Gold extraction an instrument for economic growth in the DRC

Transcription

1 Gold extraction an instrument for economic growth in the DRC Louis Watum General Manager Kibali Gold Mine Province Orientale, DRC Kibali facts Shareholding 10% Sokimo Investment Estimated costs in US$ million before escalation, contingencies and provisions % AngloGold Ashanti 45% Randgold Resources Production actual and forecast US$/oz Production 700 Oz actual Q2 forecast Grade g/t Production Total cash cost/oz Grade Expenditure tophase Phase incl acquisition Reserves and Resources Moz Total acquired Reserves Resources 1

2 Operational update Underground declines and shaft sinking The shaft has reached a depth of 676.6m and is scheduled for handover in m of off shaft lateral development completed ahead of plan UG development intersected the orebody in Q2 Underground development Headgear Operational update Processing Plant Completion of the secondary crushing, flotation and concentrate recovery circuits 2

3 Operational update Nzoro ll hydropower plant construction completed 4 turbines commissioned and 2 operational - currently generating 12MW Synchronisation of power produced from Nzoro 2 with diesel power plant in progress Views from canal of forebay structure and control room Views of Nzoro river dammed up and diversion into Intake View from canal of intake structure and control room Entrance ramp and cable rack for main power output cables Turbine installations on lower level Operational update Kibali employees and business partners Total current Kibali employees = Expatriate numbers will continue to decrease as demobilisation of subcontractors continues More than 80 Congolese companies have been involved in the construction and development of the Kibali gold mine Relationship with contractors positively maintained with continuation of weekly meetings by HR teams Union committee elections completed with 18 new delegates and formal quarterly meetings held Congolese Nationals 83% 3

4 Kibali Resettlement Action Plan Roman Catholic Church now completed Keys to all house have been handed over by construction companies All compensation claims related to the resettlement plan have been finalised Community jobs such as plant waste management, stone pitching, airport maintenance and general housekeeping continue Our impact employment From artisanal mining to a world class mine At peak construction project employed more than people (2012) Currently the mine employs people 4

5 Our impact communities Relocation of people THEN and NOW Our impact communities Relocation of people THEN and NOW 5

6 Our impact agribusiness Livelihood strategy Gardening activities with the community Training into agriculture activities offered for capacity building 21 Co-ops operational Membership of more than 400 people Activities Maize mills Fish ponds Piggery Production of honey Various crops Our impact health Public health Handover of medical equipment - 2 containers in 2010, 2 in 2013 and 2 planned for 2014 Old mine clinic in the handover process Waste management initiative through an incentivised competition Pride of Ownership 5 clinics and health posts, part of the RAP Handover of medical equipment Provincial Minister of Health receives keys for Centre Hospital Kibali 6

7 Our impact education 15 schools build as part of the RAP project 3 schools built though community projects Capacity building through funding a printing house Stationaries distributed to more than 5000 pupils in 2010 Support to orphanages through payment of school fees Mosquito nets distributed to Adia Lemi boarding school A tertiary institution built (Watsa ISP) Durba

8 Durba 2014 Our impact: infrastructures Roads THEN and NOW Road network > 350 km Doko Aru: 180 km Doko Nzoro: 34 km Aru Ariwara: 45 km Doko Watsa: 14 km Kokiza: 90 km Infrastructure: The road between Arua and the site (Doko) upgraded 8

9 Kibali Gold Mine benefits to State at US$ 1300/oz gold price DRC Government (SOKIMO) 10% carried LOM taxes, duties, dividends Royalties Dividends to Investors Corporate tax Other taxes Based on 2011 Feasibility Study Dividends to State Financial Contribution 2010 to 2013 US$ 000 Visible contributions: $ Non visible contributions: $ Salaires: $1 310 Taxes & Permits: $5 025 Payement aux Fournisseurs: $ Nzoro Power line Road ARU - Ariwara Road Nothern By-pass road Southern By-pass road Direct Community Projects Doko - ARU road Kokiza (Houses only) Aggregates Prevention (HIV & Malaria) NATIONAL US$ US$ US$ US$ 263 US$ US$ 35,856 US$ US$ US$ 367 Taxes and Permits: $ PROVINCIAL Salaires: $ Taxes and Permits: $ Payement aux Fournisseurs: $ LOCAL 9

10 DRC economic growth 2004 to 2014 Real GDP growth Source: AfDB, Statistics Dept AEO Estimates (e), projections (p) Challenges Poor capacity from local community to take advantage of opportunities Escalating expectations placed on Kibali: more jobs and business opportunities Poor capacity of local authorities to manage day to day administration of the project area Increased cases of illegal mining on our permit area TVA $80 million of unreimbursed VAT - excessive delays in the claim process place a financial burden on our operations Gold price US$/oz Nov 2012: $1 750 Oct 2014: $

11 Exploration and discovery creates value Value production Brownfields exploration: further discovery Delivery development exploration discovery Time Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as will, plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Assumptions upon which such forward-looking statements are based are in turn based on factors and events that are not within the control of Randgold Resources Limited ( Randgold ) and there is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Randgold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to mining operations, including political risks and instability and risks related to international operations, actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in Randgold s filings with the US Securities and Exchange Commission (the SEC ). Although Randgold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Randgold does not undertake to update any forward-looking statements herein, except in accordance with applicable securities laws. CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their filings with the SEC, to disclose only proven and probable ore reserves. We use certain terms in this release, such as resources, that the SEC does not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned not to assume that all or any parts of our resources will ever be converted into reserves which qualify as proven and probable reserves for the purposes of the SEC s Industry Guide number 7. Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As such numbers are reported to the second significant digit. They are equivalent to National Instrument Mineral resources are reported at a cut-off grade based on a gold price of US$1 500/oz. The reporting of mineral reserves is also in accordance with Industry Guide 7. Pit optimisations are carried out at a gold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at a cut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on a gold price of US$1 000/oz. Dilution and ore loss are incorporated into the calculation of reserves. Cautionary note to US investors: The United States Securities and Exchange Commission (the SEC) permits mining companies, in their filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in this annual report such as resources, that the SEC does not recognise and strictly prohibits the company from including in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company s resources will ever be converted into reserves which qualify as proven and probable reserves for the purposes of the SEC s Industry Guide number 7. 11