Geopacific Resources Limited · ASX:GPR
Geopacific Resources — Investor Presentation (July 2019)
24 slides from Geopacific Resources's investor presentation, Jul 24, 2019
Slide 1: High Margin Gold Opportunity
High Margin Gold Opportunity For personal use only 1.6moz* Woodlark Gold Project * For Mineral Resource refer to slide 13 and the PFS announcement released on 12 March 2018. 1
Slide 2: Investment Highlights
Investment Highlights For personal use only Completed by industry leaders & +1moz confirms high margin gold opportunity Reserve & Robust DFS1 Trading at significant discount to peers Attractive Shovel valuation to ready peers +100koz pa (yr1-5) with low costs High margin from outcropping gold minera
Slide 3: Company Snapshot (ASX: GPR)
Company Snapshot (ASX: GPR) For personal use only 0.04 Woodlark Gold 0.04 (permitted) – 100% Share Price (A$/sh) PNG 0.03 0.03 Woodlark Gold 0.02 (regional) – 100% 0.02 0.01 0.01 Cambodia Kou Sa 0.00 (non-core) - 85% Feb-19 Apr-19 Sep-18 Oct-18 Dec- Aug- Nov- Jan-19 Mar- May- Jun-19 Jul-18 Jul-19 18
Slide 4: Board and Senior Management
Board and Senior Management For personal use only Geopacific’ s team has a strong track record in developing overseas mining projects Mr Clyne has over 35 years’ experience in international banking having worked in senior executive positions in ten countries in Asia, Oceania, Australia and Europe. H
Slide 5: PNG – Why wouldn’t you want to be here?
PNG – Why wouldn’t you want to be here? For personal use only Proven mining investment jurisdiction with long mining history Many world-class gold mines Newcrest investing ~US$2.3b* in Wafi Golpu now Many profitable gold operations on Islands Newcrest, Lihir at 66Moz Au St Barbara, Simberi at 6Moz A
Slide 6: Easy Place to Work
Easy Place to Work For personal use only The flat terrain & close proximity to the port provides logistical advantages and cost efficiencies Logistical Advantages Qualified teams Working on an Island • Flat terrain • Experienced local operators • 1.5hr flight from Port Moresby • Close proximity & ea
Slide 7: Woodlark Gold Project (PNG) – 100%
Woodlark Gold Project (PNG) – 100% For personal use only A permitted project with a robust DFS completed by industry leaders • Production – 967koz recovered over 13 yrs at AISC of A$1,033/oz • Annual output – 104kozpa over 5yrs, 93kozpa over 9yrs, 74kozpa over 13yrs • Payback period – 2.2 yrs post-t
Slide 8: Strong Feasibility Results
Strong Feasibility Results For personal use only Robust Low waste to Near-surface Strong upfront production ore ratio mineralisation cashflow profile Unit First 5 Yrs* Life of Mine Mine Life yea rs 5 13 Strip Ratio (x) 3.2 3.9 Feed Grade (g/t Au) 1.5 1.1 Gold Recovery (%) 90.2 88.8 Annual Output (ko
Slide 9: Capital Costs
Capital Costs For personal use only Establishment Costs Sustaining Costs The establishment capital estimates are comprehensive and contain allowances The DFS study includes the estimation of sustaining capital costs which incorporate for contingency, working capital, opening stocks/first fills and s
Slide 10: Upside - additional in-pit ounces
Upside - additional in-pit ounces For personal use only Potential to gain additional in-pit ounces and reduce strip ratio Inferred mineralisation surrounding pits Limited drilling access in village area, relocation agreed Mineralisation remains open at depth and in all directions 10
Slide 11: Upside - Near-pit depth extension
Upside - Near-pit depth extension For personal use only Mineralisation remains open beneath pits in all directions Pits are constrained by limited drilling, inferred mineralisation beneath pits available for conversion Prior drilling was strategically focused in-pit to Further drilling ensure maximu
Slide 12: Regional exploration upside
Regional exploration upside For personal use only Large regional goldfield covering highly prospective volcanic sequence High-quality exploration targets & over 30 prospect areas Visible gold across 580km2 EL (yellow) Gold follows mineralised structures (red) Significant potential beneath thin limes
Slide 13: Resources and Reserves
Resources and Reserves For personal use only Resources Reserves 47.04Mt at 1.04g/t Au for 1.57moz Au 28.9Mt at 1.12g/t Au for 1.04moz Au Category Tonnes Grade Ounces Category Tonnes Grade Ounces (>0.4g/t lower cut) (Mt) (g/t) (oz) (>0.4g/t lower cut) (Mt) (g/t) (oz) Measured 21.24 1.10 754,000 Prove
Slide 14: Project Financing
Project Financing For personal use only Advance project financing solution to reach a development decision Debt Equity Final Stages of Project Financing Due Diligence A strong shareholder base containing large resource specialist funds with the capacity to support development. Independent Technical
Slide 15: Attractive valuation to peers
Attractive valuation to peers For personal use only High Low operational costs & robust production +1.6Moz Low enterprise value to Margin schedule drive competitive AISC. Resource and Reserve ounce ratio. 17 April 2019 17 April 2019 +1.6Moz Resource with expansion potential 15
Slide 16: Low waste to ore compared to peers
Low waste to ore compared to peers For personal use only Less waste drives a Geopacific ORE WASTE COST SAVINGS significant cost saving Low waste to ore ratio of 3.9 : 1 (LOM) Other ORE WASTE Goldfield High grade, near surface gold mineralisation *The above diagram is conceptual in nature and compari
Slide 17: Low Cost, High Margin
Low Cost, High Margin For personal use only Margin greater than 55% at A$2,000/oz gold price Low cost drivers $2,000 Upside from DFS Margin Positive Operating Environment $1,750 Flat terrain Easy access to all project areas Margin $1,500 55% Local labour force DFS Margin Gold Price (A$) $1,250 Outcr
Slide 18: Compelling Investment Opportunity
Compelling Investment Opportunity For personal use only Gold exploration & development peers Enterprise value/ Reserve oz 2.5x greater Gold producers Enterprise value/ Reserve oz 6.7x greater 6.7x Geopacific – Woodlark Gold Project Permits granted in proven mining jurisdiction 2.5x Project finance d
Slide 19: DFS Gold Price Sensitivity
DFS Gold Price Sensitivity For personal use only The DFS sensitivity analysis presents robust economics at a A$1,650/oz gold price & highlights project upside to an increasing gold price Net cashflows, NPV and IRR present greater returns Rapid payback of 1.4 years at A$2,000/oz gold price 19
Slide 20: Upside of Early Cashflow
Upside of Early Cashflow For personal use only Average free cashflow (pre-tax) per annum yr1-5 A$120m A$104m A$84m 43% increase 25% increase Upfront cashflow A$1,650/oz A$1,850/oz A$2,000/oz gold price (DFS) gold price gold price *The information is based on the gold price sensitivity analysis from
Slide 21: Gold stockpile de-risks production
Gold stockpile de-risks production For personal use only Robust mining schedule allows stockpiling of excess ore to form a production safety buffer for contingency purposes. 100koz pa production target A$84m free cashflow pa at A$1,650/oz gold price 26koz gold pa gold stockpile Safeguard for unf
Slide 22: Licence to Operate
Licence to Operate For personal use only Commitment to provide positive and lasting benefits to a small, supportive community. Commitment to provide Mining & Environmental The Community positive & lasting benefits Permits in place The population of ~6,000 are Primary provider of future employment St
Slide 23: +1.6moz Gold deposit
For personal use only +1.6moz Gold deposit Attractive Large valuation to exploration peers Upside Investment High margin highlights gold opportunity Licence to Shovel ready operate Proven management team
Slide 24: Disclaimer and competent persons statement
Disclaimer and competent persons statement For personal use only This presentation is for information purposes only. Neither this presentation nor the information The information in this report that relates to Woodlark Mineral Reserves is based on information contained in it constitutes an offer, in
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