Regis Resources Limited · ASX:RRL
Regis Resources — Q1 FY2019 Earnings Presentation
25 slides from Regis Resources's earnings presentation, Oct 19, 2018
Slide 1: September 2018 Quarterly Report & Exploration Update
For personal use only 1 REGIS RESOURCES LTD SEPTEMBER 2018 QUARTERLY REPORT & EXPLORATION UPDATE
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
Slide 3: Review of FY2019 Q1 Operations
REVIEW OF FY2019 Q1 OPERATIONS For personal use only 33 DUKETON CONTINUES TO DELIVER STRONG CASHFLOW Q1 Q4 OPERATIONS FY19 FY18 Q1 gold production 90,879 ounces, in line with Q4 Ore mined (Mbcm) 1.4 0.9 Above mid point of production guidance 340-370koz Throughput, grade & recovery all in line
Slide 4: Duketon
For personal use only DUKETON 4 4
Slide 5: FY2019 Q1 Operating Results
FY2019 Q1 OPERATING RESULTS For personal use only 55 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q1 Q4 Ore mined (Mbcm ) 0.7 0.2 0.8 0.7 1.4 0.9 Waste mined (Mbcm) 1.5 1.3 4.8 4.7 6.3 6.1 Stripping ratio (w:o) 2.2 7.4 6.1 6.9 4.4 7.0 Ore mined (Mtonnes) 1.0 0.3 2.0 1.8
Slide 6: FY2019 Q1 Operating Results – Duketon Northern Operations
FY2019 Q1 OPERATING RESULTS For personal use only 66 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q1 Q4 Ore mined (Mbcm ) 0.7 0.2 0.8 0.7 1.4 0.9 Waste mined (Mbcm) 1.5 1.3 4.8 4.7 6.3 6.1 Stripping ratio (w:o) 2.2 7.4 6.1 6.9 4.4 7.0 Ore mined (Mtonnes) 1.0 0.3 2.0 1.8
Slide 7: FY2019 Q1 Operating Results – Duketon Southern Operations
FY2019 Q1 OPERATING RESULTS For personal use only 77 Duketon Northern Duketon Southern Operations Operations Total Q1 Q4 Q1 Q4 Q4 Q4 Ore mined (Mbcm ) 0.7 0.2 0.8 0.7 1.4 0.9 Waste mined (Mbcm) 1.5 1.3 4.8 4.7 6.3 6.1 Stripping ratio (w:o) 2.2 7.4 6.1 6.9 4.4 7.0 Ore mined (Mtonnes) 1.0 0.3 2.0 1.8
Slide 8: Cashflow Waterfall
88 CASHFLOW WATERFALL For personal use only Cash & Gold on Hand - Q1 Movements $350.0m $300.0m $77.9m $250.0m $208.8m ($40.6m) $200.0m ($21.5m) $190.0m ($9.9m) ($11.7m) ($10.8m) ($2.3m) $150.0m $100.0m $50.0m - - - - - - - - Continued strong quarterly cash-flow from operations of $77.9m (Q4: $85.3m)
Slide 9: Industry Leading Dividends
INDUSTRY LEADING DIVIDENDS For personal use only 9 9 Final dividend 8 cps fully franked ($40m paid Sept 2018) Interim dividend 8 cps fully franked ($40m paid March 2018) Full year (16cps) payout key metrics: • 13.4% of FY18 revenue and 25.8% of EBITDA+ • 4.0% basic dividend yield* • 5.7% gross
Slide 10: Exploration Update – Duketon Significant Results in Q1
10 EXPLORATION UPDATE 10 For personal use only DUKETON - SIGNIFICANT RESULTS IN Q1 Drilled 75,089m (Q4: 63,577m) on 19 gold projects Rosemont & Garden Well Underground RMT 50 RC & DD holes for 15,292m - strong results GW 29 RC holes for 6,304m - strong results Moolart Well Infill drilling
Slide 11: Rosemont Maiden Underground Resource
ROSEMONT MAIDEN 11 11 UNDERGROUND RESOURCE For personal use only INFERRED RESOURCES AT 2.0G/T CUT-OFF GRADE Gold Gold Grades encouraging for the U/G mining proposition Tonnes Project Grade Metal Completion of mining study and Board development (Mt) (g/t) (koz) decision expected shortly Rosemont
Slide 12: Rosemont Underground Project
ROSEMONT UNDERGROUND 12 12 PROJECT For personal use only
Slide 13: Rosemont Underground Mine – Board Approves Development
ROSEMONT UNDERGROUND MINE For personal use only 13 13 BOARD APPROVES DEVELOPMENT Sept18Q Development commencing current quarter with permitting, ordering of long lead capital items and underground mining contract tendering process. Sept18Q Update MRE (and resource categories) for recent infill & ext
Slide 14: Rosemont Underground Mine – Expanded Rosemont Operation
ROSEMONT UNDERGROUND MINE 14 14 EXPANDED ROSEMONT OPERATION For personal use only Operating cost Open-pit Underground Total $/ounce $/ounce $/ounce Mining 407 790 554 Operating mine development capital Nil 158 61 Milling 448 132 326 Royalties (at $1,650 gold price) 74 74 74 Total operating cost 929
Slide 15: Rosemont Underground – Potential for Resource Extension
ROSEMONT UNDERGROUND 15 15 POTENTIAL FOR RESOURCE EXTENSION CONCEPTUAL LONG SECTION For personal use only EXPLORATION FROM “WITHIN THE DRIVE” Significant opportunity to conduct exploration and resource drilling from a potential underground development between the two zones in the current MRE: Ea
Slide 16: Rosemont Underground – Potential for Resource Extension
ROSEMONT UNDERGROUND 16 16 POTENTIAL FOR RESOURCE EXTENSION For personal use only Resource covers less than 1.3km of 4km strike and max depth of 150m below open pit designs In some target areas drilling would be best done from within an underground mine development Q1 drilling 50 DD & RC holes
Slide 17: Garden Well Underground Project
GARDEN WELL 17 17 UNDERGROUND PROJECT For personal use only MULTIPLE HIGH GRADE SHOOTS BELOW GARDEN WELL PIT At least 4 high grade zones below southern end of GW pit Very significant underground target Zone of continuous mineralisation 4-10m true widths & 300m N-S strike 100 – 300m below sur
Slide 18: Garden Well Underground Project – Significant Results
GARDEN WELL 18 18 UNDERGROUND PROJECT For personal use only SIGNIFICANT Q4 RESULTS Regis earlier drill results below pit include: 19.6m @ 9.47g/t Au from 318m 19m @ 6.38g/t Au from 131m 12m @ 9.52g/t Au from 179m 5m @ 22.48g/t Au from 192m 20m @ 4.28g/t Au from 270m Drill spacing in th
Slide 19: McPhillamys (NSW) Organic Growth Project
19 McPHILLAMYS (NSW) For personal use only 19 ORGANIC GROWTH PROJECT Located in Central-West NSW Well established gold mining district Cadia, Cowal, Northparkes +45Moz* Gold resource 2.31Moz Gold reserve 2.03 Moz One of Australia’s larger undeveloped open pit opportunities PFS complete
Slide 20: McPhillamys EIS and DFS Update
20 McPHILLAMYS For personal use only 20 EIS AND DFS UPDATE PEA formally submitted and DPE provided Regis with EARs during Q1 A review of EIS work stream scopes underway to ensure EARs requirements fully addressed EIS work continuing with formal submission planned early in Q3 Establishing CCC
Slide 21: McPhillamys – Discovery Ridge Expected to Deliver Significant Value
21 McPHILLAMYS 21 DISCOVERY RIDGE EXPECTED TO DELIVER SIGNIFICANT VALUE TO MGP For personal use only 100% owned Discovery Ridge deposit located 32km away from McPhillamys by major highway MRE of 13.84Mt @ 1.1g/t for 501koz* Results to date appear in line with historic results for both location
Slide 22: Managing Director & Board Succession
MANAGING DIRECTOR 22 22 & BOARD SUCCESSION Long serving Managing Director Mark Clark retiring: For personal use only Jim Beyer appointed MD and CEO effective 15 October 2018 Current director, James Mactier appointed Chairman effective late Nov18 (post AGM) Jim Beyer (MD & CEO) Past 6 years
Slide 23: Recap of Presentation
RECAP OF PRESENTATION For personal use only 23 23 Q1 gold production 90,879 ounces at AISC of A$923/oz Another very strong operational quarter at the Duketon project Production above mid-point of FY19 guidance & AISC below bottom of guidance Continued strong cash-flow from operations $77.9m
Slide 24: Appendix – JORC Ore Reserve Estimates March 2018
APPENDIX 1 JORC COMPLIANT 24 24 ORE RESERVE ESTIMATES 31 MARCH 2018 For personal use only Group Ore Reserves as at 31 March 2018 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
Slide 25: Appendix – JORC Mineral Resources March 2018
APPENDIX 2 25 25 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2018 For personal use only Group Mineral Resources as at 31 March 2018 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