Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Q1 FY2014 Earnings Presentation
27 slides from Hillgrove Resources's earnings presentation, Jun 5, 2013
Slide 1: Updated Quarterly Presentation
Wednesday, 5 June 2013 For personal use only UPDATED QUARTERLY PRESENTATION Please find attached an updated presentation with additional slides supplementing the First Quarter FY2014 Presentation released on 31 May 2013. The additional slides are in response to queries from the market after the Quar
Slide 2: First Quarter FY2014 Performance Update
For personal use only FIRST QUARTER FY2014 PERFORMANCE UPDATE GREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CHIEF FINANCIAL OFFICER 4 JUNE 2013
Slide 3: Production and Exploration Assets
HILLGROVE FIRST QUARTER UPDATE PRODUCTION AND EXPLORATION ASSETS Bird’s Head project For personal use only Production and cash flow in Australia Sumba project Kanmantoo Copper Mine (100% owned), South Australia Rim-of-Fire exploration in Indonesia Sumba gold project (80% owned) Kanmantoo B
Slide 4: Kanmantoo Copper Mine and Exploration Area
HILLGROVE FIRST QUARTER UPDATE KANMANTOO COPPER MINE AND EXPLORATION AREA For personal use only 100%-owned by Hillgrove 55km from Adelaide, South Australia Mining Lease is within 500km2 Exploration Exploration Area EL4401 License, and relatively unexplored Exploration potential considered hi
Slide 5: 1Q FY2014 Highlights
HILLGROVE FIRST QUARTER UPDATE 1Q FY2014 HIGHLIGHTS For personal use only New primary crusher circuit replacement project at Kanmantoo has been successfully completed with all underperforming elements replaced – throughput up to 2.8Mtpa Record quarter in the Kanmantoo operation for a number of m
Slide 6: Safety – TRIFR
HILLGROVE FIRST QUARTER UPDATE SAFETY – KANMANTOO COPPER MINE TRIFR For personal use only Total Recordable Injury Frequency Rate: May 2012 ‐ Apr 2013 60 120 52.8 51.0 49.3 50 46.6 100 53.9 49.6 42.9 46.1 40 80 41.2 39.8 64.9 38.1 37.2 30 102.5 60 35.4 34.0 20 40 20.5 19.6 17.3 18.4 18.9 16.3 19.9 10
Slide 7: Production Output
KANMANTOO COPPER MINE PRODUCTION OUTPUT Period FY 2012 FY 2013 Q4 13 Q1 14 For personal use only Ore to ROM from Pit (kt) 495 2,221 639 689 Record quarter for a Ore to / (from) long term number of metrics, (kt) 1,267 849 98 (137) stockpiles Mined Waste (kt) 7,446 11,777 3,650 2,728 including: Tota
Slide 8: Primary Ore to ROM
KANMANTOO COPPER MINE PRIMARY ORE TO ROM For personal use only Ore Milled and Copper Produced 800t 700t 600t 500t 400t 300t 200t 100t 0t 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Kavanagh (Tonnes) Spitfire (Tonnes) Steady and consistent increase in the primary ore material to the ROM, transition tow
Slide 9: Ore Milled and Copper Production
KANMANTOO COPPER MINE ORE MILLED AND COPPER PRODUCTION For personal use only Ore Milled and Copper Produced 900kt 4,500t 800kt 4,000t 700kt 3,500t 600kt 3,000t 500kt 2,500t 400kt 2,000t 300kt 1,500t 200kt 1,000t 100kt 500t 0kt 0t 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Ore Milled (LHS) Coppe
Slide 10: Mined and Milled Feed Grades
KANMANTOO COPPER MINE MINED AND MILLED FEED GRADES For personal use only Mined and Milled Grade 0.85% 0.82 0.83 0.80% 0.75 0.75% 0.71 3Q 2013 0.70 0.74 0.70% New mining practices, 0.67 reducing dilution 0.65% 0.67 0.63 0.60% 3Q 2013 0.62 Decision to move to a new LOM 0.55% plan, with benefits expect
Slide 11: Total Movements and Strip Ratio
KANMANTOO COPPER MINE TOTAL MOVEMENTS AND STRIP RATIO For personal use only Total Movements and Strip Ratio 5,000kt 7.0x 6.0x 5.9x 4,500kt 6.0x 5.4x 5.5x 4,387kt 4,000kt 5.0x 4.0x 3,500kt 4.0x 3,562kt 3,481kt 3,417kt 3,417kt 3,000kt 3.0x 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Total Movements (LHS)
Slide 12: C1 Production Costs
KANMANTOO COPPER MINE C1 PRODUCTION COSTS For personal use only Period FY Jan‐13 Apr‐13 US cents per lb 2013 QTR QTR C1 cash costs of production was USD3.15/lb (average Mining Costs 120 155 191 AUD/USD exchange rate Processing Costs 97 94 97 of 1.035) Other Direct Cash Costs 23 19 24 Total Onsite
Slide 13: Strong Hedge Book
KANMANTOO COPPER MINE STRONG HEDGE BOOK For personal use only Strong hedge book Hillgrove AUD Copper Position provides certainty for A$10,000 cashflows and revenue in future periods A$9,000 Approximately A$8,000 41,000t of copper swaps A$7,000 Approximately 70% of forecast copper production he
Slide 14: Performance in Line with Expectations During Crusher Changeover
KANMANTOO COPPER MINE PERFORMANCE IN LINE WITH EXPECTATIONS DURING CRUSHER CHANGEOVER For personal use only New primary crusher installation was completed successfully in March and commissioned by early April with throughput reaching targeted 2.8Mtpa 3,590t of copper was produced during the quar
Slide 15: Cross Section of Kavanagh Pit with Block Model
KANMANTOO COPPER MINE Cross section of Kavanagh Pit – showing Block Model with end of May 13 face position For personal use only 14 May month end – Kavanagh Pit mining surface
Slide 16: Kavanagh V20 Design
KANMANTOO COPPER MINE KAVANAGH V20 DESIGN For personal use only Grid 100m x 100m 1 3 EOM April 2013 Survey 1096RL 1078RL 2 4 Uncertainty around 1970’s final pit surface 1087RL 1069RL 15
Slide 17: Kavanagh Pit - Bench Tonnes and Grade Profile
KANMANTOO COPPER MINE Kavanagh Pit - Bench tonnes and grade profile For personal use only Total Volume Primary High Primary High Total Primary Total Primary Total Primary Strip Ratio Bench (bcm) Grade Ore Grade Ore Cu Ore Tonnes (t) Ore Grade (%) Ore Metal (t) (Wbcm:Obcm) 1123 121,739 37,812 0.74 70
Slide 18: Kanmantoo Copper Mine – Life of Mine Pit Locations
For personal use only Kanmantoo Copper Mine – Life of Mine Pit Locations KANMANTOO COPPER MINE 17
Slide 19: Indonesia Status Update
INDONESIA STATUS UPDATE For personal use only Hillgrove has taken the decision to wind down the exploration activity at Bird’s Head and Sumba: majors reviewing greenfield exploration activities no recognition of value of these assets by Hillgrove investors Based on the above, expenditure wil
Slide 20: Bird's Head Project Attributes
INDONESIA BIRDS HEAD PROJECT ATTRIBUTES For personal use only Hillgrove has an 80% beneficial interest in PT Akram through a JV Agreement Moving to a corporatised ownership structure – PMA conversion in progress IUP rights granted to March 2017 cover almost 1,000km² Hillgrove responsible for
Slide 21: Sumba Island Project Attributes
INDONESIA SUMBA ISLAND PROJECT ATTRIBUTES For personal use only Hillgrove has an 80% direct shareholding in PT Fathi Resources through Singapore holding structures, which has been converted to PMA status IUP rights granted to December 2016 cover ~1,000km² – reducing to 750km² Hillgrove respons
Slide 22: Sensitivities and Guidance
HILLGROVE FIRST QUARTER UPDATE SENSITIVITIES AND GUIDANCE For personal use only SENSITIVITIES TO REVENUE AUD/USD +/- 5% AUD 2.8 million Copper Price +/- 10% AUD 4.5 million Gold Price +/- 10% AUD 0.8 million GUIDANCE FOR FY2014 Production Concentrate 75,000 – 80,000 dry metric tonnes Coppe
Slide 23: Corporate Snapshot as at April 2013
HILLGROVE FIRST QUARTER UPDATE CORPORATE SNAPSHOT AS AT 30 APRIL 2013 For personal use only ASX listed: HGO Shares on issue: 1,022.8 million SHAREHOLDER DISTRIBUTION Share price: AUD0.08* Market capitalisation: AUD81.8 million* Cash and cash equivalents: AUD16.8 million* Debt AUD49.3 mil
Slide 24: Summary
HILLGROVE FIRST QUARTER UPDATE SUMMARY For personal use only Revenue for the quarter was AUD29.6M at an average realised price for copper of USD3.62/lb Revised finance arrangements completed with new LOM implemented Kanmantoo is tracking as forecast through crusher changeover and remains set t
Slide 25: Key Contacts
HILLGROVE FIRST QUARTER UPDATE KEY CONTACTS For personal use only For further information please contact: Greg Hall, CEO and Managing Director or Russell Middleton, Chief Financial Officer Suite 1709 Australia Square Level 17, 264 George Street Sydney NSW 2000 E: info@hillgroveresources.com.au
Slide 26: Disclaimer
DISCLAIMER Important Notice For personal use only No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or c
Slide 27: Disclaimer – Competent Persons
DISCLAIMER COMPETENT PERSONS For personal use only The information in this release that relates to Exploration Results and Exploration Targets for the Kanmantoo Copper Mine is based upon information compiled by Mr Steven McClare, who is a Member of The Australasian Institute of Mining and Metallurgy
Hillgrove Resources — Q1 FY2014 Earnings Presentation on 6ix