Perseus Mining Limited · ASX:PRU
Perseus Mining — Merger or Acquisition (June 2020)
52 slides from Perseus Mining's merger presentation, June 2020
Slide 1: Perseus to Acquire Exore Resources
PERSEUS TO ACQUIRE EXORE RESOURCES ASX/TSX: PRU INVESTOR PRESENTATION ASX: ERX www.perseusmining.com www.exoreresources.com.au ABN: 27 106 808 986 JUNE 2020 ABN: 16 009 146 794
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 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 Exore Resources Limited (Exore). It does not constitute a pros
Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS None of Perseus, Exore (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 disclaim or revise forward
Slide 4: Transaction Details
TRANSACTION DETAILS • Perseus Mining Limited to acquire 100% of the shares in Exore Resources Limited via a Scheme of Arrangement Overview • 100% consolidation of ownership of Exore’s Bagoe and Liberty projects, following exercising of a pre-emptive right by Exore to acquire the 20% interest, held b
Slide 5: Pro Forma Metrics
PRO FORMA METRICS Perseus Exore Pro Forma Share price / Offer price A$/share 1.340 0.105 1.250 Shares outstanding m 1,168 589 1,2161 Equity Value - basic A$m 1,565 62 1,629 Cash and bullion (31 March 2020) A$m 265.5 5.82 271.2 Debt (31 March 2020) A$m 245.8 - 245.8 Enterprise Value A$m 1,545 56 1,60
Slide 6: Transaction Rationale
Exore Project Area TRANSACTION RATIONALE Exore’s highly prospective ~2,000km2 land package in northern Cote d’Ivoire is 1 located within trucking distance of Perseus’s Sissingué Gold Mine Exore’s tenements host the recently estimated Bagoe maiden Mineral 2 Resource that has the potential to be devel
Slide 7: Benefits for Exore Shareholders
BENEFITS FOR EXORE SHAREHOLDERS The transaction is unanimously recommended by the Board of Exore • Through Perseus shares, retain exposure to Exore’s assets and future upside associated with exploration • Share in Perseus’s synergies including: ✓ Sharing of synergies • • the potential to utilise the
Slide 8: About Exore Resources
ABOUT EXORE RESOURCES Shallow High Grade Resources extending from surface – JORC 2012 ✓ Indicated Mineral Resource of 0.75Mt @ 3.5g/t for 90koz and Inferred Mineral Resource of 5.85Mt @ 2.3g/t for 440koz (~85% of Antoinette ounces within 150m, ~90% of Veronique ounces within top 100m)1 ✓ Strategic l
Slide 9: Benefits for Perseus Shareholders
BENEFITS FOR PERSEUS SHAREHOLDERS Acquisition of shallow, relatively high grade resources and ~2,000km2 of highly prospective land package in close proximity to Sissingué Shallow relatively ✓ high-grade Mineral Resource • Acquisition of shallow relatively high-grade Mineral Resource (90koz indicated
Slide 10: About Perseus
Côte d’Ivoire - Sissingué (86%)1,4 Status Producing FY19 Production 87koz ABOUT PERSEUS M&I Mineral Resource: 0.5Moz Ore Reserve: 0.3Moz West African multi-mine gold producer, developer & explorer, active in multiple jurisdictions Ghana - Edikan (90%)2,4 Status Producing Consistent and reliable gold
Slide 11: Perseus - Attractive Long-Term Growth
PERSEUS - ATTRACTIVE LONG-TERM GROWTH1 GROWTH DERIVED FROM Production (koz/pa) AISC (US$/oz) EXISTING ASSET BASE 600 $1,200 Year Ending 30 June 500 $1,000 ORGANIC GROWTH 400 $800 INITIATIVES TO EXTEND PRODUCTION PROFILE 300 $600 200 $400 SUCCESSFUL EXECUTION KEY TO DELIVERY 100 $200 0 $0 2019* 2020
Slide 12: Perseus - Strong Financial Position
As at 31 March 2020 PERSEUS - STRONG FINANCIAL POSITION Cash on hand US$124.7 million Cash & Bullion US$162.0million Bank Debt US$150.0 million Net Cash & Bullion US$12.0 million US$24 million in notional cashflow from operations US$150 million Corporate Facility (fully drawn as a contingency agains
Slide 13: Indicative Timetable
INDICATIVE TIMETABLE Event Indicative Timing First Court Hearing Early August 2020 Scheme Meeting Early September 2020 Second Court Hearing Early September 2020 Effective Date Early September 2020 Record Date Early September 2020 Targeted Implementation Date Mid September 2020 Note: The dates outlin
Slide 14: Appendices
APPENDICES ASX/TSX: PRU ASX: ERX www.perseusmining.com www.exoreresources.com.au Jeff Quartermaine Justin Tremain Managing Director & CEO Managing Director +61 8 6144 1700 +61 8 6117 0446 Andrew Grove Trevor O’Connor GM Business Development & CFO / Company Secretary Investor Relations +61 8 6144 170
Slide 15: Appendix 1: Exore Asset Overview
APPENDIX 1 EXORE ASSET OVERVIEW 15
Slide 16: North Cote d'Ivoire
North Cote d’Ivoire Substantial ~2,000km2 position all within a 50km radius - along strike from operating gold mines and multi-million ounce gold deposits 100% consolidation of ownership of Exore’s Bagoe and Liberty projects expected, ✓ following exercising of a pre-emptive right by Exore to acquire
Slide 17: Bagoe Project
Bagoe Project Majority of permit area remains unexplored ✓ 40-50km east of Barrick’s Tongon gold mine (4.2Moz) and ~40km south of Perseus’ Sissingue gold mine (1Moz) ✓ Immediately along strike from Barrick’s recent gold discoveries (Boundiali Project | Fonondara-Sani-Kassere-Baya) Antoinette | grade
Slide 18: Liberty Project
Liberty Project +20km Gold Trend ✓ 30-40km south of Bagoe & along strike to Barrick’s Tongon gold mine (4.3M oz) Limited work has defined a 20-kilometre gold-in-soil anomaly along the prolific ✓ Tongon gold corridor ✓ In-situ gold confirmed with air core at all prospects along the 20km Liberty trend
Slide 19: Tengrela Project
Tengrela Project Adjacent to Bagoe Project (within 15km) ✓ Right to earn 90% interest Logbog Logbog ✓ • Anomaly extends for approximately 4 kilometres proximal to the contact with a granite 2m @ 37.8g/t 4m @ 13.1g/t 6m @ 5.2g/t Zinguinasso • Less than 1 kilometre tested with drilling1: • 2m @ 37.8g/
Slide 20: Appendix 2: Perseus Asset Overview
APPENDIX 2 PERSEUS ASSET OVERVIEW 20
Slide 21: Two Producing Gold Mines
TWO PRODUCING GOLD MINES OUR LOCATIONS PRODUCING ASSETS Côte d’Ivoire - Sissingué (86%)1,3 West Africa M&I Mineral Resource: 0.5Moz Ore Reserve: 0.3Moz SISSINGUÉ GOLD MINE (3+ YEARS) Africa Ghana - Edikan (90%)2,3 M&I Mineral Resource: 2.7Moz Ore Reserve: 1.6Moz EDIKAN GOLD MINE (7+ YEARS) Notes: 1
Slide 22: One Mine in Development
ONE MINE IN DEVELOPMENT PROJECTS West Africa YAOURÉ OPEN PIT DEVELOPMENT PROJECT (8.5+ YEARS) Africa YAOURÉ UNDERGROUND Côte d’Ivoire - Yaouré (90%)1, 2,3 DEVELOPMENT PROJECT (? YEARS) M&I Open Pit Mineral Resource: 2.1Moz Ore Reserve: 1.6Moz Underground Inferred Resource: 0.6Moz Notes: 1 Ore Reserv
Slide 23: Edikan Gold Mine
EDIKAN GOLD MINE PERSEUS’S FIRST OPERATING MINE ✓ Large scale, multi open-pit mining operation ✓ Produced more than 1.6 Moz gold to date ✓ 2.7 Moz M&I Mineral Resources incl. 1.6 Moz of P&P Ore Reserves1 ✓ Updated LOMP delivering lower AISC and improved cash flow ✓ Mine life of 7+ years with strong
Slide 24: Sissingué Gold Mine
SISSINGUÉ GOLD MINE PERSEUS’S NEWEST MINE ✓ Higher-grade, low-cost, multi open-pit mining operation ✓ Successful development and ramp up in production in Q1 2018 Exceptional performance from plant in terms of runtime, throughput rates ✓ and recovery ✓ Produced 178 kozs gold ✓ Repaid 100% of the US$1
Slide 25: Yaouré Gold Project
YAOURÉ GOLD PROJECT PERSEUS’S NEXT GOLD MINE Economically attractive - IRR of 27% and 32 month payback period at ✓ US$1,250/oz gold Technically robust - 3.3Mtpa plant with average annual gold production ✓ of 215,000 ounces at an AISC of US$734/oz for first 5 years Excellent location - Close to excel
Slide 26: Yaouré Development on Time and on Budget
YAOURÉ DEVELOPMENT ON TIME and ON BUDGET ✓ Full scale construction commenced in September 2019 quarter, post board approval US$265 million capital budget. As at 30 April 2020, US$195 million committed, US$145 ✓ million expensed and US$140 million paid Camp accommodation ✓ 2.0 million man hours LTI f
Slide 27: Appendix 3: Perseus's Operating Performance & Financial Resources
APPENDIX 3 PERSEUS’S OPERATING PERFORMANCE & FINANCIAL RESOURCES 27
Slide 28: Performance in 2019
PERFORMANCE IN 2019 Group gold production of 266,249 ounces of gold at AISC of ✓ US$930 per ounce, including: • 179,573 ounces from Edikan @ AISC US$1,012 per ounce • 86,676 ounces from Sissingué @ AISC US$761 per ounce ✓ US$109.4 million of notional cashflow from operations Implied 2019 guidance of
Slide 29: March 2020 Quarter
MARCH 2020 QUARTER Implemented COVID-19 management measures and committed US$388k to ✓ local communities and host governments to combat the spread of the virus ✓ Reconciled March 2020 Quarter gold production of 57,983 ounces, including: • 38,019 ounces from Edikan • 19,964 ounces from Sissingué ✓ We
Slide 30: Targeting Consistent Performance
TARGETTING CONSISTENT PERFORMANCE Implemented revised mining Production (oz) AISC strategy at Edikan 120,000 $1,200 100,000 $1,000 80,000 $800 60,000 $600 40,000 $400 20,000 $200 - $- Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Edikan Sissingué AISC USD/oz (RHS) 3 0
Slide 31: Appendix 4: Perseus's Growth Strategy
APPENDIX 4 PERSEUS’S GROWTH STRATEGY Our Corporate Objective is “to progressively position our business to sustain gold production of approximately 500,000 ounces per year at a cash margin of not less than US$400 per ounce, from 2022” 31
Slide 32: Perseus - Attractive Long-Term Growth
PERSEUS - ATTRACTIVE LONG-TERM GROWTH1 GROWTH DERIVED FROM Production (koz/pa) AISC (US$/oz) EXISTING ASSET BASE 600 $1,200 Year Ending 30 June 500 $1,000 ORGANIC GROWTH 400 $800 INITIATIVES TO EXTEND PRODUCTION PROFILE 300 $600 200 $400 SUCCESSFUL EXECUTION KEY TO DELIVERY 100 $200 0 $0 2019* 2020
Slide 33: Growth Strategy
GROWTH STRATEGY Currently on track to produce ~500,000 ounces of gold per year based on ✓ existing Ore Reserves Seeking to expand the existing Ore Reserve inventory through active ✓ exploration within trucking distance of existing infrastructure at Edikan, Sissingué and Yaouré. Significant potential
Slide 34: Edikan Exploration
EDIKAN EXPLORATION • Exploration focused on generating new targets within truckable distance of Edikan with potential to impact positively on the LOM; • Corporate Geoscience Group (CGSG) study in 2017 provided a detailed geological framework, perspectivity and targeting analysis based on all availab
Slide 35: Sissingué Exploration
SISSINGUÉ EXPLORATION • Targeting geochemical and intrusive related anomalies at Zanikan, Fimbiasso, Papara and Zangologo areas, and • In each case, mineralisation is spatially related to intrusives interpreted from aeromagnetic data. Exploration Program • Three deep holes to be drilled beneath the
Slide 36: Yaouré Exploration – Near Mine Targets
YAOURÉ EXPLORATION – NEAR MINE TARGETS • “High-prospectivity corridors” interpreted from geophysics and soil geochemistry. • Priority targets include; CMA NE • CMA Underground extensions; GOVISOU ➢ Deep drilling underway ➢ 3D HiSeis survey to commence Q1 2020 • Extensions of CMA and basin boundary t
Slide 37: Yaouré – CMA Underground
YAOURÉ – CMA UNDERGROUND CMA Deep Drilling • Encouraging results from 3 diamond YDD0540: 391.04m to 399.53m drill holes designed to intersect structure on step out from CMA pit • CMA-style mineralisation intersected at target depth in both YDD0539 and YDD0540 • YDD0541 intersected mineralisation at
Slide 38: Yaouré Exploration – Regional Targets
YAOURÉ EXPLORATION – REGIONAL TARGETS • Soil geochemistry used almost exclusively in targeting. • Geophysics acquired (mags, spec) and interpreted, with ‘high- prospectivity corridors’ defined. Akasou • High resolution VTEMTM survey being flown. • Numerous geochem targets and artisanal sites not fol
Slide 39: Appendix 5: Perseus's Environment, Social & Governance Responsibilities
APPENDIX 5 PERSEUS’S ENVIRONMENT, SOCIAL & GOVERNANCE RESPONSIBILITIES Our Corporate Mission is “to generate material benefits for all of our stakeholders, in fair and equitable proportions.” 39
Slide 40: Perseus's Approach to Sustainability
PERSEUS’S APPROACH TO SUSTAINABILITY To be a sustainable business we have a responsibility to share the benefits we generate with all stakeholders. We will achieve this through strong economic performance, developing our people, enhancing our local communities and minimising our environmental impact
Slide 41: Perseus' Sustainability Snapshot
PERSEUS’ SUSTAINABILITY SNAPSHOT 1st Independent Sustainability Report due Q2 2020 FY2019 0.53/2.37 LTI/TRI 96% National workforce with strong local participation US$626m Capital invested US$5.6m Community donations & US$31m Tax and Royalties paid US$193m Local supplier spending extensive community
Slide 42: Perseus Board & Management Team
PERSEUS BOARD & MANAGEMENT TEAM Sean Harvey Jeff Quartermaine Management Position Non-Executive Chairman CEO and Managing Director Jeffrey Quartermaine Chief Executive Officer & Managing Director Colin Carson Executive Director (Commercial Services) Martijn Bosboom General Counsel and Company Secret
Slide 43: Appendix 6: Mineral Resources and Ore Reserves
APPENDIX 6 MINERAL RESOURCES AND ORE RESERVES
Slide 44: Perseus Group
PERSEUS GROUP MINERAL RESOURCES AND ORE RESERVES PERSEUS GROUP MINERAL RESOURCES 2,3 Measured Indicated Measured + Indicated Inferred Project Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz Edikan5 28.4 0
Slide 45: Exore Resources Bagoe Project
EXORE RESOURCES BAGOE PROJECT MINERAL RESOURCE ESTIMATE Indicated Inferred Total Tonnes Grade Tonnes Grade Tonnes Grade Lower Cut-Off Deposit Ounces Ounces Ounces (kt) (g/t) (kt) (g/t) (kt) (g/t) Antoinette 950 3.0 90,000 7,450 1.6 390,000 8,400 1.8 485,000 0.5g/t Veronique - - - 1,350 2.8 120,000 1
Slide 46: Edikan
EDIKAN MINERAL RESOURCE ESTIMATE 9,10,11 EDIKAN MINERAL RESOURCES as at 31 DECEMBER 2019 Measured Indicated Measured + Indicated Inferred Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz Mt g/t gold k
Slide 47: Edikan
EDIKAN ORE RESERVE ESTIMATE 3,6,7 EDIKAN ORE RESERVES as at 31 DECEMBER 2019 Notes: Proved Probable Proved + Probable 1. Based on December 2019 Mineral Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Resource estimate which is depleted Deposit to 31st December 2019 and using a go
Slide 48: Sissingué
SISSINGUÉ MINERAL RESOURCE ESTIMATE 6,7,8,9 SISSINGUÉ MINERAL RESOURCES as at 30 JUNE 2019 Measured Indicated Measured + Indicated Inferred Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz Mt g/t gold
Slide 49: Sissingué
SISSINGUÉ ORE RESERVE ESTIMATE 7,8 SISSINGUÉ ORE RESERVES as at 30 JUNE 2019 Proved Probable Proved + Probable Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz Sissingué1,2,6 Open pit 3.1 2.3 228 0.1 2.1 10 3.3 2.3 238 3
Slide 50: Yaouré
YAOURÉ MINERAL RESOURCE ESTIMATE 7,8,9 YAOURÉ MINERAL RESOURCES as at 30 JUNE 2019 Indicated Inferred Deposit Quantity Grade Gold Quantity Grade Gold Deposit Type Mt g/t gold koz Mt g/t gold koz CMA1,2,3,4 Open Pit 27.3 1.78 1,570 11 1.1 400 1,2,3,4 Yaouré Open Pit 18.8 0.80 480 33 0.9 900 Sub-total
Slide 51: Yaouré
YAOURÉ ORE RESERVE ESTIMATE 1,2,5 YAOURÉ ORE RESERVES as at 30 JUNE 2019 Proved Probable Proved + Probable Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz CMA3,4 Open Pit - - - 20.6 2.02 1,334 20.6 2.02 1,334 3,4 Yaouré
Slide 52: Additional Cautionary Statements
ADDITIONAL CAUTIONARY STATEMENTS Competent Person Statement Perseus This announcement includes information that relates to Perseus’ mineral resources, ore reserves, exploration results and production targets. This information was prepared by and is the responsibility of Perseus only. All production