Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — SAREIC Conference 2015
29 slides from Hillgrove Resources's conference presentation, Apr 13, 2015
Slide 1: Kanmantoo Mine: Mining Within Our Community
For personal use only KANMANTOO MINE: MINING WITHIN OUR COMMUNITY GREG HALL IIIII CEO & MANAGING DIRECTOR 13 APRIL 2015
Slide 2: Corporate Snapshot – As at 31 December 2014
CORPORATE SNAPSHOT – AS AT 31 DECEMBER 2014 For personal use only ASX listed: HGO Shares on issue: 147.8 million Share price: $0.37 at 31 March 2015* Market capitalisation: $54.7 million* Cash $8.8 million Debt $18.0 million Net Debt $9.2 million Tax losses carried forward circa $58
Slide 3: Annual Accounts and Report Highlights
ANNUAL ACCOUNTS AND REPORT HIGHLIGHTS A record 20,693t Cu within concentrates produced For personal use only EBITDA of $42.7M with underlying EBITDA of $53.4M Statutory Profit after tax of $3.8M with Underlying Profit after tax of $10.1M Increase in inventories due to increase in oxide, tran
Slide 4: Safety Consistently Lower But Has Room for Improvement
SAFETY CONSISTENTLY LOWER BUT HAS ROOM FOR IMPROVEMENT For personal use only Total Recordable Injury Frequency Rate increased, with most injuries of low severity – initiatives are underway in order to reduce this as well as to enhance compliance with integrated risk management system and focus on
Slide 5: Employment Within the Community Maintained
EMPLOYMENT WITHIN THE COMMUNITY MAINTAINED For personal use only Employment remains consistent with a strong focus on those who live in the region 158 (81%) local and Adelaide Hills region based employees 5
Slide 6: Sustainable Operations
SUSTAINABLE OPERATIONS For personal use only SUSTAINABLE OPERATIONS 6
Slide 7: Sustainable Operations
SUSTAINABLE OPERATIONS Productivity and cost improvements assist to create a sustainable operation, and hence For personal use only ongoing employment, through: Enabling profitable operations through low price cycles Potentially enabling lower cut-off grades and hence increased resources Product
Slide 8: Sustainable Operations: Process Plant Improvements
SUSTAINABLE OPERATIONS Productivity and cost improvements in For personal use only the process plant have been brought about through: Multi-stream analyser for on-line rapid monitoring and process control new rougher cell has increased float capacity and hence residence time by 40% new screen
Slide 9: Improved Mining Productivity Maintained
IMPROVED MINING PRODUCTIVITY MAINTAINED For personal use only 9
Slide 10: Q4 Highlights – Lower Processing Costs Maintained
Q4 HIGHLIGHTS – LOWER PROCESSING COSTS MAINTAINED For personal use only 10
Slide 11: Giant Pit Design – EW Section Through 6114970N
GIANT PIT DESIGN – EW SECTION THROUGH 6114970N West East For personal use only Current Mined Surface Strip Ratio below LOM average by RL1064 (mid 2016) Giant Pit 11
Slide 12: Sustainable Operations: Environment and Community
SUSTAINABLE OPERATIONS For personal use only ENVIRONMENT AND COMMUNITY 12
Slide 13: Seed Farm, Strip Rehabilitation and Replanting of Natives
SEED FARM, STRIP REHABILITATION AND REPLANTING OF NATIVES For personal use only 13
Slide 14: Rehabilitation of TSF Underway in Preparation of Final Landforms
REHABILITATION OF TSF UNDERWAY IN PREPARATION OF FINAL LANDFORMS CURRENT VIEW For personal use only 1250 TSF FINAL LANDFORM 14
Slide 15: Community Communications and Forums
COMMUNITY COMMUNICATIONS AND FORUMS Meetings and engagement continues with the local community through the For personal use only Kanmantoo Callington Community Consultative Committee (KCCCC), with key areas discussed including dust, noise, lights and the environmental rehabilitation program A Du
Slide 16: Wind, Dust and Rain Monitoring and Reporting
WIND, DUST AND RAIN MONITORING AND REPORTING For personal use only 16
Slide 17: Dust Monitoring Assists Understanding of the District
DUST MONITORING ASSISTS UNDERSTANDING OF THE DISTRICT For personal use only More detailed dust monitoring of air quality both coming onto the site and downstream of the site This has enabled local communities to understand that, while Kanmantoo mine can have an impact, it does not disproportiona
Slide 18: Maximising Use of Local Suppliers
MAXIMISING USE OF LOCAL SUPPLIERS Over $20 million has been directed to local businesses since operations commenced For personal use only with up to 85 local and regional suppliers and contractors utilised. Whittam Transport Southern Steel Supplies (Adsteel) Civil Mining Solutions W.E. & S.L
Slide 19: Community Engagement
COMMUNITY ENGAGEMENT In December 2013 the mine was called on to assist For personal use only CFS Fire Units, including six fire-fighting aircraft and 200 CFS volunteers, to a bush fire in Rockleigh. The mine was able to provide a Caterpillar 773F Water Truck, a 16M Motor Grader for firebreaks, ope
Slide 20: Exploration and Mine Life Extension
SUSTAINABLE OPERATIONS For personal use only EXPLORATION AND MINE LIFE EXTENSION 20
Slide 21: Broader Exploration Programme Underway
BROADER EXPLORATION PROGRAMME UNDERWAY For personal use only Progress made on Kanmantoo lease and regional exploration Initial drill results for the Wheal Ellen Exploration Area EL4401 Cu-AU-Zn drilling received Kitticoola Prospect Detailed gravity surveys to north of Kavanagh / Giant have indic
Slide 22: Initial Exploration Success
INITIAL EXPLORATION SUCCESS Hillgrove today reported initial exploration success in For personal use only a deep RC hole on the Mining Lease, 200 metres to the north of the current resource profile. The 433 metre deep reverse circulation (RC) hole returned the following assays at a depth of 300 metr
Slide 23: Initial Exploration Success
INITIAL EXPLORATION SUCCESS For personal use only Two density inversion shells that may cause the observed surface gravity signature, and the location of KTRC995 exploration hole Conceptual 3D model of the two potential density shells. Note that the shells terminate just north of the pit due to limi
Slide 24: 2015 Outlook
2015 OUTLOOK For personal use only 2015 OUTLOOK 24
Slide 25: 2015 Outlook and Guidance
2015 OUTLOOK AND GUIDANCE Kanmantoo guidance levels, based on current performance and planned improvements For personal use only Guidance For FY15 Total Ore Mined 2,800kt to 3,000kt Primary Ore Processed 2,300kt to 2,600kt Primary Ore Grade Processed 0.68% to 0.72% Copper Primary Ore Copper Recovery
Slide 26: 2015 Outlook
2015 OUTLOOK For personal use only Through the next 12 months, Hillgrove will undertake the following key activities: Produce the targeted copper contained within concentrates Continue to manage the copper price through an active hedging program for metals Continuously drive unit costs lower t
Slide 27: Key Contacts
KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director Ground Floor 5 – 7 King William Road Unley SA 5061 Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000 E: info@hillgroveresources.com.au T: 61 2 8247 9300 27
Slide 28: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag For personal use only Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 2.63 0.88 0.10 1.95 In Situ Resource Indicated
Slide 29: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) For personal use only and its officers, directors, employees, advisers and agents) in relation to the accuracy or