Slide 1: Sept 2021 Quarterly presentation
Sept 2021 Quarterly presentation Mark Williams, Patrick Duffy, Jason Greive, Warren King 19 October 2021 www.red5ltd.com.au Page: 1
Slide 2: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves ● The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open Pit Mining Review a
Slide 3: Red 5 – A standout growth opportunity
Red 5 – A standout growth opportunity ✓ Red 5 has two gold mines in one of the world’s safest and most prospective gold districts ● 2,555 sq km of granted and pending tenements ✓ King of the Hills (KOTH) is a major Australian gold deposit – Top 10-largest Ore Reserves in Australia1 ● Mineral Resourc
Slide 4: KOTH - fully funded, de-risked, Top-10 gold deposit
KOTH - fully funded1, de-risked, Top-10 gold deposit ● Gold companies/assets (Bubble Size = Indicative Production p.a) Australia’s top 10 gold deposits ● AISC and indicative mine reserve life of WA-based gold by Ore Reserve3,4 companies2,3 Mt g/t Moz Cadia 1400 0.4 20.0 1,700 St Barbara Boddington 5
Slide 5: Red 5 Limited – Corporate Profile
Red 5 Limited – Corporate Profile Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Shareholders Share price
Slide 6: US$55 million divestment of Siana Gold Project
US$55 million divestment of Siana Gold Project ● The Siana Gold Project, owned by Philippine- affiliated company Greenstone Resources, suspended mine operations in April 2017 ● Red 5 announced the completed sale of Siana on 21 September 2021 ● US$19M cash received ● 3.25% NSR royalty up to 619koz (v
Slide 7: Darlot's Sept-Qtr production in line with budget
Darlot’s Sept-Qtr production in line with budget ● No Lost Time Injuries ● Redpath mobilized for initial 12-month mine development program ● Establish new mine areas and reduce reliance on remnant mining ● Darlot Sept-Quarter production1 ● Quarterly production of 16,377 ounces ● Quarterly AISC of A$
Slide 8: King of the Hills – Australia's next major gold mine
King of the Hills – Australia’s next major gold mine www.red5ltd.com.au Page: 8
Slide 9: Grade control drilling commenced – OP & UG
Grade control drilling commenced – OP & UG www.red5ltd.com.au Page: 9
Slide 10: KOTH village fully operational
KOTH village fully operational www.red5ltd.com.au Page: 10
Slide 11: KOTH – steady progress on the process plant
KOTH – steady progress on the process plant ● MACA Interquip is the EPC Contractor ● SAG mill shell and motors lifted into place ● Majority of steelwork on site ● CIL tanks installed and being painted ● Gold room being erected ● Power Station foundations completed and switch room installed ● Erectio
Slide 12: KOTH – all key long lead items now delivered to site
KOTH – all key long lead items now delivered to site ● All long-lead items are on-track to arrive on site ahead of scheduled installation ● New Metso 6Mtpa gyratory crusher is now on site; ● All components of the 15MW SAG mill are on site www.red5ltd.com.au Page: 12
Slide 13: KOTH – first gold on-track for June 2022 quarter
KOTH – first gold on-track for June 2022 quarter 2021 2022 MQ JQ SQ DQ MQ JQ SQ DQ Debt financing Construction and mine permits Bulk earthworks and Village Mill and Crusher delivery to site EPC full mobilisation Site construction and installation Commissioning Mine Contractor mobilisation Production
Slide 14: KOTH – construction is on schedule and within budget
KOTH – construction is on schedule and within budget A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Total (Real) capital cost 226 ● The majority of remaining project expenditure is through fixed-price contracts ● $175M of contract
Slide 15: A standout value opportunity in the Australian gold sector
A standout value opportunity in the Australian gold sector ● Red 5 EV/Reserve relative to its peers ● Valuation of WA based-gold 1,200 companies1 ● Bubble Size = Enterprise Ramelius EV / Reserve (A$/oz) 900 Silver Lake Value Capricorn ● The planned development Bellevue of KOTH is expected to 600 Gol
Slide 16: THANK YOU
THANK YOU Level 2, 35 Ventnor Avenue, West Perth, Western Australia 6005 Australia (61-8) 9322 4455 (61-8) 9481 5950 www.red5ltd.com.au Page: 16
Slide 17: Appendix
Appendix www.red5ltd.com.au Page: 17
Slide 18: KOTH - geology is well understood, open in all directions
KOTH - geology is well understood, open in all directions Jun-21 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.12Moz Au 2.4Moz Au ● Ore body in the contact zone of a substantial Granodiorite intrusion ● 4km long x 2km wide ● Historical understanding from previous OP
Slide 19: KOTH - strategic, low-cost mill in Eastern Goldfields
KOTH - strategic, low-cost mill in Eastern Goldfields ● High level of confidence in metallurgy: ● Historical processing data (1989-2004) ● Metallurgical testwork (historical and FFS) ● Previous processing of KOTH ore at Darlot ● Conventional 4Mtpa CIL plant ● Gyratory crusher with 6Mtpa installed ca
Slide 20: KOTH - mine plan optimises material movement over LoM
KOTH - mine plan optimises material movement over LoM Cost of Production ($A/oz) Yrs 1-6 LOM ● Ore Reserves, Life Of Mine Plan performed by: Mining 895 908 ● Open Pit – SRK Consulting Processing 273 321 ● Underground – Entech G&A 39 46 Transport & treatment 1 1 ● Mine scheduling being undertaken by
Slide 21: KOTH – long mine life generating substantial cash flow
KOTH – long mine life generating substantial cash flow1 Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689 ● Free cashflow (after tax) of: IRR % 38.0% 51.6% 64.3% 76.4% 88.
Slide 22: KOTH is a unique project in these uncertain times
KOTH is a unique project in these uncertain times Transformation of Red 5 2017 Red 5 purchased Darlot and KOTH in WA 2022 Ready to emerge as Australia’s next mid-tier gold producer KOTH benefits to Western Australian economy ● Construction cost of $226 million ● 450 construction jobs ● 600 steady-st
Slide 23: KOTH now fully financed through to operations
KOTH now fully financed through to operations A$175M Syndicated Facility Agreement comprising: Facility Amount ● A$160M Senior Secured Project Loan Facility; and and Syndicate ● ● A$15M Cost Overrun and Working Capital Facility. Banks ● Syndicate Banks – Macquarie (50%), BNP Paribas (25%) and HSBC (
Slide 24: Leadership team with strong development expertise
Leadership team with strong development expertise Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi- billion international development projects – the Company is well placed to deliver the KOTH development Board Management
Slide 25: KOTH – 4.1Moz Mineral Resource
KOTH – 4.1Moz Mineral Resource1 Total Open Pit & Underground KOTH Resource as at Jun 2021 Cut-off Mining Gold Contained Gold Classification Tonnes (000t) (g/t) Method (g/t) (000oz) Indicated 0.4-1.0 OP+UG 69,600 1.4 3,030 Inferred 0.4-1.0 OP+UG 21,100 1.6 1,090 Total 0.4-1.0 OP+UG 90,700 1.4 4,120 K
Slide 26: KOTH – 2.4Moz Ore Reserve
KOTH – 2.4Moz Ore Reserve1 Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Gold Deposit Mining Method (g/t) Classification (Mt) (g/t) (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.2 Rainbow Open pit 0.30 Probable 1.9 0.9
Slide 27: KOTH – mineralisation open in all directions
KOTH – mineralisation open in all directions Proof of concept drilling confirmed gold mineralisation 500m down plunge from current UG designs 1 Mineralised stockwork penetrates at least 70m into the granodiorite from the granodiorite-ultramafic contact 1. Red 5 ASX Release: 18 Dec 2019 www.red5ltd.c
Slide 28: KOTH – Satellite Deposits – Mineral Resource of 308koz
KOTH – Satellite Deposits1 – Mineral Resource of 308koz 1. Red 5 ASX Release: 6 May 2020 2. Red 5 ASX Release: 1 May 2019 www.red5ltd.com.au Page: 28
Slide 29: KOTH – scope to increase production and extend LOM
KOTH – scope to increase production and extend LOM ● Mintrex have confirmed SAG Mill will produce >4.7Mtpa as built ● Red 5 believes the mill has potential to process much more ● 6Mtpa crushing circuit installed ● Oversized SAG Mill being installed ● Design allowance for upgrade of the grinding, lea
Slide 30: KOTH exploration – numerous targets
KOTH exploration – numerous targets ● Integrated datasets have identified priority targets along the Tarmoola and Ursus Fault corridors ● Tarmoola Fault Corridor ● Poorly tested outside of the mine area ● Bulk of historical AC/RAB drilling ineffective (failed to reach top of fresh rock) ● 10 high-pr
Slide 31: KOTH - mine plan focussed on maximising value
KOTH - mine plan focussed on maximising value ● Early years of LOM benefit from UG mining and processing of high-grade ore ● Potential to extend UG mining beyond FY27 ● Low-grade ore is stockpiled and processed in the back half of the LOM Plan ● Lower AISC during Years 1-6 result in short payback ●
Slide 32: KOTH - 15MW SAG mill supports higher throughput
KOTH - 15MW SAG mill supports higher throughput ● Conventional 4Mtpa CIL Hardest Ore Design Mid High plant Power Draw (kW) 9,272 10,859 12,445 ● Acquired 15MW, dual synchronous motor semi- Grind Size (P80) 150 150 150 autonomous grind (SAG) mill with VVVF drive Tonnes Per Hour (tph) 500 586 671 ● De
Slide 33: Darlot exploration & future ore sources
Darlot exploration & future ore sources Darlot Gold Mine 1 Cables & Mission 4 ● Resource 13.1Mt @ 3.4g/t Au for 1.4Moz ● Combined JORC 2004 Resource of 1.5Mt ● Reserve 2.5Mt @ 2.6g/t Au for 203koz @ 3.1g/t Au for 185koz2 ● Historical drilling suggests both deposits ● 71,000m UG and surface drill pro
Slide 34: Top 20 Gold Deposits in Australia
Top 20 Gold Deposits in Australia Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3184.0 0.4 36.1 Cadia 1400.0 0.4 20.0 Boddington 836.2 0.6 16.2 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile - KCGM 178.2 1.1 6.3 Tanami 76.9 4.1 10.1 Tanami 36.2 5.0 5.9 Lake Cowal 290.2 1.0
Slide 35: Australian Top 20 Gold Deposits
Australian Top 20 Gold Deposits1 Resources Reserves Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest St Ives Goldfields Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 5.1 2.49 0.4 Proven 4.7 2.15 0.3 Measured 27.3 1.