Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (September 2020)
45 slides from Regis Resources's investor presentation, Sep 7, 2020
Slide 1: Investor Presentation
For personal use only Investor Presentation 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$2.7B 5.00 15 Millions Cash and gold on hand3 A$209M 4.00 $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$2.7B 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 Long Term 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: COVID-19 Response
7 COVID-19 RESPONSE Health & Safety of our workforce of primary concern For personal use only • Primary objective to protect the health and wellbeing of Regis employees, contractors, their families and the communities in which we operate • Health screening and testing for all persons entering the op
Slide 8: Corporate Highlights
8 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 9: Review of FY2020
9 REVIEW OF FY2020 For personal use only DELIVERING A RECORD BUSINESS PERFORMANCE: Net profit after tax of $200 million (FY19: $163 million) with a NPAT margin of 26% and ROE of 24% Dividends for FY2020 of 16 cents per share fully franked for a 4.1% grossed1 up yield EBITDA of $394 million with stro
Slide 10: Cashflow Waterfall
10 CASHFLOW WATERFALL Strong cashflow from operations of $424 million supported increased capital investment during FY20 and the For personal use only payment of $81 million in dividends during the year Cash & Bullion on Hand - 30 June 2020 $700m $424m $600m $500m ($135m) ($37m) $400m $ 3 76m ($65m)
Slide 11: FY21 Guidance
11 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 12: FY20 Financial Highlights
12 FY20 FINANCIAL HIGHLIGHTS For personal use only Record NPAT of $200M up 22% NPAT Margin of 26% EBITDA1 EPS up 22% to 39 cents per share $394m up 28% ROE of 24% EBITDA Margin 52% Full Year Dividends Cash flow from Cash & Bullion 16c per share operating activities $209m2 2.9% basic yield $343m up 2
Slide 13: Strong Performance on Key Financial Metrics
13 STRONG PERFORMANCE ON KEY FINANCIAL METRICS FY20 continues the trend For personal use only Production, Realised with 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 $Millions 150 20% 25
Slide 14: Circa Half a Billion Dollars in Dividends Since 2013
14 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 Final dividend of 8 cps ($41m) fully franked payout Total dividends for FY20 of 16 cps ($81m) fully franked 11% of FY20 revenue and 21% o
Slide 15: Continuing Production Growth
15 CONTINUING PRODUCTION GROWTH OPERATING MINES Rosemont OP and UG For personal use only STRONG MARGINS, GOOD COST CONTROL Garden Well AND STEADY OUTPUT GROWTH Moolart Well Tooheys Well Anchor Dogbolter Ounces (000’s) A$ Gold Price Gloster Erlistoun Petra Baneygo NEAR-TERM OPPORTUNITIES Garden Well
Slide 16: Industry Leader in Low Cost Production
16 INDUSTRY LEADER IN LOW COST PRODUCTION For personal use only ALL-IN SUSTAINING COSTS 2019 & 2020 Forecast (US$/OZ) $1,400 International peers (2019A) Australian peers (2020E) $1,200 $1,000 AISC (US$/oz) $800 $600 $400 $200 $0 Source: Canaccord Genuity – February 2020. FX Assumption – 0.70AUD/1USD
Slide 17: Growth Strategy Continues
17 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 18: FY21 Guidance and Medium Term Outlook
18 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 19: McPhillamys Gold Project
19 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 20: McPhillamys Gold Project
20 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 in final stages DA outcomes feed into the Definit
Slide 21: FY21 Guidance and Medium Term Outlook
21 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 22: Garden Well Underground
22 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 23: Ben Hur Open Pit – Drilling Set to Commence
23 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 24: Rosemont Underground Mine Extensions
24 ROSEMONT UNDERGROUND MINE EXTENSIONS Considerable mine life extension potential - drill testing continues Delivered In July For personal use only
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: FY21 Guidance and Medium Term Outlook
26 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Future Potential Production Step Change McPhillamys Gold Project 400,000 Discovery Ridge
Slide 27: Organic Growth Strategy
27 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 28: 8Moz Gold Discovered to Date
28 8Moz GOLD DISCOVERED TO DATE Landholding triples to 3,000 km2 giving Regis control of ~90% of the belt For personal use only Central Zone Accelerating Exploration in 2021 MOOLART WELL Budget increased to $35m for FY2021 with $25m Betelgeuse on accelerating greenfields exploration Risden Accelerat
Slide 29: Greenfields Exploration
29 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 30: Growth Strategy Continues
30 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 31: FY21 Guidance and Medium Term Outlook
31 FY21 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution For personal use only Production Guidance 355,000 – 380,000oz gold production at A$1,230-$1,300/oz AISC Future Potential Production Step Change McPhillamys Gold Project 400,000 Discovery Ridge
Slide 32: Corporate Highlights
32 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 33: Further information
For personal use only Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200
Slide 34: 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 34
Slide 35: FY2020 Full Year Financial Results
35 i) FY2020 FULL YEAR FINANCIAL RESULTS Record NPAT of For personal use only FY2020 FY2019 Unit 30 June 2020 30 June 2019 $200M up 22% Ounces Produced oz 352,042 363,418 NPAT Margin of 26% Ounces Sold oz 353,182 369,721 EPS up 22% to 39 cents Average Realised Price $/oz 2,200 1,765 ROE of 24% Sales
Slide 36: Strong Growth in Year on Year Net Profit After Tax
36 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 37: FY2020 – Profit & Loss
37 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 38: FY2020 – Cash Flow Statement
38 i) FY2020 – Cash Flow Statement 30 June 2020 30 June 2019 For personal use only $’000 $’000 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 39: FY2020 – Balance Sheet
39 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 40: FY2020 Physicals
40 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 41: Spot Deferred – Flexible Gold Hedge Book
41 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 42: Project Pipeline
42 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 43: Group Ore Reserves (31 March 2020)
APPENDIX 1 JORC COMPLIANT 43 iv)ORE RESERVE GROUP ESTIMATES ORE RESERVES (3131 MARCH March 2020) 2018 For personal use only Group Ore Reserves as at 31 March 2020 Gold Proved Probable Total Ore Reserve Cut-Off Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Tonnes Gold Grade Gold Metal Com
Slide 44: Group Mineral Resources (31 March 2020)
44 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 45: Further information
For personal use only Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200
Regis Resources — Investor Presentation (September 2020) on 6ix