Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers 2014
29 slides from Regis Resources's conference presentation, Aug 4, 2014
Slide 1: Diggers & Dealers 2014
For personal use only DIGGERS & DEALERS 2014 MARK CLARK MANAGING DIRECTOR
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT For personal use only This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the
Slide 3: Regis Overview
REGIS OVERVIEW For personal use only Corporate Information ASX Code RRL Shares 500m Last price $1.71 Market capitalisation $854m Daily turnover (no. shares) 3.4m Unlisted options 5.7m Major shareholders Newmont 19% Directors & management 10% 3 operating gold mines at Duketon JCP Investment Partners
Slide 4: 2014 – A Tough Year
2014 – A TOUGH YEAR For personal use only • Flooding of Garden Well & Rosemont North pits • Grade challenges at Garden Well & Rosemont North But in spite of that: • Produced 270,759 ounces • Operating cash flow $160m ($587/oz) • Balance sheet remains robust • Capital expenditure programmes complete
Slide 5: 2014 Cash Flow
2014 CASH FLOW For personal use only $250.0m $159.6m ($122.7m) Payments $200.0m discretional, not $150.0m repeating or ($74.7m) tailing off in 2015 $100.0m $61.2m $50.0m $40.0m ($32.0m) ($14.1m) ($10.2m) ($6.1m) $5.6m - ($50.0m) 5
Slide 6: Duketon Capex Projects Completed
DUKETON CAPEX PROJECTS COMPLETED For personal use only Garden Well Rosemont 160 140 120 100 No new 80 Moolart Well capex 60 projects in 2015 40 20 0 2010 2011 2012 2013 2014 2015F Exploration Development Fixed assets Mine properties & development 6
Slide 7: 2014 Financial Year
2014 FINANCIAL YEAR For personal use only BALANCE SHEET Cash and gold bullion $14m Debt ($40m) Non current assets (net of expected impairment) $362 - 412m PROFIT & LOSS Unaudited profit before tax & impairment $79m Expected NCA impairment charge $230 – 280m (board review incomplete & subject to audi
Slide 8: Flooding February 2014
FLOODING FEBRUARY 2014 For personal use only Rainfall • 165mm in 36 hours • 130mm in 14 hours • A 1 in 150 year rainfall event • Larger than any recorded 36 hour rainfall event at either Laverton or Leonora Flooding • GW >4.7million cubic metres • (2,000 Olympic swimming pools) • RMT North >0.6m cub
Slide 9: Garden Well - February 2014
GARDEN WELL - FEBRUARY 2014 For personal use only 9
Slide 10: June 2014 – Looking North
30 JUNE 2014 – LOOKING NORTH For personal use only Water level 430mRL 380mRL 10
Slide 11: June 2014 – Looking East
30 JUNE 2014 – LOOKING EAST For personal use only Water level 430mRL 385mRL 11
Slide 12: Remediation Works
REMEDIATION WORKS For personal use only • Bunding and flood diversion drains repaired and upgraded. • Pump out of flooded pits completed: • Rosemont March • Garden Well May • Mine off of deposited sludge and sediment: • Rosemont May • Garden Well late June • Total cost of around $5m • Significant lo
Slide 13: June 2014 Quarter
JUNE 2014 QUARTER For personal use only Moolart Well Garden Well Rosemont Tonnes milled (T) 710,701 1,045,747 419,009 Grade (g/t) 1.25 0.96 0.90 Recovery (%) 93 89 89 Gold produced (oz) 26,469 28,497 10,781 Cash cost pre royalties ($/oz) 564 1,299 1,342 • Total 65,747 oz at cash cost (pre royalties)
Slide 14: Grade Issues
GRADE ISSUES For personal use only • Has been an ongoing challenge at Garden Well • Most significant in oxide zone • Still an issue, but to a lesser extent, in the fresh rock zone • Early stages of mining at Rosemont • Rosemont North - flat lying oxides have performed poorly - early stages of fresh
Slide 15: 2015 Production Guidance
2015 PRODUCTION GUIDANCE For personal use only Moolart Garden Rosemont Total Well Well Mill throughput 2.6 – 2.8 4.9 – 5.1 1.7 – 2.0 9.2 – 9.9 (million tonnes) Grade (g/t) 1.2 – 1.3 1.0 – 1.1 1.3 – 1.5 1.11 – 1.23 Recovery (%) 91 – 93 91 – 93 91 – 93 91 – 93 Gold 95 – 105 145 – 165 65 – 85 305 – 355
Slide 16: 2015 Operations Focus
2015 OPERATIONS FOCUS For personal use only 1. Achieve steady state operations in mining and processing. 2. Drive the cost base lower from steady state. 3. Push for the last capacity opportunities. 4. Annual update of resources and reserves 5. Work to bring satellite resource positions in to mine pl
Slide 17: Duketon Exploration
DUKETON EXPLORATION For personal use only Moolart Well North • Regional N-S strike slip fault/shear zones on aeromagnetic data Mulga Mulga Queen Duketon • Five main fault/shear zones Queen Moolart identified hosting gold Well mineralisation Petra Anchor • Target zones under cover near Dogbolter faul
Slide 18: Moolart Well & Garden Well Palaeochannel and Geochemical Settings
MOOLART WELL & GARDEN WELL PALAEOCHANNEL AND GEOCHEMICAL SETTINGS For personal use only Regis Tenements Pleco Moolart Well Garden Well 2km 2km 18
Slide 19: Targets North of Moolart Well
TARGETS NORTH OF MOOLART WELL For personal use only • 20km corridor N of Moolart Regis Tenements Well poorly tested for laterite and oxide gold • Major shear structure located under a N-S 10km palaeochannel • Gold soil geochemical anomalies on the margins of the palaeochannel • 5 high priority targe
Slide 20: Targets Garden Well to Tooheys Well
TARGETS GARDEN WELL TO TOOHEYS WELL For personal use only Garden Well • Gold soil geochemical Gold Deposit anomalies on the margins of palaeochannels • Garden Well Shear Zone 1 km bifurcates to Beamish and Tooheys Well Shear Zone • Significant gold intercepts at Tooheys Well 500m apart. 20m @ 1.1g/t
Slide 21: Targets Rosemont South to Baneygo
TARGETS ROSEMONT SOUTH TO BANEYGO For personal use only Rosemont • Rosemont to Baneygo trend 20km poorly tested. 22m @ 2.6g/t, f 22m • Baneygo 43koz Au 10km Garden Resource JORC 2004 King John 3m @ 7.7g/t, f 41m Well • Significant gold intercepts 4m @ 8.5g/t, f 28m from Rosemont to Baneygo 10m @ 1.8
Slide 22: McPhillamys Gold Project
MCPHILLAMYS GOLD PROJECT For personal use only • Acquisition completed Nov12 • 250km west of Sydney • 35km from each of Orange & Bathurst • 3 granted leases • 420 km2 of ELs • 2.5 Moz resource1 • Project covered by freehold farmland Note 1 full break down in accordance with JORC set out in Appendix
Slide 23: McPhillamys Project Status
MCPHILLAMYS PROJECT STATUS For personal use only • Gold price fallen >20% since purchase • Review of current status and medium term strategy based on all variables: • Project potentially viable • Subject to infrastructure requirements • ROI doesn’t meet board hurdle rate at current time • Not moving
Slide 24: McPhillamys (EL7878) Magnetics, Structure & New Targets
MCPHILLAMYS (EL7878) MAGNETICS, STRUCTURE & NEW TARGETS For personal use only Copper Major Shear Zone Hill Minor Shear Zone • Major N-S Ordovician Arc- High priority Cadia Wridgeway Target parallel fault controlling Au-Cu Prospect Au Prospect structures EL7878 • Au-Cu mineralised NW-SE Cross or Tran
Slide 25: Collurabbie Nickel
COLLURABBIE NICKEL For personal use only Olympia Olympia Regis hold 90% of the Collurabbie Collurabbie prospective CGB Greenstone Belt Greenstone Belt CGB CGB • Ni-Cu-PGE sulphide occurrence at Olympia discovered 2004 • Ni-Cu-PGE sulphide occurrence at The Bulge discovered 2006 Moolart Well Au Proje
Slide 26: Collurabbie Nickel
COLLURABBIE NICKEL For personal use only Geological Legend Ultramafic • Regis tenure 588km² including Mafic/Sediment two JV’s Mafic Granite • JV’s managed by Regis • Tenure covers 90% of the Western prospective Collurrabie Ultramafic Greenstone Belt Zone WUZ Gile s • Exploration focussed on WUZ • CU
Slide 27: 2015 Corporate Focus
2015 CORPORATE FOCUS For personal use only 1. Operational predictability. 2. Cash flow. 3. Debt reduction. 4. Move towards reactivation of dividends, if & when appropriate. 5. More active pursuit of growth opportunities. 27
Slide 28: Appendix: JORC Reserves
APPENDIX 1 JORC RESERVES For personal use only Proven Probable Total Cut-off Project grade gold grade gold grade gold Grade MT MT MT g/t koz g/t koz g/t koz g/t Garden Well 41.6 1.26 1,679 41.6 1.26 1,679 0.60 Moolart Well Laterite 4.4 1.26 180 0.7 0.98 22 5.1 1.22 202 0.50 Oxide, trans & 0.40/ fres
Slide 29: Appendix: JORC Resources
APPENDIX 2 JORC RESOURCES For personal use only Measured Indicated Inferred Total Resources Cut- off Project gold gold gold gold MT g/t MT g/t MT g/t MT g/t Grade koz koz koz koz g/t Moolart Well Laterite 4.9 1.23 194 1.0 0.89 29 0.3 0.87 8 6.2 1.16 231 0.50 Oxide/trans 0.4 1.42 20 17.6 0.96 546 22.