Planning for the next 10 years. Rod Quick

Transcription

1 Planning for the next years Rod Quick Investor Days November 6

2 Mineral resource management at Randgold Manage the orebody from gold in the ground to profits only possible through ownership of the orebody Responsible for resource sustainability and thus responsible for feasibility and replenishment gatekeepers to ensure reserves pass our filters We are in the consumptive business and if we do not replenish we will die Getting too big is fatal focus on profitability and returns on capital as opposed to pure production Long term planning is critical - year plan needs to be sustained

3 Resource Triangle Operating Mines Morila Loulo Tongon Gounkoto Kibali Reserve definition 8 7 Feasibility and reserve definition Measured and Indicated Resources Prefeasibility and resource definition Inferred Resource 8 Mali Senegal Côte d Ivoire DRC Scoping study and resource definition Exploration Targets

4 Strategic filters Does it apply principally to gold? Have we identified and understood the country risks? Does it fit our values? Will we have active management participation? Will it enhance our partnering network? Does it diversify our geographical exposure? Does it have a reserve potential greater than million ounces of gold? Does it have the potential to be + oz per year producer? Can we move it up the value curve? Does it have the potential to be in the lowest total unit cost quartile? Can it produce an IRR in excess of %? Does it have a payback of less than years? Is it accretionary to our share value?

5 Resource and Reserves Moz Reserve grade g/t,,,,,,,,, Attributable Mineral Resources outside Reserves Attributable Mineral Reserves Reserve Grade,

6 Reserve replacement 8 Morila Loulo Gounkoto Tongon Kibali, 9 6 Randgold Total Moz g/t Moz g/t Moz g/t Moz g/t Moz g/t Moz g/t 7 6,,,, 8 7 6,,,,,,,,,,,, 8 6 Reserves: Feasibility study Reserves: Added post feasibility Depleted: Fed to plant Reserve grade: Feasibility Added Fed to plant

7 Kibali Lode Potential lode in pit KCD Pit Down Plunge UG Potential +g/t Up Plunge Potential +g/t, koz DDD66 DDD89 DDD 8.m@6.8g/t 8.m@.9g/t DDD6 8.m@7.9g/t C_Decline D_Incline UG Reserve: DDD8 DDD DDD8.m@.g/t DDD9 DDD9 A_Decline

8 Loulo reserves and resources added to Gara mine N converted to probable reserves Gold g/t >8g/t 8g/t g/t.7 g/t <.7g/t Strong SW plunge of mineralisation suggest further potential at depth in inferred resource extension

9 Loulo Yalea gains in high grade extensions g/t change in UG reserve Gold g/t >8g/t 8g/t g/t.7 g/t <.7g/t Additional high grade shoot identified busy with infill drilling Oct 6

10 Gounkoto Super Pit feasibility Feasibility Study nearing completion 7.8 for.moz SR of.7: Extends Complex production profile to plus 6koz for years Current PEA at $/oz, post tax NPV () $7m vs $67m open pit and underground option Adds flexibility to complex Reduced grade variability risk Backfill of waste into pit Mines more ore and option on smaller UG on MZ $/oz Super Pit design Latest PEA financial numbers Gold Price US$ /oz /oz /oz NPV() $7m $.8bn $.bn NPV() $86m $9m $79m Gold g/t 8g/t 8g/t g/t. g/t <.g/t MZ UG scoping km

11 Gounkoto UG Feasibility to come.6mt at.9 g/t Au for a total of 87 koz potential Trade-off completed on portal position. Lower portal Jan start In addition to current year plan Ore Tonnes and Grade 6 Tonnes Grade g/t 8 Low capital design Portal as low as possible Decline from pit CAF plant on surface No underground crushing Vent raises to hole into the pit Ore Grade 6

12 Senegal Massawa deposit Central Zone resource Orientation drilling confirms continuity and styles of mineralisation 8% of gold within Phase Central Zone metallurgy Phase Good gravity and floatation recovery from metallurgy tests - 7 to 7% leach recovery Metallurgical modelling advancing northwards to Northern Zone Northern Zone Orientation drilling confirms current resource model North Zone metallurgy Overall Biox testwork recovery of 89% on refractory sulphide Block (Phase and ) leach recovery % A B C D Ph Ph Ph Ph Ph Ph Ph Ph Gravity + float conc leach na na p p Gravity + float + tails leach p p A B C D E F CZ: 88m CZ:6m Gap: m Central Zone North Zone.km Massawa long section looking west:.km North Zone.km

13 Senegal Sofia deposit Regolith Depositional Erosional N + ppm soil anomaly Updated model has open pit potential In situ resource material within a $/oz pit g/t Metallurgical recovery 89% direct leach Potential to increase the resource by testing the North Busy with prefeasibility drilling and testwork Indicated for8koz Inferred for 87koz Updated resource model ($/oz pit shell) + ppm soil anomaly 6 m Sofia Main resource pit looking NE:.km

14 Massawa and Sofia PEA approaching Randgold hurdle for.9moz SR 7.7:.Mtpa throughput, year life.moz produced different processing streams Oxide and oxid transition, 9% rec at $6/t Sofia fresh, 89% rec at $8/t CZ and NZ fresh, 7% rec at $/t NZ fresh, 89% rec at $/t BIOX route $m capital $8m ongoing capital Oz - Grade g/t Years CZ, NZ, Sofia Ox CZ NZ Fr Ounces Produced Sofia Fr NZ Fr - Gold Price $ /oz /oz /oz IRR 8% % % NPV() $9m $79m $.bn NPV() $99m $m $m

15 Ten Year Plan 8 6 Oz Year Plan including # # MASSAWA 8 6 KIBALI (%) MORILA (%) TONGON GOUNKOTO LOULO

16 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 7A of the US Securities Act of 9 and Section E of the US Securities Exchange Act of 9, 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. Randgold reports its mineral resources and mineral reserves in accordance with the JORC 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$ /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$ /oz, except for Morila which is reported at US$ /oz. Mineral reserves are reported at a cut-off grade based on US$ /oz gold price within the pit designs. Underground reserves are also based on a gold price of US$ /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.