Perseus Mining Limited · ASX:PRU
Perseus Mining — Merger or Acquisition (February 2016)
37 slides from Perseus Mining's merger presentation, Feb 29, 2016
Slide 1: Unlocking Value through Consolidation
For personal use only Unlocking Value through Consolidation February 2016 0
Slide 2: Cautionary Statements
Cautionary Statements For personal use only NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. • This presentation has been prepared by Perseus Mining Limited (Perseus) and Amara Mining plc (Amara). It does not
Slide 3: Cautionary Statements
Cautionary Statements For personal use only • None of Perseus, Amara (including members of their respective groups) or any affiliates or the directors, employees, agents, representatives or advisors of any such party (each a Relevant Person) undertakes any obligation to update publicly, expressly di
Slide 4: Unlocking Value Through Consolidation
Unlocking Value Through Consolidation For personal use only Recommended offer to combine Perseus and Amara through a scheme of arrangement • Clear strategic and financial rationale for the business combination • Creating a strong, diversified, growth orientated West African focussed gold production,
Slide 5: Transaction Summary
Transaction Summary For personal use only • Combination of Perseus Mining and Amara Mining by way of a UK Scheme of Arrangement • Pro forma ownership of enlarged company: 64.9% Perseus / 35.1% Amara1 Transaction • Warrants provide additional leverage for Amara shareholders, and potentially a further
Slide 6: Transaction Rationale
Transaction Rationale For personal use only Creating value and strength through consolidation Perseus transformed from a “one mine, one cashflow, one country” company to a lower risk, geographically diversified, multi- project operation by combining businesses with Amara – Improves quality and balan
Slide 7: Transaction Rationale (Continued)
Transaction Rationale (Continued) For personal use only Creating value and strength through consolidation Experienced exploration, development and operating teams to deliver outcomes – Strong combined technical services capability spanning near mine and green fields exploration, evaluation and feasi
Slide 8: Transaction Rationale: Benefits to Amara shareholders
Transaction Rationale (continued) For personal use only Benefits to Amara shareholders Attractive premium – Immediate premium to Amara shareholders of 42.2% (excluding warrant) based on each company’s mid-market closing price as of February 26, 2016 and 28.3% (excluding warrant) based on each compan
Slide 9: Pro Forma Metrics Summary
Pro Forma Metrics Summary For personal use only Perseus Amara Pro Forma Share price (local currency) A$0.415 £0.103 A$0.415 Shares outstanding (millions) 529.3 420.4 815.2 Options, warrants & perf. rights (million) 11.8 23.3 154.75 Market capitalisation – basic (US$m) 157.3 59.7 242.3 Cash and bulli
Slide 10: West African Portfolio: Overview
West African Portfolio: Overview For personal use only Portfolio of high quality operating and development assets Baomahun (100%) Sissingué (86%) Niger Status: DFS Status: DFS Mali M&I Mineral Resource: 2.2Moz M&I Mineral Resource: 0.9Moz Ore Reserve: 1.2Moz Ore Reserve: 0.4Moz Nigeria Burkina Faso
Slide 11: Geopolitical Diversification
Geopolitical Diversification For personal use only Transaction brings significant diversification advantages to the asset portfolio Mineral Resource1, 2 by Geographical Location Ore Reserve2 by Geographical Location Ghana Ghana Côte d’Ivoire 2.4Moz Côte d'Ivoire 3.7Moz 6.0Moz 5.7Moz Sierra Leone Sie
Slide 12: Pipeline from Exploration to Production
Pipeline from Exploration to Production For personal use only Production Edikan Construction Sissingué Feasibility Study S. Esuajah Yaoure Grumesa Baomahun Concept Study Mampong Dadieso Advanced Bélé Exploration Bokitsi Mbengué Mahalé Zouan-Hounien Nkotumso Initial Exploration Kounahiri Kwekutikrom
Slide 13: Portfolio Development Strategy
Portfolio Development Strategy For personal use only Strong pipeline of development projects within the expanded company • Preparation of Yaoure Definitive Feasibility Study (DFS) and rapid progression to development are the priority tasks – Based on the recently revised Mineral Reserve and optimise
Slide 14: Pro-forma Balance Sheet
Pro-forma Balance Sheet Liquid Assets as at December 2015 For personal use only Perseus Mining US$M1 Amara Mining US$M Pro-forma Combined US$M Liquid Assets2 98.1 Liquid Assets2 4.1 Liquid Assets2 102.2 Trade creditors3 33.7 Trade creditors 1.7 Trade creditors 35.3 Debt 0.0 Debt 0.0 Debt 0.0 Net Liq
Slide 15: Board and Management Team
Board and Management Team For personal use only Board of Directors Management Team • Non-Executive Chairman • Chief Executive Officer – Jeffrey Quartermaine – Reginald Gillard • Chief Financial Officer • Managing Director – Elissa Brown – Jeffrey Quartermaine • Group General Manager (Technical Servi
Slide 16: Peer Group Positioning
Peer Group Positioning For personal use only Market Capitalisation (US$m) $2,000 $8,283 $1,750 $1,500 $1,399 $1,250 $993 $980 $1,000 $750 $500 $384 $355 $242 $201 $250 $157 $146 $110 $107 $60 $36 $22 $0 Randgold Acacia B2Gold SEMAFO Asanko Endeavour Pro-Forma Roxgold Perseus Teranga True Gold Golden
Slide 17: Scope for Re-Rating
Scope for Re-Rating For personal use only Enterprise Value / Ounce1 (US$/oz) $500 $384 $400 $300 $239 $200 $167 $82 $70 $100 $59 $49 $38 $33 $30 $13 $12 $9 $7 $2 $0 Randgold Roxgold SEMAFO B2Gold Endeavour Acacia Asanko True Gold Teranga Golden Star Perseus Pro-Forma Amara Orezone Gryphon Price / Ne
Slide 18: Indicative Transaction Timeline
Indicative Transaction Timeline For personal use only 29 February 2016 By D + 28 days (“P”) P + 19 days P + 25 days P + 30 days (“D”) Announcement of Posting of scheme of Amara UK court meeting Scheme of Transaction arrangement shareholders’ to approve scheme arrangement documentation meeting to of
Slide 19: Transaction Rationale
Transaction Rationale For personal use only Creating value and strength with diversity through consolidation Company transformed to a lower risk, geographically diversified, multi-project operation by combining businesses Builds a portfolio of quality operating and development assets Financial stren
Slide 20: Contact
Contact For personal use only Jeff Quartermaine John McGloin Managing Director & CEO Chairman & CEO +61 8 6144 1700 +44 207 398 1420 Nathan Ryan Katharine Sutton Investor Relations (Australia) Head of Investor Relations +61 420 582 887 +44 207 398 1420 ir@amaramining.com 19
Slide 21: Appendices
For personal use only APPENDICES 20
Slide 22: Edikan Gold Mine – Ghana
Edikan Gold Mine – Ghana For personal use only 21
Slide 23: Edikan Gold Mine – Ghana
Edikan Gold Mine – Ghana For personal use only Edikan Site Layout Map Edikan Project Location 5km radius Esuajah Esuajah North South Abnabna Fobinso Mill site Fetish Bokitsi Chirawewa Mampong Reserves Resources Dadieso Current production pits 1) Please refer to page 34 of this Appendix for further d
Slide 24: Edikan Gold Mine – Ghana
Edikan Gold Mine – Ghana For personal use only Key LOM Operating Parameters Reserves & Resources (100% basis)1 Tonnes Grade Contained Parameter Details Category (Mt) (g/t) (Moz) Measured & Indicated Resources 151.7 Mt ore grading 1.1g/t gold containing 5.27 Moz1 Proven Reserve 44.5 1.2 1.66 Proved &
Slide 25: Edikan: Opportunities for Improvement
Edikan Gold Mine – Ghana For personal use only Opportunities for Improvement Reduce capital Optimise design Incremental upgrade Acquire stranded Install additional expenditure budget for underground of crusher and mill to assets located close power generating for relocation mining at Esuajah to Edik
Slide 26: Edikan: Mining in the Eastern Pits
Edikan Gold Mine – Ghana For personal use only Mining in the Eastern Pits – Fetish Mining in the Eastern Pits – Chirawewa 25
Slide 27: Sissingue Gold Project – Cote d'Ivoire
Sissingue Gold Project – Cote d’Ivoire For personal use only Feasibility Production & Cost Profile 100 1200 90 80 1000 70 800 60 50 600 40 30 400 20 200 10 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 NPV Sensitivity1 NET PRESENT VALUE (US$M) Real Discount Gold Price Rate (%) US$1,100/oz US$1,200/o
Slide 28: Sissingue Gold Project – Cote d'Ivoire
Sissingue Gold Project – Cote d’Ivoire For personal use only Key LOM Operating Parameters Sissingue Reserves & Resources (100% basis)1 Tonnes Grade Contained Parameter Details Category (Mt) (g/t) (Moz) Measured & Indicated Resources 16Mt at 1.7g/t gold for 880kozs contained gold1 Proven Reserve 3.4
Slide 29: Early Works at Sissingue
Sissingue Gold Project – Cote d’Ivoire For personal use only Early Works at Sissingue 28
Slide 30: Yaoure: High Quality Development Asset
Yaoure: High Quality Development Asset For personal use only High Quality Development Asset Reserves & Resources (100% basis)1 Tonnes Grade Contained • A positive PFS was completed for Yaoure in May Category (Mt) (g/t) (Moz) 2015 Proven Reserve 18.1 1.82 1.1 Probable Reserve 44.2 1.54 2.2 • PFS base
Slide 31: Yaoure: Track Record of Delivery
Yaoure:Track Record of Delivery For personal use only Yaoure Resource Growth and Project Advancement Mineral Resource Total Mineral Resource Preliminary increased to 4.4Moz increased by 10 times Economic Indicated (106.3Mt at from 0.2Moz Indicated Assessment 1.29g/t) and 2.4Moz (4.9Mt at 1.6g/t) to
Slide 32: Yaoure: Excellent Existing Infrastructure
Yaoure: Excellent Existing Infrastructure For personal use only Grid power within 5km Dual carriageway within 40km Brownfield site Water supply within 5km Skilled workforce 31
Slide 33: Baomahun: Strong Growth Opportunity
Baomahun: Strong Growth Opportunity For personal use only Solid Optionality in an Improved Gold Market • Baomahun is a Feasibility stage project in Sierra Leone • Feasibility Study completed in Q2 2013 based on 2Mtpa open pit only scenario • Potential to improve economics through combined open pit a
Slide 34: Baomahun: Further Growth Potential
Baomahun: Further Growth Potential For personal use only Typical Archean age deposit Underground mining opportunity Potential for hydro-electric power 33
Slide 35: Additional Cautionary Statements
Additional Cautionary Statements For personal use only MINERAL RESOURCES Mineral Resources and Ore Reserves Perseus and Amara estimate their reserves and resources in accordance with rules applicable to companies listed on their respective stock exchanges. Those rules differ in several significant r
Slide 36: Additional Cautionary Statements
Additional Cautionary Statements For personal use only Amara This Announcement includes information that relates to Amara’s mineral resources and reserves. This information was prepared by and is the responsibility of Amara only. It is extracted from Amara’s previous announcements as follows: • Yaou
Slide 37: Additional Cautionary Statements
Additional Cautionary Statements For personal use only Perseus confirms that all material assumptions underpinning the Sissingué production target, or the forecast financial information derived from the production target, in the previous announcements set out above continue to apply and have not mat
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