Slide 1: Edikan Gold Mine Investor Site Visit Presentation
For personal use only EDIKAN GOLD MINE INVESTOR SITE VISIT PRESENTATION NOVEMBER 2018
Slide 2: Disclaimer
Disclaimer For personal use only Disclaimer No representation or warranty, express or implied, is made by Perseus that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Perseus, its directors, officer
Slide 3: Overview
For personal use only OVERVIEW
Slide 4: Edikan Senior Management Team
Edikan Senior Management Team For personal use only • Management team a blend of expatriate and local managers • Most of the managers have additional international exposure in terms of career • Managers are focused and goal oriented • Resilient management team 4
Slide 5: Regional Map
Regional Map For personal use only Sissingué 5
Slide 6: Edikan - Overview
Edikan - Overview For personal use only • Two mining leases – Ayanfuri & Nanankaw Mining leases covering 93.13 km2 • Initially owned by Cluff and Ashanti Goldfields (now AngloGold Ashanti) • Perseus acquired in May 2006 and mining leases granted in January 2010 • Commenced mining operations in Febru
Slide 7: Mining Lease
For personal use only Mining Lease 7
Slide 8: Infrastructure Layout
Infrastructure Layout For personal use only 8
Slide 9: Occupational Health and Safety
For personal use only OCUPATIONAL HEALTH and SAFETY OHS
Slide 10: Key OHS Trends
For personal use only Key OHS Trends 10
Slide 11: OHS Activities
OHS Activities For personal use only Level 3 Awarded 2017 Emergency Best Mine Drill Based Health, Safety and Environmental Audit Zone 2 First Aid and Safety Safety Refresher Competition Training PMGL Team placed First 11
Slide 12: OHS Leading Actions – Continuous Improvements
OHS Leading Actions – Continuous Improvements For personal use only • Leading Indicators / Actions – (Preventive) – Inspections – Hazard Identification, Reporting and Correction – Audit and Systems Reviews and Controls – Planned Task Observations and Corrections – Employee Safety Training / Communic
Slide 13: Our Safety Journey!
Our Safety Journey! For personal use only 13
Slide 14: Mining Operations
For personal use only MINING OPERATIONS
Slide 15: Mining Equipment / Contractors
Mining Equipment / Contractors For personal use only • Two (2) Mining contractors on site AMS and Rocksure -moving to one Rocksure won tender • African Mining Services (AMS): Working in ESN, Fetish, & Chirawewa, and responsible for D&B, L&H, GC drilling, Crusher Feed and Dewatering Production Fleet
Slide 16: FY 2019 Q1 Production and Cost Summary
FY 2019 Q1 Production and Cost Summary For personal use only Q1_ SUMMARY KPI Units Q1_ Actual Q1_ Budget Variance Ore Tonnes Mined Mt 2.34 2.26 0.08 Ore Grade g/t 1.09 1.12 0.21 Waste Tonnes Mined Mt 5.43 6.7 (1.24) Total Tonnes Mined Mt 7.77 8.9 (1.16) Strip Ratio t:t 2.32 2.95 (15.80) COST SUMMARY
Slide 17: Challenges and Remedial Actions
Challenges and Remedial Actions For personal use only Issue Remedial Action Responsible Person Getting GC Drilling ahead of Mining a. Sequence mining operations to allow adequate time a. Mining Manager/Technical for GC and ensuring operations comply with mining Services Manager (TSM) 1. Grounds not
Slide 18: Mining Strategy going forward
Mining Strategy going forward For personal use only • Previous LOM was optimised on ounces • Current LOM optimised on Cash flow • Reduced mining volumes to reduce mining cost • Supplement mill feed with ore from stockpile • To mine and feed ore from hanging wall to footwall to reduce preferential tr
Slide 19: Mine to Mill Reconciliation
For personal use only MINE to MILL RECONCILIATION
Slide 20: Reconciliation Overview
Reconciliation Overview For personal use only • Covers period Jul-18 to Sept-18 • Compare MIK model with GC model • Compare GC Model with Truck Count • Compare GC Mill Feed with Truck Count & Δ Stockpile • Compared Mill to GC Mill Feed • Reconcile Mill back to MIK model 20
Slide 21: FY2019 Q1 Reconciliation Conclusions
FY2019 Q1 Reconciliation Conclusions For personal use only Month Unit MIK GC Truck Count Mill + Δ S/Pile Tonnes Ore t 2,096,921 2,237,522 2,446,597 2,339,585 Grade g/t 1.17 1.11 1.07 1.06 Contained Gold oz 78,575 79,736 84,554 79,510 F Factors Parameter F1 F2 F3 F4 F1*F2*F3*F4 Tonnes Ore 1.07 1.09 0
Slide 22: F1 Grade Control Model to MIK model
F1 Grade Control Model to MIK model For personal use only 2019 QTR1 • Tonnes mined – +3% +12% by month – +7% for 2019 QTR1 • Grade – -8% + 1% by month – -5% for 2019 QTR1 • Contained gold – -6% +7% by month – +1% for 2019 QTR1 • 2019 QTR1: consistently more tonnes at lower grade for same metal 22
Slide 23: F2 Truck Count to Grade Control Model
F2 Truck Count to Grade Control Model For personal use only 2019 QTR1 • Tonnes mined – +8% +11% by month – +9% for 2019 QTR1 • Grade – -4% -3% by month – -3% for 2019 QTR1 • Contained gold – +5% +8% by month – +6% for 2019 QTR1 • 2019 QTR1: consistently more tonnes at lower grade for more metal 23
Slide 24: F3 GC to Mill to Truck Count & ΔS/Pile
F3 GC to Mill to Truck Count & ΔS/Pile For personal use only • Tonnes fed 2019 QTR1 – -6% -1% by month – -4% for 2019 QTR1 • Grade – +1% + 3% by month – +2% for 2019 QTR1 • Contained gold – -4% +1% by month – -2% for 2019 QTR1 • 2019 QTR1: Consistently less tonnes at higher grade for less metal 24
Slide 25: F4 Mill to GC to Mill
F4 Mill to GC to Mill For personal use only • Tonnes milled 2019 QTR1 – -6% +2% by month – -2% for 2019 QTR1 • Grade – -6% - 2% by month – -3% for 2019 QTR1 • Contained gold – -7% -4% by month – -5% for 2019 QTR1 • 2019 QTR1: Consistently less tonnes at lower grade for less metal 25
Slide 26: MIK Model to Mill (F1 x F2 x F3 x F4)
MIK Model to Mill (F1 x F2 x F3 x F4) For personal use only 2019 QTR1 • Tonnes Ore – +8% +16% by month – +10% for 2019 QTR1 • Grade – -14% - 4% by month – -9% for 2019 QTR1 • Contained gold – -7% +6% by month – 0% for 2019 QTR1 • 2019 QTR1: Consistently more tonnes at lower grade for same metal 26
Slide 27: Continuous Improvement and Future Strategies
Continuous Improvement and Future Strategies For personal use only • Mining Factors: continue with the visual control, monitoring of all ore polygons staked out in the pit and control on digging ore blocks • Blast Monitoring: This will continue in all pits. Mining flitch heights will be adjusted to
Slide 28: Processing and Maintenance
For personal use only PROCESSING and MAINTENANCE
Slide 29: Edikan Process Plant
Edikan Process Plant For personal use only 29
Slide 30: Edikan Flowsheet
For personal use only Edikan Flowsheet 30
Slide 31: Edikan Flowsheet
Edikan Flowsheet For personal use only • Simple and robust flow sheet • Single stage primary crushing to crushed ore stockpile. • Dual drive 14MW SAG Mill with pebble crusher circuit • Gravity circuit – centrifugal concentrators and intensive leach of concentrate (up to ~25% of recovered gold) • Sul
Slide 32: FY 2019 Q1 Production Summary
FY 2019 Q1 Production Summary For personal use only March 2018 Calendar Year to Parameter Unit June 2018 Quarter Sept 2018 Quarter Quarter 30 Sept 2018 Gold Production & Sales Total material mined: tonnes 9,911,975 9,569,667 7,771,173 27,252,815 Total ore mined tonnes 2,810,297 2,720,364 2,339,586 7
Slide 33: Plant Availabilities FY2019 Q1
Plant Availabilities FY2019 Q1 For personal use only 100 90 100 92 91 95 93 90 84 84 86 SAG Mill 90 CRUSHER 80 80 70 70 60 60 50 50 8 86% 93% 40 40 30 30 20 20 Actual Actual 10 10 Budget Budget 0 0 FYTD July Aug Sept 100 94 93 93 93 95 94 95 95 OXIDE Feeder 90 REGRIND Mill 100 90 80 80 70 70 60 60 5
Slide 34: FY 2019 Q1 Cost Summary
FY 2019 Q1 Cost Summary For personal use only • Unit costs in $/t was 3.8% below budget • Unit costs in $/oz was 5.2% below budget • Miscellanence was over budget mainly due to crane hire as a result of delayed crane transport from the Sissingue’ mine site 34
Slide 35: Tailing Storage Facility Update
Tailing Storage Facility Update For personal use only ONGOING ACTIVITIES FUTURE ACTIVITIES • Deposition at the Southern TSF; to - Southern TSF raise to 206mRL continue until January 2019 - Continue 208mRL raise of NTSF • Raise of NTSF embankments to - Strategic Plan 203mRL; Provide sufficient TSF ca
Slide 36: Performance Improvements
Performance Improvements For personal use only • Business Improvement initiatives in place • Plant upgrade project of USD 10 million was successfully completed in October 2016 and positive outcomes realised • Cost saving measures continuing in plant 36
Slide 37: Risks Review
Risks Review For personal use only RISK REMEDIAL ACTION LPF Availability Min 80Kt on COS Metal/Wood planks Metal detector/Belt attendants CIL Low Rec Use 25mm steelballs to crack gold locked in fines Flotation Tailings line blockage Cyclone roping detector Screen 6 Panel failure Use Eurogomma/Metso
Slide 38: Commissioned Onsite Laboratory
Commissioned Onsite Laboratory in Nov19 For personal use only FUTURE FOCUS • Analysis of Plant and Grade Control Solid Samples • Perform analysis on Carbon, Bullion and Other Analysis • Security Installations • FIRE PERMIT: Granted Verbal Approval • Final Mincom Inspection And Permit: Granted Verbal
Slide 39: Continuous Improvement
Continuous Improvement For personal use only 1. Gold Room Crucible • Changed from DA200 crucible to A200 spouted crucible • Savings of ~$10/smelt ($51/smelt for DA200 against $41/smelt A200). • Increase furnace brick liner life • Reduction in spillages 2. Metal Detector for CV10 • Installed to pick
Slide 40: Continuous Improvement Continued
Continuous Improvement Continued For personal use only 5. Crusher Liners • Exploiting local manufacturing of Crusher concaves in the quest to reduce costs. • New Crusher concave liner design to reduce gap to 105mm (On site to be installed in November). 6. CIL Rec./Regrind Mill Steel balls (25mm) • A
Slide 41: Continuous Improvement Continued
Continuous Improvement Continued For personal use only 7. COS Cost Management (Crush to Mill Philosophy -2017FY/ ~80kt 2018FY) • Saved 38% in 2017FY and 57% in 2018FYTD (LPF availability can impact negatively on COS cost management) 8. Gravity Recovery study • A small table scale concentrator will b
Slide 42: Capital and Continuous Improvement Activities
Capital and Continuous Improvement Activities For personal use only • FTSF PUMPS AND PIPE UPGRADE – Engineering and procurement in progress. Installation and commissioning scheduled for Q3 and Q4 of FY2018/19. • FLOTATION AND CIL AUTO SAMPLERS – Samplers shipped, installation scheduled for 21 Novemb
Slide 43: Major Activities Planned for Q2 - Q4
Major Activities Planned for Q2 - Q4 For personal use only • LOW PROFILE FEEDER – Replace conveyor complete with belt, chains and slats in November 2018 • PROCESS WATER POND – De-sludge the process water pond starting in January to April 2019 • EVENT POND – Construction begins in November 2018 43
Slide 44: Commercial
For personal use only COMMERCIAL
Slide 45: Quarterly Production Trend
Quarterly Production Trend For personal use only • Stable Production - Q1 production 6% lower than Q4 at 54,595oz versus Q4 57,861oz, but 6% higher than Q1 last year. • Marginally lower throughput and grade compared to last quarter. 45
Slide 46: Quarterly Cost US$/oz Trend
Quarterly Cost US$/oz Trend For personal use only • Q1 AISC 4% lower at $1,045/oz versus Q4 $1,090/oz and 6% lower than Q1 last year. • Steady performance through cost improvement initiatives 46
Slide 47: Quarterly Mining Costs
Quarterly Mining Costs For personal use only • Unit mining costs increased 10% from $3.56/t (Q4) to $3.91/t reflecting impact of mining at lower elevations and impact of fixed cost on lower material movement (9.6MT to 7.8MT) 47
Slide 48: Quarterly Processing Unit Costs Trend
Quarterly Processing Unit Costs Trend For personal use only • Q1 unit processing costs increased slightly to $8.98/t from $8.94/t in Q4, and 15% lower than Q1 last year • Lower power costs (versus last year) and reduced contractor costs contributed to lower unit cost 48
Slide 49: Quarterly G&A Costs
Quarterly G&A Costs For personal use only • G&A costs were slightly lower quarter-on-quarter at $4.8M • Average monthly Q1 G&A costs were at $1.62M compared to Q4 $1.73M 49
Slide 50: Power and Fuel
Power and Fuel For personal use only VRA power cost trending down 50
Slide 51: Capital Spend (US$M)
Capital Spend (US$M) For personal use only 51
Slide 52: Human Resources and Industrial Relations
For personal use only HUMAN RESOURCES and INDUSTRIAL RELATIONS
Slide 53: HR Overview
HR Overview For personal use only • 2022 personnel working onsite for the quarter ending September • 452 PMGL personnel (including 5 expatriates) • 1,570 Mining and other contractors • 40.5% of personnel are from the local communities in conformance to legal localization requirements • PMGL employee
Slide 54: Environmental
For personal use only ENVIRONMENTAL
Slide 55: Environmental Overview
Environmental Overview For personal use only • EIS/EMP/L.I 2182 – stipulates closure Rehabilitated Waste dump criteria including progressive rehabilitation • EPA required a reclamation bond for site closure/rehabilitation of est. $8m (recoverable) • Monthly site monitoring including water (surface a
Slide 56: Security
For personal use only SECURITY
Slide 57: Security Overview
Security Overview For personal use only • Security Management consists of experienced ex-military and ex-police officers with extensive industrial security knowledge • Current onsite security is provided by a contracted Private Security Company with experienced personnel managed by the PMGL Security
Slide 58: Social Development
For personal use only SOCIAL DEVELOPMENT
Slide 59: Social Development
Social Development For personal use only • Five main catchment communities surrounding Edikan – Ayanfuri, Gyaman, Fobinso, Abenabena and Nkonya • Regular communication with communities and other stakeholders, both formal and informal • Formal consultation groups including Crop Negotiation Committee
Slide 60: Consolidating Social Development
Consolidating Social Development For personal use only 60
Slide 61: FY 2019 Q1 Highlights
FY 2019 Q1 Highlights For personal use only • Commissioned and handed over Abenabena Health Centre to the Municipal Health Directorate. • Handed over Nkonya ICT Centre jointly funded by PMGL through Edikan Trust Fund and America Peace Corps. • Surveyed building condition status of all structures at
Slide 62: FY 2019 Q1 Highlights – Cont'd
FY 2019 Q1 Highlights – Cont’d For personal use only • Third quarter Edikan Board meeting organised. A total of 4 project proposals were approved, including requests from Exploration communities. • Inaugurated new Community Consultative Committee. • Twenty (20) engagement meetings and consultations
Slide 63: FY 2019 Q1 Challenges
FY 2019 Q1 Challenges For personal use only Challenges Remedy / Action Illegal mining activities on PMGL’s External stakeholders (Paramount chief, District concessions pose a lot of threat. Chief Executive, opinion leaders) etc. are being consulted for resolution. Community Impediment to Exploration
Slide 64: Outlook for FY 2019 Q2
Outlook for FY 2019 Q2 For personal use only • Publication (video documentary and quarterly newsletter) of PMGL’s Corporate Social Responsibility programmes to strategically brand the Company. • Organise friendly football match with the catchment communities to strengthen relationship. • Intensify c
Slide 65: Land Relocation Action Plan (LARP)
For personal use only LAND RELOCATION ACTION PLAN LARP
Slide 66: Resettlement - Ayanfuri
Resettlement - Ayanfuri For personal use only 66
Slide 67: Resettlement - Ayanfuri
Resettlement - Ayanfuri For personal use only 67
Slide 68: Resettlement - Ayanfuri
Resettlement - Ayanfuri For personal use only Completed Phase 1 Street Scene 68
Slide 69: Esuajah South Resettlement
Esuajah South Resettlement For personal use only • Construction of first 9 building commenced on 3rd September 2018 with scheduled completion date of 31st March 2019. • Four (4) local contractors with 74 workmen are working on the first 9 buildings. • Materials have been purchased for project execut
Slide 70: Edikan Gold Mine Life of Mine Plan
For personal use only EDIKAN GOLD MINE LIFE OF MINE PLAN Source: “Perseus Mining Updates Edikan’s Life of Mine Plan” dated 29 August 2018
Slide 71: Overview
Overview For personal use only Solid Edikan Life of Mine which is: Economically very attractive – US$950/oz all-in site cost and US$264M after tax cashflow Technically robust – Operating and processing experience in all pits (except Bokitsi), resource/mill reconciliation performance well underst
Slide 72: Summary of Changes Since Previous LOM
Summary of Changes Since Previous LOM For personal use only • Increase in mining contract cost – rise & fall • Additional ore mining costs – grade control & rehandle • Labour cost increase in all areas • Lower throughput rates – fixed costs higher per tonne • Mill run time increased – fixed costs lo
Slide 73: Main LOM Assumptions
Main LOM Assumptions For personal use only • Scheduled from 1 July 2018 • Gold price US$1,200/ounce • Diesel price US$1.01/L • Power 99% grid ($0.147/kWh), 1% self generated ($0.273/kWh) • AMS mining cost for Eastern and Northern Pits • Rocksure mining costs for Fobinso and AG Final pits • Mill Run
Slide 74: Snapshot of Outcomes
Snapshot of Outcomes For personal use only Parameter Units Value • 6 Year Mine Life Waste + Ore Mined Mt 116.2 • LOM Ounce Production 180 Ore processed Mt 39.2 Head Grade g/t 0.98 koz/yr with 200 koz/yr in first Weighted Average Recovery % 87.5% 3ars Sustaining Capital US$M 31.9 • All in site cost U
Slide 75: Edikan Resource Estimates
Edikan Resource Estimates For personal use only • All Open Pit Resource Estimates Regularly Updated – Generally MIK Estimation Method • Heap Leach and ROM Stockpiles Included • Good reconciliation between reserve model and grade control over the last 2 years 75
Slide 76: Edikan Resource Estimate (Jun 2018)
Edikan Resource Estimate (Jun 2018) 7, 8, 9 For personal use only Measured Resources Indicated Resources Measured + Indicated Deposit Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Type Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz AF Gap1, 2, 3 Open Pit 7.8 1.00 253 11.1 0.95 338 1
Slide 77: Edikan Reserve Estimate (Jun 2018)
Edikan Reserve Estimate (Jun 2018) 3, 6, 7 For personal use only Proved Probable Proved + Probable Deposit Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Type Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz AF Gap¹,⁴ Open Pit 4.3 1.09 150 4.7 1.11 169 9.0 1.10 319 Fobinso¹ ⁴, Open Pit
Slide 78: Edikan LOM Ore Sources
Edikan LOM Ore Sources For personal use only 78
Slide 79: Total Material Movement by Ore Source
Total Material Movement by Ore Source For personal use only 1,400 Thousands BCM 1,200 1,000 800 600 400 200 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FOB_FINAL AFG_FINAL ESN_FINAL FET_STG2 FET_FI
Slide 80: Tonnes and Grade Processed
Tonnes and Grade Processed For personal use only 8,000 1.20 1.06 1.08 Thousands tonnes 1.00 1.00 7,000 0.92 1.00 6,000 0.79 0.80 5,000 0.60 4,000 6,974,166 6,857,530 6,950,230 6,657,704 6,302,455 5,490,606 0.40 3,000 2,000 0.20 1,000 - FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Tonnes Grade 80
Slide 81: Ounce Production by Ore Source
Ounce Production by Ore Source For personal use only 220 Thousands oz 200 180 160 140 120 100 80 60 40 20 - FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FOB_FINAL AFG_FINAL ESN_FINAL FET_STG2 FET_FINAL BKS_STG1 Existing Stockpile Heap Leach 81
Slide 82: Edikan Exploration Update
For personal use only EDIKAN EXPLORATION UPDATE
Slide 83: Perseus Property Locations – SW Ghana
Perseus Property Locations – SW Ghana For personal use only • Geological setting - south eastern part of the West African Craton. • Total Gold Endowment: o Ashanti Belt (≥ 125Moz Au) o Sefwi – Bibiani Belt (≥ 30Moz Au) o Kumasi Basin – (13Moz Au) 83
Slide 84: District Geology & Gold Mineralisation
District Geology & Gold Mineralisation For personal use only District Geology • Underlain principally by steeply dipping, Esuajah N & S NE-trending metasedimentary rocks and AB & Fobinso Fetish lesser metavolcanic rocks of the Chirawewa Paleoproterozoic Birimian Supergroup • D2 NE-SW thrust fault –
Slide 85: Exploration Strategy
Exploration Strategy For personal use only • Previous conventional use of soil geochemistry in defining drill targets has outlived its usefulness in this mature exploration environment, and is not effective in delineating blind deposits. • Recognition of need to use multi-geoscience data in an integ
Slide 86: 2017-18 Target Testing
2017-18 Target Testing For personal use only Esuajah NE Target Esuajah Gap South Esuajah South Poku South Nkonya West Saa NE Target Huntado Target 86
Slide 87: Esuajah Gap – CGSG Target
Esuajah Gap – CGSG Target 1 For personal use only • Conceptual buried én-echelon granite plug(s) between Esuajah Nth and Sth granites – undrilled due to Ayanfuri town site • Soil sampling also not conducted within residential area. • Alluvial workings in drainage from target zone • Two RC holes of 1
Slide 88: Esuajah Gap Diamond Drilling
Esuajah Gap Diamond Drilling For personal use only EGRDD001 Esuajah Nth Granite EGRDD002 EGDD001 EG holes – previous quarters EGDD004 EG holes – completed September quarter EG holes – completed post-quarter-end Esuajah EGDD006 Sth EGDD003 Granite EGDD005 Esuajah Gap Granite VTEM Ch8 Resistivity back
Slide 89: Esuajah Gap Cross Section – Looking NE
Esuajah Gap Cross Section – Looking NE For personal use only • Granite appears not to daylight – blind deposit with mineralisation preserved in granite apex and heavily altered and quartz veined ‘bleed out’ zone within sediments above. • Strongly altered – pervasive 1-4% disseminated pyrite + quartz
Slide 90: Esuajah Gap – EGDD001 Intersection
Esuajah Gap – EGDD001 Intersection For personal use only Apy Apy Py 90
Slide 91: Edikan Exploration – Summary
Edikan Exploration – Summary For personal use only • Edikan is a mature exploration environment. • Until 2016 exploration largely driven by soil geochemistry with considerable success but diminishing returns over time. • Current program driven by CGSG targeting exercise, with focus on a new generati