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ENTERING THE RADAR SCREEN NOW!
ENTERING THE RADAR SCREEN NOW!
Forward-Looking StatementsThis 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 NL (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 January 10, 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.
Forward-Looking Statements
“2008 will be an ugly year… When you add all the losses, not just subprime but also soon enough on auto loans, credit cards, student loans, leveraged loans and corporate bonds, we’re looking at $1 trillion of losses in the financial system.”
Nouriel Roubini is a Professor of Economics at New York University, January 2008
Investment Highlights
Track record of low-cost gold productionOver 400,000 ounces produced since 2004 at cash costs of US$201/oz
History of profitability and dividends61% compound annual growth in net income since 2005
Gold exposure at a compelling valuation~30% of current market capitalization supported by strategic investments and cash
Focused on growthCommissioning ~50,000 oz Andorinhas Gold project in BrazilAggressive exploration program underway
The Company
Profitable Junior Gold Producer Focused on GrowthListed on ASX since 1987 - symbol “TRY”Listed on TSX Jan 2008 - symbol “TRY”A$2.40 share price*/A$0.075 annual dividend74.7M shares outstanding, ~A$200M market capA$29M cash balance as at 20 March, 2008No debt No hedging Insider ownership ~14% (12% Chairman and Family)
* Based on the last trading day prior to the filing of the amended and restated preliminary prospectus dated Jan. 10, 2008
* AUD/CAD = 0.89
Senior ManagementPaul Benson, CEO (Started with Troy October 2007)
20 years experience; degrees in geology and mining engineering; 7 years with BHP Billiton – before that Rio Tinto, RGC
Ken Nilsson, Executive Director - Brazil (Started with Troy 1997)Mining engineer; 30+ years international mine construction and production experience
Graham Buttenshaw, COO (Started with Troy 2008)Mining Engineer 20+ experience including GM at Apex Silver’s San Cristobal Bolivia, 17 years with Billiton.
Gerry Kaczmarek, CFO (Started with Troy 1998)CPA; 20+ years industry experience including Rio Tinto
Peter Doyle, VP Exploration & Bus. Development (Started with Troy 2005)Geologist; 27 years exploration experience including Freeport and Gold Fields Limited
Board of DirectorsJohn Jones, Non-Executive Chairman
Prominent participant in gold mining sector for 40+ yearsDenis Clarke, Non-Executive Director
Geologist; 30 years experience in exploration and miningJohn Dow, Non-Executive Director
Geologist; former Managing Director of Newmont AustraliaThomas McKeith, Non-Executive Director
Geologist; 18 years exploration and business development experience, including Gold Fields Ltd.
Alan Naylor, Non-Executive DirectorFinancial adviser; founder of Troy; 30+ years experience
Paul Benson, Executive DirectorKen Nilsson, Executive Director
What We OwnGold Assets
Andorinhas Gold Project – BrazilComaplex (CMF-TSX) - 16.4% equity, ~US$46M* 2.0Mtpa gold processing plant –AustraliaSandstone Gold Mine – AustraliaBirim Goldfields (BGI-TSX) - 7.4% equityAdelaide (ADN-ASX) - 14.2% equityPortfolio of prospective exploration assets
Brazil, Australia, and MongoliaOther Assets
Andorinhas, Brazil – Iron-OreDaly River, Australia – ZincSandstone, Australia – NickelDornogovi, Mongolia – Coal
BRAZIL
Rio de Janeiro
Salvador
Fortaleza
Brasilia
Belém
Cayenne
Andorinhas Gold Project
* Based on the last trading day prior to the filing of the amended and restated preliminary prospectus dated Jan. 10, 2008
Sertão Gold Project
Serrita Gold Project
Proven Mine Operator and DeveloperFive mines delivered over the past 10 yearsProduced ~410,000 oz of gold at average cash cost of US$201/oz over the past 4 yearsNow commissioning Andorinhas project, expected to produce ~50,000 oz/a at cash costs below US$270/oz
140
120
100
80
60
40
20
0
Gold Production
2004 2005 2006 2007
Cash CostsUS$350
US$300
US$250
US$200
US$150
US$100
US$50
US$0
000’
s of
Oun
ces U
S$/Gold O
unce
We Have a Positive Impact
Environment
Community
People
Delivering Positive Financial Results
Net Income & Operating Margin Net Income Per Share
$0.40
$0.30
$0.20
$0.10
$0
$25
$20
$15
$10
$5
$0
50%
40%
30%
20%
10%
0%
A$M
A$8M
A$16M
A$20M
2005 2006 2007
Net Income from Continuing Operations
Operating Margin
A$/
Shar
e
2005 2006 2007
A$0.140
A$0.288
A$0.345
Fiscal Years Ending June 30 Fiscal Years Ending June 30
Net income has grown by 61% per year since 2005
EPS has grown by 57% per year since 2005
Paying Dividends
$0.08
$0.07
$0.06
$0.05
$0.04
$0.03
$0.02
$0.01
02004 2005 2006 2007
A$/
shar
e
2000 2001 2002 2003Fiscal Years Ending June 30
$0.060$0.065
$0.070$0.075
$0.040$0.045
$0.050$0.055
25% ANNUALIZED TOTAL RETURN TO SHAREHOLDERS
Troy has increased its dividend each year since 2000
Andorinhas Gold Project, BrazilFrom Acquisition to first production in 16 Months for < US$20MJune 2007 Snowden 43-101 Technical Report Results:
~50,000oz/aInitial 5-year mine life Forecast operating costs: ~US$270/oz
IRR +50% (at US$550/oz gold)Exploration potential
Lagoa SecaPre-Mining
April 2007
Lagoa SecaMining Operations
December 2007
Lagoa SecaPit Operations
August 2007
Mamão Mill Site Construction
December 2007
Andorinhas Exploration Upside
Exploration RAB & RC DrillingLagoa Seca Trend
Deeper Extensional Diamond Drilling at Lagoa Seca Pit
Exploration RAB Drilling Babaçu
Shallow RC Drilling at MamãoM2 & Melechete Lodes
LAGOA SECA TREND (2km)
MAMÃO-BABAÇU TREND
(10km)
Old GarempieroWorkings
4 – 7 drill rigs to explore property
Approximately US$3M budgeted for 2008 exploration
Focused on finding additional near-surface high-grade material and testing extensions to depth
Indicated Resources
Andorinhas Mineral Resources and Reserves
747,000480,200
--
1,227,200
Probable Reserves
MamãoLagoa SecaLagoa Seca West
Total
Tonnes Au(g/t)
ContainedAu Ounces
8.703.10
--
6.51
207,66048,320
--
255,980
815,600699,600800,000
2,315,200
Tonnes Au(g/t)
ContainedAu Ounces
9.862.801.10
4.70
258,50063,00028,300
349,800
81,600--
1,600,000
1,681,600
Inferred Resources
Tonnes Au(g/t)
ContainedAu Ounces
6.35--
1.29
1.54
16,600--
66,400
83,000
(1)
(3)
(1)
(2)
(2)
(Taken from Snowden NI43-101 report as at 30 June 2007)
Notes:1. Using a cut-off of 2 g/t Au2. Using a cut-off of 0.8 g/t Au3. The Indicated Mineral Resources are inclusive of Mineral Reserves
Lagoa Seca West: Longitudinal Section
Current Reserve: 255,000oz Au = initial mine life of five yearsResource conversion: high grade good conversion expected Resource extension: open down-plunge and along strike
Underground Mining MethodWider mineralisation will be mined
by mechanized flat-backcut and fill while hand held mining
will be used in the more narrow high grade veins.
Mamão: Underground Mineralization and Extensional Targets
Andorinhas First Mover AdvantageConsolidating Land Position
Recent JV deals to earn 100% ownership on two additional major land packages
Triples Troy’s regional land position
Located within trucking distance of Andorinhas mill
Only processing mill in region
Regional airborne magneticsand radiometrics survey completed in Dec 2007
Andorinhas Iron OreHistoric rock sampling 67-69% Fe in hematite boulders with soil profile
Iron ore being profitably mined on neighbouringproperty
Completing scoping study
Could have dramatic economic impact at low capital cost
Sandstone Gold Mine, Australia
Profitable, mature projectContinued processing of stockpiled ore through to December 2008Virtually no ongoing capital requiredRegional exploration focused on identifying targets at depth
10,000m of drilling planned March-April 2008 – budget of ~US$2.6M
Nickel potential being tested by JV partner:Western Areas NL (ASX/TSX listed.
Troy retains gold discoveries and exposure to nickel potential
Comaplex Minerals (CMF – TSX)Contained
Ounces (oz)Comaplex
Interest (%)TonnesGrade
(g/t Au)
Meliadine WestIndicated 7,645,500 7.3 1,787,900 78%Inferred 4,882,700 8.8 1,385,400 78%Meliadine EastIndicated 1,030,400 7.8 259,100 50%Inferred 622,600 7.4 148,950 50%
Largest Shareholder:16.4% of common sharesC$46M market value
Meliadine Project - NunavutSignificant high-grade resource Upside along strike and at depth
Source: Comaplex Minerals Corp. (As of January 2008)
Complete Gold Processing PlantImmediately Available
Plant throughput:
Oxide Ore – 2.0Mtpa
Primary Ore – 0.75Mtpa
Conventional CIL plant with SAG Mill
Reduces capital cost and shortens construction timeline for new mine development
In storage in Cobar, NSW, East Australia
Compelling ValueTroy Today: ~A$200M Market Capitalization
Approximately 30% of Troy supported by strategic investments and cash
Andorinhas Gold ProjectAndorinhas Iron-Ore
Brazilian Land PackageGold Processing PlantSandstone Gold Mine
Exploration in Australia Exploration in Mongolia
Comaplex, other investments and cash
30%
70%~A$150M
~A$70M
Vision
Become a profitable mid-tier producer
How we will achieve it:Grow and extend production in the short termBuild portfolio of quality long-life assets in the medium termDevelop pipeline of exploration projects to sustain productionCapture value from existing strategic equity stakes
