2012 Global Metals and Mining Conference Bank of America Merrill Lynch

Transcription

1 2012 Global Metals and Mining Conference Bank of America Merrill Lynch

2 Corporate Social Responsibility Global Reporting Initiative GHG CO 2 -e/t reduced at Tongon by 62% with switch to grid power Safety 90% of water used at Morila recycled Morila, Gounkoto and Tongon all achieved zero lost time injury free hours in Q1 Loulo LTIFR was 3.68 Kibali LTIFR was 2.65 Community Kibali - assistance provided to storm damaged school, falling outside the area affected by the resettlement programme, in Durba Village

3 HSBC Global Gold Index vs Gold Price and Gold Production Gold Price US$/oz Gold Production Tonnes Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Gold Production Index Gold Price Source: HSBC

4 Randgold Resources a profitable pure gold company Proven ability to discover multi-million ounce gold deposits and convert them into profitable mines Sustainable pipeline of future prospects group production up 58% in 2011 and estimated to increase 19% in 2012 Cost profile to be driven down by higher anticipated grades and volumes Superior historic and prospective reserve growth per share Strong balance sheet to support funding of new developments West African hub provides operational leverage through shared infrastructure DRC operation establishes a presence in a prospective new gold field Pure gold focus gives undiluted exposure to gold price upside

5 Randgold Resources summarised financials Quarter ended 12 months ended 12 months ended US$ Mar Dec 2011 restated + 31 Dec 2010 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 costs/oz* (US$) Group cash operating costs/oz* (US$) Basic earnings per share (US$) Refer to Q quarterly report for footnotes

6 Randgold Resources a world class African footprint LOULO-GOUNKOTO MINE COMPLEX 2011 production oz 2011 total cash costs US$ 822/oz 2011 reserves 9.24Moz MALI CÔTE D IVOIRE TONGON GOLD MINE 2011 production oz 2011 total cash costs US$ 557/oz 2011 reserves 2.77Moz MORILA GOLD MINE 2011 production oz 2011 total cash costs US$ 782/oz 2011 reserves 0.32Moz SENEGAL MASSAWA GOLD PROJECT Total reserves 2.05Moz DRC KIBALI MINE DEVELOPMENT First production target Q Total reserves 10.21Moz Local employment 98%

7 Randgold Resources a robust reserve profile Million ounces 30 Moz Reserve oz/share Oz/share Reserves Moz Resources Moz Reserve oz/share

8 Morila produced plus 6Moz and still profitable Commissioned in October 2000 and has produced more than 6Moz of gold and paid more than US$ 2Bn to stakeholders Mine declared another US$ 50 million dividend for Q Targets for 2012 Produce oz Prepare for low grade mineralised waste and tailing throughput Decide on Pit 4 pushback Roll out agribusiness initiative and establish a cooperative

9 Morila mine operating results US$000 Quarter ended 12 months ended 12 months ended 31 Mar Dec Dec 2010 Milling Tonnes processed (000) Head grade milled (g/t) Recovery (%) Ounces produced Ounces sold Average price received (US$/oz) Cash operating costs* (US$/oz) Total cash costs* (US$/oz) Profit from mining activity* (US$000) Stockpile adjustment** (US$/oz) Attributable (40% consolidated) Gold sales* (US$000) Ounces produced Ounces sold Profit from mining activity* (US$000) Refer to Q quarterly report for footnotes

10 Loulo Gounkoto a world class mining footprint Randgold s flagship operation comprises the Yalea and Gara open pit and underground mines as well as open pit mines and Loulo 3 and Gounkoto Loulo delivers on plant expansion programme and considers unlocking additional capacity Gounkoto capital recouped in one year Gounkoto convention signed confirming the operation s fiscal and economic regime Targets for 2012 at Loulo-Gounkoto: Increase production to oz Reduce cash cost per ounce at Loulo: Start mining high grade purple patch at Yalea OHSAS accreditation at Gounkoto: Complete infrastructure Start paying dividends ISO accreditation

11 Loulo Gounkoto mining complex combined results Quarter ended 12 months ended 12 months ended US$ Mar Dec 2011 restated + 31 Dec 2010 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 (US$/oz) Cash operating costs* (US$/oz) Total cash costs* (US$/oz) Gold on hand at period end # (US$000) Profit from mining activity* (US$000) Gold sales* (US$000) Refer to Q quarterly report for footnotes

12 Loulo Permit multiple world class deposits Gara West Reserves: Resources: PQ10 South Potential: g/t g/t g/t Gara deposit Reserves: 4.59g/t Resources: 4.04g/t P129QFP Resource: g/t P129QT Inferred Resource: g/t Yalea deposit Reserves: 5.48g/t Resources: 4.89g/t PQ10 Inferred Resource: g/t Gara North target area Baboto Reserves: Resources: g/t g/t N Loulo 1 Inferred Resource: g/t Loulo 2 Inferred Resource: g/t Loulo 3 Reserves: g/t Resources: g/t UG potential: g/t P125-L3 Resource: g/t Yalea South target area Further underground potential

13 Gounkoto permit a stand alone business with further upside potential P64 Inferred Resource: g/t Interpretation ongoing, potential to convert Gounkoto deposit Reserves 5.06g/t Resources 4.65g/t Gounkoto North Limited work Toronto South Advanced Target - 400m strike of good mineralisation FRDH12: 2.61g/t FRDH18: 2.17g/t qand 3.24g/t Faraba West Limited work Faraba Main Inferred Resource: g/t Potential to convert 5km N

14 Tongon targeting design potential Poured first gold in December 2010 Connected to Ivorian national grid power in December 2011 Targets for 2012 Produce oz of gold Optimise process plant and increase throughput to mine Complete installation of SAP supply chain and warehouse system ISO environmental accreditation OHSAS accreditation Train and develop personnel Conclude MLA with union

15 Tongon mine operating results Quarter ended 12 months ended 12 months ended US$ Mar Dec Dec 2010 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 (US$/oz) Cash operating costs* (US$/oz) Total cash costs* (US$/oz) Gold on hand at period end # (US$000) Profit from mining activity* (US$000) Gold sales* (US$000) Refer to Q quarterly report for footnotes

16 Tongon SZ infill diamond drilling programme Aim to convert inferred ounces to indicated status Tongon Southern Zone Indicated resources 2.92g/t Inferred mineral resources 2.77g/t

17 Kibali another world class mine development Acquired in November 2009 Increased reserve base to more than 10Moz Completed update of feasibility study: Commenced construction of plant and infrastructure Progressed community resettlement Project schedule: Mining: Open pit 37.2Mt ore containing 3.4Moz gold; U/G 36.2Mt ore containing 6.8Moz gold Mill Throughput 6Mt per year Grade average head grade of 4.1g/t Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RAP Mining Hydropower Infrastructure Open Pit Decline Shaft Phase 1 Phase 2 Tailings storage facility Metallurgical plant Commissioning and Production

18 Kibali investment phases Feasibility estimated costs in US$ million before escalation contingencies and provisions Expenditure to 31 Dec 2011 includes acquisition Phase Phase Total Phase 1 capital programme is estimated at US$920m before escalation provisions and contingencies and will cover the metallurgical facility, one hydropower station and back-up thermal power facility, construction of the tailings storage facility, relocation of villages, open pit mining and all shared infrastructure. This will run over a two year period. Phase 2 capital programme is estimated at US$650m before escalation provisions and contingencies which will run concurrently with Phase 1 but will extend over four years. Phase 2 is focused primarily on the underground development and includes a twin decline and vertical shaft system as well as three hydropower stations. This is expected to bring the underground into first production by the end of 2014, with steady state production targeted for the end of 2015.

19 Kibali LOM Taxes, Duties and Dividend estimates *based on optimised feasibilty study Payroll Taxes US$285m Duties US$107m Royalties US$307m Shareholder dividends US$2 738m Corporate tax US$1 543m Dividend withholding tax US$338m Dividend Government share US$304m

20 Kibali substantial exploration upside Mengu Village Resource outside reserve 39Koz Marakeke Resource outside reserve 59Koz Pamao Reserve - 262Koz Resource outside reserve 447Koz Mengu Hill Reserve - 579Koz Resource outside reserve 119Koz Megi Resource outside reserve 258Koz Kombokoto Reserve - 91Koz Resource outside reserve 54Koz Gorumbwa Resource outside reserve 394Koz Ndala Resource outside reserve 33Koz Pakaka Reserve - 741Koz Resource outside reserve 437Koz KCD Open pit reserve Koz Open pit resource outside reserve 1 136Koz UG KCD reserve 6 820Koz UG resource not in reserves 3 830Koz Sessenge Reserve - 233Koz Resource outside reserve 176Koz N Gold deposit Gold target 10km Au ppb

21 Randgold Resources delivering value for all stakeholders Oz Grade g/t Loulo/Gounkoto (100%) Tongon (100%) Morila (40%) Kibali (50%) Massawa (100%) Grade g/t

22 Randgold Resources year to date share price performance Goldfields Barrick Goldcorp AngloGold Newmont Randgold Iamgold Kinross

23 Randgold Resources a sustainably profitable gold business Share price performance: May 2011 to May 2012 Randgold Resources Randgold Newmont Barrick Goldfields Goldcorp AngloGold Iamgold Kinross

24 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 Onno ten Brinke, 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 Morila were 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.