Randgold Resources a profitable gold business

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1 Randgold Resources a profitable gold business BMO Global Metals & Mining Conference, Feb 2015 Sustainability LTI s in the group decreased by 18% year on year against a target of 10% Mali declared Ebola free on 18 January 2015 achievement assisted by Randgold who spearheaded and chaired the Mali Ebola Private Sector Mobilisation Group Malaria incidence rate 49.9% for, 5% lower than in 2013 Agribusiness projects across the group taking shape partnership proposal for Morila under review letter of intent for Kibali palm oil project community preparation at Tongon started construction of the agribusiness training centre at Loulo-Gounkoto Lost Time Injury Frequency Rate 1, LTIFR 0, Loulo Gounkoto Morila Tongon Kibali Group 1

2 Randgold Resources highlights Record gold production up 26% year on year No borrowings and cash on hand up 117% year on year Production and costs in line with annual guidance 20% increase in dividend proposed RCF doubled in size to $400 million LTIFR reduced by 18% year on year to 0.47 All mines except newly commissioned Kibali certified in safety and environment Mining depletion replaced at $1000/oz Randgold Resources summarised financials Q4 ended Year ended Average gold price received ($/oz) Gold sales* Total cash costs* Profit from mining activity* Exploration and corporate expenditure Profit for the period Profit attributable to equity shareholders Net cash generated from operations Cash and cash equivalents Gold on hand at period end # Group production (oz) Group sales* (oz) Group total cash cost per ounce* ($) Group cash operating cost per ounce* ($) Basic earnings per share ($) Refer to Q4 quarterly report for footnotes 2

3 Mali, Loulo-Gounkoto Complex update Production at guidance - increased by 10% year on year to oz and cash costs decreased from $704/oz to $672/oz Head grade milled increased from 4.6g/t to 5.0g/t year on year Recovery improved from 88.4% in 2013 to 90.2% in Record annual gold production (up 24%) from both underground mines Loulo/Gounkoto contributes on a 60:40 basis as per plan Mine plans to take over mining and development activities previously managed by underground mining contractor Gounkoto feasibility study confirms viability at $1000/oz and adds oz of reserves Loulo-Gounkoto Complex operating results Q4 ended Year ended Mining Tonnes mined (000) Ore tonnes mined (000) Milling Tonnes processed (000) Head grade milled (g/t) Recovery (%) Ounces produced Ounces sold Average price received ($/oz) Cash operating costs* ($/oz) Total cash costs* ($/oz) Gold on hand at period end # ($000) Profit from mining activity* ($000) Gold sales* ($000) Refer to Q4 quarterly report for footnotes 3

4 Loulo Yalea UG 200m Intersection (Yalea Structure) N Dip Change (Yalea Shear) Yalea South YDH g/t Purple Patch Yalea North Gold g/t >8g/t 4 8g/t 3 4g/t 0.5 3g/t <0.5g/t Target: Purple Patch Yalea Inferred plunge extension Drilling YDH269 Phase g/t Phase 2 YDH g/t Loulo Gara UG Gara Style S Fold Axes N LOCP g/t Warp Fold Axis 400m 200m 400m V=H Gold g/t >8g/t 4 8g/t 3 4g/t 0.5 3g/t <0.5g/t Drilling Phase 1 Phase 2 Gara Central Potential 4g/t LOCP g/t 4

5 Gounkoto underground feasibility IRR $1000/oz Underground feasibility delivers 4.7Mt at 6.0g/t for oz with upside Decline development starts 2018 out of north south pit and stoping ramp-up in 2020 Mining method long hole open stoping with backfill to support a 60ktpm to 70ktpm operation N Ore shoots open UG ore tonnage and grade profile Tonnes x g/t 10 Ore shoots open Gounkoto UG mine design Total Ore Tonnes Total Ore Grade Loulo-Gounkoto exploration Brownfields Exploration Yalea & Gara drilling confirms model and potential 400m south of deposits. Resource Conversion Drilling at Yalea & Gara to close production profile gap from Waraba Q4 trenching returned 2.38g/t (WTR05). Target removed. Yalea North Three targets identified for follow-up work. Toronto Detailed work identifies potential of 2.2 g/t Gounkoto SW Blind target potential, develop model for drill testing in Q1. Historical drill results include 12m at 1.12g/t from 40m and 28m at 0.82g/t from 152m. Gounkoto Exploration drilling in Q1 to further test down plunge extensions in MZ1 & MZ3. Target Deposit 5

6 Mali, Morila update A 22% decrease in production for the year reflected the combined decrease in throughput, head grade and recovery as the mine moves towards closure Production increased by 47% quarter on quarter to oz (Q3: oz) due to increase in head grade milled from 1.0g/t to 1.4g/t Higher grade ore processed from Pit4S pushback TSF retreatment is on track to start in September 2015 and is scheduled for completion in 2017 Morila continues to advance it s commercial agribusiness initiatives as part of its closure strategy Morila operating results Q4 ended Mining Tonnes mined (000) Ore tonnes mined (000) Milling Tonnes processed (000) Head grade milled (g/t) Recovery (%) Ounces produced Ounces sold Average price received ($/oz) Cash operating costs* ($/oz) Total cash costs* ($/oz) Profit/(loss) from mining activity* ($000) Attributable (40%) Gold sales* ($000) Ounces produced Ounces sold Gold on hand at period end # ($000) Profit/(loss) from mining activity* ($000) Refer to Q4 quarterly report for footnotes Year ended 6

7 Côte d Ivoire, Tongon update Annual production of oz was 3% down on previous year Tonnes processed increased year on year however head grade milled decreased in line with the mining plan Recovery improved in Q4 to +80% (Q3: 78.8%) 2 key capital projects in Crusher circuit upgrade commissioned in Q4 and debugging and optimisation with the supplier is ongoing Flotation circuit upgrade First phase completed and commissioned and Phase 2 installation is scheduled for completion and commissioning by quarter end In-pit reserve addition replaces depletion though mining Tongon operating results Q4 ended Mining Tonnes mined (000) Ore tonnes mined (000) Milling Tonnes processed (000) Head grade milled (g/t) Recovery (%) Ounces produced Ounces sold Average price received ($/oz) Cash operating costs* ($/oz) Total cash costs* ($/oz) Gold on hand at period end # ($000) Profit from mining activity* ($000) Gold sales* ($000) Refer to Q4 quarterly report for footnotes Year ended 7

8 Tongon timeline to operational efficiency Crushing lines belt intervention and changeout Tonnes treated rate per hour CRUSHER CHANGEOUT FLOTATION UPGRADE Complete crusher and conveyor installation Installation of crushers 3&4 1 st stream of rougher flotation Installation of 1 st set of CH 660 s - crushers 5&6 Forecast 2 nd stream of rougher flotation Tongon depletion replaced by additional ore depletion replaced by additional ore within the pit Further infill drilling adding upside Deeper drilling at base of $1000/oz pit highlights zones of wider/stronger mineralisation TND g/t 3.03g/t incl 3.72g/t TND g/t 1.52g/t TND g/t incl 3.13g/t 1.01g/t TND g/t 4.51g/t 1.83g/t 1.05g/t 1.43g/t 2.36g/t TND g/t incl 8.96g/t TND g/t 1.58g/t incl 3.20g/t 8

9 trenching and pitting confirms mineralization over 1.5 Km s at Fonondara target Tongon regional exploration Tengrela South Diaouala Nielle Tongon near mine targets Tiorotieri Boundiali Mankono Fapoha Sud Fapoha Nord Landounou Dabakala N Kouassi-Datekro Tiorotieri Diaouala Tongon Didevi Nielle Bongobo Toumodi Affery Agnansue Akoupe Boundiali Fapoha N/S Djekanbrou Adzope Abidjan Attobrou Mankono 50km 300km Mankono permit trenching returned 1.25g/t incl 3.05g/t in the fold limb and 1.30g/t incl 1.82g/t and 1.33g/t Boundiali permit trenching and pitting confirms mineralisation over 1.5km at Fonondara target DRC, Kibali update Significant improvement in recovery and throughput as the mine ramped up and achieved design parameters by year end oz at 3.7g/t produced in first full year of production at a total cash cost of $573/oz Since the middle of the year Kibali has been self funding Mofu, first satellite pit, contributed to the increase in ore tonnes mined The increase in hydropower contributed to a reduction in the cost of power to $0.20/kWh in Q4 with hydro utilisation peaking at 17MW Phase I capital complete and contractors demobilised Phase II comprising development of UG and second hydro station ahead of plan 9

10 Kibali operating results Q4 ended Mining Tonnes mined (000) Ore tonnes mined (000) Milling Tonnes processed (000) Head grade milled (g/t) Recovery (%) Ounces produced Ounces sold Average price received ($/oz) Cash operating costs* ($/oz) Total cash costs* ($/oz) Profit from mining activity* ($000) Attributable (45%) Gold sales* ($000) Ounces produced Ounces sold Gold on hand at period end # ($000) Profit from mining activity* ($000) Refer to Q4 quarterly report for footnotes Year ended Kibali underground development Open Pit Exhaust Shaft Twin Declines Refrigeration Shaft Main Shaft Mining sequence Orepass Haulage level Crusher and Settlers Shaft Bottom 800m Decline development and shaft sinking remains ahead of plan Blasting of first stope took place in Q4 Focus now on ramping up ore stoping and development of ventilation infrastructure 10

11 Kibali KZ Structure host to over 20Moz of resources Ongoing analysis of KZ structure highlights potential in greenfields and brownfields portfolios Gurumbwa and Megi trade-off studies to drive development schedule Long strike lengths untested below 50m along KZ structure Team now ground-truthing targets for accurate prioritisation Work on priority target at Kalimva- Ikamva identifies new zone of mineralisation within 3km x 2km KCD-type setting N Mofu S2 structure Gorumbwa 2km KCD Megi Kalimva- Ikamva 50m Depth Gaps in drilling Pakaka Exploration is core to Randgold s growth strategy Ongoing feasibility points to new options at Massawa Senegal New targets generated and new permits acquired in Côte d Ivoire Resource conversion programmes at Loulo, Gounkoto and Kibali Mali Côte d Ivoire AFRICA DRC Kenya Tanzania Generative team driving research on major systems across the continent Drilling in progress on conversion programmes at Loulo and Kibali Reviewing opportunities for expansion of footprint across Africa Delivery of Gounkoto feasibility programme with upside 11 separate teams working across portfolio Joint ventures in favourable geological and structural settings Reviewing prospectivity Expanding around margins our footprint of the Congo Craton 11

12 Consolidated group production 5 year plan Cash cost $/oz 1400 Production oz 000 Capex $m Grade g/t Grade g/t , Total cash cost/oz Capex $m Morila Loulo-Gounkoto Tongon Kibali Total cash cost/oz Capex Randgold consolidates 100% of Loulo, Gounkoto and Tongon, 40% of Morila and 45% of Kibali in the consolidated non-gaap measures. 3 2,5 2 1,5 1 0,5 0 Operating margins Companies have been under increased pressure to cut costs as the gold price continues to fall More companies will likely face significant financial hardship if the gold price stays at current levels in the near term recent drop in oil and strengthening US$ to provide some relief? Gold production cost vs gold price Source: Scotiabank equity research 12

13 Top 20 gold companies: EBITDA vs Total and Net Debt since 2001 While the aggregate EBITDA has grown substantially, there have been commensurate increases in both capex spending and debt levels Source: RBC Randgold Resources share price compared with peer group 5 year relative share price performance Randgold 13

14 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. 14