Slide 1: The newest Philippines gold producer
For personal use only RED 5 Limited The newest Philippines gold producer 19 - 21 June 2012 RED 5 Li m i t ed
Slide 2: Presenter – Greg Edwards, CEO
Presenter – Greg Edwards, CEO For personal use only First gold February 2012. No debt and no hedging. Slide 2 RED 5 Li m i t ed
Slide 3: Company overview
Company overview For personal use only • Commercial production declared 16 April 2012 Production guidance • – 75,000 ounces for 12 months ending June 2013 • Forecast cash costs sub $350 per ounce, low relative to peers • Minimum 10 year life - open pit for the first 8 years • allowing Red
Slide 4: Red at a glance...
Red 5 at a glance... For personal use only RED – ASX: A$1.44 Market Cap: A$195m Issued Shares: 135.5m Cash and gold (30 June 2012 - forecast) A$13m Enterprise Value (post construction, per 2009 LOM production ounce): US$214/oz No debt, hedge or FX positions Substantial Shareholders Baker Steel Capit
Slide 5: The Philippines
The Philippines For personal use only Resource rich area - providing a number of key growth opportunities • Third largest gold mineral endowment • Fourth largest copper mineral endowment The Philippines has strong investment ratings • Standard & Poor’s rating: BB+ • Fraser Institute: Safest Coun
Slide 6: Surigao del Norte – highly prospective
Surigao del Norte – highly prospective For personal use only Slide 6 RED 5 Li m i t ed
Slide 7: Siana gold mine fast facts
Siana gold mine fast facts For personal use only Red 5 beneficial Interest 100% Location Philippines – Surigao del Norte, Mindanao Island Capital cost to commercial production US$88million Commercial production declared 16 April 2012 for interim throughput at 750,000tpa Resources (as at September 20
Slide 8: Production guidance
Production guidance For personal use only 12 months to June 2013 Ounces produced 75,000 Cash cost per ounce* sub US$ 340 Total cost per ounce sub US$ 655 Capital development – US$25.3 million stripping mainly first half of year Sustaining capital US$1.6 million Exploration US$5.5 million - outside S
Slide 9: Cost breakdown
Cost breakdown For personal use only Direct Cash Operating Costs AUD/oz Mine Costs Open Pit (attributable to ore tonnes) 87 Processing Costs 203 G & A Costs (includes portion of Manila costs) 68 Refining and Freight 4 Other Selling costs (Govt. Excise Tax, SDMP) 45 Silver Credits (at US$30 per ounce
Slide 10: Drivers of low costs
Drivers of low costs For personal use only High ore grade in environment where most miners are also lowering cut-off grades to extend mine life Gold present in argillised clays not with quartz - results in lower power consumption and maintenance Lower fuel costs (minimal Government taxes) Lo
Slide 11: Siana site layout
Siana site layout For personal use only Slide 11 RED 5 Li m i t ed
Slide 12: Ramp-up phase continuing
Ramp-up phase continuing For personal use only Plant modifications to handle sticky ore completed, but crushing and surge bin conveyor improvements are scheduled June 2012 Power plant (stand-by) – fully operational Plant has operated at 3,000 tonnes per day Mining ramp-up slow than forecast
Slide 13: Photo gallery
Photo gallery For personal use only Slide 13 RED 5 Li m i t ed
Slide 14: Siana new Resource
Siana new Resource For personal use only Mineral Resource (as at September 2011) Gold Contained Silver Contained Category Tonnes Grade Gold Grade Silver (million) (g/t) (‘000 oz) (g/t) (‘000 oz) Indicated Resource Stockpiles 0.1 1.2 4 8.7 31 Open Pit 9.6 2.5 765 4.5 1,379 Underground 0.9 6.7 199 12.
Slide 15: Siana Mining Reserve
Siana Mining Reserve For personal use only Mineral Reserve (as at February 2009) Contained Contained Tonnes Gold Grade Gold Silver Grade Silver Category (millions) (g/t) (‘000 oz) (g/t) (‘000 oz) Stockpiles 0.08 1.33 3.5 10.7 28.5 Open Pit 3.11 3.42 341 8.7 870 Underground 1.94 5.82 363 9.1 566 Tota
Slide 16: Mine plan opportunities
Mine plan opportunities For personal use only New Resource – 0.8g/t cut-off grade in pit (previously 1.1g/t) – 81% classified as Indicated category (previously 60%) – open pit accounts for 83% of tonnes and 65% of the ounces (previously 48% and 31% respectively) – additional 526,000 ounces availab
Slide 17: New positions in the pit
New positions in the pit For personal use only Previously unidentified mineralisation noted in north east corner of pit Follow-up drilling (SMDD128) intersects 10 metres at 4.0g/t just 15 metres below current cut back bench Further intersections in most eastern panels – 7 metres at 11.8 g/t an
Slide 18: Underground mining – not to project year
Underground mining – not to project year 8 For personal use only Underhand cut and fill (top down) Road header in ore (more productive in soft ground than conventional drill and blast) – additional benefit less explosive on site Drill and blast for hard material Paste fill ground support – c
Slide 19: Resource panels – upside potential?
Resource panels – upside potential? For personal use only Panels 1-3 represent 89% of LOM plan Panels 4 – 10 insufficiently drilled from surface due to length of angled hole and cost. Best drilled from underground Slide 19 RED 5 Li m i t ed
Slide 20: Siana long section – unfinished business
Siana long section – unfinished business For personal use only Slide 20 RED 5 Li m i t ed
Slide 21: Near mine growth opportunities
Near mine growth opportunities For personal use only Only minimal drilling outside the pit area Near mine exploration – north Spandonis (4 holes) and south Dayano (5 holes) Regional surface sampling at Dayano and Spandonis complete Plus Mapawa and Alegria Slide 21 RED 5 Li m i t ed
Slide 22: Tenement opportunities - Mapawa
Tenement opportunities - Mapawa For personal use only Slide 22 RED 5 Li m i t ed
Slide 23: Tenement opportunities - Alegria
Tenement opportunities - Alegria For personal use only Slide 23 RED 5 Li m i t ed
Slide 24: On-going community support
On-going community support For personal use only Red 5 has taken an active role in local community relations Projects include: Clean water project Health assistance Education programs Welfare programs Agricultural assistance Infrastructure assistance Security assistance Slide 24 RED 5
Slide 25: Summary
Summary For personal use only ramps-up Share price should re-rate as Red 5 production and delivers on guidance Low cash costs relative to peers current Resource growth potential at Siana extending mine life for Mapawa and Alegria represent the potential a second project in close proximity to
Slide 26: Competent Persons Statement
Competent Persons Statement For personal use only The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on, and accurately reflects, information compiled by Mr Rohan D Williams who is a full time employee of Red 5 Limited and is a Membe
Slide 27: Contact details
Contact details For personal use only Australia Philippines Level 2, 35 Ventnor Avenue Greenstone Resources Corporation West Perth, Western Australia 6005 Level 5, NOL Tower PO Box 1911 West Perth, WA 6872 Commerce Ave, cnr Acacia Ave Ph: + 61 8 9322 4455 Madrigal Business Park Muntinlupa City