Mine Gold. Create Value. Full Year Results for the year ending 30 - - PowerPoint PPT Presentation

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Mine Gold. Create Value. Full Year Results for the year ending 30 - - PowerPoint PPT Presentation

Mine Gold. Create Value. Full Year Results for the year ending 30 June 2017 Cautionary Statement This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute. Such statements,


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Mine Gold. Create Value.

Full Year Results for the year ending 30 June 2017

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Cautionary Statement

This presentation includes certain statements, estimates and projections with respect to the future performances of Resolute. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove not to be correct. The projections are merely estimates by Resolute, of the anticipated future performance of Resolute’s business based on interpretations of existing circumstances, and factual information and certain assumptions of economic results, which may prove to be incorrect. Such projections and estimates are not necessarily indicative of future performance, which may be significantly less favourable than as reflected herein. Accordingly, no representations are made as to the fairness, accuracy, correctness or completeness of the information contained in this presentation including estimates or projections and such statements, estimates and projections should not be relied upon as indicative of future value, or as a guarantee of value of future results. This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase securities in Resolute Mining Limited. The information in this report that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Andrew Goode who is a member of the Australasian Institute of Mining and Metallurgy and Mr Bruce Mowat, a member of The Australian Institute of Geoscientists. Mr Andrew Goode and Mr Bruce Mowat both have more than 5 years’ experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Andrew Goode and Mr Bruce Mowat are full time employees of Resolute Mining Limited Group and each hold equity securities in the Company. They have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears. This information was prepared and disclosed under the JORC code 2012 except where otherwise noted. Particular Reserves and Resources remain 2004 JORC compliant and not updated to JORC code 2012 on the basis that information has not materially changed since it was last reported. In providing this presentation, Resolute has not considered the objectives, financial position or the needs of the recipient. The recipient should obtain and rely on its

  • wn financial advice from its tax legal accounting and other professional advisers in respect of the recipients objectives financial position and needs. To the maximum

extent permitted by law neither Resolute nor its related corporations ,directors, employees or agents nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. You represent and confirm by attending and or retaining this presentation that you accept the above conditions.

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Mine Gold. Create Value.

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Mine Gold.

329,834oz

Total Gold Production

A$1,132/oz

All-In Sustaining Cost (AISC)

317,242oz

Total Gold Sold

A$1,717/oz

Average Price Received (A$/oz)

FY17

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Create Value.

A$541M

Revenue from gold and silver sales

A$166M

Net Profit

after tax

A$177M

Gross profit from operations

Cash, Bullion & Listed Investments

$A290M

FY17

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Create Value.

49%

Return on Equity

A$186M

Net

  • perating

cash inflow

18.6 c

Diluted earnings per share

Net investing cash outflow

$A128M

FY17

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Net financing cash inflow

$A136M

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Your gold awaits

Resolute has an innovative partnership with The Perth Mint to provide shareholders the unique

  • pportunity to receive dividend payments in gold.

Resolute gold dividend

2.0 cents per share dividend in cash or gold

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Net Profit After Tax Revenue from Gold and Silver Sales Gross profit from operations Return on equity

Financial performance

2016 A$555M A$155M 122% A$201M 26.1 cents

Diluted earnings per share

2017 A$541M A$177M 49% A$166M 18.6 cents

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Operating performance

Total Gold Sold Total Gold Sold Average Price Total annual gold production All-in-Sustaining Cost

2017 A$1,717/oz

(US$1,295/oz)

329,834oz A$1,132/oz

(US$853/oz)

317,242oz

2016 A$1,624/oz

(US$1,184/oz)

315,169oz A$1,200/oz

(US$874/oz)

340,540oz

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Net Assets Cash, Bullion & Investments Net Cash & Bullion/(debt) Net Operating Cash Flows

Balance sheet and cash flow

Dividend

2017 A$290M A$248M A$186M A$649M 2.0 cents

2016 A$102M A$75M A$193M $338M 1.7cents

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Investing for a long term future

Free cashflow after significant capital expenditure

90 110 130 150 170 190 210 230 250 270 290 310 330 350 370 390 410

Cash & Bullion Opening Syama Ravenswood Debt/Equity Exploration Capital Projects Investing Activities Bibiani Corporate Cash & Bullion Closing A$M

FY2017 Cash Flows

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Three years running…

Track record of strong operating performance

FY15 FY16 FY17 Production (oz)

Original Guidance 315koz 315koz 300koz

Actual 329koz 315koz 330koz Achieved

✔ ✔ ✔

AISC (A$/oz)

Original Guidance A$1,280/oz A$1,280/oz A$1,280/oz

Actual A$1,094/oz A$1,200/oz A$1,132/oz Achieved

✔ ✔ ✔

Price (A$/oz)

Average Spot A$1,457/oz A$1,602/oz A$1,661/oz

Received A$1,467/oz A$1,624/oz A$1,717/oz Achieved

✔ ✔ ✔

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Increasing profits from operations

Strong operating performance reflected in financial results

20 40 60 80 100 120 140 160 180 200 Jun-15 Jun-16 Jun-17

Gross Profit from Operations

A$M

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Cashflows to fund growth

A financial turnaround driven by free cashflow generation

  • 100
  • 50
50 100 150 200 250 300 Jun-15 Jun-16 Jun-17

Cash & bullion net of debt

A$M

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Long life, large scale assets

Three assets across Australia and West Africa

Syama Gold Mine

Mali, West Africa

Resolute has a successful history of >10 years at Syama Targeting up to 250kozpa at AISC of US$881/oz 12 year mine life Sublevel Cave (SLC) Underground Mine of the Future

Ravenswood Gold Mine

Queensland, Australia

A successful operating history

  • f ~13 years at Ravenswood

Targeting up to 140kozpa at AISC

  • f US$880/oz

13 year mine life Ravenswood Expansion Project (REP) Bulk-tonnage open pit mining

Bibiani Gold Mine

Ghana, West Africa

Resolute acquired the Bibiani Gold Mine in mid-2014 Targeting >100kozpa at AISC

  • f below US$858/oz

Successful Phase 1 drilling program in 2014-2015 Initial 5 year mine life Phase 2 drilling targeting >100kozpa for 10 years

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Ore Mined (t) Ore Milled (t) Head Grade (g/t) Recovery (%) Total Production (Gold oz) AISC A$/oz Syama Sulphide 1,215,153 2,106,371 2.59 69.8 136,000 1,001 Syama Oxide 1,319,596 1,340,097 2.84 83.2 101,830 960 Syama Total 2,534,749 3,446,468 2.68 75.3 237,830 984

Syama Gold Mine

Operation Highlights

Gold Production (oz) AISC (A$/oz) AISC (US$/oz) Syama Sulphide 130,000 1,050 788 Syama Oxide 90,000 1,260 945 Syama Total 220,000 1,140 855

FY17 Operating Performance FY18 Production Guidance

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Rapid underground development

Automated drilling exceeding expectations

  • Automated drilling and longer

rounds delivering rapid underground development

  • Underground mine development

has advanced more than 3km

  • First development ore has

commenced ramping up to 500kt in current year

  • Pre-production underground ore
  • f ~1.3Mt before first sublevel

cave production ore in December 2018

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Ravenswood Gold Mine

Operation Highlights

Mt Wright is one of Australia’s most successful underground mines, having mined a ~2.5g/t Au orebody at an average cash cost of A$850/oz over the last 5 years, down to a depth of ~900m below surface

Ore Mined (t) Ore Milled (t) Head Grade (g/t) Recovery (%) Total Production (Gold oz) AISC A$/oz FY17 Actual 2,366,159 1,995,292 1.54 93.1 92,004 1,406 Gold Production (oz) AISC (A$/oz) AISC (US$/oz) FY18 Production Guidance 80,000 1,520 1,145 LOM Average Annual Production 123,500 1,166 872

FY17 Operating Performance FY18 Production Guidance

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Project delivery timeline

A pathway to growth across three assets

Nolans East Open pit stockpiles Mt Wright Buck Reef West Exploration & Permitting Mining Full production rate Construction and Commissioning

Syama Gold Mine

Syama Underground Development Ore Mining Production Ore Mining Project 85 Construction & Commissioning Operational Project Low Carbon Roast (LCR) Construction & Commissioning Operational

Ravenswood Gold Mine

FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 Bibiani Gold Mine

Bibiani Gold Mine

Re-commissioning Exploration & Permitting Mining Processing (as required) Processing Mining

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Exploration for growth

Exploring to expand the business, not stay in business

2 4 6 8 10 12 14 5 10 15 20 25 30 35 40 Resolute Northern Star Saracen Regis Resources St Barbara Average Mine Life Exploration Budget FY18e (A$M)

Exploration Budget vs Average Mine Life

Exploration Budget FY18e (A$M) Average Mine Life (years)

Resolute

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RSG Opportunity

Analyst 12 month targets: 100% ‘BUY’

0.5 0.7 0.9 1.1 1.3 1.5 1.7 1.9 2.1 2.3 4/12/2016 4/01/2017 4/02/2017 4/03/2017 4/04/2017 4/05/2017 4/06/2017 4/07/2017

A$ Shareprice

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Mine Gold. Create Value.

Scale

5.6

Moz Reserves

Longevity

12yrs@ Syama 13yrs @ Ravenswood

Value

0.6x

P/NAV

Balance sheet

$290M

Cash, Bullion & Listed Investments

Growth

Nafolo Bibiani Tabakaroni

Track Record

28yrs

producing 8Moz

& counting

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Mine Gold. Create Value.

www.rml.com.au