AI assistant
Resolute Mining Limited Investor Presentation 2017
10548_rns_2017-09-05_33a84f34-cf90-4bda-9189-6abbff9bcb13.pdf
Investor Presentation
Open in viewerOpens in your device viewer
Mine gold & create value in Africa
Presentation by Mr John Welborn, Managing Director & CEO Africa Down Under 2017
Cautionary Statement
This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove not to be correct. The projections are merely estimates by Resolute, of the anticipated future performance of Resolute's business based on interpretations of existing circumstances, and factual information and certain assumptions of economic results, which may prove to be incorrect. Such projections and estimates are not necessarily indicative of future performance, which may be significantly less favourable than as reflected herein. Accordingly, no representations are made as to the fairness, accuracy, correctness or completeness of the information contained in this presentation including estimates or projections and such statements, estimates and projections should not be relied upon as indicative of future value, or as a guarantee of value of future results. This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase securities in Resolute Mining Limited.
The information in this report that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Andrew Goode who is a member of the Australasian Institute of Mining and Metallurgy and Mr Bruce Mowat, a member of The Australian Institute of Geoscientists. Mr Andrew Goode and Mr Bruce Mowat both have more than 5 years' experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking 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". Mr Andrew Goode and Mr Bruce Mowat are full time employees of Resolute Mining Limited Group and each hold equity securities in the Company. They have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears. This information was prepared and disclosed under the JORC code 2012 except where otherwise noted. Particular Reserves and Resources remain 2004 JORC compliant and not updated to JORC code 2012 on the basis that information has not materially changed since it was last reported.
In providing this presentation, Resolute has not considered the objectives, financial position or the needs of the recipient. The recipient should obtain and rely on its own financial advice from its tax legal accounting and other professional advisers in respect of the recipients objectives financial position and needs. To the maximum extent permitted by law neither Resolute nor its related corporations ,directors, employees or agents nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. You represent and confirm by attending and or retaining this presentation that you accept the above conditions.
Calculations of economic contributions contained in this presentation are unaudited estimates only.
Long life, large scale assets
Three assets across Australia and West Africa
Syama Gold Mine Mali, West Africa
Resolute has a successful history of >10 years at Syama
Targeting up to 250kozpa at AISC of US$881/oz
12 year mine life
Sublevel Cave (SLC) Underground
Mine of the Future
Ravenswood Gold Mine Queensland, Australia
A successful operating history of ~13 years at Ravenswood
Targeting up to 140kozpa at AISC of US$880/oz
13 year mine life
Ravenswood Extension Project (REP)
Bulk-tonnage open pit mining
Bibiani Gold Mine
Ghana, West Africa
Resolute acquired the Bibiani Gold Mine in mid-2014
Targeting >100kozpa at AISC of below US$858/oz
Successful Phase 1 drilling program in 2014-2015
Initial 5 year mine life
Phase 2 drilling targeting >100kozpa for 10 years
21 years Resolute has continuously operated in Africa
4,300,000 ounces of gold produced from 20 years of investing in Africa
2,065 Local employees & contractors currently employed at Syama& Bibiani
US$1,500,000,000 Total economic contributions from 20 years of investing in Africa
US$328,000,000 Total taxes & royalties paid from 20 years of investing in Africa
US$1,200,000,000 Paid to local vendors and employees from 20 years of investing in Africa
Golden Pride Gold Mine, Tanzania
Golden Pride Gold Mine, Tanzania
- Royalties US$48,000,000
- CSR Spending US$3,500,000
- Corporate and other taxes US$86,000,000
- PAYE tax US$30,000,000
- Local vendor payments US$411,000,000
- Local salaries US$28,000,000
US$606,000,000 Total economic contributions to Tanzania
ObotanGold Mine, Ghana
| Exploration | |
|---|---|
| Feasibility | |
| Construction | |
| Production | |
| Profitability | |
SyamaGold Mine Overview
6.0Moz Total Resource 3.1Moz Total Reserve
2.4Mtpa (170kozpa) Sulphide Production Rate 1.5Mtpa (70kozpa) Oxide
12 Year Underground Mine Life
US$881/oz LOM AISC - Underground
15
Syama Gold Mine, Mali
- Royalties US$76,000,000
- CSR Spending US$3,000,000
- Local vendor payments US$616,000,000
- PAYE tax US$71,000,000
- Other taxes US$13,000,000
- Local salaries US$41,000,000
A world class opportunity 10Moz and counting, 80km of strike untested below ~200m
- Resolute controls an 80km strike length of the 10Moz Syama shear zone
- Majority of exploration to date has been focused on shallow oxide open pit orebodies
- Significant exploration upside below current open pit designs extending high grade shoots at depth
- World class tenure covering an underexplored belt already yielding a number of multi-million ounce orebodies
A major new gold discovery at Syama
Game changing new discovery at Nafolo
- Adjacent to 8Moz Syama Deposit
- Potential to transform Syama operation
- Untested to the south and at depth
- All drillholes to date have intersected gold mineralisation
- Remains open in all
Syama Gold Mine One of Africa's premier gold mines
| Randgold | Acacia | Centamin | Newmont | Resolute | Randgold |
|---|---|---|---|---|---|
| Kibali | Bulyanhulu | Sukari | Ahafo | Syama | Loulo |
| 19.7Moz | 18.7Moz | 12.9Moz | 10.4Moz | 10.0Moz | 9.9Moz |
| Goldfields | Anglogold | Goldfields | Anglogold | Iamgold | Randgold |
| Tarkwa | Geita | Damang | Iduapriem | Essakane | Gounkoto |
| 9.1Moz | 7.3Moz | 6.0Moz | 5.6Moz | 5.1Moz | 4.8Moz |
BibianiGold Mine Overview
1.2Mtpa >100koz Proposed Annual Production
Mining Rate
1.8Moz Total Resource 0.6Moz Total Reserve
5 Year Initial Mine Life
9 months Timeline to production
20
Africa: the future is gold
Corporate Summary (ASX:RSG)
| Shares on issue | 736,982,768 | Share Price | |
|---|---|---|---|
| Share Price | A$1.26 | ||
| MarketCapitalisation | A$929M(US$740M) | ||
| Averagedaily volume | 8.0M Shares | DUA | |
| Cash,bullion, investments | A$290M (US$223M) at 30 Jun 2017 | $ | |
| Debt | A$34M (US$26M) at 30 Jun 2017 | Jul 04,AugSepNovDecFebMar | |
| FY18 Guidance | 300,000oz gold production@ AISC A$1,280/oz(US$960/oz) | 201615,26,07,19,03,17,201620162016201620172017 | |
| Dividend Policy | 2% of annual gold productionofferedin gold or cash | ArgonautBaillieu HolstBell Potter | |
| SubstantialShareholders | ICM GlobalFunds20.43%Van Eck 8.97% | CanaccordGenuityCitigroupAnalystEuroz | |
| InstitutionalShareholders | Oppenheimer FundsIFMInvestorsBaker Steel Capital ManagersL1 Capital | CoverageGlobalMining ResearchHartleysMacquarieMorganStanleyRBC Capital Markets |
| Argonaut |
|---|
| Baillieu Holst |
| Bell Potter |
| CanaccordGenuity |
| Citigroup |
| Euroz |
| GlobalMining Research |
| Hartleys |
| Macquarie |
| MorganStanley |
| RBC Capital Markets |
| James WilsonWarren Edney |
|---|
| Duncan HughesPatrick Chang |
| Trent Allen |
| Jon Bishop |
| David Cotterell |
| Paul Howard |
| Ben Crowley |
| Brendan Fitzpatrick |
| Paul Hissey |
Mine Gold. Create Value.
| Scale | Longevity | Value | |
|---|---|---|---|
| 5.6MozReserves | 12yrs@ Syama13yrs@ Ravenswood | P/NAV0.6x | |
| Balance sheet | Track Record | Growth | |
| $290MCash, Bullion & Listed Investments | 288yrsMozproducing& counting | NafoloBibianiTabakaroni |
Turn your Resolute dividends into GOLD
If you hold 5,000 shares or more, you have the opportunity to receive your dividends from Resolute in gold.
Open an account at The Perth Mint by 13 October, 2017 to be ready to receive your dividends in gold. Go to www.perthmint.com.au/storage/resolute or call +618 9421 7250.
Your gold awaits!
Record Date: 29 September 2017
Payment Date: 27 October 2017
