Geopacific Resources Limited · ASX:GPR
Geopacific Resources — Investor Presentation (March 2020)
32 slides from Geopacific Resources's investor presentation, Mar 4, 2020
Slide 1: Project Development Commences
Project Development Commences For personal use only 1.6moz* Woodlark Gold Project * For Mineral Resource refer to slide 24 and the PFS announcement released on 12 March 2018. 1
Slide 2: Investment Highlights
Investment Highlights For personal use only Completed by industry leaders & confirms +1moz high margin gold opportunity Reserve & Robust DFS1 Significant discount to peers Attractive High margin valuation gold relative to opportunity +100koz/pa at an AISC of $A866/oz peers for first five years Civil
Slide 3: Early works and civil construction
Early works and civil construction For personal use only Village Village relocation Relocation Area KULUMADAU Plant site clearing Open pit Kulumadau Village DSTP Pipeline Plant Site DSTP road construction BUSAI Open pit Main roads upgrade Wharf Wharf Depot Bomagai Camp Camp improvements Wharf constr
Slide 4: Company Snapshot
Company Snapshot (ASX: GPR) For personal use only Capital Structure $1.00 Market Capitalisation1 A$87.3m $0.90 Shares on issue 174.5m $0.80 $0.70 Share price (A$/sh) Options/Share Appreciation Rights2 6.7m $0.60 Cash (31 December 2019) A$37.5m $0.50 Debt nil $0.40 $0.30 Significant shareholders $0.2
Slide 5: Board and Senior Management
Board and Senior Management For personal use only Geopacific’s team has a strong track record in project development & overseas mining projects Mr Clyne has over 35 years’ experience in international banking specialising in emerging markets. He has held roles of President, Director, Managing Directo
Slide 6: Board and Senior Management
Board and Senior Management For personal use only Geopacific’s team has a strong track record in project development & overseas mining projects Years experience 192 Mines worked at 77 Mines Managingbuilt, Director restarted or expanded 21 Managing Director Mines operated or managed 20 Number of comm
Slide 7: PNG – Why wouldn’t you want to be here?
PNG – Why wouldn’t you want to be here? For personal use only Proven mining investment jurisdiction with long mining history Many world-class gold mines Newcrest investing ~US$2.3b* in Wafi Golpu now Many profitable gold operations on Islands Newcrest, Lihir at 66Moz Au St Barbara, Simberi at 6Moz A
Slide 8: Civil Works Program
Civil Works Program For personal use only The flat terrain & close proximity to the port provides logistical advantages and cost efficiencies Logistical advantages Qualified teams Island benefits • Flat terrain • Strong track record in remote • 1.5hr flight from Port Moresby • Port and air strip ope
Slide 9: Woodlark Gold Project (PNG) – 100%
Woodlark Gold Project (PNG) – 100% For personal use only A permitted project with a robust DFS1 completed by industry leaders • Production – +1moz Reserve,13 year operating life and AISC of A$1,033/oz • Annual output – 104kozpa over first 5yrs • Low strip ratio (<4:1) – shallow open pits and wide or
Slide 10: Estimated Establishment Costs
Estimated Establishment Costs For personal use only Estimates are comprehensive and contain allowances for contingency, working capital, opening stocks/first fills and spare parts 1. Establishment capital by category A$ million Process Plant 96 Infrastructure 33 Owners Cost 15 Total Plant & Infrastr
Slide 11: Strong Feasibility Results
Strong Feasibility Results For personal use only Robust Low waste to Near-surface Greenfields Strong upfront production ore ratio gold project cashflow profile Margin greater than 55% at A$2,000/oz gold price Unit First 5 Yrs* Life of Mine $2,000 Mine Life yea rs 5 13 Upside from DFS $1,750 Margin S
Slide 12: Civil Works Program
Civil Works Program For personal use only Equipment Mobilised to Site by Barge Personnel Arrive on site by Dash 8 The mobilisation of equipment and personnel to Woodlark Island to commence Civil Works on the Woodlark Gold Project was a pivotal movement for Geopacific and a significant milestone in m
Slide 13: Civil Works Program
Civil Works Program For personal use only Road Infrastructure Under Construction The construction of a road from the Wharf to the Plant site will ensure for efficient transport of equipment and supplies during the construction and production phase of the mine. The new Wharf site is being built to sh
Slide 14: Civil Works Program
Civil Works Program For personal use only Plant Site Clearing GR Engineering have been selected to construct a 2.4Mtpa carbon in leach (CIL) treatment facility, tailings line and other supporting infrastructure. The plant site is relatively level and located between the two main open pits. 14
Slide 15: Civil Works Program
Civil Works Program For personal use only Geotechnical Drilling Program Geotechnical Testing Geotechnical Drilling undertaken to facilitate the design of the foundations for a 2.4Mtpa Processing Plant. 15
Slide 16: Village Relocation
Village Relocation For personal use only Existing Three Bedroom House New Three Bedroom House As part of the Company’s commitment to the community, the final design of the new housing was based on feedback from local residents who will be given the new houses upon completion. The improvement in hous
Slide 17: Village Relocation
Village Relocation For personal use only House under construction Local community employed to assist with build All new houses will be constructed with life long steel framed structures and colour bond cladding. Houses are largely built by the local population to ensure ownership of the build, whils
Slide 18: Logistics
Logistics For personal use only Barge loading at Lae Barge arriving on Woodlark Island The transport of equipment and supplies to site via Barge is cheap and The existing Wharf at Woodlark Island is capable of handling current reliable. Lae Port services the massive PNG mining industry from requirem
Slide 19: Community Engagement
Community Engagement For personal use only Community Relations Extensive and Ongoing Community Engagement Event Critical to the success of the Woodlark Gold Project is engagement with the local community which is extensive and ongoing. 19
Slide 20: Working with the Community
Working with the Community For personal use only Constructive Relationship with Local Community Friendly Local Community Geopacific enjoy a constructive and friendly relationship with inhabitants of the island, many of whom are currently employed by the company. 20
Slide 21: Upside - additional in-pit ounces
Upside - additional in-pit ounces For personal use only Potential to gain additional in-pit ounces and reduce strip ratio Inferred mineralisation surrounding pits Limited drilling access in village area, relocation agreed Mineralisation remains open at depth and in all directions 21
Slide 22: Upside - Near-pit depth extension
Upside - Near-pit depth extension For personal use only Mineralisation remains open beneath pits in all directions Pits are constrained by limited drilling, inferred Further drilling mineralisation beneath pits available for conversion required Prior drilling was strategically focused in-pit to ensu
Slide 23: Regional exploration upside
Regional exploration upside For personal use only Large regional goldfield 600km2 Exploration License Over 30 prospect areas Visible gold across licence area (yellow) Gold follows mineralised structures (red) Significant potential beneath thin limestone cover 23
Slide 24: Resources and Reserves
Resources and Reserves For personal use only Resources (Fully Diluted) Reserves 47.04Mt at 1.04g/t Au for 1.57moz Au 28.9Mt at 1.12g/t Au for 1.04moz Au Category Tonnes Grade Ounces Category Tonnes Grade Ounces (>0.4g/t lower cut) (Mt) (g/t) (oz) (>0.4g/t lower cut) (Mt) (g/t) (oz) Measured 21.24 1.
Slide 25: Low waste to ore compared to peers
Low waste to ore compared to peers For personal use only Less waste drives a Geopacific ORE WASTE COST SAVINGS significant cost saving Low waste to ore ratio 3.9 : 1 (LOM) Other ORE WASTE Goldfield High grade, near surface gold mineralisation The above diagram is conceptual in nature and comparison
Slide 26: Compelling Investment Opportunity
Compelling Investment Opportunity For personal use only 300 250 US$ Enterprise Value Per Reserve Ounce 200 Gold Producer US$ 264 /oz 150 4.8 x 100 Gold Exploration & Development Peers 50 Geopacific US$ 55 /oz* US$ 99 /oz 1.8 x - US$ enterprise value per reserve ounce courtesy of PCF Capital Group Re
Slide 27: DFS Gold Price Sensitivity
DFS Gold Price Sensitivity For personal use only The DFS sensitivity analysis presents robust economics at a A$1,650/oz gold price & highlights project upside to an increasing gold price Net cashflows, NPV and IRR present greater returns Rapid payback of 1.6 years at A$2,000/oz gold price 27
Slide 28: Upside of Early Cashflow
Upside of Early Cashflow For personal use only Average free cashflow (pre-tax) per annum yr1-5 A$120m A$104m A$84m 43% increase 25% increase Upfront cashflow A$1,650/oz A$1,850/oz A$2,000/oz gold price (DFS) gold price gold price The information is based on the gold price sensitivity analysis from t
Slide 29: Licence to Operate
Licence to Operate For personal use only Commitment to provide positive and lasting benefits to a small, supportive community. Commitment to provide Mining & Environmental The Community positive & lasting benefits Permits in place Local population of ~6,000, Future employment opportunities. Strong w
Slide 30: Project Financing
Project Financing For personal use only Funded to commence development and complete project financing Debt Equity Project financing due diligence complete First phase of development funding completed Independent Technical Experts (ITE) report completed. A strong shareholder base containing specialis
Slide 31: Investment highlights
For personal use only +1moz Reserve & Robust DFS Attractive High margin valuation gold relative to opportunity peers Investment Funded to commence highlights Large development License to exploration operate upside Proven management team
Slide 32: Disclaimer and competent persons statement
Disclaimer and competent persons statement For personal use only This presentation is for information purposes only. Neither this presentation nor the information contained in it Forward Looking Statements All statements other than statements of historical fact included in this constitutes an offer,
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