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INVESTOR PRESENTATION
MAY 2015
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This presentation contains only a brief overview of Millennium Minerals Limited. The
contents of this presentation, including matters relating to the geology of Millennium’s
projects, may rely on various assumptions and subjective interpretations which it is not
possible to detail in this presentation and which have not been subject to any independent
verification.
This presentation contains a number of forward looking statements. Known and unknown
risks and uncertainties, and factors outside of Millennium’s control, may cause the actual
results, performance and achievements of Millennium to differ materially from those
expressed or implied in this presentation.
To the extent permitted by law, Millennium does not warrant the accuracy, currency or
completeness of the information in this presentation, nor the future performance of
Millennium, and will not be responsible for any loss or damage arising from the use of
information.
The information contained in this presentation is not suitable for detailed investigation or
analysis of any particular issue. Current and potential investors and shareholders should
seek independent advice before making any investment decision in regard to Millennium
or its activities.
DISCLAIMER
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Corporate
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MANAGEMENT
GLENN DOVASTON Chief Executive Officer
RICHARD HILL Chief Financial Officer
HARDY CIERLITZA Chief Geologist
CHRIS PYKE General Manager –
Nullagine Operations
PIERRE MALHERBE Company Secretary
BOARD
RICHARD PROCTER Non Executive Chairman
MICHAEL CHYE Non Executive Director
ROSS GILLON Non Executive Director
GREG BITTAR Executive Director
Profitable gold producer with highly prospective tenement portfolio in the Pilbara Region
CORPORATE SNAPSHOT
ASX Code MOY
Market Capitalisation $6.5M
Shares on issue 218M
Share Price $0.03
Cash at 31 March 20151 $3.6M
Debt at 31 March 20151 $30.7M
Enterprise Value $33.6M
1. Including 750oz Bullion of $1.17M
2. Senior Debt $15.2M, Subordinated Debt $12.9M, Finance Lease $2.6M
REGISTER BREAKDOWN %
IMC GROUP 34.6%
DAVID TEOH 5.9%
JULIUS BAER BANK 2.6%
THOMAS FAMILY 1.5%
OTHER 55.4% For
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Company Summary
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Significant financial and operational leverage driven by multiple production sources in close
proximity to a strategic 1.8 Mtpa mill
Focused on the Nullagine Gold Project
o Located in the East Pilbara region of Western Australia
o One of the oldest and perhaps least explored gold fields in Australia
o Comprises thirteen open pit deposits on granted mining leases
o Commissioned new CIL processing plant at Nullagine Aug 2012
o First gold pour in September 2012
2.5 year Reserve mine life supported by a 1.2 Moz resource at 1.15 g/t
Project tenements cover a total area of 640 km2
Simple open pit mining feeding a centralised processing facility
o New processing plant significantly outperforming nameplate capacity
with additional throughput scalability for low incremental cost
Target FY15 production of 75 koz with C1 cash costs of ~A$1,075/oz and
all in sustaining cash cost of ~A$1,300/oz
Significant financial and operational flexibility
o Multiple production ore sources de-risks single mill production and
grade
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Asset Overview
Millennium has 188 koz of gold reserves and 1.2 Moz of gold resources and continues to develop
and maintain a strong pipeline of deposits at various points of the exploration/development cycle
Key Operations
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Nullagine Mine Project Commentary
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Significant Mining Camp With Industry Standard Operations
Project
Infrastructure
Construction of CIL gold processing facility completed in
September 2012 by the Company's EPCM contractor
Consists of primary jaw crusher, a SAG mill, a Knelson gravity
concentrator followed by a conventional CIL circuit with a 30
hour residence time, and AARL elution and electrowinning
Mill availability ~93% & uptime 99% with annualised throughput
rates as high as 1.75 Mtpa
Power supplied by diesel generators owned and managed by
contractor
Water provided by dewatering bores in and around the Golden
Eagle deposit and a new bore field developed to the east of the
process plant which was completed in December 2013
Nullagine has a 140 person accommodation village with [85]
staff on site at any one time on a predominantly FIFO basis
Mining
Methodology
Open pit mining conducted using dry hire mining fleet under
owner operator model
Campaign mining and primary crushing operation operate one
shift per day at 12 hours per shift
o Mining fleet includes 120 tonne and 80 tonne excavators,
777’s and 40 t Volvos across multiple pits
Industry standard grade control to reduce dilution and
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Nullagine Mine Project Commentary
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Operational performance is now tracking in line with company guidance, but additional funds
now required for exploration drilling to extend mine life
Updated LOM
Schedule
Revised reserves based on 20%-35% reduction in
contained gold compared to resource model.
Increased mill throughput of 1.8mtpa due to effective
blending and optimisation of process circuit
Updated LOM schedule includes an ore reserve for a 2.5
year mine life based on mining and processing 4.2 Mt at
1.4 g/t Au
LOM based on achieving a mill run time of 96% based on
better SAG mill liner life
Milling Golden Eagle fresh rock from mid 2016 impacts
cash flows
Metallurgical testwork on Golden Eagle fresh material
indicates higher recoveries possible with upgrade on
existing plant. Studies put on hold until further fresh
reserves can be sourced
Production profile in 2017-19 constrained by current Ore
Reserve, however we expect this will change following in-
fill drilling and resource conversion studies
o Additional funds required for exploration drilling For
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Operating Performance Summary
Quarter Ended Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Total Volume Mined (bcm) 827,083 951,235 1,004,260 895,178 790,632
Strip Ratio 4.46 4.86 6.06 2.99 3.23
Head Grade (g/t Au) 1.49 1.58 1.70 1.92 1.76
Metallurgical Recovery (%) 0.89 0.86 0.87 0.86 0.85
Gold Sold (ounces) 18.93 17.79 18.13 19.70 20.04
Average Gold Price ($) 1,458.0 1,558.0 1,516.0 1,565.0 1,508.0
Gold Revenue ($M) 27.63 27.79 27.51 32.98 30.27
Operating Costs ($M) (27.63) (25.62) (25.56) (32.73) (25.62)
Net Operating Cashflows ($M) 0.00 2.17 1.95 0.25 4.65
Positive first quarter 2015 operating cashflow and sale of Beatons Creek tenements used to pay
down senior bank debt
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Operational and Financial Snapshot
Strong March 15 first quarter operating cashflow a result of restructured managements focus
on costs whilst maintaining above nameplate production performance
Gold Production and Cash Costs
Key Cashflows
Gold Production (koz) C1 Cash Cost ($/oz)
Cashflow ($M)
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17 16 16 14
19 18 18
20 20
n.m.
826 761
924
1,069
1,065 1,178 1,081 1,294
1,024
-
200
400
600
800
1,000
1,200
1,400
(3)
2
7
12
17
22
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Gold Production C1 Cash Cost
(15)
(10)
(5)
-
5
10
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Net Investing Cashflows Net Operating Cashflows Free Cashflows9
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Operational Improvements
Management restructure has bought significant operational improvements resulting in over
$12 M in annualised savings thus far
Savings Realised Savings (pa)
• Flights – change supplier, 43% reduction in costs $0.96M
• Mining Equipment – Reduced fixed monthly charges $1.32M
• Haulage contractor changed 30% reduction in haulage costs $2.40M
• Upgrade public road to RAV 10 further reduction in haulage costs $0.42M
• Re-negotiated insurance costs $0.30M
• Optimise leach circuit – reduced cyanide usage $0.85M
• Optimise gold room - reduce carbon strips $1.20M
• Reduce MOY personnel numbers 143 to 113 $4.20M
• Other cost reductions (freight, catering, camp motelling, corporate costs etc) $0.50M
Cost Saving being reviewed – diesel delivery, processing consumables suppliers, drill and blast
contract, reducing hire equipment onsite, continues review of all site personnel, salary review, town
property, rain water capture, blast hole stemming and many others
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2,051x 1,998x
1,942x 1,911x
1,800x
1,583x
1,124x
640x
448x 441x
165x
Saracen Evolution Regis Northern Star St Barbara Norton GoldFields
Doray Silver Lake Ramelius Millennium Unity
Peer Analysis
Millennium compares favourably to its peers on an EV/ Production basis
EV / FY 15 Production (x)
Average: 1,282x
11 Source: Argonaut
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Peer Analysis
Millennium compares favourably to its peers on Resource and Reserve metrics
212x
108x
75x 75x
49x 44x 33x 32x 27x
16x 15x
Northern Star Evolution Regis Doray Saracen St Barbara Silver Lake Norton GoldFields
Millennium Ramelius Unity
986x
302x 296x 274x 238x 203x 176x
154x 113x 84x
29x
Northern Star Silver Lake Norton GoldFields
Evolution Regis Saracen Millennium Doray St Barbara Ramelius Unity
EV / Resources (x)
EV / Reserve (x)
Average: 62.3x
Average: 259.6x
12 Source: Argonaut
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Forecast
Quarterly Production Schedule – Life of Mine Plan
-
0.50
1.00
1.50
2.00
2.50
3.00
-
50
100
150
200
250
300
350
400
450
500
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
g/t Kt Fresh Tonnes
Oxide Tonnes
Average Grade
Quarterly Forecast – Revenue, Operating Cashflow and Gold Production
(10)
(5)
-
5
10
15
20
25
(15)
(10)
(5)
-
5
10
15
20
25
30
35
40
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Koz A$m Revenue
CFADS
Production
Source: Company Site Budget 2015 Version 11.5
Under the current Life of Mine Plan, operations become more challenging from mid 2016
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Future
resource
development
Future
resource
development
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FORECAST
Quarter Ended Mar-15
Actual Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Total Volume Mined (bcm) 790,632 835,677 758,018 719,534 628,959 751,327 504,772 370,929 697,284 690,983 92,954
Strip Ratio 3.23 3.23 2.11 4.05 2.23 2.76 4.72 6.15 5.16 3.36 1.53
Head Grade (g/t Au) 1.76 1.61 1.62 1.42 1.49 1.24 1.09 0.97 1.20 1.60 1.13
Metallurgical Recovery (%) 85% 88% 92% 92% 93% 93% 85% 77% 78% 74% 71%
Gold Sold (ounces) 20,040 20,522 21,317 18,563 19,898 16,152 13,078 9,918 12,561 16,140 7,517
Average Gold Price (A$) 1,508 1,579 1,541 1,481 1,476 1,456 1,599 1,599 1,599 1,599 1,599
Gold Revenue (A$m) 30.27 32.40 32.86 27.48 29.36 23.51 20.91 15.86 20.08 25.81 12.02
Operating Costs (A$m) (25.62) (26.83) (25.64) (25.34) (25.58) (21.71) (19.25) (16.59) (16.89) (17.10) (14.72)
Operating Cashflows (A$m) 4.65 4.81 6.33 0.56 3.66 0.43 0.29 (0.85) 2.45 8.06 6.22
Cumulative (A$m) 9.46 15.79 16.35 20.01 20.44 20.73 19.88 22.33 30.39 36.61
Golden Eagle fresh rock milled from mid-2016 negatively impacting cashflows
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Cashflows exclude Salvage, final reclamation and redundancy costs – net ~$0.5M
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Reduce overall debt and maximise cash flow through operational
improvements
Cost reduction
Production efficiencies
Effective personnel - right people, in the right roles doing the right
things
Extend LOM through
Brownfields exploration – existing tenements
Greenfields exploration – farm in and purchase surrounding
tenements
Identify regional opportunities within haulage distance of the
processing plant
Acquisitions
Strategy
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Golden Gate Condor – NW
extension - 200m+ strike,
outcropping mineralisation
with rock chips 9- 24 g/t Au; 2
parallel zones
Bartons east and south -
extension existing pit, parallel
load to south
AU81 east/west – Extensions
to existing pit
Shearers/Otways west – 2
zones at Shearers west,
250m strike, recent RC holes
4m @ 1.72 g/t Au, 33m @
0.59 g/t Au
Resource Development – Existing pit extensions
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Ann de Videa - 200m strike
of RAB-defined ore grades,
walk up RC target, 2
parallel trends, adjacent
Castlemaine prospect
historical grades of >5,600
g/t Au
Golden Eagle North -
750m+ strike, strong soil
anomaly, historical
workings, recent rock chip
7.2 g/t Au,
Mountain Maid -150m+
strike of substantial
historical workings, only
RAB on W margins: 4m @
4.8 g/t Au;
Mundalla –200m+ strike
similarities to Golden Gate,
deep historical shafts, only
4 historical drill holes
Brownfields Exploration, Existing tenements
– low tonnes/high grade
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Thank You
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