Resolute Mining Limited · ASX:RSG
Resolute Mining — Diggers & Dealers Conference 2017
36 slides from Resolute Mining's conference presentation, Aug 7, 2017
Slide 1: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. Presentation by Mr John Welborn, Managing Director & CEO Diggers & Dealers Conference, Kalgoorlie, Monday 7 August, 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: Corporate Summary (ASX:RSG)
Corporate Summary (ASX:RSG) For personal use only Shares on issue 736,982,768 Share Price 2.5 Share Price A$1.07 2 Market Capitalisation A$792M (US$628M) 1.5 $AUD Average daily volume 8.0M 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 4: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. 4
Slide 5: Mine Gold. FY17 production and costs
Mine Gold. For personal use only FY17 329,834oz Total Gold Production A$1,132/oz All-In Sustaining Cost (AISC) 317,242oz A$1,717/oz Total Gold Sold Average Price Received (A$/oz) 5
Slide 6: Create Value. FY17 financial results
Create Value. For personal use only FY17 A$541M A$177M Revenue from gold and silver sales Gross profit from operations A$136M Net Profit before tax $A290M Cash, Bullion & Listed Investments 6
Slide 7: 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$1,132/oz (A$
Slide 8: ASX-listed peer group
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Resolute Evolution Northern Star Regis St Barbara Saracen Mining Mining Resources Resources Limited Minerals (RSG) (EVN) (NST) (RRL) (SBM) (SAR) Market Cap A$0.79B A$3.72B A$2.82B A$1.96B A$1.39B A$1.07B Resources 1
Slide 9: ASX-listed peer group: Resources & Reserves
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Resources & Reserves 16 14 12 Million Ounces 10 8 6 4 2 0 Resolute Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Mining Resources Reserves Source: Publicly ava
Slide 10: ASX-listed peer group: Annual Production
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Annual Production 900 800 700 600 500 kozpa 400 300 200 100 0 Resolute Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Mining Source: Publicly available company
Slide 11: ASX-listed peer group: All-In Sustaining Costs
ASX-listed peer group For personal use only >300kozpa Australian producer peer group All-In Sustaining Costs (AISC) $1,600 $1,400 $1,200 $1,000 A$/oz $800 $600 $400 $200 $0 Resolute Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Mining Source: P
Slide 12: ASX-listed peer group: Average Price Received
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Average Price Received (FY17) $1,740 $1,720 $1,700 $1,680 A$/oz $1,660 $1,640 $1,620 $1,600 Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Resolute Mining Sourc
Slide 13: ASX-listed peer group: Market Capitalisation
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Market Capitalisation 4.0 3.5 3.0 2.5 A$ Billion 2.0 1.5 1.0 0.5 0.0 Resolute Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Mining Source: Publicly available c
Slide 14: ASX-listed peer group: Price / Net Asset Value
ASX-listed peer group For personal use only >300kozpa Australian producer peer group Price / Net Asset Value (P/NAV) 1.8 1.6 1.4 1.2 P/NAV 1 0.8 0.6 0.4 0.2 0 Resolute Resolute Evolution Mining Northern Star Resources Regis Resources St Barbara Limited Saracen Minerals Mining Source: Publicly availa
Slide 15: Reserve Life Benchmarking
Reserve Life Benchmarking For personal use only >300kozpa Australian producer peer group Ravenswood 13 Syama 12 Resolute Cowal 11 Mt Rawdon 9 Mt Carlton 7 Evolution Mungari 4 Edna May 6 Cracow 2 Jundee 6 Kundana 6 Northern Star Kanowna Belle 6 Garden Well 6 Rosemont 6 Regis Moolart Well 2 Leonora –
Slide 16: Syama Gold Mine: Operation Highlights
Syama Gold Mine For personal use only Operation Highlights FY17 Operating Performance Ore Mined Ore Milled Head Grade Recovery Total Production AISC (t) (t) (g/t) (%) (Gold oz) A$/oz Syama Sulphide 1,215,153 2,106,371 2.59 69.8 136,000 1,001 Syama Oxide 1,319,596 1,340,097 2.84 83.2 101,830 960 Syam
Slide 17: Syama Gold Mine Overview
Syama Gold Mine 6.0Moz Total For personal use only Overview Resource 3.1Moz Total Reserve Production Rate Sulphide Oxide 12 Year Underground Mine Life 2.4Mtpa 1.5Mtpa (170kozpa) (70kozpa) US$881/oz LOM AISC - Underground 17
Slide 18: Syama Underground
Syama Underground A world class sublevel cave in the making… For personal use only Syama (8Moz) Nafolo 18
Slide 19: Automation & Development
Automation & Development For personal use only Syama Underground • Automated drilling and longer rounds delivering rapid underground development • Underground mine development has advanced more than 3km • First development ore has commenced ramping up to ~500ktpa • Pre-production underground ore of
Slide 20: Depth of peer group underground
Depth of peer group underground For personal use only Peer group mining at depths beyond 12 years at Syama • Average depth of peer group Nafolo underground mines is 600m below surface • Peers are currently mining at depths well beyond the next 12 years at Syama • The 8Moz Syama orebody has been dril
Slide 21: A major gold discovery at Syama
A major gold discovery at Syama For personal use only Game changing new discovery at Nafolo • 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 Sy
Slide 22: A world class opportunity
A world class opportunity 10Moz and counting, 80km of strike untested below ~200m For personal use only 22
Slide 23: Scratching the surface
Scratching the surface For personal use only No deep drilling outside of the Syama deposit All drilling Drilling >100m Drilling >200m 20,552 1,628 81 holes holes holes 23
Slide 24: Syama's high grade satellites
Syama’s high grade satellites High grade underground satellite opportunities For personal use only • High grade (>5g/t Au) sulphide extensions below satellite oxide pits: • 20m @ 18.28g/t Au from 117m • 23m @ 9.61g/t Au from 140m • 25m @ 8.06g/t Au from 160m • 14m @ 16.65g/t Au from 89m • High grade
Slide 25: One of Africa's premier gold mines
Syama Gold Mine One of Africa’s premier gold mines For personal use only Randgold Acacia Centamin Newmont Resolute Randgold Kibali Bulyanhulu Sukari Ahafo Syama Loulo 19.7Moz 18.7Moz 12.9Moz 10.4Moz 10.0Moz 9.9Moz Goldfields AngloGold Goldfields AngloGold Iamgold Randgold Tarkwa Geita Damang Iduapri
Slide 26: Ravenswood Gold Mine: Operation Highlights
Ravenswood Gold Mine For personal use only Operation Highlights FY17 Operating Performance Ore Mined Ore Milled Head Grade Recovery Total Production AISC (t) (t) (g/t) (%) (Gold oz) A$/oz FY17 Actual 2,366,159 1,995,293 1.54 93.1 92,004 1,406 FY18 Production Guidance Gold Production AISC AISC (oz) (
Slide 27: Ravenswood Gold Mine Overview
Ravenswood Gold Mine For personal use only Overview 4.3Moz Total Resource Production 1.8Moz Total Reserve Rate Post 2020 +130kozpa 13 Year Mine Life 2.8Mtpa Process Capacity - Current 5.0Mtpa Nameplate Capacity A$1,166/oz LOM AISC 27
Slide 28: Development Highlights: Ravenswood Expansion Project
Development Highlights For personal use only Ravenswood Expansion Project • Mt Wright underground to finish in late-FY18 • Open pit mining recommenced at Nolans East • Processing capacity increased to 2.8Mtpa and expanding to 5.0Mtpa • Regulatory approvals tracking on schedule • Buck Reef West open
Slide 29: Bibiani Gold Mine Overview
Bibiani Gold Mine 1.8Moz Total Resource For personal use only Overview 0.6Moz Total Reserve Mining Rate 5 Year 1.2Mtpa Initial Mine Life >100koz 9 months Timeline to production Proposed Annual Production LOM US$72M Pre-production capex US$858/oz AISC 29
Slide 30: Bibiani Gold Mine: Phase 2 drilling success
Bibiani Gold Mine Phase 2 drilling success For personal use only • A substantial gold deposit: • Production to date of >4Moz • 1.8Moz Total Resource • Phase 2 drilling underway to upgrade inferred resources to an indicated category • Phase 2 drilling has intersected mineralisation better than the in
Slide 31: Exploring world class tenure in West Africa and Australia
Exploration For personal use only Exploring world class tenure in West Africa and Australia Exploring 6,600km2 of prospective tenure across Australia & Africa Active drilling programs in Mali, Ghana, Côte d'Ivoire & Queensland 31
Slide 32: Exploration for growth
Exploration for growth For personal use only Exploring to grow the business, not to stay in business 40 Exploration Budget vs Average Mine Life 14 35 12 30 10 Exploration Budget FY18e (A$M) Average Mine Life 25 8 20 6 15 4 10 2 5 0 0 Resolute Northern Star Saracen Regis Resources St Barbara Resolute
Slide 33: A compelling value gap
For personal use only Notes: Regis 811 Source: Evolution 292 Regis 220 Northern Star 629 Northern Star 216 Evolution 592 (1) Resource inclusive of reserve. OceanaGold 188 Saracen 494 EV / Reserve (A$/oz) St. Barbara 130 OceanaGold 378 EV / Resource(1) (A$/oz) Saracen 116 St. Barbara 297 (2) Based on
Slide 34: RSG Opportunity
RSG Opportunity Analyst 12 month price targets: 100% ‘BUY’ For personal use only Shareprice 2.3 2.1 1.9 1.7 1.5 A$ 1.3 1.1 0.9 0.7 0.5 4/12/2016 4/01/2017 4/02/2017 4/03/2017 4/04/2017 4/05/2017 4/06/2017 4/07/2017 34
Slide 35: Mine Gold. Create Value.
Mine Gold. Create Value. For personal use only Scale Longevity Value 12yrs@ Syama P/NAV 5.6 Moz Reserves 13yrs @ Ravenswood 0.6 x Balance sheet Track Record Growth $290MCash, Bullion & Listed Investments 28 yrs 8Moz producing& counting Nafolo Bibiani Tabakaroni 35
Slide 36: Your gold awaits
For personal use only Your gold awaits Mine gold. Create value. ASX:RSG | www.rml.com.au 36