Saracen Mineral Holdings Limited
Saracen Mineral — Diggers & Dealers Mining Forum 2014
40 slides from Saracen Mineral's conference presentation, August 2014
Slide 1: ASX Gold Producer – Diggers & Dealers Mining Forum August 2014
RALEIGH FINLAYSON : MANAGING DIRECTOR ASX GOLD PRODUCER Diggers & Dealers Mining Forum – August 2014
Slide 2: Qualification
Qualification This presentation has been prepared by Saracen Mineral Holdings Limited (Saracen or the Company) based on information from its own and third party sources and is not a disclosure document. No party other than the Company has authorised or caused the issue, lodgement, submission, despat
Slide 3: Corporate Overview
Corporate Overview Corporate Structure Board & Management ASX Code SAR Chairman Guido Staltari Shares 792.8m Managing Director Raleigh Finlayson Share Price1 $0.46 Non-Executive Director Barrie Parker Market Cap1 $365m Non-Executive Director Martin Reed Daily Turnover2 4.0m Non-Executive Director Sa
Slide 4: Corporate Overview
Corporate Overview A$60m equity raising for exploration, debt repayment and Thunderbox acquisition Thunderbox Acquisition Diggers & Dealers 2013 4
Slide 5: Key Assets
Key Assets Thunderbox Operations: • 2.5Mtpa CIL plant • Operational 2002 – 2007 • Produced 805koz @ US$290/oz • 2.09Moz Resource • 728koz Reserve • 5 year mine life already in reserve • Capex A$45-55m • AISC Forecast of ~A$1,100/oz Carosue Dam Operations: • 2.4Mtpa CIL Plant • Whirling Dervish OP pr
Slide 6: Carosue Dam Operations – Whirling Dervish Cross Section
Carosue Dam Operations – Whirling Dervish Cross Section 6
Slide 7: Carosue Dam Operations – Karari Long Section
Carosue Dam Operations – Karari Long Section 7
Slide 8: Carosue Dam Operations – Karari Exploration Drive
Carosue Dam Operations – Karari Exploration Drive 8
Slide 9: Carosue Dam Operations – Whirling Dervish Long Section
Carosue Dam Operations – Whirling Dervish Long Section 9
Slide 10: Carosue Dam Operations – Deep South Long Section
Carosue Dam Operations – Deep South Long Section 10
Slide 11: Carosue Dam Operations – Red October Long Section (FW)
Carosue Dam Operations – Red October Long Section (FW) 11
Slide 12: Carosue Dam Operations – Red October Cross Section
Carosue Dam Operations – Red October Cross Section 12
Slide 13: Carosue Dam Operations – Red October Long Section (HW)
Carosue Dam Operations – Red October Long Section (HW) 13
Slide 14: Thunderbox Operations – CIL Plant
Thunderbox Operations – CIL Plant 14
Slide 15: Thunderbox Operations – CIL Plant
Thunderbox Operations – CIL Plant 15
Slide 16: Thunderbox Operations – Thunderbox Isometric View
Thunderbox Operations – Thunderbox Isometric View 16
Slide 17: Thunderbox Operations – Thunderbox Long Section
Thunderbox Operations – Thunderbox Long Section 17
Slide 18: Thunderbox Operations – Open Pit Long Section
Thunderbox Operations – Open Pit Long Section 18
Slide 19: Thunderbox Operations – Underground Study
Thunderbox Operations – Underground Study 19
Slide 20: Thunderbox Operations – Zone A Cross Section
Thunderbox Operations – Zone A Cross Section 20
Slide 21: Thunderbox Operations – Zone C Cross Section
Thunderbox Operations – Zone C Cross Section 21
Slide 22: Saracen Operations Location Map
fa. Saracen LEINSTER Agnew Lawlers Thunderbox Operations 22
Slide 23: Consideration
Consideration: • A$20 million cash on Settlement; • A$3 million cash upon the sooner of commencement of commercial production, or if, after a period of 24 months following settlement, the prevailing gold price has exceeded A$1,550/oz for a calendar month; • 1.5% NSR Royalty on the Thunderbox Operati
Slide 24: Thunderbox Operations (TBO) Development Timeline
Thunderbox Operations (TBO) Development Timeline: 24
Slide 25: Carosue Dam Operations (CDO)
Carosue Dam Operations (CDO) Red October: • High grade underground mine • 12km from Sunrise Dam Operations (AngloGold) • 60koz delivered in FY2014 (48koz Guidance) • Grade 6.4g/t (actual) v 5.0g/t (guidance) FY2014 • “All In” costs sub A$1,150/oz (inc’ all exploration) • Exploration drill drive comp
Slide 26: Carosue Dam Operations - Resource Confidence (FY2013)
Carosue Dam Operations - Resource Confidence FY2013 Reconciliation Reserves Actual Variance Deposit Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Karari 1,388,000 1.24 55,000 1,274,000 1.48 61,000 -8% +19% +11% Deep South 221,000 2.30 16,000 210,000 3.90 26,000 -5% +70% +63% Wallbrook
Slide 27: Carosue Dam Operations - Resource Confidence (FY2014)
Carosue Dam Operations - Resource Confidence FY2014 Reconciliation Reserve Actual Variance Deposit Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Karari 191,000 1.72 10,000 134,000 3.35 14,000 -30% +95% +40% Whirling Dervish 1,953,000 1.03 65,000 1,767,000 1.14 65,000 -10% +11% 0% Red O
Slide 28: Carosue Dam Operations - Whirling Dervish
Carosue Dam Operations - Whirling Dervish PROCESSING PLANT KARARI WHIRLING DERVISH 28
Slide 29: Increasing margins
Whirling Dervish - Grade & Strip ratio Increasing margins 29
Slide 30: FY2015 Carosue Dam Mill Feed
FY2015 Carosue Dam Mill Feed RO ROM to Mill (FY2015) ROM to Mill (FY2015) Mine to ROM (FY2015) Red October UG Whirling Dervish OP Whirling Dervish OP 0.3mt @ 6.4g/t = 60,000con oz 2.1mt @ 1.60g/t = 110,000con oz 3.9mt @ 1.50g/t = 190,000con oz ROM to Mill (FY2016) Whirling Dervish OP 1.8mt @ 1.40g/t
Slide 31: A$625/oz AISC
ROM Stock (FY2016) Whirling Dervish OP 1.8mt @ 1.40g/t = 75,000 rec oz A$625/oz AISC 31
Slide 32: Production and costs by year
cA Saracen 150,000 oz 100,000 oz Carosue Dam Operations - Mill Production (rec oz) FY 2013 (A) ‘mmm Forecast Gold Production (oz) —*— Forecast "All in” Sustaining Costs (AS/oz) Actual "All in" Sustaining Costs (AS/oz) +—e—Forward Hedging (AS/oz) —+—Forecast Cash Costs (A$/oz) FY 2044 (A) mee Forecas
Slide 33: Mill Production (rec oz) by Source
Carosue Dam Operations - Mill Production (rec oz) by Source 50,000 oz ‘A$2,000/02 $1,680 $1,687 $1,690 $1,697 P0000 08 A$1,600/0z 30,000 oz A$1,200/oz 20,000 oz A$800/oz 10,000 oz A$400/oz Ooz ASO/oz Sep-14 Dec-14 Mar-15 Jun- ba ME Whirling Dervish OP mami Red October UG_ —#=Cash Costs (A$/oz) a= AI
Slide 34: Guidance – Production & Costs
Guidance – Production & Costs FY2015 Production (oz)1 Cash Costs (A$/oz)2 AISC (A$/oz)3 Growth Capital (A$m)4 Whirling Dervish OP 101,000 rec oz A$910/oz A$1,075/oz Inclusive in AISC Red October UG 49,000 rec oz A$800/oz A$1,150/oz Inclusive in AISC Sustaining Capital Inclusive in AISC Inclusive in
Slide 35: 5 Year Gold Price in AUD/oz and Hedging
Gold Price AUD/oz 2,000 1,900 1,800 1,700 1,600 1,500 5 YEAR GOLD PRICE IN AUD/oz HEDGED 200,0000z HEDGE PRICE rl a ne e oz 20,000 oz QUARTERL) 45,000-0z 10,000-07- 5,000-0z Qoz FY 2014 FY 2015 Annual FY Hedging: | 56,7000z @ $1,689 a) 105,3000z @ $1,704 HEDGING FY 2016 48,6000z @ $1,722 Gold Price
Slide 36: Key Points of Difference
Key Points of Difference 1 • One of Saracen’s core values Delivery • Consistently delivery into guidance quarter by quarter over two years • Resource confidence and reconciliation performance underpins guidance 2 Declining Cost • AISC set to decrease over A$350/oz to A$1,150/oz (Carosue Dam Operatio
Slide 37: Saracen Mineral Holdings Limited
Saracen Mineral Holdings Limited
Slide 38: Group Mineral Resources
Group Mineral Resources * As at 30/06/2013 compiled under JORC Code 2004. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reporte
Slide 39: Group Ore Reserves
Group Ore Reserves * As at 30/06/2013 compiled under JORC Code 2004. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. #
Slide 40: Group Mineral Resources & Ore Reserves Competent Persons Statement
Group Mineral Resources & Ore Reserves Competent Persons Statement: The information on Exploration Results, Group Mineral Resources and Ore Reserves is extracted from the reports entitled “2013 Mineral Resources and Ore Reserves” dated 8 October 2013 and “Saracen Acquires Thunderbox Operations” date
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