Resolute Mining Limited · ASX:RSG
Resolute Mining — Investor Presentation (January 2020)
45 slides from Resolute Mining's investor presentation, Jan 21, 2020
Slide 1: Equity Raising Presentation
For personal use only Mine Gold. Create Value. Equity Raising Presentation 21 January 2020
Slide 2: Important Notices & Disclaimers
Important Notices & Disclaimers For personal use only This presentation contains information about Resolute Mining Limited (Resolute or the Company) and its activities that is current as at the date of this presentation unless otherwise stated. The information in this presentation remains subject to
Slide 3: Important Notices & Disclaimers (continued)
Important Notices & Disclaimers (continued) For personal use only Summary of Underwriting Agreement for the Placement The Tranche 1 Institutional Placement is underwritten pursuant to an underwriting agreement (Underwriting Agreement) dated on or around the date of this announcement with Canaccord G
Slide 4: Equity Raising Overview
Equity Raising Overview For personal use only Up to A$196 million Equity Raising to Repay Debt and Strengthen the Company’s Balance Sheet Securities Offered • Fully paid ordinary shares in Resolute which will rank pari passu with existing ordinary shares on issue (New Shares) • Equity Raising of up
Slide 5: Equity Raising Timetable
Equity Raising Timetable For personal use only Key Events Date Trading Halt and Launch Equity Raising • Tuesday, 21 January 2020 Tranche 1 Institutional Placement Bookbuild • Tuesday, 21 January 2020 and Wednesday, 22 January 2020 Announce Completion of Tranche 1 Institutional Placement and Trading
Slide 6: Sources and Uses
Sources and Uses For personal use only Equity Raising proceeds will be used to repay the Taurus Facility in full Sources A$m(1) US$m(1) Uses A$m(1) US$m(1) Tranche 1 Institutional Placement Proceeds 146 101 Full repayment of the Taurus Facility 188 130 Tranche 2 Placement Proceeds(2) 25 17 General w
Slide 7: Pro-Forma Position
Pro-Forma Position For personal use only Pro-Forma Net Debt Position As at 31 December 2019 Equity Raising Adjustments(2,3) Debt Repayment Adjustments Pro-Forma Pro-Forma Net Debt A$m(1) US$m(1) A$m(1) US$m(1) A$m(1) US$m(1) A$m(1) US$m(1) Cash and Bullion 154 106 196 135 (188) (130) 162 111 Add: Li
Slide 8: Resolute at a glance: Mako, Syama, Ravenswood, Bibiani
Mako Senegal For personal use only Syama Mali Ravenswood Bibiani Australia Ghana Sale on schedule to complete in March 2020; Strategic Review Underway proceeds of up to A$300m Market Capitalisation Dividend Policy Resources Reserves FY20 Guidance(2) A$1.1Bn Minimum Payout (1) 500koz at £562m | US$73
Slide 9: Unique and Highly Attractive Investment Proposition
Unique and Highly Attractive Investment Proposition For personal use only Resolute is a dividend paying gold producer with multiple long life, high margin assets and a strong platform for growth and consolidation within Africa Long Life, Low Cost, Large Scale Assets FY20 Guidance of 500,000oz at an
Slide 10: FY19 Highlights
FY19 Highlights For personal use only Delivering on our Strategy • Syama Underground Mine commissioning completed • Automation system installed including new Automation Control Room; automated fleet in operation • New solar-hybrid power solution secured Syama • Maiden high-grade underground Mineral
Slide 11: Resolute Portfolio
Resolute Portfolio For personal use only Syama Mako Ravenswood Bibiani Syama Complex comprises the Syama Mako is a high quality, low-cost Resolute’s sale of Ravenswood for Bibiani is a potential long life, high Underground Mine, a world class, fully producing asset with attractive scale, proceeds of
Slide 12: Syama Gold Mine Mali
Syama Gold Mine Mali The most advanced mining system in the world For personal use only FY20 Guidance: 260,000oz at an AISC of US$960/oz 11
Slide 13: Syama Underground Mine
Syama Underground Mine The most advanced mining system in the world For personal use only Commenced sublevel caving in December 2018 Commercial production rates achieved in June 2019 12
Slide 14: Mine Based Off-Grid Hybrid Power Solution
Mine Based Off-Grid Hybrid Power Solution For personal use only One integrated power station – ensuring optimal operations Single operation, designed for maximum efficiency Hybrid Management System Standard plant design used for each technology; Next Generation Engine Technology integration of techn
Slide 15: Syama Underground automation
Syama Underground For personal use only Autonomous Drilling The most advanced Autonomous Truck Navigation mining automation system Autonomous Loading & Dumping in the world Mine Digitalisation Autonomous Haulage Central Monitoring & Visualisation 14
Slide 16: Active, Multi-Rig Exploration Program
Active, Multi-Rig Exploration Program For personal use only Resolute controls 80km strike length of Syama greenstone belt 15
Slide 17: Tabakoroni: High Grade Intersections
Tabakoroni: High Grade Intersections For personal use only Scoping study for a new standalone underground operation underway Mineral Resource of 1.03Moz at 5.1g/t Au 16
Slide 18: Mako Gold Mine Senegal
Half Year Results Presentation: For the six months to 30 June 2019 Mako Gold Mine Senegal High quality, low cost producing asset with attractive scale For personal use only FY20 Guidance: 160,000oz at an AISC of US$800/oz 17
Slide 19: Mako Gold Mine
Mako Gold Mine Low cost, high margin production from a stable, mining friendly jurisdiction For personal use only Overview Location Location • Senegal Ownership • 90%; Senegal Government 10% (free carried) Mine Type • Open Pit Mineral Resources • 20.4Mt at 1.89g/t Au for 1.244Moz Ore Reserves • 14.1
Slide 20: High Grade Intersections Below Existing Pit
High Grade Intersections Below Existing Pit For personal use only Drill results support mine life extension potential • High grade intersections from diamond drilling below the current pit confirm the potential of a coherent lode at the north-eastern end of the existing open pit • Opportunity to exp
Slide 21: Ravenswood Gold Mine Australia
Half Year Results Presentation: For the six months to 30 June 2019 Ravenswood Gold Mine Australia Total sale proceeds to be received by Resolute up to A$300 million For personal use only FY20 Guidance: 80,000oz at an AISC of US$1,200/oz 20
Slide 22: Ravenswood sale for up to A$300 million
Ravenswood sale for up to A$300 million For personal use only Definitive transaction documentation signed; completion on schedule for March 2020 Strongly value creative outcome for Resolute shareholders • Consortium comprising specialist resources private equity group, EMR Capital, and Singapore-lis
Slide 23: Bibiani Gold Mine Ghana
Half Year Results Presentation: For the six months to 30 June 2019 Bibiani Gold Mine Ghana Long life, high margin growth optionality For personal use only Strategic review advanced 22
Slide 24: Strategic Investments in Africa
Strategic Investments in Africa For personal use only Objective Establish a portfolio of investments in emerging 16% stake gold explorers to expand our project pipeline and provide a source of medium term potential growth opportunities 9% stake 26% stake Focus Equity investments in African focused e
Slide 25: Corporate Summary
Corporate Summary (ASX / LSE : RSG) For personal use only Capitalisation A$ £ US$ ASX Price Performance Share Price $1.175 £0.623 $0.811 $2.25 40 Shares on Issue 903m $2.00 35 Market Capitalisation $1,061m £562m $732m $1.75 (1) 30 Top 10 Shareholders FY20 Guidance $1.50 1 ICM Limited 14.45% 25 Share
Slide 26: Key Risks
Key Risks For personal use only This section discusses some of the risks associated with an investment in Resolute. Resolute's business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance. Before subscribing for New
Slide 27: Key Risks
Key Risks (continued) For personal use only The realisation of production estimates is dependent on, among other things, the accuracy of Reserve and Resource estimates, the accuracy of assumptions regarding ore tonnages and grades and processing utilisation, throughput and recovery rates, the abilit
Slide 28: Key Risks
Key Risks (continued) For personal use only Mineral Resource and Ore Reserve Estimates Mineral Resources and Ore Reserves are estimates only and no assurance can be given that the anticipated tonnages and grades will be achieved, that the indicated level of recovery will be realised or that Ore Rese
Slide 29: Key Risks
Key Risks (continued) For personal use only Underground Mining Resolute's current mine plans at its projects involve mining of the certain orebodies through underground mining methods. Underground mining can be more complex than open pit mining and any expansion into underground mining will also bri
Slide 30: Key Risks
Key Risks (continued) For personal use only Joint venture parties, contractors and agents The Directors are unable to predict the risk of financial failure or default by a participant in any joint venture to which Resolute is, or may become a party; or insolvency or other managerial failure by any o
Slide 31: Key Risks
Key Risks (continued) For personal use only Litigation Resolute like many companies in the mining industry, is subject to legal claims in the ordinary course of its corporate and operational activities, with and without merit. Due to the inherent uncertainty of the litigation and dispute process, th
Slide 32: Key Risks
Key Risks (continued) For personal use only Government approvals and permits are current and may in the future be required in connection with the operations of Resolute. To the extent such approvals are required and not obtained, Resolute may be curtailed or prohibited from continuing its mining ope
Slide 33: Key Risks
Key Risks (continued) For personal use only Resolute’s activities are subject to various regulations Resolute’s activities are subject to various laws governing exploration/development, taxes, labour standards and occupational health, safety, toxic substances, land use, water use, land claims of loc
Slide 34: Key Risks
Key Risks (continued) For personal use only There is no assurance that Resolute will successfully continue to retain existing specialised personnel and senior management or attract additional experienced and qualified senior management and/or mining personnel required to successfully execute and imp
Slide 35: Key Risks
Key Risks (continued) For personal use only Logistics The Syama Gold Mine, and to a lesser extent the Mako Gold Mine, are remote mine sites with extensive supply lines supporting operations and relatively poor transport infrastructure. The risk of any interruption to the supply chain may result in s
Slide 36: Key Risks
Key Risks (continued) For personal use only Legal systems in Senegal, Mali and Ghana The legal systems operating in Senegal, Mali and Ghana may be less developed than more established countries, which may result in risk such as: (i) political difficulties in obtaining effective legal redress in the
Slide 37: Key Risks
Key Risks (continued) For personal use only Furthermore, any remediation measures taken in response to potential or alleged violations of anti-corruption or anti-bribery laws, including any necessary changes or enhancements to Resolute’s procedures, policies and controls and potential personnel chan
Slide 38: Key Risks
Key Risks (continued) For personal use only Uninsured or uninsurable risks Resolute undertakes complex and large scale operating activities and faces operating hazards associated with these activities. There is a risk that operating equipment, facilities and systems may not operate as intended or ma
Slide 39: Key Risks
Key Risks (continued) For personal use only Deterioration of general economic conditions may also affect Resolute's business operations, and the consequent returns from an investment in Resolute shares. In the future, the sale of large parcels of Resolute shares may cause a decline in the price at w
Slide 40: Foreign Selling Restrictions
Foreign Selling Restrictions For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offer
Slide 41: Foreign Selling Restrictions
Foreign Selling Restrictions (continued) For personal use only The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the New Shares purchased pursuant to this document (other than (a) a "Canadian fi
Slide 42: Foreign Selling Restrictions
Foreign Selling Restrictions (continued) For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and F
Slide 43: Foreign Selling Restrictions
Foreign Selling Restrictions (continued) For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any oth
Slide 44: Foreign Selling Restrictions
Foreign Selling Restrictions (continued) For personal use only United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financi
Slide 45: Contacts
For personal use only Contacts Follow Us John Welborn | Managing Director & CEO Jeremy Meynert | General Manager – BD & IR EMAIL | contact@rml.com.au PHONE | +61 8 9261 6100 WEB | www.rml.com.au
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