Focus Minerals Ltd · ASX:FML
Focus Minerals — Merger or Acquisition (June 2011)
20 slides from Focus Minerals's merger presentation, Jun 20, 2011
Slide 1: Recommended Acquisition of Crescent Gold
(ASX: FML) For personal use only FOCUS MINERALS LIMITED Aggressively Expanding into a Strong Gold Price RECOMMENDED ACQUISITION OF CRESCENT GOLD
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. For personal use only The information in this presentation is an overview and does not contain all information necessary for investment d
Slide 3: Creating a Major Australian Gold Producer
Creating a Major Australian Gold Producer Focus to acquire Crescent by way of an off-market takeover to create a major For personal use only Australian gold mining company Focus targeting gold production of 230,000oz during 2012 to be in the Top 5 Australian gold producers Focus’ experienced managem
Slide 4: Creating a Major Australian Gold Producer
Creating a Major Australian Gold Producer For personal use only 1. Production – Focus targeting 230,000oz of gold during 2012 2. Unlocking Value – Focus’ experienced management team has the operational experience to maximise the value of Crescent’s assets and deliver value for all shareholders 3. Re
Slide 5: Diversified Asset Portfolio
Diversified Asset Portfolio For personal use only Coolgardie Production Laverton Production Coolgardie Gold Project Laverton Gold Project • Tindals Mining Centre - • Laverton open pit underground & open pit • Ore processing agreement with • The Mount underground 85km to Barrick south • Barnicoat mil
Slide 6: Transaction Overview
Transaction Overview For personal use only Off-market takeover offer by Focus for all the shares in Crescent Transaction Unanimously recommended by Crescent’s Board, in the absence of a Superior Proposal One Focus share for every 1.18 Crescent shares Offer Terms Implied price of 6.53 cents p
Slide 7: Strategic Rationale for Transaction
Strategic Rationale for Transaction Creates Major For personal use only Creates a Top 5 Australian gold producer targeting 230,000oz during 2012 Australian Significant Resource position in Western Australian gold centres Operational diversity: 2 major mining regions; 4 mines and 2 mills Gold P
Slide 8: Benefits to Crescent Shareholders
Benefits to Crescent Shareholders For personal use only This transaction provides a range of benefits to Crescent investors: Price - The Offer is attractively priced, at a significant premium Retain Ownership - The Focus scrip consideration allows Crescent share holders to retain exposure to value f
Slide 9: Compelling Value for Crescent Shareholders
Compelling Value for Crescent Shareholders For personal use only The implied Offer price represents a significant premium to the recent trading level of Crescent shares 0.07 0.06 30.5% 29.1% 27.4% 25.1% 20.8% 0.05 Periodic VWAP (A$/ share) 0.04 0.03 0.02 0.01 0.065 0.050 0.051 0.051 0.052 0.054 0.00
Slide 10: Focus Will Become a Major ASX Gold Producer
Focus Will Become a Major ASX Gold Producer For personal use only Merged group will be in the Top 5 of ASX primary listed gold producers 500,000 2,800,000 450,000 400,000 350,000 Annual Production (oz) 300,000 250,000 200,000 150,000 100,000 50,000 0 Newcrest CGA Gold One Tanami Allied Adamus St Bar
Slide 11: Re-rating Opportunity Based on EV/Resource Multiples
Re-rating Opportunity Based on EV/Resource Multiples Focus’ proforma EV/Resource multiple post-acquisition is at a 39% discount For personal use only to the peer average for ASX listed gold producers (of A$107/oz) implying a revaluation opportunity 300 584 EV/Resource oz (A$/oz) Average EV/Resource
Slide 12: Strong Production and Exploration Pipeline
Strong Production and Exploration Pipeline The combined group has a strong portfolio of expanding mine operations and For personal use only a significant exploration pipeline of both greenfields and brownfields opportunities 3 x Major Regional Exploration Projects 2 x Mining Regions 4 x Mines
Slide 13: Indicative Timetable
Indicative Timetable For personal use only Date Milestone Monday, 20 June 2011 Transaction Announced Monday, 4 July 2011 Focus Provides its Bidder’s Statement to Crescent, ASIC and ASX Monday, 4 July 2011 Crescent Provides its Target’s Statement to Focus, ASIC and ASX Thursday, 7 July 2011 Bidder’s
Slide 14: Focus Minerals Ltd contact details
Focus Minerals Ltd. Level 30, St Martins Tower 44 St Georges Terrace, Perth WA 6000 T : +6189215 7888 F : +61 89215 7889 E : info@focusminerals.com.au W: www-focusminerals.com.au
Slide 15: Appendix - Focus Asset Base Overview: Tindals Mining Centre
Appendix - Focus Asset Base Overview For personal use only TINDALS MINING CENTRE Engine room of the Focus business Underground & Open Pit operations Significant resource of 13.1Mt @ 2.8g/t for 1.2Moz - grown 20% in last six months Total Reserve of 1.5Mt @ 3.1g/t for 147,000oz Stable underground prod
Slide 16: Appendix - Focus Asset Base Overview: The Mount
Appendix - Focus Asset Base Overview THE MOUNT For personal use only New high-grade Underground Mine. Commenced production in March 2011 Inferred Resource – 2.1Mt @ 5.5g/t for 370,000oz Reserve - 61,000t @ 7.9g/t for 15,500oz Will be significant boost to Focus’ production profile at 40-60,000oz pa I
Slide 17: Appendix - Focus Asset Base Overview: Regional Exploration
Appendix - Focus Asset Base Overview REGIONAL EXPLORATION For personal use only Greater Coolgardie Region has produced >2.5Moz over last 100 years Resource of 11.3Mt @ 1.9g/t for 694,000 ounces in Coolgardie outside the Tindals Mining Centre Reserve of 1.1Mt @ 1.7g/t for 60,000oz Massively underexpl
Slide 18: Appendix - Focus Asset Base Overview: Three Mile Hill Plant
Appendix - Focus Asset Base Overview For personal use only THREE MILE HILL PLANT Largest processing plant in Coolgardie region delivering Focus significant strategic value 1.2Mtpa plant currently operating at 1.3Mtpa Processing at +100,000tpm since June 2010 Spent $22M recommissioning & took to full
Slide 19: Appendix - Focus Resources & Reserves
Appendix - Focus Resources & Reserves Focus Minerals resources at 31st March 2011 For personal use only The information in this report that relates to Exploration Results and Minerals Resources is based on information compiled by Dr Garry Adams who is a member of the Australasian Institute of Mining
Slide 20: Appendix - Crescent Resources & Reserves
Appendix - Crescent Resources & Reserves Laverton Ore Reserves at 30 June 2010 * For personal use only Category Tonnes (‘000) Grade (g/t) Contained Gold (‘000) Proved - - - Probable 6,500 2.1 445 Total 6,500 2.1 445 Laverton Mineral Resources at 30 June 2010 * Category Tonnes (‘000) Grade (g/t) Cont