Cash is King! November 2008 Annual General Meeting

Transcription

1 Cash is King! November 2008 Annual General Meeting 1

2 Capital Summary Market capitalisation A$9.3 million (as at 20/11/08) 17.5 cents Total shares on issue m (3.31m options) Number of shareholders 700 Substantial Shareholders: OZMinerals Limited 18.8% Topham & Ogg (Directors) 18.1% Anglo Pacific 13.1% Rio Tinto 6.4% 2

3 Investor Highlights Positive cash flow underpinned by increasing royalty revenue (Royalties projected to generate in excess of $4.5m pa based on prevailing commodity prices) Finally some traction on Filipino drilling on prospective copper and gold targets Drilling main targets scheduled to be completed by mid Greater number of offers to acquire either royalties or exploration plays NO DEBT!!! 3

4 Corporate Strategy Unchanged Extend royalty interests and subsequent cashflow Convert exploration success to equities/free carried interests/royalties Maintain strong balance sheet with a healthy cash positionavoid shareholder dilution Capital management and other corporate initiatives to add value 4

5 Existing Royalty Bank Company Description Pre Resource Scoping Studies Feasibility In Development /Production Oceana Gold Ltd Reefton, 5,000 ounces gold subject to prevailing prices Kagara Zinc Ltd Mt Garnet 3% NSR**, Zinc,Lead, Silver and Copper Copperco Ltd Mt Kelly, 1% NSR Copper Silver Standard Resources Inc. Bowdens, 1-2% NSR Silver,Zinc,Lead Hydromet Corp Ltd Stanton, 1% NSR, Nickel, Cobalt Georgetown Mining Ltd Dagworth/Huonfels Perserverance Corp Ltd Heathcote Pelican Resources Ltd Xanadu Alkane Exploration Ltd Molong Copper Strike Ltd Plus five Syrah tenements in QLD and STH AUS Lake Margaret 5

6 Royalties Now Onstream Oceana s Reefton gold project -first two payments received, now due quarterly from December onwards Copperco s Mt Kelly copper project- royalties to accrue from this quarter Kagara s Mt Garnet project -royalties to accrue from this quarter 6

7 DIRECTORS & SENIOR MANAGEMENT Peter Topham, Executive Chairman Founder of Royalco with a background in project finance, the securities industry and public company management within the resources sector. David Ogg, Chief Financial Officer and Director Founder of Royalco. Specialises in financial and strategic advice. Tom Eadie, Non-executive Director Executive Chairman of Copper Strike Limited and Chairman of Syrah Resources Limited. Bruce Pertzel, Non-executive Director Managing Director, Pertzel Tahan & Associates, Consulting Geologists. 7

8 Philippines Tenements Potential For Discovery Remains High Challenges are Non Government Organisations (and weather!) 2009 will advance targets at Gambang and in the Pao region 8

9 RECENT EXPLORATION ACTIVITIES PAO limited drilling (three holes on a secondary anomaly), significant roadworks, regional soil sampling. MALANGZA- five holes to test the potential for mineralisation at depth. GAMBANG- seven holes now completed on Herman s Find, Eastern Breccia and Tokla. Extensive soil sampling programme. 9

10 PAO LOCATION Excellent regional prospectivity- Runruno and Didipio Manidyo is main target Yabbe application being progressed Bugkalot relationships 10

11 PAO PROJECT Manidyo quartz enargite vein outcrop-main target at Pao 11

12 BUGKALOT INVOLVEMENT 12

13 MINES IN THE GAMBANG REGION Royalco Tenement Area (red border) 13

14 GAMBANG DRILL TARGETS Main porphyry targets-cableway and Diatreme Breccia (Tokla) 14

15 Royalco Resources Limited MALANGZA ALTERATION SYSTEM 15

16 Exploration Going Forward PAO-Manidyo remains the main target GAMBANG-Cableway the main target, Tokla results pending. YABBE- awaiting approvals along with Bugkalot Joint Venture Timescale-first half 2009 for Pao and Gambang drilling subject to access. Yabbe later in the year. OTHER OPPORTUNITIES UNDER REVIEW-not just Philippines 16

17 Where is the growth/upside? 1. Royalties. Expanded cash flow as additional royalty interests come onstream. We are always in the market for the acquisition/creation of additional royalties. 2. Exploration. Whilst not likely to be recognised in the current market, our targets offer significant upside based on success in the medium term. 3. Business Development. The company is actively assessing new exploration opportunities-we have deal flow with many majors, a highly capable exploration team and cash!. 17