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BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation

Teranga Gold Corporation · Sep 1, 2014 · 36 slides

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Slides

  1. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 1
    BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE SEPTEMBER 4, 2014 1
  2. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 2
    INVESTMENT SUMMARY Solid operations Low cost long life Expect to generate significant free cash flow in 2015 and beyond Significant opportunity for RESERVE, PRODUCTION & FREE CASH FLOW growth Near term Combined Sabodala/OJVG Mine…
  3. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 3
    VISION Phase 1: 250,000oz 350,000oz leveraging off our existing mill and infrastructure Expanded mill 250,000 ounces/year base case opportunities for growth Phase 2: 400,000oz 500,000oz requiring a second mill/expansion…
  4. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 4
    TERANGA GOLD CAPITALIZATION SUMMARY MINERAL RESERVES Ticker symbols/share price:1 3.0 TSX:TGZ / C0.85 OPEN PIT 2.5 ASX:TGZ / A0.84 Domicile: Canada 2.0 Basic shares outstanding: 3 353M (Moz) Options outstanding:4 23M…
  5. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 5
    ACHIEVED GUIDANCE IN 2012 & 2013 ON TRACK FOR 2014 2012 2013 2014 Guidance Actual Guidance Actual Guidance Forecast Production (koz) 210-225 214 190-210 207 220-240 On track Cash Costs (/oz) 600-650 627 650-700 641 650-700 On track…
  6. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 6
    BASE CASE MINE PLAN Doubled reserves, resources, mine Competitive AISC structure life and increased production base Maximize free cash flow Opportunities for reserve/production growth See Appendix (Base Case Life of Mine Plan) 7
  7. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 7
    RESERVE, PRODUCTION AND CASH FLOW GROWTH PHASE 1: 250,000 350,000 OZS/YR PHASE 2: 400,000 500,000 OZS/YR Short & Medium-term (2014-16) Long-term (2015+) Reserve/production/free cash flow New discoveries through systematic growth…
  8. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 8
    PHASE 1: 250,000 350,000 OZ/YR 1. INTEGRATION OF OJVG Masato Development completed in Q2 Mining expected to begin in September 2. OPTIMIZING MINE PLAN 2015 Mine Plan: Focused on free cash flow Lower material movement Lower capital…
  9. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 9
    GORA DEVELOPMENT 300 koz at 5 g/t Production expected mid-2015 Average 65,000 oz/yr Permitting process expected to be Gora completed in Q3 Sabodala Access road construction to begin Mill in Q4 Site construction expected…
  10. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 10
    3. MILL ENHANCEMENT OPPORTUNITIES Sabodala mill currently operating at Crusher Throughput vs. Mill tpoh (July 2013 May 2014) design capacity: 600 - 3.5 mtpa (430 tpoh) throughput 500 When crushed stockpiles 100% full - 480 tpoh…
  11. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 11
    4. HEAP LEACH OPPORTUNITY Comprehensive test work program in progress, potential to bring forward ore from later in mine life - Phase 1: Determine optimum economics for oxide ore - Phase 2: Examine sulphides ore KCA (Reno)…
  12. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 12
    5. RESERVE DEVELOPMENT PROGRAM 5-6M initial budget - Mine License Masato - Infill drilling of high grade zone - Reserve update Q4 Golouma - Infill drilling in Q3 Kerekounda - RC and DD in Q4 along strike Niakafiri SE and…
  13. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 13
    PHASE 2: 400,000 500,000 OZ/YR 5-6M initial budget - Regional Exploration Regional program seeking: 1. Multi-Moz standalone deposits 2. High grade, satellite deposits truckable to central mill Ninienko - Mapping and…
  14. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 14
    PHASE 2: 400,000 500,000 OZ/YR Soreto - 15 DDH program in progress (7 DDH completed over 1,500m), results pending - Intersected shallow dipping (25 - 35) altered shear zones, visible gold - Shear zones coincide with major…
  15. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 15
    IN PARTNERSHIP WITH SENEGAL Politically stable, mining friendly jurisdiction Government plan sees mining as pillar for economic growth Established a long-term fiscal and investment agreement with Senegalese Government…
  16. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 16
    SETTING BENCHMARK FOR MAINTAINING STRONG SOCIAL LICENSE DEVELOPMENT STRATEGY (TDS) Culmination of 18 month process of extensive roundtable discussions with our local, regional and national stakeholders, identified three priority…
  17. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 17
    2H 2014 DELIVERABLES On track to meet production and cash cost guidance Strong H2 expected, higher production of 130,000 ozs and better costs Masato production to commence in September Mill optimization results expected in Q3,…
  18. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 18
    INVESTMENT SUMMARY Solid operations Low cost long life Expect to generate significant free cash flow in 2015 and beyond Significant opportunity for RESERVE, PRODUCTION & FREE CASH FLOW growth Near term Combined Sabodala/OJVG Mine…
  19. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 19
    APPENDIX 20
  20. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 20
    TRACK RECORD OF SAFE OPERATIONS SAFETY STATISTICS COMMENTS Teranga is dedicated to excellence in safety and aims its OHS indicators to exceed global 2011 2012 2013 benchmarking standards Hours Worked 3,057,907 3,474,890 2,879,685…
  21. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 21
    Q2 FINANCIAL RESULTS (US000's, except w here indicated) Three m onths ended June 30 Six m onths ended June 30 Financial Data 2014 2013 2014 2013 Revenue 57,522 75,246 127,324 189,061 Profit attributable to shareholders of Teranga…
  22. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 22
    Q2 OPERATING RESULTS Three m onths ended June 30 Six m onths ended June 30 Operating Results 2014 2013 2014 2013 Ore mined (000t) 974 698 2,236 2,011 Waste mined - operating (000t) 5,233 2,683 11,384 5,197 Waste mined - capitalized…
  23. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 23
    OUTLOOK 2014 Year ended Decem ber 31 2013 Actuals 2014 Guidance Range Operating Results Ore mined (000t) 4,540 5,300 - 6,000 Waste mined - operating (000t) 15,172 18,200 - 19,000 Waste mined - capitalized (000t) 15,066 500 - 1,000…
  24. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 24
    HISTORICAL RESULTS AND GUIDANCE 2009A 2010A 2011A 2012A 2013A 2014F Ore Mined (000t) 2,637 2,915 3,973 5,915 4,540 5,300 - 6,000 Waste Mined - operating (000t) 9,144 13,199 21,818 12,265 15,172 18,200 - 19,000 Waste Mined -…
  25. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 25
    BASE CASE LOM PLAN (NI 43-101 Technical Report Filed March 13, 2014) 2014-2019 LOM AVG 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Ore Mined Mt 4.8 4.8 - - - - - - - - - - - - - - - Ore Grade g/t…
  26. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 26
    BASE CASE CAPITAL & OPERATING COSTS (NI 43-101 Technical Report Filed March 13, 2014) Capital Expenditures 2014-2019 Sustaining Capex Unit LOM 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 AVG Mining…
  27. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 27
    COMBINED RESERVES AND RESOURCES Measured Indicated Measured and Indicated Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Sabodala 24.28 1.32 1.03 22.95 1.29 0.95 47.23 1.31 1.98 Gora…
  28. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 28
    COMBINED RESERVES AND RESOURCES Proven Probable Proven and Probable Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Sabodala 3.45 1.64 0.18 5.53 1.58 0.28 8.98 1.60 0.46 Gora 0.50 4.58…
  29. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 29
    COMPETENT PERSONS STATEMENT The technical information contained in this document relating to the mineral reserve estimates for Sabodala, the stockpiles, Masato, Golouma and Kerekounda is based on, and fairly represents, information…
  30. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 30
    FRANCO-NEVADA STREAM AGREEMENT Franco-Nevada provided an upfront cash payment of 135M in exchange for a fixed and floating stream on future production - 2014 to 2019: 22,500 ounces per year - 2020 and thereafter: 6% of gold…
  31. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 31
    SENEGAL INVESTMENT AGREEMENT AND FISCAL REGIME IN PARTNERSHIP WITH SENEGAL FISCAL REGIME The Senegalese Government has stated the 5% government royalty importance of the mining industry in Senegal 25% corporate income tax after tax…
  32. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 32
    IN PARTNERSHIP WITH SENEGAL President Macky Salls recent site visit (April 2014) 33
  33. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 33
    SENEGAL COMPARES FAVOURABLY TO OTHER AFRICAN GOLD MINING JURISDICTIONS IN TERMS OF SECURITY AND POLITICAL RISKS Source: Control Risks, RiskMap 2014 34
  34. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 34
    CSR The Companys mission is to share the benefits of responsible mining with all of our stakeholders. We strive to act as a responsible corporate citizen by building projects together with the communities, and by being committed to…
  35. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 35
    MANAGEMENT TEAM Richard Young Over 10 years experience in mining finance, development, corporate development, and investor relations with Barrick Gold President & CEO, Director Former VP and CFO of Gabriel Resources (2005-2010) Mark…
  36. BANK OF AMERICA MERRILL LYNCH CANADA MINING CONFERENCE – Teranga Gold Corporation – slide 36
    NON-EXECUTIVE DIRECTORS Alan R. Hill Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine development as Executive VP of Barrick Gold Chairman Currently a Director of Gold Fields Former…

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