Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Denver Gold Forum September 2017
33 slides from Ramelius Resources's conference presentation, Sep 25, 2017
Slide 1: Australia's Newest 200koz Gold Producer
For personal use only Australia’s Newest 200koz Gold Producer Ramelius Resources Limited Mark Zeptner - Managing Director Denver Gold Forum - September 2017 ASX:RMS
Slide 2: Forward Looking Statements
Qualification Forward Looking Statements For personal use only This presentation contains forward looking statements. The forward-looking statements are based on current expectations, estimates, assumptions, forecasts and projections and the industry in which it operates as well as other factors tha
Slide 3: Corporate Summary
Corporate Summary For personal use only Corporate Structure: at 21 September 2017 12-Month Share Price Performance (ASX:RMS) Shares on Issue 526M 0.8 100 Millions A$205M (US$164M*) 80 Market Cap 0.6 Closing Price (A$) @ A$0.39/share 60 A$50M (US$40M) 0.4 Volume Cash & Gold (Reflects A$40M up-front p
Slide 4: Profitable operations, growth through acquisition
Profitable operations, growth through acquisition For personal use only • Agreed to acquire Edna May from Evolution Mining - October 2017 Increased production profile (> 200koz) • Continue to accelerate project development wherever possible • Extensional drilling ongoing at Mt Magnet & Vivien (WA) M
Slide 5: Edna May acquisition - Overview
Edna May acquisition - Overview For personal use only ▪ Located beside the township of Westonia, 350km east of Perth ▪ 3 mining leases covering key infrastructure across 781Ha - within the Westonia Greenstone Belt ▪ Current operation developed originally by Catalpa Resources Ltd ▪ Conventional drill
Slide 6: Edna May acquisition - Geology
Edna May acquisition - Geology For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 6
Slide 7: Edna May acquisition – Key Terms
Edna May acquisition – Key Terms For personal use only ▪ Total maximum consideration of A$90M payable to Evolution, which includes: ➢ A$40M upfront payment in cash upon transaction completion, funded from cash on hand; Plus contingent consideration of: ➢ A$20M in cash or Ramelius shares, or a combin
Slide 8: Edna May acquisition – Step-change in Production
Edna May acquisition – Step-change in Production For personal use only ▪ Estimated 54% uplift in production - Ramelius immediately becomes a 200kozpa gold producer ▪ AISC to remain within current guidance of A$1,120 – A$1,220/oz ▪ Expected to deliver strong operational cashflows from initial A$40M i
Slide 9: Edna May acquisition – Step-change in Reserves
Edna May acquisition – Step-change in Reserves ▪ Group Mineral Resources to increase by ~38% to 3.044Moz For personal use only ▪ Group Ore Reserves to increase by ~105% to 0.831Moz ▪ Substantial scope to convert additional Ore Reserves through surface & underground drilling Group Resources Position
Slide 10: Operations
For personal use only Operations
Slide 11: Operations - Western Australia
Operations - Western Australia For personal use only Mt Magnet - mines & mill Mill Capacity 1.8Mtpa Resource 1.9Moz Reserve 312koz Grade 1.9g/t Life 4 years A$1,250/oz AISC (US$1,000/oz) Vivien underground Resource 198koz Reserve 123koz Grade 7.3g/t Life 4 years A$990/oz AISC (US$792/oz) Edna May -
Slide 12: Operations - Mt Magnet
Operations - Mt Magnet ▪ +6Moz gold camp, RMS since 2011 For personal use only ▪ Galaxy Mine Area ➢ Titan open pit • 165m final depth, pit completed • Average grade increased to 1.6g/t ▪ Cosmos Mine Area ➢ Milky Way open pit ➢ Stellar West open pit ▪ Water Tank Hill underground • First ore intersect
Slide 13: Operations - Galaxy open pits
Operations - Galaxy open pits For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 13
Slide 14: Operations - Titan open pit
Operations - Titan open pit For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 14
Slide 15: Operations - Water Tank Hill underground
Operations - Water Tank Hill underground ➢ Up-front capital completed, stoping to commence September 2017 Quarter For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 15
Slide 16: Operations - Vivien underground
Operations - Vivien underground ➢ Well established at full production rate, purchase price and up-front capital fully recovered For personal use only Financial Tonnes Head Ounces Quarter Processed Grade Recovered Mar 2016 7,571 7.46 1,779 Jun 2016 18,949 9.57 5,653 Sep 2016 32,647 8.22 8,367 Dec 201
Slide 17: Operations – processing & unit costs
Operations – processing & unit costs Milled Tonnes (t) use only Milled Tonnes & Head Grade Gold Production & Costs 700,000 3.00 37,500 2,000 Vivien underground WTH underground 2.75 35,000 SAG mill 1,800 600,000 Kathleen 32,500 repairs Ball mill Valley pits 2.50 30,000 motor 1,600 Saturn & 2.25 500,0
Slide 18: Production Targets - Combined Operations
Production Targets* - Combined Operations For personal use only *Production targets for contain Inferred Resources (6%), refer to slide 28 for further details. There is a low level of geological confidence associated with Inferred Resources and there is no certainty that further exploration work wil
Slide 19: Mine Life Extensions
For personal use only Mine Life Extensions
Slide 20: Mine Life Extensions - Mt Magnet
Mine Life Extensions - Mt Magnet ➢ Currently have an AC & RC drill rig on-site, plan to spend A$8.5M (US$6.8M) in FY2018 to further extend mine life For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 20
Slide 21: Mine Life Extensions - Morning Star open pits
Mine Life Extensions - Morning Star open pits ➢ Significant Mineral Resource (+500koz) at higher grade than is currently being mined at Mt Magnet For personal use only Primarily RC drilling during FY2017 • 286RC & 82AC holes drilled for 50,688m N Previous open pit Mineral Resource • Mineral Resource
Slide 22: Mine Life Extensions – Shannon open pit/underground
Mine Life Extensions – Shannon open pit/underground ➢ Shannon deposit – underground potential, with extensions down dip & south possible For personal use only Mineral Tonnes Grade Ounces Resource Indicated 448,000 5.0 72,000 Inferred 133,000 3.3 14,000 Total 581,000 4.6 86,000 Ramelius Resources Lim
Slide 23: Mine Life Extensions - Vivien
Mine Life Extensions - Vivien ➢ Deeper diamond drilling program – ongoing since May 2017 For personal use only • Bottom drill cuddy (247mRL) • +4,000m of diamond drilling completed • Latest results include; ➢ 5.6m @ 5.20g/t from 330.4 in VVDD1064 (see below) ➢ 10.3m @ 9.20g/t from 290.7m in VVDD1067
Slide 24: Greenfields Exploration
For personal use only Greenfields Exploration
Slide 25: Exploration – Farm-in & JV Projects Nevada (US)
Exploration – Farm-in & JV Projects Nevada (US) South Monitor For personal use only • Farm-in & Joint Venture Agreement with Newmont Mining Corp. ➢ Ramelius has right to earn up to 80% by spending US$8M over 8 years ➢ Ramelius must spend US$250k in first year before withdrawal ➢ Newmont has right to
Slide 26: Acquisition Based Growth - Delivering on our strategy
Acquisition Based Growth - Delivering on our strategy For personal use only • Estimated A$50M post-completion Edna May, with no debt Solid balance sheet with access to capital • Consistent operational performance, cash generating • Excellent relationships with Debt & Equity providers • Mine operatio
Slide 27: Thank you
Thank you For personal use only Ramelius Resources Limited • Denver Gold Forum – September 2017 27
Slide 28: Production Targets, Mineral Resources & Ore Reserves Note
Production Targets, Mineral Resources & Ore Reserves Note For personal use only * The Production Target – Combined Operations numbers are a production target. The overall target is based on current Probable Ore Reserves (78% ozs), Indicated Mineral Resources (17% ozs) and Inferred Mineral Resources
Slide 29: EV/Resource & EV/Reserve Multiples
EV/Resource & EV/Reserve Multiples For personal use only Australian Focused Gold Producers | Resource Multiples Australian Focused Gold Producers | Reserve Multiples $450 900 $400 800 $350 700 EV/Resource Multiple ($A per oz) EV/Resource Multiple ($A per oz) $300 600 $250 500 $200 400 $150 300 $100
Slide 30: EV/FY18 Production Multiples
EV/FY18 Production Multiples For personal use only Australian Focused Gold Producers | FY18 Production Multiples $6,000 $5,000 Production Multiple ($A per oz) $4,000 $3,000 $2,000 $1,000 $- *Based on FY18 Guidance EVN RRL NST SBM SAR PNR DRM MOY WGX SLR BLK RMS WPG *MOY production based on CY17 guid
Slide 31: Mt Magnet & Vivien - Mineral Resource Statement
Mt Magnet & Vivien - Mineral Resource Statement MINERAL RESOURCES AS AT 30 JUNE 2016 - INCLUSIVE OF RESERVES For detailed information relating to For personal use only Measured Indicated Inferred Total Resource Mineral Resources see ASX Release (RMS) Deposit Tonnes Au Au Tonnes Au Au Tonnes Au Au To
Slide 32: Mt Magnet & Vivien - Ore Reserve Statement
Mt Magnet & Vivien - Ore Reserve Statement ORE RESERVE STATEMENT AS AT 30 JUNE 2016 For personal use only For detailed information relating to Ore Proven Probable Total Reserve Reserves see ASX Release (RMS) 30 Sept Tonnes Au Au Tonnes Au Au Tonnes Au Au 2016, ‘Resources and Reserves Statement 2016’
Slide 33: Edna May – Mineral Resources & Ore Reserve Statements
Edna May – Mineral Resources & Ore Reserve Statements For personal use only Based on a A$1,350/oz gold price Ramelius Resources Limited • Denver Gold Forum – September 2017 33
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