Paul Benson Troy Resources

Transcription

1 Paul Benson Troy Resources

2 Investor Update February 2009

3 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 NL (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 January 10, 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. 3

4 Overview Troy s Mission is to create value for shareholders Troy s Vision is to become a profitable mid-tier gold producer Troy is a dividend paying junior gold producer focused on growth Track record of low-cost mine development and gold production Gold exposure at a compelling valuation Additional value in Andorinhas Iron ore A$60M in cash 4

5 The Company Junior Gold Producer Focused on Growth Listed on ASX since symbol TRY Listed on TSX Jan symbol TRY 74.7M* shares outstanding A$1.36** share price (52 Week Range A$ A$0.67) ~A$100M market cap A$60M cash and bullion as at December 31, 2008 Paid A$27.5M through 9 consecutive cash dividends No debt No forward sales Insider ownership ~14% * Includes 4.9M Partly Paid shares ** Based on 18 February,

6 Snapshot Key Statistics (A$) Ordinary Shares: 69.8m Partly Paid Shares: 4.9m Options: 2.8m Share Price as at 18 Feb 09: $1.36 Market Cap as at 18 Feb 09: $100m Net Debt / (Cash) 1 : ($60m) Enterprise Value: $40m Relative Share Performance 12 Months ADU ALD AND AXM BCD BDG CRE DOM GRY IGR IAU LRL MDL MUN NGF OGC RRL SBM TMR TRY 6 18/04/ /05/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09 /2008 3/10/ /10/ /10/ /11/ /11/ /12/ /12 / /01/ /01/ /0 2/ /03/ /04/ /02/ /0 3/

7 Relative Value Troy is cheap, relative to its peers EV / Reserve oz (A$/oz) $1,800 $1,600 1,569 $1,400 $1,200 Market Cap & Enterprise Value $m $1,000 $800 $600 $400 $ $600 $0 $ $400 $300 Market Cap $ EV $100 $0 EV / Resource oz (A$/oz) $1,000 $ $800 $700 $600 $500 $400 $ $ $100 $

8 Senior Management Paul Benson, CEO (Started with Troy October 2007) 20 years experience; degrees in geology, mining engineering and finance. 7 years with BHP Billiton before that Rio Tinto, RGC Ken Nilsson, Executive Director - Brazil (Started with Troy 1997) Mining engineer; 30+ years international mine construction and production experience Peter Doyle, VP Exploration & Bus. Development (Started with Troy 2005) Geologist; 28 years exploration experience including Freeport and Gold Fields Limited David Sadgrove, CFO (Started with Troy 2007) Australian Chartered Accountant, trained with Ernst & Young Audit, 15+ years commercial experience with multinational listed corporations in Australia and the UK 8

9 Board of Directors John Dow, Non-Executive Chairman Mining Industry Consultant; former Managing Director of Newmont Australia, + 40 years industry experience John Jones, Non-Executive Director Prominent participant in gold mining sector for 40+ years Denis Clarke, Non-Executive Director Geologist; 30 years experience in exploration and mining Alan Naylor, Non-Executive Director Financial adviser; founder of Troy; 30+ years experience Gordon Chambers, Non-Executive Director Canadian Lawyer Paul Benson, Executive Director Ken Nilsson, Executive Director 9

10 We Have a Positive Impact People Community Environment 10

11 What We Own Gold Assets Andorinhas Gold Mine Brazil Sandstone Gold Mine Australia Gold processing plant in storage Volta Resources Inc. (TSX: VTR) - 3.6% Portfolio of prospective exploration assets - Brazil, Australia, and Mongolia Andorinhas Gold Mine BRAZIL Cayenne Belém Fortaleza Salvador Brasilia Rio de Janeiro Sandstone Gold Mine Other Assets A$60M cash Andorinhas, Brazil Iron-Ore Daly River, Australia Zinc Sandstone, Australia Nickel 11

12 Proven Mine Operator and Developer Five mines delivered over the past 10 years Produced ~410,000 oz of gold at average cash cost of US$201/oz over the 4 years from 2004 through FY2008 a year of transition with Sertão closing and Sandstone operations winding down and construction of new Andorinhas mine Gold Production 000 s of Ounces ,341oz 32,450oz H

13 Troy Financial Results Net Income & Operating Margin Net Income from Continuing Operations Paying Dividends Troy has a track record of dividend each year since A$8M A$16M A$20M FY2008 was a year of transition as the Sertão mine closed and Andorinhas ramped up to full production while spending over $10M for the future through exploration and iron ore feasibility A$13.5M $0.050 $0.055 $0.060 $0.065 $0.070 $0.075 A$M 5 0 A$-17.6M A$/share $0.040 $0.045 $ H Fiscal Years Ending June 30 Fiscal Years Ending June 30 13

14 Andorinhas Gold Mine, Brazil From Acquisition to first production in 16 Months for < US$20M ~50,000oz/a with an initial 5-year mine life Forecast cash costs: ~US$300/oz US$400/oz Ongoing exploration for gold and iron ore 14

15 Lagoa Seca Open Pit Mine April 2007 November 2008 Mining Commenced April 2007 and was completed in November 2008 Mined: 3.31g/t containing 43,489oz (completed pit) Processed (As of Dec 31, 2008: 4.82g/t containing 21,389oz Stocks: 2.73g/t containing 25,756oz 15

16 Mamão Underground Mine 16

17 Andorinhas Region First Mover Advantage Consolidated Regional Land Position JV deals to earn 100% ownership on two additional major land packages that triples Troy s regional land position Located within trucking distance of Andorinhas mill Only processing mill in region Ongoing regional project reviews Aggressive gold and Fe exploration drilling program with 54,000m completed since April

18 Australia Sandstone Gold Mine Exploration Potential Gold production for the 2007/08 year was 33,846oz January 2009 announced decision to extend production adding 30,000 oz through calendar 2009 Protected by A$900 put options Nickel potential being tested by JV partner: Western Areas NL (ASX/TSX listed) Troy retains gold discoveries and exposure to nickel potential Recommence gold exploration in March Quarter

19 Andorinhas Project Iron Ore All pit sampling results received for colluvial iron ore - Hematite rich colluvium up to 5.2m thick identified Lump size fraction (>6.3mm or ¼inch) comprises an average of approximately 70% of the total volume of the colluvium Commercialisation pending permitting and off-take agreements Mineral Resources (inclusive of Mineral Reserves) Deposit Reporting cut-off Tonnes Fe % Al 2 O 3 % SiO 2 % P% LOI (% Fe) BRAZIL Andorinhas Abacaxi Indicated 26 4,900, Andorinhas Estrela Indicated 32 1,595, TOTAL 6,495, Mineral Reserves Deposit Reporting cut-off Tonnes Fe % Al2O3% SiO2% P% LOI (% Fe) BRAZIL Andorinhas - Abacaxi Probable 31 2,120, Andorinhas - Estrela Probable , TOTAL 2,810,

20 Complete Gold Processing Plant Immediately Available Plant throughput: Oxide Ore 2.0Mtpa Primary Ore 0.75Mtpa Conventional CIL plant with SAG Mill Reduces capital cost and shortens construction timeline for new mine development In storage in Cobar, NSW, East Australia 20

21 Compelling Value Troy Today: ~A$100M Market Capitalization 60% of Troy Market Cap supported by cash and investments Andorinhas Gold Project Sandstone Gold Mine Andorinhas Iron Ore Gold Processing Plant Exploration in Brazil Exploration in Australia Exploration in Mongolia ~A$40M ~A$60M Cash and other investments 21

22 Vision Become a profitable mid-tier producer How we will achieve it: Grow and extend production in the short term Green and brown fields exploration Capture value from existing strategic equity stakes M+A 22

23 Thank you