Regis Resources Limited · ASX:RRL

Regis Resources — Shareholder Meeting (November 2016)

34 slides from Regis Resources's shareholder meeting presentation, Nov 18, 2016

  1. Slide 1: Regis Resources Ltd Annual General Meeting

    For personal use only 1 1 REGIS RESOURCES LTD ANNUAL GENERAL MEETING 18 NOVEMBER 2016

  2. Slide 2: Disclaimer & Competent Persons Statement

    DISCLAIMER & COMPETENT PERSONS 22 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

  3. Slide 3: Corporate

    3 CORPORATE 3 CAPITAL STRUCTURE For personal use only BOARD & MANAGEMENT Shares on issue 500m Mark Clark Executive Chairman & CEO Last price $2.83 Paul Thomas Executive Director & COO Market capitalisation A$1,487m Mark Okeby Non Executive Deputy Chairman Daily turnover (no. shares) 7m Ross Kestel N

  4. Slide 4: Gold Price

    4 GOLD PRICE 4 For personal use only ONE YEAR GOLD PRICE PERFORMANCE 1,900 AUD$ GOLD PRICE UP 6% TO $1,613 1,800 1,700 1,600 1,500 USD$ GOLD PRICE UP 12% TO $1,218 1,400 1,300 1,200 1,100 1,000

  5. Slide 5: Irrespective of Gold Price - Control the Things We Can

    IRRESPECTIVE OF GOLD PRICE - 5 5 CONTROL THE THINGS WE CAN For personal use only OUTSIDE OF OUR CONTROL WITHIN OUR CONTROL  Increase gold production over the medium term  Maintain low costs relative to industry peer group  Grow reserves through exploration and generate a development pipeline

  6. Slide 6: Operations Outlook

    6 OPERATIONS OUTLOOK 6 2017 – 2019 DUKETON PROJECT PRODUCTION GUIDANCE & TARGETS For personal use only 380,000 370,000 360,000 2019 350,000 TARGET 340,000 2018 330,000 340,000 TARGET GOLD PRODUCTION (OUNCES) 320,000 2017 GUIDANCE 320,000 300,000 2016 300,000 ACTUAL 280,000 305,084 260,000 240,000 22

  7. Slide 7: AISC Cost Curve

    MACQUARIE RESEARCH GLOBAL GOLD COVERAGE 7 7 AISC COST CURVE FY2016 ALL IN SUSTAINING COSTS (US$/OUNCE) For personal use only 1,400 1,300 1,200 1,100 1,000 US$ per ounce 900 800 700 600 500 400 Source: Macquarie Research note “Australian Gold Miners” 12 September 2016

  8. Slide 8: Forecast Ex AISC 2017 Capex Cost Curve

    MACQUARIE RESEARCH GLOBAL GOLD COVERAGE 8 8 FORECAST EX AISC 2017 CAPEX COST CURVE FORECAST FY2017 CAPEX SPEND (US$/OUNCE) For personal use only 1,000 900 800 700 600 US$/OUNCE 500 400 300 200 100 0 Source: Macquarie Research note “Australian Gold Miners” 12 September 2016

  9. Slide 9: Duketon Reserve Growth

    9 DUKETON RESERVE GROWTH 9 For personal use only RESERVES INCREASE TO 2.13Moz – MORE THAN REPLACING FY16 PRODUCTION Total Ore Reserve Tonnes Gold Grade Gold Metal (Mt) (g/t) (koz) 31 March 2015 59.1 1.06 2,006 Depleted by Mining to 31/3/16 -10.6 0.96 -326 31 March 2015 Net of Depletion 48.5 1.08 1,6

  10. Slide 10: Duketon Exploration

    10 DUKETON EXPLORATION 10 For personal use only DUKETON KEEPS GIVING  Huge exploration effort in FY16:  155,000 metres drilled  20 projects  ≈$15m spend  Delivering big rewards:  +1.4Moz resources added/upgraded  Gloster, Baneygo & TW  +400Koz reserves added  Gloster, Baneygo & Ops  Large

  11. Slide 11: Tooheys Well

    11 TOOHEYS WELL 11 For personal use only ORGANIC GROWTH CONTINUES – 547,000 OUNCE MAIDEN RESOURCE Tonnes Gold Grade Gold Metal (Mt) (g/t) (koz) Tooheys Well Inferred Mineral Resource at 0.4g/t lower cut 14.6 1.16 547 Further details on maiden Tooheys Well Inferred Resource can be found in ASX announ

  12. Slide 12: Tooheys Well

    12 TOOHEYS WELL 12 For personal use only ORGANIC GROWTH CONTINUES – 547,000 OUNCE MAIDEN RESOURCE Tonnes Gold Grade Gold Metal (Mt) (g/t) (koz) Tooheys Well Inferred Mineral Resource at 0.4g/t lower cut 14.6 1.16 547  Resource above 1.0g/t cut-off is 6.7Mt at 1.77g/t for 379,000 ounces – 70% of quo

  13. Slide 13: Tooheys Well Gold Prospect Drilling Cross Section

    TOOHEYS WELL GOLD PROSPECT For personal use only 13 13 DRILLING CROSS SECTION 6909340mN  Steep E dipping high grade gold shear  Chert BIF and shale host rocks  Weathered 80-160m  Significant intercepts  39m @ 2.86g/t from 53m  17m @1.90g/t from 95m  27m @ 2.48g/t from 55m  50m @ 2.75g/t from

  14. Slide 14: Exploration Upside: Tooheys Well-Garden Well Corridor

    EXPLORATION UPSIDE 1414 TOOHEYS WELL-GARDEN WELL CORRIDOR For personal use only UNTESTED POTENTIAL NORTH & SOUTH OF TOOHEYS WELL North  TW structure interpreted to join gold shear zones at Chert Ridge (GW) 2.5km north.  Early drilling encouraging:  15m @1.15g/t & 25m @ 1.41g/t  Drilling planned

  15. Slide 15: Paul Thomas, Chief Operating Officer

    For personal use only 15 15 REGIS RESOURCES LTD PAUL THOMAS CHIEF OPERATING OFFICER

  16. Slide 16: Review of FY2016 Operations

    REVIEW OF FY2016 OPERATIONS For personal use only 16 16 PRODUCTION ABOVE GUIDANCE & DELIVERING STRONG CASHFLOW FY16 FY15 OPERATIONS Ore mined (Mbcm) 4.63 4.65  FY16 production 305,084 ounces  Slightly lower (2%) than FY15 due to lower Waste mined (Mbcm) 22.62 23.70 scheduled grade, particularly at

  17. Slide 17: Operations Outlook: FY2017 Guidance

    OPERATIONS OUTLOOK 17 17 FY2017 GUIDANCE For personal use only  Gold production 300,000 – 330,000 ounces  Cash costs $840 – $910 per ounce  AISC $980 – $1,050 per ounce  Growth Capex: $27m Major components of growth capital: • Gloster pre-production capital $7m • Erlistoun pre-production capital

  18. Slide 18: Gloster Project Moving Towards Production

    18 FAMOUS GLOSTER BLUE GOLD GEOLOGY PROJECT 18 For personal use only MOVING TOWARDS PRODUCTION  Simple low strip open cut mining and  All statutory approvals for development in road haulage operation place  Low startup capex - $7m in FY2017.  Road construction, MW camp expansion  More than 3 ye

  19. Slide 19: Exploration: Significant Results at Duketon

    EXPLORATION For personal use only 1919 SIGNIFICANT RESULTS AT DUKETON IN SEPT16Q Completed 51,268m (Q4: 37,179m) of drilling on 12 gold projects  Tooheys Well – 2.5km S of Garden Well • RC drilling continues to return high grades • EM survey & extensional drilling in Q2  Rosemont South • Strong in

  20. Slide 20: Rosemont South Project

    ROSEMONT SOUTH PROJECT For personal use only 2020 POTENTIAL FOR OPEN PIT & UNDERGROUND MINING INVENTORY EXTENSION  Testing high grade shoots 50-300m below surface over 500m strike, some outside reserves  Drilled 47 holes for 4,643m in Q1  Significant results pointing to both open pit and undergro

  21. Slide 21: Rosemont South Project Drill Results in Q1

    ROSEMONT SOUTH PROJECT For personal use only 21 21 DRILL RESULTS IN Q1  Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit  Gold mineralised quartz-dolerite unit is approx 80m wide.  Q1 Results  10m @ 30.11g/t Au from 48m  4m @ 7.72g/t Au from 52m  2m @ 18.48g/t Au from 7

  22. Slide 22: Rosemont - Underground

    ROSEMONT - UNDERGROUND For personal use only 22 22 3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2 DRILLING UNDERWAY TO TEST UNDERGROUND POTENTIAL BELOW ROSEMONT MAIN PIT  Numerous high grade exploration and resource-def intercepts below RMT pit design

  23. Slide 23: Kim Massey, Chief Financial Officer

    For personal use only 23 23 REGIS RESOURCES LTD KIM MASSEY CHIEF FINANCIAL OFFICER

  24. Slide 24: 2016 Financial Highlights

    2016 FINANCIAL HIGHLIGHTS For personal use only 24 24 NPAT up 29% to Revenue up 8% EBITDA up 29% $112 million to $502 million to $234 million Net cash and Full year bullion increased dividend of 13 by $78 million cents per share

  25. Slide 25: Strong Performance on All Profit Measures

    STRONG PERFORMANCE ON ALL 25 25 PROFIT MEASURES For personal use only Revenue Net Profit After Tax 600 120 112 502 500 465 100 87 372 $ MILLIONS 400 $ MILLIONS 80 300 55 60 200 40 100 20 0 0 2014 2015 2016 2014 2015 2016 EBITDA 30 Earnings & Dividend Per 250 234 50% Share 22.4 CENTS PER SHARE EBITDA

  26. Slide 26: Strong Operating Margin

    STRONG OPERATING MARGIN For personal use only 26 26 Operating Margin $1,600/oz $1,200/oz $800/oz $400/oz $0/oz Jun 15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Cash cost after royalty AISC gold price hedge price  Growing operating margin from disciplined cost control and increasing AUD gold price.  Reneg

  27. Slide 27: Cashflow Waterfall

    27 CASHFLOW WATERFALL 27 For personal use only $350m Cash & Gold on Hand Movements - FY2016 $233.4m 1 ($50.0m) $300m ($35.2m) $250m ($20.0m) $200m ($18.1m) ($21.3m) ($22.9m) $150m ($5.2m) ($1.8m) $123.3m $100m $64.5m $50m - Strong cash-flow from operations of $233.4m for FY2016 allowed full debt rep

  28. Slide 28: Dividend

    28 DIVIDEND 28 For personal use only 2016  Final dividend declared 9 cents per share fully franked ($45 million) Paid 31 August 2016  Interim dividend 4 cps fully franked ($20m paid February 2016)  Full year (13cps) payout key metrics:  13% of FY16 revenue  3.2% basic dividend yield*  4.6% gro

  29. Slide 29: Mark Clark, Executive Chairman

    For personal use only 29 29 REGIS RESOURCES LTD MARK CLARK EXECUTIVE CHAIRMAN

  30. Slide 30: McPhillamys (NSW)

    30 McPHILLAMYS (NSW) 30 For personal use only WWTW Bathurst McPhillamys Gold Project

  31. Slide 31: McPhillamys: Infill Drilling Underway for PFS

    31 McPHILLAMYS (NSW) 31 For personal use only INFILL DRILLING UNDERWAY FOR PFS  Located Central-West NSW • Well established gold mining district • Cadia, Cowal, Northparkes +45Moz*  Gold resource 2.2Moz - 100% Regis  Conceptual studies show viable project  Infill Drilling Underway • 25,000m ($3m

  32. Slide 32: Regis Targets & Outlook

    REGIS TARGETS & OUTLOOK 3232 2016 Goals 2016 Actual For personal use only Production 275-305koz Production 305.1koz FY17 guidance 300,000 – 330,000 ounces Medium term production targets rising AISC $970-1,050/oz AISC $927/oz Operating cashflow $150m Operating cashflow $233.4m Organic reserve growth

  33. Slide 33: Appendix: JORC Compliant Ore Reserve Estimates March 2016

    APPENDIX 1 JORC COMPLIANT 33 33 ORE RESERVE ESTIMATES 31 MARCH 2016 For personal use only Group Ore Reserves as at 31 March 2016 Gold Proved Probable Total Ore Reserve Competent Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Project Type Person3 (g/t)2

  34. Slide 34: Appendix: JORC Compliant Mineral Resources March 2016

    APPENDIX 2 34 34 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2016 Group Mineral Resources For personal use only as at 31 March 2016 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

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