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RAMELIUS RESOURCES LIMITED — Investor Presentation 2015
Aug 2, 2015
65718_rns_2015-08-02_b8373958-0ec3-4dcf-a528-e6646a829786.pdf
Investor Presentation
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Ramelius Resources Limited ASX:RMS Diggers & Dealers – 3-5 August 2015
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Forward Looking and Competent Persons Statements
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Forward Looking Statements
This presentation contains certain forward looking statements with respect to Ramelius’financial condition, results of operations, production targets and other matters that are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in or implied by those forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are beyond the control of Ramelius that may cause actual results to differ materially from those expressed in the forward looking statements contained herein. Ramelius Resources Limited gives no warranties in relation to the information and statements within this presentation.
Competent Persons Statement
The Information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Kevin Seymour (Exploration Results), Rob Hutchison (Mineral Resources) and Mark Zeptner (Ore Reserves), who are Competent Persons and Members of The Australasian Institute of Mining and Metallurgy. Kevin Seymour, Rob Hutchison and Mark Zeptner are full-time employees of the company and have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Kevin Seymour, Rob Hutchison and Mark Zeptner consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.
Production Targets
Production targets presented for Vivien and Kathleen Valley projects contain Inferred Resources. For details covering the Mineral Resource and Ore Reserve classifications and proportions relating to the production targets refer to slide 26. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.
Ramelius Resources Limited • Diggers and Dealers - August 2015
2
Corporate Summary
Capital Structure (as at 30 Jun 15)
| Shares on Issue | 469M |
|---|---|
| Listed Options (@ 12c expiry Aug 15) | 51M |
| Market Cap | A$54.0M |
| Cash & Gold | A$36.3M |
| Corporate Debt | Nil |
| Enterprise Value | A$17.7M |
| 6 Month Trading Range | A$0.05 - $0.15 |
Significant Shareholders (as at 30 Jun 15)
| Sprott Asset Management | 7.2% |
|---|---|
| Board & Management | 2.8% |
| Dimensional Fund Advisors | 1.5% |
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Board & Management
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Robert Kennedy Non Executive Chairman Mark Zeptner Managing Director Kevin Lines Non Executive Director
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Mike Bohm
Non Executive Director
Share Price v Gold Index
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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The Investment Case
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Australia’s next 100koz p.a gold producer
Capital Position
Operations
Upside
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Production Targets - FY2016
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Utilising Checker gold mill at Mt Magnet (1.7Mtpa capacity)
Increasing grade & gold production Quarter on Quarter, >100koz run rate from Mar 2016 Qtr
FY2016 - Group Production Profile
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40,000 3.0
2.7
35,000
2.5
30,000 2.1
1.9
Mossbecker 2.0
Kathleen Valley
25,000 1.7 &
Yellow Aster
Mossbecker
Vivien
20,000 & 1.5
Yellow Aster
Mossbecker Mossbecker Vivien Mt Magnet
15,000
1.0
Head Grade
Saturn, Mars
10,000 Percy
&
Percy &
Percy 0.5
Percy Brown Hill
5,000
0 0.0
SEP 2015 QTR DEC 2015 QTR MAR 2016 QTR JUN 2016 QTR
g/t Au
Ounces
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Production Targets - 3 Year Plan[* ]
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Vivien & Kathleen Valley gold projects commenced Q4 FY2015 Combines with Mt Magnet over next 3 years using primarily Ore Reserves (92%)
RMS - Group Production Profile
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1,250
1,250
140,000
Yellow Aster
1,100
120,000 1,000
Nil Desperandum
1,000 Coogee
Vivien extensions
100,000 Kathleen (Resources) ⁵
Vivien
750
Mossbecker Kathleen (Reserves)
Coogee
80,000 & Vivien
Yellow Aster Vivien (Resources)³
Vivien (Reserves)
60,000 Vivien 500
Saturn
Mt Magnet (Reserves)
&
40,000 Mars Percy Titan Morning Star AISC
&
& &
250
Brown Hill
Water Tank Hill Satellites
20,000
0 0
FY2015 FY2016 FY2017 FY2018
A$/oz
Ounces
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*Note: FY2018 Production targets for Vivien & Kathleen Valley contain Inferred Resources, refer to slide 26 for further details
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Capital Management - Forward Gold Sales
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RMS Forward Sales @ A$1,570/oz 2 Year average A$1,440/oz
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations & Development Projects
| Blackmans Gold Project | Blackmans Gold Project | Blackmans Gold Project | |
|---|---|---|---|
| Resource Tonnes | 490kt | ||
| Resource Grade | 2.5g/t | ||
| Resource Ounces | 39koz | ||
| Mt Magnet Gold Mine | |||
| Capacity | 1.7Mtpa | ||
| Resource | 1.9Moz | ||
| Reserve | 326koz | ||
| Life | 4 years | ||
| Capex p.a | A$1.5M | ||
| AISC | A$1,320/oz | ||
| UCF* | A$54M | ||
| Burbanks Treatment Plant | |||
| Capacity | 180ktpa | ||
| C&M | Dec 2014 | ||
| Options | Toll treatment & leasing |
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| Kathleen Valley Gold Mine | Kathleen Valley Gold Mine | |
|---|---|---|
| Resource | 163koz | |
| Reserve | 56koz | |
| Life | 1.5 years | |
| Capex | A$1.5M | |
| AISC | A$936/oz | |
| UCF* | A$27.8M | |
| Vivien Gold Mine | ||
| Resource | 184koz | |
| Reserve | 101koz | |
| Life | 3 years | |
| Capex | A$16.3M | |
| AISC | A$990/oz | |
| UCF* | A$37.1M |
*Undiscounted Cash Flow @ A$1,500/oz
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Mt Magnet Gold Mine
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-
Focus on Saturn and Mars open pits in FY15
-
Saturn pit
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190m deep, 210m at base
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Remaining grade 1.8g/t
-
Mined Sep 2011 - Sep 2015
-
Mars pit
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130m deep, 140m at base
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Remaining grade 1.8g/t
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Mined Sep 2011 – Aug 2015
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Transition to Percy pit for FY16
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Commenced Jan 2015, 35m deep
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Average grade 1.9g/t
-
8:1 strip ratio
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Mt Magnet Gold Mine
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Mt Magnet
Milled Tonnes & Head Grade
700,000 2.00
600,000 1.80
500,000 1.60
400,000 1.40
300,000 1.20
200,000 1.00
100,000 0.80
0 0.60
Milled Tonnes (LHS) Head Grade (RHS)
Milled Tonnes (t) Head Grade (g/t)
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Mt Magnet Gold Production & Costs
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25,000 2,000
SAG mill
22,500 1,800
repairs Ball mill
motor
20,000 1,600
17,500 1,400
15,000 1,200
12,500 1,000
10,000 800
7,500 600
5,000 400
2,500 200
- -
Fine Gold Production (oz) - LHS C1 - Cash Cost (A$/oz) - RHS AISC (A$/oz) - RHS
Costs A$/oz
Gold Production (oz)
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Operations - Kathleen Valley Gold Mine
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-
1[st] Sep 2014 - Acquisition completed
-
Nov 2014 - Infill drilling completed
-
Jan 2015 - Upgraded Mineral Resource:
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1,814,000t @ 2.8g/t for 163,000oz⁴
-
Jan 2015 - Maiden Ore Reserve:
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418,000t @ 4.1g/t for 56,000oz⁵
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Jun 2015 – Mining commenced
-
Sep 2015 Qtr – Start ore haulage
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Kathleen Valley Gold Mine
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| Physicals | Ore Reserve January 2015 |
|---|---|
| Mine Life | 1.5 years |
| Mineral Resource | 163koz4 |
| Ore Reserve | 56koz5 |
| Grade | 4.1 g/t |
| Recovery | 95.0% |
| Recovered Ounces | 53koz |
| Financials | BFS February 2015 |
| Up Front Capital | A$1.5M |
| C1 Cash Cost | A$925/oz |
| AISC | A$936/oz |
| Total Cost (incl. Up Front) | A$975/oz |
| Cash Flow @ A$1,400/oz | A$22.7M |
| Cash Flow @ A$1,500/oz | A$27.8M |
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Vivien Gold Mine
-
July 14 - Acquisition & approvals completed
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Oct 14 - Updated BFS, improved financials
-
Mar 15 - Preliminary surface works started
-
May 15 – A$10M facility secured (undrawn)
-
Jun 15 - Decline commenced
-
Nov 15 – First ore mined
-
Jan 16 – Commencement of ore haulage
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Vivien Gold Mine
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| Physicals | Ore Reserve June 2014 |
|---|---|
| Mine Life | 3 years |
| Mineral Resource | 184koz2 |
| Mining Inventory | 109koz3 |
| Grade | 7.6 g/t |
| Recovery | 95.0% |
| Recovered Ounces | 104koz |
| Financials | Updated BFS Oct 2014 |
| Up Front Capital | A$16.3M |
| C1 Cash Cost | A$766/oz |
| Royalties | A$120/oz |
| AISC | A$990/oz |
| Total Cost (incl. Up Front) |
A$1,148/oz |
| Cash Flow @ A$1,500/oz |
A$37.1M |
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Operations - Vivien Gold Mine
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Development - Blackmans Gold Project
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-
Sep 14 - Secured 100% of Blackmans ML
-
Jan 15 – High grade intersections:
-
9m at 31.9 g/t Au
-
25m at 7.61 g/t Au
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13m at 8.27 g/t Au
-
Jun 15 - Maiden Resource:
-
490,000t @ 2.5g/t for 39,000oz
-
Sep 15 – Targeting Maiden Ore Reserve
-
2016 – Targeting permitting approvals
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Development - Blackmans Gold Project
| Physicals | Resource June 2015 |
|---|---|
| Resource Tonnes | 490kt |
| Resource Grade | 2.5g/t |
| Resource Ounces | 39koz |
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Project Locations
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Mt Magnet (WA)
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Integrated all available geological/geochemical/geophysical datasets
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Produce a detailed 3-D litho-structural model 1,000mbs
-
Includes integrating regional seismic transect data along the Boogardie Road (data source: Geoscience Australia)
-
3-D distribution of known >1.0 g/t Au intersections from drilling shown on RHS in yellow below
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Mt Magnet (WA)
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- 3-D inversion modelling of gravity & magnetic data
Potential for large bulk tonnage resource opportunities within felsic porphyry units
Including below the historic Milky Way pit
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Kathleen Valley (WA)
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Boris Zone - looking for repetitions at depth / extensions below Mossbecker pit
Cross section (through Mossbecker)
Long section (looking east)
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Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Tanami JV (NT)
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-
1,700km[2] of prospective geology
-
Earn-in 85% Tychean (ASX: TYK)
-
Within 100km;
-
Newmont’s 4.5Moz Callie Gold Mine
-
Granites Treatment Plant
-
Highland Rocks ELs grants pending
-
Initial focus has been walk-up drill target over Suplejack EL
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Exploration - Tanami JV (NT)
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-
RC drilling over Suplejack infilled to 250m centres
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Plus 10ppb Au interface geochem anomaly sits at base of post mineralising basalt cover (60mbs)
-
extends over 2km
-
Anomaly & remains to the open
-
south within broader fold closure & WNW fault zone
-
Deeper drill testing further south → Sept 2015 Quarter
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Key Forward Strategy
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1. Focus on capital management
2. Profitable operations
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3. High margin asset discovery
- AISC represents All-In Sustaining Costs as per the World Gold Council guidance
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Thank you
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Contact details:
-
Mark Zeptner – Managing Director
-
Phone – +61 8 9202 1127
-
Email – [email protected]
-
Website – www.rameliusresources.com.au
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Production Targets, Mineral Resources & Ore Reserves Note
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¹ All Mt Magnet Production targets are based on Ore Reserves only. For detailed information relating to Mt Magnet Mineral Resources and Ore Reserves see ASX release (RMS) 3 Sept 2014, ‘Resources and Reserves Statement’.
² For detailed information relating to Vivien Mineral Resources see ASX release (RMS) 3 Sept 2014, ‘Resources and Reserves Statement’.
³ Vivien Production Target based on Ore Reserves plus a small proportion of Inferred Mineral Resource (16% oz). For detailed information relating to Vivien Mining Inventory and Ore Reserve see ASX release (RMS) 30 May 2014, ‘Vivien Gold Mine Feasibility Completed’. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.
⁴ For detailed information relating to Kathleen Valley Mineral Resources see ASX release (RMS) 19 Jan 2015, ‘Maiden Ore Reserve boosts Kathleen Valley Gold Project’.
⁵ Kathleen Valley production target based on Ore Reserves plus a small proportion of Inferred Mineral Resource (15% oz). For detailed information relating to the Ore Reserve see ASX release (RMS) 19 Jan 2015, ‘Maiden Ore Reserve boosts Kathleen Valley Gold Project’. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.
The Company confirms that it is not aware of any new information or data that materially affects the information included in this presentation and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Mineral Resource Statement
| MINERAL RESOURCES AS AT 30 JUNE 2014 - INCLUSIVE OF RESERVES | MINERAL RESOURCES AS AT 30 JUNE 2014 - INCLUSIVE OF RESERVES | MINERAL RESOURCES AS AT 30 JUNE 2014 - INCLUSIVE OF RESERVES | MINERAL RESOURCES AS AT 30 JUNE 2014 - INCLUSIVE OF RESERVES | MINERAL RESOURCES AS AT 30 JUNE 2014 - INCLUSIVE OF RESERVES | |
|---|---|---|---|---|---|
| Deposit | Measured | Indicated | Inferred | Total Resource | |
| Tonnes Au Au ('000s) g/t Oz |
Tonnes Au Au ('000s) g/t Oz |
Tonnes Au Au ('000s) g/t Oz |
Tonnes Au Au ('000s) g/t Oz |
||
| Galaxy MorningStar |
1,266 1.7 69,000 |
6,984 2.0 451,000 1,765 1.8 103,000 |
4,501 1.3 185,000 4 1.4 - |
12,751 1.7 705,000 1,770 1.8 103,000 |
|
| Total major deposits | 1,266 1.7 69,000 |
8,749 2.0 554,000 |
4,505 1.3 185,000 |
14,520 1.7 808,000 |
|
| Bartus Group Boomer Britannia Well Bullocks Eastern Jaspilite Eclipse Golden Stream Hill 60 Lone Pine O'Meara Group Shannon Spearmont - Galtee Stellar Welcome - Baxter |
49 2.2 4,000 146 2.2 10,000 199 2.5 16,000 94 2.5 8,000 160 2.1 11,000 222 1.6 11,000 |
115 2.1 8,000 1,194 1.8 68,000 179 2.0 12,000 202 3.3 21,000 121 2.8 11,000 167 2.2 12,000 154 2.9 14,000 277 1.7 15,000 231 2.5 18,000 35 2.5 3,000 25 2.9 2,000 87 1.9 5,000 276 1.6 15,000 |
238 1.6 12,000 786 1.0 26,000 40 2.5 3,000 134 2.5 11,000 41 2.1 3,000 7 1.7 - 309 4.6 46,000 147 1.7 8,000 151 1.5 7,000 42 2.6 3,000 207 4.3 28,000 59 1.8 3,000 198 1.8 11,000 |
402 1.8 24,000 1,980 1.5 94,000 179 2.0 12,000 242 3.2 25,000 401 2.4 32,000 208 2.1 14,000 160 2.8 15,000 309 4.6 46,000 623 1.9 38,000 383 2.1 26,000 170 2.5 14,000 232 4.1 31,000 306 2.0 19,000 696 1.7 37,000 |
|
| Total satellite deposits | 869 2.1 60,000 |
3,063 2.1 204,000 |
2,359 2.1 161,000 |
6,291 2.1 425,000 |
|
| Hill 50 Deeps Morning Star Deeps Saturn UG St George UG Water Tank Hill UG |
279 5.5 49,000 110 4.9 17,000 |
932 7.0 209,000 195 4.2 26,000 149 4.2 20,000 229 6.6 49,000 |
396 6.4 81,000 334 5.0 53,000 1,607 2.5 127,000 42 4.0 5,000 89 4.9 14,000 |
1,607 6.6 339,000 528 4.7 79,000 1,607 2.5 127,000 302 4.4 42,000 318 6.1 63,000 |
|
| Total UG deposits | 390 5.3 66,000 |
1,504 6.3 304,000 |
2,468 3.5 280,000 |
4,362 4.6 650,000 |
|
| WesternQueen South | 104 3.6 12,000 |
81 3.4 9,000 |
185 3.5 21,000 |
||
| Mt Magnet Stockpiles | 113 1.1 4,000 |
890 0.6 17,000 |
- - |
1,003 0.7 21,000 |
|
| Mt Magnet Total | 2,638 2.3 199,000 |
14,310 2.4 1,091,000 |
9,413 2.1 635,000 |
26,361 2.3 1,925,000 |
|
| Mossbecker Yellow Aster/Nils D. |
182 3.2 19,000 282 2.5 23,000 |
338 4.0 44,000 638 2.1 44,000 |
520 3.8 63,000 920 2.3 67,000 |
||
| Kathleen Valley Total | 464 2.8 42,000 |
976 2.8 88,000 |
1,440 2.8 130,000 |
||
| Coogee Vivien |
31 3.6 4,000 499 8.8 141,000 |
65 3.3 7,000 306 4.4 43,000 |
96 3.4 11,000 805 7.1 184,000 |
||
| Other Deposits Total | 530 8.5 145,000 |
372 4.2 50,000 |
902 6.7 195,000 |
||
| Total Resources | 2,638 2.3 199,000 |
15,304 2.6 1,278,000 |
10,761 2.2 773,000 |
28,702 2.4 2,250,000 |
|
| Note: Figures rounded to neares |
Ramelius Resources Limited • Diggers and Dealers - August 2015
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Ore Reserve Statement
| ORE RESERVE STATEMENT AS AT 30 JUNE 2014 | ORE RESERVE STATEMENT AS AT 30 JUNE 2014 | ORE RESERVE STATEMENT AS AT 30 JUNE 2014 | |
|---|---|---|---|
| Proven | Probable | Total Reserve | |
| Tonnes Au Au ('000s) g/t Oz |
Tonnes Au Au ('000s) g/t Oz |
Tonnes Au Au ('000s) g/t Oz |
|
| Galaxy Pits Saturn Mars Titan Perseverance Brown Hill Morning Star Cutback Morning Star Satellite Pits Boomer Lone Pine O'Meara Golden Stream Underground Water Tank Hill St George Stockpiles |
204 1.8 12,000 176 2.0 11,000 667 1.4 30,000 73 3.6 8,000 113 1.1 4,000 |
170 1.7 9,000 426 2.0 28,000 483 1.4 21,000 597 2.5 48,000 109 2.6 9,000 478 2.8 43,000 132 2.9 12,000 258 1.8 15,000 46 3.4 5,000 95 3.0 9,000 176 6.5 37,000 86 3.0 8,000 890 0.6 17,000 |
374 1.8 21,000 603 2.0 39,000 1,150 1.4 51,000 597 2.5 48,000 109 2.6 9,000 478 2.8 43,000 132 2.9 12,000 258 1.8 15,000 46 3.4 5,000 95 3.0 9,000 176 6.5 37,000 159 3.3 16,000 1,003 0.7 21,000 |
| Mt Magnet Total | 1,234 1.6 65,000 |
3,945 2.1 261,000 |
5,179 2.0 326,000 |
| Vivien | 400 7.9 101,000 |
400 7.9 101,000 |
|
| Total Reserves | 1,234 1.6 65,000 |
4,345 2.6 362,000 |
5,579 2.4 427,000 |
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For detailed information relating to Mt Magnet Ore Reserves see ASX release (RMS) 3 Sept 2014, ‘Resources and Reserves Statement’. No material change has occurred.
Note: Figures rounded to nearest 10,000 tonnes, 0.1 g/t and 1,000 ounces. Rounding errors may occur.
| Pit | Category | Ore Reserve t g/t oz |
|---|---|---|
| Mossbecker Yellow Aster |
Probable Probable |
321,000 4.1 42,000 97,000 4.4 14,000 |
| Total | 418,000 4.1 56,000 |
For detailed information relating to Kathleen Valley Mineral Resources see ASX release (RMS) 19 Jan 2015, ‘Maiden Ore Reserve boosts Kathleen Valley Gold Project’.
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