Regis Resources Limited · ASX:RRL
Regis Resources — Denver Gold Forum September 2012
27 slides from Regis Resources's conference presentation, Sep 12, 2012
Slide 1: ASX cover letter: Denver Gold Forum presentation
ABN 28 009 174 761 12 September 2012 www.regisresources.com Level 1 1 Alvan Street Manager Announcements Subiaco WA 6008 Australia Company Announcements Office For personal use only PO Box 862 Australian Securities Exchange Limited Subiaco WA 6904 Australia Level 4, 20 Bridge Street P 08 9442 2200 S
Slide 2: Building a Quality Australian Gold Business
For personal use only BUILDING A QUALITY AUSTRALIAN GOLD BUSINESS DENVER GOLD FORUM SEPTEMBER 2012
Slide 3: 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 4: Purely Australian Gold Miner
PURELY AUSTRALIAN GOLD MINER For personal use only • Projects 100% Regis owned • 9.0Moz of resources1,2 • 2.9Moz of reserves1 • 2 operating mines • 1 development project • 100kozpa ramping to >400koz • Strong growth pipeline • Exclusively in Australia – low political risk Note 1 – full breakdown of
Slide 5: Corporate Overview
CORPORATE OVERVIEW For personal use only Corporate Information Share Price & Volume ASX Code RRL ASX Code RRL Shares 454m Shares 451m Last price $4.90 Last price $4.01 Market capitalisation $2.2bn Market capitalisation $1.76bn Listed options 6.9m Listed options 9.5m Unlisted options 7m Unlisted opti
Slide 6: Balance Sheet
BALANCE SHEET For personal use only Cash Cash & bullion (Jun12) $9.7m Profit & Cash-flow (Year ended 30 June 2012) Profit before Tax $74.8m NPAT $68.2m Operating cashflow (full year 30/6/12) $102.2m Debt Balance $30m Further facility available $50m Gold Hedging (Jun 12) Total (7% of JORC reserves) 1
Slide 7: Duketon Project Overview
DUKETON PROJECT OVERVIEW For personal use only • 350km north-north east of Kalgoorlie • 100% Regis owned • 303 granted leases • 1,570 km2 of ground • 6.5Moz of resources1 • 2.9Moz of reserves1 Note 1 – full breakdown of these reserves and resources in accordance with JORC is set out in Appendix 1 &
Slide 8: Ore Reserves
ORE RESERVES1 For personal use only Total Forecast LOM MT g/t Koz Opex Status (A$/oz)2 Garden Well 35.3 1.46 1,660 555 Operating Moolart Well - Laterites 8.8 1.30 367 Operating - Oxide 2.6 1.82 153 Operating MW Total 11.4 1.42 520 550 Erlistoun 2.7 2.36 203 608 Mine plan Rosemont 8.7 1.73 487 628 DF
Slide 9: Gold Production Outlook
GOLD PRODUCTION OUTLOOK For personal use only 500 Thousands Gold Production (ounces) 400 300 200 100 - 2011/12 2012/13 2013/14 2014/15 2015/16 Moolart Well Garden Well Erlistoun - GW displaced tonnes Erlistoun - extra grade Rosemont PROJECT STATUS • Moolart Well – producing • Garden Well – construct
Slide 10: Moolart Well
MOOLART WELL For personal use only • Plant commissioned August 2010 Stage Producing • Jun12 quarter 26,228oz at A$532/oz1 Mine type Open pit • Mill throughput >25% above design • > 1yr ore supply grade controlled in pit Mineralisation Laterite & oxide • Negligible ongoing capex Plant type Crush, gri
Slide 11: Moolart Well Operations
MOOLART WELL OPERATIONS For personal use only 10
Slide 12: Garden Well
GARDEN WELL For personal use only • Virgin discovery by Regis in late 2009 Stage Construction • 30km south of Moolart Well • Capex completed in line with $109m budget Mine type Open pit • Production commenced in Sept 12 Mineralisation Mixed ultramafic- • Early indications – throughput will exceed de
Slide 13: Garden Well Resource Extension Drilling
GARDEN WELL RESOURCE EXTENSION DRILLING For personal use only • 2012 drilling programme underway, 20,000m completed. • Strong results 480m south of current reserve suggesting: • Resource increase & extension of pit further to south (Dec12 qtr) 12 • Further drilling required south and at depth
Slide 14: Rosemont
ROSEMONT For personal use only • 9 kilometres north west of Garden Well Stage DFS • DFS underway on crush & grind at pit and pump ore slurry to Garden Well . Target: Mine type Open pit Construction Dec12 qtr ≈ A$40m capex Mineralisation Quartz hosted Production Sept13 qtr - 80kozpa stockwork Stron
Slide 15: Regional Exploration
REGIONAL EXPLORATION For personal use only • Testing theory regionally • Targeting areas: • Max 30m of paleochannel cover • No previous effective drilling • Numerous drill targets. • Recent results at Anchor South: • 8m @ 5,42g/t • 9m @ 3.46g/t • 12m @ 2.19g/t • 2012 regional drilling budget 90,000
Slide 16: McPhillamys Gold Project
MCPHILLAMYS GOLD PROJECT For personal use only • Acquisition announced 9/8/12 – subject to completion • 250km west of Sydney • 35km from each of Orange & Bathurst • 3 granted leases • 420 km2 of ELs • Project covered by freehold farmland (some to be acquired by Regis) • 2.5Moz of resources 15
Slide 17: Transaction Summary
TRANSACTION SUMMARY For personal use only • Purchase price $150 million ($60/resource oz) • Newmont 51% - $76.5m • Alkane 49% - $73.5m • Consideration all Regis shares at 45 day VWAP of $4.20 • Newmont 18.2m shares (3.7%, 15.2%→18.9%) • Alkane 17.5m shares (3.6%) • Conditions precedent: • Ministeria
Slide 18: Gold Resources
GOLD RESOURCES1 For personal use only Resource Tonnes Gold Ounces Category (millions) Grade (000’s) (g/t) Indicated 41.3 1.27 1,685 Inferred 16.1 1.57 815 Total 57.4 1.36 2,500 Note: 1. full breakdown in accordance with JORC in Appendix 1. Resource quoted at a 0.5g/t lower cutoff. 17
Slide 19: Geology & Resource
GEOLOGY & RESOURCE For personal use only • Resource hosted in dacite rich volcanaclastics • Mineralisation defined to > 600m below surface • Past drilling mainly focussed on defining a bulk underground position – not successful • Less drilling aimed at defining near surface open cut resources – Regi
Slide 20: Metallurgy
METALLURGY For personal use only • Deposit is partially poly-metallic with zones of Cu, Hg and gold tellurides. • Sulphides and tellurides impact gold recovery. • Early stage testwork confirms: • 85% recovery in medium to course grind • High gravity gold – average 36% (P80 of 150µm) • Bond work inde
Slide 21: Infrastructure
INFRASTRUCTURE For personal use only • Close to roads: • Mitchell Hwy 5km & Mid Western Hwy 1.5km • Rail – 8km from intermodal terminal on main east west rail thoroughfare Sydney-Perth • Power – range of transmission lines running through & close to project • Skilled mining labour in Orange and Bath
Slide 22: Target Development Timeline
TARGET DEVELOPMENT TIMELINE For personal use only 2013 2014 2015 2016 2017 Resource drill-out and reserve estimation Pre-feasibility studies & other logistics DFS Construction & development Gold production 21
Slide 23: Target Project
TARGET PROJECT For personal use only • Open pit mining • Carbon in Leach processing (as per Duketon) • Circa 4 million tonnes per annum plant • 140 – 160kozpa gold production over a minimum 10 year mine life • Target capex – Regis norm +/- 15% • Target 2nd quartile cash costs McPhillamys is an excel
Slide 24: Regis in Summary
REGIS IN SUMMARY For personal use only 500 Thousands Gold Production (ounces) 400 300 200 100 - 2011/12 2012/13 2013/14 2014/15 2015/16 No allowance for production from McPhillamys Moolart Well Garden Well Erlistoun - GW displaced tonnes Erlistoun - extra grade Rosemont • Current business generating
Slide 25: Appendix: JORC Reserves June 2011
APPENDIX 1 JORC RESERVES 30 JUNE 2011 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 35.3 1.46 1,660 35.3 1.46 1,660 0.60 Moolart Well Laterite 7.8 1.31 335 1.0 1.00 32 8.8 1.30 367 0.50 Oxide 1.4 1.
Slide 26: Appendix: JORC Resources June 2011
APPENDIX 2 JORC RESOURCES 30 JUNE 2011 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 9.8 1.45 459 1.0 0.90 29 0.3 0.88 8 11.1 1.39 496 0.50 Oxide 1.2 1.85 71 3.9 1.52
Slide 27: Appendix: Moolart Well Quarterly Operating Stats
APPENDIX 3 MOOLART WELL QUARTERLY OPERATING STATS For personal use only Dec11 Sept 11 Dec 2011 Mar 12 Jun 12 Quarter Quarter Quarter Quarter Quarter Ore mined 621,862 657,919 619,239 598,048 655,101 (tonnes) Ore milled 644,179 636,812 636,058 580,495 636,114 (tonnes) Grade (g/t) 1.34 1.40 1.44 1.28