INVESTMENT HIGHLIGHTS Large long-life reserve & resource base in stable region(5) Low all-in sustaining costs(1) Positive free cash flow & earnings(2) Debt-free balance sheet Significant organic growth profile Refer to…
FRANCO-NEVADA INVESTMENT VALIDATES TERANGAS LONG-TERM CASH FLOW AND GROWTH POTENTIAL In connection with Terangas acquisition of OJVG in 2014, Highlights of Teranga Stream Transaction Franco-Nevada invested 135 million in exchange for a…
EMERGING MID-TIER GOLD PRODUCER WITH ATTRACTIVE LONG-TERM GROWTH PROFILE Canadian-based gold mining company with large mine license Capital Structure and regional land package in Senegal (as of March 5, 2015) Operates only gold mine…
SENEGAL: A LAND OF OPPORTUNITY Senegalese government views mining as pillar for economic growth and supports mining companies by offering attractive royalty and ownership structures Africa Potential for world-class discoveries…
COMMITTED TO BEING THE PARTNER OF CHOICE Teranga Development Strategy Breakdown of 2014 Administrative & CSR Expenses 15.6 million Launched in 2014 after 18-month collaborative planning process with local, regional and national 5% 3%…
MANAGEMENTS STRONG OPERATIONAL TRACK RECORD Acquired Sabodala Commenced mill Completed mill Doubled 2P reserves Successfully gold mine and expansion to double expansion and mine life through integrated OJVG regional land throughput…
DRIVERS OF VALUATION Growing free Invest in high Strengthening cash flow and return organic our balance increasing growth sheet profitability initiatives 9
INCREASING PROFITABILITY BY LOWERING COSTS AND ONGOING OPTIMIZATION Cash Costs and All-in Sustaining Costs Q4 2014 production of 71,278 ounces represents the second highest quarterly production in Terangas history -- mill costs were…
GROWING FREE CASH FLOW Annual Free Cash Flow Annual Free Cash Flow vs. Average Gold Price per Ounce per Ounce of Gold Sold 291 1,669 1,411 1,266 189 39M 78 16M 2012 2013 2014 (50) 2012 2013 2014 (11M) (2) (2) (2)…
STRENGTHENING OUR BALANCE SHEET AND IMPROVING NET CASH Net Cash (Debt) vs. Average Gold Price Generating free cash flow from operations and building higher cash balances 1,669 1,411 73 million of debt repaid in 2014 1,266 32M…
THREE PHASE GROWTH STRATEGY Phase I Phase II Phase III Mine License Exploration Asset Consolidation Increase production to Increase production to Increase production to Production 250,000 350,000 oz 400,000 500,000 oz 500,000+ oz…
PHASE I: LOW COST NEAR-TERM ORGANIC GROWTH Phase I Mine License Increase production to 250,000 350,000 oz per year(6) Near-term opportunity Incremental capital required Enhance throughput Increase reserves by converting…
PHASE II: MEDIUM-TERM ORGANIC GROWTH Phase II Exploration Increase production to 400,000 500,000 oz per year(6) SENEGAL MALI Medium-term opportunity +12M oz Au +40M oz Au discovered discovered Capital intensive New…
PHASE III: LONG-TERM ASSET CONSOLIDATION IN SENEGAL Phase III Asset Consolidation 500+ koz(6) Increase production beyond 400 500 koz(6) 500,000 oz per year(6) Long-term opportunity 250 350 koz(6) Capital intensive 212…
2015 OUTLOOK Units 2014 Actual 2015 Guidance(4) Assumptions 1,200 per ounce gold price assumption Total material mined (000t) 29,321 28,500 - 30,500 High-grade Gora deposit comes into production Ore mined (000t) 6,174 6,500 - 7,500…
CATALYSTS FOR FUTURE GROWTH Catalyst Timing Impact Gora H2 2015 30K - 45K oz Mill Optimization 2015 - 2016 5% - 10% increase in throughput Heap Leach 2015 - 2017 10% - 20% increase in gold production Extend mine life / add…
TERANGAS LONG RESERVE LIFE AND ATTRACTIVE CASH FLOW NOT YET REFLECTED IN VALUATION 2P Reserves and M&I Resources (Moz)(8) 2014E EV/EBITDA(8) 6.9 x 6.1 Moz 6.3 6.2 4.3 2.8 x 2.6 x 1.7 x Semafo Endeavour Mining Perseus Teranga…
INVESTMENT HIGHLIGHTS Large long-life reserve & 6.1 million ounces of gold in measured and indicated resources(5) 2P reserve life of 11 years (based on 2015 production)(5) resource base in Only mill in Senegal (French West Africa), a…
DRIVERS OF VALUATION Growing free Invest in high Strengthening cash flow and return organic our balance increasing growth sheet profitability initiatives 21
MINERAL RESOURCES SUMMARY As at December 31, 2014 Measured Indicated Measured and Indicated Inferred Resources Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au Tonnes Au Au Area (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)…
MINERAL RESERVES SUMMARY As at December 31, 2014 Proven Probable Proven and Probable Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au Area (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Sabodala 1.98 1.52 0.10 2.48 1.48 0.12 4.45…
COMPETENT AND QUALIFIED PERSONS STATEMENT The technical information contained in this presentation relating to the mineral reserve estimates for Sabodala, the stockpiles, Masato, Golouma and Kerekounda is based on, and fairly represents,…
COMPETENT AND QUALIFIED PERSONS STATEMENT The technical information contained in this presentation relating to mineral resource estimates for Sabodala, Masato, Golouma, Kerekounda, and Somigol Other are based on, and fairly represents,…
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