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REGIS RESOURCES LIMITED — Investor Presentation 2012
Sep 11, 2012
65733_rns_2012-09-11_00f36e37-0465-4b45-a314-eb46e0651883.pdf
Investor Presentation
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ABN 28 009 174 761
12 September 2012
Manager Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000
www.regisresources.com
Level 1 1 Alvan Street Subiaco WA 6008 Australia
PO Box 862 Subiaco WA 6904 Australia P 08 9442 2200 F 08 9442 2290
Please find attached a presentation given at the Denver Gold Forum by the Regis Resources Managing Director.
Yours sincerely Regis Resources Ltd
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Kim Massey
Company Secretary
1
BUILDING A QUALITY AUSTRALIAN GOLD BUSINESS
D E N V E R G O L D F O R U M S E P T E M B E R 2 0 1 2
DISCLAIMER & COMPETENT PERSON STATEMENT
This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL") and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’ projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification.
This presentation contains a number of forward-looking statements. Known and unknown risks and uncertainties, and factors outside of Regis’ control, may cause the actual results, performance and achievements of Regis to differ materially from those expressed or implied in this presentation.
To the maximum extent permitted by law, Regis does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Regis, and will not be responsible for any loss or damage arising from the use of the information.
The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Regis or its activities.
The technical information in this presentation has been reviewed and approved by Mr Morgan Hart who is a member of the Australasian Institute of Mining and Metallurgy. Mr Hart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for
PURELY AUSTRALIAN GOLD MINER
• Projects 100% Regis owned • 9.0Moz of resources[1,2] • 2.9Moz of reserves[1] • 2 operating mines • 1 development project • 100kozpa ramping to >400koz • Strong growth pipeline • Exclusively in Australia – low political risk Note 1 – full breakdown of these reserves and resources in accordance with JORC is set out in Appendix 1 & 2 to this presentation Note 2 – Includes McPhillamys - acquisition announced 9/8/12 – subject to completion. 2.5Moz resource included
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CORPORATE OVERVIEW
Cor orate Information Share Price & Volume
p
ASX Code RRL ASX Code RRL
Shares 454m Shares 451m
Last price $4.90 Last price $4.01
Market capitalisation $2.2bn Market capitalisation $1.76bn
Listed options 6.9m Listed options 9.5m
Unlisted options 7m Unlisted options 6.3m
Board of Directors Major shareholders
Mark Clark CEO Newmont 16%
Morgan Hart COO Directors & management 12%
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BALANCE SHEET Cash Cash & bullion (Jun12) $9.7m Profit & Cash-flow (Year ended 30 June 2012) Profit before Tax $74.8m NPAT $68.2m Operating cashflow (full year 30/6/12) $102.2m Debt Balance $30m Further facility available $50m Gold Hed in Jun 12 g g ( )
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Total (7% of JORC reserves) 163koz
- FF 118koz at $1,401/oz (12koz per quarter 2012-14)
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DUKETON PROJECT OVERVIEW
-
350km north-north east of Kalgoorlie
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• 100% Regis owned
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• 303 granted leases
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• 1,570 km[2 ] of ground
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• 6.5Moz of resources[1]
-
• 2.9Moz of reserves[1]
Note 1 – full breakdown of
| ORE RESERVES1 | ORE RESERVES1 | ORE RESERVES1 | ORE RESERVES1 | ORE RESERVES1 | ||
|---|---|---|---|---|---|---|
| Total | Forecast | |||||
| LOM | ||||||
| MT | g/t | Koz | Opex | Status | ||
| (A$/oz)2 | ||||||
| Garden Well | 35.3 | 1.46 | 1,660 | 555 | Operating | |
| Moolart Well | ||||||
| - Laterites | 8.8 | 1.30 | 367 | Operating | ||
| - Oxide | 2.6 | 1.82 | 153 | Operating | ||
| MW Total | 11.4 | 1.42 | 520 | 550 | ||
| Erlistoun | 2.7 | 2.36 | 203 | 608 | Mine plan | |
| Note: 1.full breakdo Rosemont Total 7 |
wn in a | ccordance with 8.7 58.1 |
JORC in Appe 1.73 1.54 |
ndix 1. 2. bef 487 2,870 |
ore royalties 628 |
DFS |
GOLD PRODUCTION OUTLOOK
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500
400
300
200
100
-
2011/12 2012/13 2013/14 2014/15 2015/16
Moolart Well Garden Well Erlistoun - GW displaced tonnes Erlistoun - extra grade Rosemont
Thousands
Gold Production (ounces)
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PROJECT STATUS
-
Moolart Well – producing
| MOOLART | MOOLART | WELL | |||
|---|---|---|---|---|---|
| • • • • • |
Plant commissioned August 2010 Jun12 quarter 26,228oz at A$532/oz1 Mill throughput >25% above design > 1yr ore supply grade controlled in pit Negligible ongoing capex |
Stage Mine type Mineralisation Plant type |
Producing Open pit Laterite & oxide Crush, grind, CIL |
||
| Reliable, low cost production generating strong cash-flow |
Throughput Average grade |
2.5mtpa 1.4g/t gold |
|||
| Quarterly Production (ounces) | 300 400 500 600 700 800 900 0 5,000 10,000 15,000 20,000 25,000 30,000 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Moolart Well gold production (oz) |
Cash cost (A$/oz) | Recovery FY13 production FY13 cash cost Mine life Ore reserves Mineral resources |
>92% 95 – 105koz A$540 – 590/oz1 5 years 520koz2 2.2Moz2 |
MOOLART WELL OPERATIONS
GARDEN WELL
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Virgin discovery by Regis in late 2009
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• 30km south of Moolart Well
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Capex completed in line with $109m budget
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Production commenced in Sept 12
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Early indications – throughput will exceed design
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• Excellent metallurgical & physical characteristics across ore types
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2013 guidance 220-240koz at $400-450/oz[1]
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• LOM production >200kozpa at A$555/oz[1]
Major gold discovery moving to long term, low cost gold mine
| Stage | Construction |
|---|---|
| Mine type | Open pit |
| Mineralisation | Mixed ultramafic- sediment shear |
| Plant type | Crush, grind, CIL |
| Throughput | 4mtpa nameplate |
| Reserve grade | 1.46g/t gold |
| Recovery | 95%2 |
| FY13 production | 220-240koz2 |
| FY13 cash cost | A$400-450/oz12 |
| Mine life | 9 years |
GARDEN WELL
RESOURCE EXTENSION DRILLING
| ROSEMONT | ROSEMONT | ||
|---|---|---|---|
| • 9 kilometres north west of Garden Well • DFS underway on crush & grind at pit and pump ore slurry to Garden Well . Target: |
Stage Mine type |
DFS Open pit |
|
| Construction Dec12 qtr ≈ A$40m capex | Mineralisation | Quartz hosted | |
| Production Sept13 qtr - 80kozpa � Strong exploration results north of pit – resource and reserve recalcs pending. |
Plant type Throughput |
stockwork Crush, grind, pump 1.5mtpa |
|
| Reserve grade | 1.73g/t gold | ||
| Recovery | 95% | ||
| W:O ratio 5.61 |
LOM production LOM cash cost |
80kozpa A$628/oz1 |
|
| Mine life | 6 years | ||
| 13 | Ore reserves Mineral resources Notes 1 forecast pre royalty cash cost. |
487koz2 1.08Moz2 2 full breakdown in Appendix 1 & 2 |
REGIONAL EXPLORATION
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Testing theory regionally
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Targeting areas:
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Max 30m of paleochannel cover
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• No previous effective drilling
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Numerous drill targets.
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Recent results at Anchor South:
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8m @ 5,42g/t
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9m @ 3.46g/t
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12m @ 2.19g/t
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2012 regional drilling budget 90,000 metres / $5 million
MCPHILLAMYS GOLD PROJECT
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Acquisition announced 9/8/12 – subject to completion
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• 250km west of Sydney
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• 35km from each of Orange & Bathurst
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• 3 granted leases
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• 420 km[2 ] of ELs
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• Project covered by freehold farmland (some to be acquired by Regis)
TRANSACTION SUMMARY
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Purchase price $150 million ($60/resource oz) • Newmont 51% - $76.5m
-
• Alkane 49% - $73.5m
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Consideration all Regis shares at 45 day VWAP of $4.20 • Newmont 18.2m shares (3.7%, 15.2%→18.9%)
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• Alkane 17.5m shares (3.6%)
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Conditions precedent:
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Ministerial approvals
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Formal legal documentation
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FIRB approval of share issue to NEM
GOLD RESOURCES[1]
Resource Tonnes Gold Ounces Category (millions) Grade (000’s) (g/t) Indicated 41.3 1.27 1,685 Inferred 16.1 1.57 815 Total 57.4 1.36 2,500
GEOLOGY & RESOURCE
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Resource hosted in dacite rich volcanaclastics
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Mineralisation defined to > 600m below surface
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Past drilling mainly focussed on defining a bulk underground position – not successful
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Less drilling aimed at defining near surface open cut resources – Regis opportunity
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Drill density averages 100m x 100m
METALLURGY
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Deposit is partially poly-metallic with zones of Cu, Hg and gold tellurides.
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Sulphides and tellurides impact gold recovery.
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Early stage testwork confirms:
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85% recovery in medium to course grind
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High gravity gold – average 36% (P80 of 150µm)
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Bond work index 13.3kWh/t - medium-low
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Further testwork and finer grind studies required
INFRASTRUCTURE
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Close to roads:
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Mitchell Hwy 5km & Mid Western Hwy 1.5km
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Rail – 8km from intermodal terminal on main east west rail thoroughfare Sydney-Perth
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Power – range of transmission lines running through & close to project
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Skilled mining labour in Orange and Bathurst
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Water – is an issue in NSW,
| TARGET DEVELOPMENT TIMELINE | TARGET DEVELOPMENT TIMELINE | TARGET DEVELOPMENT TIMELINE | TARGET DEVELOPMENT TIMELINE | TARGET DEVELOPMENT TIMELINE | TARGET DEVELOPMENT TIMELINE | ||
|---|---|---|---|---|---|---|---|
| 2013 | 2014 | 2015 | 2016 | 2017 | |||
| Resource drill-out and | |||||||
| reserve estimation | |||||||
| Pre-feasibility studies | |||||||
| & other logistics | |||||||
| DFS | |||||||
| Construction & | |||||||
| development | |||||||
| 21 | Gold production |
TARGET PROJECT
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Open pit mining
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Carbon in Leach processing (as per Duketon)
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Circa 4 million tonnes per annum plant
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140 – 160kozpa gold production over a minimum 10 year mine life
-
Target capex – Regis norm +/- 15%
-
Target 2[nd] quartile cash costs
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REGIS IN SUMMARY
500
400
300
200
100
-
2011/12 2012/13 2013/14 2014/15 2015/16
No allowance for production from McPhillamys
Moolart Well Garden Well Erlistoun - GW displaced tonnes Erlistoun - extra grade Rosemont
Thousands
Gold Production (ounces)
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-
Current business generating strong cash-flow
-
Organic, fully funded growth to beyond 400koz pa
-
Low cash cost, negligible sustaining capex
APPENDIX 1 JORC RESERVES 30 JUNE 2011
| Project | Proven | Proven | Proven | Probable | Probable | Probable | Total | Total | Total | Cut‐off Grade g/t |
|---|---|---|---|---|---|---|---|---|---|---|
| MT | grade g/t |
gold koz |
MT | grade g/t |
gold koz |
MT | grade g/t |
gold koz |
||
| Garden Well | 35.3 | 1.46 | 1,660 | 35.3 | 1.46 | 1,660 | 0.60 | |||
| Moolart Well | ||||||||||
| Laterite | 7.8 | 1.31 | 335 | 1.0 | 1.00 | 32 | 8.8 | 1.30 | 367 | 0.50 |
| Oxide | 1.4 | 1.64 | 75 | 1.2 | 2.02 | 78 | 2.6 | 1.82 | 153 | 0.50 |
| Total Moolart Well |
9.2 | 1.39 | 410 | 2.2 | 1.56 | 110 | 11.4 | 1.42 | 520 | |
| Erlistoun | 1.3 | 2.34 | 95 | 1.4 | 2.37 | 108 | 2.7 | 2.36 | 203 | 0.70 |
| Rosemont | 8.7 | 1.73 | 487 | 8.7 | 1.73 | 487 | 0.50 |
APPENDIX 2 JORC RESOURCES 30 JUNE 2011
| Project | Measured | Measured | Measured | Indicated | Indicated | Indicated | Inferred | Inferred | Inferred | Total Resources | Total Resources | Total Resources | Cut‐ off Grade g/t |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MT | g/t | gold koz |
MT |
g/t | gold koz |
MT |
g/t | gold koz |
MT |
g/t | gold koz |
||
| Moolart Well | |||||||||||||
| Laterite | 9.8 | 1.45 | 459 | 1.0 | 0.90 | 29 | 0.3 | 0.88 | 8 | 11.1 | 1.39 | 496 | 0.50 |
| Oxide | 1.2 | 1.85 | 71 | 3.9 | 1.52 | 192 | 6.7 | 1.45 | 314 | 11.9 | 1.51 | 577 | 0.50 |
| Sulphide | 2.4 | 1.37 | 108 | 2.4 | 1.37 | 108 | 1.00 | ||||||
| Low Grade | 4.0 | 0.42 | 54 | 13.9 | 0.47 | 212 | 48.5 | 0.50 | 774 | 66.4 | 0.49 | 1040 | 0.3 |
| Total Moolart Well | 15.0 | 1.21 | 584 | 18.8 | 0.72 | 433 | 58.0 | 0.65 | 1,204 | 91.8 | 0.75 | 2,220 | |
| Garden Well | 44.7 | 1.33 | 1,914 | 17.2 | 1.2 | 644 | 61.9 | 1.29 | 2,558 | 0.50 | |||
| Erlistoun | 2.3 | 1.92 | 143 | 3.0 | 1.88 | 179 | 5.3 | 1.90 | 321 | 0.50 | |||
| Satellite Deposits | |||||||||||||
| Dogbolter | 0.9 | 2.91 | 87 | 0.9 | 2.91 | 87 | 1.00 | ||||||
| Rosemont | 14.6 | 1.68 | 793 | 6.7 | 1.3 | 285 | 21.3 | 1.57 | 1,078 | 0.50 | |||
| KingJohn | 0.7 | 3.18 | 72 | 0.7 | 3.18 | 72 | 1.00 | ||||||
| Russells Find | 0.4 | 3.84 | 55 | 0.4 | 3.84 | 55 | 1.00 | ||||||
| Baneygo | 0.8 | 1.70 | 43 | 0.8 | 1.70 | 43 | 0.50 | ||||||
| Reichelts Find | 0.1 | 3.69 | 17 | 0.1 | 3.69 | 17 | 1.00 |
APPENDIX 3 MOOLART WELL QUARTERLY OPERATING STATS
| Dec11 Quarter |
Sept 11 Quarter |
Dec 2011 Quarter |
Mar 12 Quarter |
Jun 12 Quarter |
|
|---|---|---|---|---|---|
| Ore mined (tonnes) |
621,862 | 657,919 | 619,239 | 598,048 | 655,101 |
| Ore milled (tonnes) |
644,179 | 636,812 | 636,058 | 580,495 | 636,114 |
| Grade(g/t) | 1.34 | 1.40 | 1.44 | 1.28 | 1.39 |
| Recovery(%) | 94 | 92 | 89 | 92 | 92 |
| Production(oz) | 26,025 | 26,477 | 26,189 | 22,005 | 26,228 |
| Cash cost (A$/oz) |
510 | 487 | 525 | 545 | 532 |