Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers Mining Forum 2020
44 slides from Regis Resources's conference presentation, Oct 14, 2020
Slide 1: Diggers & Dealers Mining Forum 2020
For personal use only Diggers & Dealers Mining Forum 2020 JIM BEYER – Managing Director & CEO ASX:RRL
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT For personal use only This presentation contains only a brief overview of Regis Resources Limited and its The Company confirms that it is not aware of any new information or data that materially associated entities (“Regis or RRL") and their respective activities and operation
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW CAPITAL STRUCTURE 12 MONTH SHARE PRICE PERFORMANCE For personal use only ASX Code RRL 25 7.00 Issued capital1 510M shares 6.00 20 Market capitalisation2 A$2.6B 5.00 15 Cash and gold on hand3 A$209M 4.00 Millions $AUD 3.00 Borrowings3 Nil 10 2.00 Resources4 7.7Moz 5 1.00 Reserves
Slide 4: Corporate Details
4 CORPORATE DETAILS For personal use only A$2.6B company with 7.7Moz in Resources and 3.6Moz in Reserves Production Guidance of 355,000 - 380,000oz gold at A$1,230-$1,300/oz AISC and Growth Capital of ~A$50-60m for FY2021 Strong dividend stream with cumulative dividends of A$488m since 2013 Among th
Slide 5: Transparent Sustainability and ESG Reporting
5 TRANSPARENT SUSTAINABILITY AND ESG REPORTING Aligning to UN Sustainable Development Goals For personal use only Safety & Environmental Health Stewardship Supply Chain Shared Values Risk with Host Management Communities Employment + Workforce Management Corporate Conduct Indigenous Opportunities +
Slide 6: People – The Foundation of Our Success
6 PEOPLE – THE FOUNDATION OF OUR SUCCESS Total 950 people – 338 employees & 612 contractors For personal use only Lost Time Injury Frequency Rate 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Renewed focus on safety performance and training Pockets of excellence but overall outcomes still inconsistent Risk management
Slide 7: Corporate Highlights
7 CORPORATE HIGHLIGHTS For personal use only Consistent Among the Lowest Operational Delivery Cost Producers Strong Track Record Clear Internal Growth of Dividend Returns Path
Slide 8: Industry Leader in Low Cost Production
8 INDUSTRY LEADER IN LOW COST PRODUCTION For personal use only ALL-IN SUSTAINING COSTS 2020 (US$/OZ) International peers (2020E) $1,600 Australian peers (FY20A) $1,400 $1,200 AISC (US$/oz) $1,000 $800 $600 $400 Source: Canaccord Genuity – Aug 2020. FX Assumption – 0.70AUD/1USD
Slide 9: FY20 Highlights
9 FY20 HIGHLIGHTS For personal use only Full Year Dividends Record NPAT of A$200M EBITDA1 16c per share NPAT Margin of 26% A$394m up 28% ROE of 24% 2.9% basic yield EBITDA Margin 52% 4.1% grossed up yield2 WHILE ALSO PROGRESSING FUTURE GROWTH: McPhillamys Development Application submitted and Respon
Slide 10: Cashflow Waterfall
10 CASHFLOW WATERFALL Strong cashflow from operations of A$424 million supported increased capital investment during FY20 and the payment of A$81 million in dividends during the year For personal use only Cash & Bullion on Hand1 - 30 June 2020 $700m $424m $600m $500m ($135m) ($37m) $400m $ 3 76m ($6
Slide 11: Strong Consistent Performance on Key Financial Metrics
11 STRONG CONSISTENT PERFORMANCE ON KEY FINANCIAL METRICS FY20 continues the trend For personal use only Production, Realisedwith Production Gold Price & AISC Net Profit After Tax and Margin Realised Gold Price and AISC 250 35% 400 361 363 $2,500 352 30% 350 324 200 310 305 $2,000 25% 300 150 $Milli
Slide 12: Circa Half a Billion Dollars in Dividends Since 2013
12 CIRCA HALF A BILLION DOLLARS IN DIVIDENDS SINCE 2013 Regis continues to be an Australian gold industry leader on dividend payment metrics For personal use only Total dividends for FY20 of 16 cps (A$81m) fully franked 2.9% basic dividend yield1 4.1% grossed up (for 100% franking) dividend yield Re
Slide 13: FY21 Guidance
13 FY21 GUIDANCE For personal use only Regis is expecting a strong year of growth within the operations as production continues to lift in line with the targeted growth profile heading to 400,000oz pa from internal development options. Production rate is planned to lift above historic annual rate in
Slide 14: Continuing Production Growth
14 CONTINUING PRODUCTION GROWTH OPERATING MINES Rosemont OP and UG For personal use only STRONG MARGINS, GOOD COST CONTROL Garden Well AND STEADY OUTPUT GROWTH Moolart Well Tooheys Well Anchor Dogbolter Gloster Erlistoun Ounces (000’s) A$ Gold Price Petra Baneygo NEAR-TERM OPPORTUNITIES Garden Well
Slide 15: Growth Strategy Continues
15 GROWTH STRATEGY CONTINUES For personal use only Underground Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Ben Hur Expansion Expansion Expansion Expansion Major Discovery New Projects Ridge Active projects New sustaining projects Duketon Duketon N
Slide 16: FY21 Guidance and Medium Term Outlook
16 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge 300,000 Potential Incremental Additions at Duketon Production (ounces) Be
Slide 17: McPhillamys Gold Project
17 MCPHILLAMYS GOLD PROJECT 100% owned and one of Australia’s largest undeveloped open pittable gold resources For personal use only MINERAL RESOURCE 2.29 Moz of gold ORE RESERVE 2.02 Moz of gold With more potential at Discovery Ridge Mineral Resource – 10.4Mt @ 1.2 g/t Au for ~390koz ANNUAL PRODUCT
Slide 18: McPhillamys Gold Project
18 MCPHILLAMYS GOLD PROJECT A Significant Organic Growth Opportunity For personal use only Development Application (DA) is progressing – Exhibition and Submission period has closed with no objections from any regulators Regis’ Response to Submissions lodged DA outcomes feed into the Definitive Feasi
Slide 19: FY21 Guidance and Medium Term Outlook
19 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge 300,000 Potential Incremental Additions at Duketon Production (ounces) Be
Slide 20: Garden Well Underground
20 GARDEN WELL UNDERGROUND South zone Maiden Mineral Resource and Ore Reserve expected in H1 FY21In July For personal use only GW South UG Zone of continuous mineralisation: • up to 10m true widths • 80 – 100m height and • 300m N-S strike and • extends >300m below surface • Remains open GW North Zon
Slide 21: Baneygo Underground Potential
21 BANEYGO UNDERGROUND POTENTIAL Multiple high grade intercepts under Central Pit demonstrate potential For personal use only Quartz dolerite host, same geology and mineralisation style as Rosemont High-grade vein systems expected to grow Recent Highlights: 2m @ 11.4 g/t Au 1m @ 84 g/t Au 14m @ 8.6
Slide 22: Rosemont Underground Mine Extensions
22 ROSEMONT UNDERGROUND MINE EXTENSIONS Considerable mine life extension potential - drill testing continues Delivered In July For personal use only
Slide 23: FY21 Guidance and Medium Term Outlook
23 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge 300,000 Potential Incremental Additions at Duketon Production (ounces) Be
Slide 24: Ben Hur Open Pit – Drilling Set to Commence
24 BEN HUR OPEN PIT – DRILLING SET TO COMMENCE High-grade southern plunge highlights growth potential July For personal use only Mineral Resources: 5.8Mt @ 1.6 g/t Au for 290koz • Broad intercepts remain open down-plunge & dip • Drilled well to 120m below surface • 2km N-S strike Significant high-gr
Slide 25: Moolart Well Expansion
25 MOOLART WELL EXPANSION Conversion of low-grade resources into reserves For personal use only • Conceptual work begun on the opportunities which may exist to extend the operating life if higher gold prices are used for Ore Reserve • Significant low-grade, oxide resources could potentially be explo
Slide 26: Organic Growth Strategy
26 ORGANIC GROWTH STRATEGY Exploration budget increased to $35m - accelerating new discoveries For personal use only Exploration Production Growing Ore Reserves Stage 4 & 5 exploration is designed to drill resources to a confidence level suitable for reserve assessment Reserve Assessment Geophysics
Slide 27: 8Moz Gold Discovered to Date
27 8Moz GOLD DISCOVERED TO DATE Landholding triples to 3,000 km2 giving Regis control of ~93% of the belt For personal use only Central Accelerating Exploration in 2021 Zone Exploration budget increased to A$35m for FY21 MOOLART WELL Greenfields exploration portion now A$25m in Betelgeuse FY21 versu
Slide 28: Greenfields Exploration
28 GREENFIELDS EXPLORATION Early stage exploration at the Risden Well basin yielding results at Betelgeuse For personal use only Betelgeuse Prospect generating excitement Late basins host multi-million-ounce gold deposits in the Eastern Goldfields Signs of a large hydrothermal system with potential
Slide 29: Growth Strategy Continues
29 GROWTH STRATEGY CONTINUES For personal use only Underground Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Ben Hur Expansion Expansion Expansion Expansion Major Discovery New Projects Ridge Active projects New sustaining projects Duketon Duketon N
Slide 30: FY21 Guidance and Medium Term Outlook
30 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge 300,000 Potential Incremental Additions at Duketon Production (ounces) Be
Slide 31: Corporate Highlights
31 CORPORATE HIGHLIGHTS For personal use only Consistent Operational Among the Lowest Cost Delivery Producers Strong Track Record of Clear Strong Internal Growth Dividend Returns Path
Slide 32: Further information
For personal use only Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200
Slide 33: Appendix
APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018 For personal use only APPENDICES i) FY20 Financial Results ii) Hedging Strategy Details iii) Project Pipeline iv) Reserves and Resources - 31 March 2020 33
Slide 34: Strong Growth in Year on Year Net Profit After Tax
34 i) STRONG GROWTH IN YEAR ON YEAR NET PROFIT AFTER TAX FY20 continues the growth trend For personal use only Net Profit After Tax - 30 June 2020 $250m $61m $5m ($9m) ($1m) $200m $200m ($15m) ($5m) $163m $150m $100m $50m - - - - - -
Slide 35: FY2020 Full Year Financial Results
35 i) FY2020 FULL YEAR FINANCIAL RESULTS Record NPAT of A$200M up 22% For personal use only FY2020 FY2019 Unit 30 June 2020 30 June 2019 NPAT Margin of 26% Ounces Produced oz 352,042 363,418 EPS up 22% to 39 cents Ounces Sold oz 353,182 369,721 Average Realised Price $/oz 2,200 1,765 ROE of 24% Sale
Slide 36: FY2020 – Profit & Loss
36 i) FY2020 – Profit & Loss 30 June 2020 30 June 2019 For personal use only $’000 $’000 Revenue 756,657 654,807 Cost of goods sold (452,011) (401,970) Gross profit 304,646 252,837 Other income (150) 4,379 Investor and corporate costs (3,408) (2,521) Personnel costs (10,062) (9,360) Share-based paym
Slide 37: FY2020 – Cash Flow Statement
37 i) FY2020 – Cash Flow Statement 30 June 2020 30 June 2019 $’000 $’000 For personal use only Cash flows from operating activities Receipts from gold sales 755,791 652,450 Payments to suppliers and employees (348,923) (326,680) Income tax paid (63,792) (53,971) Other receipts/(payments) (63) 3,686
Slide 38: FY2020 – Balance Sheet
38 i) FY2020 – Balance Sheet 30 June 2020 30 June 2019 $’000 $’000 Current assets For personal use only Cash and cash equivalents 192,428 188,697 Inventories 74,430 56,077 Other current assets 10,847 10,141 Total current assets 277,705 254,915 Non-current assets Inventories 63,503 55,898 Property, p
Slide 39: FY2020 Physicals
39 i) FY2020 PHYSICALS For personal use only FY 2020 FY2019 Physicals DNO DSO TOTAL TOTAL Variance Ore mined (Mbcm) 1.36 2.80 4.16 4.28 -3% Waste mined (Mbcm) 6.81 19.56 26.37 28.12 -6% Stripping ratio (w:o) 5.0 7.0 6.3 6.6 -5% Ore mined (Mtonnes) 2.75 7.23 9.98 10.14 -2% Ore milled (Mtonnes) 3.00 6
Slide 40: Spot Deferred – Flexible Gold Hedge Book
40 ii) “SPOT DEFERRED” – FLEXIBLE GOLD HEDGE BOOK (30 June 2020) For personal use only Regis’ hedge position reduced to ~399koz at an average of A$1,614/oz. 2,500 2,333 Regis is currently actively managing the process of selling into the 2,000 lowest price hedges and reduced its hedges by approximat
Slide 41: Project Pipeline
41 iii) PROJECT PIPELINE For personal use only Moolart Well Ext. Baneygo – Idaho UG McPhillamys Gloster UG Discovery Ridge Moolart Well Garden Well UG Beamish Garden Well OP Expansion Garden Well Gloster Duketon Greenstone Belt Russells Baneygo Rosemont OP and UG Gard
Slide 42: Group Ore Reserves (31 March 2020)
APPENDIX 1 JORC COMPLIANT 42 iv)ORE GROUP ORE RESERVES RESERVE ESTIMATES (3131 MARCH March 2020) 2018 For personal use only Group Ore Reserves as at 31 March 2020 Gold Proved Probable Total Ore Reserve 3 Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal C
Slide 43: Group Mineral Resources (31 March 2020)
43 iv) GROUP MINERAL RESOURCES (31 March 2020) For personal use only Group Mineral Resources as at 31 March 2020 Gold Measured Indicated Inferred Total Resource Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Proje
Slide 44: Further information
For personal use only Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200
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