Sundance Resources — Silver Lake Resources — Diggers and Dealers 2016
19 slides from Sundance Resources's conference presentation, August 2016
Slide 1: Delivering today, Developing for tomorrow, Discovering for the future
Delivering today Developing for tomorrow Discovering for the future Diggers and Dealers August 2016 ASX: SLR www.silverlakeresources.com.au ABN: 38 108 779 782 Slide 1
Slide 2: Important notices
Important notices Disclaimer - Silver Lake Resources Limited (“Silver Lake” or “the Company”) has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,
Slide 3: Mount Monger – a focussed operating strategy
Mount Monger – a focussed operating strategy Delivering today Developing for tomorrow Discovering for the future • Focus on the Mount Monger • Building a higher quality project • Self-funded exploration delivering results: Gold Camp pipeline − FY16 A$15.5 million across 3 regions − FY17 A$14 million
Slide 4: Silver Lake at a glance
Silver Lake at a glance Silver Lake Resources ASX: SLR Share price A$0.52 12 month share price range A$0.14 – A$0.52 Shares on issue 503.7 million Options and performance rights 7.7 million Diluted market capitalisation A$262M Average daily volume 3.3 million Cash & bullion A$42.6M Listed investment
Slide 5: Delivering today
Delivering today Strong operating cash flow to internally fund both mine development and exploration Gold sold FY16 increased 7% to 132.4koz – Cash & bullion FY16 increased 47% to A$42.6m – EBITDA# FY16 increased 49% to A$56.8m – AISC* FY16 decreased 4% to A$1,281/oz – Repaid 100% of bank debt o
Slide 6: Operating strategy focussed on enhancing margin
Operating strategy focussed on enhancing margin Relentless pursuit of reducing costs within the business Introduction of lower cost ore sources Exploration expenditure sustains existing high quality Resources and enhances operating margins through the discovery of new lower cost Resources Al
Slide 7: An outstanding address in a highly endowed Gold Field
An outstanding address in a highly endowed Gold Field Disciplined exploration project ranking All exploration targets ranked by the size of the PRIZE, the PROBABILITY of success & PRIORITY to the business FY17 Exploration strategy: – Sustain • UG Resource Definition (22,000m) • Project Develop
Slide 8: Delivering today, developing for tomorrow and discovering for the future
Delivering today, developing for tomorrow and discovering for the future • FY17 Sales Guidance of 135,000 to 145,000 ounces • Randalls mill at full capacity Slide 8
Slide 9: Delivering today – Daisy Complex
Delivering today – Daisy Complex Daisy Complex produced 3.23Mt @ 7.1g/t for 741koz life to date 319kt @ 7g/t for 72koz in FY16 Generated strong margins over its operational life Reliable high grade, gold producer FY17 production ounces contribution : – Development 22% – LHOS 59% – Airleg 1
Slide 10: Developing for tomorrow – Daisy Complex
Developing for tomorrow – Daisy Complex Daisy “repeats” represent high value targets Targeting extensions to lodes at shallower depths Multiple spectacular auriferous ptygmatic vein intersections including*: – 0.25m @ 1,570g/t – 0.20m @ 220g/t Potential new lode intersections in the footwall
Slide 11: Developing for tomorrow - Imperial/Majestic
Developing for tomorrow - Imperial/Majestic Pre-production stripping commenced May 2016 First ore was mined July 2016 First ore expected to be processed September 2016, following completion of mining at Santa Area Pre-development capital works A$3.8 million – Proven development model based o
Slide 12: Developing for tomorrow – Cock-eyed Bob
Developing for tomorrow – Cock-eyed Bob Five levels developed underground to 130m below surface FY16 drilling program targeted Inferred Resource extension and upgrade below the 345 level – 18 holes drilled with 12 FGV intersections Commenced development to the 330m level Q1 FY17 Additional 3
Slide 13: Developing for tomorrow - Maxwells
Developing for tomorrow - Maxwells Development commenced Potential long life, low cost gold producer High tenor Low pre-production capital – maximum drawdown A$7 million Substantial 400% increase in Mineral Resource# to 1.69Mt @ 5.67g/t for 307,000 ounces in FY16 Highly efficient $13 per
Slide 14: Discovering for the future – Daisy Complex
Discovering for the future – Daisy Complex Highly prospective known gold trends north-west of Daisy Complex deposits Targets zones hosted by extensions to existing mineralised structured within preferential stratigraphic units supported by historical broad spaced drilling, surface geochemical an
Slide 15: Discovering for the future – Mount Belches
Discovering for the future – Mount Belches Multiple near surface BIF hosted targets including: – Flora Dora – Golden Cliffs – Anomalies A-E – Z Fold Comprehensive understanding of lode signatures and controls Rapid development timeframes and low capital expenditure Flora Dora – Best historic
Slide 16: Discovering for the future – Daisy Complex
Discovering for the future – Daisy Complex Targeting repeat Daisy style lodes within development distance of Daisy Complex Extremely high value targets due to high grade, proximity to existing mine development and potential increase in OVM Structural north-westerly corridors and east-west faul
Slide 17: Discovering for the future – Santa
Discovering for the future – Santa Historical pit production of 19,000 TVM for 1,500 OVM Analogous to Maxwells Stellar high grade historical down dip gold intersections Untested plunging high grade lodes Outstanding exploration target A$1.6 million drilling program planned in FY17 Slide
Slide 18: Delivering for today, developing for tomorrow and discovering for the future
Delivering for today, developing for tomorrow and discovering for the future FY17 gold sales guidance 135,000 – 145,000 ounces Visible operating strategy at Mount Monger – relentless drive to reduce costs and maximise cash flow Strong balance sheet with no debt, A$42.6m cash & bullion Crysta
Slide 19: Appendix 1: Competent person requirements
Appendix 1: Competent person requirements The Mineral Resource and Ore Reserves estimates for the Daisy Complex (excluding Dinnie Reggio and Christmas Flats), Lorna Doone, Wombola Dam, Maxwells, Santa Area, Cock-eyed Bob, Lucky Bay, Rumbles, Caustons, Tuckabianna, TMC/Katies, Pinnacles and Lena are