Regis Resources Limited · ASX:RRL
Regis Resources — BMO Investor Conference 2020
39 slides from Regis Resources's conference presentation, February 2020
Slide 1: BMO Investor Conference 2020
BMO Investor Conference 2020 JIM BEYER – Managing Director & CEO ASX:RRL
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT This presentation contains only a brief overview of Regis Resources Limited and its Production Targets, forecast financial information and estimates of Mineral Resources or associated entities (“Regis or RRL") and their respective activities and operations. The Ore Reserves, t
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW CAPITAL STRUCTURE 12 MONTH SHARE PRICE PERFORMANCE ASX Code RRL 20 7.00 Issued capital1 508.2M shares 6.00 Market capitalisation2 A$2.2B/US$1.5B 15 5.00 Millions Cash and gold on hand3 A$169M/ US$118 4.00 $AUD 10 3.00 Borrowings3 Nil 5 2.00 Resources4 8.2Moz 1.00 Reserves4 4.0Mo
Slide 4: Corporate Highlights
4 CORPORATE HIGHLIGHTS A$2.2B/US$1.5B company with 8.2Moz in Resources and 4.0Moz in Reserves with consistent Reserve replacement Production Guidance of 340,000 - 370,000oz gold at A$1,125-$1,195/oz AISC 1 (US$787-837/oz) and Growth Capital of ~A$62m/US$43m for FY2020 Strong dividend stream with cum
Slide 5: FY2020 Half Year Financial Highlights
5 FY2020 HALF YEAR FINANCIAL HIGHLIGHTS Record Net Profit EBITDA A$93M up 17% A$186m up 27% Net Profit Margin +25% EBITDA Margin 50% Cash flow from Cash & Bullion Interim Dividend operating activities A$169m* 8c per share A$147m up 16% No debt *Includes bullion on hand valued at $2,220 per ounce.
Slide 6: Executive Team
6 EXECUTIVE TEAM • Mining Engineer with 30 years of operational and development experience Jim Beyer across multi-commodities including both underground and open pit gold Managing Director • CEO of an ASX listed iron ore producer for seven years prior to joining Regis & CEO • Track record of deliver
Slide 7: People – The Foundation of Our Success
7 PEOPLE – THE FOUNDATION OF OUR SUCCESS Total 950 people – 338 employees & 612 contractors 35 30 25 20 15 10 12mma TRIFR* Renewed focus on safety performance and training Pockets of excellence but overall outcomes still inconsistent Risk management process upgrade ensuring appropriate hazard identi
Slide 8: Transparent Sustainability and ESG Reporting
8 TRANSPARENT SUSTAINABILITY AND ESG REPORTING Sustainability Metrics Health & Safety People & Culture Mental Health & Wellbeing Environment Rehabilitation & Closure Social Performance Corporate Governance
Slide 9: Industry Leader in Low Cost Production
9 INDUSTRY LEADER IN LOW COST PRODUCTION International peers (2019A) ALL-IN SUSTAINING COSTS 2019 & 2020 Forecast (US$/OZ) $1,400 Australian peers (2020E) $1,200 $1,000 AISC (US$/oz) $800 $600 $400 $200 $0 Source: Canaccord Genuity – February 2020. FX Assumption – 0.70AUD/1USD
Slide 10: Strong Performance on All Profit Measures
10 STRONG PERFORMANCE ON ALL PROFIT MEASURES FY20 Half Year continues the trend Net Profit After Tax Revenue 100 93 400 371 89 90 85 83 338 80 350 317 80 77 299 307 290 300 70 252 61 60 $ millions 250 $ millions 50 200 40 150 30 100 20 50 10 0 0 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2 FY20 2
Slide 11: Growth Strategy Continues
11 GROWTH STRATEGY CONTINUES Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Extension Expansion Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Duketon NSW Regional Exp
Slide 12: FY20 Guidance and Medium Term Outlook
12 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 US$787-$837/oz AISC 1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 13: Rosemont Underground Mine
13 ROSEMONT UNDERGROUND MINE First Development Progressing on plan Ore Delivered In July PRE-FEASIBILITY STUDY METRICS1 Commencement Capital A$36 million Maximum Cash Outflow A$41 million Average Mining Rate 480 - 600ktpa AISC A$1,120/oz Mine Life ~5 years First Ore Sept Q 2019 UG Resource – 1.7Mt @
Slide 14: Rosemont Underground Mine
14 ROSEMONT UNDERGROUND MINE Progressing on plan Key Milestones achieved to date: 1 year LTI free Total development of over 3.7km U/G Diamond Drilling underway Southern escapeway and return airway established Development of first ore levels complete First ore to mill U/G Development Face Cutting the
Slide 15: Rosemont Underground Mine
15 ROSEMONT UNDERGROUND MINE Considerable mine life extension potential - drill testing commenced Delivered In July
Slide 16: Garden Well Underground – Taking Shape
16 GARDEN WELL UNDERGROUND – TAKING SHAPE High-grade southern plunge highlights UG potential In July Zone of continuous mineralisation up to 10m true widths, 80 – 100m height and 300m N-S strike and extends mineralisation >300m below surface Recent Highlights : 3m @ 2.8 g/t Au 2m @ 5.1 g/t Au 8m @ 4
Slide 17: Baneygo Underground Potential
17 BANEYGO UNDERGROUND POTENTIAL Multiple high grade intercepts under Central Pit demonstrate potential Quartz dolerite host, same geology and mineralisation style as Rosemont High-grade vein systems expected to grow Highlights: 2m @ 15.4 g/t Au 4m @ 8.8 g/t Au 3m @ 12.7 g/t Au 2m @ 18.9 g/t Au 2m @
Slide 18: FY20 Guidance and Medium Term Outlook
18 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 US$787-$837/oz AISC 1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 19: McPhillamys Gold Project
19 MCPHILLAMYS GOLD PROJECT A Significant Organic Growth Opportunity Development Application (DA) is progressing – Exhibition and Submission period has closed with no objections from any regulators Regis’ Response to Submissions now underway DA outcomes feed into the Definitive Feasibility Study (DF
Slide 20: McPhillamys Gold Project
20 MCPHILLAMYS GOLD PROJECT 100% owned and one of Australia’s largest undeveloped open pittable gold resources MINERAL RESOURCE 2.29 Moz of gold ORE RESERVE 2.02 Moz of gold ANNUAL PRODUCTION AND MILLED GRADE 250 1.6 PRE-FEASIBILITY STUDY PHYSICALS1 1.4 200 Ore milled (Million tonnes) 60.1 1.2 Ounce
Slide 21: Discovery Ridge Project
21 DISCOVERY RIDGE PROJECT A Potential Satellite Open Pit Located 32km southwest of McPhillamys Mineral Resource – 10.4Mt @ 1.2 g/t Au for 391koz Near surface higher-grade mineralisation to add Indicative significant value to McPhillamys Gold Project pit outline Extra works required at McPhillamys t
Slide 22: FY20 Guidance and Medium Term Outlook
22 FY20 GUIDANCE AND MEDIUM TERM OUTLOOK Steady production growth with increasing underground contribution Production Guidance 340,000 – 370,000oz gold production at A$1,125-$1,195/oz AISC1 US$787-$837/oz AISC 1 Future Potential Production Step Change 400,000 McPhillamys Gold Project Discovery Ridge
Slide 23: Continued Life Extension - Reserve Growth
23 CONTINUED LIFE EXTENSION - RESERVE GROWTH The major contributors to the near replacement in CONSISTENTLY REPLACING RESERVES FY2019 of Ore Reserves were: 4.5 Maiden Underground Ore Reserve at 4.06 4.03 4.0 Rosemont of 123,000 ounces; and 3.5 89,000 ounces at Moolart Well – Extra McPhillamys Deposi
Slide 24: 8Moz Gold Discovered to Date
24 8Moz GOLD DISCOVERED TO DATE Landholding triples to 3,000 km2 giving Regis control of 90% of the belt Central Zone Accelerating Exploration in H2 2020 MOOLART WELL Exploration budget increased by $7m to $31m for FY2020 Risden Accelerated exploration on high-grade UG extensions including Rosemont,
Slide 25: Growth Strategy Continues
25 GROWTH STRATEGY CONTINUES Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Tooheys Well Gloster Open Pits Extension Expansion Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Duketon NSW Regional Exp
Slide 26: Corporate Highlights
26 CORPORATE HIGHLIGHTS A$2.2B/US$1.5B company with 8.2Moz in Resources and 4.0Moz in Reserves with consistent Reserve replacement Strong and Profitable Production profile Strong dividend stream with cumulative payments of A$448m/US$314m since 2013 Among the lowest cost gold producers globally with
Slide 27: Appendices
APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018 APPENDICES i) FY20 Half Year Financial Results ii) Hedging Strategy Details iii) Project Pipeline iv) Reserves and Resources - 31 March 2019 27
Slide 28: Appendix i) Financial Highlights
28 Appendix i) FINANCIAL HIGHLIGHTS Record Net Profit EBITDA A$93M/US$65m up 17% A$186m/US$130m up 27% Net Profit Margin +25% EBITDA Margin 50% Cash flow from Cash & Bullion operating activities Interim Dividend A$169m*/US$118m A$147m/US$103m 8c per share No debt up 16% *Includes bullion on hand val
Slide 29: Appendix i) FY2020 Half Year Physicals
29 Appendix i) FY2020 HALF YEAR PHYSICALS FY 2020 Half Year FY19 H1 Physicals DNO DSO TOTAL TOTAL Variance Ore mined (Mbcm) 0.67 1.39 2.06 2.52 -18% Production on track to meet full year guidance 340,000 – Waste mined (Mbcm) 3.19 10.19 13.38 13.15 +2% 370,000oz Stripping ratio (w:o) 4.8 7.3 6.5 5.2
Slide 30: Appendix i) FY2020 Half Year Financial Results: A$
30 Appendix i) FY2020 HALF YEAR FINANCIAL RESULTS: A$ Net Profit H1 FY2020 H1 FY2019 Unit 31 Dec 2019 31 Dec 2018 A$93M up 17% Ounces Produced oz 178,482 181,366 Ounces Sold oz 182,807 186,276 Average Realised Price A$/oz 2,063 1,696 Sales Revenue A$m 371.4 317.2 Royalties A$m (17.5) (13.3) Cost of
Slide 31: Appendix i) FY2020 Half Year Financial Results: US$
31 Appendix i) FY2020 HALF YEAR FINANCIAL RESULTS: US$ Net Profit H1 FY2020 H1 FY2019 US$65m Unit 31 Dec 2019 31 Dec 2018 Ounces Produced oz 178,482 181,366 up 17% Ounces Sold oz 182,807 186,276 Average Realised Price US$/oz 1,444 1,187 Sales Revenue US$m 260.0 222.0 Royalties US$m (12.3) (9.3) Cost
Slide 32: Appendix i) Strong Performance on All Profit Measures
32 Appendix i) STRONG PERFORMANCE ON ALL PROFIT MEASURES FY20 continues the trend Net Profit After Tax Revenue 100 93 400 371 89 90 85 83 338 80 350 317 80 77 299 307 290 300 70 252 61 A$ millions 250 60 A$ millions 50 200 40 150 30 100 20 50 10 0 0 2017 H1 2017 H2 2018 H1 2018 H2 2019 H1 2019 H2 FY
Slide 33: Appendix i) Cashflow Waterfall
33 Appendix i) CASHFLOW WATERFALL Strong cashflow from operations of A$179.1 (US$125.4m) supported the current phase of increased capital investment and also the payment of A$40.7m (US$29m) in dividends during the first half of FY2020 Cash & Bullion* on Hand - 31 December 2019 A$450m A$400m $179.1m
Slide 34: Appendix i) Dividend
34 Appendix i) DIVIDEND Regis continues to be an Australian gold industry leader on dividend payment metrics Interim dividend of 8 cps (A$41m/US$29m) fully franked payout: 11% of H1 FY20 revenue and 22% of EBITDA Regis has paid and/or declared 89cps - A$448m/US$314m in dividends since 2013 Level of
Slide 35: Appendix ii) Spot Deferred – Flexible Gold Hedge Book
35 Appendix ii) “SPOT DEFERRED” – FLEXIBLE GOLD HEDGE BOOK (31 Dec 2019) Regis’ hedge position reduced to ~429koz at an average of A$1,617/oz. 2,500 2,360 Regis is currently actively managing the process of selling into the 2,000 lowest price hedges. Currently at a rate of approximately 10koz per qu
Slide 36: Appendix iii) Project Pipeline
36 Appendix iii) PROJECT PIPELINE ▪ Moolart Well Ext. ▪ Baneygo – Idaho ▪ Gloster UG ▪ McPhillamys ▪ Gloster ▪ Moolart Well ▪ Garden Well UG ▪ Discovery Ridge ▪ Garden Well ▪ Beamish ▪ Duketon Greenstone Belt ▪ Garden Well OP Expansion ▪ Baneygo ▪ Russells ▪ Tooheys Well ▪ Tooheys UG ▪ Garden Well U
Slide 37: Appendix iv) Group Ore Reserves
APPENDIX 1 JORC COMPLIANT 37 ORE RESERVE Appendix ESTIMATES iv) GROUP 31 MARCH ORE RESERVES (312018 March 2019)
Slide 38: Appendix iv) Group Mineral Resources (31 March 2019)
38 Appendix iv) GROUP MINERAL RESOURCES (31 March 2019)
Slide 39: Further information: Jim Beyer
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200