Vault Minerals Limited · ASX:VAU

Vault Minerals — Red 5 — Q3 2020 Earnings Presentation

37 slides from Vault Minerals's earnings presentation, Oct 22, 2020

  1. Slide 1: September 2020 Quarter Update

    For personal use only September 2020 Quarter Update 22 October 2020 ASX Code: RED Mark Williams, Managing Director www.red5ltd.com

  2. Slide 2: Competent Person's Statement and Disclaimer

    Competent Person’s Statement and Disclaimer For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open

  3. Slide 3: Red 5 Limited – a standout growth opportunity

    Red 5 Limited – a standout growth opportunity  Red 5 has two gold mines in one of the world’s safest and For personal use only most prospective gold districts  King of the Hills (KOTH) is a major Australian gold deposit  Mineral Resource of 4.1Moz1 and Ore Reserve of 2.4Moz2  KOTH Final Feasibil

  4. Slide 4: Red 5 Limited – corporate profile

    Red 5 Limited – corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh

  5. Slide 5: ESG – a company built on a strong safety culture

    ESG – a company built on a strong safety culture For personal use only  Safety focused on “bottom-up” approach, supporting organisational values  Red 5 LTIFR for the September Quarter (3 months) was nil  Total Recordable Injury Frequency Rate (TRIFR, 12-month moving average) of 9.1 at Sept 2020 

  6. Slide 6: ESG – enhancing governance and capability

    ESG – enhancing governance and capability For personal use only Ms Andrea Sutton, Non-Executive Director, appointment after Nov-20 AGM  25+ years experience with Rio Tinto and Energy Resources of Australia (ERA)  Current Board Member of Infrastructure WA, ANSTO (Australian Nuclear Science and Tech

  7. Slide 7: Strong leadership team with operating expertise

    Strong leadership team with operating expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developmen

  8. Slide 8: Red 5 2020: two producing mines, one plant

    Red 5 2020: two producing mines, one plant For personal use only KOTH OP and UG Mine Darlot UG Mine Darlot Plant 2022 target: two mines, two plants 8 www.red5ltd.com

  9. Slide 9: FY21 Darlot transition year on track

    FY21 Darlot transition year on track  Sept-Qtr production of 20,283oz For personal use only  Successful 6-day planned mill maintenance shutdown in July – followed by steady performance for the Quarter  New crusher and mill bearing upgrades with potential to increase mill throughput by 20% to 1.2M

  10. Slide 10: FY21 Darlot transition – Great Western mine

    FY21 Darlot transition – Great Western mine  Updated mineral resource1 For personal use only  870kt @ 2.5g/t Au for 70koz  Maiden Open Pit Ore Reserve1  438kt @ 2.5g/t Au for 34.5koz contained gold  Additional assays pending  Underground Ore Reserve still to be established  Deposit remains op

  11. Slide 11: Darlot long term – opportunities to extend LOM

    Darlot long term – opportunities to extend LOM For personal use only Darlot Gold Mine 1 Cables & Mission 4  Resource 11.8Mt @ 3.4g/t Au for  Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz  Historical drilling suggests both  Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remai

  12. Slide 12: Red 5 transformation to a mid-tier gold producer

    Red 5 transformation to a mid-tier gold producer For personal use only  AISC and indicative mine reserve life of WA-based gold companies1,2  Gold companies/assets (Bubble Size = Indicative Production p.a) 1,850 Red 5 - Today The planned development of 1,750 Pantoro KOTH will position RED as a lead

  13. Slide 13: KOTH – Australia's next major gold mine

    KOTH – Australia’s next major gold mine  For personal use only Final Feasibility Study highlights3: Australia’s top 10 gold deposits  Initial 16-year mine life by Ore Reserve2  First production Jun-Qtr 2022 Mt g/t Moz  First 4 years open pit and underground mining, Cadia 1480.0 0.5 22.5 peaking

  14. Slide 14: KOTH geology is well understood

    KOTH geology is well understood For personal use only Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au  Ore body hosted in a substantial granodiorite-ultramafic intrusion  4km long x 2km wide  Historical understanding from previous open pit

  15. Slide 15: 4Mtpa CIL plant with expansion capability

    4mtpa CIL plant with expansion capability For personal use only  Conventional 4Mtpa CIL plant Classification  Designed for future expansion to 6Mtpa with minimal interruption and low CAPEX Primary Gyratory Crusher  Order has been placed for SAG mill Gravity Circuit  Gyratory crusher with 6Mtpa i

  16. Slide 16: 16-year initial LOM – open pit and underground

    16 year initial LOM – open pit and underground For personal use only  Bulk open pit and underground mine  Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit  Minimal 3 months pre-strip required in FY22  Underground mining @ 1Mtpa for the first four ye

  17. Slide 17: KOTH site activities commenced, orders placed

    KOTH site activities commenced, orders placed For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Mill casings in USA being loaded for transport Total (Real) capital cost 226  EPC tenders have been received – to

  18. Slide 18: KOTH project financing is underway

    KOTH project financing is underway For personal use only  Indicative term sheets have been received for project financing  ITE Report from CSA Global currently being finalised  Target Project Finance debt of up to $165m  KOTH-allocated cash from FY20 equity raising was $105m  $9.7m of KOTH cape

  19. Slide 19: Pathway to production in 2022

    Pathway to production in 2022 For personal use only 2020 2021 2022 SQ DQ MQ JQ SQ DQ MQ JQ SQ DQ Final Feasibility Study approval Early site works Stage 2 permits Debt financing Financial Investment Decision EPC mobilisation Site construction Mill delivery Mine contractor mobilisation Commissioning

  20. Slide 20: A large gold mine generating substantial cash flow

    A large gold mine generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689  Free cashflow (after tax) of: IRR % 38.0% 51.

  21. Slide 21: Red 5 EV/Reserve relative to its peers

    Red 5 EV/Reserve relative to its peers For personal use only  Valuation of WA based-gold companies1  Bubble Size = Enterprise Value Ramelius Resources 2,000 Silver Lake Resources Pantoro EV / Reserve (A$/oz) 1,500 1,000 Gold Road Resources Ora Banda Mining Regis Resources Dacian Gold St Barbara 50

  22. Slide 22: KOTH is a unique Project in uncertain times

    KOTH is a unique Project in uncertain times Growth of the Australian gold industry For personal use only  Top 10 Australian gold deposit by Ore Reserve  16 year LOM, average 176kozpa in Years 1-61  Flexibility to expand Mill throughput, extend underground mine life beyond 4 years Benefits to West

  23. Slide 23: Thank-you

    For personal use only Thank-you 23 www.red5ltd.com ASX Code: RED

  24. Slide 24: Red 5 – appendix

    For personal use only 24 Red 5 – appendix

  25. Slide 25: Order placed for 15MW SAG Mill

    Order placed for 15MW SAG Mill For personal use only Hardest Ore Design Mid High  15MW, dual synchronous motor Power Draw (kW) 9,272 10,859 12,445 semi-autonomous grind (SAG) mill with Grind Size (P80) 150 150 150 VVVF drive  Delivery to site is Tonnes Per Hour (tph) 500 586 671 expected in the Ju

  26. Slide 26: Further scope to increase production and extend LOM

    Further scope to increase production and extend LOM For personal use only  Future expansion in processing capacity  6Mtpa crushing circuit included in FFS design/cost  Oversize 4Mtpa SAG Mill selected  Design allowance for upgrade of the grinding, leaching and elution components  Minimal produc

  27. Slide 27: KOTH 2.4Moz Ore Reserve – an increase of 64%

    KOTH 2.4Moz Ore Reserve1 – an increase of 64% For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.

  28. Slide 28: KOTH 4.1Moz Mineral Resource – increase of 31%

    KOTH 4.1Moz Mineral Resource1 - increase of 31% For personal use only Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold  Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 Feb

  29. Slide 29: Siana Gold Project, Philippines

    Siana Gold Project, Philippines For personal use only  The Siana Gold Mine, owned by Philippine affiliated company Greenstone Resources, suspended mine operations in April 2017  Maintaining mill and pit dewatering to preserve value  Greenstone Resources is now evaluating its preferred plan and op

  30. Slide 30: 16-year initial LOM – open pit and underground

    16 year initial LOM – open pit and underground For personal use only  Bulk open pit and underground mine  Start-up benefits from existing low-grade stockpiles (1.6Mt @ 0.6g/t) and Rainbow satellite pit  Minimal 3 months pre-strip required in FY22  Underground mining @ 1Mtpa for the first four ye

  31. Slide 31: Mine Plan optimises material movement over LOM

    Mine Plan optimises material movement over LOM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM  Mining to be undertaken by mining contractors Mining 895 908  Contractors to install mining facilities Processing 273 321  Open pit fleet forecast to include 250t excavators and 140t haul

  32. Slide 32: KOTH LOM Plan focussed on maximising value

    KOTH LOM Plan focussed on maximising value  Early years of LOM benefit from UG mining and For personal use only processing of high-grade ore  Potential to extend UG mining beyond FY27  Low-grade ore is stockpiled and processed in the back half of the LOM Plan  Lower AISC during Years 1-6 result

  33. Slide 33: KOTH satellite deposits – Resource of 308koz

    KOTH satellite deposits 1 – Resource of 308koz For personal use only  Maiden JORC Mineral Resources announced in May 20201: o Cerebus-Eclipse: Indicated and Inferred Resource of 2.8Mt @ 1.2g/t Au for 112,000oz o Centauri: Indicated and Inferred Resource of 1.7Mt @ 1.5g/t Au for 81,300oz  Adds to t

  34. Slide 34: KOTH LOM plan gold sales profile

    KOTH LOM plan gold sales profile1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 34 www.red5ltd.com

  35. Slide 35: KOTH LOM plan sensitivities

    KOTH LOM plan sensitivities1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 35 www.red5ltd.com

  36. Slide 36: KOTH is in the Top gold deposits in Australia

    KOTH is in the Top 20 gold deposits in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3174.0 0.4 37.5 Cadia 1480.0 0.5 22.5 Boddington 931.1 0.6 17.4 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile (100%) 178.2 1.1 6.3 Tanami 65.5 4.3 9.1 Tanam

  37. Slide 37: Appendix – Australian top gold deposits

    Appendix – Australian top 20 gold deposits1 Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest For personal use only Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 28.9 1.54 1.4 Proven 11.2 1.39 0.5 Indicated 3090.0 0.37 36.5 Probable 1480.

Red 5 — Q3 2020 Earnings Presentation on 6ix