Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Shareholder Meeting (November 2019)
29 slides from Ramelius Resources's shareholder meeting presentation, Nov 22, 2019
Slide 1: Chairman's Address – 2019 AGM
RAMELIUS RESOURCES LIMITED CHAIRMAN’S ADDRESS – 2019 AGM Ladies and Gentlemen, welcome to the 17th Annual General Meeting of Australian gold miner, Ramelius Resources Limited (ASX: RMS) (Ramelius or Company). For personal use only I am pleased to report that Ramelius continued its recent record of s
Slide 2: Chairman's Address (continued)
Ramelius to action growth initiatives in a timely and cost-effective manner. As a result, in the period 30 June 2018 to 21 November 2019: • Ramelius share price has risen by approximately 80%; • Market Capitalisation has appreciated approximately 125%; • Market Capitalisation (at A$1.045/share) has
Slide 3: Annual General Meeting – Managing Director presentation
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS Annual General Meeting 22 November 2019 nd ANNUAL GENERAL MEETING - NOVEMBER 2019 1
Slide 4: Qualification
QUALIFICATION Forward Looking Statements For personal use only This presentation contains certain forward looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and unce
Slide 5: Corporate Summary
CORPORATE SUMMARY Corporate Structure: Production Guidance For personal use only Shares on Issue 658M FY2020 Guidance 205,000 - 225,000oz @ AISC A$1,225-1,325/oz Market Cap1 A$718M @ $1.09 per share FY2019 Production 196,679oz @ AISC A$1,192/oz Mineral Resources 4.10Moz at 30 June 2019 Cash & Gold2
Slide 6: 2019 - Ramelius Delivered Across the Board
2019 - RAMELIUS DELIVERED ACROSS THE BOARD $1.80 45 For personal use only $1.60 Dividend 40 Payment $1.40 35 $1.20 1 Moz Mine 30 Ramelius Share Price (AUD) Plan Corporate Actions Volume (millions) $1.00 25 (Explaurum, Marda) Exploration $0.80 Success 20 $0.60 ASX300 15 $0.40 Inclusion 10 $0.20 5 $0.
Slide 7: Highlights - Improved Resources, Reserves & Gold Sales
HIGHLIGHTS - IMPROVED RESOURCES, RESERVES & GOLD SALES 2018 2019 % Change For personal use only Mineral Resources 3.48Moz 4 4.10Moz 18.0% Ore Reserves 0.70Moz 4 0.84Moz 20.3% Gold Production 208,118oz 4 196,679oz (5.5%) Gold Sales 203,085oz 4 203,318oz 0.1% AISC A$1,191/oz 4 A$1,192/oz 0.1% Average
Slide 8: Highlights - Another Strong Set of Financials
HIGHLIGHTS - ANOTHER STRONG SET OF FINANCIALS OPERATING PERFORMANCE 2018 2019 % Change For personal use only Revenue A$341.8m 4 A$352.8m 3.2% EBITDA A$127.0m 4 A$112.2m (11.7%) Net Profit Before Tax A$45.5m 4 A$30.4m (33.2%) Earnings Per Share (cents) 5.8 4 3.7 (36.0%) Payout Ratio 0% 4 27% - STRENG
Slide 9: Highlights - Delivered on Corporate Actions
HIGHLIGHTS - DELIVERED ON CORPORATE ACTIONS ➢ Ramelius delivered on its strategy of acquiring For personal use only value accretive projects near existing production centres ▪ Acquired 100% of Explaurum for A$64M ▪ Purchased Marda Gold Project for A$13M ▪ Both projects proximal to Edna May gold mine
Slide 10: Highlights - Outstanding Shareholder Returns
HIGHLIGHTS - OUTSTANDING SHAREHOLDER RETURNS ➢ Ramelius has Share Price Performance1 For personal use only 250% outperformed its industry peers, achieving 200% a 151% increase in share price from 1 Nov 2018 150% RMS to 15 Nov 2019 Share Price Percentage Change SLR ➢ Annualised total 100% WGX shareho
Slide 11: Highlights - Australia's Newest Dividend Paying Gold Producer
HIGHLIGHTS - AUSTRALIA’S NEWEST DIVIDEND PAYING GOLD PRODUCER ➢ Inaugural dividend paid in October EV of Australian Dividend Paying Gold Producers1 For personal use only 8,000 2019 - A$0.01 per share 7,000 ➢ Ramelius currently has the lowest valuation (Enterprise Value) of its 6,000 dividend paying,
Slide 12: Key Assets & Outlook
For personal use only KEY ASSETS & OUTLOOK ANNUAL GENERAL MEETING - NOVEMBER 2019 10
Slide 13: 2019 Resources & Reserves by Production Centre
2019 RESOURCES & RESERVES BY PRODUCTION CENTRE Mt Magnet/Vivien Resources & Reserves1 For personal use only ➢ Mineral Resources 2.34Moz ➢ Ore Reserves 0.40Moz Edna May, Marda & Tampia Resources & Reserves1 ➢ Mineral Resources 1.73Moz ➢ Ore Reserves 0.44Moz Total Resources & Reserves1 (at 30 June 201
Slide 14: Resources & Reserves Growth
RESOURCES & RESERVES1 GROWTH Historical Resources and Reserves ✓ Exploration success and the For personal use only 4,500 900 acquisition of the Tampia and Marda 840 gold projects has increased both: 4,000 800 698 3,500 1,200 700 ➢ Mineral Resources: 3,000 600 ▪ 81 Mt @ 1.6g/t Au for 4.10 Moz 1,100 R
Slide 15: Gold Production - A Record Second Half Ahead
GOLD PRODUCTION - A RECORD SECOND HALF AHEAD Ramelius Gold Production ➢ FY2019 Actual1: For personal use only 80 ▪ Group production of 196,679oz 70 ▪ AISC of A$1,192/oz 60 ➢ FY2020 Guidance1: 53 51 ▪ Gold production of 205 – 225,000oz 50 Au Production (koz) 47 45 44 ▪ AISC of A$1,225 – A$1,325/oz 40
Slide 16: Margins Increasing - Cost Control & Improving Gold Price
MARGINS INCREASING - COST CONTROL & IMPROVING GOLD PRICE Gold Production with Gold Price and AISC ✓ Very consistent AISC profile For personal use only 250 $2,000 over past 5 years, varying less 225 than 5% over timeframe $1,750 200 $1,500 ✓ 54% increase in AISC margin 54% increase in AISC Margin 175
Slide 17: Forward Sales - Peer Comparison
FORWARD SALES - PEER COMPARISON1 RMS SLR SAR EVN NST WGX SBM GOR RRL For personal use only Amount Sold (koz) 243 177 377 375 335 214 221 125 439 Average Price (A$/oz) 1,890 1,879 1,874 1,848 1,836 1,864 1,772 1,837 1,615 Mark to Spot2 - (50) (36) (44) (50) (56) (78) (100) (95) (97) (104) A$m (150) (
Slide 18: Long Term Production Outlook - One Million Ounces Over Years
LONG TERM PRODUCTION OUTLOOK* - ONE MILLION OUNCES OVER 5 YEARS Production Target2 ✓ FY19 production confirmed For personal use only 300 $1,500 ~200,000oz production rate Prior Year 1,330 Mine Life 1,275 1,270 Extensions 1,240 1,250 250 1,192 $1,250 ✓ FY20 production guidance of 205-225,000oz1 200 $
Slide 19: Exploration & Development
For personal use only EXPLORATION & DEVELOPMENT ANNUAL GENERAL MEETING - NOVEMBER 2019 17
Slide 20: Mt Magnet Continues to Deliver Ounces
MT MAGNET CONTINUES TO DELIVER OUNCES ➢ New Eridanus open pit 4km south For personal use only of Hill 50/Galaxy area ➢ Latest Ore Reserve1: ▪ 3.1Mt @ 1.1 g/t Au for 110,000oz ➢ Porphyry host with 60m wide granodiorite mineralised to >300mbs ➢ Early ore mining out-performing resource model ➢ Both und
Slide 21: Vivien Mine Life Extended to Late 2021
VIVIEN MINE LIFE EXTENDED TO LATE 2021 Vivien Extension Mine Design For personal use only ➢ Resource modelling below 140 Level has resulted in additional Resources & Reserves1; ▪ Resource of 250kt @ 5.8g/t Au for 48koz Au ▪ Reserve of 197kt @ 4.8g/t Au for 30koz Au ➢ Board approval to extend; ▪ Decl
Slide 22: Edna May - Greenfinch Clearing Permit Granted
EDNA MAY - GREENFINCH CLEARING PERMIT GRANTED ➢ Greenfinch open pit, adjacent the For personal use only Edna May process plant ➢ Ore Reserve1: ▪ 1.7Mt @ 1.2 g/t Au for 62,000oz ➢ Clearing Permit granted; ▪ 21 Day advertising period complete ▪ Offset Proposal submitted for approval ➢ Potential to com
Slide 23: Edna May - Regional Drilling Success
EDNA MAY - REGIONAL DRILLING SUCCESS ➢ Symes’ Find initial Mineral Resource estimate of For personal use only 0.54Mt @ 1.9g/t Au for 34,000oz Au1 ➢ The first significant discovery (outside Edna May) ➢ Tampia prospective for additional resources ➢ Drilling to re-commence after harvest (Dec ‘19) 1See
Slide 24: New Project Development
NEW PROJECT DEVELOPMENT Marda Gold Project Ramelius Cash Flow by Project2 For personal use only 120 ➢ Initial Mineral Resources and Ore Reserve1 Care & Maintenance Still in Operation ToIn Be Developed To Be 100 Development Developed ▪ Resource 4.8Mt @ 2.0g/t Au for 300koz 80 71 ▪ Reserves 1.1Mt @ 2.
Slide 25: Strategic Focus
STRATEGIC FOCUS • Continue to focus on meeting guidance and managing costs For personal use only Operational Excellence • Ensure new developments deliver the best possible returns • A$20M exploration budget - Mt Magnet and Edna May High Impact Exploration • Continue to explore opportunities around p
Slide 26: Ramelius – Breaking into a Gallop
RAMELIUS – “BREAKING INTO A GALLOP” For personal use only Sunrise at Edna May gold mine ANNUAL GENERAL MEETING - NOVEMBER 2019 24
Slide 27: 2019 Mineral Resource Statement
2019 MINERAL RESOURCE STATEMENT MINERAL RESOURCES AS AT 30 JUNE 2019 - INCLUSIVE OF RESERVES Project Deposit Measured Indicated Inferred Total Resource For detailed information relating to Mineral For personal use only t g/t oz t g/t oz t g/t oz t g/t oz Galaxy Group 92,000 1.8 5,400 4,100,000 1.6 2
Slide 28: 2019 Ore Reserve Statement
2019 ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 JUNE 2019 For detailed information relating to Ore Reserves For personal use only Project Mine Proven Probable Total Reserve see ASX Releases (RMS) “Resources and Reserves t g/t oz t g/t oz t g/t oz Statement 2019”, 10 September 2019 and “Viv
Slide 29: Appendix - Peer Data Sources
APPENDIX - PEER DATA SOURCES Peer Enterprise Value data sourced from the following announcements: For personal use only Company Release Date Announcement Silver Lake Resources Limited 11 Oct 2019 Quarterly Activities Report Saracen Mineral Holdings Limited 22 Oct 2019 Quarterly Activities Report Evo
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