Vault Minerals Limited · ASX:VAU
Vault Minerals — Red 5 — Merger or Acquisition (February 2024)
31 slides from Vault Minerals's merger presentation, Feb 5, 2024
Slide 1: Red 5 and Silver Lake Resources to Merge - Investor Call
5 February 2024 Red 5 and Silver Lake Resources to Merge Investor Call Red 5 will be hosting an investor webcast for investors, analysts and media to discuss the transaction announcement on Monday, 5 February 2024, commencing at 8.00am (AWST) / 11.00am (AEDT). Participants can join the webcast by se
Slide 2: Red 5 & Silver Lake Resources to Merge
For personal use only ASX Code: RED Red 5 & Silver Lake Resources to Merge Creating a ~445koz pa, diversified, leading mid-tier gold company 5 February 2024 www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence
Slide 3: Competent Person's Statement and Disclaimer
Competent Person’s Statement and Disclaimer Investor Presentation Red 5 and Silver Lake have jointly prepared this investor presentation based on information available to them at the time of preparing the presentation. No representation or warranty, express or implied, is made as to the fairness, ac
Slide 4: Today's Presenters
Today’s Presenters For personal use only Name Position Russell Clark Chair Mark Williams Managing Director & Chief Executive Officer Richard Hay Chief Operating Officer Mat Collings Corporate Development Manager www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellen
Slide 5: A logical combination of two complementary gold producers
A logical combination of two complementary gold producers For personal use only The creation of a ~445koz pa, diversified, leading mid-tier gold company with a strong balance sheet positioned for growth King of the Hills Operations Deflector Operations Mount Monger Operations Sugar Zone Project FY24
Slide 6: Transaction rationale
Transaction rationale Immediate establishment of a leading mid-tier diversified gold producer through the merger of two complementary gold businesses Gold production profile of ~445koz pa for FY24(1) with a significant Ore Reserve and Mineral Resource inventory of 4.0 million ounces and For person
Slide 7: Transaction summary
Transaction summary All-scrip transaction via a Silver Lake Scheme of Arrangement, unanimously endorsed and supported by the Board of Red 5 and unanimously recommended by the Board of Silver Lake For personal use only Merger to be affected via a Silver Lake scheme of arrangement (Scheme) under whi
Slide 8: I. Transaction Highlights
I. Transaction Highlights For personal use only www.red5limited.com www.red5limited.com Our CORRE Our CORRE Values: Values:Courage, Courage,Ownership, Ownership,Respect, Reliability, Respect, Excellence Reliability, Excellence
Slide 9: Immediate establishment of a leading mid-tier ASX gold producer
1 Immediate establishment of a leading mid-tier ASX gold producer Production scale creates a strong platform poised for growth Gold production – FY2024G (koz Au)(1) For personal use only 1,675 789 Immediate establishment of a leading mid-tier gold producer 504 435 445 425 355 273 255 227 220 205 159
Slide 10: Well balanced portfolio in established mining jurisdictions
1 Well balanced portfolio in established mining jurisdictions Four established Mining Hubs of scale in tier 1 gold jurisdictions, with current production exclusively from Western Australia Diversity of Production = Risk Mitigation For personal use only Sugar Zone (Ontario) King of the Hills (Western
Slide 11: Combination of two complementary gold businesses
2 Combination of two complementary gold businesses Provides Red 5 and Silver Lake shareholders with the opportunity to participate in a stronger combined group, delivering benefits not available on a standalone basis For personal use only Highly complementary business combination… Reserve Life(1) (Y
Slide 12: Complementary Reserves and Resources
2 Complementary Reserves and Resources Establishment of a leading mid-tier ASX gold company with 4.0 Moz of Ore Reserves and 12.4 Moz of Mineral Resources, underpinning a sustainable production profile Gold Ore Reserves and Mineral Resources (koz Au) Gold Ore Reserves (Moz Au)(1) For personal use on
Slide 13: Creation of a sector-leading balance sheet
Compelling commercial logic via the creation of a sector-leading 2 balance sheet Enhanced balance sheet position provides financial flexibility to invest in a larger pool of low capital intensity asset optimisation opportunities Significant Financial Strength Pro-forma Balance Sheet – Net Cash / (De
Slide 14: Governance – Leadership team
Governance – Leadership team reflects the depth and significant 3 expertise of both Red 5 and Silver Lake MergeCo to leverage the complementary skill sets of the respective companies to deliver increased capacity and capability For personal use only Board of Directors • Board and management team ref
Slide 15: Robust and genuinely diversified portfolio of operations
Robust and genuinely diversified portfolio of operations in prolific 4 minerals provinces Right balance of assets at “invest & yield” phase provides platform to internally fund optimisation projects and exploration to maximise value Exploration & Other Licences Mining Leases Mining Hub Mill For pers
Slide 16: Increased scale and diversification enhances market significance
Increased scale and diversification enhances market significance and 5 investor appeal Significant step-up in market relevance, trading liquidity & lower cost of capital will benefit Red 5 and Silver Lake shareholders Increased scale …and significantly improved liquidity relative to peers …creates i
Slide 17: Step-change in scale and market significance
5 Step-change in scale and market significance Merged group enters the market with a compelling value proposition for a diversified, mid–tier, gold producer with assets in tier 1 jurisdictions Market Capitalisation P / NAV EV / FY2024E EBITDA EV / Resource For personal use only (A$M)(1) (x)(2) (x)(3
Slide 18: Immediate creation of a diversified mid-tier gold producer
Immediate creation of a diversified mid-tier gold producer with global investor appeal Logical combination to unlock benefits for both shareholder groups not otherwise available on a standalone basis Merger of equals between Red 5 and Silver Lake immediately creates a leading mid-tier ASX-listed gol
Slide 19: II. Key Transaction Information
II. Key Transaction Information For personal use only www.red5limited.com www.red5limited.com Our CORRE Our CORRE Values: Values:Courage, Courage,Ownership, Ownership,Respect, Reliability, Respect, Excellence Reliability, Excellence
Slide 20: Transaction summary
Transaction summary(1) For personal use only The proposed merger will be implemented by way of a scheme of arrangement in relation to Silver Lake Terms If the transaction is implemented, Silver Lake shareholders will receive 3.434 new shares in Red 5 for every share of Silver Lake they own The
Slide 21: Indicative timetable
Indicative timetable Scheme booklet expected to be dispatched to Silver Lake shareholders in April 2024, ahead of a scheme meeting in May 2024 and transaction completion by June 2024 For personal use only Event Date First Court Hearing(1) Mid to late April 2024 Scheme booklet dispatched to Silver La
Slide 22: MergeCo Pro-forma snapshot
MergeCo Pro-forma snapshot As at ASX market close on 2 February 2024 Red 5 Silver Lake Pro-Forma MergeCo Share price A$/sh $0.33 $1.27 n/a For personal use only Ordinary shares outstanding(1,2) M 3,464 935 6,805 Market Capitalisation(2) A$M 1,143 1,182 2,246 Cash & Equivalents (31 Dec 2023) A$M 53 2
Slide 23: Appendix A: MergeCo Portfolio
For personal use only Appendix A: MergeCo Portfolio www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 22
Slide 24: King of the Hills operations
King of the Hills operations King of the Hills Mines Darlot For personal use only 250,000mE 300,000mE 350,000mE 400,000mE NLGP 15 0 km Eastern Go Mine Type Underground and open-pit 6,950,000mN ldfields Ga Bellevue Duketon s Pipelin 2.5, 2.5 & 5 Mtpa e 10 Darlot 0 km Leinster Duketon Vivien Gold
Slide 25: Deflector operations
Deflector operations Rothsay Mines Deflector (Main & South West) For personal use only Yalgoo Mine Type Underground Mullewa Deflector Deposit Crush, grind, and gravity, flotation and CIP Port Headland Processing Deflector circuit mill Project Area Morawa Nanatarra Milling Legend Newman 0.8
Slide 26: Mount Monger operations
Mount Monger operations Daisy Complex Mines Mount Belches Complex Aldis Complex For personal use only Mine Type Underground and open-pit Port Headland Processing Crush, grind, conventional CIL Nanatarra Milling Newman 1.3 Mtpa Capacity Western Australia Reserves 0.6 Moz (10.0Mt @ 2.0g/
Slide 27: Sugar Zone operations
Sugar Zone operations Mines Sugar Zone SUGAR ZONE MINE For personal use only Winston Lake Quebec BARRICK Ontario Mine Type Underground HEMLO Marathon White River ALAMOS ISLAND GOLD RENABIE Sugar Zone Property CLINE Crush, grind, and gravity and flotation Active Gold Mine Dubreuilville Processi
Slide 28: Appendix B: Ore Reserves & Mineral Resources
For personal use only Appendix B: Ore Reserves & Mineral Resources www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 27
Slide 29: Consolidated Ore Reserves as at June 2023
Consolidated Ore Reserves as at 30 June 2023(1,2) Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Gold Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces ('000s) (g/t Au) (Au '000s) ('000s) (g/t Au) (Au '000s) ('000s) (g/t Au) (Au '000s) King of the Hills For personal use only
Slide 30: Consolidated Mineral Resources as at June 2023
Consolidated Mineral Resources as at 30 June 2023(1,2) Measured Mineral Resources Indicated Mineral Resources Inferred Mineral Resources Total Mineral Resources Gold Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces ('000s) (g/t Au) (Au '000s) ('000s) (g/t Au) (Au '000s
Slide 31: Thank You
For personal use only THANK YOU Level 2, 35 Ventnor Avenue, West Perth, Western Australia 6005 Australia (61-8) 9322 4455 (61-8) 9481 5950 investors@red5ltd.com www.red5limited.com Our CORRE Values: Courage, Ownership, Respect, Reliability, Excellence Page: 30