Perseus Mining Limited · ASX:PRU
Perseus Mining — Investor Presentation (July 2020)
44 slides from Perseus Mining's investor presentation, July 2020
Slide 1: West African Gold Producer, Developer and Explorer
W EST A F R I C A N G O L D PRODUCER, D E V E LO P E R A N D E X P LO R E R CORPORATE PRESENTATION July 2020 ASX/TSX: PRU 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 The information in this report that relates to Ore Reserves for the Edikan deposits (other than the Fetish, AFG
Slide 3: Executive Summary
01 OV ERV I EW 02 COV I D - 1 9 U P DAT E 03 O P ER ATI NG & F I N A NCI A L P ER FOR MA NCE EXECUTIVE 04 GROWT H ST R AT EGY SUMMARY
Slide 4: A Compelling Investment Opportunity
A COMPELLING INVESTMENT OPPORTUNITY West African multi-mine gold producer, developer & explorer, active in multiple jurisdictions Consistent gold producer increasing to production ~500,000oz pa by FY 2022 Balance sheet capacity and strong cash flows to fund our growth & a future dividend stream Stro
Slide 5: Capital Structure
CAPITAL STRUCTURE Shareholder base as at 30 June 2020 1 Van Eck Associates Corp. AUD USD 2 Franklin Templeton Investments (USA) ASX Share price per share1 1.50 1.07 3 Ruffer LLP 4 Vinva Investment Management Ltd Shares outstanding 1,174 m 5 Dimensional Fund Advisors LP 6 Acadian Asset Management LLC
Slide 6: COVID-19 Update
COVID-19 UPDATE No COVID cases at either of Perseus’s mine sites and no known No material impact to date cases in surrounding communities. on operations. Yaouré Three cases of COVID have occurred development remains on at Yaouré, but outbreak has been track for first gold by the end successfully con
Slide 7: Perseus's Operating Performance & Financial Resources
PERSEUS’S OPERATING PERFORMANCE & FINANCIAL RESOURCES
Slide 8: FY2020 Operating Performance
FY2020 OPERATING PERFORMANCE • Group gold production of 257,639 ounces at AISC US$972 per ounce, including: • Edikan gold production of 171,638 ounces at AISC US$1,082 per ounce • Sissingué gold production of 86,001 ounces at AISC US$753 per ounce • Group gold sales totalled 272,778 ounces at a weig
Slide 9: June 2020 Quarter
JUNE 2020 QUARTER • Group gold production of 64,676 ounces at AISC US$935 per ounce, including: • Edikan gold production of 41,281 ounces at AISC US$1,049 per ounce • Sissingué gold production of 23,395 ounces at AISC US$734 per ounce • Gold production increased 12% and AISC decreased 14% from the M
Slide 10: Targeting Consistent Performance
TARGETING CONSISTENT PERFORMANCE Implemented revised mining strategy at Edikan Production (oz) AISC 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 Q2 2020 Edikan Sissingué AISC USD/oz (RHS) WW
Slide 11: Strong Financial Position
STRONG FINANCIAL POSITION As at 30 June 2020 USD million $350 Cash on hand US$150.3 million $300 Cash & Bullion US$163.6 million $250 $200 Bank Debt US$150.0 million $150 $100 Net Cash & Bullion US$13.6 million $50 US$40 million in notional cashflow from operations in the June Quarter $0 Jun-18 Sep-
Slide 12: Perseus's Growth Strategy
OUR CORPORATE OBJECTIVES “To progressively position our business to sustain gold production of approximately 500,000 ounces per year PERSEUS’S at a cash margin of not less than GROWTH STRATEGY US$400 per ounce, from 2022”
Slide 13: Production Guidance
PRODUCTION GUIDANCE June 2020 December 2020 2020 Half Year (Actual) Half Year Calendar Year CONSISTENT Edikan Gold Mine OPERATING Gold production ‘000 Ounces 79,300 82,500 - 77,500 162,000 - 157,000 PERFORMANCE All-In Site Cost (AISC) US$/ounce 1,141 1,150 - 1,250 1,150 - 1,250 Sissingué Gold Mine G
Slide 14: Attractive Long-Term Growth
ATTRACTIVE LONG-TERM GROWTH 1 Production (koz/pa) AISC (US$/oz) 600 $1,200 500 $1,000 GROWTH DERIVED FROM EXISTING ASSET BASE 400 $800 300 $600 ORGANIC GROWTH INITIATIVES TO EXTEND 200 $400 PRODUCTION PROFILE 100 $200 SUCCESSFUL 0 $0 EXECUTION KEY 2020* 2021 2022 2023 2024 2025 TO DELIVERY Year Endi
Slide 15: Perseus's Physical Assets
PERSEUS’S PHYSICAL ASSETS
Slide 16: Two Producing Gold Mines
TWO PRODUCING GOLD MINES Sissingué (86%)1 - Côte d’Ivoire PRODUCING ASSETS West Africa M&I Mineral Resource: 0.5Moz Ore Reserve: 0.3Moz Africa SISSINGUÉ GOLD MINE Edikan (90%)2 _ Ghana 3+ (3+ YEARS) EXORE TO ADD GROWTH M&I Mineral Resource: 2.7Moz Ore Reserve: 1.6Moz 7+ EDIKAN GOLD MINE (7+ YEARS) N
Slide 17: Third Mine in Development - Yaouré
THIRD MINE IN DEVELOPMENT - YAOURÉ DEVELOPMENT ON TRACK FOR FIRST GOLD West Africa DECEMBER 2020 Africa YAOURÉ OPEN PIT Yaouré (90%) 1, 2 - Côte d’Ivoire 8+ (8.5+ YEARS) M&I Open Pit Mineral Resource: 2.1Moz Ore Reserve: 1.6Moz YAOURÉ UNDERGROUND Inferred Underground Resource: 0.6Moz DEVELOPMENT PRO
Slide 18: Edikan Gold Mine
EDIKAN GOLD MINE PERSEUS’S FIRST OPERATING MINE • Large scale, multi open-pit mining operation • Produced more than 1.65 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 19: 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 201 kozs gold • 100% of the US$106M cap
Slide 20: Yaouré Gold Project
YAOURÉ GOLD PROJECT PERSEUS’S NEXT GOLD MINE Technically robust - 3.3Mtpa plant with average annual gold production Potential to materially extend 8.5-year mine of 215,000 ounces at an AISC of life: US$734/oz for first 5 years • Highly prospective 360 km2 land package Excellent location - Close to e
Slide 21: Yaouré Development on Time and Budget
YAO U R É D E V ELO PMENT O N TI M E A N D B U D GE T a s at 3 0 Ju n e 2 0 2 0 • Full-scale construction commenced in September quarter 2019 • US$265 million capital budget. As at 30 June 2020, US$204 million committed, US$166 million expensed and US$156 million paid TSF embankment • Construction w
Slide 22: Edikan Exploration
EDIKAN EXPLORATION EXPLORATION PROGRAM Focus on targets within trucking distance of Northern Zone Edikan with potential to increase LOM. Updated study of all geological, geophysical, geochemical and drill data Central Zone completed. Systematic exploration of targets generated by study in progress i
Slide 23: Edikan Exploration - Results
EXPLORATION RESULTS EDIKAN EXPLORATION – RESULTS Drilling at Huntado and Mampong South intersected mineralised granite dykes. Huntado / Mampong South Drilling Significant Intercepts include: Mampong Deposit M&I&I 6Mt @ 1.0 g/t • MPRC231 3m @ 63.0g/t from 48m MPRC233 for 193kozs • MPRC233 9m @ 78.0g/
Slide 24: Sissingué Exploration
SISSINGUÉ EXPLORATION EXPLORATION PROGRAM Deep holes to be drilled beneath the Sissingué Pit to test down dip extension of mineralisation (guided by Leapfrog Targeting modelling). geochemical and shear related anomalies Fimbiasso - drill testing of high magnetic western rim of the Bélé intrusion. Ka
Slide 25: Sissingué Exploration - Tiana Results
EXPLORATION RESULTS SISSINGUÉ EXPLORATION – TIANA RESULTS Tiana, 3km southwest of Cashew Farm, drilling targeted 1.7 km long artisanal Tiana Drilling workings. Wide-spaced drilling returned some spectacular results especially from TNRC0028. Significant Intercepts include: • TNRC0016 6m @ 1.76g/t fro
Slide 26: Yaouré Exploration - Near Mine Targets
YAOURÉ EXPLORATION – NEAR MINE TARGETS EXPLORATION PROGRAM “High-prospectivity corridors” interpreted from geophysics and soil geochemistry. Priority targets include: • CMA Underground extensions – Deep drilling – HiSeis 2D & 3D surveys • Extensions of CMA and basin boundary to the NE and NW • Angov
Slide 27: Yaouré Exploration - Results
EXPLORATION RESULTS YAOURÉ EXPLORATION – RESULTS Sayikro drill intercepts along strike of the CMA structure - south west extension. Sayikro Drilling Sayikro significant Intercepts include: • YRC1367 6m @ 1.26g/t from 47m • YRC1368 35m @ 0.79g/t from 55m • YRC1368 19m @ 2.04g/t from 111m • YRC1380 6m
Slide 28: Yaouré - Underground Potential at CMA
YAOURÉ – UNDERGROUND POTENTIAL AT CMA CMA DEEP DRILLING 1 km 778,500N CMA structure confirmed at depth in three step-out holes. CMA-style mineralisation YDD0539 intersected at target depth in both YDD0539 and YDD0540. YDD0539 CMA Yaouré Pit YDD0541 777,000N Pit YDD0541 intersected YDD0540 mineralisa
Slide 29: Yaouré Exploration - Regional Targets
YAOURÉ EXPLORATION – REGIONAL TARGETS EXPLORATION PROGRAM Soil geochemistry used almost exclusively in previous targeting. ‘High-prospectivity corridors’ defined from geophysics (mags, spec). High resolution VTEMTM survey recently flown – currently being interpreted. Integration of geochemical and g
Slide 30: Exore Acquisition Rationale
EXORE ACQUISITION RATIONALE 1 Exore’s highly prospective ~2,000km2 land package in northern Côte d’Ivoire is within trucking distance of Perseus’s Sissingué Gold Mine Exore’s tenements host the recently estimated Bagoé maiden Mineral 2 Resource – potential for development as a standalone operation o
Slide 31: Our Corporate Mission
OUR CORPORATE MISSION “to generate material benefits for all of our stakeholders, in fair and equitable proportions.” PE RS E U S’ S E N V I RONM ENT, S O C IA L & GOV E R NANC E PR IN C IPL ES WWW.PERSEUSMINING.COM 31
Slide 32: Perseus's Approach to Sustainability
PERSEUS’S APPROACH TO SUSTAINABILITY SUSTAINABILITY PILLARS Our Communities Our Environment • Maximise local employment • Energy and emissions To be a sustainable business • Social and community investment • Water management we have a responsibility to share the benefits we generate • Encourage loca
Slide 33: Perseus's Sustainability CY2019 Snapshot
PERSEUS’S SUSTAINABILITY CY2019 SNAPSHOT 94% National Workforce including 58% Local Participation Excellent Safety Performance Economic Contribution of US$298m US$210m Local Purchases US$1.1m Community Donations plus Incl. US$53m Taxes and Royalties paid Extensive Community Based Development and Sup
Slide 34: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Management Position Jeffrey Quartermaine Chief Executive Officer & Managing Director Chris Woodall Chief Operating Officer Elissa Brown Chief Financial Officer Martijn Bosboom General Counsel and Company Secretary Sean Harvey Jeff Quartermaine Sally-Anne Layman Paul Th
Slide 35: A Compelling Investment Opportunity
A COMPELLING INVESTMENT OPPORTUNITY West African multi-mine gold producer, developer & explorer, active in multiple jurisdictions Consistent gold producer increasing production to ~500,000oz pa by FY 2022 Balance sheet capacity and strong cash flows to fund our growth & a future dividend stream Stro
Slide 36: Contacts
CONTACTS: Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 Andrew Grove ASX/TSX: PRU GM Business Development & Investor Relations www.perseusmining.com +61 8 6144 1700
Slide 37: Appendices
APPENDICES
Slide 38: Perseus Group Mineral Resources and Ore Reserves
PERSEUS GROUP MINERAL RESOURCES AND ORE RESERVES PERSEUS GROUP MINERAL RESOURSES 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 39: Edikan Mineral Resource Estimate
EDIKAN MINERAL RESOURCE ESTIMATE EDIKAN MINERAL RESOURCES AS AT 31 DECEMBER 2019 9,10,11 Measured Indicated Measured + Indicated Inferred Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Deposit Mt g/t koz Mt g/t koz Mt g/t koz Mt g/t gold koz Type gold gold go
Slide 40: Edikan Ore Reserve Estimate
EDIKAN ORE RESERVE ESTIMATE EDIKAN ONE RESERVES AS AT 31 DECEMBER 2019 3,6,7 Proved Probable Proved + Probable Deposit 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 AF Gap 1,4 Open Pit 6.8 1.14 248 11.9 1.05 402 18.6 1.09 650
Slide 41: Sissingué Mineral Resource Estimate
SISSINGUÉ MINERAL RESOURCE ESTIMATE SISSINGUÉ MINERAL RESOURCES AS AT 30 JUNE 2019 6,7,8,9 Measured Indicated Measured + Indicated Inferred Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Deposit g/t g/t Type Mt koz Mt g/t gold koz Mt koz Mt g/t gold koz gold
Slide 42: Sissingué Ore Reserve Estimate
SISSINGUÉ ORE RESERVE ESTIMATE SISSINGUÉ ORE RESERVES AS AT 30 JUNE 2019 7.8 Proved Probable Proved + Probable Deposit 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 Sissingué 1,2,6 Open Pit 3.1 2.3 228 0.1 2.1 10 3.3 2.3 238
Slide 43: Yaouré Mineral Resource Estimate
YAOURÉ MINERAL RESOURCE ESTIMATE YAOURÉ MINERAL RESOURCES AS AT 30 JUNE 2019 7.8,9 Indicated Inferred Deposit Quantity Grade Gold Quantity Grade Gold Deposit Type Mt g/t gold koz Mt g/t gold koz CMA 1,2,3,4 Open Pit 27.3 1.78 1,570 11 11 400 Yaouré1,2,3,4 Open Pit 18.8 0.80 480 33 0.9 900 Sub-Total
Slide 44: Yaouré Ore Reserve Estimate
YAOURÉ ORE RESERVE ESTIMATE YAOURÉ ORE RESERVES AS AT 30 JUNE 2019 1,2,5 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 CMA 3,4 Open Pit - - - 20.6 2.02 1,334 20.6 2.02 1,334 Yaouré 3,