Slide 1: Fully Funded King of the Hills Project: Entitlement Offer & Debt Facility
For personal use only Fully Funded King of the Hills Project Entitlement Offer & Debt Facility ASX Code: RED Investor Presentation www.red5ltd.com 17 March 2021 Not for release to US wire services or distribution in the United States
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only This presentation (Investor Presentation) has been prepared by Red 5 Limited ACN 068 647 610 (RED) in relation to an accelerated non-renounceable entitlement offer of new shares in RED made to eligible institutional shareholders and eligible
Slide 3: Important Information and Disclaimer
Important Information and Disclaimer For personal use only No liability Petra Capital Pty Ltd ACN 110 952 782 and Canaccord Genuity (Australia) Limited ACN 075 071 466 are the underwriters, lead managers and bookrunners to the Offer (together, the 'Underwriters'). To the maximum extent permitted by
Slide 4: Fully Financed King of the Hills Project
For personal use only Fully Financed King of the Hills Project 4
Slide 5: King of the Hills fully funded
King of the Hills fully funded For personal use only King of the Hills (KOTH) debt financing executed commitment offer comprising: KOTH Funding Uses A$M - A$160 million Senior Construction Facility KOTH project capital and mine pre-strip1 207 - A$15 million Cost Overrun and Working Capital Facilit
Slide 6: Syndicated Facility Agreement of A$175 million
Syndicated Facility Agreement of A$175 million For personal use only Facility Amount and A$175 million Syndicated Facility Agreement comprising; A$160 million Senior Secured Project Loan Facility; and Syndicate Banks A$15 million Cost Overrun and Working Capital Facility. Syndicate Banks – M
Slide 7: Entitlement Offer overview
Entitlement Offer overview For personal use only Fully underwritten A$60 million 4-for-21, accelerated non-renounceable entitlement offer of approximately 375 million new fully paid ordinary share in Red 5 (New Shares) Entitlement Offer Under the Entitlement Offer, eligible shareholders have the o
Slide 8: Use of Proceeds from Entitlement Offer
Use of Proceeds from Entitlement Offer For personal use only The Entitlement Offer fully finances KOTH and provides funding for drilling and development at Darlot as well as general working capital Use of Proceeds A$M KOTH project funding - Project bank guarantees 8 - Up-front TSF Reserve account 13
Slide 9: Entitlement Offer timetable
Entitlement Offer timetable For personal use only Event Time/Date 2021 Trading halt Wednesday, 17 March Entitlement Offer announcement and Institutional Offer opens Wednesday, 17 March Announce completion of the Institutional Offer Friday, 19 March Trading in Red 5 shares resumes on an ex-entitlemen
Slide 10: Pro forma capital structure
Pro forma capital structure For personal use only Red 5 will be well capitalised following the Entitlement Offer with strong support from a Tier-1 lender syndicate Historical Pro forma Impact of Pro Forma Capital Structure financial position Impact of SFA financial position Entitlement Offer¹ As at
Slide 11: Red – Australia's Next Mid-Tier Gold Producer
For personal use only Red 5 – Australia’s Next Mid-Tier Gold Producer 11
Slide 12: Red – A standout growth opportunity
Red 5 – A standout growth opportunity Red 5 has two gold mines in one of the world’s safest For personal use only and most prospective gold districts 2,816 sq km of granted and pending tenements King of the Hills (KOTH) is a major Australian gold deposit – Top 10 largest Ore Reserves in Austra
Slide 13: Transformation to a Mid-Tier gold producer
Transformation to a Mid-Tier gold producer For personal use only AISC and indicative mine reserve life of WA-based gold companies1,2 Gold companies/assets (Bubble Size = Indicative Production p.a) 2,200 Red 5 - Today The planned development of 2,000 KOTH is expected position RED as a leading mid
Slide 14: Leadership team with strong development expertise
Leadership team with strong development expertise For personal use only Red 5 has a strong and capable team, with many years of mining and development experience both at Red 5 and previously at multi-billion international development projects – the Company is well placed to deliver the KOTH developm
Slide 15: KOTH - fully funded, de-risked, Top gold deposit
KOTH - fully funded, de-risked, Top 10 gold deposit For personal use only Red 5 EV/Reserve relative to its peers Australia’s top 10 gold deposits by Ore Reserve2 Valuation of WA based-gold companies1 Mt g/t Moz Bubble Size = Enterprise Value Cadia 1480.0 0.5 22.5 1,500 Pantoro Boddington 566.3 0
Slide 16: KOTH - first gold on-track for June 2022 quarter
KOTH - first gold on-track for June 2022 quarter For personal use only 2021 2022 MQ JQ SQ DQ MQ JQ SQ DQ Bulk earthworks and Village Construction and mine permits Debt financing EPC full mobilisation Site construction Mill and Crusher delivery to site Mine Contractor mobilisation Commissioning Produ
Slide 17: KOTH – long mine life generating substantial cash flow
KOTH – long mine life generating substantial cash flow1 For personal use only Pre-tax Unit $2,000/oz $2,250/oz $2,500/oz $2,750/oz $3,000/oz At a gold price of A$2,500/oz: Project cashflow $M 1,147 1,710 2,273 2,837 3,400 NPV8% $M 512 806 1,101 1,395 1,689 Free cashflow (after tax) of: IRR % 38.0%
Slide 18: KOTH - mine plan focussed on maximising value
KOTH - mine plan focussed on maximising value Early years of LOM benefit from UG mining and For personal use only processing of high-grade ore Potential to extend UG mining beyond FY27 Low-grade ore is stockpiled and processed in the back half of the LOM Plan Lower AISC during Years 1-6 resu
Slide 19: KOTH - mine plan optimises material movement over LoM
KOTH - mine plan optimises material movement over LoM For personal use only Cost of Production ($A/oz) Yrs 1-6 LOM Ore Reserves, Life Of Mine Plan performed by: Mining 895 908 Open Pit – SRK Consulting Processing 273 321 Underground - Entech G&A 39 46 Letter of Intent issued to Macmahon for
Slide 20: KOTH – robust LoM plan sensitivities
KOTH – robust LoM plan sensitivities1 For personal use only 1. Red 5 ASX Release: 15 September 2020. 20 www.red5ltd.com
Slide 21: KOTH - scope to increase production and extend LoM
KOTH - scope to increase production and extend LoM For personal use only Future expansion in processing capacity 6Mtpa crushing circuit installed Oversized 4Mtpa SAG Mill selected Design allowance for upgrade of the grinding, leaching and elution components Minimal interruption to future p
Slide 22: KOTH - geology is well understood
KOTH - geology is well understood For personal use only Mar-20 Mineral Resource1 Aug-20 Ore Reserve2 91Mt @ 1.4 g/t for 64.6Mt @ 1.2 g/t for 4.1Moz Au 2.4Moz Au Ore body in the contact zone of a substantial Granodiorite intrusion 4km long x 2km wide Historical understanding from previous open
Slide 23: KOTH - mineralisation open in all directions
KOTH - mineralisation open in all directions For personal use only White Walker Lemonwood South Pit Drilling bulk stope New Structural Corridor Proof of concept drilling confirms gold mineralisation extends 500m from Mineral Resource1 Mineralised stockwork penetrates at least 70 metres into the gran
Slide 24: KOTH - strategic, low-cost mill in Eastern Goldfields
KOTH - strategic, low-cost mill in Eastern Goldfields For personal use only Process Plant Feasibility Study design by GR Engineering Classification Conventional 4Mtpa CIL plant Primary Gyratory Crusher Designed for future expansion to 6Mtpa with minimal interruption and low CAPEX Gravity Circu
Slide 25: KOTH - 15MW SAG mill supports higher throughput
KOTH - 15MW SAG mill supports higher throughput For personal use only Hardest Ore Design Mid High Conventional 4Mtpa CIL plant Acquired 15MW, dual Power Draw (kW) 9,272 10,859 12,445 synchronous motor semi- autonomous grind (SAG) mill Grind Size (P80) 150 150 150 with VVVF drive Tonnes Per Hour
Slide 26: KOTH - site activities underway, equipment being delivered
KOTH - site activities underway, equipment being delivered For personal use only A$M1 Processing and infrastructure 188 Owners costs 12 Sub-total 200 Contingency 19 Sub-total 219 Mining pre-strip 7 Mill casings in USA being loaded for transport Total (Real) capital cost 226 The majority of remaini
Slide 27: KOTH - village being used by construction workforce
KOTH - village being used by construction workforce For personal use only Camp construction progressing well All central facility buildings have been delivered 61 single person quarters (SPQs) installed (220 rooms) 114 rooms commissioned 35 SPQs and 3 laundries ordered for installation by
Slide 28: KOTH - bulk earthworks for process plant well advanced
KOTH - bulk earthworks for process plant well advanced For personal use only Earthworks started in December 2020 Phase 2 EPC Notice of Award now in place, with MACA Interquip ramping up construction teams Plant design on track Bulk earthworks completed for admin buildings, plant area, crushi
Slide 29: KOTH - delivery of SAG mill and crusher due June 2021
KOTH - delivery of SAG mill and crusher due June 2021 For personal use only First components of the SAG mill have arrived The 15MW SAG Mill, shell and motors have been shipped from Houston to Johannesburg for refurbishment The variable speed drive for the SAG mill is being upgraded Switzerland
Slide 30: Darlot - long term opportunities to extend LoM
Darlot - long term opportunities to extend LoM For personal use only Darlot Gold Mine1 Cables & Mission4 Resource 11.8Mt @ 3.4g/t Au for Combined JORC 2004 Resource of 1.5Mt @ 3.1g/t Au for 185koz2 1.3Moz Historical drilling suggests both Reserve 2.7Mt @ 2.8g/t Au for 239koz deposits remain
Slide 31: Darlot - FY21 transition year to satellite feed
Darlot - FY21 transition year to satellite feed For personal use only Red 5 has relied on the cash flow generated from Darlot to fund the 2018-20 aggressive growth program at KOTH, which established the 4.1Moz KOTH Mineral Resource FY21 production guidance1 is 80,000 – 85,000oz FY21 AISC guidanc
Slide 32: Siana Gold Project – evaluating options
Siana Gold Project – evaluating options For personal use only The Siana Gold Mine, owned by Philippine affiliated company Greenstone Resources, suspended mine operations in April 2017 Maintaining mill and pit dewatering to preserve value Siana is a valuable gold mining asset1: 8 year Life-of
Slide 33: Red 5 Limited – Corporate profile
Red 5 Limited – Corporate profile For personal use only Our Company Vision “To be a successful multi-operational exploration and mining company, providing benefits to all stakeholders, through the consistent application of technical excellence, and responsible and sustainable industry practices.” Sh
Slide 34: Competent Person's Statement
Competent Person’s Statement For personal use only Competent Person Statements for JORC 2012 Mineral Resource and Ore Reserves The information in this presentation that relates to the Mineral Resources at the Siana open pit is extracted from the report titled Siana Gold Project – Open Pit Mining Rev
Slide 35: Thank you
For personal use only Thank you 35 www.red5ltd.com ASX Code: RED
Slide 36: Appendix
For personal use only 36 Appendix
Slide 37: KOTH - 2.4Moz Ore Reserve
KOTH - 2.4Moz Ore Reserve1 For personal use only Total KOTH Ore Reserves as at September 2020 Cut-off JORC 2012 Tonnes Gold Contained Deposit Mining Method (g/t) Classification (Mt) (g/t) Gold (Moz) KOTH Open pit 0.39 Probable 58.5 1.1 2.1 KOTH Underground 1.60 Probable 2.4 2.3 0.2 Rainbow Open pit
Slide 38: KOTH - Satellite Deposits, Resource of 308koz
KOTH - Satellite Deposits1, Resource of 308koz For personal use only Maiden JORC Mineral Resources announced in May 20201: o Cerebus-Eclipse: Indicated and Inferred Resource of 2.8Mt @ 1.2g/t Au for 112,000oz o Centauri: Indicated and Inferred Resource of 1.7Mt @ 1.5g/t Au for 81,300oz Adds to t
Slide 39: KOTH - 4.1Moz Mineral Resource
KOTH - 4.1Moz Mineral Resource1 For personal use only Total Open Pit & Underground KOTH Resource as at March 2020 Cut-off Mining Tonnes Gold Contained Gold Cut-off date for inclusion of Classification drilling data and mining (g/t) Method (000t) (g/t) (000oz) depletion as at 19 February Indicated
Slide 40: Top Gold Deposit in Australia
Top 20 Gold Deposit in Australia For personal use only Resources Reserves Mt g/t Moz Mt g/t Moz Cadia 3174.0 0.4 37.5 Cadia 1480.0 0.5 22.5 Boddington 931.1 0.6 17.4 Boddington 566.3 0.7 11.9 Golden Mile (100%) 272.6 1.4 12.0 Golden Mile (100%) 178.2 1.1 6.3 Tanami 65.5 4.3 9.1 Tanami 33.2 5.3 5.7 L
Slide 41: Australian Top Gold Deposits
Australian Top 20 Gold Deposits1 Resources Reserves Resources Reserves Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz Cadia Newcrest For personal use only Sunrise Dam AngloGold Measured 32.0 0.30 0.3 Proven Measured 28.9 1.54 1.4 Proven 11.2 1.39 0.5 Indicated 3090.0 0.37 36.5 Probable 1480.0 0.45 21.6
Slide 42: Key Risks and International Offer Restrictions
For personal use only Key Risks and International Offer Restrictions 42
Slide 43: Key Risks
Key Risks Set out in this section are some of the potential risks associated with RED, its business, the industry in which it operates and an investment in RED shares. It is not an For personal use only exhaustive list of every risk faced by RED now or in the future Risk Global economic Changes in g
Slide 44: Key Risks
Key Risks For personal use only Risk Gold price The success of RED's operations is primarily dependent on the price of gold bullion as substantially all of RED's current revenue and potential revenues are derived from the sale of gold. Gold prices are volatile and may fluctuate as a result of numero
Slide 45: Key Risks
Key Risks For personal use only Risk Conditions and renewal The permits and agreements on the Darlot and KotH projects are governed by Australian legislation and are evidenced by the granting of permits and agreements and the extension of such of licences permits and agreements. Each permit, agreeme
Slide 46: Key Risks
Key Risks For personal use only Risk Operational risk Gold mining and processing ore into gold are susceptible to numerous events that may have an act on RED's ability to extract ore and produce gold. The Company's ability to generate sufficient annual production of gold in the medium to long term w
Slide 47: Key Risks
Key Risks For personal use only Risk Underwriting The obligation of the Underwriters to fully underwrite the Entitlement Offer is subject to certain events of termination, being occurrence of the following events (adopting definitions in the Underwriting Agreement): a. the Company ceases to be liste
Slide 48: Key Risks
Key Risks For personal use only Risk Underwriting (continued) t. in the reasonable opinion of the Joint Lead Managers, a material statement contained in the Offer Materials or any material aspect of the Entitlement Offer does not comply with the Corporations Act (including if a material statement in
Slide 49: Key Risks
Key Risks For personal use only Risk Underwriting (continued) f. there is an adverse change, or an event occurs that is likely to give rise to an adverse change, in the business, assets, liabilities, financial position or performance, operations, management, outlook or prospects of the Company or th
Slide 50: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this For personal use only document may not be distributed to any person, and the New Shares may not be o
Slide 51: International Offer Restrictions
International Offer Restrictions For personal use only European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the E
Slide 52: International Offer Restrictions
International Offer Restrictions For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other docum