Polymetals Resources Ltd. · ASX:POL

Polymetals Resources — Polymetals Mining — Investor Presentation (May 2011)

28 slides from Polymetals Resources's investor presentation, May 2011

  1. Slide 1: Over 25 years Polymetals has established a track record

    White Dam Gold Mine, South Australia Over 25 years Polym etals has established a track record of delivering profitable Australian resources projects ASX:PLY Investor presentation | May 2011

  2. Slide 2: Disclaimer

    Disclaimer  This presentation has been prepared by Polymetals Mining Limited  To the maximum extent permitted by law, none of Polymetals, its (“Polymetals” or the “Company”) to provide existing and prospective related corporations or their directors, employees or agents, nor any investors in Polym

  3. Slide 3: Overview: The Polymetals Way

    Overview The Polymetals Way Polymetals success emanates from our team of highly talented people who have strong “hands-on” capabilities developed from extensive experience. These capabilities allow us to operate in the „Polymetals Way‟ - enabling innovative, lean and safe, „fit for purpose‟ solution

  4. Slide 4: 1 Overview of Polymetals

    1 Overview of Polymetals —_— aN 2 POLYMETALS aE? MINING LIMITED

  5. Slide 5: Introduction

    Introduction An Australian precious and base metals producer  Focused on discovery, development and production of economically viable mineral assets  Interests in three projects  965km2 of tenements in key mining districts - Cobar, Broken Hill, Kalgoorlie  Currently producing gold at White Dam G

  6. Slide 6: Corporate overview

    Corporate overview Market capitalisation  $35.3 million (as at 20/5/11) Issued capital  IPO - 7 million shares at issue price of $1.00  36 million shares on issue Cash  $12.8 million (as at 30/4/11) Operating cash flow  $8.6 million (FY to 30/4/11) White Dam process plant Debt  nil May 2011 PO

  7. Slide 7: Capital structure

    Capital structure Shareholder Post-IPO Shareholding Stake (%) Directors David Sproule (Non-Executive Chairman)1,2 20,541,099 57.1 Jon Parker (Non-Executive Director) 125,000 0.3 David Carland (Non-Executive Director) 312,500 0.9 Fulton Smith (Chief Executive Officer) 67,500 0.2 Other pre-IPO shareho

  8. Slide 8: A compelling story

    A compelling story • 25 years of operations as a private company Proven track record • $1.6M in capital generating $25M in dividends & share buy-backs from development & operation of successful mining projects profitability & capital returns • Debt free Operational capability • Rapid development – c

  9. Slide 9: Strong highly capable Board

    Strong highly capable Board KEY BOARD MEMBERS David Sproule Jon Parker Chairman Non-executive Director  B. Eng. (Met) (Hons); Member AusIMM  B. Sc. (Hons); Grad. Dip. Bus. Admin.  +25 years‟ experience in acquisition, mine development &  +35 years in the resource and energy sectors - iron ore, p

  10. Slide 10: Strong senior management team

    Strong senior management team KEY EXECUTIVES David Kinsman, Chief Financial Officer  B. Comm, B. Ec., ACA  +20 years‟ experience across oil & gas, defence  Former CFO /CEO of Innamincka Petroleum  Previously, MIM Petroleum, Santos, Chevron, Boeing Andrew Lawry, Chief Operations Officer  B. AppS

  11. Slide 11: 2 Proven track record

    2 Proven track record Mt Boppy | Nimbus | Hellyer | White Dam

  12. Slide 12: Mt Boppy: two successful campaigns

    Mt Boppy: two successful campaigns 1993 - 1995: silver producer  treating supergene silver-rich tailings  innovative metallurgical solution  960koz silver and 5koz gold produced 2002 - 2005: gold producer Mt Boppy  rapid development - 4 months to Key project metrics: 2001 - 2005 campaign product

  13. Slide 13: Nimbus: successful silver producer

    Nimbus: successful silver producer 2004 - 2007: Delivered $8.9M EBITDA  rapid development - 5 months to production  capital efficiency - $5.8M for acquisition, start up & working capital  optimisation of production Nimbus silver production Key project metrics Ore processed (kt) 319 (g/t Ag) 352 S

  14. Slide 14: Hellyer: successful silver, lead, zinc project

    Hellyer: successful silver, lead, zinc project 2006 - 2008: Delivered $10.0M EBITDA  rapid development - 5 months to production  capital efficiency - $5M for start up  optimisation of production o HICs increased zinc recovery by 5% Hellyer production dredge o reagent optimisation increased lead K

  15. Slide 15: White Dam Gold Mine: strong cash flow

    White Dam Gold Mine: strong cash flow Polymetals: developer and manager  JV: 25% Polymetals; Exco Resources 75%  open cut mining  dump leach processing Outperforming on key metrics  from financing to production in 8 months  debt retired 9 months ahead of schedule White Dam dump leach (July 2010

  16. Slide 16: 3 Project pipeline

    3 Project pipeline Canbelego | Drew Hill | Boorara

  17. Slide 17: Three prospective projects

    Three prospective projects ... Canbelego: 204km2 (100%) Location: 46km E of Cobar, NSW Minerals: gold and base metals Geology: Cobar-style, epithermal characteristics Resource: 270kt @ 3.9g/t Au (Measured and Indicated) 365kt @ 4.6g/t Au (Inferred, 2.5g/t cut-off) - Mt Boppy historic production of 4

  18. Slide 18: Canbelego: a significant mineral field

    Canbelego: a significant mineral field Cobar-style mineralisation  Lachlan Fold Belt, New South Wales  active mineral field  sediment and volcanic hosted deposits  small footprint, great depth persistence  >5Moz of gold produced from the region  Mt Boppy being assessed for development Cobar-st

  19. Slide 19: Canbelego: 204km2 of prospectivity

    Canbelego: 204km2 of prospectivity Polymetals’ position is strong  operated there since 1992  produced 68koz gold from open cut operations  acquired wider exploration area (204km 2)  collated extensive historical geological data  start-up time and cost advantage via existing 150k tpa plant and

  20. Slide 20: Canbelego: Potential near-term production

    Canbelego: Potential near-term production Focused exploration program  extension drilling aiming to increase existing Resource (currently 93koz Au) and facilitate early gold production Four immediate near-mine targets Mt Boppy Gold Mine: parallel structures Hardwicks: 4km N Mt Boppy; intersections

  21. Slide 21: Drew Hill: current producer, exploration upside

    Drew Hill: current producer, exploration upside Landholding 728km2  Production funds exploration  In Joint Venture (Polymetals 25%) Rich mineral field  17 geochemical gold prospects  1 geochemical copper prospect  3 historic gold-copper mines Program focus  White Dam mine production Drew Hill

  22. Slide 22: Boorara: significant defined gold resource

    Boorara: significant defined gold resource KCGM Super Pit, Boorara Resource produces ~750koz Au pa 1.9Mt at 1.38 g/t oxide Boorara Tenements – 13km E of KCGM Super Pit, Kalgoorlie WA Located in the world-class Kalgoorlie gold province 22

  23. Slide 23: Boorara: long production history

    Boorara: long production history Landholding 33 km2  6km of Menzies Boorara Shear Zone  Resource: 1.9Mt @ 1.38g/t Au (85koz)  limited exploration below 100m  base metals potential to E on the Kanowna Shear Zone Exploration focus  increase oxide gold Resources Boorara Super Pit  regional gold &

  24. Slide 24: 4 Financial overview

    4 Financial overview February 2011 24

  25. Slide 25: Strong performance history

    Strong performance history Financials ($M)1 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 H1 2011 Revenue 25.4 22.5 30.2 33.8 11.4 5.6 10.7 EBITDA 7.2 9.6 9.4 4.7 1.2 0.1 5.5 NPAT 2.2 5.8 6.3 2.9 1.0 (0.2) 2.9 Capital distributions2 1.1 1.1 4.9 2.6 0.9 5.0 Production3 FY2005 FY2006 FY2007 FY2008 FY2009

  26. Slide 26: Exploration expenditure

    Exploration expenditure  Drilling commenced in February 2011  Initial drilling results are anticipated in Q2 CY2011 Exploration and drilling expenditure by activity Project 2011 2012 Total ($M) ($M) ($M) Mt Boppy 1.35 2.47 3.82 Canbelego 1.42 0.65 2.07 Drew Hill 0.47 n/a 0.47 Boorara 0.37 n/a 0.37

  27. Slide 27: Polymetals: the next 12 months

    Polymetals: the next 12 months Production • March 2012 on current mine life • 7,000oz Au (Polymetals 25% share of expected production) White Dam Gold Mine • Exploration upside – potential to extend mine life • Drilling program commenced Canbelego • Focus on increasing Reserves to re-establish produc

  28. Slide 28: Resources | Proven track record | Solid cashflow

    RESOURCES | PROVEN TRACK RECORD | SOLID CASHFLOW

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