LSE:ACA. Acacia Mining plc Preliminary Results Presentation. February 2018

Transcription

1 LSE:ACA Acacia Mining plc 2017 Preliminary 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 2017 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 Preliminary Results Presentation 2

3 Full Year Review Resilience in the face of challenges Total Recordable Injury Frequency Rate (TRIFR) of 0.45, 39% lower than production of 768koz, 7% lower than 2016, with gold sales of 593koz Sold 573koz of gold in doré, in line with doré production; and Sold 20koz of gold in concentrate, 10% of total concentrate production, driven by impact of export ban 2017 AISC of US$875/oz, 9% lower than 2016 and below full year guidance If sales matched production, AISC would have been US$798/oz Cash balance fell from US$318 million to US$81 million at 31 December 2017 Concentrate inventory valued at US$286 million (1) at year end pricing currently stockpiled in Tanzania Incurred post-tax impairment of US$644 million which impacted earnings (1) Gross value at year-end, net value of approximately US$240 million 2017 Preliminary Results Presentation 3

4 Taken Decisive Action Effectively managing changes in the operating environment 2017 was impacted by events beyond our control Took decisive action to stabilise our business during the year Brought forward bypassing flotation circuit at Buzwagi to Q to stop production of concentrate Bulyanhulu moved to reduced operation state in Q Sale of non-core royalty relating to Houndé project in Burkina Faso generated US$45 million In Q3 bought options to provide a floor price of US$1,300/oz for 210,000 ounces New highly experienced management continuing to drive positive actions Appointment of Asa Mwaipopo as Managing Director, Tanzania Consolidation of Bulyanhulu and Buzwagi Management team under Benedict Busunzu Combined management team comprises five Tanzanians and one international employee Extension of option arrangements to cover majority of H doré production 2017 Preliminary Results Presentation 4

5 Update on Tanzania

6 Overview of Government Situation and the Concentrate Ban In March 2017, the Tanzanian Ministry of Energy and Minerals announced a ban on the export of metallic mineral concentrates In June, Barrick and the Tanzanian Government entered into discussions to reach a resolution to the dispute In September 2017, Acacia announced intention to move to reduced operations at Bulyanhulu and made processing changes at Buzwagi to solely produce doré going forward Q Q Q Q During Q2, two Presidential Committees announced findings post investigations into mineral content and historic exports of gold/copper concentrates Acacia fully refuted the implausible findings of both committees In July, Acacia received adjusted tax assessments totaling US$190bn for alleged unpaid taxes and penalties. In the same month Bulyanhulu Gold Mine Limited and Pangea Minerals Limited (Buzwagi) commenced international arbitration to protect our position In October, Barrick and GoT announced they had agreed a Framework for the resolution of the disputes Detailed proposal not yet presented to Acacia Barrick targeting a final proposal in H Any settlement will need Acacia approval Unsold concentrate containing 185,800 ounces of gold, 12.1 million pounds of copper and 158,900 ounces of silver currently stockpiled in Tanzania 2017 Preliminary Results Presentation 6

7 Tanzanian Legislative Changes Sector-wide legislation introduced during 2017 Following publication of Second Presidential Committee s findings three new bills were presented to the Tanzanian Parliament in late June These made 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 2017, all legislation came into force and some terms of the Acts are being applied 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 2017, 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 In January 2018, regulations underpinning the new laws were issued The impact of these are still being analysed 2017 Preliminary Results Presentation 7

8 Overview of the Framework Current discussion between Barrick and Government of Tanzania In October 2017, Barrick and the GoT announced they had agreed a framework for a proposed new partnership between Acacia and the GoT As announced by Barrick, the key terms of the proposal included that: Economic benefits from the mines would be shared between Acacia and the GoT on a 50/50 basis going forward To be delivered in the form of royalties, taxes and a 16% free carry interest in the operating mines; Establishment of a new Tanzanian operating company to manage the mining operations; A number of social licence to operate projects and commitments; Further work with the GoT to advance concepts for increasing in-country beneficiation of gold; Acacia would make a US$300 million payment, staged over time, in respect of outstanding tax claims Since October, Barrick and the GoT have continued discussions aimed at agreeing and documenting the details of the proposed framework Barrick has announced that they are targeting completion in H Acacia continues to support Barrick in its discussions with the Tanzanian Government, and pending a comprehensive settlement continues to reserve its rights Acacia is not directly involved in the ongoing discussions, and awaits a detailed proposal and documented final agreements, which will be reviewed by an Independent Committee of the Company s Directors 2017 Preliminary Results Presentation 8

9 Contribution to Tanzania We continue to be a significant part of the Tanzanian economy In 2017 we paid US$143 million in taxes and royalties in Tanzania Includes corporate taxes of ~US$34.6 million Royalties of ~US$44.9 million Payroll related taxes of ~US$46.1 million Withholding tax, import duties and other taxes of ~US$17.5 million Acacia, and its predecessor companies, have contributed over US$1 billion in taxes since we started operating in Tanzania We have also spent over US$3 billion with local businesses since 2010 In 2017, our sustainable communities projects positively impacted over 60,000 people Last 10 Years Annual Contributions to Tanzania ($m) (1) Includes royalties, corporate tax, payroll tax, withholding tax, import duties, and fuel and local levies 2017 Preliminary Results Presentation 9

10 Operations Review

11 $ / ounce Production (koz) Grade (g/t) North Mara Continuing strong performance and primary driver of free cash flow Produced 324koz at AISC of US$803 per ounce sold Gokona U/G tonnage continued to ramp up although grades below 2016 s bonanza levels Focus on the lower grade West Zone Nyabirama Stage 3 open pit completed with all future open pit mining taking place in the Stage 4 pit Expect 2018 production to be in line with 2017 with AISC approximately 5% higher Continuing to invest in expansionary drilling programmes at Gokona Doubled underground Reserve in 2017 Beginning to unlock the long term potential of the mine through drilling programmes Targeting keeping production above 300koz for next 10 years Production & Head Grade Production (OP) Production (UG) Head Grade All In Sustaining Cost per Ounce 1,600 1,400 1,227 1, , Cash Cost Sustaining Capital Capitalised Development Other Preliminary Results Presentation 11

12 Gokona Underground Overview Excellent initial results with ongoing reserve life extension and strong high grade results Underground Operational Journey Converted Stage 3 of the Gokona open pit into an underground operation in 2015 Already exceeded LOM production envisaged in feasibility study Drilling programmes are targeting adding significant resource additions at Gokona over the coming years Further potential along strike at Nyabigena Resource Progression (koz) 2017 Drilling Success 2017 drilling successfully extended the wide and high grade gold mineralisation in the Gokona East Zone, with intersections including: 12.5g/t Au 10.4 g/t Au 64.7g/t Au 59.9g/t Au 40.8g/t Au 10.9g/t Au g/t Au 38.2 g/t Au , g/t Au g/t Au Reserve Resource Mined Material *Note all drill intersections are down-hole thickness and uncut 2017 Preliminary Results Presentation 12

13 Gokona U/G Significant Extension Potential Planning to undertake 73,000 meters of additional infill and extensional drilling in 2018 and 2019 Drilled 33,000 metres in 2017 Doubled reserve from 0.6Moz to 1.3Moz during 2017 Significant infill potential across the deposit Yet to test below 900mRL from underground drill platforms with historical surface drilling identifying potential upside Legend: Measured Resources Indicated Resources Inferred Resources Unclassified Mineralisation 2017 Preliminary Results Presentation 13

14 Nyabirama Underground Long Term Plan Proposed Footwall Exploration Decline 2017 Surface Drilling Success 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 Underground definition drill programmes designed to be drilled from initial exploration decline ~41km infill and extensional drilling designed from exploration decline Initial block model produced for conceptual underground mine design Permitting process underway for exploration decline 2017 Preliminary Results Presentation (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 *Note all drill intersections are down-hole thickness and uncut 14

15 $ / ounce Production (koz) Grade (g/t) Bulyanhulu Transition to reduced operations successfully completed Produced 175koz at AISC of US$1,373/oz in 2017 Production impacted by uncertainty from concentrate ban and moved to reduced operations ( ROP ) in Q Sales of 108koz trailed production by 39% due to the concentrate ban Incurred US$20 million of ROP costs in Q4, together with AP outflow of US$30 million Further US$5m of cost and US$5m of AP outflow due in Q In 2018 expect production of ~30koz at AISC of US$1,000/oz from re-claimed tailings Assuming resolution of concentrate ban, U/G expected to see phased restart in 2019 Undertaking optimisation study to assess best restart option Production & Head Grade Production (UG) Production (Tails) Head Grade (ROM) All In Sustaining Cost per Ounce 1,600 1,400 1,344 1,266 1,253 1,373 1,200 1,058 1, Cash Cost Sustaining Capital Capitalised Development Other 2017 Preliminary Results Presentation 15

16 Potential Re-start Options Optimisation Study Underway to de-risk the mine Study work currently underway to assess whether there are alternative restart options for the underground mine that add value and de-risk the mining operations The initial trade-off studies and evaluation work (Phases 1 and 2) have been completed and the Study has moved into Phase 3 (Optimisation Study) which is expected to be completed in H The Optimisation Study aims to: Evaluate multiple underground restart options for mining, processing and general operations Benchmark historical performance (productivity and cost) against zero base estimates Evaluate potential impact of any negotiated settlement with the Government of Tanzania on any operating scenario The Optimisation Study will consider: Mining method, sequence and productivity Ore haulage and hoisting optimisation Pastefill and Mining Services optimisation Site water quality and quantity management Surface infrastructure optimisation and requirements including Logistics, Personnel and Security optimisation Future capital requirements 2017 Preliminary Results Presentation 16

17 $/ounce Production (koz) Grade (g/t) Buzwagi Open pit mining effectively complete, moving to stockpile treatment Produced 269koz in ,000 ounces above plan Due to concentrate ban were only able to sell 160koz during the year In September brought forward planned change to process flowsheet to solely produce doré AISC of US$667 per ounce was driven by higher production Inventory adjustment largely offsets lack of sales In 2018, expect step down in production to ~100koz as the mine processes lower grade stockpiles AISC expected to increase to ~US$1,100/oz, impacted by lower production and release of non-cash high cost inventory amounting to US$200/oz Production & Head Grade All In Sustaining Cost per Ounce 1,800 1,600 1,400 1,200 1, , , ,187 1,095 1,046 1, Production (OP) Head Grade Cash Cost Sustaining Capital Capitalised Development Other Preliminary Results Presentation 17

18 Financial Review

19 Financial Highlights Financial Performance % change Revenue US$m 751,515 1,053,532 (29)% EBITDA 1 US$m 257, ,388 (38)% Adjusted EBITDA 1,2 US$m 310, ,903 (24)% Net earnings/ (loss) US$m (707,394) 94,944 nm Basic earnings/ (loss) per share (EPS) (cents) US cents (172.5) 23.2 nm Adjusted net earnings 1,2 US$m 146, ,021 (9)% Adjusted earnings per share (AEPS) (cents) 1 US cents (9)% Full Year dividend per share (cents) US cents nm Cash and cash equivalents US$m 80, ,791 (75)% Cash generated from operating activities US$m (22,972) 317,976 nm Working capital movement US$m (313,100) (58,500) nm Capital expenditure 2 US$m 149, ,898 (24)% Total borrowings US$m 71,000 99,400 (29)% 1 These are non-ifrs measures. 2 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments Preliminary Results Presentation 19

20 US$ millions AISC Bridge AISC 2017 vs , ,10 0 to 1, AISC 2016 Cash cost Share based payments Capitalised development Sustaining capital Investment in inventory Sales ounce impact Co-product revenue Other AISC Preliminary Results Presentation 20

21 US$ millions Cash flow impacted by export ban. Cash flow bridge Discretionary spend / non-recurring spend ,10 0 to 1, Preliminary Results Presentation 21

22 US$ millions With a significant working capital build Contained in concentrate on hand: Gold: 186koz Copper: 12.1m lbs Silver: 159 koz ,10 0 to 1, Total working capital Dec 2016 Net indirect tax incurred Gold inventory Other Payables Non-cash adjustments Total working capital Dec Non-cash working capital adjustments relate to impairments allocated to supplies inventory ($30M), discounting of indirect taxes ($13.3M) and foreign exchange revaluation differences ($5M) Preliminary Results Presentation 22

23 US$ millions Indirect taxes continuing to build-up ,10 0 to 1,175 0 Total indirect tax receivable 31 Dec 2016 Indirect tax incurred Indirect tax refunded through offset Discounting adjustment Revaluation adjustments and write-offs Total indirect tax receivable 31 Dec Preliminary Results Presentation 23

24 US$'m Adjusted Net Earnings Bridge (16) (100) (200) (300) (400) (707) 644 (500) (600) (700) (800) Net loss Net impairment charges Provision for uncertain tax positions Restructuring cost Discounting of indirect taxes One-off legal settlements Buly exit costs Tax impact of adjustments Adjusted net earnings 2017 Preliminary Results Presentation 24

25 Impairment Analysis Carrying Value Review undertaken at year-end Carrying value calculations made in accordance with applicable accounting standards by reference to the key terms of the Framework announcements by Barrick and the GoT in October 2017 Additional discounting to reflect uncertainties around the final terms of any comprehensive settlement No conclusions can be made as to whether any particular terms of settlement would be approved by Acacia based on the review Demonstrated a potential reduction in value at all three assets Buzwagi and North Mara have sufficient headroom above their current carrying values. US$ 000 Total Impairment Allocated to: Bulyanhulu Nyanzaga Goodwill 121,546 - Intangible assets - 12,261 Supplies inventory 30,000 - Plant, Property and Equipment 686,735 - Deferred tax impact (208,913) - Total allocated 632,009 12,261 Due to the long life of Bulyanhulu and impact of ROP recorded a net impairment charge US$632m Includes a pre-tax write-down of US$122m for goodwill Further impairment charge of US$12m at Nyanzaga Additional tax provision of US$172m bringing total for uncertain tax positions to US$300m 2017 Preliminary Results Presentation 25

26 Discovery

27 An Exciting Pan African portfolio Continuing to invest, targeting future discoveries Mali 5 permits across 191 sq km Senegal Mali Shear Zone SMSZ host to 50+Moz Over 25 targets identified 2017 spend US$1.7 million 2018 budget - US$1.6 million Kenya 2,200 sq km land package First mover advantage Declared 12.6g/t Inferred Resource in spend US$12.0 million 2018 budget US$6.4 million Burkina Faso 4 JVs over 2,700 sq km Houndé Belt host to 10Moz+ 2.1 g/t inferred resource on South Houndé JV +65 targets across portfolio 2017 spend US$9.5 million 2018 budget US$5.7 million Proterozoic-Archean volcano-sedimentary belts Tanzania Nyanzaga Project in joint venture with OreCorp As part of a FS OreCorp reported an updated Mineral Resource Estimate with an M&I Resource of 2.7 million 4.06g/t 2017 Preliminary Results Presentation 27

28 Outlook

29 Outlook Believe our operations are now well placed to deliver in 2018 Production guidance range of 435,000 and 475,000 ounces Step-down from 2017 due to Bulyanhulu ROP and Buzwagi movement to stockpile treatment All gold produced in 2018 will be in saleable doré form Expect AISC of between US$935 US$985 per ounce Impacted by US$200/oz non-cash inventory cost at Buzwagi (US$50/oz on a group basis) Incorporates increased royalty and clearing fee of 3% of revenues Capital expenditure of US$100 million Primarily at North Mara Taking opportunity of ROP at Bulyanhulu being to progress essential capital spend on plant of ~US$10 million Continuing to invest in exploration success across Africa Expansionary drilling at Gokona Underground of US$5 million US$15 million greenfield exploration budget 2017 Preliminary Results Presentation 29

30 Conclusion Managing a challenging situation effectively Taken decisive action to stabilise the business over last 12 months Experienced new management team in place Our Tanzanian assets are increasingly being led and operated by Tanzanian employees Significant upside at North Mara being unlocked through the drill bit Supporting Barrick in its discussions with the Tanzanian Government Returning the business to free cash generation and delivering value for all of our stakeholders 2017 Preliminary Results Presentation 30

31 Appendix Operating Metrics Exploration & Development Reserves & Resources

32 FY 2017 Operating Metrics Bulyanhulu* North Mara Buzwagi Group** Key operational information: Ounces produced oz 175, , , , , , , ,705 Ounces sold oz 107, , , , , , , ,743 Cash cost per ounce sold US$/oz , AISC per ounce sold US$/oz 1,373 1, , Copper production klbs 3,906 6, ,991 9,847 12,897 16,239 Underground: Ore tonnes trammed/hoisted kt ,250 1,349 Open Pit: Tonnes mined kt ,299 15,556 15,368 21,585 30,667 37,141 Ore Tonnes mined kt - - 3,147 2,752 9,309 5,317 12,456 8,067 Processing information: Ore milled kt ,841 2,830 4,256 4,404 7,709 8,167 Head grade g/t Mill recovery % % 92.0% 94.3% 94.5% 92.4% 92.3% Bulyanhulu mining and processing information represent ROM only Tailings reprocessing statistics are as follows: 2017 Ore Milled 1.4g/t, recoveries of 48.0% for 22,212 ounces recovered Ore Milled 1.4g/t, recoveries of 45.8% for 34,880ounces 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 Preliminary Results Presentation 32

33 Appendix Operating Metrics Exploration & Development Reserves & Resources

34 West Kenya Project Declared maiden high grade inferred resource in 2017 Updated initial Resource from Feb 2017 post drilling programme Drilling increased confidence but saw a marginal decrease in ounces to 12.6 g/t Resource located on 2 of 5 prospects in prospective corridor Near term upside from drilling at the Isulu SE target 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 A scoping study is in progress Tonnes Grade (Au g/t) Ounces Isulu Inferred Resource 1 2,500, Moz Bushiangala Inferred Resource 1 374, ,000 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) Preliminary Results Presentation 34

35 Liranda Corridor New targets evolving Potential for a multi-million ounce gold camp emerging Primary focus of 2017 drilling Focus of 2018 drilling 2017 Preliminary Results Presentation 35

36 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 2017 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 2017 Preliminary Results Presentation 36

37 Tankoro Corridor Extension targets Djimbake Tankoro SW extension Previous AC drilling showed highly anomalous result 1.73g/t Au 2.57g/t Au 4.25g/t Au 1.33g/t Au 1.99g/t Au 2018 planned follow-up with infill and step-out AC traverses as well as some RC and diamond drilling Ben emerging trend Patchy soil anomalies possibly due to transported overburden 2018 follow up IP survey infill + phased AC drilling Ben emerging trend Djimbake 2017 Preliminary Results Presentation 37

38 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 Preliminary Results Presentation 38

39 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 tested several multikilometre gold-soil and IP chargeability anomalies on Bane/Tintinba licenses 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, incl. 1.01g/t Au from 21m 0.71g/t Au from 13m Detailed field follow up with further drill testing planned for H Preliminary Results Presentation 39

40 Appendix Operating Metrics Exploration & Development Reserves & Resources

41 Ounces (koz) North Mara 2017 Reserves & Resources Reserves increased, as depletion offset by drilling Increased reserves by 23% during the year despite depletion of ~350koz Increase of 680koz from Gokona U/G Grade remained flat from both surface & U/G Improved understanding geology structures in Gokona led to the discovery of Golden Banana 2 Geology block model improved to where it reconciles well with actual production Open pit design for Cut 4 was improved adding 100koz of Reserves at Nyabirama Summary Reserves and Resources 1 (Dec 2017) Ore Grade Au Contained Au (Mt) (g/t) (Moz) Surface and Stockpiles Proven Probable Reserves PURPLE: REEF g/t % of reserve 1.00 Measured Indicated Inferred Total R&R Underground Proven Probable Reserves Measured 0.3 YELLOW: 4.99 REEF 1 UPPER EAST 0.04 Indicated g/t 0.62 Inferred 6.0 6% of reserve Total U/G R&R Total Mine R&R Remaining resource at Nyabirama below Cut 4 was converted to an underground Resource Reconciliation factors at Nyabirama open pit were adjusted to more accurately reflect actual production North Mara YoY Change in Reserves 2,500 2, , ,000 1, , Resources are exclusive of reserves - End 2016 Depletion COG and Reconciliation Design Change Model Change End Preliminary Results Presentation 41

42 Ounces (koz) Bulyanhulu 2017 Reserves and Resources Primary changes due to depletion and design changes Summary Reserves and Resources 1 (Dec 2017) Underground Reserves of 4.5Moz at a grade of 9.7g/t 2016 U/G Reserve of 9.8g/t Ounces reduced primarily due to depletion and adjustment of short range designs that were not economic Tailings reserves of 0.2Moz marginally lower due to depletion and model changes Ore Grade Au Contained Au (Mt) (g/t) (Moz) Underground Proven Probable Reserves PURPLE: REEF g/t % of reserve 4.52 Measured Indicated Inferred Total R&R Tailings Proven Probable Reserves M&I Resources increased to 4.2Moz at decreased grade of 8.7g/t 2016 M&I of 8.9 g/t Inferred Resources remained approximately the same Bulyanhulu YoY Change in Reserves 6, , ,000 3,000 5,119 2, ,697 1,000 - End 2016 Depletion CCF Additions Design Change Model Change End Resources are exclusive of reserves 2017 Preliminary Results Presentation 42

43 Ounces (koz) Buzwagi Reserves and Resources Reserves decreased due to depletion Summary Reserves and Resources 1 (Dec 2017) The majority of mining is completed with only bench cuts and the goodbye cut remaining Reserves fell by 0.2Moz due to depletion, partially offset by model changes Approximately 5Mt added to stockpile during 2017 at marginally lower grade 48% increase in ounces on stockpile provides 3 years of mill feed Stockpile modelling on-going to optimise stockpile processing Revised modelling practices moved most of the Indicated Resource to Inferred Resource Ore Grade Au Contained Au (Mt) (g/t) (Moz) Proven PURPLE: REEF Stockpiles g/t 0.41 Reserves % of reserve 0.42 Measured Indicated Inferred Total R&R Buzwagi YoY Change in Reserves YELLOW: REEF 1 UPPER EAST 7.41g/t 6% of reserve YELLOW: REEF 1 UPPER EAST Hosts [ 6%] of reserve ounces End 2016 Depletion Design Change Model Change End Resources are exclusive of reserves 2017 Preliminary Results Presentation 43