PRODUCING AND EXPLORING Q WEBCAST

Transcription

1 PRODUCING AND EXPLORING Q WEBCAST 1

2 CAUTIONARY STATEMENT This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation, which reflects management s expectations regarding Teranga Gold Corporation s ( Teranga or the Company ) future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as plans, expects, does not expect, budget, scheduled, estimates, forecasts, anticipate or does not anticipate, believe, intend and similar expressions or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, have been used to identify such forward looking information. Although the forward looking information contained in this presentation reflect management s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking information. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking information, including those listed in the Risk Factors section of Teranga s Annual Information Form, dated March 28, 2012 (the AIF ). These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga s actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities law. Forward looking information and other information contained herein concerning mineral exploration and management s general expectations concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on various factors. In addition, please note that statements relating to reserves or resources are deemed to be forward looking information as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource. This presentation does not constitute in any way an offer or invitation to subscribe for securities in Teranga pursuant to the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission. 2

3 Q WEBCAST Alan R. Hill Richard Young Chairman & CEO President & CFO FOCUSED ON GROWTH FOCUSED ON: GROWING RESERVES GROWING PRODUCTION FINANCIAL STRENGTH 3

4 OPERATING HIGHLIGHTS Q ,495 oz s produced 36% higher than Q % higher than Q $645/oz cash cost 20% lower than Q % lower than Q ,503 oz s sold Increase to gold in circuit / gold bullion inventory to 20,382 oz s * Lower than oz s produced; reduced capacity to pour gold during tie-ins for mill expansion *Gold produced is change in gold in circuit inventory plus gold recovered during the period 4

5 OPERATING HIGHLIGHTS Q Total tonnes mined 15% higher than Q Improved productivity and efficiency in mining operations Drilling and loading 3 new blast hole drill rigs, 4 new haul trucks Better maintenance practices improved loading and hauling efficiencies 5

6 OPERATING HIGHLIGHTS Q Unit mining cost $2.50/t mined, on plan Mill throughput 25% lower than Q Harder ore, mill expansion tie-ins Offset by higher grades, 3.2 gpt Manage operations based on production not grade Hard/Soft ore Blending (soft material processed twice as quickly) With blended material, able to achieve production objectives 6

7 OPERATING HIGHLIGHTS Q Unit processing cost $22.90/t milled H Higher throughput expected Production / cost guidance maintained 210, ,000 oz s at cash costs of $600 - $650/oz 7

8 FINANCIAL HIGHLIGHTS Q Revenue of $62M 15% higher than Q Higher realized gold prices All ounces sold in spot market $1,608/oz average realized price Profit of $12.6M Compared to a loss of $14.4M Q capital expenditure forecast to be $60M $15M remains to be spent in 2012 Completion expansion, capitalized exploration, mobile equipment 8

9 FINANCIAL HIGHLIGHTS Cash and cash equivalents: $35.6M at June 30, 2012 In Q2, all ounces sold at spot gold prices In H2, more production can be sold at higher spot gold prices, increasing operating cash flow $60M, 2-Year Loan Facility: Amendment of existing Facility Agreement Provides cash cushion, flexibility to grow business Gold forward sales program declined by 52,105 oz s to 122,395 oz s Year end balance expected to be 66,000 oz s, hedge-free by August,

10 GOVERNMENT RELATIONS 5% Contribution Tax Fiscal stability provision written into Sabodala Mining Concession New President supportive of mining industry Previously served as President of National Assembly, Prime Minister, and Minister of Mines Potential tax exposure $2.8M to June 30, 2012; ~$10M for 2012 Teranga to work in Partnership with the Government to help address some of Senegal s immediate financial needs 10

11 MINE LICENSE (ML) EXPLORATION $20M to be spent in 2012, expand pit reserves Pit optimization in Feb 2012, defined $1,550/oz pit shell, containing over 2 Moz (Sabodala current reserves at ~1Moz) Focus on Main Flat Extension (MFE) and Lower Flat Zone (LFZ) principle gold hosts in Sabodala deposit 23,800m drilled during Q2 at Sabodala primarily MFE Objective: FOCUSED ON GROWTH FOCUSED ON: GROWING RESERVES Increase reserves at the Sabodala Pit *At grades of between 1.5 to 2.0 gpt to gold inventory (1) Proximate Statement: This exploration target is not a Mineral Resource. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. 11

12 MINE LICENSE EXPLORATION Main Flat Extension / Lower Flat Zone ( MFE/LFZ ) program: Drilling focused on Sabodala Pit Extend MFE zone down dip to the northwest (1) Convert inferred resources north of current ultimate pit Additional deep drilling to develop LFZ mineable resource to depth Test for extensions of the LFZ to the east Drill program this year designed to take ultimate pit 150m deeper to ~480m depth Add upwards of 500,000 1,000,000 oz s (1,2) (1) Potential to expand existing gold mineralization to between 40 and 50 M tonnes at grades of between 1.5 to 2.0 gpt Au for a total inventory of 2.5 to 3.5 Moz (2) This exploration target is not a Mineral Resource. The potential quality and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. Full drill results are posted at terangagold.com 12

13 MINE LICENSE EXPLORATION Main Flat Extension / Lower Flat Zone ( MFE/LFZ ) program: In-fill drilling under main haulage ramp on the north end ongoing; high grade intercepts down dip at depth 31m at 6.0 gpt from 385m Vertical drilling from the north end of the pit 95m at 1.3 gpt from 358m Other recent MFE drill results include: 20m at 3.2 gpt 9m at 5.4 gpt Full drill results are posted at terangagold.com 13

14 MINE LICENSE EXPLORATION MASATO 2011 Confirmed strike length of 500m and dip extent of 200m Q Confirmed strike length to 1,600m and dip extent to 300m, (still remains open in both directions) 2012 Objectives Infilling 200m x 500m zone identified in 2011 in preparation for resource estimate Further definition drilling on the high grade pod of gold mineralization Locate southern extension of Masato on our ML Expect continued positive drilling results to lead to defining a resource by year end Q ,310m drilled Full drill results are posted at terangagold.com 14

15 MINE LICENSE EXPLORATION Q2 34,000m, $7M YTD 60,000m, $14.2M 2012 Budget ~90,000m, $20M (RR/DD drilling) Approximately 15% more metres than original budget Minimum 7 drill rigs testing targets FOCUSED ON GROWTH FOCUSED ON: GROWING RESERVES 7 drill rigs currently operating 5 DD rigs 2 RC rigs Expect to reach Moz, Moz from pit alone 15

16 1. MINE LICENSE EXPLORATION (ML) 2. REGIONAL EXPLORATION (RLP) 33km 2 1,450km 2 35 km radius 16

17 REGIONAL EXPLORATION ~1,450km 2 Regional Land Package ~40 drill targets to be drill tested in 2012/2013 All truckable to mill Further 20 targets to be evaluated with surface sampling or trenching 17

18 Q REGIONAL EXPLORATION 3 rigs RAB 41,000m RC 18,000m RC focused on Toumboumba, Tourokhoto, Saiensoutou, Jam, KB, and IP anomalies at Gora Several RAB programs completed 2012 Budget of $20M $5.3M spent during Q2 (including $0.5M for Gora) $13.9M year to date 18

19 TOUMBOUMBA NEWEST TARGET Q Potential for near surface oxide deposit on main Toumboumba mineralized zone In April, commenced RC program on a 25m x 25m grid 129 holes, 12,000m completed Three principal shear veins hosted in granite Numerous high grade intersections including 3m at 38 gpt At minimum, potential for economic mill feed Full drill results are posted at terangagold.com 19

20 TOUROKHOTO Sabodala Ore Body 27 hole RC program, 14,000m, commenced in December 2011, completed during Q Marougou area most promising, southeast of Tourokhoto Main Trend Central area Wide-spaced drilling, best results include: 14m at 3.25 gpt 12m at 13.2 gpt 8m at 3.6 gpt Trend of minimum 1,200m, NE direction, westerly dip Represents discovery of new prospect Open to north and south New drill program to infill and extend the zone along strike will commence in Q4 Full drill results are posted at terangagold.com 20

21 DIEGOUN NORTH THE DONUT Sabodala Ore Body Cinnamon northern portion of Donut 14 RC holes, 2,500m Results to date include: 8m at 1.9 gpt 15m at 0.5 gpt 6m at 2.8 gpt Jam southern portion of Donut 15 RC holes, 2,900m, 9 DD holes, 2,100m Results returned wide, but low grade mineralized intersections Large-scale, gold-bearing, hydrothermal alteration system Full drill results are posted at terangagold.com Donut Massive 28km 2 target, continue to evaluate during wet season, determine appropriate follow-up program 21

22 FOCUSED ON DELIVERING Increasing production Reducing costs Executing on our vision to grow the company 22

23 PRODUCING AND EXPLORING Q WEBCAST 23

24 COMPETENT PERSONS STATEMENT The information in this presentation relating to the reserve estimate associated with the Sabodala and Niakafiri pits as well as the Stockpiles is based on information compiled by Ms. Julia Martin, PEng, MAusIMM (CP) who is a full time employee of AMC Mining Consultants Canada and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Martin is a Qualified Person in accordance with NI and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The technical information in this presentation that relates to mineral resource estimates within the Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the Australasian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves. Mr. Van Brunt is a "Qualified Person" in accordance with National Instrument and he consents to the inclusion of this information in the form and context in which it appears in this announcement. The technical information in this presentation that relates to the exploration results and targets within the regional exploration program are based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australian Institute of Geoscientists. Mr. Pawlitschek is our full time employee and is not independent within the meaning of National Instrument Mr. Pawlitschek has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Pawlitschek is a Qualified Person in accordance with NI and he consents to the inclusion of this information in the form and context in which it appears in this presentation. 24