INVESTOR PRESENTATION PDAC TORONTO March 2012
Forward Looking Statements This presentation contains certain forward-looking statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, reserves and resources, the financial position of Troy Resources Limited (the “Company”), industry growth or other trend projections. Although such forecasts and forward-looking statements reflect current beliefs and are based on information currently available and assumptions believed to be reasonable there is no assurance that actual results will be consistent with such forecasts and forward-looking statements. A number of factors could cause actual results, performance, or achievement to differ materially from the results expressed or implied in such forecasts and forward-looking statements. For a description of such factors please see the section entitled “Risk Factors” in the Company’s amended and restated preliminary prospectus dated 10 January 2008 available under the Company’s profile at www.sedar.com. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. 2
Troy - A Profitable Mid Tier Gold Producer • Listed on the ASX (1987) and TSX (2008) Code: TRY • Dividend Paying – 12 fully franked cash dividends over the last 12 years. • Two operating gold mines • Andorinhas, Para State, Brazil • Casposo, San Juan Province, Argentina • Sandstone, WA, Australia – free carry Ni exploration JV with Western Areas (WSA) Daly R iver Andorinhas Belém Gold Mine S ands tone Q ue e nsla nd BRAZIL We ste rn Gold Mine Austra lia So uth X Brasilia Austra lia Belo Horizonte N. S. W. P erth S ydney 500 km Rio de Janeiro A.C.T . Sao Paulo Vic to ria San Juan Casposo Gold Buenos Aires 3 Silver Mine
Troy – A Period of Strong Growth • FY 2011 - 17% increase in gold production to 71,614 oz • FY 2011 - 25% reduction in cash costs to US$554/oz net of silver credits • FY 2011 - Net Profit of A$14.6m • Paid 12th fully franked cash dividend of 6 cents per share in January 2012 • December Quarter – 39% increase in gold production to 33,329 oz • December Quarter – 36% reduction in cash costs to US$373/oz net of silver credits • 76% increase in H1 FY2012 profit after tax to A$10.7m • Excludes additional A$5.5m unrealised PAT at the end of the half on unsold production • Guidance FY2012 – 130 koz gold equivalent • Doubled Casposo exploration budget to $15m • Discovery of new high-grade zone at Casposo delivering 19% increase in M+I contained gold equivalent 4
Corporate Snapshot Key Statistics (A$) 88.8M Ordinary Shares: Options: 5.0M Share Price as at 22 Feb 2012: $4.90 52 Week Range: $3.01 - $5.01 Market Cap as at 22 Feb 2012: ~A$435M Net Cash as of 31 December 2011: ~A$4.6M [Cash A$30.6m + Debt A$26m] Shareholders Non-Executive Directors Senior Management Paul Benson, CEO & Managing Director David Dix, Non-Executive Chairman Peter Doyle, VP Exploration & Bus. Development Gordon Chambers, Non-Executive Director Ken Nilsson, Executive Director Projects Fred Grimwade , Non-Executive Director David Sadgrove, CFO & Company Secretary John Jones, Non-Executive Director Andrew Storrie, COO Robin Parish, Non-Executive Director 5
Andorinhas Gold Mine - Brazil 3.2m @ 72.78 g/t Au 6
Andorinhas Gold Mine - Brazil • FY2010: 31,568oz at US$634/oz • FY2011: 49,099oz at US$519/oz • December Quarter 2011: 12,625oz at US$542/oz Guidance FY2012 – 50koz • Current Reserves support the operation • through to FY15 with potential at depth and regionally to extend the mine life Andorinhas Production Profile 60,000 Potential for additional 50,000 ounces from 40,000 Melechete Extension, Au 0z Arame, M1 Vein, 30,000 Lagoa Seca West, 20,000 Coruja, Luiza 10,000 0 FY12 FY13 FY14 FY15 FY16 FY17 Scheduled Reserve Ounces 7
Melechete Lode Drilling and Grade Distribution 8
Casposo Project – San Juan Province 9
San Juan Mineral Project Endowment Mines & Casposo Project Access 10
Film 11
Casposo – the Crown Jewels • Reached budget throughput midway through month of September • 6,606 oz Au @ unit cash cost of US$377/oz Au net of silver credits • December Quarter production 87% increase to 20,701 oz Au with unit cash cost falling 60% to US$270/oz Au net of 274,660 oz of silver credits (silver up 96%) • Co product costing 25,873 oz Au_eq (up 86%) at US$551/oz Au_eq (down 38%) • Guidance FY2012 - 80koz gold equivalent • The site moved from diesel generated power to grid power in December further lowering costs • Significant exploration results at Casposo with potential dependent on mine planning, to: • Extend mine life (additional ounces) • Avoid drop in production in years three and four (access to higher grade) • Lower unit costs (access to higher grade) • New Reserve and production profile out early June quarter 12
Blue Sky 13
Total Gold Equivalent Production Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up Aim to avoid the drop in production in Years 3 and Aim to extend mine life 4 through proving up additional higher grade ore – through proving up additional eg Kamila SE Extension surface and underground Reserves 14
Casposo 2010 Mining Reserves Highest value intercept on the property to date HOLE: CA08250 7.2m @ 108.7g/t Au 4,423g/t Ag 15
New Resource Area Focused on First 500m of 1.5km Structure 16
New Resource Area Focused on First 500m of 1.5km Structure Table 1a: Kamila Southeast Resource Estimate (Using 2g/t Au_Eq Cut-off) Resource Classification Tonnes Gold Silver Gold Equivalent Au_Eq Contained Metal (g/t Au) (g/t Ag) (g/t) (Au_Eq oz) Measured 96,000 6.68 770 17.68 54,600 Indicated 161,000 4.43 572 12.61 65,300 Total Measured & Indicated 257,000 5.27 646 14.50 119,900 Inferred 226,000 3.00 281 7.01 51.000 Note: Discrepancies may occur due to rounding Table 1b: Kamila Southeast Resource Estimate - High Grade Zone (Above 5g/t Au_Eq Cut-off) Resource Classification Tonnes Gold Silver Gold Equivalent Au_Eq Contained Metal (g/t Au) (g/t Ag) (g/t) (Au_Eq oz) Measured 87,500 7.24 832 19.13 53,500 Indicated 109,000 6.05 767 17.00 59,600 Total Measured & Indicated 196,000 6.58 796 17.95 113,100 Inferred 108,000 4.72 417 10.68 37,100 Note: Discrepancies may occur due to rounding 17
Total Gold Equivalent Production Original data from 2010 NI 43-101 – Actual results delayed by slower than expected ramp up 18
Exploration Model – Pajingo Mine 19
New Ore Grade Intercepts 20
Looking Forward • Casposo reaching its full potential – it will be one of the lowest cost gold mines reporting on the ASX • Release updated mine plan for Casposo in June quarter incorporating the high grade Kamila SE Extension discovery • Ongoing exploration at Casposo and Andorinhas • Opening of Troy office in Toronto raising the profile on the TSX • Continue to look for the next M+A opportunity 21
THANK YOU
Recommend
More recommend
