Bendigo Mining Limited Investor Briefing February 2010

Transcription

1 Bendigo Mining Limited Investor Briefing Investor Briefing February 2010

2 Agenda Corporate info Timeline Dec qtr 09 results Operations review Finance Summary Forward-looking statements This presentation may contain certain forward-looking statements regarding (i) estimated resources and reserves, (ii) planned production and operating costs profiles, (iii) planned capital requirements and (iv) plans, strategies and corporate objectives. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Bendigo Mining Limited. The forward-looking statements are inherently uncertain and may therefore differ materially from results ultimately achieved. External and other factors may impact the Company and affect the forwardlooking statements in this release since its preparation. Subject to applicable law and stock exchange listing rules, Bendigo Mining does not intend to publicly update any of the forward-looking statements or any assumptions on which any such forwardlooking statement is made. 2

3 Corporate info ASX: BDG Share price YTD (Lo/Hi/Current): 0.14/0.32/ M ord shares, 5.8M unlisted rts & opts Mkt Cap: A$117 million (Feb 10) Cash: A$55 million (31 Dec 09) No debt, no hedging Substantial shareholders: Orbis Funds Mgt 11.0% State Teachers Ohio 6.3% Barrick Gold 2.2% 3

4 Timeline Important growth steps 2008 Development to Gill reef commenced at Kangaroo Flat Production successfully restarted (grades 6-10 g/t gold) Ramped up to 35,000 oz/y rate at Kangaroo Flat H Continued ramp-up to 40,000 oz/y rate at Kangaroo Flat H Henty acquisition increases prod. rate to 80-90,000 oz/y FY09 profit of $8.25M and 0.5c unfranked div Henty delivers strong exploration results Delivering i on the strategy t of building a sustainable mid-tier gold mining business 4

5 Dec Qtr 09 results 19,228 oz at A$889/oz Henty: 9791 oz at A$970/oz Kangaroo Flat: 9437 oz at A$860/oz Transitional issues at Henty Kangaroo Flat steady Henty exploration very strong Mine op. cashflow of $7 million No change to FY10 guidance of 80-90,000 oz gold production 5

6 Dec Qtr 09 Company performance 6

7 Operations review - Henty Henty acquired from Barrick Gold in July 2009 Low cost acquisition- $8M upfront ($5M cash, $3M equity) FY10 plan: 50,000 oz Costs: A$970/oz (Dec qtr 09) Producing from 3 ore zones 300 kt/y process plant Resources: 101 koz gold Reserves: 78 koz gold 7

8 Henty location & history Located in mineral-rich Mt Read Volcanic Belt on the West Coast of Tasmania 10 km south of Rosebery 23 km north of Queenstown 1988 exploration decline developed by RGC 1996 Goldfields commences production 2000s - 5 different owners in 10 years Henty Gold Mine Hobart Goldfields, AurionGold, Placer Dome, Barrick and now Bendigo. 8

9 Henty - tenement position Tenements cover 12 km strike of prospective rocks Consist of three mining leases and three exploration licences, covering 38.6 square km 12 km Ore mined over a strike of 3 km 3 km Down to 950 m in depth 9

10 Henty - recent performance 10

11 Henty Dec qtr 09 key points Mine moving from closure to steady-state operations Low ore availability impacting process volumes and grade 30% of ore processed during the qtr from outside reserve Equipment availability issues $4M fleet upgrade committed Exploration indicating mine life extensions 11

12 Henty - growth strategy Explore like never before! Previous spend max of $1-2M/y Now $8M/y rate planned Multiple exploration targets Development targets (Incremental mine life additions) Near mine targets (potential for major discovery and material reserve additions) 12

13 Henty - multiple targets to test 13

14 Henty - two high priority targets Darwin South Down-Dip - Mineralisation continues beneath previously mined Darwin South orebody Est.true width Gold assay Length Hole Number (m) (m) (g/t) Darwin South Down Dip Z Z Z Z Z Z Z Z Z Z Z Z Read Target - New zone of Henty alteration in wedge between main ore trend and Henty Fault 14

15 Henty - near mine targets Potential to add significant ounces Testing for repeat systems, new ore pods Testing planned from underground and surface locations Henty Up-Dip Target A zone of major potential which remains untested 15

16 Henty - near mine targets up-dip & down-dip Surface drilling of Up-dip Target commenced late Dec 09 16

17 Henty - near mine targets open along strike 17

18 Operations review Kangaroo Flat FY10 plan: 30-40, oz Costs: A$806/oz (Dec qtr 09) Producing from 5 reefs 600 kt/y process plant Resources: 79 koz gold Reserves: 30 koz gold 18

19 Kangaroo Flat Mine Dec 09 Qtr key points Mine has moved from a source of predominantly Gill reef to a mix of reefs (Young, Dale, Christine) Other reefs smaller in dimension than Gill and some with lower grade However, no major surprises on head grades (as planned) Increasing development required to access satellite reefs Further discoveries required to support mine plan in FY11 and beyond Testing of significant exploration targets underway (i.e. New Chum Owen Shale Target) 19

20 Kangaroo Flat Mine 20

21 Kangaroo Flat 100% Goldfield ownership 21

22 Kangaroo Flat Mine - operations Westcott Christine Young Dunlop Dean Dale Gordon Reefs currently mined Reefs under evaluation UMcD Grainger Dumble Gill Railway D5 Grenfell evaluation 22

23 Kangaroo Flat Mine variety of reef styles Gill reef Dean reef Twin boom jumbo development Single boom jumbo and air-leg development 23

24 Bendigo Goldfields - exploration Transformational targets - Patterns of endowment - Good rocks - Plumbing - Structural controls 24

25 Finance A$55 million cash in bank (Dec 09) Operating cashflow of $7 million in Dec 09 qtr No gold hedging No corporate debt Plan to invest $12 million in exploration in FY10 Potential $4 million fleet upgrade at Henty Conservative financial position 25

26 Summary 80-90, oz/y gold business Operating costs <$900/oz Strong exploration targets in two +million oz goldfields Skills & infrastructure in place Enterprise value of $60M Cash in bank of $55M Building a profitable mid-tier gold mining business 26

27 Thank you