loading at Lae Barge arriving on Woodlark Island The transport of equipment and supplies to site via barge is cost The existing wharf a
Slide 23: Project execution
Project execution For personal use only Contractor HBS currently on site executing Civil Works Program Civil Works Road upgrades, repairs and construction along with refurbishment of the existing exploration camp Program Clearing, levelling and compaction of community relocation areas Site c
Slide 24: Key permits and licenses granted
Key permits and licenses granted For personal use only PNG is a resource focused country with an advanced legislative framework governing mining activity • ML 508 was issued to Woodlark Mining Limited in 2014 and is valid for a period of 20 years. • As previously announced, an application has been s
Slide 25: Stakeholder engagement
Stakeholder engagement For personal use only The Company is committed to ensure that economic benefits of the project flow to the people of Woodlark Island and the broader Milne Bay region. We are focussed on appropriately managing the environmental and social impacts of the Woodlark Gold Project. •
Slide 26: Communities relocation
Communities relocation For personal use only Government and Community approval with Memorandum of Understanding and Relocation Agreement signed Communities Relocation Program • Over 200 houses • 2 Churches • Medical Facilities • 12 Trade Stores • 5 Double Classrooms 3 Bedroom Deluxe House All new ho
Slide 27: Community and social responsibility
Community and social responsibility For personal use only Partnering with the local Commitment to provide Commitment to hiring and community positive & lasting benefits upskilling the local workforce • Excellent relationship with local • Construction of churches, • Woodlark Gold Project already comm
Slide 28: Woodlark Island exploration setting
Woodlark Island exploration setting For personal use only • At ~1.6Moz*, Woodlark Mineral Resources are anomalously small compared to regional analogues (e.g. Simberi 6Moz, Misima 5Moz) • <20% of tenure comprises outcropping host lithologies • All drill-defined resources remain open and continue und
Slide 29: Exploration program
Exploration program For personal use only Exploration Program currently being developed with objective of growing the resource base Phase 1: Near surface mineralisation • Potential to gain additional in-pit ounces and reduce strip ratio • Large regional gold field covering highlight prospective volc
Slide 30: Exploration program (continued)
Exploration program (continued) For personal use only Exploration Program currently being developed with objective of growing the resource base Phase 2: Deeper mineralisation, define economic pit limits Phase 3: Testing of high potential targets on Exploration Licenses Measured Indicated Inferred 30
Slide 31: Path to production
Path to production For personal use only Realistic project timeline* underpinned by detailed Integrated Project Management Schedule prepared by planning specialist • Final project funding scheduled for completion by end of Q1 2021 Project Financing • Commencement of construction of plant and infrast
Slide 32: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves For personal use only Mineral Resources Ore Reserves Category Tonnes Grade Category Ounces Tonnes Grade Ounces Total by deposit (>0.4g/t lower (>0.4g/t lower cut) (Mt) (g/t Au) (Koz) (Mt) (g/t Au) (oz) cut) Proven 9.3 1.03 307,300 Measured 21.24 1.10 754 Busai Prob
Slide 33: Non-core projects
Non-core projects For personal use only Geopacific is focussed on delivering the Woodlark Gold Project into production to generate the greatest return for shareholders. The Company intends to rationalise its non-core assets. Kou Sa Copper Gold Project, Cambodia • The Company is in negotiation with t
Slide 34: Investment highlights
+1Moz Reserve with For personal use only large exploration upside Early Works High margin Program in gold progress opportunity Funding Scheduled Q1 2021 Investment Record gold License to highlights prices operate Proven team
Slide 35: Risk disclosures
Risk disclosures For personal use only There are a number of factors, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operation, exploration, development and financial performance and/or financial position of the Company, its
Slide 36: Risk Disclosures
Risk Disclosures For personal use only Company specific risks (continued) c) Tenure of tenements and approvals The Company is subject to the PNG mining legislation and the Company has an obligation to meet the conditions that apply to its tenements. The Company has applied for the extension of certa
Slide 37: Risk Disclosures
Risk Disclosures For personal use only Company specific risks (continued) e) Country risk Any future material adverse changes in government policies or legislation that affect ownership, mineral exploration, development or mining activities in which the Company operates, may affect the viability and
Slide 38: Risk Disclosures
Risk Disclosures For personal use only Company specific risks (continued) h) Other Company risks The effects of changes in rainfall patterns, water shortages and changing storm patterns and intensities may adversely impact the costs and operational activities of the Company. Some of Geopacific’s sit
Slide 39: Risk Disclosures
Risk Disclosures For personal use only General mining and mineral exploration risk Mineral Resource and Ore Reserve estimates – Mineral Resource estimates are expressions of judgement based on knowledge, experience and industry practice. Estimates that were valid when originally calculated may alter
Slide 40: Risk Disclosures
Risk Disclosures For personal use only General risks (continued) Share market fluctuations and economic conditions - The Company’s financial performance and ability to execute its business strategy will be impacted by a variety of general market, political, social, stock market and business conditio
Slide 41: Foreign Jurisdictions
Foreign Jurisdictions For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it United Kingdom: Neither this document nor any other document relating to the offer has been delivered for approval to the Financ
Slide 42: Foreign Jurisdictions (continued)
Foreign Jurisdictions (continued) For personal use only Canada: This document constitutes an offering of New Shares only in the Provinces of British Columbia, Ontario and Quebec (the Singapore: This document and any other materials relating to the New Shares have not been, and will not be, lodged or
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