Resolute Mining Limited · ASX:RSG
Resolute Mining — European Gold Forum 2017
32 slides from Resolute Mining's conference presentation, Apr 4, 2017
Slide 1: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. European Gold Forum, Zurich, 4-6 April 2017
Slide 2: Cautionary Statement
Cautionary Statement For personal use only This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove
Slide 3: Mine Gold. Create Value.
For personal use only Mine Gold. Create Value. 3
Slide 4: Corporate Summary
Corporate Summary (ASX:RSG) For personal use only Shares on issue 736,982,768 Share Price 2.5 Share Price A$1.30 2 Market Capitalisation A$958M (US$728M) $AUD 1.5 Average daily volume 8.2M Shares 1 Cash and bullion A$275M (US$206M) at 31 Dec 2016 0.5 0 Debt A$22M (US$16M) at 31 Dec 2016 Jan Mar Apr
Slide 5: Mine Gold. Create Value.
Mine Gold. Create Value. For personal use only Organic Growth Annual dividend offered in gold through exploration bullion or cash Ambition to be producing Reducing All-In Sustaining Costs (AISC) >450kozpa through innovation from 3 operations by 2020 5
Slide 6: Production up, costs down
Production up, costs down For personal use only Quarterly gold production and costs $1,000 140,000 $900 120,000 $800 $700 100,000 $600 Ounces (oz) US$/oz 80,000 $500 60,000 $400 $300 40,000 $200 20,000 $100 0 $0 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Ravenswood Syama Sulphide Syama Oxide All-In Sustaini
Slide 7: African focused peers
African focused peers For personal use only EV / Reserve (A$/oz) EV / FY17E Production(2) (A$/oz) 8,283 741 7,172 539 403 3,702 363 3,244 2,413 129 Resolute Resolute Randgold B2Gold Endeavour Randgold B2Gold Endeavour Acacia Acacia Resolute Resolute EV / Resource(1) (A$/oz) EV / FY17E EBITDA(2) (x)
Slide 8: Transformation: Developing long life mining operations
For personal use only Transformation: Developing long life mining operations Syama DFS Ravenswood FS Bibiani FS 12 years 13 years Confirms pathway to production 8
Slide 9: Syama Gold Mine
Syama For personal use only Gold Mine Key Statistics Commissioned 2009 Production Guidance FY17 204koz LOM AISC - Underground US$881/oz Production Rate - Sulphide 2.4Mtpa (170kozpa) Production Rate - Oxide 1.5Mtpa (70kozpa) Underground Mine Life 12 years Total Reserves 3.1Moz Total Resources 6.0Moz
Slide 10: Syama underground sublevel cave
Syama underground sublevel cave Taking the learnings from Ravenswood’s Mt Wright to Africa For personal use only Existing Caving expertise Highly efficient, top-down, bulk mining Low up-front capex Controlled, high-productivity ore delivery Flexible method Consistent and reliable production 10
Slide 11: Syama v Mt Wright
Syama v Mt Wright Key criteria comparison For personal use only Mt Wright achieved Syama expected Oz/vertical metre 2,400 oz/m 6,300 oz/m Tonne of stope ore/metre of 318t/metre of development 343t/metre of total development development Vertical advance per year 51m/yr LoM average 39m/yr LoM average
Slide 12: Nafolo prospect
Nafolo prospect Game changing new discovery For personal use only • Adjacent to 8Moz Syama Deposit • Untested along strike and at depth • Potential to transform Syama operation 12
Slide 13: Nafolo prospect: Four holes in...a major new discovery
Nafolo prospect Four holes in…a major new discovery For personal use only 13
Slide 14: Ravenswood Gold Mine
Ravenswood For personal use only Gold Mine Ravenswood Production 160,000 140,000 120,000 Key Statistics 100,000 Ounces (oz) Acquired 2004 80,000 60,000 Production Guidance FY17 96koz 40,000 Production Post 2020 +130kozpa 20,000 A$1,166/oz - LOM AISC US$880/oz FY2017 FY2018 FY2019 FY2020 FY2021 FY202
Slide 15: Ravenswood Expansion Project
Ravenswood Expansion Project a long life low cost open pit operation For personal use only Sarsfield Buck Reef West 1.2Moz Reserve & Nolans East 0.5Moz Reserve & 2.6Moz Resource 71koz Reserve 1.3Moz Resource 13 year Life of Mine All-In Sustaining Cost mine life US$880 A$134m start up capital per oun
Slide 16: Ravenswood Extension Project: The key deposits
Ravenswood Extension Project: The key deposits For personal use only Mt Wright 10km 120kozpa for 13 years 5Mtpa mill capacity Nolans East open pit mining underway Staged development plan 16
Slide 17: Ravenswood Future open pit mining
Ravenswood Future open pit mining For personal use only • Reserves: 69.7Mt @ 0.8g/t (1.8Moz) • Resources: 172.4Mt @ 0.8g/t (4.3Moz) • Life of Mine strip ratio of 1.3:1 • Beneficiation of low grade ore (0.3 - 0.7g/t Au) • Bulk open pit mining costs (~A$3.50/t) • Owner operator, larger equipment poten
Slide 18: Bibiani Gold Mine
Bibiani For personal use only Gold Mine Key Statistics Total Reserves 0.6Moz Total Resources 1.8Moz Mining Rate 1.2Mtpa Mining Grade 3.7g/t Proposed Annual Production >100koz Initial Mine Life 5 years Timeline to production 9 months Pre-production capex US$72M AISC US$858/oz 18 Development Decision
Slide 19: Bibiani: Phase two drilling success
Bibiani Phase two drilling success For personal use only • A substantial gold deposit: • Production to date of >4Moz • 1.8Moz Total Resource • Inferred Resource of 4.5Mt @ 4.1g/t • Phase 2 drilling underway to upgrade inferred resources to an indicated category • Phase 2 drilling has intersected min
Slide 20: Extending a 6Moz gold system
Extending a 6Moz gold system High grade intercepts near existing infrastructure For personal use only Open Open Open Mineralisation open at depth with excellent intersections in deepest holes 20
Slide 21: World class, belt scale tenure
World class, belt scale tenure Heavily endowed and underexplored For personal use only • Early exploration success at the Nafolo discovery south of the main Syama orebody • Expansion of existing inventory at Syama, Ravenswood, and Bibiani • Highly prospective, underexplored tenure spread across Mali
Slide 22: Resolute focus on Growth
Resolute focus on Growth Exploration and Business Development For personal use only • Recent investments in Kilo Goldmines (KGL.tsx-v), Manas Resources (MSR.asx) and Oklo Resources (OKU.asx) • Exposure to prospective tenure in Mali, Tanzania and Democratic Republic of Congo (DRC) • Backing good team
Slide 23: Africa: Three of the top five fastest growing gold mining regions
Africa: Three of the top five fastest growing gold mining regions For personal use only Global Gold Production CAGR (1990-2015) 10.2 9.9 9.6 8.5 7.5 5.2 3.9 0.9 Central Europe East Africa West Africa Central Africa Asia South America Oceania Southern North America South Africa America Africa -0.9 -5
Slide 24: Golden Pride
Golden Pride For personal use only 1996 to 2014 Purchased exploration portfolio Defined a mineable resource Completed feasibility study Constructed the first modern gold mine in Tanzania Produced 2.2 Moz gold over a 15 year mine life Generated net cash flows of US$211m Completed award winning enviro
Slide 25: Invest in Resolute
Invest in Resolute For personal use only • Strong balance sheet and ongoing operational cash flow generation • New executive team leading cultural and performance transformation • Exciting new discovery at Nafolo • Large long life mines • Organic production growth to >450kozpa • Syama Underground Mi
Slide 26: Appendix 1: Reserves & Resources
Appendix 1: Reserves & Resources For personal use only 5.6Moz Reserves Total Ore Reserves estimated at 112.1Mt @ 1.5g/t Au for 5.6Moz of contained gold, comprising: 0.6Moz Syama Gold Mine 37.0Mt @ 2.6g/t Au for 3.1Moz 1.8Moz 3.1Moz Ravenswood Gold Mine 69.7Mt @ 0.8g/t Au for 1.8Moz Bibiani Gold Mine
Slide 27: Appendix 2: Long mine life and value
Appendix 2: Long mine life and value For personal use only 25.0x 20.0x Randgold EV/EBITDA 15.0x Endeavour B2Gold 10.0x Roxgold Semafo Asanko 5.0x Resolute Acacia Bubble size represents annual production 6 7 8 9 10 11 12 Average mine life (years) Source: Publicly available company documents, presenta
Slide 28: Appendix 3: Peer Benchmarking
For personal use only Roxgold 360 Northern Star 1,095 Evolution 266 Notes: Regis 736 Source: Centamin 265 Roxgold 620 B2Gold 205 Centamin 619 Northern Star 237 Evolution 599 OceanaGold 177 B2Gold 539 Regis 183 Saracen 531 (1) Resource inclusive of reserve. Endeavour 173 OceanaGold 513 EV / Reserve (
Slide 29: Appendix 4: African peer metrics
Appendix 4: African peer metrics For personal use only Resolute Peer Group Randgold B2Gold Acacia Endeavour (RSG.asx) Average (RRS.lse) (BTO.tsx) (ACA.lse) (EDV.tsx) Market Cap US$0.73B US$3.78B US$6.71B US$2.78B US$2.38B US$1.69B Mali, Burkina Faso, Mali, Ghana, African Mali, DRC, Senegal, Namibia,
Slide 30: Appendix 5: Mineral Resources Statement 2016
Appendix 5: Mineral Resources Statement 2016 For personal use only MEASURED INDICATED INFERRED TOTAL Group share MINERAL RESOURCES 1 kt g/t koz kt g/t koz kt g/t koz kt g/t koz koz Ravenswood (Australia) 100% Sarsfield (insitu) 2 46,453 0.8 1,186 57,664 0.7 892 22,192 0.7 521 126,309 0.6 2,599 2,599
Slide 31: Appendix 6: Updated Ore Reserves Statement 2016
Appendix 6: Updated Ore Reserves Statement 2016 For personal use only PROVED PROBABLE TOTAL Group share ORE RESERVES Kt g/t KOz Kt g/t KOz Kt g/t KOz KOz Ravenswood (Australia) 100% Sarsfield (insitu) 2 28,450 0.8 747 18,640 0.7 423 47,090 0.8 1,170 1,170 Nolans East 1,818 0.8 46 846 0.9 25 2,664 0.
Slide 32: Your gold awaits
For personal use only Your gold awaits Mine gold. Create value. ASX:RSG | www.rml.com.au 32