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Resolute Mining Limited — Investor Presentation 2007
Sep 24, 2007
10548_rns_2007-09-24_0d7c5717-dd6e-4fc8-9dd9-d9dd89499dab.pdf
Investor Presentation
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ASX ANNOUNCEMENT
CHIEF EXECUTIVE OFFICER PRESENTATION
Attached is a copy of the Chief Executive Officer’s presentation to be given at the Denver Gold Forum today.
For and on behalf of the Board
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GREG FITZGERALD Company Secretary
25 September 2007
DENVER GOLD FORUM
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SEPTEMBER 2007
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http://www.resolute-ltd.com.au
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SUBSTANTIAL & GROWING GOLD PRODUCER
n Strong Gold Fundamentals
l Reserves ~3m ozs
- l Total Resources ~10m ozs
l Two Mines, Production ~300,000 oz pa
l Significant Development In Progress
l Active Exploration, Prospective Tenure
RESOURCE PROFILE
(000ozs, 2006)
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12000
10000
8000
Exploration
6000 Development
Operations
4000
2000
0
Reserves Total
Resources
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SUBSTANTIAL & GROWING GOLD PRODUCER
n Strong Organic Growth
l Major Development Phase l Involves Over 50% of Reserve Base l A$215m from July 06 – July 08 l Syama ~A$45m Spent
l Mt Wright ~A$30m Spent
PRODUCTION PROFILE (indicative attributable production, 000ozs by FY)
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600
500
400
Syama
300 Ravenswood
Golden Pride
200
100
0
2007 2008 2009 2010
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CORPORATE SUMMARY
Capitalisation Issued Shares: 231.1 million Unlisted Options: 2.2 million 6 mth Price Range: A$1.89 - $1.22 Avg Monthly T/O: 8.1 million Market Cap: A$360 million
Major Shareholders Alliance Life Common Fund 38.7% Barclays Capital 7.2% Officium 6.7% CBA 5.6% Acorn Capital 5.3%
Board of Directors Peter Huston – Non Exec Ch Peter Sullivan - MD Tom Ford – Non Exec Bill Price – Non Exec
SYAMA
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SYAMA
n Major New Asset
n Resolute 80% Mali Govt 20%
n Significant Resource – 6m ozs
n Additional 250,000+ ozs pa of Production
n Potential for 10+ Year Operation
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SYAMA
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SYAMA Economics (Feb 07)
n Reserve
1.6 m ozs
n Production
~250,000 ozs pa
n Average Cash Cost
n Capex
- n Net Cash Return*
US$370/oz US$118 million US$155 million
n IRR*
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22.4%
* Gold US$600/oz, 6% Royalty
SYAMA Metallurgy
Issues - Carbonaceous - Refractory
BHP Design Randgold Design Resolute Design §Whole of Ore Roast §Whole of Ore Roast §Concentrate Roast §Carbonate Host Rock §Concentrate Feed §Scrubber for SO2 for SO2 Capture §Carbonate Host Rock Capture §Dry SAG Milling for SO2 Capture §Wet Milling §Dry SAG Milling §New Float Plant §Float Plant §Refurbish Plant §Power Station
SYAMA
Progress
n Fiscal Terms Settled
n Construction in Progress
n Plant Design Completed
n Procurement Advanced
n Key Operating Staff Recruited
-
n Gearing Up for Mining
-
n Oxide Production 1H 2008
n Sulphide Production 2H 2008
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SYAMA Free Milling Ore
Six km of strike subject to systematic drill testing – consistent results over more than 1.5km length north of the A21 pit
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Recent Reverse Circulation & Aircore Drill Intercepts
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Strong results over 1.6 km of strike, mineralisation still open to north, south and at depth
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SYAMA Exploration
Project Areas Regional Aeromagnetics and Prospects
Strong exploration commitment to a poorly explored and very prospective gold belt with a strike length of over 75km under Resolute control
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RAVENSWOOD
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RAVENSWOOD Mt Wright Feasibility
- n Recoverable Gold
n Production Target
650,000 ozs 1.0 mtpa
- n Average Cash Cost
A$340/oz
n LOM Capex A$77m
- n Treated Through Nolans Plant
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RAVENSWOOD Mt Wright Development
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n Decline Progress 3.4km n 2 Stopes Developed n On Schedule n Costs in line with Feasibility n Development Drilling Shows Higher Tonnes n Good Recovery at Plant
RAVENSWOOD Operations
n 06/07 – 117,521 ozs @ Cash Cost A$781/oz
n Sarsfield Eighteen Months Life
n Mt Wright Integration
n Plant Changes
n Improved Production Forecast
n Cash Cost Decrease
RAVENSWOOD Exploration
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Exploration Targets 2008
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Ravenswood Regional Exploration is now gearing up as historical data compilation and reconaisance work is completed and drill testing of high priority targets begins
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GOLDEN PRIDE
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GOLDEN PRIDE
Operations
n 06/07 – 138,423 ozs @ Cash Cost US$403/oz
n Pit Re-Optimisation Finalised
n 6 Year Production Life
n New Mining Contractor
n Production Improvement Forecast
n Cash Cost Decrease
GOLDEN PRIDE Development
n Potential Pit Life Extension
n 0.4m resource ozs
n Deeper Pit
n South, West and Eastern Extensions
- n Nyakafuru JV (66%)
n 0.7m resource ozs
- n 120kms from GP
GOLDEN PRIDE Regional Exploration Buzwagi Location and Tenure Golden Pride Resolute Tenure Nzega Greenstone belt (mapped) 20km Interpreted Shear Zone Consolidating tenure around Golden Pride and exploring under shallow
Consolidating tenure around Golden Pride and exploring under shallow cover with new exploration tools
EXPLORATION
n Strong Commitment to Exploration
n Key to Adding Value at Existing Assets
- n Budget for 2008 – A$10 million
n Expenditures On Very Prospective Tenure
l Mali l Tanzania l Ravenswood
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HEDGING PROFILE (indicative production, 000ozs by FY)
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600
500
400
Production
300
Hedging
200
100
0
2008 2009 2010
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CORPORATE
n Very Active Year
n 06/07 Profit After Tax $170m
n Cash $67m (30/06/07)
n Finalising Funding of Development Activities
- n Value Add Opportunities
SUMMARY
n Gold
n Experienced Operator
n Strong Growth Phase n High Leverage to Gold Price
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