Resolute Mining Limited · ASX:RSG
Resolute Mining — Sydney Mining Club (July 2017)
32 slides from Resolute Mining's conference presentation, Jul 12, 2017
Slide 1: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. Investor Presentation - Sydney Mining Club, Sydney, 13 July 2017
Slide 2: Cautionary Statement
Cautionary Statement For personal use only This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove
Slide 3: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. 3
Slide 4: Corporate Summary
Corporate Summary (ASX:RSG) For personal use only Shares on issue 736,982,768 Share Price 2.5 Share Price A$1.10 2 Market Capitalisation A$814M (US$620M) 1.5 $AUD Average daily volume 9.5M Shares 1 Cash, bullion, investments A$290M (US$223M) at 30 Jun 2017 0.5 Debt A$34M (US$26M) at 30 Jun 2017 0 Ju
Slide 5: Outperforming guidance
Outperforming guidance For personal use only Mining gold to create enduring value 8 million ounces of FY17 production outperformance production over 28 years • Original guidance: 300koz at A$1,280/oz FY18 production • Upgraded guidance: 325koz at A$1,150/oz $ guidance of 300,000 ounces at an AISC of
Slide 6: Three years running…
Three years running… For personal use only Track record of strong operating performance FY15 FY16 FY17 Original Guidance 315koz 315koz 300koz Production Actual 329koz 315koz 330koz (oz) Achieved ✔ ✔ ✔ Original Guidance A$1,280/oz A$1,280/oz A$1,280/oz AISC Actual A$1,094/oz A$1,200/oz A$1,130/oz (A$
Slide 7: Investing for a long term future
Investing for a long term future For personal use only Free cashflow after significant capital expenditure A$'m FY17 Cash & Bullion Flows 400 380 360 • A$290M of cash, bullion and listed 340 investments as at 30 June 2017 320 300 280 • Group Net Operating Cashflow of 260 240 A$152M from Ravenswood a
Slide 8: Outperforming on the top line
Outperforming on the top line For personal use only Active gold sales beat the market Australian Dollar Gold Price (A$/oz) 1,850 • Resolute outperformed the spot gold price by A$56/oz in FY17 1,800 • Resolute’s active gold sales 1,750 Resolute Average Gold Price Received (A$1,717/oz) program (includ
Slide 9: Cashflows to the bottom line
Cashflows to the bottom line For personal use only A financial turnaround driven by free cashflow generation A$M Cash, bullion & investments net of debt • A$256M of cash, 300 bullion & investments 250 net of debt 200 • No corporate level debt 150 (A$34M overdraft 100 facility in Mali) 50 • A$320M tu
Slide 10: Sector leading Return on Equity
Sector leading Return on Equity For personal use only 20% Return on Equity at a discount to NAV P/NAV and Return on Equity Randgold Resources • Resolute has one of the 1.6 highest Return on Equity 1.4 Newmont (ROE) ratios in the global Price / Net Asset Value (NAV) Goldcorp gold sector 1.2 Centamin
Slide 11: Sector leading growth rate
Sector leading growth rate For personal use only Best in class gold production CAGR over the next 5 years • Resolute has the highest gold Compound Annual Growth Rate (2016-2021) production compound annual growth 15% rate (CAGR) over the next 5 years 10% 5% • Resolute is well-positioned with West 0%
Slide 12: Developing long life assets
Developing long life assets For personal use only Three large-scale assets across Australia and West Africa Syama Gold Ravenswood Bibiani Gold Mine Gold Mine Mine Mali, West Africa Queensland, Australia Ghana, West Africa Resolute has a successful A successful operating history Resolute acquired the
Slide 13: Targeting 500kozpa by 2020
Targeting 500kozpa by 2020 For personal use only Extensive development & exploration pipeline • Ambition to be producing Growth Projects 500kozpa by 2020 Syama Underground Syama Project 85 • Through an extensive Bibiani Gold Mine Ravenswood Exp. pipeline of organic growth Brownfields Project (REP) E
Slide 14: Growth projects timeline
Growth projects timeline A pathway to growth across three assets For personal use only FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Syama Gold Mine Syama Underground Development Ore Mining Production Ore Mining Project 85 Construction & Commissioning Operational Project Low Carbon
Slide 15: Syama Gold Mine
Syama For personal use only Gold Mine Key Statistics Commissioned 2009 Ownership 80% LOM AISC - Underground US$881/oz Production Rate - Sulphide 2.4Mtpa (170kozpa) Production Rate - Oxide 1.5Mtpa (70kozpa) Underground Mine Life 12 years Total Reserves 3.1Moz Total Resources 6.0Moz 15
Slide 16: Syama Underground
Syama Underground A world class sublevel cave in the making… For personal use only Syama Underground 3,000,000 2,500,000 Tonnes 2,000,000 1,500,000 1,000,000 500,000 - FY18 FY19 FY20 Production Ore Development Ore • Ore drive development has commenced ramp up to ~500ktpa • Initial SLC production ore
Slide 17: Syama Shear Zone
Syama Shear Zone Ten million ounces and counting…. For personal use only • Resolute controls an 80km strike length of the 10Moz Syama shear zone • Majority of exploration to date has been focused on shallow oxide open pit orebodies • Significant exploration upside below current open pit designs exte
Slide 18: Nafolo prospect
Nafolo prospect Game changing new discovery For personal use only • Adjacent to 8Moz Syama Deposit • Potential to transform Syama operation • Untested to the south and at depth • All drillholes to date have intersected gold mineralisation • Remains open in all directions Syama long section – Nafolo
Slide 19: Syama satellite operations
Syama satellite operations High grade underground satellite opportunities For personal use only • High grade (>5g/t Au) sulphide extensions below satellite oxide pits • Underground mining opportunities at Nafolo, Tabakaroni and BA-01 • High grade feed to supplement base load Syama Underground Sublev
Slide 20: Ravenswood Gold Mine
Ravenswood For personal use only Gold Mine Key Statistics Acquired 2004 Ownership 100% LOM AISC A$1,166/oz Process Capacity - Current 2.8Mtpa Nameplate Capacity 5.0Mtpa Production Post 2020 +130kozpa Mine Life 13 years Total Reserves 1.8Moz Total Resources 4.3Moz 20
Slide 21: Ravenswood Expansion Project
Ravenswood Expansion Project Bulk-tonnage open pit mining For personal use only • Reserves: 69.7Mt @ 0.8g/t (1.8Moz) • Resources: 153.7Mt @ 0.9g/t (4.3Moz) • Life of Mine strip ratio of 1.3:1 • Beneficiation of low grade ore (0.3 - 0.7g/t Au) • Bulk open pit mining costs (~A$3.50/t) • Owner operator
Slide 22: Ravenswood Expansion Project
Ravenswood Expansion Project Approvals tracking on schedule For personal use only Mt Wright 10km Mt Wright underground operations continuing Open pit mining recommenced from Nolans East Processing capacity increased to 2.8Mtpa Regulatory approvals for mining at Sarsfield obtained • Regulatory ap
Slide 23: Bibiani Gold Mine
Bibiani For personal use only Gold Mine Key Statistics Acquired 2014 Ownership 90% LOM AISC US$858/oz Mining Rate 1.2Mtpa Proposed Annual Production >100koz Initial Mine Life 5 years Pre-production capex US$72M Timeline to production 9 months Total Reserves 0.6Moz Total Resources 1.8Moz 23 Developme
Slide 24: Bibiani Gold Mine: phase two drilling success
Bibiani Gold Mine Phase two drilling success For personal use only • A substantial gold deposit: • Production to date of >4Moz • 1.8Moz Total Resource • Inferred Resource of 4.5Mt @ 4.1g/t • Phase 2 drilling underway to upgrade inferred resources to an indicated category • Phase 2 drilling has inter
Slide 25: Exploration: exploring world class tenure
Exploration: exploring world class tenure in West Africa and Australia For personal use only Exploring 6,600km 2 of prospective tenure across Australia & Africa Active drilling programs in Mali, Ghana, Cote d’Ivoire & Queensland 25
Slide 26: Resolute focus on growth
Resolute focus on growth Exploration and Business Development For personal use only • Investments in Kilo Goldmines (KGL.tsx-v), Manas Resources (MSR.asx) and Oklo Resources (OKU.asx) • Exposure to prospective tenure in Mali, Cote d’Ivoire, Tanzania, Egypt and Democratic Republic of Congo (DRC) • Ba
Slide 27: Innovation: increasing productivity and lowering costs
Innovation: increasing productivity and For personal use only lowering operating costs through innovation efficient, Developing one of the most safe and productive underground mines in Africa 27
Slide 28: Syama Automation and Innovation
Syama Automation and Innovation Increased productivity and lower operating costs For personal use only • Improved safety performance • Lower operating (AISC) costs and improved capital efficiency • Increased productivity and utilisation of operating hours • Increased tonnes and metres driving lower
Slide 29: Syama gold processing innovation
Syama gold processing innovation Double refractory sulphide processing success For personal use only Syama Production History 250,000 85 80 Gold Production (ozpa) Overall Recovery (%) 200,000 75 150,000 70 100,000 65 60 50,000 55 0 50 2009 2010 2011 2012 2013 2014 2015 2016 Total Gold Production Ove
Slide 30: Invest in Resolute
Invest in Resolute For personal use only • Strong balance sheet and ongoing operational cash flow generation • New executive team leading cultural and performance transformation • Exciting new discovery at Nafolo • Large long life mines • Organic production growth to ~500kozpa • Syama Underground Mi
Slide 31: Appendix 1: Peer Benchmarking
For personal use only Evolution 304 Northern Star 1,333 Notes: Source: Roxgold 296 Regis 833 Northern Star 259 Evolution 618 Centamin 251 Saracen 603 Regis 207 Centamin 587 OceanaGold 203 Roxgold 562 (1) Resource inclusive of reserve. B2Gold 201 B2Gold 538 Endeavour 174 OceanaGold 409 St. Barbara EV
Slide 32: Your gold awaits
For personal use only Your gold awaits Mine gold. Create value. ASX:RSG | www.rml.com.au 32