Havilah Resources Limited · ASX:HAV
Havilah Resources — Investor Presentation (May 2015)
38 slides from Havilah Resources's investor presentation, May 2015
Slide 1: A New Mining Force in South Australia
1 ASX : HAV HAVILAH RESOURCES LIMITED A New Mining Force in South Australia Investor presentation by Dr Chris Giles, Managing Director May 2015
Slide 2: Cautionary Statement
2 ASX : HAV Cautionary Statement The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a general and summary nature only. Neither Havilah Resources Limited (Havilah) nor any member of the Havilah Group of companies, giv
Slide 3: Investment Key Points
3 ASX : HAV Investment Key Points Prospect of >$40 million gross cash flow generated by HAV in 20161 …… Portia gold mine funded and underway Future cash flow growth from new mines in the pipeline …… Kalkaroo copper‐gold project with > 14 year mine life is next 2 Exposure to exploration success
Slide 4: Corporate Summary
4 ASX : HAV Corporate Summary Capital Structure Millions HAV v Small Resources (XSR) ‐ 1 year Cash (31 Jan 2015) $2.9 Debt (31 Jan 2015) $0.8 Shares 156 Options (Listed + Unlisted) 41 Market Cap (21 May 2015) $52
Slide 5: Major Shareholder Background
5 ASX : HAV Major Shareholder Background Share Owner History & Background Holding Founder and former Chairman, long‐term continual supporter of Bob Johnson 4.1% all capital raisings. Owner of successful mining software Family Trust 10.8% business. Founder and Managing Director, history of supporting
Slide 6: Director Expertise
6 Director Expertise ASX : HAV Chris Giles – Managing Director, Founder, Major Shareholder A successful exploration geologist, having been directly involved in exploration programs resulting in discovery of several gold mines in Indonesia, East Africa and Australia. Responsible for Havilah explora
Slide 7: Management Experience
7 Management Experience ASX : HAV Walter Richards ‐ Chief Financial Officer & Company Secretary More than twenty years experience in various financial roles with Newmont Mining Corporation. Regional Vice President – Finance in Africa, during which the Ahafo and Akyem gold mines were developed. Ver
Slide 8: Havilah Strategic Objectives
8 ASX : HAV Havilah Strategic Objectives Vision Statement To become a new mining force, delivering value to our shareholders, partners and the community Produce 30,000 tonnes copper and 100,000 ozs gold per annum within 6 years, via sequential development of existing mineral projects. Minimise r
Slide 9: Havilah is Delivering…
9 ASX : HAV Havilah is Delivering… Low risk transition to miner: Portia permitted, funded and commenced mining. Short term cash flow: prospect of Portia gold sales in 2016. Quality mineral development projects: Pipeline of long life, low cost open cut mines with low CAPEX options, no adverse t
Slide 10: Tenement Location: South Australia
10 Tenement Location: South Australia ASX : HAV
Slide 11: Portia – Havilah’s First Mine
11 ASX : HAV Portia – Havilah’s First Mine Start of Portia open pit ‐ 30 March 2015
Slide 12: Portia – Havilah’s First Mine
12 Portia – Havilah’s First Mine ASX : HAV Simple gravity recovery of free gold. Experienced Broken Hill contractor responsible for all mining. Innovative funding arrangement – revenue sharing with contractor. Prospect of >$40 million gross cash flow generated in 20161. 1 Refer to ASX releas
Slide 13: Portia Open Pit And Resource Model
13 Portia Open Pit And Resource Model ASX : HAV Open pit is optimised to capture the maximum ounces of gold (80%) in the base of Tertiary resource. Potential exist to access additional gold below pit floor. 13
Slide 14: High Grade Gold 75m Below Surface
14 ASX : HAV High Grade Gold 75m Below Surface Patchy high grade gold Initial mining objective mineralisation in bedrock 67,000 oz JORC resource 26 metres of 15.4 g/t Au at base of Tertiary clay1 Weathered bedrock 13 metres of 33.5 g/t2 Bedrock Refer to ASX releases on 126/06/09 and 230/11/06
Slide 15: Simple Gravity Recovery Plant
15 ASX : HAV Simple Gravity Recovery Plant Twin 50 tonne per hour In‐ line Pressure Jigs with Spinners for heavy mineral and gold separation. 120 tonne per hour Trommel for washing ore.
Slide 16: Portia Key Economic Metrics
ASX : HAV 16 Portia Key Economic Metrics 1 Cash Flow Analysis Millions Total gross cash flow generated $80.5 Royalties payable $(2.4) Cash flow generated after royalty expenses $78.1 Havilah 50% share of cash flow generated $39.1 Based on: JORC resource of 720,000 tonnes @ 2.9g/t of gravity recovera
Slide 17: Kalkaroo – Havilah’s Second Mine
17 ASX : HAV Kalkaroo – Havilah’s Second Mine Large long life resource of 622K tonne copper and 2M oz gold 1 Gold cap 18.7Mt @ 0.74g/t Au Native copper Chalcopyrite sulphides Cu-Au Deposit 124.5Mt @ 0.50%Cu 0.39g/t Au 1Refer to ASX release 2/03/15 and resource table at end of presentation
Slide 18: Australian Copper Project Comparisons
18 ASX : HAV Australian Copper Project Comparisons Resource data based on ASX releases to 25/03/15. Copper equivalent resource = copper tonnes + gold ounces x 0.210408, assuming average gold and copper prices for first 3 months 2015 and same metal recoveries
Slide 19: Kalkaroo Project Benchmarking
19 ASX : HAV Kalkaroo Project Benchmarking PhillipCapital Research: “Kalkaroo in first quartile of undeveloped copper projects of significant size“ Source: SNL, Terra Studio. Copper projects with mineral resources in excess of 500,000t copper metal via PhillipCapital research published on 18/3/15.
Slide 20: Kalkaroo Development Options
ASX : HAV 20 Kalkaroo Development Options1 Two development options: Optimised Production vs Minimised Capex. Modelling indicates this is a lowest quartile cost operation. Parameter Optimised Production Model Minimised Capex Model Mine life 14 years 17.5 years Upfront capex (± 30%) A$340M A$83M 34,00
Slide 21: Kalkaroo on Copper Mine Cost Curve
21 ASX : HAV Kalkaroo on Copper Mine Cost Curve PhillipCapital Research: “The gold endowment has also a significant impact on cash costs. Kalkaroo cash costs are expected in the first quartile.” Source: Wood Mackenzie 2014 highly probable and probable mines only, via PhillipCapital research publishe
Slide 22: Low Capital Starter Open Pit Option
22 ASX : HAV Low Capital Starter Open Pit Option Commence mining on highest grade and shallowest ore at Western end of deposit. $83 million (±30%) start‐up capex and thereafter self‐ funding. Slower route, but advantage is that future expansion of mine is largely funded by cash flow with lower devel
Slide 23: Aiming for Mid‐2016 Decision to Mine
23 ASX : HAV Aiming for Mid‐2016 Decision to Mine Permitting, processing flow sheet and funding are critical path tasks. HAV owns Kalkaroo Station – land access secured. Ample flat land for mining infrastructure. West Kalkaroo starter open pit location
Slide 24: Resource Expansion Potential
24 ASX : HAV Resource Expansion Potential High potential for expansion of current resource and new discoveries nearby to extend mine life. Deposit is open at depth and along strike ‐ further drilling can expand resource. Large near mine discovery potential – wild‐cat drilling by MMG has return
Slide 25: Processing Facility will Unlock Value
25 ASX : HAV Processing Facility will Unlock Value A Kalkaroo multi‐purpose processing plant able to process ore from multiple projects. This improves development prospects and unlocks value in several nearby Copper‐Gold‐Cobalt projects. Portia + North Kalkaroo Portia 622,000 t Cu 101,000 t Cu 235,0
Slide 26: Project Pipeline
26 FRY Project Pipeline ASX : HAV Havilah Resources me ¢ MINING: mining commenced March 2015 e PRE- DEVELOPMENT: planning, costing, permitting, and securing funding partnership e PRE-FEASIBILITY: JORC resources, feasibility studies, mining lease proposals ¢ ADVANCED PROSPECTS: multiple promising dri
Slide 27: Exceptional Exploration Potential
27 ASX : HAV Exceptional Exploration . Potential > 8,000 km2 contiguous prospective tenement holding in Curnamona Craton. Highly prospective terrain for copper‐gold mineralisation with strong analogies to Central African Copper Belt. 8 new JORC resources drilled in 8 years plus several new are
Slide 28: PhillipCapital Valuation on Kalkaroo
28 PhillipCapital Valuation on Kalkaroo ASX : HAV PhillipCapital has valued the Kalkaroo copper‐gold project alone at $59 million – a large discount to the project NPV (as referenced in the extract below). HAV’s current market Capitalisation is well below the $59 million. This leaves significant ups
Slide 29: Significant Upside Re‐valuation Possible
29 Significant Upside Re‐valuation Possible ASX : HAV Havilah has a low market cap in relation to its measured and indicated copper equivalent resource base. Resource data based on ASX releases to 25/03/15. Copper equivalent resource = copper tonnes + gold ounces x 0.210408, assuming average gold an
Slide 30: Share Price Performance
30 ASX : HAV Share Price Performance Share Price Volume Since Inception 52 Week Since Inception 52 Week High $2.72 $0.34 1,058,000 251,000 Low $0.06 $0.09 1,000 31,000 Average 76,000 71,000
Slide 31: A Study of Success – NFM 1971‐1989
31 A Study of Success – NFM 1971‐1989 ASX : HAV Strong analogies with Adelaide‐based North Flinders Mines arguably the most successful junior gold resource company in the 1980‐90’s. 200 X Capital Appreciation +Dividends Highly prospective land holding in the Tanami region (cf Havilah’s 8,000 km2 con
Slide 32: History Repeats – Havilah 2004‐2014?
32 History Repeats – Havilah 2004‐2014? ASX : HAV Highly successful explorer ‐ drilled out 8 JORC resources in 8 years, discovering >900,000t copper and >2.4 million ozs gold Kalkaroo will be a 15‐20 year copper‐gold mine producing >33Ktpa copper and >100,000 ozs gold Highly prospective >8,000 km2 t
Slide 33: Future Funding of Operations
33 ASX : HAV Future Funding of Operations Signed mandate letter with major international resource bank: $6 million loan facility. Hedging program of 10,000 ounces of future Portia gold production. Financing facility helps to ensure: Cash flow from Portia gold production. Contingency plan
Slide 34: Exceptionally Low Discovery Cost
34 ASX : HAV Exceptionally Low Discovery Cost 2014 2013 2012 2011 Cash Exploration & Evaluation Expenses $3,196 $3,638 $4,836 $4,124 per annum ‐ ’000 Cost per JORC gold1 oz – US$ $3 $3 $4 $8 Worldwide gold discovery cost per oz $31 ‐ June 2012 US$/oz2 Australia gold discovery cost per oz ‐ June 2012
Slide 35: In Summary
35 ASX : HAV In Summary Portia gold mine is underway… Funded with minimal equity dilution and low technical risk. Prospect of substantial cash generated in 2016. Kalkaroo copper‐gold project is next… Robust economics ‐ 34,000 tonnes copper and 104,000 ozs gold per annum over 14+ year mine
Slide 36: Additional Supporting Slides
36 ASX : HAV Additional Supporting Slides
Slide 37: Copper‐Gold Resource Metal Inventory
37 ASX : HAV Copper‐Gold Resource Metal Inventory Copper: 915,500 tonnes (Kalkaroo + Mutooroo + North Portia) Gold: 2,400,000 ozs (Kalkaroo + Mutooroo + Portia + North Portia) Cobalt: 17.5 M Kg (Mutooroo) Molybdenum: 8.45 M Kg (Kalkaroo + North Portia) Copper Gold Molyb‐ Cobalt Contained Contained C
Slide 38: Iron Ore Resource Inventory
38 ASX : HAV Iron Ore Resource Inventory Maldorky: 147,000,000 tonnes of 30.1% Fe Grants: 304,000,000 tonnes of 24% Fe Total: 159,000,000 tonnes of premium grade iron ore product Project* Resource Category Tonnes (Mt) Iron Iron Est Yield (%) tonnes Maldorky1 Indicated 147,000,000 30.1% 40% 59,000,00