Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — SACOME Breakfast (August 2015)
30 slides from Hillgrove Resources's conference presentation, Aug 20, 2015
Slide 1: SACOME Breakfast
For personal use only SACOME BREAKFAST STEVE McCLARE IIIII CEO & MANAGING DIRECTOR 20 AUGUST 2015
Slide 2: Location
LOCATION For personal use only Birds Head 80% Sumba 80% Kanmantoo Copper Mine 100% Sydney Office 2
Slide 3: Indonesia and South Australia
INDONESIA AND SOUTH AUSTRALIA For personal use only 3
Slide 4: Simplify and Consolidate
SIMPLIFY AND CONSOLIDATE For personal use only Simplify and consolidate. Reduction from six to five directors Aggressively review Indonesian Assets Reduce corporate scale and complexity Focus on value generation from existing assets • Kanmantoo Copper Mine is critical • Exploration expansion
Slide 5: Safety Has Improved But Must Be Better
SAFETY HAS IMPROVED BUT MUST BE BETTER For personal use only The Total Recordable Injury Frequency Rate (TRIFR) has improved 75% in the last three years This year the severity has reduced but the frequency remains The last seven months have been significantly better but we must continue this t
Slide 6: Community Communications
COMMUNITY COMMUNICATIONS Community Engagement and support is critical to our success For personal use only Kanmantoo Callington Community Consultative Committee (KCCCC) • Fundamental in dealing with dust, noise, lights, rehabilitation and master planning • Working Party Groups promote mutual under
Slide 7: Closure Planning and Rehabilitation
CLOSURE PLANNING AND REHABILITATION For personal use only 7
Slide 8: SEB Strip Rehabilitation
SEB STRIP REHABILITATION For personal use only 8
Slide 9: IWL Rehabilitation Trials
IWL REHABILITATION TRIALS For personal use only 9
Slide 10: PEPR Extension
PEPR EXTENSION Program for Environment Protection and Rehabilitation (PEPR) For personal use only • 75% increase in processed ore, and • two year extension to 2019. Primary Ore Copper Production 6,000,000 25,000 0.90% 0.80% 5,000,000 20,000 0.70% 4,000,000 0.60% 15,000 0.50% 3,000,000 0.40% 10,000
Slide 11: Continue Basic But Bullet Proof Approach
CONTINUE BASIC BUT BULLET PROOF APPROACH For personal use only 11
Slide 12: Continue Basic But Bullet Proof Approach
CONTINUE BASIC BUT BULLET PROOF APPROACH For personal use only 12
Slide 13: Kavanagh Pit
For personal use only 13 KAVANAGH PIT
Slide 14: Kavanagh Pit
For personal use only 14 KAVANAGH PIT
Slide 15: Processing Plant
For personal use only PROCESSING PLANT
Slide 16: Production of Copper Concentrate
PRODUCTION OF COPPER CONCENTRATE For personal use only 16
Slide 17: Shipping
For personal use only 17 SHIPPING
Slide 18: Strong Hedge Book for Medium Term Revenue Certainty
STRONG HEDGE BOOK FOR MEDIUM TERM REVENUE CERTAINTY For personal use only Hedge price average Current price range 24.2kmt of copper hedging @ A$7,738/Mt, which is approximately 50% of production to December 2017 1,125 ounces of gold hedging @ A$1,556/ounce 18
Slide 19: Equity Raising Use of Funds – Extension of Mine Life Timeline
EQUITY RAISING USE OF FUNDS – EXTENSION OF MINE LIFE TIMELINE For personal use only Reduced Mining and Reserve Exploration Processing Costs Existing PEPR New Proposed PEPR Further PEPR 2015 2016 2017 2018 2019 2020 2021 2022 2023 19
Slide 20: Strategy – Enhance Shareholder Value
STRATEGY – ENHANCE SHAREHOLDER VALUE For personal use only THREE PILLARS FOR ENHANCING SHAREHOLDER VALUE KANMANTOO REGIONAL CAPITAL MINE GROWTH MANAGEMENT Productivity and cost focus to maximise cash Maximise shareholder Target brownfield and value through capital Extend mine life near mine explorat
Slide 21: Enhancing Shareholder Value – Kanmantoo
ENHANCING SHAREHOLDER VALUE – KANMANTOO For personal use only 21
Slide 22: Increased Life by Sustaining Cost Trajectory
INCREASED LIFE BY SUSTAINING COST TRAJECTORY Lower costs potentially allow a further cutback on the Giant Pit on known resource. For personal use only Current Confirmatory Mined Optimisation Surface Current Giant Pit Design Optimisation Options with Reduced Costs Section Line Model Legend > 0.6% C
Slide 23: Near Mine Targets
For personal use only 23 NEAR MINE TARGETS
Slide 24: Initial Exploration Success
INITIAL EXPLORATION SUCCESS For personal use only 24
Slide 25: Shape Shielded from Pit and Surface
SHAPE SHIELDED FROM PIT AND SURFACE For personal use only P i t Surface Impact i m p a c t 25
Slide 26: Next Steps – Determine Continuance from Pit
NEXT STEPS – DETERMINE CONTINUANCE FROM PIT For personal use only 26
Slide 27: Next Step – Determine Connectivity to Surface
NEXT STEP – DETERMINE CONNECTIVITY TO SURFACE For personal use only Historic Drilling 2015 Exploration Drilling 27
Slide 28: Intent
INTENT For personal use only Shore up revenue – complete Giant cutback promptly Lower costs – particularly Corporate and Indonesia Simplify and consolidate organisation Extend life – through input cost reductions and exploration Generate cash from owned assets Return value to owners 28
Slide 29: Statement
STATEMENT 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 completeness of all or part of this docum
Slide 30: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag For personal use only Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 2.63 0.88 0.10 1.95 the Australian Securities