Slide 1: Operational & Financial Results
Q1 Operational Q2 & Financial Results Q3 › August 1, 2017 Q4
Slide 2: Disclaimer & Forward Looking Statements
Q2-2017 RESULTS DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect t
Slide 3: Speakers and Table of Content
SPEAKERS TABLE OF CONTENT SÉBASTIEN DE MONTESSUS Chief Executive Officer, President & Director 1 HALF-YEAR IN REVIEW OPERATIONAL AND JEREMY LANGFORD Chief Operating Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND VINCENT BENOIT 3 PROJECT EVP – CFO and Corporate Development 4 CONCLUSION PATRICK BOUIS
Slide 4: H1-2017 in Review
Q2-2017 RESULTS H1-2017 IN REVIEW Strong Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Strong safety record Houndé on-time and on- Added 1.0Moz of Indicated Acquiring Avnel (Kalana Produ
Slide 5: Safety Is Our First Priority
OPERATIONAL EXCELLENCE 1 SAFETY IS OUR FIRST PRIORITY Q2-2017 was successfully completed with no LTIs Lost Time Injury Frequency Rate 0.79 8.4m Man Hours for operations in H1-17 with only 1 LTI 0.40 0.31 0.00 0.00 5.0m Man Hours on Peer Group FY2016 Last Houndé Agbaou Average 12-months (since start)
Slide 6: Strong H1-2017 Performance
OPERATIONAL EXCELLENCE 1 STRONG H1-2017 PERFORMANCE On track to meet full year guidance › … 311koz Tracking well PRODUCTION within GUIDANCE guidance 0koz 600-640koz $901/oz In line with AISC guidance and expected to GUIDANCE come down $860/oz $905/oz further $65m FREE CASH FLOW In line with GUIDANCE
Slide 7: Launched Improvements Across the Group
OPERATIONAL EXCELLENCE 1 LAUNCHED IMPROVEMENTS ACROSS THE GROUP Transforming From Stand Alone Units To Integrated Group TABAKOTO ZERO BASE CSR GOVERNANCE PLAN GROWING COST LOCAL REDUCTION TALENT FOCUSED ON OPERATIONAL EXCELLENCE WORKING IT SUPPLY CAPITAL SYSTEMS CHAIN 7
Slide 8: Houndé On-Time and On-Budget
PROJECT DEVELOPMENT 2 HOUNDÉ ON-TIME AND ON-BUDGET First Gold Pour Expected in Q4-2017 8
Slide 9: Significant Exploration Efforts Underway
UNLOCK EXPLORATION VALUE 3 SIGNIFICANT EXPLORATION EFFORTS UNDERWAY Starting To Deliver Our Against 5-year Strategy 4.0-6.0Moz 4.0-6.0Moz 10-15Moz 5-year Indicated 2.5-3.5Moz Resource Discovery Target 1.5-2.5Moz 0.5-1.5Moz 0.5-1.5Moz 1.5Moz 0.5-1.0Moz Discovered Greater Ity Houndé Tabakoto Agbaou Ka
Slide 10: Avnel Acquisition
PORTFOLIO MANAGEMENT 4 AVNEL ACQUISITION Fits Our Strategic Criteria 2 Moz 2.8g/t RESERVE RESERVE GRADE Reserve life of mine plan Production AISC 148koz $561/oz 203koz PROD YEAR 1-5 AISC YEAR 1-5 170koz Optimization potential for +150kozpa 123koz 123koz 119koz $976/oz $865/oz 88koz 50% $676/oz $689/
Slide 11: Avnel Acquisition: Strengthens Our Project Pipeline
PORTFOLIO MANAGEMENT AVNEL ACQUISITION : STRENGHTENS OUR PROJECT PIPELINE 4 Kalana to be developed after the Houndé and Ity CIL projects Houndé Houndé Construction undé, Burkina Faso ITY CIL Ity CIL Construction (CIL), Côte d'Ivoire KALANA DFS Optimization Construction EXPLORATION GREENFIELD Kalana,
Slide 12: Improving the Quality of Our Portfolio
PORTFOLIO MANAGEMENT 4 IMPROVING THE QUALITY OF OUR PORTFOLIO Significant Progress Already Made PORTFOLIO IN 2015 PORTFOLIO IN 2017 AISC, $/oz $1,200 $1,150 AISC, $/oz $1,100 $1,200 $1,050 Youga $1,050 SOLD Tabakoto $1,000 Youga Tabakoto $950 Nzema Nzema $900 $850 $850 Agbaou $800 Ity HL Houndé Kala
Slide 13: Clear Path to Build +900koz Producer at ≤$800/oz AISC
PORTFOLIO MANAGEMENT CLEAR PATH TO BUILD +900KOZ PRODUCER AT ≤$800/OZ AISC STRATEGIC MILESTONES $1,137 +900koz FOR 2019 Project pipeline to feed production growth +900koz 600-640koz (excl. Houndé) Annual production 584koz $1 010 517koz 462koz ≤800$/oz 317koz $922 $884 All-in Sustaining Cost $860-905
Slide 14: Operational and Financial Summary
1 HALF-YEAR IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 15: All Mines on Track to Meet Guidance
Q2-2017 RESULTS ALL MINES ON TRACK TO MEET GUIDANCE 175koz 159koz 152koz 146koz 138koz $901/oz $898/oz $905/oz $897/oz $855/oz Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Production, koz AISC, $/oz INSIGHTS BY MINE AGBAOU TABAKOTO NZEMA ITY KARMA 43koz 41koz 26koz 27koz 32koz 42koz 45koz 24koz $985/oz 16koz 14koz
Slide 16: Margins Increased Despite Increased Exploration
Q2-2017 RESULTS MARGINS INCREASED DESPITE INCREASED EXPLORATION Increased contributions from Karma, Nzema and Tabakoto PRODUCTION VARIATION 311koz H1-16 vs H1-17 Bridge, in koz +6koz (13koz) +44koz 270koz (8koz) +13koz (2koz) AISC: +20% AISC: -20% AISC: -5% AISC: +13% H1-2016 Youga Agbaou Nzema Taba
Slide 17: Mine All-in Sustaining Margin
Q2-2017 RESULTS MINE ALL-IN SUSTAINING MARGIN Our mine All-in Sustaining Margin is more diversified across our portfolio All-In Sustaining Margin From Mines Which Excludes Corporate And Exploration Costs Agbaou Nzema Tabakoto Ity Karma Youga H1-2015 H1-2016 H1-2017 63% 65% 14% 11% $84m Z $95m $116m
Slide 18: Net Earnings Breakdown
Q2-2017 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS of $0.23 for H1-2017 SIX MONTHS ENDED All-In Sustaining Margin to Adjusted Net Earnings Bridge JUN. 30, JUN. 30, For the 6-month period ended June 30, 2017 (in US$ million) A = Adjustments made 2017 2016 Gold Revenue 379 304 $4m Operating expenses
Slide 19: Free Cash Flow from Operations
Q2-2017 RESULTS FREE CASH FLOW FROM OPERATIONS Cash flow before growth projects increased, despite increased exploration SIX MONTHS ENDED INSIGHTS (in US$ million) JUN 30, 2017 JUN 30, 2016 1. Gold sales up mainly due to the addition of the GOLD SOLD, koz 1 315 248 Karma mine, as well as an increase
Slide 20: Change in Net Debt
Q2-2017 RESULTS CHANGE IN NET DEBT As Expected, Net Debt Increased With Growth Project Spend Net Debt Bridge Liquidity and Financing Sources at June 30, 2017 Net Debt / Adj. EBITDA 0.75x $85m $183m Cash Position +$6m ($52m) +$59m $215m $130m +$166m Undrawn RCF 0.11x JUN. 30, MAR. 31, DEC. 31, $26m (
Slide 21: Debt Re-negotiation Progressing Well
Q2-2017 RESULTS DEBT RE-NEGOTIATION PROGRESSING WELL Upsizing RCF Provides Significant Headroom To Fund Growth INSIGHTS +$900m to fund growth › Re-negotiation, increase and extension of existing $350m Revolving Credit Facility (“RCF”) in progress › More than $500m credit-approved 405 commitments fro
Slide 22: Details by Mine and Project
1 HALF-YEAR IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 23: Agbaou Mine, Côte d'Ivoire
Q2-2017 RESULTS AGBAOU MINE, CÔTE D’IVOIRE Production and AISC Improved in Q2 over Q1 Q2-17 vs Q1-17 INSIGHTS: Production and AISC › Production up 8% as greater tonnes Production, koz AISC, US$/oz 660/oz processed and better grades offset the 57koz slightly lower recovery rate 49koz 46koz 45koz › AI
Slide 24: Agbaou Mine, Côte d'Ivoire
Q2-2017 RESULTS AGBAOU MINE, COTE D’IVOIRE Exploration progressed well in H1-2017 Agbaou Site Map INSIGHTS › Exploration progressed well in H1- 2017, with a total of approximately 26,100 meters drilled out of the 45,000 meters planned for the year › The drill program is focused on the MPN extension,
Slide 25: Tabakoto Mine, Mali
Q2-2017 RESULTS TABAKOTO MINE, MALI Ongoing cost saving and optimisation programs are underway Q2-17 vs. Q1-17 INSIGHTS: Production and AISC › Production decreased mainly due to AISC, US$/oz lower open pit and underground volumes which was offset by the usage 48koz of stockpiles. 43koz 41koz 39koz 3
Slide 26: Tabakoto Mine, Mali
Q2-2017 RESULTS TABAKOTO MINE, MALI Significant focus for 2017 INSIGHTS Tabakoto Site Map › As Tabakoto operations are characterized by a short-term mine life, a $9 million exploration program totaling approximately 86,000m of drilling on Tabakoto and Kofi properties has been planned for 2017, of wh
Slide 27: Ity Heap Leach Mine, Côte d'Ivoire
Q2-2017 RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE Production expected to improve in H2 with higher grades Q2-17 vs. Q1-17 INSIGHTS: Production and AISC › Production decreased due to the Production, koz AISC, US$/oz recovery rate decline and less stacked tonnage which was 21koz partially offset by b
Slide 28: Ity Mine, Côte d'Ivoire
Q2-2017 RESULTS ITY MINE, COTE D’IVOIRE Indicated Resource grew by 1.0Moz in H1-2017 INSIGHTS Ity Mine Drilling Targets › For 2017, a $10 million exploration program totaling approximately 52,500 meters has been planned for the greater Ity area, of which roughly 42,000 meters was completed in H1-201
Slide 29: Nzema Mine, Ghana
Q2-2017 RESULTS NZEMA MINE, GHANA Higher grades expected to drive AISC lower in H2-2017 Q2-17 vs. Q1-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production increased due to improved 26koz 27koz recovery rates and higher grades, which 24koz 24koz compensated for reduced throughput
Slide 30: Karma Mine, Burkina Faso
Q2-2017 RESULTS KARMA MINE, BURKINA FASO Continues to perform well with optimization program nearly completed Q2-17 vs. Q1-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Production decreased due to less tonnage stacked and lower recovery rates which 32koz was partially offset by hig
Slide 31: Karma Mine, Burkina Faso
Q2-2017 RESULTS KARMA MINE, BURKINA FASO Expecting to further extend mine life following the H2 campaign Karma Site Map INSIGHTS › In 2017 a $4 million exploration program totaling approximately 38,000 meters has been planned of which approximately 28,000m was completed in H1-2017. › During H1-2017,
Slide 32: Houndé Project, Burkina Faso
Q2-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Progressing on-time and on budget for Q4 gold pour SIGNIFICANT ACHIEVEMENTS TO-DATE: Mining started in January › Construction is progressing on-time with 90% of the total project complete, with the first gold pour expected in the fourth quarter of 2017. ›
Slide 33: Houndé Project, Burkina Faso
Q2-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Progressing on-time and on budget for Q4 gold pour (continued) SIGNIFICANT ACHIEVEMENTS TO-DATE (continued) : Tailings Storage Facility › The high speed power station is 87% complete with all 16 gensets delivered and installed. › ›The two million liter di
Slide 34: Houndé Project, Burkina Faso
Q2-2017 RESULTS HOUNDÉ PROJECT, BURKINA FASO Positive initial results received INSIGHTS Exploration Targets in Proximity to the Planned Mill › Following a two year period of no exploration drilling, activities resumed in 2017 with a $5 million program › During H1 2017 a total of 6,400m DD, 2700m RC
Slide 35: Conclusion
1 HALF-YEAR IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 36: Upcoming Catalysts
Q2-2017 RESULTS UPCOMING CATALYSTS 2017 OUTLOOK: › Gold production expected to increase to 600-640koz (excluding Houndé) Immediate › AISC expected to decrease further to $860-905/oz › Free Cash Flow (before growth projects, interest, WC, tax and financing cost) expected to increase to $150m, Cashflo
Slide 37: Appendix
1 HALF-YEAR IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 38: Production and Cost Details by Mine by Quarter
Q2-2017 RESULTS PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Q2-2017 Q1-2017 Q2-2016 Physicals Total tonnes mined – OP1 000t 6,952 6,356 5,920 1,41
Slide 39: Production and Cost Details by Mine by Half Year
Q2-2017 RESULTS PRODUCTION AND COST DETAILS BY MINE BY HALF YEAR AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 H1-2017 H1-2016 Physicals Total tonnes mined – OP1 000t 13,308 11,989 4,108 3,562 3,438 3,936 3,777 3,682 7,959 2,93