Saracen Mineral Holdings Limited
Saracen Mineral — Doray Minerals — Diggers and Dealers 2016
35 slides from Saracen Mineral's conference presentation, Aug 1, 2016
Slide 1: Building Australia's next great gold company
Building Australia’s next great gold company Doray Minerals Limited Diggers and Dealers – 1st August 2016
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Doray Minerals Limited (“Doray”) to provide an update regarding the company to investors. Presentation information: This presentation is for information purposes only and does not constitute a prospectus or prospectus equivalent document. The informa
Slide 3: Doray Minerals - Building Australia's next great gold company
Doray Minerals - Building Australia’s next great gold company High-grade gold producer • Deflector – Australia’s newest high-grade gold mine • Andy Well – high-grade gold operation Proven project developer • Funded and built 2 new gold mines within 4 years • Track record of securing funding and rapi
Slide 4: Track record of delivery
Track record of delivery Since listing in early 2010 as a greenfields exploration company, Doray has: Discovered, funded and built one of the highest grade gold mines in Australia at Andy Well; Consistently met production and cost guidance Had ongoing exploration success across a number of pro
Slide 5: A transformational year for our Company
A transformational year for our Company… In the last 12 months we have: Funded, built and commissioned our second high-grade gold operation at Deflector Achieved production and cost guidance at Andy Well whilst maintaining an excellent safety track record Been awarded “Mine of the Year” for An
Slide 6: Rerating underway
Rerating underway… Significant increase in share price and liquidity Doray XGD ASX200 Doray’s share price has risen significantly since Deflector funding completed (@40c) Significant increase in average daily trading volume - Increased interest from off-shore investors Remains undervalued agai
Slide 7: Doray Minerals Limited - Corporate Snapshot
Doray Minerals Limited - Corporate Snapshot ASX Code DRM Board/Management Shares on Issue 310.7M Peter Lester Non-Exec Chairman Market Cap (@$1.05) A$326M Allan Kelly Managing Director (Founder) Cash/gold (Jun 16) A$39.8M Peter Alexander Non-Exec Director Debt (Jun 16) A$80.5M Leigh Junk Non-Exec Di
Slide 8: The Australian gold producer advantage
The Australian gold producer advantage Australian gold producers are enjoying record high AUD gold prices Doray's current hedging profile protects against future volatility whilst remaining exposure to gold price upside Margins of >A$600/oz are achievable in the current environment Significa
Slide 9: Deflector Gold Project
Australia’s newest high-grade gold mine Deflector Gold Project
Slide 10: Deflector Gold Project - Location
Deflector Gold Project - Location Deflector Project Doray Minerals Limited | ASX: DRM 10
Slide 11: Deflector - delivered on schedule and within budget
Deflector – delivered on schedule and within budget Funded, built and commissioned within 14 months of completion of takeover… Mar 15 Aug 15 Feb 16 May 16 Jul 16 • Takeover of • Site works • Open pit • First gold • First Mutiny commence mining pour concentrate completed • Debt/Equity • Off-take ship
Slide 12: Deflector - Delivered on schedule and within budget
Deflector – Delivered on schedule and within budget Doray Minerals Limited | ASX: DRM 12
Slide 13: Deflector - Australia's newest high-grade gold mine
Deflector – Australia’s newest high-grade gold mine Utilising the Andy Well experience to optimise funding, construction and operation Doray Minerals Limited | ASX: DRM 13
Slide 14: Deflector - Summary processing flowsheet
Deflector – Summary processing flowsheet Flotation circuit Average LOM throughput 454ktpa (480ktpa design capacity) Average LOM gravity recovery ~60% 60kozpa Au 2,500tpa Cu Au-Cu concentrate stockpile Doray Minerals Limited | ASX: DRM 14
Slide 15: Deflector - the first 18 months
Deflector - the first 18 months… Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Mining • Open pit • U/G Processing • Open pit oxide • Open pit trans. • U/G trans. • U/G fresh Doray Minerals Limited | ASX: DRM 15
Slide 16: Deflector - Substantial exploration upside
Deflector - Substantial exploration upside Under-explored greenstone belt with multiple opportunities DEFLECTOR Gullewa Greenstone Belt new geological interpretation Doray Minerals Limited | ASX: DRM 16
Slide 17: Exploration - Deflector Corridor EM Survey
Exploration – Deflector Corridor EM Survey DEFLECTOR Doray Minerals Limited | ASX: DRM 17
Slide 18: Andy Well Gold Project
High-grade Australian gold operation Andy Well Gold Project
Slide 19: Andy Well - high-grade Australian gold operation
Andy Well – high-grade Australian gold operation The first 3 years: Excellent safety record >1,000 days LTI-free Production meets guidance and exceeds BFS • 2014FY – 76,785 oz @ AISC A$1,044/oz • 2015FY – 88,736 oz @ AISC A$1,165/oz • 2016FY – 84,135 oz @AISC A$1,229/oz Processing plant runnin
Slide 20: Mining Progress vs Conceptual Mine Plan
Mining Progress vs Conceptual Mine Plan Suzie Upper Middle Suzie U/G Judy Wilber ~750m Judy Deeps Middle Deeps Wilber Deeps Doray Minerals Limited | ASX: DRM 20
Slide 21: Quarterly Production Metrics - Project to date
Quarterly Production Metrics – Project to date Production to date vs BFS Mill Throughput vs Recovery 300,000 100,000 120 250,000 80,000 100 80 200,000 60,000 60 150,000 40,000 40 100,000 20,000 20 50,000 0 0 0 2014 2015 2016 cumulative prod'n BFS cumulative prodn tonnes milled recovery Mining Millin
Slide 22: Meeting guidance...but room for improvement
Meeting guidance…but room for improvement! 1800 35,000 2016FY production and costs within guidance • 1600 30,000 84,135oz @ 8g/t 1400 • C1 A$665/oz 25,000 • AISC A$1229/oz 1200 Elevated June Qtr AISC 1000 20,000 • Increased ground support whilst mining 800 remnant 20 sub-levels 15,000 • Increase
Slide 23: Andy Well - Growing a high-grade gold camp
Andy Well – Growing a high-grade gold camp 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Feb-10 Feb-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Cumulative production Andy Well Resource Doray Minerals Limited | ASX: DRM 23
Slide 24: Wilber Lode drilling intersects new high-grade zone
Wilber Lode drilling intersects new high-grade zone High-grade quartz lodes continue at depths of >750m below surface *See ASX release dated 2 June 2016 Doray Minerals Limited | ASX: DRM 24
Slide 25: Andy Well - Gnaweeda emerging as a potential satellite operation
Andy Well – Gnaweeda emerging as a potential satellite operation Maiden Inferred Resource for Turnberry : • 4.6Mt @ 1.8g/t Au for 266,000 oz High-grade intersections beneath shallow depletion zone: • 10m @ 18.9g/t • 7m @ 41.6g/t • 41m @ 4.8g/t • 9m @ 10.4g/t 15km from Andy Well processing plan
Slide 26: Exploration and Growth
Building on our success Exploration and Growth
Slide 27: Exploration and Growth Strategy
Exploration and Growth Strategy One of Doray’s key points of difference is our commitment to greenfields exploration and discovery as a source of future production growth Near-term mine-life extensions Mid-term production opportunities Andy Well in-mine Andy Well near-mine Long-term blue-sky Horse W
Slide 28: A$15.5M Exploration Budget for 2017FY
A$15.5M Exploration Budget for 2017FY Comprehensive drilling campaigns testing a number of targets Sep Dec Mar Jun in-mine DD Andy Well RC near-mine aircore RC in-mine DD Deflector RC RC near-mine DD aircore RC Horse Well JV DD aircore aircore RC Mt Fisher JV aircore aircore West Gawler aircore airc
Slide 29: Building a project portfolio in the north eastern goldfields
Building a project portfolio in the north eastern goldfields Doray Minerals Limited | ASX: DRM 29
Slide 30: Horse Well - a new greenfields gold discovery?
Horse Well – a new greenfields gold discovery? JV with Alloy Resources (ASX:AYR) in NE goldfields • Doray 60% (opportunity to earn 80% by spending $2M over next 12 months) Geological and structural similarities to highly endowed Yandal Belt with Granny Smith and Jundee deposit analogues Dusk ‘
Slide 31: Mt Fisher - new JV over under-explored gold project
Mt Fisher – new JV over under-explored gold project Geological and structural similarities to multi-million ounce Agnew/Lawlers gold camp * Refer ASX Announcement dated 16 May 2016 31 Doray Minerals Limited | ASX: DRM
Slide 32: West Gawler, South Australia - elephant country
West Gawler, South Australia – “elephant country” Landmark farm-in over highly prospective and underexplored land position Farm-in with Iluka Resources (ASX:ILU) • Doray earning 80% by spending $7M over 6 years 20,000sqkm land position with geological similarities to Tropicana and Fraser Range
Slide 33: 2017FY Outlook
2017FY Outlook Deflector • Production and concentrate shipments ramp-up • Open pit completed - Nov/Dec • Underground production commences – Dec/Jan Andy Well • 100% U/G production for first time • Cost reduction programme underway Exploration and Growth - $15M exploration budget • Further dril
Slide 34: Doray - Building Australia's next great gold company
Doray – Building Australia’s next great gold company High grade gold producer - proven project developer – award winning explorer Doray is on the cusp of a significant increase in production and cash flow from mid-2016CY with ramp-up of production from Deflector • Capacity to generate significant
Slide 35: www.dorayminerals.com.au
Building Australia’s next great gold company www.dorayminerals.com.au For further information contact: Cameron Peacock Investorrelations@dorayminerals.com.au