Slide 1: West Africa Exploration Potential
WEST AFRICA EXPLORATION POTENTIAL ALFRED BAKU – EVP and Head of West Africa, Gold Fields October 2015
Slide 2: Key Themes
Key Themes Geographical Spread and Footprint Doing Business in West Africa Type and Quality of Deposits West Africa’s Gold Mining Portfolio Exploration Spend Tax Rates of African Mining Countries How Africa Compares SWOT Analysis 2
Slide 3: West Africa – Spread and Footprint
West Africa – Spread and Footprint 15 countries under the Economic Community of West African States MALI NIGER SENEGAL BURKINA GUINEA-B BENIN GUINEA TOGO COTE NIGERIA SIERRA D’IVOIRE LEONE GHANA Same currency (FCFA) in 8 states through West Africa Economic and Monetary Union (WAEMU) 3
Slide 4: Doing Business in West Africa
Doing Business in West Africa Regional Regulatory framework • ECOWAS guidelines serves as guidelines for drafting or updating all regulation pertinent to doing Business in WA. • 8 West Africa countries have subscribed to the Organisation for the Harmonisation of Legal Business in Africa (OHADA). Inv
Slide 5: West Africa – Type and Quality of Deposits
West Africa – Type and Quality of Deposits High grade & large deposits Large deposits, but low grade (Heap Leach?) Cluster of high grade modest size deposits – Vein like Senegal Kenieba Niger Burkina Faso Mali Fekola Sebba belt Hounde Belt SE Burkina Natougou Yanfolila Syama Siguiri basin Tengrela G
Slide 6: West Africa - Producing Gold Assets
West Africa - Producing Gold Assets As at the end of 2014: 44 mines in 8 countries produced 7.2mOz 81.4Moz at 2.34g/t reserves and 255Moz Resources at 2.87 g/t. Yatela-3.2mOz Senegal Inata-6.3mOz Essakan-9mOz Sadiola-13.3mOz Mali Samira-1mOz Loulo-6.3mOz Kalsaka-1.0mOz Tabakoto-4.8mOz Bissia-5.1
Slide 7: West Africa – Exploration Spend
West Africa – Exploration Spend Greenfields, Late Stage and Mine Site Gold Exploration Spent (2009-2013). USA – Gold Exploration spent • US$4.4B spent on gold exploration in USA Africa - Gold Exploration spent • Similar amount spent by all of Africa over same period. • West Africa accounting for 62%
Slide 8: West Africa - Upside
West Africa - Upside Low maturity exploration terrain that underwent 2 cycles of modern exploration Archean terrain poorly explored and represents a new search space Essakan Inata Sadiola Loulo Bissa Mana Youga Kalana Tongon Ahafo Bonikro Tarkwa 8
Slide 9: Tax Rates of African Mining Countries
Tax Rates of African Mining Countries Burkina Cote South Sierra Fiscal Payment Faso Tanzania d’Ivoire DRC Senegal Africa Mauritania Liberia Zambia * Leone Mali Niger Ghana Guinea Corporate Tax Rate (%) 20% 30% 25% 30% 25% 34% 25% 30% 30% 30% 30% 30% 35% 35% Royalty Rate (%) 5% 4% 3% 2.50% 3% 1.50% 5
Slide 10: Corporate Income Tax Rates – How Africa Compares
Corporate Income Tax Rates – How Africa Compares Top Rate of Corporate Income Tax 45% Germany 15% Canada 16% 40% Chile 19% 35% Kazakhstan 20% Russian Federation 20% 30% Burkina Faso 20% 25% Ukraine 21% 20% Brazil 25% Cote D'Ivoire 25% 15% Ghana - Up to 2012 25% 10% China 25% Indonesia 25% 5% UK 26%
Slide 11: Royalty Rates – How Africa Compares
Royalty Rates – How Africa Compares Mineral Royalty Rates (Gold) Comment 16.0% Levied on revenue less i)taxes levied 14.0% on revenue, ii)insurance and iii)freight Brazil 1.0% costs 12.0% India 2.0% 10.0% Australia 2.5% 8.0% Argentina 3.0% 6.0% Ghana - Up to 2012 3.0% 4.0% Indonesia 3.8% 2.0% China
Slide 12: West Africa - SWOT
West Africa - SWOT STRENGTH WEAKNESS Integrated business environment Restricted to French speaking countries Attractive regulatory framework Integrated regulatory framework under implementation Negotiable stability agreement Unlikely to enjoy new favorable terms Open pittable gold deposits Attract p
Slide 13: Thank You
THANK YOU