Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Sydney Mining Club November 2018
27 slides from Ramelius Resources's conference presentation, November 2018
Slide 1: Growth Strategy in Action
Ramelius Resources Limited Mark Zeptner Managing Director ASX:RMS GROWTH STRATEGY IN ACTION SYDNEY MINING CLUB • NOVEMBER 2018 1
Slide 2: Qualification
QUALIFICATION Forward Looking Statements Competent Persons Statement This presentation contains certain forward looking The Information in this report that relates to Exploration statements with respect to Ramelius’financial condition, Results, Mineral Resources and Ore Reserves is based on results
Slide 3: Ramelius – Growth Strategy in Action
RAMELIUS – GROWTH STRATEGY IN ACTION ✓ • Strategy around acquisition of value accretive projects near existing operating mines ✓ • Focus on extension of mine life and maximising value of existing infrastructure ✓ • Strategic acquisitions always under active consideration – new production hubs ✓ • St
Slide 4: Growth Strategy in Action: Production build-up
GROWTH STRATEGY IN ACTION 1. Production build-up SYDNEY MINING CLUB • NOVEMBER 2018 4
Slide 5: Growth Strategy in Action: Competitive cost structure
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure SYDNEY MINING CLUB • NOVEMBER 2018 5
Slide 6: Growth Strategy in Action: Free cash generation
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure 3. Free cash generation SYDNEY MINING CLUB • NOVEMBER 2018 6
Slide 7: Growth Strategy in Action: Share price appreciation
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation SYDNEY MINING CLUB • NOVEMBER 2018 7
Slide 8: Growth Strategy in Action: Capital Management
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management SYDNEY MINING CLUB • NOVEMBER 2018 8
Slide 9: Growth Strategy in Action: Multiple operations
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management 6. Multiple operations SYDNEY MINING CLUB • NOVEMBER 2018 9
Slide 10: Growth Strategy in Action: Reserve replacement
GROWTH STRATEGY IN ACTION 1. Production build-up 2. Competitive cost structure 3. Free cash generation 4. Share price appreciation 5. Capital Management 6. Multiple operations 7. Reserve replacement SYDNEY MINING CLUB • NOVEMBER 2018 10
Slide 11: Corporate Summary
CORPORATE SUMMARY Corporate Structure: at 30 September 2018 Share Price Performance Shares on Issue 528.5M $0.70 10,000,000 Market Cap A$256M @ $0.485 per share 9,000,000 $0.60 8,000,000 Cash & Gold A$102.4M $0.50 7,000,000 Debt Nil 6,000,000 $0.40 Enterprise Value A$153.6M 5,000,000 $0.30 4,000,000
Slide 12: Operations – Overall Production Up 66% in FY2018
OPERATIONS – OVERALL PRODUCTION UP 66% IN FY2018 ▪ Production Guidance met 18 of last 20 Quarters ▪ FY2018; ▪ Record group production of 208,118oz ▪ AISC of A$1,191/oz SYDNEY MINING CLUB • NOVEMBER 2018 12
Slide 13: Operations – Backing Up Again in FY2019 with 190-210,000oz
OPERATIONS – BACKING UP AGAIN IN FY2019 WITH 190-210,000OZ * ▪ FY2019: ▪ Initial Guidance update of 190-210,000oz ▪ AISC forecast to remain at A$1,150-1,250/oz ▪ Full Year by Quarter to be provided with Dec 2018 Qtr ▪ To include: Edna May underground Marda Gold Project Up-front Capital requiremen
Slide 14: Resources and Reserves – Significant Increases from 2017 to 2018
RESOURCES AND RESERVES – SIGNIFICANT INCREASES FROM 2017 TO 2018 ▪ Exploration success and acquisition of Edna May has increased both Resources and Reserves ▪ 36% increase (after mining depletion) in Mineral Resources Reserve Inventory Change ▪ Total Mineral Resources of 70.5Mt @ 1.5g/t Au for 3,476
Slide 15: Takeover Offer - Explaurum's Tampia Hill Project
TAKEOVER OFFER - EXPLAURUM’S TAMPIA HILL PROJECT • 10 September 2018 Ramelius announced Off-market takeover offer for Explaurum Limited (ASX: EXU) • Offer extended to 23 November 2018 • Acceptances of 5% (as at 30 October 2018) Structure • Key information milestones for EXU; • Mace Update - 9 Novemb
Slide 16: Takeover Offer - Explaurum's Tampia Hill Project
TAKEOVER OFFER - EXPLAURUM’S TAMPIA HILL PROJECT ▪ Ramelius can utilise in-house expertise and capacity to fast track development of Tampia Hill ▪ Strategically located ~130km by road from Edna May, 240km east of Perth ▪ 675koz Resources (11.7Mt at 1.79 g/t Au)¹ ▪ 485koz Reserves (7.2Mt at 2.09 g/t
Slide 17: Acquisition - Marda Gold Project
ACQUISITION - MARDA GOLD PROJECT ▪ Signed Binding Agreement* to purchase the Marda Gold Project ▪ Deed of Company Arrangement (DOCA) lodged ▪ Completion expected by end of November 2018 ▪ Strong synergies in utilising Edna May mill to process ore ▪ Further reinforces Ramelius’ capability to execute
Slide 18: Edna May – Stage 2 & Greenfinch Open Pits
EDNA MAY – STAGE 2 & GREENFINCH OPEN PITS STAGE 2 OPEN PIT ▪ Mining completed 26 October 2018 GREENFINCH OPEN PIT (in green) ▪ Approvals processes ongoing ▪ State approval process likely to go to Appeal ▪ Process feedback expected mid-November 2018 ▪ Ore Reserve ▪ 1.7Mt @ 1.2 g/t Au for 62,000oz ▪ 8
Slide 19: Edna May – Underground Development Decision
EDNA MAY – UNDERGROUND DEVELOPMENT DECISION ▪ Low capital cost, high grade production at Edna May to sit alongside potential future developments from Marda & Tampia Hill ▪ Decision based on prudent assessment of mining economics, capital costs and production scheduling options ▪ Resource open at dep
Slide 20: Mt Magnet – Keeps Delivering New Resources
MT MAGNET – KEEPS DELIVERING NEW RESOURCES ▪ +6Moz gold camp, Ramelius since 2011 ▪ Galaxy Mine Area ▪ 4 open pits complete 2011-2017 ▪ Drilling below Titan open pit ▪ Cosmos Mine Area ▪ Milky Way open pit underway ▪ Stellar open pits underway ▪ Shannon open pit underway ▪ Eridanus new Ore Reserve r
Slide 21: Mt Magnet – Maiden Shannon Underground Ore Reserve
MT MAGNET – MAIDEN SHANNON UNDERGROUND ORE RESERVE ▪ Updated Mineral Resource ▪ Indicated 480,000 tonnes @ 5.0 g/t Au for 77,000oz ▪ Inferred 290,000 tonnes @ 4.2 g/t Au for 39,000oz ▪ Total 770,000 tonnes @ 4.7 g/t Au for 115,000oz ▪ 25% increase on previous ▪ Maiden Underground Ore Reserve ▪ 324,0
Slide 22: Mt Magnet – Eridanus Maiden Open Pit Ore Reserve
MT MAGNET – ERIDANUS MAIDEN OPEN PIT ORE RESERVE Exploring for large, low strip ratio porphyry hosted deposits in the Boogardie Basin ▪ Fresh open pit, lying between two existing pits ▪ Maiden Mineral Resource ▪ Indicated 2,840,000 tonnes @ 1.3 g/t Au for 123,000oz ▪ Inferred 690,000 tonnes @ 1.1 g/
Slide 23: Vivien – Excellent Performer, AISC Below A$1,000/oz
VIVIEN – EXCELLENT PERFORMER, AISC BELOW A$1,000/OZ ▪ Consistent producer at 12.5koz per Qtr ▪ Produced 105koz project-to-date ▪ 30 June 2018 Ore Reserve ▪ 370,000t @ 6.5 g/t Au for 77,000 ounces ▪ ~4,000m of deeper diamond drilling completed in 2017 ▪ Best results included; ▪ 5.6m @ 5.20g/t Au from
Slide 24: Significantly Undervalued Gold Producer
SIGNIFICANTLY UNDERVALUED GOLD PRODUCER *Based on FY19 guidance *MOY production based on CY19 guidance *GCY based on target rate *EV data taken as at 31-07-2018 SYDNEY MINING CLUB • NOVEMBER 2018 24
Slide 25: Delivering on growth!
GROWTH STRATEGY IN ACTION ▪ Australia’s 7th largest domestic producer ▪ Favourable jurisdiction ▪ Strategic processing assets ▪ Strong balance sheet ▪ Excellent management team ▪ Proven operating track record Delivering on growth! SYDNEY MINING CLUB • NOVEMBER 2018 25
Slide 26: Mineral Resource Statement
MINERAL RESOURCE STATEMENT MINERAL RESOURCES AS AT 30 JUNE 2018 - INCLUSIVE OF RESERVES For detailed information relating to Mineral Project Deposit Resources see ASX Release (RMS) 18 Sept 2018, Measured Indicated Inferred Total Resource Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au ‘Resources
Slide 27: Ore Reserve Statement
ORE RESERVE STATEMENT ORE RESERVE STATEMENT AS AT 30 JUNE 2018 For detailed information relating to Ore Reserves see ASX Release (RMS) 18 Sept Proven Probable Total Reserve 2018, ‘Resources and Reserves Statement Project Mine Tonnes Au Au Tonnes Au Au Tonnes Au Au 2018’. kt g/t oz kt g/t oz kt g/t o
Ramelius Resources — Sydney Mining Club November 2018 on 6ix