Citigold Corporation Limited · ASX:CTO
Citigold — Shareholder Meeting (2006)
26 slides from Citigold's shareholder meeting presentation, 2006
Slide 1: The Year in Review
The Year in Review Citigold Corporation Limited 2005-06 Financial Year 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 2: Presentation Outline
Presentation Outline • DELIVERABLES - What has the Project delivered to shareholders so far? • POTENTIAL - What is the future potential of the Project? • RESOLUTIONS - 2 to 6 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 3: 1. Deliverables
1. DELIVERABLES LAST FOUR YEARS. • 10 million ounce gold Resource – (23 Mt @ 14 g/t Au Inferred Mineral resources) • Warrior Mine in production • Net Assets $152M - increased four-fold in four years • Share price increased five-fold in four years • Regular share purchase plans • Convertible Note ‘CT
Slide 4: 10 Million Ounce Resource
10 Million ounce Resource Growth of Mineral Resources 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 Resource 5,000,000 Ounces 4,000,000 3,000,000 2,000,000 1,000,000 0 1993 1996 1999 2002 2005 2006 Year 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 5: Assets increased four-fold
Assets increased four-fold Growth of Assets $160 $140 $120 $100 Assets (million $80 dollars) $60 $40 $20 $0 1993 1996 1999 2002 2005 2006 Year 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 6: Share price increased five-fold
Share price increased five-fold Citigold Closing Share Price 1st Aug 2001 to 20 Nov 2006 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 01-Nov-01 01-Feb-02 01-May-02 01-Nov-02 01-Feb-03 01-May-03 01-Nov-03 01-Feb-04 01-May-04 01-Nov-04 01-Feb-05 01-May-05 01-Nov-05 01-Feb-06 01-May-06 01-Nov-06 01-Aug-01
Slide 7: Outperformed Peers
Outperformed Peers Comparison of Citigold with peer companies from 1 Aug 05 to 20 Nov 06 450% 411.3% 400% 350% 300.0% 300% 250% Ballarat 200% Bendigo 150% 92.8% 68.9% Citigold 100% 59.3% 27.8% 50% -35.8% 0% 23.7% -5.7% -50% Market Cap Share Price Shares Issued 2006 Annual General Meeting Source: ASX
Slide 8: Massive dilution by peer companies
Massive dilution by peer companies Shares Issued from 1 Aug 05 to 20 Nov 06 100% 90% 92.8% 80% 70% 68.9% Ballarat 60% 50% Bendigo 40% Citigold 30% 27.8% 20% 10% 0% Shares Issued 2006 Annual General Meeting Source: ASX Releases and price data Citigold Corporation Limited ABN 30 060 397 177
Slide 9: 2. Potential
2. POTENTIAL • Current size of gold field –6.6 M oz produced –10 M oz in Inferred Mineral Resources (23Mt @ 14 g/t Au) • 16 Moz gold field already delineated 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 10: 2. Potential
2. POTENTIAL • TARGETS • 4 parallel structures – mineralised, with previous production. • May contain 6 Moz each, 24 Moz • Multiple cross vein structures – targeted to contain 10 Moz • 16 + 24 + 10 = 50 Moz 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 11: 4 kilometres
4 kilometres 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 12: 2006 Annual General Meeting
4 km 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 13: 2. Potential
2. POTENTIAL • 40,000 ounces per year Charters Towers target currently – just the start 70 • A 50 Million ounce target – 60 50 – Kalgoorlie is 60 Moz Million Ounces 40 • 80 exploration targets to be 30 drilled, with Citigold’s own rigs 20 10 • Second and third phases of 0 Current Target Kalgoorlie m
Slide 14: 3. Resolutions 2 to 6
3. RESOLUTIONS 2 to 6 • 2. Authorise the issue of 20 million shares • 3. Remuneration Report • 4-6. Issue of options to Directors. 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 15: 2. Authorise issue of 20 million shares
CTO Closing Share Price 2. Authorise issue of 1st Aug 2001 to 17 Oct 2006 $0.60 $0.50 $0.40 20 million shares $0.30 $0.20 $0.10 $0.00 01-Nov-01 01-Feb-02 01-May-02 01-Nov-02 01-Feb-03 01-May-03 01-Nov-03 01-Feb-04 01-May-04 01-Nov-04 01-Feb-05 01-May-05 01-Nov-05 01-Feb-06 01-May-06 01-Aug-01 01-Aug
Slide 16: 3. Remuneration Report
3. Remuneration Report Citigold Directors' Payments 2006 $300,000 $250,000 $200,000 Related Party Super $150,000 Benefits, FBT $100,000 Salary before Tax $50,000 $233,000 $35,000 $30,000 $- Chairman Managing Non-Exec Director Director 2006 Annual General Meeting Citigold Corporation Limited ABN 30 0
Slide 17: Comparison of Gross Board Payments
Comparison of Gross Board Payments 2006 $700,000 $600,000 $500,000 Citigold Bendigo $400,000 Ballarat $300,000 Citigold $200,000 $100,000 $- Chairman Managing Exec Exec Non-Exec Non-Exec Director Director Director Director Director 2006 Annual General Meeting Source: Company annual reports Citigold
Slide 18: Comparison of Citigold Directors' Fees with Mining Companies
Comparison of Citigold Directors’ Fees with 24 Mining Companies, excluding fees over $1 million Directors Fees 2006 - less than $1 million 116 Directors, 24 mining companies $700,000 $600,000 Managing Directors $500,000 $400,000 $300,000 Citigold Executive Directors $200,000 Non-exec Directors $100,
Slide 19: Senior Officers' Packages 2006
Senior Officers' Packages 2006 $250,000 $200,000 Related Party $150,000 Super $100,000 Benefits, FBT Salary before Tax $50,000 $- O gr c g ec Se in CO M Ex er ny n ne io or pa at gi ni m or En Se Co pl M te Ex G Si 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 20: Senior Officers Salaries 2006
Senior Officers Salaries 2006 Comparison with Metal Mining Industry (Surveys by Hays, and McDermott (gold co.s)) Citigold in blue $450,000 $400,000 $350,000 $300,000 Low (Hays) $250,000 Citigold 2006 $200,000 $150,000 High (Hays) $100,000 $50,000 $- 1st Quartile Mid point c c gr g r Se 3rd Quartile
Slide 21: Remuneration Summary
CTO Closing Share Price 1st Aug 2001 to 17 Oct 2006 $0.60 Remuneration Summary $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 01-Nov-01 01-Feb-02 01-May-02 01-Nov-02 01-Feb-03 01-May-03 01-Nov-03 01-Feb-04 01-May-04 01-Nov-04 01-Feb-05 01-May-05 01-Nov-05 01-Feb-06 01-May-06 01-Aug-01 01-Aug-02 01-Aug-03 01-Au
Slide 22: 4-6. Issue of Options to Directors
4-6. Issue of Options to Directors • Directors not permitted to participate in private placements • They may buy shares in Share Purchase Plans. • Puts part of the Directors’ incentive to perform at risk, by being subject to meeting performance hurdles – puts “some skin in the game”, with Directors
Slide 23: Issue of Options to Directors
Issue of Options to Directors • Options are not free shares – shares must be bought by Directors at 50c. This would inject $7.9 million into Citigold if options exercised. • 13.75 million options – 2% of issued capital • Shareholders approved 15 million options in 2001 – most of these lapsed without
Slide 24: Issue of Options to Directors: Performance Hurdles
Issue of Options to Directors PERFORMANCE HURDLES 1) Options at 50c, above average market price 2) Next 35% of options withheld until: o share price exceeds 73c or o production rate of 50,000 oz/year (25% above current target) 3) Next 35% of options withheld until: o share price exceeds $1.00 or o p
Slide 25: Issue of Options to Directors
Issue of Options to Directors • Options unlikely to be exercised unless share price exceeds 50c • No performance – no 2nd or 3rd set of Options. • Citigold, lead by its Directors, tripled shareholder value in last year. 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177
Slide 26: Citigold Just the Beginning – Thank you
Citigold Just the Beginning Thank you 2006 Annual General Meeting Citigold Corporation Limited ABN 30 060 397 177