INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA CONVENTION March 2012 Forward Looking Statements This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, reserves and resources, the financial position of Troy Resources Limited (the Company ), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based on information currently available and assumptions believed to be reasonable there is no assurance that actual results will be consistent with such forecasts and forward-looking statements. A number of factors could cause actual results, performance, or achievement to differ materially from the results expressed or implied in such forecasts and forward-looking statements. For a description of such factors please see the section entitled Risk Factors in the Company s amended and restated preliminary prospectus dated 10 January 2008 available under the Company s profile at Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. 2

2 Troy - A Profitable Mid Tier Gold Producer Listed on the ASX (1987) and TSX (2008) Code: TRY Dividend Paying 12 fully franked cash dividends over the last 12 years. Two operating gold mines Andorinhas, Para State, Brazil Casposo, San Juan Province, Argentina Sandstone, WA, Australia free carry Ni exploration JV with Western Areas (WSA) Daly River Andorinhas Gold Mine Belém Sa nd stone Gold Mine Perth We ste rn Austra lia X So u t h Austra lia Queensland N.S.W. BRAZIL Brasilia Belo Horizonte 500 km Vic to ria Syd ney A.C.T. Rio de Janeiro Sao Paulo San Juan Casposo Gold Silver Mine Buenos Aires 3 Troy A Period of Strong Growth FY % increase in gold production to 71,614 oz FY % reduction in cash costs to US$554/oz net of silver credits FY Net Profit of A$14.6m Paid 12th fully franked cash dividend of 6 cents per share in January 2012 December Quarter 39% increase in gold production to 33,329 oz December Quarter 36% reduction in cash costs to US$373/oz net of silver credits 76% increase in H1 FY2012 profit after tax to A$10.7m Excludes additional A$5.5m unrealised PAT at the end of the half on unsold production Guidance FY koz gold equivalent Doubled Casposo exploration budget to $15m Discovery of new high-grade zone at Casposo delivering 19% increase in M+I contained gold equivalent 4

3 Corporate Snapshot Key Statistics (A$) Ordinary Shares: 88.8M Options: 5.0M Share Price as at 22 Feb 2012: $ Week Range: $ $5.01 Market Cap as at 22 Feb 2012: ~A$435M Net Cash as of 31 December 2011: ~A$4.6M [Cash A$30.6m + Debt A$26m] Shareholders Non-Executive Directors David Dix, Non-Executive Chairman Gordon Chambers, Non-Executive Director Fred Grimwade, Non-Executive Director John Jones, Non-Executive Director Robin Parish, Non-Executive Director Senior Management Paul Benson, CEO & Managing Director Peter Doyle, VP Exploration & Bus. Development Ken Nilsson, Executive Director Projects David Sadgrove, CFO & Company Secretary Andrew Storrie, COO 5 Andorinhas Gold Mine - Brazil g/t Au 6

4 Andorinhas Gold Mine - Brazil FY2010: 31,568oz at US$634/oz FY2011: 49,099oz at US$519/oz December Quarter 2011: 12,625oz at US$542/oz Guidance FY koz Current Reserves support the operation through to FY15 with potential at depth and regionally to extend the mine life Potential for additional ounces from Melechete Extension, Arame, M1 Vein, Lagoa Seca West, Coruja, Luiza 7 Exploration Potential Exploratory sill in Arame Resource Potential to add resources at depth 8

5 Melechete Lode Drilling and Grade Distribution 9 Casposo Project San Juan Province 10

6 San Juan Mineral Project Endowment Mines & Casposo Project Access 11 Casposo the Crown Jewels Reached budget throughput midway through month of September 6,606 oz unit cash cost of US$377/oz Au net of silver credits December Quarter production 87% increase to 20,701 oz Au with unit cash cost falling 60% to US$270/oz Au net of 274,660 oz of silver credits (silver up 96%) Co product costing 25,873 oz Au_eq (up 86%) at US$551/oz Au_eq (down 38%) Guidance FY koz gold equivalent The site moved from diesel generated power to grid power in December further lowering costs Significant exploration results at Casposo with potential dependent on mine planning, to: Extend mine life (additional ounces) Avoid drop in production in years three and four (access to higher grade) Lower unit costs (access to higher grade) New Reserve and production profile out early June quarter 12

7 Blue Sky 13 Total Gold Equivalent Production Original data from 2010 NI Actual results delayed by slower than expected ramp up Aim to avoid the drop in production in Years 3 and 4 through proving up additional higher grade ore eg Kamila SE Extension Aim to extend mine life through proving up additional surface and underground Reserves 14

8 Casposo 2010 Mining Reserves Highest value intercept on the property to date HOLE: CA g/t Au 4,423g/t Ag 15 New Resource Area Focused on First 500m of 1.5km Structure 16

9 New Resource Area Focused on First 500m of 1.5km Structure Table 1a: Kamila Southeast Resource Estimate (Using 2g/t Au_Eq Cut off) Resource Classification Tonnes Gold (g/t Au) Silver (g/t Ag) Gold Equivalent Au_Eq (g/t) Contained Metal (Au_Eq oz) Measured 96, ,600 Indicated 161, ,300 Total Measured & Indicated 257, ,900 Inferred 226, Note: Discrepancies may occur due to rounding Table 1b: Kamila Southeast Resource Estimate High Grade Zone (Above 5g/t Au_Eq Cut off) Resource Classification Tonnes Gold (g/t Au) Silver (g/t Ag) Gold Equivalent Au_Eq (g/t) Contained Metal (Au_Eq oz) Measured 87, ,500 Indicated 109, ,600 Total Measured & Indicated 196, ,100 Inferred 108, ,100 Note: Discrepancies may occur due to rounding 17 Total Gold Equivalent Production Original data from 2010 NI Actual results delayed by slower than expected ramp up 18

10 Exploration Model Pajingo Mine 19 New Ore Grade Intercepts 20

11 2011 Drilling Results 21 Lease Drill Targets 22

12 Castaño Nuevo Target, Argentina 23 Looking Forward Casposo reaching its full potential it will be one of the lowest cost gold mines reporting on the ASX Release updated mine plan for Casposo in June quarter incorporating the high grade Kamila SE Extension discovery Ongoing exploration at Casposo and Andorinhas Opening of Troy office in Toronto raising the profile on the TSX Continue to look for the next M+A opportunity 24

13 THANK YOU Qualifying Statements 1. Au_Eq grade calculated using a gold to silver ratio of 1:70. As per May 2010 Current Casposo NI Technical Report The gold equivalent cut-off was determined according to the parameters below: Au/Ag ratio 1:70.00 Au Price US$933.33/oz Ag Price US$15.50/oz Au processing recovery 93.7% Ag processing recovery 80.6% Gold equivalency is determined by metal price and recovery factors. Metal prices were the average prices assumed in the Casposo life of mine plan. Processing recoveries were determined by metallurgical test work carried out by independent consultants on diamond drill core from Casposo. The equivalency is calculated by the formula - Gold: Silver ratio: = (gold price silver price) x (gold recovery silver recovery) = ( ) x ( ) = Gold equivalency is calculated by the formula: Au_Eq g/t = Au g/t + (Ag g/t 70.00) 2. NSR No Significant Results All samples were prepared and assayed by Alex Stewart (Assayers) Argentina Laboratory in Mendoza Argentina. 3. Gold by FA and either a gravimetric or AAS finish, using method gold 4-50 or gold 4A 50 for samples with gold>10g/t 4. Silver by three techniques: four-acid digestion followed by AAS reading for check samples up to February 2006, aqua regia digestion followed by inductively coupled plasma with optical emission spectroscopy (ICP-OES) reading for all samples in mineralised intersections after February Method numbers were GMA, ICP-AR-39 and silver 4A-50. Geological information in this Report has been compiled by Troy s Vice President Exploration & Business Development, Peter Doyle, who: Is a full time employee of Troy Resources NL Has sufficient experience which is relevant to the 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 Reporting of Exploration Results, Mineral Resources and Ore Reserves Is a member of the Australasian Institute of Mining and Metallurgy Has consented in writing to the inclusion of this data Information of a scientific or technical nature in this report was prepared under the supervision of Peter J. Doyle, Vice President Exploration and Business Development of Troy, a qualified person under National Instrument Standards of Disclosure for Mineral Projects, a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Doyle has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a qualified person as defined in National Instrument Standards of Disclosure for Mineral Projects. Mr Doyle has reviewed and approved the information contained in this report. For further information regarding the Company s projects in Brazil, Australia and Argentina, including a description of Troy s quality assurance program, quality control measures, the geology, samples collection and testing procedures please refer to the technical reports filed which are available under the Company s profile at or on the Company s website. This report contains forward-looking statements. These forward-looking statements reflect management s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, among others, future prices of gold, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations. 26