Regis Resources Limited · ASX:RRL
Regis Resources — Investor Presentation (September 2019)
34 slides from Regis Resources's investor presentation, September 2019
Slide 1: Corporate Update - September 2019
Corporate Update - September 2019 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 affects the information included in the Relevant ASX Announcements and in each case the associated entities (“Regis or RRL") and their respective activities and operations. The Production Targe
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW 12 MONTH SHARE PRICE PERFORMANCE 6 CAPITAL STRUCTURE 180 Regis GDX GDXJ Gold Spot (A$/oz.) ASX Code RRL 160 Issued capital1 508.2M shares 140 Market capitalisation2 A$2.7B Liquidity (90 day)3 3.9M/day 120 Cash and gold on hand4 A$205M 100 Borrowings4 Nil 80 Resources5 8.2Moz Res
Slide 4: 10 Years of Growth
4 10 YEARS OF GROWTH Production and reserve growth through exploration success and targeted acquisitions 2009 2019 $50m equity raising Garden Well & Debt facility fully Multiple satellite pits McPhillamys Maiden UG development plus $50m debt Rosemont development repaid by 2013 feeding three Ore Rese
Slide 5: Corporate Highlights
5 CORPORATE HIGHLIGHTS Proven Australian gold producer and explorer A$2.5B company with 8.2Moz in Resources and 4.0Moz in Reserves Production Guidance of 340,000 - 370,000oz gold production at A$1,125-$1,195/oz AISC and Growth Capital of ~A$62m for FY2020 Strong dividend stream with cumulative payme
Slide 6: Our People – The Foundation of Our Success
6 OUR PEOPLE – THE FOUNDATION OF OUR SUCCESS 950 PEOPLE IN TOTAL – 338 EMPLOYEES AND 612 CONTRACTORS TRENDING THE RIGHT WAY WITH ROOM TO KEEP IMPROVING 35 30 25 20 15 12mma TRIFR* • Renewed focus on safety performance and training • Risk management process upgrade ensuring appropriate hazard identif
Slide 7: Continuing Production Growth
7 CONTINUING PRODUCTION GROWTH OPERATING PITS STRONG MARGINS, GOOD COST CONTROL Rosemont AND STEADY OUTPUT GROWTH Garden Well 2,200 380 Moolart Well 370 2,000 370 363 Tooheys Well 361 1,800 360 Anchor 1,600 350 Dogbolter 340 1,400 340 Gloster 1,200 330 Erlistoun Ounces (000’s) 324 A$ per ounce 1,000
Slide 8: Strong Historic Performance on Profit Measures
8 STRONG HISTORIC PERFORMANCE ON PROFIT MEASURES Revenue Net Profit After Tax 200 700 654 606 174 180 163 600 544 160 502 138 500 465 140 120 112 $ millions $ millions 400 100 87 300 80 200 60 40 100 20 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Earnings & Dividend per Share 350 31
Slide 9: Dividend
9 DIVIDEND - Regis is one of the Australian gold industry leaders on dividend payment metrics Final dividend declared 8 cents per share fully franked ($41 million) Interim dividend 8 cents per share fully franked ($40 million paid March 2019) Full year 16 cps ($81m) fully franked payout: • 12.
Slide 10: Industry Leader in Low Cost Production
10 INDUSTRY LEADER IN LOW COST PRODUCTION $1,600 ALL-IN SUSTAINING COSTS 2019 (US$/OZ) International peers (2019E) $1,400 Australian peers (2019A) $1,200 $1,000 AISC (US$/oz) $800 $600 $400 $200 $0 Source: Canaccord Genuity – July 2019. FX Assumption – 0.70AUD/1USD
Slide 11: Continued Life Extension - Reserve Growth
11 CONTINUED LIFE EXTENSION - RESERVE GROWTH The major contributors to the near replacement in CONSISTENTLY REPLACING RESERVES FY2019 of Ore Reserves were: 4.5 o Maiden Underground Ore Reserve at 4.06 4.03 4.0 Rosemont of 123,000 ounces; and 3.5 o 89,000 ounces at Moolart Well – Extra McPhillamys De
Slide 12: Growth Strategy Continues
12 GROWTH STRATEGY CONTINUES Underground Rosemont Garden Well Baneygo Tooheys Well Gloster Moolart Well Garden Well Baneygo Tooheys Well Gloster Open Pits Extension Expansion Development Expansion Expansion Discovery New Projects McPhillamys Ridge Active projects New sustaining projects Duketon Duke
Slide 13: Rosemont Underground
13 ROSEMONT UNDERGROUND Firstdevelopment First Developmentore Oredelivered DeliveredinIn July July PRE-FEASIBILITY STUDY METRICS1 Commencement Capital A$36 million Maximum Cash Outflow A$41 million Average Mining Rate 480 - 600ktpa Operating Cost A$1,120/oz Mine Life ~5 years First Ore Sept Q 2019 F
Slide 14: Garden Well Underground
14 GARDEN WELL UNDERGROUND The The Next UG development next UG Development option Optiontaking Takingshape Shape HIGH-GRADE SOUTHERN PLUNGE HIGHLIGHTS UG POTENTIAL Zone of continuous mineralisation up to 10m true widths & 300m N-S strike and extends mineralisation >300m below surface Recent Highligh
Slide 15: Baneygo Underground Potential
15 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 Recent Highlights: 2m @ 43 g/t Au 8m @ 10.8 g/t Au 2m @ 21.6 g/t Au 2m @ 19.9 g/t A
Slide 16: McPhillamys Gold Project
16 MCPHILLAMYS GOLD PROJECT A Significant Organic Growth Opportunity • Located in NSW, 30km east of Newcrest’s Cadia Mine • Development Application with the Environmental Impact Statement (EIS) lodged in July 19 • EIS will feed into the Definitive Feasibility Study (DFS) • DFS will update PFS and pr
Slide 17: McPhillamys Gold Project
17 MCPHILLAMYS GOLD PROJECT 100% owned and one of Australia’s larger undeveloped open pittable gold resources ANNUAL PRODUCTION AND MILLED GRADE 250 1.6 PRE-FEASIBILITY STUDY PHYSICALS1 200 1.4 MINERAL RESOURCE Ore milled (Million tonnes) 60.1 1.2 2.29 Moz of gold Ounces (000’s) Grade (g/t) 1.05 (g/
Slide 18: Discovery Ridge Project
18 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 McPhi
Slide 19: 7.7Moz Gold Discovered Since 2006
19 7.7Moz GOLD DISCOVERED SINCE 2006 Duketon Greenstone Belt landholding triples to 3,000 km2 • Recent acquisition1 delivers control of 90% of the highly productive and prospective Duketon Greenstone Belt around Regis’ milling facilities MOOLART WELL • Immediate work initiated to expand advanced exp
Slide 20: FY20 Guidance and Medium Term Outlook
20 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 AISC 10% Future Potential Production Step Change • McPhillamys Gold Project 400,000 • Discovery Ridge Production (ou
Slide 21: Investment Highlights
21 INVESTMENT HIGHLIGHTS Reliable production performance with consistent internal growth from the Duketon Operations in Western Australia Record annual gold production of 363,418 ounces with AISC of $1,029 per ounce for FY2019 Cumulative dividend payments1 at A$407m since 2013 Production Guidance of
Slide 22: Further information: Jim Beyer
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200 22
Slide 23: Appendices
APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2018 APPENDICES i) Financial Results FY19 – 30 June 2019 ii) Hedging Strategy Details iii) Project Pipeline iv) Reserves and Resources @ March 2019 23
Slide 24: Appendix i) FY2019 Financial Results Highlights
24 Appendix i) - FY2019 FINANCIAL RESULTS HIGHLIGHTS Record gold production of 363,418 oz Revenue up 8% to $654.8 million EBITDA of $306.8 million with strong EBITDA margin of 46.8% Cash flows from operating activities of $275.5 million up 6% from previous year Net profit after tax of $163
Slide 25: Group Financial Summary Results
25 GROUP FINANCIAL SUMMARY RESULTS Year Ended Year Ended Physicals Unit 30 June 2019 30 June 2018 Ounces Produced oz 363,418 361,373 Ounces Sold oz 369,721 359,750 Average Realised Price $/oz 1,765 1,680 Sales Revenue $m 652.5 604.4 Interest Income $m 2.3 2.1 Cost of Sales $m (402.0) (343.6) Gross P
Slide 26: Financial Results Highlights
26 FINANCIAL RESULTS HIGHLIGHTS Revenue up 8% to $654.8 million • Gold sold up 2.8% to 369,721ozs with an average sale price of $1,765/oz. Net Profit after Tax down 6.4% driven by non-cash impairment of capitalised exploration expenditure ($6.7 million) and increased cost of goods sold of $58.4
Slide 27: Review of FY2019 Operations
27 REVIEW OF FY2019 OPERATIONS FY19 FY18 Operations Ore mined Mbcm 4.3 4.6 • FY19 production 363,418ozs at top end of guidance Waste mined Mbcm 28.1 20.1 • FY19 grade of 1.27g/t: 7% higher than FY18 Strip ratio w:o 6.6 4.4 • Positive impact of grade from full year production from Ore mined Mt 10.1 1
Slide 28: Cashflow Waterfall
28 CASHFLOW WATERFALL Cash & Gold on Hand - 30 June 2019 $600m $328.7m $500m ($81.2m) $400m ($96.1m) $300m ($34.8m) ($57.4m) $208.8m $205.3m $200m ($54.0m) ($8.7m) $100m Strong cashflow from operations of $328.7 million for FY2019 underpinned payment of $81.2 million in dividends during the year
Slide 29: Summary
29 SUMMARY Financials Net profit after tax of $163.1 million (FY18: $174.2 million) Final dividend of 8cps declared taking full year dividend for FY19 to 16cps Operations Strong operational performance with record annual production of 363,418 ozs at the top end of guidance Commenced developm
Slide 30: Appendix ii) Spot Deferred Gold Hedge Book
30 Appendix ii) “SPOT DEFERRED” – FLEXIBLE PROTECTION GOLD HEDGE BOOK (31 August 2019) 30 Regis’ hedge position stands at ~445koz at an average of A$1,613/oz. There is no requirement for these to be ‘sold into’ in any specific time frame. Regis is currently actively managing the process of selling i
Slide 31: Appendix iii) Project Pipeline
31 Appendix iii) PROJECT PIPELINE Moolart Well Ext. Baneygo – Idaho Gloster UG McPhillamys Baneygo Gloster Garden Well UG Discovery Ridge Moolart Well Beamish Garden Well Duketon Greenstone Belt Garden Well OP Expansion Russells Tooheys Well Tooheys UG Garden Well U
Slide 32: Appendix iv) Group Ore Reserves
APPENDIX 1 JORC COMPLIANT 32 Appendix iv) GROUP ORE RESERVE ORE RESERVES ESTIMATES 31 MARCH (312018 March 2019)
Slide 33: Group Mineral Resources (31 March 2019)
33 33 GROUP MINERAL RESOURCES (31 March 2019)
Slide 34: Further information: Jim Beyer
Further information: Jim Beyer | Managing Director & CEO + 61 8 9442 2200 34
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