Perseus Mining Limited · ASX:PRU
Perseus Mining — Investor Presentation (February 2020)
36 slides from Perseus Mining's investor presentation, February 2020
Slide 1: West African Gold Producer, Developer and Explorer
WEST AFRICAN GOLD PRODUCER, DEVELOPER and EXPLORER CORPORATE PRESENTATION ASX/TSX: PRU www.perseusmining.com February 2020 PERSEUS MINING LIMITED| WWW.PERSEUSMINING.COM
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected develo
Slide 3: A Compelling Investment Opportunity
A COMPELLING INVESTMENT OPPORTUNITY West African multi-mine gold producer, developer & explorer, active in multiple jurisdictions Consistent and reliable gold producer with production steadily growing ~500,000oz pa by FY 2022 Balance sheet capacity and strong cash flows to fund our growth & a future
Slide 4: Perseus's Physical Assets
PERSEUS’S PHYSICAL ASSETS PERSEUS MINING LIMITED| WWW.PERSEUSMINING.COM
Slide 5: Two Producing Gold Mines
TWO PRODUCING GOLD MINES OUR LOCATIONS PRODUCING ASSETS Côte d’Ivoire - Sissingué (86%)1 West Africa M&I Mineral Resource: 0.5Moz Ore Reserve: 0.3Moz SISSINGUÉ GOLD MINE (4+ YEARS) Africa Ghana - Edikan (90%)2 M&I Mineral Resource: 2.7Moz Ore Reserve: 1.6Moz EDIKAN GOLD MINE (7+ YEARS) Notes: 1 Ore
Slide 6: 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 DEVELOPMENT PROJECT (? YEARS) M&I Open Pit Mineral Resource: 2.1Moz Ore Reserve: 1.6Moz Inferred Underground Resource: 0.6Moz Notes: 1 Ore Reserve
Slide 7: Edikan Gold Mine
EDIKAN GOLD MINE PERSEUS’S FIRST OPERATING MINE ✓ Large scale, multi open-pit mining operation ✓ Produced more than 1.57 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 8: 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 166 kozs gold in 2 years from first gol
Slide 9: 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 10: Yaouré Development on Time and Budget
YAOURÉ DEVELOPMENT ON TIME and BUDGET ✓ Exploitation Permit and Mining Convention received from Ivorian government ✓ Full scale construction commenced in September 2019 quarter, post board approval ✓ US$265 million capital budget. As at 31 January 2020, US$171 million committed, US$120 million expen
Slide 11: Perseus's Operating Performance & Financial Resources
PERSEUS’S OPERATING PERFORMANCE & FINANCIAL RESOURCES PERSEUS MINING LIMITED| WWW.PERSEUSMINING.COM
Slide 12: Performance in 2019
PERFORMANCE IN 2019 ✓ Group gold production of 266,249 ounces of gold at AISC of US$930 per ounce ✓ US$109.4 million of notional cashflow from operations Materially improved NPAT of A$30 million and gross profit of ✓ A$126 million for 6 months to 31 December 2019 Implied 2019 guidance of 250-290,000
Slide 13: Targetting Consistent Performance
TARGETTING CONSISTENT PERFORMANCE Production (oz) AISC (USD/oz) 120,000 Implemented $1,200 revised mining strategy at Edikan 100,000 $1,000 80,000 $800 60,000 $600 40,000 $400 20,000 $200 - $- Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Edikan Sissingué AISC USD/o
Slide 14: Looking Forward to 2020
LOOKING FORWARD TO 2020 GUIDANCE FY 2020 PARAMETER UNITS Dec 19 Half Jun 20 Half Full Year Gold Production ‘000 ounces 120 –140 140 – 160 260 – 300 All-In Site Costs $US/ounce 850 – 1,000 750 – 950 800 – 975 December 2019 Half Year production was 134,980 ounces at an AISC of US$942 per ounce. ✓ 4th
Slide 15: Strong Financial Position
As at 31 December 2019 STRONG FINANCIAL POSITION Cash on hand US$47.3 million USD million $180 $160 Cash & Bullion US$80.6 million $140 Bank Debt US$50.0 million $120 $100 Net Cash & Bullion US$30.6 million $80 $60 US$109 million in notional cashflow from $40 operations $20 $0 US$150 million Corpora
Slide 16: Capital Structure
CAPITAL STRUCTURE AUD USD Shareholder base as at 19 December 2019 ASX Share price per share1 1.27 0.84 1 Franklin Templeton Investments (USA) 2 Van Eck Associates Corp Shares outstanding 1,167 m 3 Vinva Investment Management Ltd 4 Ruffer LLP Performance Rights 34.6 m 5 RDV Corporation Market capital
Slide 17: Perseus's Growth Strategy
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$400 per ounce, from 2022” PERSEUS MINING LIMITED| WWW.PERSEUSMINING.COM
Slide 18: Attractive Long-Term Growth
ATTRACTIVE LONG-TERM GROWTH1 GROWTH DERIVED FROM Production (koz/pa) AISC (US$/oz) EXISTING ASSET BASE 600 $1,200 Year Ending 30 June 500 $1,000 ORGANIC GROWTH INITIVES 400 $800 TO EXTEND PRODUCTION PROFILE 300 $600 200 $400 SUCCESSFUL EXECUTION KEY TO DELIVERY 100 $200 0 $0 2019* 2020 2021 2022 202
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: Perseus's Environment, Social & Governance Responsibilities
PERSEUS’S ENVIRONMENT, SOCIAL & GOVERNANCE RESPONSIBILITIES Our Corporate Mission is “to generate material benefits for all of our stakeholders, in fair and equitable proportions.” PERSEUS MINING LIMITED| WWW.PERSEUSMINING.COM
Slide 25: 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 26: Perseus' Sustainability Snapshot
PERSEUS’ SUSTAINABILITY SNAPSHOT 1st Independent Sustainability Report due Q1 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 27: Experienced Board of Directors & Management Team
EXPERIENCED BOARD OF DIRECTORS & MANAGEMENT TEAM Sean Harvey Jeff Quartermaine Management Position Non-Executive Chairman CEO and Managing Director Jeff Quartermaine Chief Executive Officer & Managing Director Martijn Bosboom General Counsel and Company Secretary Chris Woodall Chief Operating Office
Slide 28: A Compelling Investment Opportunity
A COMPELLING INVESTMENT OPPORTUNITY West African multi-mine gold producer, developer & explorer, active in multiple jurisdictions Consistent and reliable gold producer with production steadily growing ~500,000oz pa by FY 2022 Balance sheet capacity and strong cash flows to fund our growth & a future
Slide 29: Contacts
CONTACTS APPENDICES ASX/TSX: PRU www.perseusmining.com Jeff Quartermaine Andrew Grove Managing Director & CEO GM Business Development & +61 8 6144 1700 Investor Relations +61 414 011 383 Panoramic view of the Yaouré site, Perseus’s third mine development. PERSEUS MINING LIMITED| WWW.PERSEUSMINING.CO
Slide 30: Perseus Group Mineral Resources and Ore Reserves
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 31: Edikan Mineral Resource Estimate
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 32: Edikan Ore Reserve Estimate
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 33: Sissingué Mineral Resource Estimate
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 34: Sissingué Ore Reserve Estimate
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 F
Slide 35: Yaouré Mineral Resource Estimate
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 1,2,3,4 CMA 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-tota
Slide 36: Yaouré Ore Reserve Estimate
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 Yaouré3,4
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