Focus Minerals Ltd · ASX:FML
Focus Minerals — Shareholder Meeting (November 2011)
36 slides from Focus Minerals's shareholder meeting presentation, Nov 29, 2011
Slide 1: FY 2011 AGM, Coolgardie, Western Australia
FFT:FZA ASX:FML FOCUS MINERALS LIMITED For personal use only FY 2011 AGM, Coolgardie, Western Australia ASX:FML FFT:FZA Monday 28th November 2011 www.focusminerals.com.au
Slide 2: Disclaimer and Competent Person's Statement
Disclaimer and Competent Person’s Statement This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. For personal use only The information in this presentation is an overview and does not contain all information necessary for investment d
Slide 3: Agenda
Agenda For personal use only 1. 2011: A Transformational Year 2. Operational Update 3. Strategic Update: 2012 and beyond 3
Slide 4: 2011: A Transformational Year
2011: A TRANSFORMATIONAL YEAR Empress open pit For personal use only Tindals Underground 4
Slide 5: 2011 Strategic Goals
2011 Strategic Goals For personal use only To “Expand Aggressively into a Rising Gold Price” Deliver increased production & geographical diversity Target to be producing +200,000oz in 2012 Sustain profitability whilst growing operations Cash Flow Positive from operations 5
Slide 6: Key Areas of Delivery
4 Key Areas of Delivery For personal use only Grow Discover & Grow Through Build New Mines Develop More Acquisition Organically Reserves • Record production • Moved from 1 mine to • Took drill rigs outside Tindals • Takeover of Crescent from Tindals open 2 new mines in Mining Centre to Great
Slide 7: Delivered Solid Growth for FY
Delivered Solid Growth for FY 11 Delivered against backdrop of strong investment into the business to position for significant growth in 2012 For personal use only Production Resources Reserves 80,000 2,300,000 300,000 2,200,000 250,000 60,000 2,100,000 200,000 40,000 2,000,000 150,000 1,900,000 100
Slide 8: Crescent Acquisition Has Been a Game Changer
Crescent Acquisition Has Been a Game Changer Transformative For personal use only - Acquisition of Crescent Gold Doubled Laverton Operations has Resource completely transformed the metrics of our business. Bonus Tripled 1.5Mtpa Value Accretive Reserves mill - Value acquisition at circa $70m in scrip
Slide 9: Strong Production and Exploration Pipeline
Strong Production and Exploration Pipeline The combined group has a strong portfolio of expanding mine operations and For personal use only a significant exploration pipeline of both greenfields and brownfields opportunities 3 x Major Regional Exploration Projects 2 x Mining Regions 4 x Mines
Slide 10: Operational Update
10 For personal use only OPERATIONAL UPDATE
Slide 11: Strategic Assets
Strategic Assets Focus Asset Base Crescent Asset Base For personal use only Coolgardie Production Laverton Gold Project Laverton Production • Tindals Mining Centre – underground • Laverton open pit mine & open pit • 1.5Mtpa Barnicoat mill • The Mount underground 85km to south • Ore processing agreem
Slide 12: Production Centres: Tindals Mining Centre Underground
Production Centres: #1. Tindals Mining Centre Underground - 55,000oz pa Summary: For personal use only Long-term stable production at 55,000oz pa Underground operation delivering 600,000tpa Average grade 3.5g/t Resource: 3.1Mt @ 4.4g/t for 444,000oz Reserve: 1.0Mt @ 3.6g/t for 115,000oz Achievements
Slide 13: Positioned for Sustained Production
Positioned for Sustained Production Outlook: For personal use only Sustained production at 55,000ozpa (mined and replaced over 200,000oz of reserves in last 3 years). Strong delivery from Countess ore body Continued focus on Resource and Reserve expansion and project development 13
Slide 14: Production Centres: Tindals Mining Centre Open Pits
Production Centres: #2. Tindals Mining Centre Open Pits - 25,000oz pa Strategic Summary: For personal use only Significant surface resources close to mill Saw opportunity to develop low-cost production ounces to displace low-grade Targeting 25,000oz pa sustainable over 5 years Achievement: New opera
Slide 15: Five Year Mine Life Potential
Five Year Mine Life Potential Outlook For personal use only 360,000tpa Average grade 2.1g/t Total surface Resource: 19.5Mt @ 2.1g/t for 1.3Moz Total surface Reserve: 1.7Mt @ 1.8g/t for 99,500oz Currently ramping up to steady state production Multiple surface targets and reserves at centre provide st
Slide 16: Production Centres: The Mount Underground
Production Centres: #3. The Mount Underground - 40,000oz pa Strategic Summary For personal use only High-grade deposit within economic distance of Three Mile Hill mill Trial mining delivered 30,000t @ 8.0g/t Took development approach to exploration moving mine into production in March Quarter 2011 A
Slide 17: The Mount – Narrow Vein High-Grade Mining
The Mount – Narrow Vein High-Grade Mining Outlook For personal use only Ramping up to +20,000tpm run rate Target grade 5.5g/t. Target ounces 40,000ozpa Resource: 2.1Mt @ 5.5g/t for 370,000oz Expanding ore zones through diamond drilling and jumbo development Resource and Reserve expansion Rory updati
Slide 18: Crescent's Laverton Gold Project Open Pits
Production Centres: #4. Crescent’s Laverton Gold Project Open Pits - 100,000oz pa For personal use only Strategic Summary Multiple large open pits Ore processing agreement with Barrick at Granny Smith provides exceptional unit costs Agreement works for both parties 2.3Mtpa throughput Average grade 1
Slide 19: Laverton on Track to 25,000oz Per Quarter
Laverton on Track to 25,000oz Per Quarter Mary Mac Hill What we have achieved already For personal use only Operations on track to deliver 100,000oz in 2012 Three new pits into production: - Mary Mac Hill (Reserve of 306,000t @ 1.8g/t for 18,000oz) - Fish (Reserve 292,000t @ 3.5g/t for 33,000oz) - A
Slide 20: Consistency to Drive Profitability: Upside on Chatterbox Shear
Consistency to drive profitability: Upside on Chatterbox Shear For personal use only 2012 Strategic Focus Moving operations to consistency - Targeting 25,000oz in Campaign 10 (March Quarter) - Production stability will enable cost control - Targeting to bring cash costs down to around $1,100/oz. - S
Slide 21: Greenfields Exploration: Treasure Island Gold Project
Greenfields Exploration: Treasure Island Gold Project For personal use only 100% ownership. 226 sq. km of tenements First holes ever into the area Multiple vein arrays of +300m strike length on Island 21
Slide 22: Treasure Island – Black Dog
Treasure Island – Black Dog For personal use only 22
Slide 23: Treasure Island – Blind Pew
Treasure Island – Blind Pew For personal use only 23
Slide 24: Treasure Island – Aircore Program
Treasure Island – Aircore Program For personal use only 24
Slide 25: Treasure Island – Cross-section
Treasure Island – Cross-section For personal use only 25
Slide 26: Treasure Island – Aeromagnetics
Treasure Island – Aeromagnetics For personal use only 26
Slide 27: Strategic Update: 2012 & Beyond
STRATEGIC UPDATE: 2012 & BEYOND For personal use only 27
Slide 28: 2012 Strategic Focus
2012 Strategic Focus For personal use only 1. Capitalising on a Strong • Targeting +200,000oz of gold in 2012 Production Platform • Producing from 4 mines across 2 regional centres in WA 2. A Leading, Profitable • Delivering strong ongoing cash flows, production and profitability: Producer — Company
Slide 29: Delivering Strong Production Growth in 2012 & Beyond
Delivering Strong Production Growth in 2012 & Beyond The Focus in 2012 will be on ramping up the two new Coolgardie mines to For personal use only capacity and delivering stable production at Laverton +200,000oz Double Production 72,830oz 62,296oz 41,401oz FY 08 FY 09 FY 10 FY 11 CY 12 (F) Productio
Slide 30: Comparative Production Last Quarter
Comparative Production Last Quarter For personal use only 587,296 30
Slide 31: Cash Operating Costs
Cash Operating Costs For personal use only Focus’s Coolgardie Costs (averaging $900/oz.) are in the median in the Goldfields: Targeting to bring Crescent costs down to $1,100/oz. 31
Slide 32: Operational Outlook: December Quarter & Beyond
Operational Outlook: December Quarter & Beyond For personal use only Coolgardie on Track • Mill shut down will see December Quarter deliver 20 -25 Koz • On Track to 25,000oz for March Quarter. • Continual ramp up of Tindals Open Pits and The Mount underground through year Laverton on Track • Deliver
Slide 33: 2011 Has Established a Platform for Significant Growth in 12
2011 Has Established a Platform for significant growth in 2012 Targeting For personal use only +200,000oz of production Targeting +200,000oz of Treasure island production Chatterbox shear Growing Resource and Organic growth Opened 2 x new mines Reserve potential Commenced regional
Slide 34: Investment Summary
Investment Summary 1. Rapidly Growing Production Profile – Control of Crescent Gold has transformed Focus’ For personal use only production outlook propelling it into the top tier of Australian gold producers 2. Re-rating - Significant re-rating potential for FML stock 3. Production - Production set
Slide 35: Appendices: FML & CRE Combined Resources & Reserves
APPENDICES: FML & CRE COMBINED RESOURCES & RESERVES Measured Resources Indicated Resources Inferred Resources Total Resources For personal use only Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces Ounces '000t Au g/t '000t Au g/t '000t Au g/t '000t Au g/t COOLGARDIE GOLD PROJ
Slide 36: For personal use only
Search “Focus Minerals” on the iTunes store to download the Focus iPad Investor App For personal use only 36