LSE:ACA. Acacia Mining plc Interim Results Presentation. July 2017

Transcription

1 LSE:ACA Acacia Mining plc 2017 Interim Results Presentation

2 Important Notice This presentation includes forward-looking statements that express or imply expectations of future events or results as opposed to historical facts. These statements include, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, projects, and statements regarding future performance. Forward-looking statements are generally identified by the words plans, expects, anticipates, believes, intends, estimates and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of Acacia, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained herein. Factors that could cause or contribute to differences between the actual results, performance and achievements of Acacia include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation or regulation in countries in which Acacia conducts - or may in the future conduct - business, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices (such as copper and diesel), currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia s ability to successfully integrate acquisitions, Acacia s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to process its mineral reserves successfully and in a timely manner, Acacia s ability to complete land acquisitions required to support its mining activities, operational or technical difficulties which may occur in the context of mining activities, delays and technical challenges associated with the completion of projects, risk of trespass, theft and vandalism, changes in Acacia s business strategy and on-going implementation of operational reviews, as well as risks and hazards associated with the business of mineral exploration, development, mining and production and risks and factors affecting the gold mining industry in general. Although Acacia s management believes that the expectations reflected in such forward-looking statements are reasonable, Acacia cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation only reflect information available at the time of preparation. Save as required under the Market Abuse Regulation or otherwise as may be required under applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this presentation, whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast or estimate and no statement made should be interpreted to mean that Acacia s profits or earnings per share for any future period will necessarily match or exceed its historical published profits or earnings per share. Any mineral reserves and mineral resources estimates contained in this presentation have been calculated as at 31 December 2016 in accordance with National Instrument as required by Canadian securities regulatory authorities. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed for mineral reserves and resources estimates. Any reserves and resources figures stated in this presentation are estimates only. All estimates stated are subject to a variety of unknown factors, risks and considerations, such that no assurances whatsoever can be given that any indicated quantities of metal will be produced. In addition, estimated figures and totals stated may not add up due to rounding. This presentation is provided for general information purposes only. It does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction. You are reminded that you have received this presentation on the basis that you are a person to whom this presentation may be lawfully made and delivered. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, in breach of any applicable securities laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS Interim Results Presentation 2

3 H1 Review Operational delivery continuing despite difficult backdrop Very strong operational performance has been overshadowed by the concentrate ban enforced in early March H1 gold production of 428koz, 4% higher than H Q2 gold production of 209koz H1 AISC of US$893 per ounce sold, 5% below H If sales matched production, H1 AISC would have been US$800/oz Q2 AISC of US$835 per ounce sold was 10% below Q US$175m of revenue not realised in H1 as a result of the concentrate ban Cash balance fell to US$176m at period end, from US$318m Due to buildup in unsold concentrate, together with US$51m VAT outflow As a result of negative cashflow, no interim dividend declared 2017 Interim Results Presentation 3

4 Update on Tanzania

5 Metallic Mineral Concentrate Ban Concentrate accounted for 36% of group production in H In March 2017, the Tanzanian Ministry of Energy and Minerals announced a ban on the export of metallic mineral concentrates Concentrate accounted for ~45% of Bulyanhulu s and ~64% of Buzwagi s H1 production 127koz of gold, 8.3mlbs of copper and 107koz of silver builtup in unsold concentrate in Tanzania North Mara is not impacted as it only produces doré During Q2, two Presidential Committees announced findings post investigations into mineral content and historic exports of gold/copper concentrates Acacia fully refutes the implausible findings of both committees On 15 th June, Barrick and the Tanzanian Government agreed to enter into discussions to reach a mutually acceptable solution for all stakeholders Discussions to start soon, no agreements have yet been made Image of concentrate container 2017 Interim Results Presentation 5

6 Tanzanian Legislative Changes Sector-wide legislation to promote local ownership Following publication of Second Presidential Committee s report, three new bills were presented to the Tanzanian Parliament in late June These purport to make a number of changes to the operating environment for Tanzania s extractive industries with respect to Government ownership, royalties, VAT application, local beneficiation and removal of international legal recourse, amongst others In July, all legislation came into force and some terms of the Acts are being applied Expect supplementary regulations to set out the proposed practical implementation We are monitoring the impact of the new legislation in light of our Mineral Development Agreements with the Government To enable sale of doré to continue, we are paying increased royalty rate of 6%, and separate recently imposed 1% clearing fee on exports, under protest, without prejudice to our legal rights under the MDAs In July, Acacia subsidiaries served arbitration notices for Bulyanhulu and Buzwagi A necessary step to protect the Company in light of the ongoing dispute Our preferred outcome remains a negotiated settlement with the Government We expect discussions to be wide ranging and incorporate other issues, such as local ownership legislation 2017 Interim Results Presentation 6

7 Major Contributor to Tanzania Tanzania continues to receive significant benefits from our mines In H we paid US$53 million in taxes and royalties in Tanzania Includes corporate taxes of US$17.3 million Royalties of US$18.6 million Without export ban, would have paid a further US$7 million in royalties Payroll and other taxes of ~US$17.1 million Paid US$1.6 million in local service levies in H1 US$1.3 million more than required under our MDAs Second payment of US$1.2 million due in July 30% lower than if there were no export ban Implemented 6 large-scale social infrastructure projects during H1, with a further 10 underway Projects positively impacting ~40,000 Tanzanians 2017 Interim Results Presentation 7

8 Operations Review

9 $ / ounce Production (koz) Grade (g/t) North Mara Q2 Review Continued strong performance TRIFR of 0.23, with 2 Lost Time Injuries in H1 Produced 83koz, 17% below Q % of production is doré Lower grades driven by increased proportion of underground ore from lower grade Gokona West Continued strong cost performance with AISC of US$758/oz 6% higher than in Q2 2016, but with 17% lower production Development rates decreased during the quarter due to work permit issues though the full year plan remains on track Improved relations maintained with community due to investment over past few years, despite difficult operating environment Production & Head Grade Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Production (OP) Production (UG) Head Grade All In Sustaining Cost per Ounce 1, Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 9

10 Gokona Positive Definition Drilling Targeting an increase in ounces to sustain an UG life of mine in excess of 10 years 2 year programme of 75,000 metres underway H1 drilling adjacent to the defined stoping blocks at Gokona East Zone and west of the Gokona Fault to test the faulted extension of the East Zone Successfully extended the wide and high grade gold mineralisation, with intersections including: 12.5g/t Au 1130mRL - Level Plan 10.4 g/t Au 64.7g/t Au 59.9g/t Au 40.8g/t Au 10.9g/t Au 42.7g/t Au 38.2 g/t Au 14.7 g/t Au g/t Au *Note all drill intersections down-hole thickness and uncut 2017 Interim Results Presentation 10

11 Nyabirama Continued Successful Drilling Extended high grade quartz-vein lode structures to a vertical depth of approximately 950 metres below surface Drilling beneath open pit continuing to intersect high grades from multiple lodes, including: 5.1 g/t Au from 397m 9.1 g/t Au from 428m NBD0149A g/t Au from 873m incl. 198g/t Au from 874m 4.8 g/t Au from 890m 51.9 g/t Au from 592m incl. 280g/t Au from 594m 10.8g/t Au from 264m, 26.7g/t Au from 325m, and 9.50g/t Au from 464m 26.5g/t Au from 272m 13.1g/t Au from 230m Initial block model is being developed to allow an assessment of underground potential Targeting smooth transition to underground post completion of the open pit in Interim Results Presentation 11

12 $ / ounce Production (koz) Grade (g/t) Bulyanhulu Q2 Review Export ban impacting on productivities TRIFR of 0.73, well below prior year Produced 59koz, 25% lower than Q koz of doré and 25koz of concentrate Underground production of 50koz impacted by lower productivities Led to lower tonnes and lower grades than plan Full year output expectation now 10% lower than previously planned AISC of US$1,558/oz was significantly higher than Q2 16 primarily due to lower sales If sales equaled production AISC would have been US$1,140/oz Continuing to stockpile gold/copper concentrate in containers at site 502 containers stuffed at quarter end* Status quo not sustainable beyond end of Q3 * Includes containers at Dar es Salaam Port Production & Head Grade ,600 1,400 1,200 1, Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q Production (UG) Production (Tails) Head Grade (ROM) All In Sustaining Cost per Ounce ,300 1,061 1,229 1, AISC if sales = production 1,140 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 12

13 $ / ounce Production (koz) Grade (g/t) Buzwagi Q2 Review Delivering against plan TRIFR of 0.18 with no Lost Time Injuries Production of 66koz was 53% above Q2 2016, and 10% ahead of Q koz in doré and 40koz in concentrate Increased production driven by mining higher grade ore from the main ore zone at the bottom of the pit AISC of US$762/oz was 32% lower than Q2 16 Primarily driven by increased production base Production & Head Grade Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Production Head Grade Move to bulk storing gold/copper concentrate at site towards the end of Q2 816 containers stuffed at quarter end* 1,213 tonnes bulk stored in a protected shed Expect to see production levels maintained during H2 Mining on schedule for completion by the end of 2017, with a further 3 years stockpile processing * Includes containers at Dar es Salaam Port All In Sustaining Cost per Ounce 1,600 1,400 1,246 1,200 1,124 1,076 1,056 1, ,171 1, , Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Cash Cost Sustaining Capital Capitalised Development Other 2017 Interim Results Presentation 13

14 $ / ounce Production (koz) Consolidated H Performance Continuing strong operational performance, sales impacted by ban Importantly, even with current uncertainty, focus on safety remains strong TRIFR down 49% from H koz of gold production, 4% above H1 16 Highest production period in company history Gold sales were 116koz lower than production Performance underpinned by planned step up at Buzwagi, good performance at North Mara, offsetting Bulyanhulu performance Continued strong cost performance, with AISC of US$893/oz If all production sold, AISC would have been US$800/oz Less than half the peak AISC 5 years ago Production ,200 1, ,113 1,111 1,090 1, All In Sustaining Cost per Ounce H1 15 H2 15 H1 16 H2 16 H1 17 Buzwagi Bulyanhulu North Mara AISC if sales = production H1 15 H2 15 H1 16 H2 16 H1 17 AISC AISC ex RSU 2017 Interim Results Presentation 14

15 Financial Review

16 Financial Highlights Financial Performance H H % change Revenue US$m (22)% EBITDA 1 US$m (13)% Adjusted EBITDA 1,2 US$m (8)% Net earnings/ (loss) 2 US$m 62.5 (6.1) nm Basic earnings/ (loss) per share (EPS) (cents) 2 US cents 15.3 (1.5) nm Adjusted net earnings 1,2 US$m % Adjusted earnings per share (AEPS) (cents) 1,2 US cents % Dividend per share (cents) US cents nm Cash and cash equivalents US$m (38)% Cash generated from operating activities US$m nm Working capital movement US$m (159.7) (16.3) nm Capital expenditure 3 US$m % Total borrowings US$m (25)% Cash cost per ounce sold US$/oz (10)% AISC per ounce sold US$/oz (5)% 1 These are non-ifrs measures. Refer to page 23 for definitions 2 EBITDA, adjusted EBITDA, net (loss)/earnings, (loss)/earnings per share, adjusted net earnings, adjusted earnings per share and cash generated from operating activities include continuing and discontinued operations in Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments Interim Results Presentation 16

17 US$ millions AISC Bridge AISC H vs H , ,10 0 to 1, AISC H Cash cost Share based payments Sustaining capital Investment in inventory Sales ounce impact Co-product revenue Capitalised development Other AISC H Interim Results Presentation 17

18 US$ millions Cash flow impacted by export ban. Cash flow bridge Discretionary spend / non-recurring spend ,10 0 to 1, Interim Results Presentation 18

19 US$ millions With a significant working capital build Contained in concentrate on hand: Gold: 127 koz Copper: 8.3m lbs Silver: 107 koz ,10 0 to 1, Total working capital Dec 2016 Indirect tax incurred Gold inventory Supplies Receivables Other elements Total working capital June Interim Results Presentation 19

20 US$ millions Indirect taxes continuing to build-up ,10 0 to 1, Total indirect tax receivable 31 Dec 2016 Indirect tax incurred Indirect tax refunded through offset Revaluation adjustments and write-offs Total indirect tax receivable 30 Jun Interim Results Presentation 20

21 US$ millions koz Continued focus on cost management Strict cost discipline Reduction in AISC not just a result of increased production 6% reduction in direct mining costs over the 5 half-year periods, mainly in: Labour Consumables Overheads Direct Mining Costs* vs Production H H H H H Direct Mining Costs* Production * Pre capitalisation 2017 Interim Results Presentation 21

22 US$ millions Deferring non-essential capital spend to preserve liquidity Incurred capital expenditure of US$92 million in H US$23 million on sustaining capital Total Liquidity 400 US$64 million on capitalised development/stripping US$6 million on expansionary drilling Full year guidance reduced by 15% to US$ million Production-critical capital still being spent 200 Deferring sustaining capital projects at Bulyanhulu and North Mara Non-essential water/ electrical projects HME Lower capitalised development and stripping expectations 50 0 * 11,000 US$1,200/oz net of royalties 2017 Interim Results Presentation 22

23 Discovery

24 Greenfields Progress & H2 Plans Continued systematic approach to exploration across each of the projects Methodical approach to understanding geology, alteration and structure to develop targets Mapping, surface sampling and rock chip sampling programmes precursor to drilling Focus in H1 on delivering initial resource in Kenya and subsequently increasing its scale Focus in H1 on identifying new targets in West Africa across our portfolio Q3 wet season in West Africa and reduced drilling activity in Kenya reduces H2 spend Currently working on unchanged full year budget of ~US$25million Greenfield Projects H1 2017A Spend H1 2017A Drill Metres H2 2017E Budget H2 2017E Drill Metres 2017E Budget 2017E Drill Metres Kenya US$8.0m 34,020 US$4.8m ~21,000 US$12.8m ~55,000 Burkina Faso US$5.7m 63,010 US$2.4m ~62,000 US$8.1m ~125,000 Mali US$1.5m 7,466 US$0.4m ~2,000 US$1.9m ~9,000 Tanzania US$0.4m - US$0.2m - US$0.7m - Generative US$0.4m - US$0.6m - US$1.0m - Total US$16.0m 104,496 US$8.5m ~85,000 US$24.5m ~190, Interim Results Presentation 24

25 Focus on Liranda Corridor - Kenya Liranda Corridor delivered high grade maiden Inferred resource of 12.1g/t Au with upside potential Maiden Inferred Resource on Acacia Prospect in H Targeting resource of up to ~10g/t Au by year end First step to realising multi-million ounce potential from the corridor Delays in assay turnaround holding back results 8 of 23 holes awaited have VG Scoping study to commence during H2 post resource update First drill testing of potential lodes along strike has intersected visible gold 2017 Interim Results Presentation 25

26 Focus on West Africa Houndé & SMSZ 2017 shaping up to be an exciting year with new gold zones being identified in all our projects in the Houndé Belt Resource expansion drilling ongoing on Tankoro resource area at the South Houndé JV High Grade intersections at MC Zone (Chewbacca) Phantom and Phantom East offering possible near-surface extensions Regional drilling across 2,700sqkm Houndé Belt land package is yielding positive results Multiple gold corridors confirmed by reconnaissance Aircore and RC drilling of large-scale gold-in-soil anomalies 6 drill rigs active across all Houndé projects at end of June 2017 Mapping and rock chip sampling identifying new targets throughout the Central Houndé project Regional exploration drill programmes testing gold-soil anomalies and artisanal sites along the Senegal-Mali Shear Zone returning positive results High grade intersections of 18.7g/t and 5.62g/t from reconnaissance lines 1 x RC drill rig testing soil anomalies & IP geophysical targets 2017 Interim Results Presentation 26

27 Outlook

28 Outlook Focused on resolution of current dispute and operational delivery Three mines producing and selling gold doré whilst stockpiling gold/copper concentrate 127koz of gold, 8.3mlbs of copper and 107koz of silver stockpiled Production guidance range of 850,000 and 900,000 ounces unchanged Now targeting lower end of range due to lower expected output at Bulyanhulu Still expect a fifth consecutive year of increased production Continue to expect AISC to be between US$880 US$920 per ounce Incorporates increased royalty and clearing fee of 3% of revenues Aided by a reduction in expected capex to US $ million as we defer non-essential spend Continuing to deliver success through the drill bit across Africa Targeting increase in resource in West Kenya to 2Moz by the end of 2017 Remain committed to Tanzania and will work to achieve a negotiated resolution to the dispute which remains the preferable outcome for all parties 2017 Interim Results Presentation 28

29 Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

30 H Operating Metrics Bulyanhulu* North Mara Buzwagi Group** H H H H H H H H Key operational information: Ounces produced oz 122, , , , ,084 80, , ,025 Ounces sold oz 81, , , ,840 53,094 80, , ,963 Cash cost per ounce sold US$/oz , AISC per ounce sold US$/oz 1, , Copper production klbs 2,811 3, ,253 4,900 9,065 8,427 Underground: Ore tonnes trammed/hoisted kt Open Pit: Tonnes mined kt - - 7,750 7,234 9,564 11,423 17,314 18,657 Ore Tonnes mined kt - - 1,536 1,395 4,951 2,605 6,487 4,000 Processing information: Ore milled kt 1,246 1,282 1,419 1,436 2,195 2,182 4,860 4,900 Head grade g/t Mill recovery % 90.7% 89.3% 92.5% 91.4% 96.7% 94.6% 93.2% 92.6% Bulyanhulu mining and processing information represent ROM only Tailings reprocessing statistics are as follows: H1 17 Ore Milled 1.4g/t, recoveries of 47.2% for 17,946 ounces recovered. H1 16 Ore Milled 1.5g/t, recoveries of 45.9% for 16,986 ounces recovered ** Group figures for ore milled, head grade and mill recovery exclude reclaimed tailings in processing information, Group figures for ore mine d exclude TSF material 2017 Interim Results Presentation 30

31 Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

32 West Kenya Project Declared maiden high grade inferred resource in February 2017 Acquired current ~1,600sqkm project in 2012 Increased ownership in primary licences to 100% for US$5m in 2016 Declared NI compliant Inferred Resource 1.31 million ounces of gold at 12.1 grams per tonne in H Resource located solely on 1 of 5 prospects (Acacia) in prospective corridor Near term upside from ongoing drilling at the Bushiangala, Shigokho & Shibunane prospects Mineralisation averages ~3 metres wide, dependent on the zone, hosted by a mafic volcanic sequence with recoveries >90% Strike lengths vary between 200m and 600m Resource is currently defined down to a vertical depth of 750m First step in the delineation of a multi-million ounce high-grade gold corridor Tonnes Grade (Au g/t) Ounces Inferred Resource 1 3,461, ,305,700 1 The Mineral Resource has been estimated by Ms C Pitman, P.Geo.(Ontario) of AdiuvareGE. in conformity with the CIM Mineral Resources and Mineral Reserves Estimation Best Practice Guidelines (CIM, 2003) and are classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (CIM, 2014) Interim Results Presentation 32

33 Liranda Corridor New targets evolving Potential for a multi-million ounce gold camp emerging Primary focus of 2017 drilling Focus of 2016 drilling Potential zones intersected in LCD0181, 183, 184, 185 with varying intensities of shearing, sulphide-carbonate-sericite +/- green mica alteration and VG was observed in LCD0181 all assays pending Potential further upside being tested now 2017 Interim Results Presentation 33

34 Burkina Faso Houndé Belt progress Four joint venture projects covering ~2,700sqkm of the Houndé Belt across 125km of favourable geology & structure Earning between % equity through in-ground exploration spend on a large and under-explored land package Focus on increasing scale and grade of existing resource at Tankoro (50% equity) whilst discovering and delineating additional stand alone and satellite ore bodies H Highlights: High grade intersections on MC Zone of Tankoro Resource at South Houndé JV Gold anomalism in Aircore drilling confirms prospective 15-20km long Ouangoro Trend on South Houndé JV (see next slide) High grade gold mineralisation in drilling and in rock chip samples on the Central Houndé JV Project Extensive gold anomalism in Aircore drilling along several structural corridors on Pinarello JV Extensive gold-soil anomalies across Frontier JV project on regional soil sampling traverses associated with lithostructual targets H Priorities: RC drilling on South Houndé and Central Houndé for a resource extensions and a new discovery(s) Large Aircore drilling programme targeted at confirming and extending mineralised trends and identifying new targets on remainder of the joint venture projects 2017 Interim Results Presentation 34

35 South Houndé/Pinarello/Frontier JV s New Gold Corridors Emerging MC Zone 12.2g/t, 6.83g/t Pinarello JV 0.51g/t Au 0.67g/t Au 0.86g/t Au 0.26g/t Au 0.61g/t Au 0.25g/t Au 0.47g/t Au 1.80g/t Au 0.27g/t Au 1.04g/t Au 1.34g/t Au 1.73g/t Au 100km 0.86 g/t Au from 46m in AC g/t Au in AC g/t Au from 62m in AC g/t Au from 6m in AC2798 incl g/t Au from 8m 0.42 g/t Au from 10m in AC g/t Au from 42m in AC g/t Au from 68m in AC g/t Au from 2m in AC2896 7km trend Ouangoro Trend 1.17 g/t Au from 12m in AC1154 (pre2017) incl. 2.1 g/t Au from 4m (pre2017) 0.36 g/t Au from 18m in AC g/t Au from 2m in AC g/t Au from 16m in AC2319 Frontier JV 15 new km-scale gold-soil anomalies identified 1.04 g/t Au from 78m in AC g/t Au from 30m in AC g/t Au from 50m in AC2969 4km trend 0.59 g/t Au from 12m in AC Interim Results Presentation 35

36 Central Houndé JV progress Several large-scale gold-in-soil anomalies currently being tested with RC drilling; new zones emerging from rock chip sampling High Grade intersections returned from Legue- Bongui Corridor including 28.2g/t Au, 3.75g/t Au and 84g/t Au Broad low grade zones also intersected Drilling to date has only tested a small area of 8km x 3km corridor with multiple structural trends associated with gold mineralisation High Grade rock chips results returned from Legue NW corridor up to 77.4g/t gold Several parallel NW-trending quartz veins and shear zones mapped associated with positive rock chip results Several large gold-in-soil anomalies in northern licences with favourable geology, associated shear zones and quartz veining Legue NW Corridor 21 of 49 Rock chips returned >0.1g/t Au including samples returning grades of 5.95g/t, 19.1g/t, 28.1g/t, 62.8g/t and 77.4g/t gold from quartz veins Legue-Bongui Corridor Encouraging initial RC/DD drill results: 1.45g/t Au from 48m 1.12g/t Au from 156m 1.11g/t Au from 151m 28.2g/t Au from 155m 3.75g/t Au from 31m 84.8g/t Au from 190.8m 2017 Interim Results Presentation 36

37 Mali Positive drilling on Senegal-Mali Shear Zone Excellent ground position on Senegal-Mali Shear Zone (SMSZ) with regional scale gold anomalies & early positive indications from drilling Known gold prospects, artisanal sites, and large regional gold anomalies along SMSZ Hold five exploration permits covering 191 sqkm 2017 drilling programmes testing several multi-kilometre gold-soil and IP chargeability anomalies on Bane/Tintinba licences with better results of: 18.7 Au g/t from 52m 5.62 g/t Au from 75m 0.55g/t Au from 74m 1.11 g/t Au from 29m 0.45g/t Au from 6m, inc. 1.01g/t Au from 21m 0.71g/t Au from 13m Initial RC drilling on Bourdala Project intersects broad low grade mineralisation including 0.31g/t and 0.23g/t Target generation on new licences and planned 4,000 metres of drilling during H Interim Results Presentation 37

38 Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

39 Reserves and Resources (Mines) Bulyanhulu- Underground Tonnes (000's) 2016 YE 2015 YE Grade Au Ounce Tonnes Grade Au (g/t) (000's) (000's) (g/t) Ounce (000's) Proven and probable 15, ,910 20, ,925 Mineral Resource 13, ,982 22, ,010 Inferred 24, ,587 19, ,903 Bulyanhulu- Tailings Proven and probable 6, , Buzwagi Proven and probable (open pit) 5, , North Mara - Nyabirama North Mara - Gokona UG North Mara - Nyabigena UG North Mara - Nyabirama UG Proven and probable (stockpile) 9, , Mineral Resource 25, ,024 44, ,911 Inferred 2, , Proven and probable (open pit) 16, ,110 16, ,167 Proven and probable (stockpile) 3, , Mineral Resource 15, ,018 10, Inferred 3, Proven and probable 3, , Mineral Resource 2, , Inferred 6, , Proven and probable Mineral Resource 1, Inferred Proven and probable Mineral Resource 1, Inferred Total Proven and probable 60, ,625 65, ,750 Mineral Resource 59, ,539 78, ,004 Inferred 36, ,523 28, , Interim Results Presentation 39

40 Reserves and Resources (Exploration) Tankoro (50%) Proven and probable Mineral Resource Inferred Tonnes (000's) 2016 YE 2015 YE Grade Au Ounce Tonnes Grade Au (g/t) (000's) (000's) (g/t) Ounce (000's) , , Nyanzaga (90%) Proven and probable (Tusker+Kilimani) Mineral Resource 22, ,495 97, ,102 Inferred 4, , Golden Ridge Proven and probable Mineral Resource Inferred , , , , Total Exploration Proven and probable Mineral Resource Inferred , , , ,812 27, ,667 4, Interim Results Presentation 40

41 Appendix Operating Metrics Exploration & Development Reserves & Resources Aerial Mine site view

42 North Mara: Aerial view Gokona Gokona Gokona O/P & U/G Nyabirama Airstrip Nyabirama Raw water dam Nyabirama O/P Nyabigena (closed O/P) TSF Process Plant 2017 Interim Results Presentation 42

43 Bulyanhulu: Aerial view Waste Rock Storage Shaft Camp Airstrip Process Plant Tailings Storage 2017 Interim Results Presentation 43

44 Mine Buzwagi: site Aerial view Water Storage ROM Pad Process plant Water harvest TSF Camp Pit Waste Rock storage 2017 Interim Results Presentation 44