Ramelius Resources Limited · ASX:RMS
Ramelius Resources — Shareholder Meeting (November 2020)
33 slides from Ramelius Resources's shareholder meeting presentation, Nov 26, 2020
Slide 1: Ramelius Resources 2020 Annual General Meeting
For personal use only 26 November 2020 RAMELIUS RESOURCES LTD 2020 ANNUAL GENERAL MEETING Ramelius Resources Limited (ASX: RMS) provides a copy of: (a) Chair’s address; and (b) Managing Director’s presentation, 26 November 2020 ahead of its Annual General Meeting Thursday 26 November 2020 from 11am
Slide 2: Chair's Address
Ramelius Resources Limited ACN: 001 717 540 Ramelius Resources Limited PO Box 6070 East Perth WA 6892 Level 1, 130 Royal Street, East Perth WA 6004 Tel: (08) 9202 1127 For personal use only Ladies and gentlemen, welcome to the 18th Annual General Meeting of Ramelius Resources Limited (ASX: RMS) (Ram
Slide 3: Chair's Address (continued)
In terms of exploration, Ramelius invested almost $20 million across its portfolio during the financial year. That investment, combined with the addition of Penny, translated into a 15% increase in Mineral Resources and a 32% increase in Ore Reserves for the year after accounting for mining depletio
Slide 4: Managing Director Annual General Meeting Presentation
Ramelius Resources Limited For personal use only Mark Zeptner Managing Director ASX:RMS Annual General Meeting 26 November 2020 th ANNUAL GENERAL MEETING - NOVEMBER 2020 1
Slide 5: Qualification: Forward Looking Statements
QUALIFICATION Forward Looking Statements For personal use only This presentation contains certain forward looking statements with respect to Ramelius Resources Ltd’s (Ramelius) financial condition, results of operations, production targets and other matters that are subject to various risks and unce
Slide 6: Corporate Summary
CORPORATE SUMMARY Corporate Structure Production Guidance For personal use only Shares on Issue 809M Mineral Resources1 4.7Moz at 30 June 2020 Market Cap6 A$1.5B @ $1.80 per share Ore Reserves1 1.1Moz at 30 June 2020 Cash & Gold2 A$221.9M FY 2020 Production4 230,426oz @ AISC A$1,164/oz Debt2,3 A$16.
Slide 7: FY2020 Highlights - A Record Year
FY2020 HIGHLIGHTS - A RECORD YEAR Share Price Performance FY20^ For personal use only Record Production ✓ – 230koz produced (up 17% on FY19) Record Net Profit* (after Tax) ✓ – A$113.4M (up 420% on FY19) ✓ Best in Class Capital Returns* – 176% share price appreciation in FY20 ✓ Doubling of Dividend*
Slide 8: FY2020 Highlights - Increased Focus on Safety & ESG
FY2020 HIGHLIGHTS - INCREASED FOCUS ON SAFETY & ESG For personal use only ANNUAL GENERAL MEETING - NOVEMBER 2020 5
Slide 9: FY2020 Highlights - Increased Resources, Reserves & Gold Sales
FY2020 HIGHLIGHTS - INCREASED RESOURCES, RESERVES & GOLD SALES 2020 2019 % Change For personal use only Mineral Resources 4.70Moz 4.10Moz 15% Ore Reserves 1.10Moz 0.84Moz 32% Gold Production 230,426oz 196,679oz 17% Gold Sales 228,210oz 203,318oz 12% AISC A$1,164/oz A$1,192/oz (2%) Average Price Rece
Slide 10: FY2020 Highlights - A Standout Set of Financials
FY2020 HIGHLIGHTS - A STANDOUT SET OF FINANCIALS OPERATING PERFORMANCE 2020 2019 % Change For personal use only Revenue A$460.6m A$352.8m 31% EBITDA A$256.0m A$112.2m 128% Net Profit After Tax A$113.4m A$21.8m 420% Earnings Per Share (cents) 16.4 3.7 339% Dividend (cents) 2.0 1.0 100% STRENGTHEN BAL
Slide 11: FY2020 Highlights - A Dividend Paying Gold Producer
FY2020 HIGHLIGHTS - A DIVIDEND PAYING GOLD PRODUCER ➢ October 2019 – inaugural fully For personal use only franked $0.01 cent per share ➢ October 2020 – followed up with fully franked $0.02 per share (A$16M) ➢ Ramelius continues to have the lowest valuation (Enterprise Value) of its dividend paying,
Slide 12: Value Accretive Corporate Action Continues
FY2020 HIGHLIGHTS - VALUE ACCRETIVE CORPORATE ACTION CONTINUES For personal use only ➢ Delivering on strategy of acquiring value accretive projects near existing production centres ▪ Acquired 100% of Spectrum for A$171M ▪ Proximal to Mt Magnet gold mine ▪ Near production opportunity with high value
Slide 13: Asset Locations & Outlook
For personal use only ASSET LOCATIONS & OUTLOOK ANNUAL GENERAL MEETING - NOVEMBER 2020 10
Slide 14: 2020 Resources & Reserves by Production Centre
2020 RESOURCES & RESERVES BY PRODUCTION CENTRE Mt Magnet & Vivien Resources & Reserves1 For personal use only ➢ Mineral Resources 2.70Moz ➢ Ore Reserves 0.51Moz Edna May, Marda & Tampia Resources & Reserves1 ➢ Mineral Resources 2.00Moz ➢ Ore Reserves 0.62Moz Total Resources & Reserves1 (at 30 June 2
Slide 15: Consistent Production Growth with Expanding Margins
CONSISTENT PRODUCTION GROWTH# WITH EXPANDING MARGINS For personal use only ➢ 21.5% year-on-year gold production growth FY15-FY20 AISC Margin increased from 20% ➢ Further 17% growth to 270koz mid- in FY15 to 42% in FY20 point in FY21 ➢ Consistent AISC profile over past 6 years ➔ varying <4% ➢ Expandi
Slide 16: Resources & Reserves Growth - Accelerating in Recent Years
RESOURCES & RESERVES1 GROWTH - ACCELERATING IN RECENT YEARS For personal use only ➢ Growth achieved via ▪ Exploration ▪ Acquisition ➢ Foundation of 1.45Moz Mine Plan2 ▪ 88% from Reserves/Indicated Resources ➢ Conversion rate ~23% ➢ Looking to improve Resource to Reserve conversion in FY21 1See RMS A
Slide 17: Mine Plan Grows by 34% to 1.45 Million Ounces
MINE PLAN* - GROWS BY 34% TO 1.45 MILLION OUNCES For personal use only ➢ Main Contributors to growth ▪ Eridanus Stage 2 open pit (Mining) ▪ Eridanus Underground (Scoping) ▪ Penny Gold Project (PFS) ➢ Early opportunities for FY22 ▪ Extension of Vivien underground ▪ Earlier production from the Penny P
Slide 18: Key Project Updates
For personal use only KEY PROJECT UPDATES ANNUAL GENERAL MEETING - NOVEMBER 2020 15
Slide 19: Penny Project - One of Australia's Highest Grade Gold Mines
PENNY PROJECT - ONE OF AUSTRALIA’S HIGHEST GRADE GOLD MINES ➢ Offer announced Feb 2020, completed Jun 2020 For personal use only . ➢ Mineral Resources - 620kt @ 15.0g/t for 300koz1 ➢ Ore Reserve - 500kt @ 14.0g/t for 230koz1 ➢ Feasibility Study completed October 2020* ▪ AISC reduced to A$633/oz ▪ Up
Slide 20: Eridanus - Stage 2 Open Pit Underway
ERIDANUS - STAGE 2 OPEN PIT UNDERWAY For personal use only . ➢ Significant Mineral Resource estimate of 13Mt @ 1.2 g/t Au for 500,000oz1 ➢ Stage 2 open pit commenced in June 2020 Qtr, following excellent performance from Stage 1 open pit (see opposite) ➢ Earlier diamond drilling returned wider zones
Slide 21: Edna May - 22% Larger Resource at 1.0M Ounces
EDNA MAY - 22% LARGER RESOURCE AT 1.0M OUNCES For personal use only . ➢ Infill and extensional diamond drilling programme completed along with new resource model ➢ Updated Mineral Resources1 ▪ 31Mt @ 1.1g/t for 1.0Moz1 (overall resource) ▪ 490kt @ 4.5g/t for 72koz (included high grade lodes) ➢ Indic
Slide 22: Greenfinch - Taking Shape Nicely
GREENFINCH - TAKING SHAPE NICELY For personal use only . ➢ Commenced mining in March 2020, on schedule for completion July 2021 ➢ Mineral Resource - 4.3Mt @ 0.9g/t for 130koz1 ➢ Ore Reserve - 1.5Mt @ 1.1g/t for 52koz1 ➢ Reconciling well against Ore Reserves and productivity exceeding expectations ➢
Slide 23: Tampia - Capital Projects Underway
TAMPIA - CAPITAL PROJECTS UNDERWAY ➢ Edna May Plant Upgrade For personal use only . ▪ Vibrating screens installed and leach thickener footings complete (see opposite) ➢ Approvals ▪ Land Access – continuing negotiations with freehold landowners ▪ Project Management Plan – approved by DMIRS ▪ Mining P
Slide 24: Marda - In Full Swing
MARDA - IN FULL SWING ➢ Commenced mining in November 2019 For personal use only ➢ Located 170km by road from the Edna May processing plant ➢ Mineral Resource - 4.4Mt @ 2.0g/t for 280koz1 ➢ Ore Reserve - 1.3Mt @ 2.1g/t for 93koz1 ➢ Conversion of Marda north resources (100koz) currently a priority: ▪
Slide 25: The Investment Case
For personal use only THE INVESTMENT CASE ANNUAL GENERAL MEETING - NOVEMBER 2020 22
Slide 26: Organic Growth - Mining/Processing Studies
ORGANIC GROWTH - MINING/PROCESSING STUDIES For personal use only . ➢ Mount Magnet Estimated Completion ▪ Eridanus Underground: completion of deeper drilling and associated Scoping Study 31 December 2020 ▪ Processing Facility Upgrade: carry out cost/benefit analysis on upgrade from 2.0 to 2.4Mtpa 31
Slide 27: Acquisitions - A History of Adding Value
ACQUISITIONS - A HISTORY OF ADDING VALUE* ➢ Track record of generating positive For personal use only (net) cash flow from new projects ➢ Marda now in production (330kt ore stockpile, ~A$25M in free cashflow) ➢ Tampia commenced capital expenditure program ➢ Penny capital program start brought forwar
Slide 28: Focus for FY2021
FOCUS FOR FY2021 • Continue focus on meeting guidance, managing costs & improving safety For personal use only Operational Excellence • Mining & processing studies underway to optimise resource conversion • A$20M exploration budget - Mt Magnet and Edna May High Impact Exploration • Additional A$5M f
Slide 29: Thank You
THANK YOU For personal use only Ramelius Resources Limited ASX Code: RMS Level 1, 130 Royal Street East Perth WA 6004 Authorised for release to the ASX by the Managing Director. For further information contact: Investor enquiries: Media enquiries: Mark Zeptner Tim Manners Luke Forrestal Managing Dir
Slide 30: Appendix - Relative Share Price Performance Over FY20
APPENDIX - RELATIVE SHARE PRICE PERFORMANCE OVER FY20^ ▪ “Best in Class” for FY20 For personal use only 250% 250% 225% 225% 200% 200% ▪ Record breaking 4th Quarter COVID-19 175% 175% Onset 150% 150% ▪ Element of catch-up from 125% 125% prior periods of being under valued (management view) 100% 100%
Slide 31: Appendix - Forward Sales Peer Comparison
APPENDIX - FORWARD SALES PEER COMPARISON1 For personal use only 1As per RMS Quarterly Report dated 27 Oct 2020; DCN Quarterly Report dated 28 Oct 2020; SLR Quarterly Report dated 21 Oct 2020; GOR Quarterly Report dated 23 Oct 2020; SBM Quarterly Report dated 21 Oct 2020; WGX Quarterly Report dated 9
Slide 32: Appendix - 2020 Mineral Resource Statement
APPENDIX - 2020 MINERAL RESOURCE STATEMENT For detailed information relating to Mineral For personal use only Resources see ASX Releases (RMS) “Resources and Reserves Statement 2020”, 28 September 2020 and “Penny & Edna May Study Updates”, 09 November 2020. The Company confirms that it is not aware
Slide 33: Appendix - 2020 Ore Reserve Statement
APPENDIX - 2020 ORE RESERVE STATEMENT For detailed information relating to Ore Reserves For personal use only see ASX Releases (RMS) “Resources and Reserves Statement 2020”, 28 September 2020. The Company confirms that it is not aware of any new information or data that materially affects the inform
Ramelius Resources — Shareholder Meeting (November 2020) on 6ix