LSE:ACA. Acacia Mining plc. Investor Day Unearthing Africa s Potential

Transcription

1 LSE:ACA Acacia Mining plc Investor Day Unearthing Africa s Potential

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 ongoing 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. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forwardlooking 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. Mineral reserves and mineral resources estimates contained in this presentation have been calculated as at 31 December 2013 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. The reserves and resources figures stated are estimates. No assurances whatsoever can be given that the indicated quantities of metal will be produced and totals stated may not add up due to rounding. For more information regarding the nature of reserves and resources estimates and relevant CIM definitions, please see page 90 of African Barrick Gold plc s 2013 Annual Report and Accounts. 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. 2

3 Schedule for Today 9:00 Introduction and Welcome Giles Blackham IR Manager 9:10 Company Overview Brad Gordon CEO 9:30 Our Assets & Bulyanhulu Michelle Ash EGM, Bus. Improvement & Planning 10:00 North Mara Gary Chapman GM, North Mara 10:20 Buzwagi Philbert Ryewemamu GM, Buzwagi 11:00 Exploration Peter Spora EGM, Exploration 11:20 Corporate Affairs Deo Mwanyika EGM, Corporate Affairs 11:30 Financial Overview Andrew Wray CFO 11:50 Summary Brad Gordon - CEO 12:00 Q&A 12:45 Lunch 10:40 Q&A 3

4 Introduction

5 Our Team Today Brad Gordon CEO Andrew Wray CFO Michelle Ash EGM, Bus Improvement Deo Mwanyika EGM, Corporate Affairs Peter Spora EGM, Exploration Philbert Ryewemamu GM, Buzwagi Gary Chapman GM, North Mara 5

6 What we stand for 1 A leading asset portfolio in Africa Our Three Pillars 2 Focused on free cash flow Our People 3 Disciplined capital allocation Our Relationships Our Business 4 Becoming the partner of choice 5 Growing our footprint unearthing Africa s potential 6

7 Acacia Randgold Polymetal Semafo Resolute Teranga Iamgold B2Gold Petropavolsk Centamin Perseus Nord Gold Reserve Grade (g/t) Contained Gold (Moz) Our Business - our core foundation a leading asset portfolio amongst our peers Reserve Grade (g/t) vs Total Reserves (Moz) Business Overview Grade (LHS) Contained Gold (RHS) World class high grade narrow vein Bulyanhulu deposit Life of mine in excess of 30 years High-grade open pit and underground North Mara mine 9 year life of mine Low-grade bulk deposit with a single Buzwagi large open pit Five year life of mine harvest mode Contrarian view on exploration Exploration Building pan African portfolio of prospective acreage 7

8 A track record of delivery Consistently improving performance Increasing production Production guided to be in excess of 700koz in 2014 CIL Expansion brought on stream Upper East zone brought forward Gokona underground Greenfield and brownfield exploration success Efficient Delivery Eight successive quarters of reduction in costs US$600/ounce reduction in AISC US$185m of Operational Review savings Focused exploration programme Financial discipline Strong balance sheet - net cash position Delivering free cash flow Consistent dividend payer Tulawaka sold without any residual liability 8

9 Our People Driving cultural change across the organisation Creating a high performing culture Tufanikiwe Pamoja / Together We Succeed We plan the work and work to plan We hold people accountable and recognise performance We work as a team (collaborate) and communicate openly We do what we say we will do We act with a sense of urgency We develop our people to do their best Behavioural Safety Programme Tunajali / We Care Targeting zero harm 9

10 Our Relationships Working closely with the Government and our communities 10

11 Our Vision 11

12 Achieving our strategy to Unearth Africa s potential Our Key Pillars Our Business Our People Our Relationships Maximise returns from current portfolio Ensuring capital is allocated efficiently Pursue high-return growth opportunities Embedding cultural change Working towards zero harm Promoting local talent Attracting and retaining the best people Strengthened Government dialogue Delivery on community commitments Enhanced public relations profile 12

13 US$/ounce Production (Koz) Grade (g/t) Consolidated 5 year plan Production & Head Grade Profile FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E Acacia total Head Grade (RHS) All-In Sustaining Costs ($/oz) 1,800 1,500 1, FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E *FY14 based on base guidance of 700koz and AISC of $1,100/oz 13

14 Our Assets

15 Our Approach to Our Assets Getting the technical decisions right Consistent delivery of production and cost performance Embedding Business Improvement into our process Integrated planning Implementing the correct structures and roles Targeting competitive industry metrics 15

16 Improving Operational Metrics Continuing to deliver Metric Past* Present Target Jumbo Development Rates (metres/month/jumbo) Overall equipment effectiveness (Plant) Overall equipment effectiveness (HME) 60m 196m 250m 75% 80% 90% 35% 50% 70% Truck Factors (tonnes ) % Group Plant Recovery (%) 88% 90% +2-7% Tonnes / FTE 1,240 2, % improvement WeCare / Safety (TRIFR) * Past = FY2012, Present = YTD

17 AISC $/oz Where we plan to be Moving to the 1 st Quartile Global All-in Sustaining Cost Curve $3,000 $2,500 $2,000 ABG Q3/12 $1,500 $1,000 ABG Q3/14 $500 5 year LOM Ave - 0% 20% 40% 60% 80% 100% Aggregate Mine Production * Source: Macquarie Research / GFMS 2015E Estimate AISC curve 17

18 Bulyanhulu

19 Overview World class high grade narrow vein deposit Year end 2013 undeground Reserves of 9.1Moz at 9.5g/t Life of mine in excess of 30 years 19

20 US$/ounce Production (Koz) Grade (g/t) Bulyanhulu 5 Year Plan Production & Head Grade 500 Production Head Grade FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E 0.00 All In Sustaining Cost per Ounce 1,500 1,200 Cash cost Sustaining Capital Capitalised Development Other** FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E * FY14E guidance as at Q reflects base of group guidance of 700koz and AISC guidance of $1,100/oz**Other includes corporate G&A, share based payments, rehabilitation, minex and CSR costs 20

21 Percentage (%) Life of Mine: Options Review Review of LOM in order to focus on cash flow and safety Move away from CCF (handheld methods) towards modern mechanised mining Significant investment in development to increase flexibility in mine plan Incorporated improvements made regarding mining dilution Enables the mine to achieve new reserve grade by end of 2015 Mine now being set up in order to deliver on its geological endowment Breakdown of Mining Method in LOM E 2015E 2016E CCF Longhole Alimak DnF Ore development Cost Comparison 2014E Measure Longhole CCF* Alimak DnF* # Mining Cost / Tonne Mined (US$/t) Annual Ore tonnes mined / FTE 6, ,517 3,250 * CCF Conventional Cut and Fill, DnF Drift and Fill # Numbers for drift and fill represent 2015 estimates as no DnF activities are currently taking place at the mine 21

22 Bulyanhulu 2013 Year End Reserves No additional shaft infrastructure required to meet LOM 22

23 Mining Areas for next 5 Years We have accelerated development into the Upper East and Lower West in order to provide increased flexibility Additional development spend from 2014 to 2016 to open up new mining faces and allow mining at average reserve grades Will provide 6 months of developed reserves by the end of 2015 and 12 months by end 2016 Development spend will by 2017 drop to $50m per annum Upper East Lower West 23

24 No. of Employees Our People Continuing to implement changes to the workforce to improve productivity Management layers reduced from 14 to 4 Implementation of Accountable Management System Move to mechanisation significantly reduces workforce numbers Dispatch systems to drive productivity Examining shift patterns to improve time at the face Breakdown of Employees 3,000 2,500 2,000 1,500 1, ,397 2,225 Internationals Nationals ,957 1, Ave 24

25 Monthly Development Metres Business Improvement - Productivities Significant step up in development rates leading to the highest quarterly development rate in 3 years Monthly Development Metres per Jumbo

26 Dilution - Longhole Business Improvement Dilution Control Consistently ahead of budget, but project not yet achieving target of less than 10% dilution rates Long hole stoping - overbreak 50% Aug - 32% of the stopes 45% 44% required up holes 40% 35% 30% 30% 28% Jul - 1/3 of stopes in graphitic argillite reducing accuracy 29% 28% 25% 20% 15% 10% 5% 20% 21% 16% 20% 21% 24% 13% 14% 10% 12% 16% 3% 10% 8% 20% 5% 4% Budgeted dilution 10% 16% 10% 8% 8% 15% 12% 17% 16% 14% 16% 6% 10% 0% 26

27 Percentage (%) Percentage (%) Maintenance Business Improvement Maintenance Optimising current asset life by reducing capital employed to achieve higher availability and increased operational stability across all assets Improved focus has led to: Deferral of $15m per annum replacement capital in 2015 and 2016, reduced equipment numbers by 2017 reduced risk to the planned ounces Planned vs Unplanned Maintenance E Planned Unplanned Truck Availabilities

28 US$/ ore tonne Grade g/t Operating Cost Evolution Gross operating costs per tonne milled Gross operating costs per tonne milled A 2013A 2014E 2015E 2016E 2017E 2018E 2019E UG Cost - Gross Process Costs - Gross G&A Costs - Gross Cash Cost per tonne milled Grade - * Process costs excludes Bulyanhulu retreat tonnes and associated costs totalling $63m and 9.7m tonnes respectively for

29 $ million Sustaining and Capitalised stripping per ounce Evolution of Capital Spend Capital Expenditure Capex Profile Sustaining Capital Capitalised Development Expansion Capital Sustaining & Cap Stripping / ounce FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E 0 * FY14E guidance reflects base of group guidance of $255m and cash cost guidance of US$740/oz 29

30 Opportunities to add further value There is significant flexibility to add value at Bulyanhulu CIL acceleration Preferential treatment of reclaimed tailings material ahead of rougher tailings Results in annual production of between 50-60koz per annum commencing in 2015 X Ray sorting of ore to improve grade and negate capacity constraints Initial work shows a 93% recovery in 42% of the mass Could negate medium term Plant Upgrades as well as reduce consumable costs Potential to reduce additional access requirements as the mining tonnage increases over the LOM Large diameter underground decline Additional large diameter decline to provide access for 60 tonne trucks to increase productivity Waste storage Evaluating backfilling of waste underground to increase the shaft capacity for hoisting ore Reduces operating costs and increases capacity at the mining bottleneck Solar power Potential to utilise solar power at Bulyanhulu to mitigate potential Tanesco power increases 30

31 Resource Extensions Targeting 5Moz of additional resources Focused on reserve conversion and resource expansion of Reef 1 and the Reef 2 series 3-5 year target resource increase of 5Moz 9,000 metres of diamond core drilling planned in 2015 Initial focus Reef 2 series west of shaft position Budget up to $35m over 5 years Programme will assist future decision making about how best to develop infrastructure 31

32 Summary Life of Mine has been rescheduled and business improvement programme implemented in order to deliver Past Present Future Labour intensive mining methods Mining well below reserve grade Lack of investment in development Converting to mechanised mining methods Improved grade profile Investing in development Efficient, modern mechanised mine Mining at reserve grade Flexibility created in mining areas Production <200kozpa Sust capex/ounce - $172/oz^ Employees 2,550 Grade sub 8.0 g/t AISC of $1,425/oz^ Production ~250kozpa Sust capex/ounce - $142/oz* Employees 2,100 Grade 8.8g/t AISC ~ $1,200/oz* Production >350kozpa Sust capex/ounce - $103/oz ~ Employees 1,450 Grade At or above reserve grade AISC sub $800/oz Moving towards production matching the geological endowment ^ Q ~ 5 year average 32

33 North Mara

34 North Mara High-grade open pit and underground mine Year end 2013 Reserves of 2.2Moz at 3.2g/t 9 year life of mine 34

35 US$/ounce Production (Koz) Grade (g/t) North Mara 5 Year Plan Production & Head Grade 400 Production Head Grade FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E All In Sustaining Cost per Ounce 1,800 1,500 1,200 Cash cost Sustaining Capital Capitalised Development Other** FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E * FY14E guidance as at Q reflects base of group guidance of 700koz and AISC guidance of $1,100/oz**Other includes corporate G&A, share based payments, rehabilitation, minex and CSR costs 35

36 Life of Mine: Options Review Focusing on cash flow & improving the social situation Original mine plan set up as multiple open pit operation (Gokona and Nyabirama) Requirement to continue to purchase land for waste rock dumps through the LOM Increasing tensions with communities over land speculation Cash flow profile had a hockey stick profile Option to mine Gokona Stage 3 via underground improves both cash flow profile and reduces mine footprint Accesses high grade ounces, without significant material movement or requirement for additional land Provides earlier access to potential deeper material beneath the planned Stage 3 final pit shell 36

37 Gokona Underground Moving into construction phase Production of 450,000 ounces over a 5 year life of mine with AISC below US$750/oz Reduces mine footprint, supporting improved community relationships Utilises exploration decline in the Gokona pit Total pre-production capital of US$37 million (including exploration decline) Potential to lower costs by contracting equipment Submitted final applications for the required permits to commence mining underground First ore anticipated to be in H Gokona U/G Kt Proven Probable Proven and Probable Grade (g/t) Koz Kt Grade (g/t) Koz Kt Grade (g/t) Koz , ,

38 Gokona Underground Moving into construction phase Physicals Life of mine Year 5 Total tonnes Kt 2,981 Total ore tonnes Kt 1,991 Total Development metres km 17.7 Average gold grade g/t 8.06 Recovery % 88% Tonnes Processed Kt 1,991 Gold Produced koz 453 Life of Mine Operating Costs and Capex Pre-production Capital $m 37 Total Capital $m 130 Mining cost per tonne mined $/t 51 Milling cost per tonne of ore processed $/t 18 G&A cost per tonne of ore processed $/t 11 Cash cost per ounce $/oz 418 AISC per ounce $/oz

39 Employee Numbers Our People Significant reduction in international workforce High Potential Tanzanians identified Focus on skills development and retention through development / localisation programmes Relevant skill levels must be retained Professional coaching for newly appointed managers Mining, OE and Sustainability managed by Tanzanians Critical positions such as Safety, Land Section Leaders localised Localisation to be driven and overall employee numbers to be optimised, however skill levels will not be compromised Employee Breakdown 1,200 1,100 1, International Nationals Ave 39

40 Our Relationships A multifaceted approach is being evolved in order to improve stakeholder engagement Continue to deliver on VBIA / VBA programmes* Revise the security model where security works in parallel with community relations Improve on: Alternative livelihood projects with a youth focus Engage government on both a local and national level to provide greater law enforcement Assistance to local artisanal miners Longer term focus will be on establishing partnerships with respected NGOs to ensure the continuity of the projects Continuing to work with Government to find a safe sustainable solution to reduce intruder numbers * Village Benefit Agreements and Village Benefit Implementation Agreements 40

41 Availability Maintenance Business Improvement Maintenance Plan the work and work to plan Increase proportion of planned vs. breakdown maintenance Targeting 90% / 10% Improved costing, new planning system Eliminate reworking Increase mean time between failure to Excavators 50hrs Dump Trucks 40 hrs Planned vs. Breakdown Maintenance - Fleet 100% 80% 60% 40% Between improved maintenance and improved truck availabilities, there is the potential to remove 15% of fleet numbers, significantly reducing hauling cost Potential longer term savings of $10-15 million per annum 20% 0% E Planned Breakdown 41

42 US$/tonne Grade g/t Operating Cost Evolution Gross operating costs per tonne milled A 2013A 2014E 2015E 2016E 2017E 2018E 2019E OP Cost - Gross UG Cost - Gross Process Costs - Gross G&A Costs - Gross Cash Cost per tonne milled Grade - 42

43 $ million Sustaining and Capital Stripping / ounce Evolution of Capital Expenditure Capex Profile 140 Sustaining Capital Expansion Capital Capitalised Development / Stripping Sustaining and Capital Stripping / ounce FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E 0 * FY14E guidance reflects base of group guidance of $255m and cash cost guidance of US$740/oz 43

44 Further Underground Potential at Gokona Delineated a further 1.1Moz at 4.9g/t in inferred resource beneath 990 mrl, to be tested by staged drilling from underground platforms 44

45 Summary A high quality asset now delivering Past Present Future xxx Poor production record Mine not optimised Limited delivery to the community Tanzanian potential not realised Culture of delivery on plan Mine optimised, exploratory decline in progress Delivering on Community Projects Tanzanian potential realised Focus on skills retention Maintain culture of delivery Realise full potential of the ore bodies Continue with localisation & optimise labour Develop and implement Community Relations Plan AISC $1,517/oz^ AISC $1,015/oz* AISC ~$900/oz ^Q * Q

46 Buzwagi

47 Overview Low-grade bulk deposit with a single large open pit Year end 2013 Reserves of 1.1Moz at 1.45g/t Five year life of mine 47

48 Life of Mine: Options Review Moving to harvest mode to ensure cash generation In June 2013 work began to assess mine planning options to reverse Buzwagi's negative cash flow: Survival mode in the short to medium term Generate maximum possible free cashflow in the next 5 years Key strategies adopted in June 2013 were: Remove of Stage 4 cut back from the mine plan Minimising capital expenditure, including capitalised waste stripping Deferring any rebuild or major component replacements not required for meeting the 5-year objective Maximising the mill feed grade Major labour and associated cost reduction across the board Minimising the hauling distances 48

49 US$/ounce Production (Koz) Grade (g/t) Buzwagi 5 Year Plan Production & Head Grade 400 Production Head Grade FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E All In Sustaining Cost per Ounce 2,000 1,500 1,000 Cash cost Capitalised Development cash breakeven of sub- $1,000/oz Sustaining Capital Other** FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E * FY14E guidance as at Q reflects base of group guidance of 700koz and AISC guidance of $1,100/oz**Other includes corporate G&A, share based payments, rehabilitation, minex and CSR costs 49

50 Our People Significant reduction in international workforce Departmental heads are obliged to implement Succession / Localisation Plan by: Employee Breakdown 1,200 Identifying high potential Tanzanians Initiating and helping potential employees set their personal development plans (PDP) Train and develop for the purpose of succeeding positions occupied by expatriates and signed off so as to achieve Buzwagi localisation plan 1, Ave 2013 Ave 2014 Ave Ave Nationals Internationals Ave 50

51 Availability Business Improvement - Mining Focusing on driving efficiencies in the fleet A key focus of the business improvement is on optimising our hauling by increase in OEE: Availabilities - quality of PM, condition monitoring Utilisation dispatch system upgrade, reduce delays Payload - (ton/truck) 116 to 136 (extended trays, improve haul roads, fragmentation) If achieved, will result in savings of $6-9 million per annum 40% Truck Utilisation and Availabilities 100% 90% 80% 70% 60% 50% Availability Actual Utilisation Acutal Availability Target Utilisation Target 51

52 Recovery (%) Business Improvement - Process Plant Improved recoveries have generated US$8 million of extra revenue year to date The following improvements are under implementation in the process plant: Increase plant availability from 88 to 94% Increase plant throughput from 12,000 to 14,000 tonnes per day Increase gold recovery from 88% to 93% Increase copper concentrate quality Cu - from 16% to 19%-Cu (w/w) and Au content from 120 to 150 g/t Improvement in Plant Recovery Q Q Q Q Q Q Q Budget Actual 52

53 Business Improvement - Supply Chain Reducing tied up capital We have a number of projects in progress to improve supply service quality and eventually saving operation cost The expected impacts of the projects above are : Reduce maintenance cost from $31 to $25 per ounce produced Reduce inventory stock value from $96 million to $75 million Reduce slow moving and obsolete stock value by over 50% Reduce direct purchase orders from 39% to 15% of the total orders Before After 53

54 US$/ ore tonne Grade g/t Operating Cost Evolution Gross Operating Costs per tonne milled A 2013A 2014E 2015E 2016E 2017E 2018E 2019E OP Cost - Gross Process Costs - Gross G&A Costs - Gross Cash Cost per tonne milled Grade 54

55 $ million Capital per ounce Evolution of Capital Expenditure Capex Profile FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E 0 * FY14E guidance reflects base of group guidance of $255m and cash cost guidance of US$740/oz 55

56 Closure Options - Scenario Planning Examining a range of options for the future of the mine, post Acacia Min Spectrum of potential options Max Full Restoration Remove and remediate all infrastructure and disturbed land (current closure provision based on this scenario) Restoration & Handover of Infrastructure Remove and remediate mining infrastructure Retain infrastructure that can provide community benefit (i.e camp and water catchment area) Sell as going concern Sell asset to a mining company looking to exploit the remaining 1Moz+ resource 56

57 Summary Life of Mine has been rescheduled and business improvement programme implemented in order to deliver Past Present Future High strip ratio, long payback on capital investment High costs and poor production performance Mill throughput consistently below nameplate capacity Significant working capital tied up in inventory Significant reduction in material moved Improved grade profile Improved operational efficiencies Tanzanian potential realised Mill throughput approaching nameplate capacity Wind down of working capital Limited capital investment Mill throughput exceeding nameplate capacity Optionality of remaining resource base Free cash negative Free cash positive Free cash flow in each year of life 57

58 Exploration

59 Overview Exploration is a key driver of value Now is the time to invest in exploration opportunities Annual exploration spend to be maintained at ~US$20 million Discovery focused team with broad African exposure Proven track record of ounce delivery 59

60 Our Focus Developing our People, Pipeline and Relationships leading to Discovery and Delivery of Value Delivery of high value discoveries and ounce additions 25Moz of reserves/resources discovered and delineated in Tanzania over the past 15 years Adding high-value brownfield ounces around our existing operations in Tanzania Take advantage of early exploration success in Kenya in an emerging region Build on our regional diversification into Burkina Faso Continue to assess opportunities throughout Africa 60

61 What we look for in a Project Quality, long life ore bodies that impact the bottom line Favourable geological settings in the right regions Belts that have delivered high quality, multimillion ounce discoveries Emerging regions and belts Targeting resources >3Moz that will deliver profitable mines producing >200koz/year for >10 years Open pit mines focus on low strip ratio Underground focus on ounces per vertical metre Discoveries that compliment and strengthen our production portfolio 61

62 Bulyanhulu near mine exploration focus Targeting new near surface ounces providing greater flexibility World class ore body (>20Moz) Extensive geochemical footprint Untested reef extensions and multiple sub-parallel gold zones Targeting discovery of new production centres within 5km of processing plant 62

63 Kenya: Ndori-Kakamega Greenstone Belt 2,200 km 2 across highly-prospective greenstone belt Geological features of all the well endowed Archean greenstone belts >400km² of regional mapping >30,000 soil samples collected >50 gold-in-soil anomalies for follow-up programmes >1,100 AC holes Ground geophysics (IP) Potential new gold corridors delineated in several locations High grade drill intersections on the Kakamega Dome camp 63

64 Liranda Corridor: Potential New Discoveries High grade results within 12km under-explored corridor Successful Aircore programme with over 126 holes returning intercepts of over 0.5 g/t; best results included: 22.3 g/t 12.6 g/t 30.9 g/t 15.2 g/t Potential new gold corridor delineated Gold across multiple lithologies Follow-up diamond core drilling commenced during Q4 64

65 Burkina Faso Entry into Houndé Belt Multiple structural domains with 50km of surface gold anomalies The Houndé Belt is quickly emerging as a significant gold belt Several recent >1Moz discoveries Earn-in signed with Sarama Resources on the South Houndé Project Acacia can earn into 75% of the Project 815km 2 of prospective Birimian geology Existing 1.5Moz Inferred resource Extensive gold-in-soil anomalies already delineated 65

66 Where we want to be in 5 years Discovering our next generation of mines Projects at all stages in the exploration and development pipeline Several new large, high-value discoveries heading toward production One in feasibility Large exploration portfolio throughout Africa focused in high potential geological belts Entry into several new geological belts Expansion of project pipeline in Burkina Faso and Kenya 66

67 Our Relationships

68 Our Approach Managing relationships with Governments and Communities to get the right business outcome We have taken a pro-active approach in our engagement outreach programme with all our stakeholders Desired end state is share good news on contribution, get appreciation of the challenges and support from various government institution Building trust and obtain endorsement as good corporate citizen Key strategic focus areas: Education and information dissemination on contribution communities and Tanzania Regular contact with policy makers, decision makers, legislators and influencers. Aggressive public awareness programme through media intervention - TV, Radio A shared vision with all of our stakeholders 68

69 Our Contribution We represent over 3% of Tanzania s GDP* Acacia s total GDP contribution of US$855m represented over 3% of GDP in 2013 Acacia s total tax contribution in 2013 was an estimated US$197 million For every 1 Acacia employee, 11 jobs are created elsewhere in the Tanzanian economy Acacia Indirect (supply chain) Induced (consumer) Acacia is a high-wage employer - Tanzanian national employees were paid an average wage nearly 11x higher than the national average in 2013 National Ave. Wage Acacia *All figures sourced from EY Report - African Barrick Gold s total economic and tax contributions in Tanzania,

70 Acacia Maendeleo Fund The largest private sector led community development fund in Tanzania Established in 2011 as part of our commitment to promoting sustainable development in Tanzania especially our host communities Key priority given to investments that support community development and capacity building, access to health, education, water and environment projects Since 2011 Acacia Maendeleo Fund has invested US$18.9 million in community development In 2013, Acacia Maendeleo Fund invested US$11.5 million in education, health, water, infrastructure and livelihoods The majority of this was invested at North Mara 70

71 Financial Overview

72 Our Focus Area Cost Control Financial Discipline Risk Mitigation Free Cash Flow Focus Ongoing delivery of Operational Review Overheads Operating costs Capital deployment Preserving balance sheet strength Capital allocation Mine plan optimisation Broader focus in Enterprise Risk Management Greater operational focus Political and regulatory initiatives Key business driver Sustainable Deliverable across the cycle Provides strategic flexibility 72

73 Total Labour Cost $m Total Employees Supplies on hand $m Consumable cost per ounce Where we are Labour Cost Saving* Supply Chain & Consumables Savings 200 6, , , , , , * 2013* 2014E * 2013* 2014E 210 Total labour cost Total employees Supplies on hand** Consumable cost per oz *Historical results exclude Tulawaka. **Supplies on hand reflects Q position. 73

74 Sustaining Capital ($m) Sustaining Capital per ounce ($/oz) Corporate Admin costs ($m) Headcount Where we are Capital Discipline Corporate Overheads * 2013* 2014E * 2013* 2014E 0 Sustaining Capital (excl. Capitalised Development) Sustaining capital per/oz (RHS) Corporate admin costs Headcount * Historical results exclude Tulawaka. 74

75 US$ million US$ million Where we are Exploration and Evaluation Costs* Indirect Tax Refunds Outstanding balance VAT Refunds A 2013A 2014E A 2013A 2014 Q3 (YTD) * Includes total exploration and evaluation costs and capitalised drilling costs 75

76 Production (Koz) Grade (g/t) 5 Year Consolidated Plan Production & Head Grade Profile FY12A^ FY13A^ FY14E* FY15E FY16E FY17E FY18E FY19E Bulyanhulu North Mara Buzwagi Head Grade (RHS) 0.00 ^Figures for 2012 and 2013 exclude Tulawaka *FY14E guidance reflects base of group guidance of 700koz ** Head grade excludes reclaimed tailings 76

77 US$ million Production ounces (000 s) Where we are going Gross operating costs* FY12A* FY13A* FY14E** FY15E FY16E FY17E FY18E FY19E Labour Energy and fuel Consumables Maintenance Contracted services General administration costs Production - *Restated for the classification of Tulawaka as a discontinued operation. Prior to capitalised development and change in inventory ** FY14E costs have been annualised based on YTD performance 77

78 US$/ ore tonne Grade g/t Where we are going Gross operating costs per tonne milled* A 2013A 2014E 2015E 2016E 2017E 2018E 2019E OP Cost - Gross UG Cost - Gross Process Costs - Gross G&A Costs - Gross Cash Cost per tonne milled Grade * Restated for the classification of Tulawaka as a discontinued operation ** FY14E guidance as at Q3 14 annualised - reflects base of group guidance of 700koz ***Process costs excludes Bulyanhulu retreat tonnes and associated costs totalling $63m and 9.7m tonnes respectively for

79 $ million Total sustaining capital per ounce Where are we going Capital Expenditure FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E 0 Sustaining Capital Expansion Capital Capitalised Strip / Development Total Sustaining Capital $/oz (incl Capitalised Development) * FY14E guidance reflects base of group guidance of $255m 79

80 US$/ounce Where are we going All-In Sustaining Costs ($/oz) All-In Sustaining Costs ($/oz) 1,800 1,600 1,400 1,200 1, FY12A FY13A FY14E* FY15E FY16E FY17E FY18E FY19E Cash cost Sustaining Capital Capitalised Development Other** * Reflects FY14E guidance of $1,100/oz **Other includes corporate G&A, share based payments, rehabilitation, minex and CSR costs 80

81 $ million Where we are going Cash flow from sustaining operations Cumulative Cash Flow Sensitivity* 1,800 1,600 At $1,300/oz 1,400 1,200 1, At $1,100/oz *Free cash flow from sustaining operations pre taxation, growth capital, exploration and dividends. 81

82 US$/oz sold AISC drivers All In Sustaining Cost per Ounce , ,100 ~ A Production volume ** Direct costs Indirect Costs Capital 2014E* Production volume ** Direct costs Indirect Costs Capital Ave * FY14E guidance as at Q reflects base of group guidance of 700koz. ** Includes co-product revenue and sales related costs. 82

83 Capital Allocation Operational Optimisation Maintain Cost Discipline Capital Efficiency Free Cash Flow Dividends Further Capital Returns Brownfield Growth Greenfield Growth Acquisitions Maximising Shareholder Returns 83

84 Summary

85 Our Future Delivering free cash flow Past Present Future Assets set up poorly Lack of operational delivery Post cost and capital discipline Lack of accountability Weak relationships with Government & communities Free cash negative Mine plans recalibrated Eight quarters of delivery Cost and capital controls enforced Driving culture of delivery on plan Improving relationships Free cash flow positive Mines delivering to their geological potential Continued operational & financial delivery High performance culture embedded Attracting and retaining the best people Partner of choice for Governments & communities Strong free cash generation AISC of $1,709/oz Industry 4 th quartile AISC ~$1,100/oz Industry 2 nd quartile AISC ~$900/oz Industry 1 st quartile 85

86 Our Ambition To become a leading Company in Africa Attracting and retaining the best people Operating the best assets Generating returns for all our of stakeholders Being a partner of choice for the communities and governments across the continent Unearthing Africa s Potential 86

87 Investment Case Business now set up to deliver free cash flow with significant improvements still to come Continued operational & financial delivery Strong free cash generation Mines delivering to their geological endowment AISC ~$900/oz Moving toward industry 1 st quartile 87

88 Questions 88

89 Appendix

90 Reserves and Resources 2012 total include Tulawaka ounces Reserves and Resources estimates calculated in accordance with NI Reserves calculated at US$1,300/oz and Resources at US$1,500/oz 90