CEO Presentation Annual General Meeting, Perth - Tuesday 29 th November ASX:RSG

Transcription

1 CEO Presentation Annual General Meeting, Perth - Tuesday 29 th November 2016 ASX:RSG

2 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 Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australasian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Andrew Goode 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 Richard Bray and Mr Andrew Goode 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 first disclosed under the JORC Code Except where noted, it has not been updated since to comply with the JORC Code 2012 on the basis that the 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. 2

3 Resolute is a global gold producer, explorer, developer and innovator.

4 Company history Syama Ravenswood Golden Pride Higginsville Marymia Chalice Obotan 7Moz over 25 years of continuous gold production and counting

5 FY16: A Transformational Year Balance sheet strengthened all senior and secured debt repaid Record Net Profit FY16 Developing long mine life operations at our existing projects Applying our operational expertise globally

6 FY16 Highlights Outstanding Transformational Performance Financial Performance Operating Performance Balance Sheet A$213m FY16 net profit after tax 340,540oz Total gold sold for FY16 A$102m Total Cash and bullion at market value A$555m Revenue from gold and silver sales up 20% A$1,624/oz Average price for total gold sold (US$1,184/oz) A$91m Debt reduction A$167m Record gross profit from operations up 135% 315,169oz Total annual gold production for FY16 A$75m Net Cash, bullion/(debt) 129% Return on equity A$1,200/oz All-in-Sustaining Cost (US$874/oz) A$193m Net Operating Cash Flows 27.6c Diluted earnings per share Dividend announced of 1.7c per share

7 FY16: Financial highlights A$M $250 Operating Cashflow A$M $250 Underlying Profit $200 $200 $150 $150 $100 $100 $50 $50 $0 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 A$M Net Cash/Bullion Jun Jun-13 Jun-14 Jun-15 Jun $0 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 cps Earnings per Share Jun Jun-13 Jun-14 Jun-15 Jun

8 Outperforming the market Jul 21, 2015 Sep 01, 2015 Oct 12, 2015 Nov 16, 2015 Dec 21, 2015 Feb 01, 2016 Mar 14, 2016 Apr 28, 2016 Jun 09, 2016 Jul 22, 2016 Sep 02, 2016 Oct 14, 2016 Nov 25, 2016 RSG share price AUD gold price XGD (S&P/ASX All Ords Gold)

9 Ounces (oz) A$/oz Operational Consistency Gold production and costs 140, , ,000 $1,400 $1,200 $1,000 80,000 $800 60,000 $600 40,000 $400 20,000 $200 0 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Ravenswood Syama Sulphide Syama Oxide Cash Costs (A$/oz) All-In Sustaining Cost (A$/oz) $0

10 Going underground at Syama: developing a robust, long life flagship gold mine. Life of U/G Mine All-in-Sustaining-Cost US$881 per ounce Initial 12 year Operating life Pre-production capital of US$95 million fully funded 10

11 Ravenswood Extension Project: a strong future beyond Mt Wright. Sarsfield 1.2Moz Reserve & 1.3Moz Resource Buck Reef West 1.2Moz Resource Targeting a 10+ year Extension Project Nolans East 71koz Reserve 11

12 Bibiani: Feasibility Study confirms viable pathway to production. Life of Mine All-in-Sustaining-Cost US$858/oz per ounce Initial Ore Reserve of 3.7g/t containing 640,000oz of gold Pre-production capital of US$72 million 9 month timeline to production

13 FY17: Transformation Continues Prioritising sustainable dividends Diversifying our production base Reducing All-in-Sustaining Costs (AISC) through innovation Ambition to be producing >450kozpa from 3 operations by 2020

14 Production (oz) Production Outlook 500, , , , , , , , ,000 50,000 0 FY17 FY18 FY19 FY20 FY21 Bibiani Ravenswood Syama

15 Reserve Life Benchmarking Ravenswood Syama Resolute Cowal 9 Mt Rawdon 8 Mt Carlton Mungari 4 7 Evolution Edna May 5 Cracow 2 Ernest Henry 9 Jundee Kundana 3 5 Northern Star Kanowna Belle 3 Paulsens 1 Garden Well Rosemont 5 5 Regis Moolart Well Leonora Gwalia 2 7 St Barbara Thunderbox Carosue Dam 4 7 Saracen Reserve life (years) Source: Publicly available company documents, presentations and websites and broker research. Reserve life adjusted for recovery.

16 A renewed focus on exploration Organic growth through discovery

17 World class, belt scale tenure Heavily endowed and underexplored Early exploration success at the Nafolo discovery south of the main Syama orebody Expansion of existing inventory at Syama, Ravenswood, and Bibiani Highly prospective, underexplored tenure spread across Mali, Cote d Ivoire, Tanzania and Australia Drilling currently in Mali, Cote d Ivoire and Australia Strong balance sheet enables renewed focus on exploration Backing good teams in the right locations hunting for future Resolute gold mines Resolute is exploring more than 4,200km 2 of prospective tenure across Australia and Africa

18 Resolute value chain Continuous improvement across the business Business Development Exploration Resource Estimation Reserve Estimation Mine Planning Mining Operations Mineral Processing Kilo Goldmines (KGL.tsx-v) Manas Resources (MSR.asx) Nafolo discovery Syama deeper drilling extensions Bibiani resource expansion Syama 6.0Moz Ravenswood 4.3Moz Bibiani 1.8Moz Syama 3.1Moz Ravenswood 1.8Moz Bibiani 0.6Moz Syama UG DFS Ravenswood extension project Bibiani Feasibility Study Nolans East open pit mining commences Syama decline commences Syama oxide circuit success Project 85 Project Reprise Project Phoenix Project 2.4

19 A mining company of the future Utilising technologies and data to advance business performance Mining & Processing Corporate

20 A continued focus on Africa An abundance of natural resources Each kilometre of African soil holds just $25,000 of proven assets compared to $125,000 in the developed world. The gap isn t evidence of Africa s lower reserves, though, but a sign of how little of it has been surveyed. The Wall Street Journal

21 Golden Pride 1996 to 2014 Exploration Feasibility Construction Production Profitability Community Rehabilitation 21

22 Resolute Community Investment: Genuine care for our environment, communities and assets Health Building & refurbishing Clinics Training community doctors Drought relief aid Education Building schools Training & development of mine employees Supporting Mine Training Centre in Sikasso Water Solar powered pumps and water supply tanktower in Fourou Installing water bores and hand pumps Sustainability Potential connection of Fourou to National Grid Power Building community centres Employment of local service providers

23 The Resolute Way: our pillars Building a truly great company to deliver enduring value 1. Safe and ethical operator 2. Global cost competitiveness 3. Enduring value 4. Financial discipline 5. Performance based culture 6. Innovation, perseverance and hard work

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