Slide 1: ITY CIL Project
ITY CIL Project › September 20, 2017
Slide 2: Speakers and Table of Content
SPEAKERS TABLE OF CONTENT SÉBASTIEN DE MONTESSUS Chief Executive Officer, President & Director 1 ITY CIL PROJECT OVERVIEW JEREMY LANGFORD Chief Operating Officer 2 ITY CIL PROJECT DETAILS VINCENT BENOIT 3 APPENDIX EVP – CFO and Corporate Development PATRICK BOUISSET EVP – Exploration and Growth Note
Slide 3: Ity CIL Project to Become Our Next Flagship Asset
ITY CIL OPTIMIZATION STUDY ITY CIL PROJECT TO BECOME OUR NEXT FLAGSHIP ASSET Construction launched based on robust optimization study results STRONG LOW ROBUST EXPLORATION PRODUCTION AISC ECONOMICS UPSIDE PROFILE Long 14-year mine life $494/oz on average over At $1,250/oz: On track to meet o
Slide 4: Summary of Optimisation Study
ITY CIL OPTIMIZATION STUDY SUMMARY OF OPTIMISATION STUDY Significant improvement over 2016 Feasibility Study 2017 2016 VARIANCE OPTIMIZATION FEASIBILITY KEY KEYCHANGES CHANGESINCLUDE: INCLUDE: STUDY STUDY (OS VS. FS) LIFE OF MINE PRODUCTION ›› Indicated resource inventory Strip ratio, w:o 1.9 2.1 (1
Slide 5: Significant Increase in Reserves
ITY CIL OPTIMIZATION STUDY SIGNIFICANT INCREASE IN RESERVES Mill size increase to capture value created from exploration success Mill size and reserves growth 4.0Mtpa Mill Size Reserve 3.0Mtpa +1.0Moz OS vs FS reserves 2.0Mtpa 1.5Mtpa 2.9Moz 1.4Moz 1.9Moz +53% OS vs FS reserves 0.8Moz 2014 2015 2016
Slide 6: Long-Life Low-Cost Project
ITY CIL OPTIMIZATION STUDY LONG-LIFE LOW-COST PROJECT Significantly improved production profile Production Profile OS production FS production AISC for OS 250koz 250koz 238koz 224koz Exploration potential 235koz 213koz average production 201koz 190koz over first 5 years 162koz 159koz 151koz $484/oz
Slide 7: Significant Exploration Upside
ITY CIL OPTIMIZATION STUDY SIGNIFICANT EXPLORATION UPSIDE On-track to achieve exploration discovery target of 4-6Moz M&I Resource Evolution 4-6Moz Discovery Target 1.5Moz added 2.3Moz 3.8Moz 2016 5-Year Discovery Target 2017 M&I Resource (published Nov. 2016) M&I Resource (Base for FS) (Base for OS)
Slide 8: Robust Project Economics
ITY CIL OPTIMIZATION STUDY ROBUST PROJECT ECONOMICS IRR of +20% even at $1,000/oz Cumulative after-tax free cash flow, US$m NPV5% / IRR $1,400m 14-YEAR MINE LIFE 22-MONTH PAYBACK PERIOD $1,400/oz $920m / 50% $1,200m $1,250/oz $1,000m $710m / 40% $800m $600m $1,000/oz $343m / 23% $400m $200m $0m -$20
Slide 9: Transitioning Our In-House Team from Houndé to Ity
ITY CIL OPTIMIZATION STUDY TRANSITIONING OUR IN-HOUSE TEAM FROM HOUNDE TO ITY First gold pour expected by mid 2019 Houndé Houndé Construction undé, Burkina Faso ITY CIL Ity CIL Construction (CIL), Côte d'Ivoire KALANA DFS Optimization Construction EXPLORATION GREENFIELD Kalana, Mali Resource Definit
Slide 10: RCF Upsized and Extended
ITY CIL OPTIMIZATION STUDY RCF UPSIZED AND EXTENDED Provides significant headroom to fund growth projects INCREASED › Increased from $350m to $500m A stronger and enlarged PRINCIPAL bank pool AMOUNT › Decreased from LIBOR plus 3.75% to 5.75% to LIBOR plus 2.95% to 3.95% on DECREASED drawn portion IN
Slide 11: Project Is Fully Funded
ITY CIL OPTIMIZATION STUDY PROJECT IS FULLY FUNDED Significant headroom provided by cash flow from operations $495m Ity Capex $150m $215m Undrawn $130m RCF Hounde remaining capex $85m Cash (as at June 30, 2017) Liquidity Sources RCF Nzema La Mancha Ity Equipment FCF before Sources of Growth (as at J
Slide 12: Improving the Quality of Our Portfolio
ITY CIL OPTIMIZATION STUDY 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 $1,050 $1,000 Youga Tabakoto Tabakoto Assessment $950 expected by mid-2018 Nzema $900 $850 $850 Agbaou $800
Slide 13: On Track to Lower Group's AISC to Below $800/oz
ITY CIL OPTIMIZATION STUDY ON TRACK TO LOWER GROUP’S AISC TO BELOW $800/OZ Developing projects to improve the portfolio quality STRATEGIC MILESTONES $1,317/oz For 2019 +900koz +900koz 800-900koz +800koz $1,010/oz $922/oz 800-900koz Annual production $895/oz 584koz <$800/oz 517koz 462koz ≤ 800$/oz 31
Slide 14: Ity CIL Project Details
1 ITY CIL PROJECT OVERVIEW 2 ITY CIL PROJECT DETAILS 3 APPENDIX
Slide 15: Summary of Independent Optimisation Study for CIL Project
ITY CIL OPTIMIZATION STUDY SUMMARY OF INDEPENDENT OPTIMISATION STUDY FOR CIL PROJECT KEY CHANGES MADE TO OPTIMIZED STUDY Lead Consultant: › CIL process plant increased from 3Mtpa to 4Mtpa. › Construction of a 26MW full back up power station Contributions of: › Addition of a diverter/flop-gate system
Slide 16: 1.5Moz of Indicated Resources Added Since the FS
ITY CIL OPTIMIZATION STUDY 1.5MOZ OF INDICATED RESOURCES ADDED SINCE THE FS Optimization study was preformed to capture the increased resource inventory 2017 OPTIMIZATION STUDY INVENTORY 2016 FEASIBILITY STUDY INVENTORY Indicated Resources Inferred Resources Indicated Resources Inferred Resources De
Slide 17: CIL Reserves Increased by 1.0Moz to 2.9Moz
ITY CIL OPTIMIZATION STUDY CIL RESERVES INCREASED BY 1.0Moz TO 2.9Moz Addition of Bakatouo and increases at Mont Ity, Teckraie, and Daapleu Optimization Study Reserves, Feasibility Study Reserves, Deposits as at September 1, 2017 as at October 1, 2016 Variance on a 100% basis Tonnage Grade Content T
Slide 18: Site Layout
ITY CIL OPTIMIZATION STUDY SITE LAYOUT 18
Slide 19: Mining
ITY CIL OPTIMIZATION STUDY MINING Low strip ratio operation Mining Schedule (Years 1-10) › Low Life of Mine strip ratio of 1.9 Total ore mined, Mt Strip ratio, w:o › Optimized mine plan scheduling and stockpile build-up compared to FS 5.9Mt 5.9Mt 5.8Mt › Owner operated mining selected 5.4Mt using 90
Slide 20: Processing
ITY CIL OPTIMIZATION STUDY PROCESSING 4.0 Mtpa Conventional Gravity Circuit/Carbon-In-leach Plant › Process plant capacity increased from 3 Mtpa (FS) to 4 Mtpa › Integrated synergies between Ity and Hounde plants with similar process layout, identical SAG and Ball Mill designs, Engagement of the sam
Slide 21: Metallurgy
ITY CIL OPTIMIZATION STUDY METALLURGY Life of mine recovery rate increased from 83% to 86% INSIGHTS Gold Recovery Rate by Deposit › The overall life of mine LOM Tonnage, % of LOM Gold Grade, Recovery recovery rate improved due Mt Tonnage g/t Au Rate, % to: Bakatouo Oxides/Fresh 6.1 11% 2.28 95/97% ‒
Slide 22: Capital Cost Estimate
ITY CIL OPTIMIZATION STUDY CAPITAL COST ESTIMATE Optimized CAPEX and sequenced build time with a higher percentage of “Self-Perform” works INSIGHTS Capital Cost Estimate Summary in US$m › The initial capital cost has been estimated at $412 2017 2016 million, inclusive of $34 million for contingencie
Slide 23: Appendix
1 ITY CIL PROJECT OVERVIEW 2 ITY CIL PROJECT DETAILS 3 APPENDIX
Slide 24: Life of Mine Plan
ITY CIL OPTIMIZATION STUDY LIFE OF MINE PLAN LOM Total / Item Unit Average Pre-prod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mining Schedule Total Material Moved kt 166,752 15,555 16,000 16,000 16,000 16,000 16,000 13,770 12,661 15,908 13,623 10,143 5,092 0 0 0 Total Waste Moved kt 109,559 10,973 10,225
Slide 25: Process Plant Layout
ITY CIL OPTIMIZATION STUDY PROCESS PLANT LAYOUT Layout will utilize the Hounde design, however will be optimized for the increased throughput 25