RALEIGH FINLAYSON - Managing Director
MORGAN BALL - Chief Financial Officer
SIMON JESSOP - Chief Operating Officer
TROY IRVIN - Corporate Development Officer
Presentation
28th April 2020
MARCH QUARTER 2020 -
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QualificationThis presentation has been prepared by Saracen Mineral Holdings Limited (Saracen or the Company) based on information from its own and third party sources and is not a disclosure document. No party other than the Company
has authorised or caused the issue, lodgement, submission, despatch or provision of this presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this
presentation.
You should be aware that as an Australian company with securities listed on the ASX, the Company is required to report reserves and resources in Australia in accordance with the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code 2012 Edition ) ("JORC Code"). You should note that while the Company's reserve and resource estimates comply with the JORC Code, they may not comply with
the relevant guidelines in other countries.
This is a presentation about geology, geoscientific interpretation, geoscientific speculation, gold deposits, gold potential, engineering, infrastructure, potential values, costs, risks, and related matters pertinent to Saracen’s present
and future activities as a publicly listed mineral exploration and production company. It includes forecasts, predictions, targets and estimates of future expenditures which may vary over time.
It is uncertain if further exploration will result in the determination of a Resource or Reserve. Where exploration, evaluation, operational and feasibility study expenditure estimates and budgets amounts are presented herein,
ongoing prioritisation and scaling of expenditures will be subject to results and, where applicable, scheduling changes. Targeted production and other outcomes are subject to change, and may not eventuate, depending on the
results of ongoing performance and assessment of data. All Reserves and Resources as referred to herein are in accordance with the JORC Code. Refer to Appendix A of this presentation for the relevant Competent Person
statements. Resources are inclusive of Reserves.
Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking
statements:
a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social
uncertainties and contingencies;
b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and
c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future
technical, economic, market, political, social and other conditions.
The Company disclaims any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”,
“contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements.
All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and
accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. The Presentation Materials do not purport to be all inclusive or to contain all information about the
Company.
This presentation is not a prospectus, disclosure document or other offering document under Australian law or under any other law. It is provided for information purposes and is not an invitation nor offer of shares for subscription,
purchase or sale in any jurisdiction.
Take care to question and carefully evaluate any judgments you might make, on the basis of the Presentation Materials, as to the value of Saracen and its securities. This presentation is not intended to provide the sole or principal
basis of any investment or credit decision or any other risk evaluation and may not be considered as a recommendation by Saracen or its officers. Any investor reading the Presentation Materials should determine its interest in
acquiring securities in Saracen on the basis of independent investigations that it considers necessary, prudent or desirable.
Saracen and its officers do not accept any liability for any loss or damage suffered or incurred by any investor or any other person or entity however caused (including negligence) relating in any way to this presentation including,
without limitation, the information contained in it, any errors or omissions however caused by any other person or entity placing any reliance on the Presentation Materials, its accuracy or reliability.
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 3
Safety - LTIFR at 0.5
Record quarterly gold production - 158,132oz at AISC A$1,133/oz
At 31 March - Cash / liquids A$340m, debt A$360m
Record cash build - A$106m (pre-tax and voluntary debt repayments)
Record quarterly unaudited NPAT - A$65m to A$70m
10.5% interest in Red 5 Limited (ASX: RED) sold for A$39m (pre-tax)
Growth projects: Carosue Dam mill expansion, Thunderbox Underground development
accelerated, Thunderbox D Zone, KCGM Brown Hill and Morrison open pits
A$13.8m invested in exploration, multiple strong results point to Reserve growth
Record quarterly production and cash flow:
Highlights
All reported KCGM metrics are attributable to Saracen i.e. 50% share unless stated otherwise
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 4
Growing:
42 46 47 50
4650 53 49
21
59
1,026964
1,098 1,133
0
200
400
600
800
1,000
1,200
0
20
40
60
80
100
120
140
160
180
Jun Q 2019 Sep Q 2019 Dec Q 2019 Mar Q 2020
A$/
oz
Rec
over
ed g
old
(koz
)
Thunderbox Carosue Dam KCGM Group AISC
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS
“The standard you walk past is the standard you accept”:
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Sustainability
Maintaining a positive safety culture…
…with additional COVID-19 challenges
Focused on leading indicators:
Positive safety behaviors and
interactions
Hazard identification
Near miss reporting and
investigation
Workplace and equipment
inspections and audits
Lag indicators:
LTIFR 0.5
TRIFR 8.2Lost time injury frequency rate (LTIFR) - Calculated as a rolling 12 month average per million hours worked
LTIFR WA gold average www.dmp.wa.gov.au/Documents/Safety/MSH_Stats_Posters_SAfetyPerfWA_1718.pdf
0.0
1.0
2.0
3.0
4.0
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-17
Dec
-17
Jan
-18
Feb
-18
Mar
-18
Ap
r-1
8
May
-18
Jun
-18
Jul-
18
Au
g-1
8
Sep
-18
Oct
-18
No
v-18
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-19
Dec
-19
Jan
-20
Feb
-20
Mar
-20
LTI LTIFR (12MMA) WA GOLD LTIFR
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 6
Sustainability
Controls implemented include:
Longer FIFO rosters
Additional charter flights and buses to
support social distancing
Gym and wet mess closed with most
meals served as take away
Reduced capital works
Saracen remains vigilant and prepared to
take more extensive action if necessary
Pro-active response to COVID-19:
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 7
Saracen’s long-standing strategy to ‘future-proof the business’ includes the build-up of
surface ore stockpiles to >1.7Moz
Months of processing on each site: Carosue Dam ~9 months, Thunderbox ~13
months, KCGM low grade ~25 months, KCGM sub-grade ~92 months
In the current June quarter, Saracen plans to prioritise the milling of higher-grade
portions of the stockpiles at Carosue Dam and Thunderbox
This will bring forward production ounces and cash flow into FY20
Although this plan will bring forward ounces from FY21, it will further insulate the
business should production be restricted by any COVID-19 impacts at a later date
Despite this pro-active plan, production guidance for FY21 remains +600,000oz
“Future proofing the business”:
SustainabilityF
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 8
Clontarf site visit
Curtin Kalgoorlie Campus Careers Fair
Graduates Day $39k donated to Bushfire Appeal
Goat Rescue CDO 10-Year Anniversary
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 9
Sustainability
Carosue Dam - Solar Farm:
New 1MW array delivering early
results
Environmental savings since late
January include:
346t of CO2
32,816 trees
40% cheaper than current power
generation
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 10
Operations - KCGM (50%)
First full quarter contribution from KCGM, immediately cash generative
Gold production - 58,563oz at an AISC of A$1,415/oz
Mine operating cash flow - A$76.7m
Net mine cash flow - A$56.1m (after growth capital of A$20.7m)
Open Pit gold mined - 29.9koz @ 1.6g/t / underground gold mined - 11.8koz @ 2.5g/t
Closing ore stockpile (inventory awaiting processing) - 1.6Moz
Milling - Processed 1,553kt of ore @ 1.4g/t with 82.9% recovery
Major 203-hour shutdown of the processing plant completed
Quarterly highlights:
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 11
Discovery and Growth - KCGM (50%)
Morrison starter pit:
Priority open pit mining
area
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 12
Discovery and Growth - KCGM (50%)
Brown Hill cutback underway:
Provides a third working
area
Pro-active utilisation of
mining equipment and
fixed costs
550kt of pre-stripping
moved at 31 March
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 13
Operations - Carosue Dam
Quarterly highlights:
Gold production - 49,478oz at an AISC of A$1,308/oz
Mine operating cash flow - A$46.2m
Net mine cash flow - A$20.1m (after growth capital of A$26.2m)
Karari - Dervish underground gold mined - 52.5koz @ 2.5g/t
Closing ore stockpile (inventory awaiting processing) - 46koz
Milling - Processed 585kt of ore @ 2.9g/t with 92.0% recovery
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 14
Operations - Carosue Dam
Quarterly highlights:
1.0
2.0
3.0
4.0
0
10
20
30
40
50
60
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Con
tain
ed
koz
Mining
Contained Gold Mine Grade
1.0
1.5
2.0
2.5
3.0
0
10
20
30
40
50
60
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Recovere
d k
oz
Milling
Recovered Gold Mill Grade
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 15
Operations - Carosue Dam
Quarterly highlights:
$400
$600
$800
$1,000
$1,200
$1,400
0
10
20
30
40
50
60
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
A$/o
z
Re
co
ve
red
ko
z
Production and AISC
Recovered Gold AISC
0.0
0.5
1.0
1.5
2.0
0
10
20
30
40
50
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Co
nta
ine
d k
oz
Closing ore stockpile
Contained Gold Grade
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 16
Discovery and Growth - Carosue Dam
Mill expansion to 3.2Mtpa:
Mill throughput increases to 3.2Mtpa (from
2.4Mtpa) during FY20/21, A$34m capital
Recovery increases to 94% (from 93%)
Unit milling costs reduce by up to A$2.50/t
Additional ore to fill the expanded mill will be
sourced from the Carosue Dam open pits
(+10 years at 800ktpa in Reserves)
Mill feed 70-75% underground ore / 30-25%
open pit ore
As previously flagged, commissioning has
been delayed until March quarter 2021 due
to COVID-19 related impacts at the mill
manufacturing plant in China
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 17
Discovery and Growth - Carosue Dam
Mill expansion to 3.2Mtpa:
Mill footing - 32t of steel, 240m³ of concrete
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 18
Operations - Thunderbox
Record gold production - 50,091oz at an AISC of A$682/oz
Mine operating cash flow - A$84.5m
Net mine cash flow - A$64.3m (after growth capital of A$20.2m)
Total open pit material movement - 1.7 million BCM
Open pit ore mined - 0.7Mt with a mine grade of 2.0g/t
Closing ore stockpile (inventory awaiting processing) - 116koz
Milling - Processed 767kt of ore @ 2.1g/t with 95.6% recovery
Quarterly highlights:
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 19
Operations - Thunderbox
Quarterly highlights:
0.5
1.0
1.5
2.0
2.5
0
20
40
60
80
100
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Co
nta
ine
d k
oz
Mining
Contained Gold Mine Grade
0.5
1.0
1.5
2.0
2.5
0
10
20
30
40
50
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Re
co
ve
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ko
z
Milling
Recovered Gold Mill Grade
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 20
Operations - Thunderbox
Quarterly highlights:
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
0
10
20
30
40
50
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
A$/o
z
Recovere
d k
oz
Production and AISC
Recovered Gold AISC
0.0
0.5
1.0
1.5
0
15
30
45
60
75
90
105
120
Jun Q2019
Sep Q2019
Dec Q2019
Mar Q2020
g/t
Co
nta
ine
d k
oz
Closing ore stockpile
Contained Gold Grade
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 21
Thunderbox - ‘Does what it says on the tin’
High productivity / low cost
Top down method (no pit staging)
As the mine progresses:
Grade rises (1.0 to 1.9g/t)
Strip ratio falls (10 to zero)
AISC falls to ~A$625/oz
Stockpiles grow to 114,000oz
Cash flow increases dramatically
More open pit mining to come…
D Zone ramping-up along strike
Otto Bore 9km from mill
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 22
Discovery and Growth - Thunderbox
D Zone:
Ramping up
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 23
Strong cash build, net debt reduced to A$20m:
Cash and equivalents of
A$340.3m at 31 March after:
Making an additional debt
repayment of A$25m
Paying A$25m tax
Post the quarter, the A$45m
revolving credit facility was
drawn…
…to maximise cash reserves
given COVID-19 uncertainty
Net debt reduced to A$20m
Balance sheet
31 4561
83102
118 131143 153
155
196
284
340
0
50
100
150
200
250
300
350
400
Mar Q
20
17
Jun Q
201
7
Sep
Q 2
01
7
Dec Q
20
17
Mar Q
20
18
Jun Q
201
8
Sep
Q 2
01
8
Dec Q
20
18
Mar Q
20
19
Jun Q
201
9
Sep
Q 2
01
9
Dec Q
20
19
Mar Q
20
20
A$m
Cash Bullion Investments Total
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 24
Cash Flows
Record cash build of A$106m (pre tax and voluntary debt repayment):
284
390340
369 5 134
3067
14 2 1125
25
0
100
200
300
400
500
600
700
Cash
, Bu
llion &
Inve
stmen
ts3
1/12
/19
Sale
s Re
ceipts
Inve
stme
nts
Ope
ratin
g C
ost
Susta
ining
Ca
pita
l / Oth
er
Gro
wth C
apita
l
Exp
loratio
n
Ore
Purch
ase
Working
Cap
ital A
djustm
ent
Cash
, Bu
llion &
Inve
stmen
tsb
efore
M&
A, T
ax &
De
bt
Tax P
aymen
ts
Deb
t repa
yme
nt
Cash
, Bu
llion &
Inve
stmen
ts3
1/03
/20
A$m
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS 25
~One year’s production over three years:
Hedge Book
Quarter Quantity Price
oz A$/oz
Jun-20 73,300 1,946
Sep-20 67,800 1,953
Dec-20 60,300 1,995
Mar-21 58,800 2,015
Jun-21 55,800 2,032
Sep-21 49,300 2,065
Dec-21 51,200 2,093
Mar-22 42,500 2,147
Jun-22 35,500 2,198
Sep-22 26,000 2,262
Dec-22 18,000 2,280
Mar-23 4,000 2,480
Total 542,500 $2,0561,450
1,550
1,650
1,750
1,850
1,950
2,050
0
100
200
300
400
500
600
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
Go
ld p
rice
(A
$/o
z)
Hed
gin
g (
koz)
Hedge Book
Hedge oz Average Hedge Price
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS
More
We have a simple business plan - We mine where we mill, within 300km of Kalgoorlie
We deliver - 7 year track record of meeting or beating guidance, tracking ahead of
FY20 guidance
We have acquired 50% of the globally renowned Super Pit - Immediate step-change in
cash flow generation
We have an outstanding platform for growth - People, assets, balance sheet
We are building a more sustainable gold company - Future proofing our business,
seizing the ESG opportunity
26
This presentation has been authorised for release to the ASX by Raleigh Finlayson, Managing Director
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GOLD SECTOR LEADERSHIP BY THINKING AND ACTING LIKE OWNERS
Contact Details:
Troy Irvin
Corporate Development Officer
phone: +61 8 6229 9100
email: [email protected]
www.saracen.com.au
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