Regis Resources Limited · ASX:RRL

Regis Resources — Shareholder Meeting (November 2017)

33 slides from Regis Resources's shareholder meeting presentation, Nov 23, 2017

  1. Slide 1: Regis Resources Ltd Annual General Meeting

    For personal use only 1 1 REGIS RESOURCES LTD ANNUAL GENERAL MEETING 23 NOVEMBER 2017

  2. 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

  3. Slide 3: Regis at a Glance

    3 QUALITY AUSTRALIAN GOLD BUSINESS For personal use only REGIS AT A GLANCE Reserves 4.2 Moz Resources 8.2 Moz FY2018 production guidance: 335,000 – 365,000 ounces A$940 – 1,010/oz AISC Net Cash A$152 million (30 June 17) Dividends and organic growth

  4. Slide 4: The Year in the Markets

    4 THE YEAR IN THE MARKETS1 For personal use only 2016 2017 Change (%) USD Gold $1,214 $1,280 +5% AUD Gold $1,649 $1,698 +3% AUDUSD 0.736 0.754 +2% S&P ASX Gold 4,217 4,837 +15% S&P ASX 200 5,296 5,899 +11% S&P ASX All Ords 5,419 6,044 +12% RRL ASX 6 producer peers2 34.04 40.09 +18% RRL $2.80 $4.09 +

  5. Slide 5: Regis Core Objectives

    REGIS CORE OBJECTIVES For personal use only 55  Maintain or increase gold production  Maintain or improve operating margin  Replenish or increase gold reserves

  6. Slide 6: Regis Core Objectives

    REGIS CORE OBJECTIVES For personal use only 66 Increase gold production  Record annual gold production of 324,353 ounces  Successful start-up of Gloster & Erlistoun operations Maintain low costs  AISC of $945 per ounce was below the lower end of annual guidance range and only 2% higher than 2016

  7. Slide 7: Duketon Gold Project: Growing Production

    DUKETON GOLD PROJECT For personal use only 77 GROWING PRODUCTION 400 360 365 2018 Ounces (000’s) GUIDANCE 335 320 280 324 305 240 200 2016 2017 2018

  8. Slide 8: Duketon Gold Project: Maintaining or Expanding Margin

    DUKETON GOLD PROJECT For personal use only 88 MAINTAINING OR EXPANDING MARGIN 2,000 1,800 1,600 1,400 A$ per ounce 1,200 1,000 800 600 400 200 0 1-Jul-15 1-Oct-15 1-Jan-16 1-Apr-16 1-Jul-16 1-Oct-16 1-Jan-17 1-Apr-17 1-Jul-17 GP Delivered price AISC Operating Margin Linear (Operating Margin)

  9. Slide 9: Duketon Gold Project: Growing Reserves

    DUKETON GOLD PROJECT For personal use only 99 GROWING RESERVES DUKETON GOLD RESERVES 2009 - 2017 2,100 3.4Moz 2.2Moz 1,600 RESERVES OUNCES (000’s) 1,100 0.6Moz 1.9Moz 600 100 2009 reserve Mining depletion Discovery Current reserves -400 -900 -1,400

  10. Slide 10: McPhillamys (NSW) Organic Growth Project

    10 McPHILLAMYS (NSW) 10 For personal use only 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

  11. Slide 11: McPhillamys Process Water Options

    11 McPHILLAMYS 11 PROCESS WATER OPTIONS For personal use only Option 1 – Water Supply from Mt Piper Power Station and Springvale Mine  Non-binding heads of agreement for supply & offtake of 4-5GLpa of water for a 7Mtpa processing facility  Water available from middle of 2019 with a 10 year supply

  12. Slide 12: McPhillamys Process Water Options

    12 McPHILLAMYS 12 PROCESS WATER OPTIONS For personal use only Option 2 – Groundwater Access Licenses  Contractually secured 4.5GLpa of Water Access Licenses over ground water approx. 80km from McPhillamys  Represents a viable and secured alternative source of water supply sufficient for 7mtpa oper

  13. Slide 13: McPhillamys Maiden Reserve Reported September 2017

    13 McPHILLAMYS 13 For personal use only MAIDEN RESERVE REPORTED SEPTEMBER 2017 Infill Drilling Completed  44,000m of drilling over the last 9 months  Reduced drill pattern to 50x25m (nominal) Maiden Ore Reserve Category Tonnes Grade Ounces (> 0.4g/t lower cut) (MT) (g/t) (000’s) Probable Ore Reser

  14. Slide 14: McPhillamys PFS Generates Strong Project

    14 McPHILLAMYS 14 For personal use only PFS GENERATES STRONG PROJECT – ORGANIC GROWTH WITH QUALITY & SCALE PFS Results Capital Cost A$m Operating Cost Ore milled (Million tonnes) 60.1 Treatment plant 142.3 A$/tonne Grade (g/t) 1.05 Water pipeline 38.0 A$/oz Mining Recovery (%) 85 Power supply 8.7 LO

  15. Slide 15: McPhillamys Bolt On Acquisition

    15 McPHILLAMYS 15 For personal use only BOLT ON ACQUISITION EXPECTED TO DELIVER FURTHER SIGNIFICANT VALUE  Acquired Blayney Gold Project for A$3.25m  Contiguous to the McPhillamys project and hosts two quoted Mineral Resource Estimates*: • Discovery Ridge: 13.84Mt at 1.1g/t for 501koz • Bald Hill:

  16. Slide 16: Review of Operations

    16 REGIS RESOURCES – 2017 AGM For personal use only REVIEW OF OPERATIONS Paul Thomas – Chief Operating Officer

  17. Slide 17: Review of FY2017 Operations

    REVIEW OF FY2017 OPERATIONS For personal use only 17 17 DUKETON CONTINUES TO DELIVER STRONG CASHFLOW FY17 FY16 OPERATIONS Ore mined (Mbcm) 4.6 4.6  FY17 production 324,353 oz at top end of guidance Waste mined (Mbcm) 25.6 22.6  FY17 grade of 1.11g/t: 11% higher than FY16  Positive impact of grade

  18. Slide 18: Duketon

    For personal use only DUKETON 18 18

  19. Slide 19: Satellite Operations

    SATELLITE OPERATIONS FAMOUS BLUE GEOLOGY 19 19 COMMENCED IN FY17 For personal use only GLOSTER  26km west of Moolart Well  Mining commenced Q1, milling Q2  Processed 536kt ore at 1.32g/t in Q4  Processed 1.13mt ore at 1.29g/t YTD  Adds 3+ years of mill feed to MW  Grade increases production &

  20. Slide 20: Tooheys Well Gold Project

    TOOHEYS WELL GOLD PROJECT For personal use only 20 20 THE NEXT CAB OFF THE RANK…  Located only 2.5km south of GW  Gold shear zones hosted by chert, shale and BIF  Extensive drill-out in 2015 and 16 culminated in maiden resource July 16  Maiden Reserve quoted June 17: Tonnes Grade Gold (Mt) (g/t)

  21. Slide 21: Exploration Update: Duketon Continuing to Deliver

    21 EXPLORATION UPDATE 21 For personal use only DUKETON – CONTINUING TO DELIVER Completed 167,000m of drilling in FY17  Tooheys Well – 2.5km S of Garden Well  Drilling culminates in 366koz Reserve  Rosemont Underground  Numerous +20gm intercepts over 500m strike  Intercepts outside current reser

  22. Slide 22: Rosemont South & Main Underground Opportunities

    ROSEMONT SOUTH & MAIN 22 22 UNDERGROUND OPPORTUNITIES For personal use only 3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2 Phase 1 drill programmes underway at Rosemont South and below Rosemont Main Pit:  Returning numerous high grade intercepts  Dril

  23. Slide 23: Rosemont Main Pit Underground Project

    ROSEMONT MAIN PIT 23 23 UNDERGROUND PROJECT For personal use only POTENTIAL FOR UNDERGROUND MINING INVENTORY EXTENSION  Testing high grade shoots 100-200m vertically below ultimate open pit design depth  Holes drilled to date are encouraging for underground opportunities  57 holes for 42,175m of

  24. Slide 24: Rosemont Main Pit Drill Results in 2017

    ROSEMONT MAIN PIT 18 1248 24 UNDERGROUND PROJECT DRILL RESULTS IN 2017 For personal use only  Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit  Gold mineralised quartz-dolerite unit is ≈ 80m wide.  2017 Results (all outside reserves):  3m @ 54.63g/t from 151m  10m @ 43.8

  25. Slide 25: Regional Exploration Targets

    DRILL OUTS COMPLETE SO FOCUS 25 25 RETURNS TO REGIONAL EXPLORATION For personal use only NEXT 6 SIGNIFICANT SCALE REGIONAL TARGETS  Post successful delivery of Maiden Reserve at Tooheys Well, focus has returned to generating next suite of regional exploration targets.  6 new regional targets gener

  26. Slide 26: Review of Financial Results

    26 REGIS RESOURCES – 2017 AGM For personal use only REVIEW OF FINANCIAL RESULTS Kim Massey – Chief Financial Officer

  27. Slide 27: 2017 Financial Highlights

    2017 FINANCIAL HIGHLIGHTS For personal use only 27 27 NPAT up 24% to $138 million Revenue up 8% to $544 million EBITDA up 8% to $253 million Net cash and bullion increased by $28 million Full year dividend of 15 cents per share

  28. Slide 28: FY17 Results - Strong Performance on All Measures

    FY17 RESULTS - STRONG PERFORMANCE 28 28 ON ALL MEASURES For personal use only Revenue Net Profit After Tax 600 544 160 502 138 465 140 500 120 112 400 372 $ $ MILLIONS $ MILLIONS 100 87 300 80 55 60 200 40 100 20 0 0 2014 2015 2016 2017 2014 2015 2016 2017 EBITDA Earnings & Dividend per Share 300 10

  29. Slide 29: Cashflow Waterfall

    29 CASHFLOW WATERFALL 29 For personal use only Cash & Gold on Hand - FY2017 $375m $325m ($80.1m) $256.1m $275m ($49.6m) ($35.6m) $225m ($24.9m) $175m ($36.2m) $4.3m ($5.7m) $151.7m $123.3m $125m $75m Strong cash-flow from operations of $256.1m1 for FY2017 underpinned payment of $80.1 million in divi

  30. Slide 30: Dividend

    30 DIVIDEND 30 For personal use only FY2017 DIVIDENDS Dividends Declared  Final dividend declared 20 CENTS PER SHARE • 8 cents per share fully franked ($40 million) 15  Interim dividend 10 8 9 • 7 cps fully franked ($35m paid March 2017) 5 6 7  Final dividend (8cps) payout key metrics: 4 0 • 4.1%

  31. Slide 31: Regis Targets & Outlook

    REGIS TARGETS & OUTLOOK 31 31 2017 Goals 2017 Actual For personal use only Production 300-330koz Production 324.4koz FY18 guidance 335,000 – 365,000 ounces AISC $980-1,050/oz AISC $945/oz Operating cashflow increase Operating cashflow $256.1m Organic reserve growth Added 388koz (+18% net of depletio

  32. Slide 32: JORC Compliant Ore Reserve Estimates March 2017

    APPENDIX 1 JORC COMPLIANT 32 32 ORE RESERVE ESTIMATES 31 MARCH 2017 For personal use only 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 (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt)

  33. Slide 33: JORC Compliant Mineral Resources March 2017

    APPENDIX 2 33 33 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2017 For personal use only 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 Gold Metal Project Type Person2 (g/t) (Mt)

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