Regis Resources Limited · ASX:RRL
Regis Resources — UBS Australasia Conference 2019
37 slides from Regis Resources's conference presentation, Nov 18, 2019
Slide 1: UBS Australasia Conference 2019
UBS Australasia Conference 2019 JIM BEYER – Managing Director & CEO ASX:RRL
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT This presentation contains only a brief overview of Regis Resources Limited and its affects the information included in the Relevant ASX Announcements and in each case the associated entities (“Regis or RRL") and their respective activities and operations. The Production Targe
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW CAPITAL STRUCTURE 12 MONTH SHARE PRICE PERFORMANCE ASX Code RRL 20 7.00 18 Issued capital1 508.2M shares 16 6.00 14 5.00 Market capitalisation2 A$2.3B 12 Millions 4.00 $AUD Cash and gold on hand3 A$147M 10 8 3.00 Borrowings3 Nil 6 2.00 4 1.00 Resources4 8.2Moz 2 0 0.00 Reserves4
Slide 4: 10 Years of Growth
4 10 YEARS OF GROWTH Production and reserve growth through exploration success and targeted acquisitions 2009 2019 $50m equity raising Garden Well & Debt facility fully Multiple satellite pits McPhillamys Maiden UG development plus $50m debt Rosemont development repaid by 2013 feeding three Ore Rese
Slide 5: Corporate Highlights
5 CORPORATE HIGHLIGHTS A$2.3B company with 8.2Moz in Resources and 4.0Moz in Reserves with consistent resource and reserve replacement Production Guidance of 340,000 - 370,000oz gold production at A$1,125-$1,195/oz AISC and Growth Capital of ~A$62m for FY2020 Strong dividend stream with cumulative p
Slide 6: Our People – The Foundation of Our Success
6 OUR PEOPLE – THE FOUNDATION OF OUR SUCCESS 950 PEOPLE IN TOTAL – 338 EMPLOYEES AND 612 CONTRACTORS TRENDING THE RIGHT WAY WITH ROOM TO KEEP IMPROVING 35 30 25 20 15 Oct-18 Jul-18 Mar-19 Apr-19 Aug-18 Jan-19 Jun-18 Jul-19 Aug-19 Jun-19 Sep-18 Dec-18 May-19 Nov-18 Feb-19 Sep-19 12mma TRIFR* Renewed
Slide 7: Transparent Sustainability and ESG Reporting
7 TRANSPARENT SUSTAINABILITY AND ESG REPORTING Sustainability Metrics Health & Safety People & Culture Mental Health & Wellbeing Environment Rehabilitation & Closure Social Performance Corporate Governance
Slide 8: Continuing Production Growth
8 CONTINUING PRODUCTION GROWTH OPERATING PITS STRONG MARGINS, GOOD COST CONTROL Rosemont AND STEADY OUTPUT GROWTH Garden Well 2,200 380 Moolart Well 370 2,000 370 363 Tooheys Well 361 1,800 360 Anchor 1,600 350 Dogbolter 340 1,400 340 Gloster 1,200 330 Erlistoun Ounces (000’s) 324 A$ per ounce 1,000
Slide 9: Strong Historic Performance on Profit Measures
9 STRONG HISTORIC PERFORMANCE ON PROFIT MEASURES Revenue Net Profit After Tax 200 700 654 606 174 180 163 600 544 160 502 138 500 465 140 120 112 $ millions $ millions 400 100 87 300 80 200 60 40 100 20 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Earnings & Dividend per Share 350 31
Slide 10: Dividend - Regis is one of the Australian gold industry leaders
10 DIVIDEND - Regis is one of the Australian gold industry leaders on dividend payment metrics Final dividend declared 8 cents per share fully franked ($41 million) Interim dividend 8 cents per share fully franked ($40 million paid March 2019) Full year 16 cps ($81m) fully franked payout: 12.4% of F
Slide 11: Industry Leader in Low Cost Production
11 INDUSTRY LEADER IN LOW COST PRODUCTION $1,600 ALL-IN SUSTAINING COSTS 2019 (US$/OZ) International peers (2019E) $1,400 Australian peers (2019A) $1,200 $1,000 AISC (US$/oz) $800 $600 $400 $200 $0 Source: Canaccord Genuity – July 2019. FX Assumption – 0.70AUD/1USD
Slide 12: Continued Life Extension - Reserve Growth
12 CONTINUED LIFE EXTENSION - RESERVE GROWTH The major contributors to the near replacement in CONSISTENTLY REPLACING RESERVES FY2019 of Ore Reserves were: 4.5 Maiden Underground Ore Reserve at 4.06 4.03 4.0 Rosemont of 123,000 ounces; and 3.5 89,000 ounces at Moolart Well – Extra McPhillamys Deposi
Slide 13: FY20 Guidance and Medium Term Outlook
13 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution Production Guidance 340,000 - 370,000oz gold production at A$1,125-$1,195/oz AISC 10% Future Potential Production Step Change McPhillamys Gold Project 400,000 Discovery Ridge Production (ounces
Slide 14: Growth Strategy Continues
14 GROWTH STRATEGY CONTINUES Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Baneygo Tooheys Well Gloster Open Pits Extension Expansion Development Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Duke
Slide 15: Rosemont Underground - Underway
15 ROSEMONT UNDERGROUND - UNDERWAY Firstdevelopment First Developmentore Oredelivered DeliveredinIn July July PRE-FEASIBILITY STUDY METRICS1 Commencement Capital A$36 million Maximum Cash Outflow A$41 million Average Mining Rate 480 - 600ktpa Operating Cost A$1,120/oz Mine Life ~5 years First Ore Se
Slide 16: Garden Well Underground – Taking Shape
16 GARDEN WELL UNDERGROUND – TAKING SHAPE HIGH-GRADE SOUTHERN PLUNGE HIGHLIGHTS UG POTENTIAL Zone of continuous mineralisation up to 10m true widths, 80 – 100m height & 300m N-S strike and extends mineralisation >300m below surface Recent Highlights : 11m @ 7.9 g/t Au 7m @ 4.0 g/t Au 8m @ 4.7 g/t Au
Slide 17: Baneygo Underground Potential
17 BANEYGO UNDERGROUND POTENTIAL Multiple high grade intercepts under Central Pit demonstrate potential Quartz dolerite host, same geology and mineralisation style as Rosemont High-grade vein systems expected to grow Highlights: 2m @ 15.4 g/t Au 4m @ 8.8 g/t Au 3m @ 12.7 g/t Au 2m @ 18.9 g/t Au 2m @
Slide 18: McPhillamys Gold Project
18 MCPHILLAMYS GOLD PROJECT A Significant Organic Growth Opportunity Development Application (DA) is progressing – Exhibition and Submission period has closed. Regis’ Response to Submissions (RTS) now underway DA outcomes feed into the Definitive Feasibility Study (DFS) DFS will update PFS and provi
Slide 19: McPhillamys Gold Project
19 MCPHILLAMYS GOLD PROJECT 100% owned and one of Australia’s larger undeveloped open pittable gold resources ANNUAL PRODUCTION AND MILLED GRADE 250 1.6 PRE-FEASIBILITY STUDY PHYSICALS1 200 1.4 MINERAL RESOURCE Ore milled (Million tonnes) 60.1 1.2 2.29 Moz of gold Ounces (000’s) Grade (g/t) 1.05 (g/
Slide 20: Discovery Ridge Project
20 DISCOVERY RIDGE PROJECT A Potential Satellite Open Pit Located 32km southwest of McPhillamys Mineral Resource – 10.4Mt @ 1.2 g/t Au for 391koz Near surface higher-grade mineralisation to add Indicative significant value to McPhillamys Gold Project pit outline Extra works required at McPhillamys t
Slide 21: 8Moz Gold Discovered to Date
21 8Moz GOLD DISCOVERED TO DATE Duketon Greenstone Belt landholding triples to 3,000 km2 giving Regis control of 90% of the belt. Only 5% of drill holes deeper than 200m pointing to more underground potential Immediate work initiated to expand advanced exploration prospects: MOOLART WELL 2.5Mtpa • L
Slide 22: FY20 Guidance and Medium Term Outlook
22 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution Production Guidance 340,000 - 370,000oz gold production at A$1,125-$1,195/oz AISC 10% Future Potential Production Step Change McPhillamys Gold Project 400,000 Discovery Ridge Production (ounces
Slide 23: Investment Highlights
23 INVESTMENT HIGHLIGHTS Reliable production performance –FY19 Record annual gold production of 363,418 ounces with AISC of $1,029 per ounce for FY2019 Cumulative dividend payments at A$407m since 2013 FY2020 Production Guidance of 340,000 - 370,000oz gold production at A$1,125-$1,195/oz AISC and ~A
Slide 24: Further information: Jim Beyer
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200 24
Slide 25: Appendices
APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018 APPENDICES i) FY20 September Quarter Results ii) Financial Results FY19 – 30 June 2019 iii) Hedging Strategy Details iv) Project Pipeline v) Reserves and Resources @ March 2019 25
Slide 26: FY20 September Quarter Results
26 FY20 SEPTEMBER QUARTER RESULTS FY 20 September Quarter FY19Q4 Production on track to meet full DNO DSO TOTAL TOTAL year guidance of 340,000 – Ore mined (Mbcm) 0.30 0.77 1.07 1.03 370,000oz Waste mined (Mbcm) 1.77 5.24 7.01 7.46 Full year AISC guidance Stripping ratio (w:o) 5.9 6.8 6.6 7.2 maintai
Slide 27: Cashflow Waterfall
27 CASHFLOW WATERFALL Cash & Gold on Hand – 30 September 2019 $350m $300m $82.5m $250m ($40.7m) $205.2m $200m ($30.6m) ($10.1m) ($20.0m) $147.4m $150m ($20.2m) ($13.3m) ($5.4m) $100m $50m - Strong cashflow from operations of $82.5 million for Q1 FY2020 underpinned payment of $40.7 million in dividen
Slide 28: FY2019 Financial Results Highlights
28 Appendix i) - FY2019 FINANCIAL RESULTS HIGHLIGHTS Record gold production of 363,418 oz Revenue up 8% to $654.8 million EBITDA of $306.8 million with strong EBITDA margin of 46.8% Cash flows from operating activities of $275.5 million up 6% from previous year Net profit after tax of $163.1 million
Slide 29: Group Financial Summary Results
29 GROUP FINANCIAL SUMMARY RESULTS Year Ended Year Ended Physicals Unit 30 June 2019 30 June 2018 Ounces Produced oz 363,418 361,373 Ounces Sold oz 369,721 359,750 Average Realised Price $/oz 1,765 1,680 Sales Revenue $m 652.5 604.4 Interest Income $m 2.3 2.1 Cost of Sales $m (402.0) (343.6) Gross P
Slide 30: Financial Results Highlights
30 FINANCIAL RESULTS HIGHLIGHTS Revenue up 8% to $654.8 million Gold sold up 2.8% to 369,721ozs with an average sale price of $1,765/oz. Net Profit after Tax down 6.4% driven by non-cash impairment of capitalised exploration expenditure ($6.7 million) and increased cost of goods sold of $58.4 mi
Slide 31: Review of FY2019 Operations
31 REVIEW OF FY2019 OPERATIONS FY19 FY18 Ore mined Mbcm 4.3 4.6 Operations Waste mined Mbcm 28.1 20.1 FY19 production 363,418ozs at top end of guidance Strip ratio w:o 6.6 4.4 FY19 grade of 1.27g/t: 7% higher than FY18 Ore mined Mt 10.1 10.6 Positive impact of grade from full year production from To
Slide 32: Summary
32 SUMMARY Financials Net profit after tax of $163.1 million (FY18: $174.2 million) Final dividend of 8cps declared taking full year dividend for FY19 to 16cps Operations Strong operational performance with record annual production of 363,418 ozs at the top end of guidance Commenced development of t
Slide 33: Spot Deferred – Flexible Protection Gold Hedge Book
33 Appendix ii) “SPOT DEFERRED” – FLEXIBLE PROTECTION GOLD HEDGE BOOK (30 Sept 2019) Regis’ hedge position reduced to ~439koz at an average of A$1,616/oz. There is no requirement for these to be ‘sold into’ in any specific time frame. Regis is currently actively managing the process of selling into
Slide 34: Project Pipeline
34 Appendix iii) PROJECT PIPELINE Moolart Well Ext. Baneygo – Idaho Gloster UG McPhillamys Baneygo Gloster Garden Well UG Discovery Ridge Moolart Well Beamish Garden Well Duketon Greenstone Belt Garden Well OP Expansion Russells Tooheys Well Tooheys UG Garden Well U
Slide 35: Group Ore Reserves
APPENDIX 1 JORC COMPLIANT 35 Appendix iv) GROUP ORE RESERVE ORE RESERVES ESTIMATES 31 MARCH (312018 March 2019)
Slide 36: Group Mineral Resources (31 March 2019)
36 36 GROUP MINERAL RESOURCES (31 March 2019)
Slide 37: Further information: Jim Beyer
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200 37