DELIVERING SUSTAINABLE RETURNS. BMO Global Metals & Mining Conference 2018

Transcription

1 DELIVERING SUSTAINABLE RETURNS BMO Global Metals & Mining Conference 2018

2 DISCLOSURES Forward Looking Statements: There are risks associated with an investment in the shares of Centamin plc ( Centamin or the Company ). Recipients of this presentation should review the risk factors and other disclosures regarding Centamin referred to in the section entitled Principal risks affecting the Centamin Group in (i) our most recent Annual Information Form; and (ii) our Management Discussion & Analysis reports, in each case available at This presentation contains "forward-looking statements" (which include forward-looking information within the meaning of Canadian securities legislation) which may include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries, affiliated companies, its projects (including the Sukari mine), the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral reserve and resource estimates, the timing and amount of estimated future production, revenues, margins, costs of production, estimates of initial capital, sustaining capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, foreign exchange risks, governmental regulation of mining and exploration operations, timing and receipt of approvals, consents and permits under applicable mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage and regulatory matters. These forward-looking statements are provided for the purposes of assisting the reader in understanding the Company s financial position and results of operations as at and for the periods ended on certain dates, and to present information about management s current expectations and plans relating to the future. Readers are cautioned that forward-looking statements may not be appropriate for other purposes than outlined in this presentation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "hopes", aims, assumes, seeks, targets, projects, "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or may be identified by statements to the effect that certain actions, events or results "may", "could", "would", should, "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and a variety of material factors (many of which are beyond the Company s control) which may cause the actual results, performance or achievements of the Company, its subsidiaries and affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, future price of gold; general business, economic, competitive, political and social uncertainties; the actual results of current exploration and development activities; conclusions of economic evaluations and studies; fluctuations in the value of the US dollar relative to the local currencies in the jurisdictions of the Company s key projects; changes in project parameters as plans continue to be refined; possible variations of ore grade or projected recovery rates; accidents, labour disputes or slow-downs and other risks of the mining industry; climatic conditions; political instability, insurrection or war; civil unrest or armed assault; labour force availability and turnover; delays in obtaining financing or governmental approvals or in the completion of exploration and development activities. The reader is also cautioned that the foregoing list of factors is not exhaustive. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and, except as required by applicable law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. There can be no assurance that forward-looking 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 onforward-looking statements. Competent Persons: Information in this presentation which relates to exploration, geology, sampling and drilling is based on information compiled by geologist, Mr Norm Baillie, who, as an accredited Chartered Professional Geologist and Manager through the Geological Society of the United Kingdom and the Australasian Institute of Mining and Metallurgy, is an Competent Person for this purpose and a Qualified Person as defined in National Instrument of the Canadian Securities Administrators. Refer to the latest quarterly results entitled Q Preliminary Production Results, 2018 Production Guidance and Mineral Reserve and Resource Update (effective 30 June 2017) and dated 10 January 2018 and filed on SEDAR at for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, or other relevant issues. 2

3 PHILOSOPHY: GROWTH THROUGH CASH FLOW Maintaining a consistent corporate strategy TRACK RECORD Technical expertise: Self-performing approach to operations Sukari staged expansion delivered on budget Strong production and cost track record Operating Mine Exploration Project NEXT-STAGE GROWTH Significant growth potential at Sukari from existing operations and Cleopatra Medium & long-term growth potential in West Africa ASSET QUALITY Top 20 global mine (2018F production: 580koz) >20 year mine life; orebody is open at depth Low-cost growth potential PRIORITISING SHAREHOLDER RETURNS Responsible custodians: excess cash will be returned US$144m total declared dividend payout for % of free cash flow FREE CASH FLOW Low cost producer (2018F AISC $770/oz) Ongoing focus on cost discipline Maximising strength throughout the cycle 3

4 Production (koz) US$/oz PROVEN TRACK RECORD First mover advantage Building Egypt s gold industry Centamin has established a strong track record of delivering high margin growth throughout the cycle and changing political environment. 700 First gold pour Commenced underground mining Fuel subsidy removed Plant expansion to 10Mtpa Exceeded 500koz pa target run-rate 1, Commissioned Stage 1 4Mtpa plant Arab Spring 1,600 1, , Production Cash Cost Average realised gold price 1, F Mubarak Army Morsi Mansour Sisi Sisi 0 4

5 Tonnes Processed (Mt) US cents per share 2017 HIGHLIGHTS Record operational performance Beat production guidance: 544,658oz > 540,000oz Beat cash cost guidance: $554/oz < $580/oz Met AISC guidance: $790/oz = $790/oz 2018 guidance 580,000/oz at $555/oz cash cost and US$770/oz AISC Record plant throughput: 12.0Mtpa > 11.75Mt base 2018 guidance 12.3Mt Excellent underground performance: 1.14Mt ore mined at 8.3g/t 2018 guidance for 1.3Mt underground ore mined at 7.2g/t Record open pit production 70.9Mt. Mined grade 0.66g/t (excluding dump leach material = 0.79g/t) 2018 guidance for 17.7Mt open pit ore mined at 0.7g/t. Mill feed 11Mt at 0.95g/t Full year dividend: 12.5 cents, including 10.0 cents proposed final dividend), 100% of free cash flow SUSTAINABLE DIVIDEND STREAM % 8.0% % % % % Full Year Dividend Interim Dividend Yield (as at 31 Dec) ORE PROCESSED AND FEED GRADE Plant Throughput (Mt) Head Grade (g/t) 5

6 BOARD AND SENIOR MANAGEMENT STRUCTURE Governance and leadership BOARD OF DIRECTORS Josef El-Raghy Executive Chairman Independent Non -Executive Chairman by end Q Succession process underway. Intention to announce Non-Exec Chairman by end Q2 with Josef El-Raghy an orderly handover until 2018 year end Ross Jerrard CFO Andrew Pardey CEO G. Edward Haslam Sr Independent NED Mark Bankes Independent NED Mark Arnesen Independent NED Alison Baker Independent NED Trevor Schultz NED (1) SENIOR MANAGEMENT Youssef El-Raghy GM Egyptian Operations Mark Morcombe COO Jonathan Stephens CDO Norm Bailie Group Exploration Manager Darren Le Masurier Company Secretary Alexandra Carse Investor Relations (1) As of 19 Feb 2018, Trevor Schultz has announced his intention to retire at the upcoming AGM, held 26 March

7 OPERATIONAL RESULTS

8 Sukari LTIFR per 200,000 hours HEALTH AND SAFETY Our number one priority 2,500 total workforce, including contractors and head office <1% are expatriates Health and safety training is mandatory and critical to how we operate, along with continued professional development training promoting opportunity and ensuring operational excellence Downward trend in LTIFR rate, as operations have scaled up

9 2017 PRODUCTION SUMMARY Established momentum Quarter on Quarter Year on Year Q Q Open Pit Total Mined ('000 tonnes) 17,647 18,602 70,870 62,238 Open Pit Ore Mined ('000 tonnes) 5,726 4,825 16,090 10,949 Open Pit Mined Grade (g/t) Underground Ore Mined ('000 tonnes) ,144 1,019 Underground Mined Grade (g/t) Ore Processed ('000 tonnes) 3,072 2,996 12,032 11,559 Head Grade (g/t) Gold Recovery (%) 88.5% 88.3% 88.1% 89.4% Dump Leach Gold Production (ounces) 3,119 1,692 8,597 9,872 Total Gold Production (ounces) 154, , , ,036 Gold Sold (ounces) 153, , , ,630 Cash Cost of Production (1) (US$/oz) All-in Sustaining Cost (2) (US$/oz) (1) per ounce of production (2) per ounce sold 9

10 Grade (g/t) Tonnes Mined (Mt) OPEN PIT OPERATIONS 20 year life of mine Record material movement of 70.9Mt, 14% above 62.2Mt in 2016 Strip ratio 3.4x including low-grade material, down from 4.7x in 2016 Ore mined 16.1Mt at 0.66g/t (12.1Mt at 0.78g/t excluding dump leach) Open-pit feed grade = 0.89g/t 2018: Steady state 70Mt, consistent plant feed OPEN PIT ORE VS WASTE MINED Ore Mined Waste Mined Strip Ratio OPEN PIT MINING COST US$ PER TONNE MINED OPEN PIT ORE MINED GRADE AND FEED GRADE Mined Grade Feed Grade 2017 In-Pit Reserve Grade 10

11 Mined Tonnes (kt) Mined Grade (g/t) UNDERGROUND OPERATIONS Delivering more tonnes at lower costs 2017 ore mined 1.14Mt at 8.3g/t, 60:40 split: Record production from stoping, 684kt at 8.9g/t Ore from development 461kt at 7.4g/t Ptah and Horus declines progressing at planned rates Horus decline accessed new lower Amun levels and will access the upper Horus zone and lateral Osiris zones 2018: Scheduling 1.3Mt of ore mined at 7.2g/t, 65:35 split UNDERGROUND ORE MINED AND AVERAGE GRADE 1,400 1,200 1, Stoped Ore Development Ore Mined Grade (RHS) UNDERGROUND COST US$ PER TONNE MINED TOTAL DEVELOPMENT METRES (MINERALISED + WASTE) ,000 8,000 6,000 4,000 2, Underground stoping cost Overall underground cost Development Metres Advanced 11

12 Tonnes Processed (Mt) Plant Productivity (tph) PROCESSING PLANT Maximizing productivity Record plant throughput of 12.0Mt, 4% above 11.6Mt in 2016 Overall 2017 head grade 1.57 g/t, in line with guidance Processing cost, US$12.4/t for 2017, up slightly on 2016 (US$12.2/t) on higher fuel and reagent costs 2017 recovery 88.1% 2018: Increased throughput to 12.3Mt with the installation of fourth secondary crusher; focus on improving recoveries with increased throughput PROCESSING COST US$ PER TONNE MILLED PLANT PERFORMANCE 1,600 1,400 1,200 1, Productivity Recovery (RHS) ORE PROCESSED AND FEED GRADE 90% 88% 86% 84% 82% 80% Plant Throughput (Mt) Head Grade (g/t)

13 FINANCIAL RESULTS

14 2017 FINANCIAL OVERVIEW Focus on cash flow generation US$554/oz cash cost of production (below guidance $580/oz) Overall mine production costs very well controlled throughout the year and in line with plan Increase on 2016 (US$513/oz) reflects higher material movements and fuel and reagent costs US$790/oz AISC (in line with guidance) Increase on 2016 reflects increase in cash cost plus scheduled increase in sustaining capital for fleet renewal programme Free cash flow of US$142 million Decrease on 2016 (US$242 million) almost entirely due to first full year of profit share payments SUKARI CASH COST OF PRODUCTION US$554/OZ G&A $35/oz Processing $269/oz OP mining $210/oz UG mining $40/oz Mine Production Costs US$M US$/t Open Pit Mining Cash and liquid assets* of US$418 million at year end Dividend of US$184 million paid during the year Final dividend of 10 US cents 2017 payout ~100% of free cash flow Underground Mining - stoping Processing G&A 19.3 Free cash flow in a non-gaap measure defined as net cash generated by operating activities, less net cash used in investing activities, less EMRA profit share paid (cash) * Cash and liquid assets is a non-gaap measure defined as cash and equivalents, bullion on hand, gold sales receivables and available-for-sale financial assets 14

15 FOCUS ON COST CONTROL Disciplined cost reform FY2017 COST BREAKDOWN 2017 INITIATIVES Other 1% AUD 17% EGP* 26% USD 56% Other 10% Labour 9% Fuel 16% Contractors 26% Consumables 39% Initiatives resulted in meaningful improvements in cost management and ~$20m reduction in working capital Strict financial discipline: removing duplication and redundant practices and implementing technical improvements Overhaul of financial systems and processes to improve quality of data and decision making New cost measurement and tracking systems introduced across expense analysis, fuel consumption, capex reconciliation, contracts and tender management and cash flow / working capital analysis Introduction of an inventory management and reduction plan to reduce stores levels including the roll out of ABC analysis within inventory management Ongoing and consistent promotion of cost-control culture within the business and across all levels Contracts scorecard updated with reconciliation of all open, closed and targeted for completion contracts against adjusted cost base targets 2018 initiatives include the completion of work programmes detailed above and the upgrade of procurement and inventory software. 15

16 2017 ACTUAL vs GUIDANCE Delivered on our promises 2017 Actual 2017 Guidance Variance Gold Sales koz % Realised gold price US$/oz 1,261 1,250 Revenue US$m % Cash Cost of Production US$/oz (1) (4%) Cash Cost of Production US$m (3%) Royalty US$m % Sustaining capex - underground US$m % Sustaining capex - other US$m (0%) Corporate G&A US$m (2%) AISC US$/oz (2) % AISC US$m % (1) Cash cost per ounce of production (2) AISC per ounce sold 16

17 2017 FINANCIAL HIGHLIGHTS Transitioned into profit share Quarter on Quarter Year on Year Q Q Revenue US$m EBITDA US$m Profit before tax US$m Net profit US$m Basic EPS (after profit share) US cents Net cash from operations US$m Sustaining capital expenditure (1) US$m Non-sustaining capital expenditure US$m Non-Sukari Exploration US$m Profit share to EMRA US$m Free Cash Flow (2) US$m Cash and equivalents US$m Cash and liquid assets (3) US$m (1) Comprised of underground development and other sustaining capital including exploration at Sukari other than Cleopatra (non-sustaining capital expenditure) (2) A non-gaap financial measure, defined as net cash generated from operating activities, less net cash used in investing activities, less EMRA profit share payments (3) A non-gaap financial measure, defined as: cash and cash equivalents, bullion on hand, gold sales receivables and available-for-sale financial assets 17

18 US$/oz ESTABLISHED LOW COST PROFILE Strength throughout the cycle ALL-IN SUSTAINING COST DYNAMICS CONSISTENTLY LOW COSTS (2) % change Mine production costs US$m % Movement in inventory US$m 2.5 (5.9) Royalties US$m % Corporate and administration US$m (6%) Rehabilitation costs US$m % Sustaining capex - underground development US$m (3%) 1,500 1,300 1, Guidance Cash Costs AISC Realised Gold Price Sustaining capex - other US$m % By-product credit US$m (1.2) (1.1) 1% All-in-sustaining costs US$m % Gold sold oz 539, ,630 (1%) Maximising margins 2017 AISC margin of $471/oz AISC per ounce sold US$/oz % 2018 Guidance: $555/oz cash costs and $770/oz all-in sustaining cost 18

19 INVESTING IN THE FUTURE Disciplined capital allocation All capital and operating costs Sukari have been recovered leading to first full year of profit share with our government partner Scheduled 16% increase in other sustaining capex forecast in 2018 due to cost effective fleet rebuild programme, completion of tailings storage facility upgrade and installation of fourth secondary crusher. Non-sustaining capex is results driven budget calls for increased underground exploration at Cleopatra and prospective new projects in Côte d Ivoire, Doropo and ABC $107m $135m Egypt Cote d'ivoire 250 Burkina Faso Other sustaining capex 100 Sukari u/g development 50 Sukari u/g exploration F 2019F F Expansion capex Sustaining Non-sustaining 19

20 CASH GENERATION Our simple model CASH BRIDGE 2016 TO Cash at bank FY2016 Revenue Mine production and recurring operating costs Decrease in working capital Tax, finance and other changes Capital expenditure Exploration and evaluation Profit share payments Dividend payment Cash at bank FY2017 FREE CASH FLOW BRIDGE 2016 TO Free Cash Flow FY2016 Decrease in revenue Increase in group operating costs Relative working capital movements Decrease in tax, Increase in capital Decrease in finance and other expenditure exploration spend changes Free cash flow in a non-gaap measure defined as Net cash generated by operating activities, less net cash used in investing activities, less EMRA profit share paid (cash) Increase in profit share payments Free Cash Flow FY

21 DELIVERING STAKEHOLDER RETURNS Local contribution 2017 PRE-ROYALTY OPERATING CASH FLOW ($379M) CONTRIBUTION TO EGYPT Direct payments to State $132m Direct financial contribution to ARE/EMRA to date $275m ($116m royalty, $159m profit share) Royalty payments, $20m, 5% Royalty terms 3% NSR Free cash flow, $142m, 38% Profit share payments, $112m, 29% Profit Share Full recovery of qualifying costs incurred 50% of revenue net of all costs 40% first 2 years (to June 2018) 45% for next 2 years (to June 2020) Dividend to Centamin shareholders $144m Capital investment, $105m, 28% Other direct / indirect taxes Egyptian Employees None >1,350 Egyptian Suppliers >270 Egyptian company suppliers 21

22 US cents per share PRIORITISING SHAREHOLDER RETURNS Maintaining a sustainable dividend stream DIVIDEND HISTORY SUSTAINABLE DIVIDEND STREAM % 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Two strands to dividend policy: Minimum of 30% of sustaining free cash flow before growth capital Cash in excess of $ m not needed for growth will be returned Proposed full-year dividend represents 100% of free cash flow Total 2017 pay-out $144m Returned $246m to shareholders over 3 years Subject to AGM approval, proposed $390m paid out over 4 years 5.8% proposed div yield, share price 31 Dec % Full Year Dividend Interim Dividend Yield (as at 31 Dec) 2017 includes final dividend of 10 US cents as declared, subject to shareholder approval Competitive vs Market, Sector and Sub-Sector Peer average dividend yield: FTSE % FTSE 350 Mining 2.8% GDX - Gold Miners 1.0% 22

23 CASH FLOW. and into 2018 All-in sustaining cash-flow Prioritised dividend Growth capital "Excess" cash flow All-in sustaining cash-flow Working capital release Non-cash adj. / other income Growth capital Full year dividend All-in sustaining cash-flow Prioritised dividend Growth capital "Excess" cash flow 2017 GUIDANCE (1) 2017 ACTUAL (2) 2018 CASE STUDY, based guidance (3) $280m Net growth capital $250m $250m Exploration Dividend Profit Share Payment Post Sustaining Cash Flow (1) Illustration presented during 2017 based on 2017 guidance as per 2017 Capital Markets Day, 1 February 2017 and a gold price of US$1,250/oz (2) Prioritised dividend represents minimum 30% of free cash flow after Profit Share, as set out in the dividend policy (3) Assuming 2018 guidance and gold price US$1,250/oz. All-in sustaining cash flow of $280 million is net of corporate costs and royalties. Profit share rate increases from 40% to 45% on 1 July 2018, effective 42.5% shown for illustrative purposes (4) Actual all-in sustaining cash flow represents revenue less reported all-in sustaining costs 23

24 ORGANIC GROWTH

25 NEAR TERM PRODUCTION GROWTH Ramping up Amun/Ptah underground tonnage 2018 target mining rate = 1.3Mt, a 14% increase on 2017, driven by increase in stoped tonnes 65% of ore from stoping Development c. 3yrs in advance of stoping Guidance grade = 7.2g/t 2017 Guidance = 7.3g/t 2017 Actual = 8.3g/t N 2017 stoping 2018 planned stoping 2018 decline development 25

26 MEDIUM TERM PRODUCTION GROWTH Cleopatra Current drilling and development 2018 drill programme N Analysis of high grade distribution Recent downhole gold assays Intersected mineralised structures and porphyry contact Drill targets: underexplored Western Contact Cleopatra decline has been engineered to mine 1Mtpa 26

27 SUKARI LONG TERM SUSTAINABILITY Underground resource upgrade Underground M&I resource (1) : 6.8g/t, 7.4Mt. Current reserve supports approximately a 5yr LOM at current mining rates. Increased underground reserves in excess of mine depletion over two years Orebody open at depth 2018: 4 exploration rigs focussed on underground reserve and resource expansion. N Looking North (1) Updated JORC resource statement as at 30 June km 27

28 SUKARI LONG TERM SUSTAINABILITY Unlocking the underground: resource growth MEDIUM TERM GROWTH CLEOPATRA Exploration decline 8.2g/t 4.4g/t 6.9g/t 13g/t 11.8g/t 14.1g/t 5.9g/t 20.1g/t 8.5g/t 40.1g/t 569.5g/t 10.2g/t 7.7g/t 6.1g/t 45.8g/t 11.8g/t 86.8g/t BAST/ The Gap Key target for reserve and resource expansion 8.8g/t 141g/t 419g/t 71.5g/t 163.2g/t 163.7g/t 180.4g/t N Final open pit c.1,550mt ore + waste Amun Looking North UG grade (g/t Au) PTAH g/t 5.3g/t 20.2g/t 21.1g/t 24.3g/t 6.9g/t 4.5g/t 8g/t 9.1g/t 39.6g/t 72.6g/t 20.8g/t NEAR TERM GROWTH AMUN & HORUS Initial focus area for mining 41.4g/t 23.2g/t 31.9g/t 7.2g/t 55.3g/t 59.9g/t 8.8g/t 13.2g/t 134g/t 337.2g/t 79.5g/t 49.2g/t km

29 WEST AFRICA Exploration led growth District scale exploration >4,500km 2 total licence holding + c.2,500km 2 under application New discovery at ABC Project/ Archaean-Birimian Contact Outcropping 12km gold mineralised structure. Greenfield exploration work commenced in 2017 Reconnaissance mapping of the permit area and geochemical sampling identified Lolosso The licence holding includes 80km strike on the Archaean margins January 2018 Doropo Project resource: Burkina Faso Near term reserve growth potential at Konkera following targeted drill programme throughout Moz at 1.3g/t Indicated 0.9Moz at 1.2g/t Inferred Positive initial metallurgical tests Main prospects are within a 5km radius Structurally-controlled mineralisation within granitoids Multiple high-grade and near surface 2018 prospects along highly prospective belts 29

30 CÔTE D IVOIRE Doropo Project Concentrated resource, within a 5km radius Remains open Significant resource expansion potential ABC Project Archaean-Birimian Contact Project Initial drill intersections 30

31 ORGANIC GROWTH MODEL Internally funded out of cash flow Growth funded from free cash flow after returns to shareholders Delivering Stakeholder Returns 2018 GUIDANCE Sukari Gold Mine, Egypt 580koz Au at $770/oz AISC Investing in future growth NEAR TERM Sukari underground Completion of Cleopatra 1Mtpa decline development; Ongoing exploration at Cleo, Amun, Ptah, Horus, Bast zones MEDIUM TERM Doropo Project, Cote d Ivoire Further resource expansion and internal feasibility work District Scale Greenfield Exploration Portfolio Successful exploration has yield new discoveries each year with multiple highly prospective targets identified Maximising returns on investment 31

32 STRATEGIC OBJECTIVES Maintaining a consistent strategy Long-term sustainability Large-scale, long-life, low-cost asset Strong margins and return on capital throughout cycle Debt-free, cash and liquid assets of $418 million (31 December 2017) Prioritising stakeholder returns Focus on cash flow generation Profit share with our partners, EMRA Dividends take first priority on uses of free cash flow Optimise Sukari Scope to increase: high-grade underground production; plant throughput and open-pit mining rate Minimal non-sustaining growth capex requirements Greenfields growth Leading land-position in West African greenstone belt Updated resource declared in Cote d Ivoire Significant gold deposits identified in Burkina Faso 32

33 APPENDIX

34 SUKARI RESERVES Sukari Open Pit Mineral Reserve Tonnes (Mt) Grade (g/t Au) Gold (Moz) Tonnes (Mt) Grade (g/t Au) Proven Probable Stockpile Total Gold (Moz) The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant Totals may not equal the sum of the components due to rounding adjustments Based on mined surface as at 30 June 2017 and a gold price of US$1,300 per ounce Cut-off grades (gold): CIL oxide 0.35g/t, CIL transitional 0.35g/t, CIL sulphide 0.35g/t, Dump Leach oxide 0.2g/t Designed underground reserves detailed below do not form part of the open pit reserve Sukari Underground Mineral Reserve Tonnes ( 000 t) Grade (g/t Au) Gold ( 000 oz) Tonnes ( 000 t) Grade (g/t Au) Proven Probable Sub-total Development (Probable) TOTAL Gold ( 000 oz) The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant Totals may not equal the sum of the components due to rounding adjustments Based on underground mine workings as at 30 June 2017 Long Hole Stopes for reserves estimation are designed using a 3.0g/t elevated cut-off and mining dilution applied at 0.4g/t as all stopes are located in mineralised porphyry and 10% mining loss is then assumed to allow for stope bridges and material left in stopes after mining. For shallow-dipping long hole stopes a 50% mining loss has been assumed Room and Pillar Stopes for reserves estimation are designed using a 3.0g/t elevated cut-off and mining dilution applied at 0.8g/t as all stopes are located in mineralised porphyry and 40% mining loss is then assumed to allow for non-recovered pillars and material left in stopes after mining Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves 34

35 SUKARI RESOURCES Sukari Total Mineral Resource Measured Indicated Total Measured + Indicated Inferred Cut-off Tonnes Grade Tonnes Grade Tonnes Grade Gold Tonnes Grade Gold g/t Au (Mt) (g/t Au) (Mt) (g/t Au) (Mt) (g/t Au) (Moz) (Mt) (g/t Au) (Moz) The effective date of the reserve and resource statement is 30 June 2017 Totals may not equal the sum of the components due to rounding adjustments The Mineral Resource estimate is based on the open pit mined surface as at 30 June 2017 and adjusted for underground mine workings as at 30 June 2017 All available assays as at 30 June 2017 Resource data set comprises 311,419 two metre down hole composites and surface rock chip samples Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction Measured Resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, Indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and Inferred resources exist in areas of broader spaced drilling. The resource model extends from 9700mN to 12200mN and to a maximum depth of 0mRL (a maximum depth of approximately 1,000 metres below wadi level) Sukari Underground Mineral Resource (included within the total resource above) Tonnes ( 000 t) Grade (g/t Au) Gold ( 000 oz) Tonnes ( 000 t) Grade (g/t Au) Gold ( 000 oz) Measured 1, , Indicated 5, ,065 2, Total M&I 7, ,619 4, ,020 Inferred 6, , ,240 The effective date of the reserve and resource statement is 30 June 2017 or 30 June 2015 as relevant Totals may not equal the sum of the components due to rounding adjustments The Mineral Resource is reported above 2g/t within interpreted mineralised domains The Mineral Resource estimate is depleted by underground mine workings as at 30 June 2017 All available information has been used including mapping from underground mining and assays as at 30 June 2017 Available resource data resulted in 41,277 one metre down hole composites used for grade estimation The Mineral Resources were estimated utilising a single Indicator weighted Kriging method (IK) to estimate gold for each of the mineralisation domains Measured Mineral Resources are defined by a drill spacing of at least 20m x 20m and confined to the interpreted mineralisation defined by underground mine development. Indicated Mineral Resources are defined as areas outside the Measured Mineral Resource and defined by approximately 20m x 20m drill spacing. Inferred Mineral Resources include all remaining estimated mineralisation defined by a drill spacing of approximately 50m x 50m Mineral Resources are reported inclusive of those resources converted to Proven and Probable Mineral Reserves. The underground resource is located within the boundaries of the total resource, and is included within that total 35

36 0.8% 0.7% 0.7% 0.6% 0.6% 0.6% 0.5% INDUSTRY LEADING DIVIDEND 2017 ESTIMATED DIVIDEND YIELD FOR GOLD MAJORS AND PEERS 6.5% 5.5% 4.7% 3.9% 3.7% 2.3% 1.9% 1.7% 1.7% 1.7% 1.2% 1.1% 1.1% 0.9% 0.3% 0.2% 0% 0% 0% 0% Source: Factset as at 24 January 2018 (CEY 160p, USDGBP 1.41), consensus full year dividend expectation for 2017 other than Centamin 36

37 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q US$ millions Gold Price (US$/oz) FOCUS ON CASH GENERATION FREE CASH FLOW GENERATED EVEN IN LOW GRADE QUARTERS PROFITABLE THROUGHOUT GOLD PRICE CYCLE % 1, % 50% 1,700 1,600 1,500 1, % 1, % 1,200 1,100 0 (25) Plant Expansion 20% 1, (50) 10% 800 EBITDA Free Cash Flow EBITDA Margin Realised Gold Price (RHS) Free Cash Flow is a non-gaap measure, defined as: net cash generated from operating activities, less net cash used in investing activities, less EMRA profit share payments Return on Capital Employed is a non-gaap measure, defined as: Profit before tax and finance income divided by period end total assets less current liabilities 37

38 PROCESS PLANT FLOW SHEET Open Pit Ore Underground Ore Plant 1 Conc. Primary crushing Mill Feed Stockpil e 1 SAG MILL 1 BALL MILL 1 BALL MILL 2 FLOTATION CIRCUIT 1 Tails Plant 2 Conc. Secondary cone crushers Mill Feed Stockpil e 2 SAG MILL 2 BALL MILL 3 FLOTATION CIRCUIT 2 Tails DUMP LEACH New secondary crusher Carbon columns Solution Solution Solution Tails CONCENTRATE CIRCUIT FINE-GRINDING (VERTIMILL & SMDs) ELUTION & ELECTROWINNING OXIDE CIL CIRCUIT Tails TAILINGS STORAGE FACILITY 38

39 Andrew Pardey, Chief Executive Officer Ross Jerrard, Chief Financial Officer Alexandra Carse, Investor Relations