Regis Resources Limited · ASX:RRL
Regis Resources — Diggers & Dealers 2016
30 slides from Regis Resources's conference presentation, Aug 2, 2016
Slide 1: Regis Resources Ltd - Diggers & Dealers August 2016
For personal use only 1 1 REGIS RESOURCES LTD DIGGER & DEALERS AUGUST 2016
Slide 2: Disclaimer & Competent Persons Statement
DISCLAIMER & COMPETENT PERSONS 22 STATEMENT This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and For personal use only operations. The contents of this presentation, including matters relating to
Slide 3: Corporate
CORPORATE For personal use only 3 3 CAPITAL STRUCTURE BOARD & MANAGEMENT Shares on issue 500m Mark Clark Executive Chairman & CEO Last price $4.05 Paul Thomas Executive Director & COO Market capitalisation A$2,029m Mark Okeby Non Executive Deputy Chairman Daily turnover (no. shares) 7m Ross Kestel N
Slide 4: Gold Price
GOLD PRICE 4 4 For personal use only ONE YEAR GOLD PRICE PERFORMANCE 1,900 AUD$ GOLD PRICE UP 19% TO $1,777 1,800 1,700 1,600 1,500 USD$ GOLD PRICE UP 24% TO $1,351 1,400 1,300 1,200 1,100 1,000
Slide 5: Gold Industry Cost Control
GOLD INDUSTRY COST CONTROL For personal use only 55 Background 2012 and 2013 – 6 of the10 largest gold miners wrote off US$35bn Equivalent to approx. 10 years of profits & 250 million ounces of production 2006-2012 industry development capex went from US$1146/pa oz to $2289/pa oz 2003-2012 o
Slide 6: Gold Industry Investable Again
GOLD INDUSTRY INVESTABLE AGAIN For personal use only 6 6 2012-2015 GP cUS$1600 - $1100 (down >30%), EBITDA margin 50% - 36% (down c28%) Cost control has prevented revenue falls compounding in larger margin falls Free cash flow yield improving
Slide 7: Review of FY2016 Operations
REVIEW OF FY2016 OPERATIONS For personal use only 7 7 PRODUCTION ABOVE GUIDANCE & DELIVERING STRONG CASHFLOW Q4 FY16 OPERATIONS Q4 production 78,471 ounces Ore mined (Mbcm) 1.10 4.63 FY16 production 305,084 ounces Waste mined (Mbcm) 6.18 22.62 Above upper end of FY16 guidance of 275-305koz F
Slide 8: Australian Gold Industry Cost Curve
AUSTRALIAN GOLD INDUSTRY COST CURVE 8 8 Australian Gold Projects For personal use only Q3 2016 All in Sustaining Cost 2,500 2,000 $858 $1056 $1215 1,500 AISC (A$/oz) 1,000 500 -
Slide 9: Australian Industry Grade Curve
AUSTRALIAN INDUSTRY GRADE CURVE 9 9 Australian Gold Projects For personal use only Q3 2016 Grade (g/t) 12 10 8 Gold grade (g/t) 5.14g/t 6 2.18g/t 1.41g/t 4 2 0
Slide 10: AISC Cost per Milled Tonne
AISC COST PER MILLED TONNE 10 10 Australian Gold Projects For personal use only Q3 2016 All in Sustaining Cost Per Tonne of Ore Milled 350.00 Grade is king…or is it?? 300.00 • Management is crucial 250.00 • Scale is important in modern mining • Grade is just one of many factors AISC (A$/tonne milled
Slide 11: Cashflow Waterfall
CASHFLOW WATERFALL 11 11 For personal use only Cash & Gold on Hand Movements - FY2016 $350.0m $233.4m $300.0m $250.0m ($50.0m) $200.0m ($35.2m) ($20.0m) ($18.1m) $150.0m ($21.3m) $123.3m ($22.9m) ($1.8m) ($5.2m) $100.0m $64.5m $50.0m - Strong cash-flow from operations of $233.4m for FY2016 and cash
Slide 12: Dividend
DIVIDEND 12 12 For personal use only 2016 Final dividend declared 9 cents per share fully franked ($45 million) Payable 31 August 2016 Interim dividend 4 cps fully franked ($20m paid February 2016) Fully year (13cps) payout key metrics: 13% of unaudited FY16 revenue 3.2% basic dividend yie
Slide 13: Operations Outlook - FY2017 Guidance
OPERATIONS OUTLOOK 13 13 For personal use only FY2017 GUIDANCE Gold production 300,000 – 330,000 ounces Cash costs $840 – $910 per ounce AISC $980 – $1,050 per ounce Growth Capex: $27m Major components of growth capital: • Gloster pre-production capital $7m • Erlistoun pre-production capital
Slide 14: 2017-2019 Duketon Production Guidance & Targets
OPERATIONS OUTLOOK 14 14 2017 – 2019 DUKETON PROJECT PRODUCTION GUIDANCE & TARGETS For personal use only 380,000 370,000 360,000 2019 350,000 TARGET 340,000 2018 330,000 340,000 GOLD PRODUCTION (OUNCES) TARGET 320,000 2017 GUIDANCE 320,000 300,000 2016 300,000 ACTUAL 280,000 305,084 260,000 240,000
Slide 15: Development - Gloster Gold Deposit
DEVELOPMENT FAMOUS BLUE GEOLOGY 15 15 GLOSTER GOLD DEPOSIT For personal use only MOVING TOWARDS PRODUCTION Mining at Gloster is underway Simple low strip open cut mining and road haulage operation Low startup capex - $7m in FY2017. More than 3 years additional mill feed to the Moolart Well p
Slide 16: Duketon Reserve Growth
16 DUKETON RESERVE GROWTH 16 For personal use only RESERVES INCREASE TO 2.13Moz – MORE THAN REPLACING FY16 PRODUCTION Total Ore Reserve Tonnes Gold Grade Gold Metal (Mt) (g/t) (koz) 31 March 2015 59.1 1.06 2,006 Depleted by Mining to 31/3/16 -10.6 0.96 -326 31 March 2015 Net of Depletion 48.5 1.08 1
Slide 17: Tooheys Well - 547,000 Ounce Maiden Resource
17 TOOHEYS WELL 17 For personal use only ORGANIC GROWTH CONTINUES – 547,000 OUNCE MAIDEN RESOURCE Tonnes Gold Grade Gold Metal (Mt) (g/t) (koz) Tooheys Well Inferred Mineral Resource at 0.4g/t lower cut 14.6 1.16 547 Resource above 1.0g/t cut-off is 6.7Mt at 1.77g/t for 379,000 ounces – 70% of quo
Slide 18: View from Tooheys Well
VIEW FROM TOOHEYS WELL 18 18 LOOKING NORTH For personal use only
Slide 19: Tooheys Well Drilling Cross Section 09340mN
TOOHEYS WELL GOLD PROSPECT For personal use only 19 19 DRILLING CROSS SECTION 6909340mN Steep E dipping high grade gold shear Chert BIF and shale host rocks Weathered 80-160m Significant intercepts 39m @ 2.86g/t from 53m 17m @1.90g/t from 95m 27m @ 2.48g/t from 55m 50m @ 2.75g/t from
Slide 20: Tooheys Well Drilling Cross Section 09380mN
TOOHEYS WELL GOLD PROSPECT For personal use only 20 20 DRILLING CROSS SECTION 6909380mN Significant intercepts 54m @ 3.55g/t from 55m 23m @ 3.13g/t from 144m 26m @ 2.01g/t from 243m 36m @ 2.73g/t from 202m 16m @ 3.35g/t from 118m Fresh rock intersections Consistent grade and widths o
Slide 21: Exploration Upside - Tooheys Well-Garden Well Corridor
EXPLORATION UPSIDE 2121 TOOHEYS WELL-GARDEN WELL CORRIDOR For personal use only UNTESTED POTENTIAL NORTH & SOUTH OF TOOHEYS WELL TW Eastern Shear structure is interpreted to join with the gold mineralised shear zones at Chert Ridge (GW) approximately 2.5 km to north. Early drilling encouraging,
Slide 22: Duketon Exploration
DUKETON EXPLORATION 2222 For personal use only DUKETON KEEPS GIVING Huge exploration effort in FY16: 155,000 metres drilled 20 projects ≈$15m spend Delivering big rewards: +1.4Moz resources added/upgraded Gloster, Baneygo & TW +400Koz reserves added Gloster, Baneygo & Ops Large t
Slide 23: Rosemont to Baneygo
ROSEMONT TO BANEYGO 2323 For personal use only REGIONAL SCALE OPPORTUNITY Rosemont to Baneygo trend 20km Quartz dolerite host rock at Rosemont continues to Baneygo and beyond to the south Baneygo discovery now a Reserve Recent RC drilling north of Baneygo turning up significant gold intercep
Slide 24: Garden Well Corridor
GARDEN WELL CORRIDOR 2424 For personal use only CURRENT PRIORITIES Garden Well to Tooheys Well and continuation of Tooheys Well to the south 7km further strike extent with minimal drilling further to lease boundary south
Slide 25: Russells to Reichelts Gold Trend
RUSSELLS TO REICHELTS 25 25 GOLD TREND For personal use only Garden Well Processing Plant Old Peculiar Gold mineralised shear zone poorly tested along strike Russell’s Find 55koz Au Resource Aircore drill testing on 400m Reichelts Find spaced traverses along the 17koz Au Resource mineralised shear z
Slide 26: McPhillamys (NSW)
McPHILLAMYS (NSW) For personal use only 26 26 WWTW Bathurst McPhillamys Gold Project
Slide 27: McPhillamys - Infill Drilling & Metallurgical Testing for PFS
McPHILLAMYS (NSW) For personal use only 2727 INFILL DRILLING & METALURGICAL TESTING TO COMMENCE FOR PFS Located Central-West NSW • Well established gold mining district • Cadia, Cowal, Northparkes +45Moz* Gold resource 2.2Moz - 100% Regis • Large undeveloped gold resource in Australia – rare and
Slide 28: Regis Targets & Outlook
REGIS TARGETS & OUTLOOK 2828 For personal use only D & D 2015 D & D 2016 Production 275-305koz Production 305.1koz FY17 guidance 300,000 – 330,000 ounces Medium term production targets rising AISC $970-1,050/oz AISC $927/oz Operating cashflow $150m Operating cashflow $233.4m Organic reserve growth A
Slide 29: JORC Compliant Ore Reserve Estimates March 2016
APPENDIX 1 JORC COMPLIANT 29 29 ORE RESERVE ESTIMATES 31 MARCH 2016 For personal use only Group Ore Reserves as at 31 March 2016 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 30: JORC Compliant Mineral Resources March 2016
APPENDIX 2 30 30 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2016 For personal use only Group Mineral Resources as at 31 March 2016 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