Rtg Mining, Inc. · TSX:RTG
Rtg Mining — Investor Presentation (November 2021)
40 slides from Rtg Mining's investor presentation, November 2021
Slide 1: Developing the New High Grade Mabilo Mine
DEVELOPING THE NEW HIGH GRADE MABILO MINE NOVEMBER 2021 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation constitute forward looking statements within the meaning of applicable securities laws including, among others, statements made or implied relating to RTG’s objectives, strategies to achieve those objectives, beliefs, plans
Slide 3: Disclaimer
Disclaimer The information contained in this presentation has been prepared by RTG Mining Inc. ("RTG" or "the Company"). This presentation is not an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any securities in the Company. This present
Slide 4: Qualified Persons
Qualified Persons The information in this report that relates to Exploration Results at the Mabilo Project is based upon information prepared by or under the supervision of Robert Ayres BSc (Hons), who is a Qualified Person and a Competent Person. Mr Ayres is a member of the Australian Institute of
Slide 5: Corporate Overview
TSX: RTG // ASX: RTG // RTGMINING.COM Strong Institutional Holding CAPITAL MARKETS Corporate Overview Share Price A$0.11 Common Shares Post Placement 680.3M Fully Diluted 698.3M Market Capitalization A$75M SIGNIFICANT SHAREHOLDERS A$1.8M Cash & Cash Equivalents September 2021 Equinox 17% Hains Famil
Slide 6: RTG Management's Competitive Advantage
1994-1995 AUSTRALIA Marymia, Bullabulling, Chalice Relationships with Host Countries & Communities RTG Management’s 1997 GHANA Competitive Advantage Obotan Gold Project 1998 TANZANIA Golden Pride Project Proven track record managing political risk and succeeding in countries around the world 2004 MO
Slide 7: Project Overview
Significant Value Upside Project Overview New high grade project underway at Mabilo with strong pipeline of exploration projects • Mining Permit Delivered • Financing & Offtake Organized DEVELOPMENT MABILO • US$490 Million NPV at Current Commodity Prices* • Groundbreaking Commenced • Extensions & Po
Slide 8: Mabilo Project
Mabilo Project H I G H G R A D E C O P P E R - G O L D 8
Slide 9: Philippines Overview
MABILO Overview DEVELOPMENT Development Start-Up Philippines • • Bankable Feasibility finalized March 2016 Issue of ECC & EP renewed July 2016 • EP renewed 2018 • 2 Awards for Excellence in 2018 & 3 in 2019 • EPEP and FMR/DP approved March 2019 • Mining Permit granted May 2020 • Won Final Award in A
Slide 10: Philippines Update
Encouraging Mining in 2021 Philippines Update Mabilo is listed as one of the priority projects for the Philippines – the MGB has been very supportive of Mt. Labo’s efforts & the Project Mining in the Philippines • President Duterte has publicly stated he is seeking to encourage investment in regiona
Slide 11: 2015 Resource & Reserve Estimate
TSX: RTG // ASX: RTG // RTGMINING.COM Major Upside Potential at Mabilo 2015 Resource & Reserve Estimate* Resource: 1.97Moz @ 4.8 g/t Reserve: 1.3Moz @ 5.2 g/t AuEq Only 18,000 Metres Drilled to Date Resource: 472kt (1.03B lb) @ 3.7% Plan to drill extensions post start up Reserve: 316kt (695.2M lb) @
Slide 12: Mineralized Zones
Open Along Strike, Down Plunge, Regionally Mineralized Zones OXIDE RESOURCE 12
Slide 13: Stage One Financing Offer
Debt Financing for 100% of DSO CAPEX Stage One Financing Offer Mabilo Has a Mining Permit & Commitment to Development • Estimated capex of US$21M and working capital of up to US$10m • Debt facility offered by highly respected international global leader for total capex on attractive terms • Offer of
Slide 14: Development Timeline
Key Steps in Stage One Development Timeline Month 1 2 3 4 5 6 7 8 9 10 Clearing & Grubbing Creek Diversion Sterilization Drilling Pre-Strip Road Diversion Mobile Crushing Plant Port Infrastructure 14
Slide 15: Mabilo Economics Overview
Mabilo Economics Overview $490M* NPV After-Tax5 Stage 1 – Direct Shipping 18 Months Stage 2 – Primary Concentrate Production Capex $21M Capex $161M Pre-strip $24.4M Net Operating Cashflow Net Annual Operating Cashflow $123M* $94M* (after tax) (after tax) 27,800t Cu 18,300t Cu Production 7,600oz Au P
Slide 16: Sensitivity Analysis - US$M
Commodity Price Movements Sensitivity Analysis - US$M Sensitivity -20% -10% Base +10% +20% Case Current Prices Assumed Pricing Cu price, US$/lb 3.62 4.08 4.53 4.98 5.44 Au price, US$/oz 1,428 1,607 1,785 1,964 2,142 Stage 1 – Direct Shipping Operation Net operating 90.5 107.1 123.3 139.5 156.0 cashf
Slide 17: Cash Flow Analysis
Direct Shipping Operation Cash Flow Analysis All in USD NET OPERATING CASHFLOW $123M After Tax Repayment of Finance Principal $23.3M Interest $1.7M Manila / Admin Overheads $1.2M Dilution for Stage Two Repayment of Working Capital $10M CAPEX Mitigated Allocation for Porphyry Drilling $5M NET CASH AV
Slide 18: EPS and CFPS Analysis - US$M
RTG Valuation Metrics - Undervalued EPS and CFPS Analysis - US$M Forecast 2023 2024 (Stage 2 2025 2026 2027 Construction) NPAT 75.1 (14.4) 94.1 78.5 70.5 EPS 0.08 (0.02) 0.10 0.08 0.08 Current 1.4 n/a 1.1 1.3 1.4 Price/ EPS Op CF 121.5 20.7 166.0 149.3 135.1 Op CF/S 0.10 n/a 0.20 0.20 0.10 NAV 484 N
Slide 19: Products Stage One
Direct Shipping Operation Products Stage One Net Cash Flow After Tax from DSO is US$123M Products by Month 1-5 Gold Cap ~300,000 t @ avg 3.2 g/t Au Assumed payability 30% Au 3-7 Cu / Au Skarn ~150,000 t @ avg 2.7% Cu Assumed payability 30% Cu Supergene Chalcocite ~100,000 t @ avg 23 % Cu & 2.3g/t Au
Slide 20: DSO Mine Plan
General Arrangement DSO Mine Plan 20
Slide 21: Proposed Infrastructure
Larap Port 40 Km from Mabilo Proposed Infrastructure 21
Slide 22: Ground Breaking Ceremony
Development Work Commenced 2021 Ground Breaking Ceremony Full land access of lots in Stage 1 with acquisition subject to appeal of POA proceedings In Attendance (from Left to Right) Honorable Antonio Camonas – Barangay Napaod Captain Art Ranin – Resident Manager Mt Labo Jasmin Rieza – EMB Provincial
Slide 23: Stage Two Progress & Plans
Primary Concentrate Production Stage Two Progress & Plans Stage Two Progressed in Parallel with Direct Shipping Operation • Commitment to front end engineering (FEED) once Mt. Labo commences development of Stage One – approximately 3 months • Development of a Geometallurgical model and further optim
Slide 24: 3 High Quality & Clean Concentrate Products
Average Average % of Net Concentrates Produced/Year Cashflow* Stage Two – Primary Concentrate Production Copper-Gold 27% Cu & 21 g/t Au 65,000t 82.5% 3 High Quality & Clean Pyrite Concentrate Products 3 g/t Au (46% Sulphur) 220,000t 3.3% Magnetite 65% Fe 535,000t 14.2% 1.3 Million Tonne per Year Flo
Slide 25: Exploration at Mabilo
Exciting Growth Potential Exploration at Mabilo Potential for high grade copper/gold corridor & porphyry target at depth Only 18,000M of drilling to date Drilling since November 2015 Resource increase indicates strong growth potential Significant exploration potential remains along strike, regionall
Slide 26: Infill Drill Programs
3,000m Infill & Extension Drilling Once Mt. Labo commits to Development Infill Drill Programs • Drilling priority: Targeting resources within current pit design at relatively shallow levels to come into the mining phase early • 1.6 Mt inferred resource inside the pit, including garnet skarn zones hi
Slide 27: Porphyry Drilling Program
Possible Game Changer • Magnetic feature correlated with Chargeable body directly Porphyry Drilling adjacent to magnetite skarn resources Program • Strong magnetic body South of Venida pit correlated with strong Chargeable body • The NE dipping orientation of buried Chargeable body is consistent wit
Slide 28: Panguna Project
Panguna Project O P P O R T U N I T Y F O R R E D E V E L O P M E N T 28
Slide 29: Bougainville Opportunity Overview
Opportunity Overview Bougainville RTG Nominated as Landowner’s Developer of Choice Only developer to have secured critical Landowner support Panguna Mine was the largest operating copper & gold mine in the world, Significant Exploration operated for 17 years and produced 3Mt or 6.6B lb of Cu & 9.3M
Slide 30: BCL Announced Mineral Resource
BCL Announced Mineral Resource 2015 Resource Estimate Indicated and Inferred Resource* Cu Au 1.8Bt 0.3% 0.34g/t Contained Metal 5.3Mt (11.66Blb) 19.3Moz Billion Contained Contained Dec 2015** Tonnes Au g/t Cu% Au (Moz) Cu (Mt) Indicated 1.54 0.33 0.3 16.1 4.6 (10.12Blb) Inferred 0.3 0.4 0.3 3.2 0.7
Slide 31: Chanach Project
Chanach Project E M E R G I N G N E W M I N I N G J U R I S D I C T I O N 31
Slide 32: Chanach Mineral Resource
MAJOR UPSIDE Only 19,516 Metres Drilled to Date GOLD MINERAL RESOURCE Tonnes (000s) Au g/t Au Ounces (000s) Lower Gold Zone 1,155 4.00 148 Upper Gold Zone 772 4.67 116 Sandstone Zone 279 11.41 102 INFERRED Quartz Main 325 6.22 65 Quartz Min 185 1.87 11 Eastern Gold Zone 123 2.79 11 Camp Gold Zone 10
Slide 33: Prolific Gold Endowment
Tien Shan Gold Belt Prolific Gold Major deposits located within 100km of Chanach Endowment Gold Project contain up to 93Moz Au and 25Mt Cu South-western Tien Shan metallogenic belt spans more than 1,500km from Uzbekistan in the west across the Kyrgyz Republic and into inner Mongolia and China Geolog
Slide 34: Use of Proceeds
Proposed Interim Capital Raising Use of Proceeds 6 Months Working Capital US$M Porphyry Drilling Program Corporate - Australia 1.2 - Philippines 1.9 - Panguna 0.3 Funding for Restructuring - Chanach 0.3 Legals 0.7 Exploration 1.0 Possible Restructuring 3.0 Reduction in Borrowings Repayment of Borrow
Slide 35: Contact US
RTG Mining Contact US TSX: RTG // ASX: RTG // RTGMINING.COM Justine Magee President & CEO Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: [email protected] Mark Turner Chief Operating Officer Tel: +61 8 6489 2900 Fax: +61 8 6489 2920 Email: [email protected] Jaime Wells Investor Relations US
Slide 36: Appendix
APPENDIX 36
Slide 37: Management
RTG Mining MICHAEL CARRICK Management Chartered Accountant with over 30 years in the CHAIR resources sector. Michael was previously Chair & CEO of CGA Mining, Chair of AGR & CEO of Resolute. Prior to Resolute, he was a senior international partner of Arthur Andersen. 7 mines in 5 different countries
Slide 38: Business Model
RTG Mining Business Model Unlock Value In Development Projects And Create A Liquidity Event For All Shareholders Focused on high grade, low operating cost gold projects High Grade, Low Cost Targeting projects with low technical and project risk Goal of delineating substantial in-ground resources & r
Slide 39: 2015 Mabilo Mineral Resource Estimate
Mabilo Deposit – South and North Zones 2015 Mabilo Mineral Resource Estimate Weathering Million Contained Au Contained Cu Contained Cu Contained Fe Classification Cu% Au g/t Ag g/t Fe% State Tonnes (‘000s oz) (‘000s t) (‘M lb) (‘000s t) TSX: RTG // ASX: RTG // RTGMINING.COM Indicated 0.78 4.1 2.7 9.
Slide 40: 2015 Oxide Resource Estimate
2015 Oxide Resource Estimate Contained Au Contained Cu Contained Cu Contained Fe South Mineralized Zone MillionTonnes Au g/t Cu% Fe% (‘000s oz) (‘000s t) (‘M lb) (‘000s t) Oxide Gold Cap 0.33 3.1 0.2 42.6 33.3 0.7 1.6 142.2 Oxide Copper/Gold 0.28 2.4 2.6 44.0 21.6 7.1 15.6 121.4 Indicated Supergene