Operating world ranking businesses in West Africa

Transcription

1 Operating world ranking businesses in West Africa Samba Toure, GM Operations West Africa Overview of key assets in West Africa Morila mine (Mali) Ownership Status 2011 production 2P reserves Total resources Randgold s capital projects team has successfully built three mines in West Africa, including two underground mines 40% producing 425koz 0.3moz 1.0moz Loulo Gounkoto mine complex (Mali) Ownership Status 2011 production 2P reserves Total resources 80% producing 346koz 9.2moz 15.5moz Senegal Mali Burkina Faso Massawa feasibility project (Senegal) Ownership Status 83% Exploration project Total resources 3.6moz Côte d Ivoire Tongon mine (Côte d Ivoire) Ownership Status 2011 production 2P reserves Total resources 89% producing 250koz 2.8moz 4.6moz 1

2 West African assets key highlights Loulo Gounkoto (Mali) Randgold discovered, financed and developed the Loulo mine Production commenced in 2005 with 2 open pit mines Initiated development of 2 underground mines, which are fully in production Long life, low cost asset Production is set to increase to >450 million ounces by 2012 Morila (Mali) Randgold discovered, financed and developed the Morila mine Strong JV partner in AngloGold Mine was commissioned in 2000 Since commissioning, total production has amounted to 6.0 million ounces yielding >$2.0bn contribution to stakeholders Tongon (Côte d Ivoire) Randgold discovered, financed and developed Tongon mine Production commenced in 2010 with 2 open pit mines, with one in full production further upside through follow up exploration (highly prospective permit area) Massawa (Senegal) Prefeasibility confirms multi million ounce deposit Further work underway to complete full feasibility by mid 2014 West African operations supply routes Taoudénit Loulo Massawa KIDAL TOMBOUCTOU GA O Gounkoto Morila Tongon 2

3 Fiscal parameters summary Parameters Morila Loulo Gounkoto Tongon Royalty on gold Sales 6% 6% 6% 3% Corporate tax rate 30% 30% 30% 25% Corporate tax: minimum line 0.75% of revenue 0.75% of revenue 0.75% of revenue negligible Corporate tax: holiday Import duty: holiday Dividend withholding tax State participation 5 years from first production ( ) 3 years. Fuel exempted for life of mine 5 years from first production ( ) 3 years. Fuel exempted for life of mine none none none 10% free carried + 10% contributory 10% free carried + 10% contributory 2 years from first production ( ) with opportunity to extend on further investment 3 years. Fuel exempted for life of mine 20% financed by Randgold -. State entitled to a10% preferred dividend 5 years from first production ( ) Construction period duty free. Thereafter fuel and certain other reagents are exempted First five years following first production:18% thereafter: 12% 10% free carried Tax stabilisation Indefinite Indefinite Indefinite Indefinite Health and Safety LTIFR 2011 & 2012 YTD OHSAS Certification: Loulo Morila Scheduled for 2013: Gounkoto Tongon YTD Proactively addressed through hazard identification and risk management, resulting in: Continued zero LTIs at Tongon and Morila Consistent reduction in LTIFR across group Instilled personal safety culture 3 3 Morila Tongon Loulo Gounkoto Group 3

4 Environment ISO14001 Certification: Tongon Morila Loulo Gounkoto Q Completed sustainability report according to the GRI guidelines for the first time. Met the requirements of Application Level C+ In addition to the ISO environmental management system and host country legislation, also adhere to IFC and ICMM sustainability guidelines Focus on water management has seen substantial improvements in water efficiencies during the year. Participate annually in CDP. Attention to energy efficiency during 2013 Community Agribusiness as component of Morila sustainable closure strategy moving from pilot phase to full scale production. Community development committees manage development spending. Development criteria: Primary health Care Basic education Potable water Food security Economic development Although we contribute substantially to infrastructure in directly affected communities, development of skills and local business (suppliers, contractors, consultants) greatest sustainable benefit. Established grievance mechanism at all sites as platform for communities to raise concerns. Adhere to IFC Performance Standards on Informed Consultation and Participation for all new development and implement stakeholder engagement plan for the LOM 4

5 How we Manage Our Business (SCRIMP) (M)onitor STIC (I)mplement Execute (P)roduce Output Deliver Value (I)mplement (I)mprovement Planning (R)ecommendations Rank & set timeframe Management Team Finding(S) Understand and Update Current situation Look for Opportunities remove barriers to add or create value (C)Onclusions - Evaluate (R)ecommendations - Motivate How we manage our business PLAN Through the following Annual Group Strategic Planning Workshop to define, Strategic Direction of RRL, Strategy rolled down to Functions and Mines Budgeting Session ORGANISE - Obtain and Allocate resources. Design and put in place structure, systems, procedures, Short Terms Interval Control mechanisms, Change Management, Sustainable Management (Environmental, Corporate Social Responsibility, Community Development etc. MOTIVATE - Connection with Larger Vision / Relatedness - Pact with Labour Mine Level Agreement; Wide involvement in strategic planning and CEO mass meetings; Incentives PdR and Restricted Shares People Development Various Development programmes including Continuous Improvement Exercises (Metworx), Personal & Career Development Opportunities (Onthe-Job and at School Development Skills and Knowledge Development. CONTROL - It is conducted through Regular reviews at the end of each year and throughout the year on an hourly, daily, weekly exco, monthly, quarterly and annual basis. 20F & Annual Sustainability Report (Externally audited), Group/Mine/Function, Annual Performance Appraisal, Quarterly Strategic Reviews / Updates for Business Units 5

6 Executive and senior management CEO Dr DM Bristow COO West Africa Samba Toure Executive Committee Bamako Regional Office N golo Sanogo Abidjan Regional Office Bodiel N daye GM Morila Adama Kone GM Loulo Chiaka Berthe Mine Mngr Gounkoto Tahirou Ballo GM Tongon To Luiz Correia Operations Mine employees Total Contractors Total Grand Total Expats Nat Expats Nat Morila Loulo Tongon Gounkoto Total Morila Gold Mine Mali 6

7 Morila history 1987 Government / Bugeco regional soil survey 1992 BHP granted permit 1996 Randgold acquired BHP Mali in October 1997 Randgold excavated first trench over anomaly 8.9g/t) in February 1999 Feasibility study approved in February (Resource = 4.45 Moz) (Reserve = 3.33 Moz); 1999 Construction started in August; 1999 Reserves increased to 5.2 Moz in Dec 2000 Open pit mining commences in February 2000 AngloGold acquires 40% of Morila in June 2000 Plant commissioning completed by RRL Capital Projects Team in Oct 2000 First gold poured 16 October 2008 Randgold took over Morila operatorship in April Morila s contribution to Mali Econmy from inception to Q Total payment US$ 1.6 billion US$ million 211 Royalties Payment to local suppliers, local salaries. Community investment Direct and Indirect taxes 253 Dividend paid 7

8 Morila forecast production with Pit 4S pushback US$/oz / Oz Total cash costs Grade g/t Actual Forecast Forecast with Pit 4S pushback Looking ahead. Decision on pushback status Ensure Smooth transition from stockpile to TSF material treatment Move agribusiness projects from trial to viable industrial scale 8

9 Loulo Gold Mine Mali Loulo history 1981 Syndicat Or (JV BRGM + DNGM) discovered Loulo-0 deposit; 1989 Somilo was created in purpose to mine Loulo-0 deposit; 1992 BHP- Minerals Mali Inc. Acquired BRGM shares in Syndicat Or; Randgold Resources aquired BHP Minerals Mali Inc in Aug; 1996 Yalea discovery Trench excavated in November increasing total resources to million ounces; 1997 Randgold submitted the feasibility study Mining permit granted; 2003 Randgold updated the feasibility study followed by the Board approval 2004 Construction commences; 2005 Opening of Loulo gold mine in November 12th; 2005 UG Feasibility approval in December 2006 Commenced UG development 2009 Gounkoto deposit discovered; 2010 Gounkoto was Incorporated as a separate Mining Company 9

10 Loulo contribution to Mali economy from inception to Q Total payment US$ 0.9 billion 99 Royalties Payment to local suppliers, local salaries. Community investment 129 Direct and Indirect taxes 708 Gara deposit m Previously drilled intercepts Planned drilling g/t g/t g/t > 6.0 g/t Reserves g/t Resources g/t 10

11 Yalea deposit 2003 Planned drilling g/t g/t g/t g/t > 8.0 g/t 900m Reserves g/t Resources g/t Loulo stand alone actual and forecast US$/oz / Oz Grade g/t g/t Total cash costs

12 Gounkoto resources Reserve g/t Resource g/t GRADE (g/t) < to 1 1 to 3 3 to 5 5 to m Gounkoto cross section GKTWDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t GKDH g/t Au (g/t) >

13 Yalea UG new design multiple spiral declines P125 Main 500 kw Fan 2 nd 500 kw Vent System Yalea Pit Yalea South Somilo Section Decline Yalea Nth Decline 188L FW DR & SD S Yalea Main Decline VD2 South Decline New design multiple spiral declines Full extraction on high grade with backfill New design introduce from January 2014 that reduce footwall development and optimize the capital expenditure Introducing CAF filling until Paste Fill project commissioned in Jan Gara UG new multiple spiral declines VD1 & CD1 1st 500kW Fan (153mᶟ/s) Gara Pit 2 nd 500kW Fan (295mᶟ/s) CD3 South Decline Central Decline Nth Decline Mining design optimal with multiple spiral ramps and eliminate footwall drives on three consecutive levels. 200Meters strike length both direction from Spiral Ramps Future optimization involves the final location of the crusher and stop conveyor decline at 85Level at Gara 13

14 Loulo UG tonnes and metres profile last 12 months Production increase 282% last 12 months GARA UG YALEA UG GARA UG YALEA UG Q Q Q Q Q Q Q Q Development meters increase 55% last 12 months Yalea CAF Implementation D 14

15 Gounkoto Gold Mine Mali Gounkoto history diamond drill holes were drilled and confirmed Gounkoto as a significant new discovery Gounkoto was Incorporated 21 Dec ESIA approved by the government 06th December Mine construction started in November Mining operations started 19 Jan Implementation of toll treatment agreement 1 Jun First gold poured 8 Jun Completion of all capital projects, the mine payback all the capital after one year production in Q Successful opening of the mine 6 Aug First dividend of US$69m paid to the Shareholders in July and second dividend of US$63m declared in November

16 Gounkoto contribution to Mali economy from inception to Q Total payment US$ 0,18 billion US$ million 36 Royalties Payment to local suppliers, local salaries. Community investment Direct and Indirect taxes Dividends paid Gounkoto grade/tonnage reconciliation confirms original orebody model Original Resource Model Grade Control Block Model Actual Tonnes 000s Grade g/t Oz 000s Tonnes Grade Ounces 16

17 Gounkoto stand alone actual and forecast US$/oz / Oz Grade g/t g/t Total cash costs Loulo and Gounkoto combined actual and forecast production Oz 000 g/t Total cash costs Grade g/t US$/oz

18 Tongon Gold Mine Côte d Ivoire Tongon history 1996 Niellé Exploration Permit acquired in November; 2001 Finalised Prefeasibility Study in October; 2002 Force Majeure declared - RRL closes the exploration office; 2006 Exploration activities resumed 2008 Completion of the review of pre feasibility study in February; 2008 Approval of the Feasibility Plan by the Board of Directors in May; 2008 Reserve increased by 26% to 2.57 g/t in July; Randgold Increased its participation by 84% in December; 2008 Start of Tongon site earth works; 2009 Plant construction started; 2009 Mining activities started in November; 2010 First gold, December 2011 Plant construction, including hard rock crushing circuit completed 2011 Official Opening by the Head of the State in October; 2011 Connection to the National Grid Power in December; 2012 Mine transitions through oxide ore into hard rock 18

19 Tongon contribution to Cote d Ivoire Economy from Inception to Q Total payment US$ 0.37 billion Royalties Direct and Indirect taxes Payment to local suppliers, local salaries. Community investment 342 Recents issues and plan to deliver Recent Issues Grid Power instability Frequent number of power outages as demand for power increased; Voltage spikes and dips; Impacting negatively on: Process Plant Availability; Flotation and Concentrate Circuit Optimisation; Plan to Deliver Install new capacitor bank to smooth out power voltage spikes / dips Frequent number of power outages as demand for power increased Jan 13; Install 5 additional generators to upgrade the existing powerhouse capacity Nov 12; Reconfigure the power supply feeder configuration to operate key unit processes preferentially on generated power should the grid power becomes unstable... Nov 12. Finalise with CIE / govt to provide uninterrupted, quality grid power... Nov 12 19

20 Recent challenges power supply Interconnected Network of Cote d lvoire 225 KV line- new Tongon Cote D Ivoire d Ivoire GRID Tongon Actual and Forecast Production US$/oz /Oz Grade g/t g/t Total cash costs

21 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 the section entitled Risk Factors in Randgold s annual report on Form 20 F for the year ended 31 December 2011 which was filed with the US Securities and Exchange Commission (the SEC ) on 30 March 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 presemtation, 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. Competent persons: Loulo mineral resources were calculated by Mr Abdoulaye Ngom, an officer of the company, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. Morila mineral resources were calculated by Mr Adama Kone, an officer of the company, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. The Tongon and Massawa mineral resources were calculated by Mr Babacar Diouf and Mr Mamadou Ly, both officers of the company, reviewed by Mr Jonathan Kleynhans, an officer of the company and competent person. Kibali mineral resources were calculated by Mr Ernest Doh under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. The Gounkoto mineral resources were calculated by Mr Abdoulaye Ngom, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. All mineral resources were reviewed and approved by Mr Rodney Quick, general manager evaluation and a lead competent person. Mr Johan Kleynhans and Mr Rodney Quick are members of SACNASP and both have sufficient experience in the style of mineralisation and types of deposits under consideration and the activity which they are undertaking as competent persons as defined in the 2004 addition in the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. The Loulo and Gounkoto open pit mineral reserves were calculated by Mr Shaun Gillespie, an independent consultant, competent person and member of SAIMM. Loulo underground reserves were calculated by Mr Juan Mitchell, an officer of Randgold, reviewed by Mr Mark Odell, an independent consultant, competent person and practising professional engineer. The Tongon Northern Zone mineral reserves were calculated by Mr Samuel Baffoe, under the supervision of Mr OnnotenBrinke, an officer of the company and competent person. The Tongon Southern Zone mineral reserve was calculated by Mr Nicholas Kingaby, an independent consultant, competent person and member of SAIMM. Massawa mineral reserves were calculated by Mr Onno ten Brinke in the capacity as an independent consultant, competent person and member of AusIMM, and reviewed and verified by Mr Rodney Quick, an officer of the company and competent person. The mineral reserves of Morilawere calculated by Mr Stephen Ndede, an officer of the company, competent person and member of AusIMM. Kibali open pit mineral reserves were calculated by Mr Onno ten Brinke and Mr Nicholas Coomson, both officers of the company, competent persons and members of AusIMM. Underground mineral reserves were calculated by Mr Dan Donald and Mr Tim Peters, both independent consultants, competent persons and members of AusIMM. All competent persons have sufficient experience in the style of mineralisation and types of deposits under consideration and the activity which they are undertaking as competent persons as defined in the 2004 addition in the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore 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 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. 21