Slide 1: Q3 Operational & Financial Results
Q1 Operational Q2 & Financial Results Q3 › November 9, 2017 Q4
Slide 2: Disclaimer & Forward Looking Statements
Q3-2017 RESULTS DISCLAIMER & FORWARD LOOKING STATEMENTS Cash cost per ounce and all-in sustaining cash cost per ounce are non-GAAP performance measures with no standard meaning under IFRS. This presentation contains “forward-looking statements” including but not limited to, statements with respect t
Slide 3: Speakers and Table of Contents
SPEAKERS TABLE OF CONTENTS SÉBASTIEN DE MONTESSUS Chief Executive Officer, President & Director 1 YEAR TO DATE IN REVIEW OPERATIONAL AND JEREMY LANGFORD Chief Operating Officer 2 FINANCIAL SUMMARY DETAILS BY MINE AND VINCENT BENOIT 3 PROJECT EVP – CFO and Corporate Development 4 CONCLUSION PATRICK B
Slide 4: Q3 Activities Recap
Q3-2017 RESULTS Q3 ACTVITIES RECAP Strong Continued Achievements Across Our 4 Pillars 1 OPERATIONAL EXCELLENCE 2 PROJECT DEVELOPMENT 3 UNLOCKING EXPLORATION VALUE 4 PORTFOLIO & BALANCE SHEET MANAGEMENT Strong safety record Houndé construction Added 1.0Moz of Indicated Upsized RCF from Grou
Slide 5: Safety Is Our First Priority
OPERATIONAL EXCELLENCE 1 SAFETY IS OUR FIRST PRIORITY Houndé built with no LTI Lost Time Injury Frequency Rate 0.79 19.7m Man Hours for operations YTD with only 3 LTI 0.40 0.15 0.00 0.00 +7.0m Man Hours on Peer Group FY2016 Last Houndé Agbaou Average 12-months (since start) Houndé with no LTI Operat
Slide 6: 9-Month Performance in Line with Guidance
OPERATIONAL EXCELLENCE 1 9-MONTH PERFORMANCE IN LINE WITH GUIDANCE Due to seasonality, Q3 was our weakest quarter but full year is on track GROUP Q1 Q2 Q3 In line with PRODUCTION YTD YTD YTD initial (excluding Hounde) 152koz 311koz 459koz guidance +600koz Guidance GROUP In line with Q2 Q3 Q1 AISC YT
Slide 7: Guidance Increased with Houndé
OPERATIONAL EXCELLENCE 1 GUIDANCE INCREASED WITH HOUNDE Houndé is Already Cash Flow Positive Production Guidance INSIGHTS UPDATED 2017 FULL-YEAR GUIDANCE (All amounts in koz, on a 100% basis) › Initial guidance unchanged as Current Production From Continuing Operations (Unchanged ) 500 - 530 Hounde
Slide 8: Project Development
PROJECT DEVELOPMENT PUSHING OUR PROJECT PIPELINE FORWARD IS A KEY PRIORITY 2 Construction HOUNDÉ Team Transitioned To Ity CIL Project Houndé Built ahead of schedule undé, Burkina Faso Construction and below budget Construction began ITY CIL Ity CIL Construction in September (CIL), Côte d'Ivoire KALA
Slide 9: Houndé Project Successfully Delivered
PROJECT DEVELOPMENT 2 HOUNDÉ PROJECT SUCCESSFULLY DELIVERED Commercial production achieved 2 months ahead of schedule and below budget 9
Slide 10: Ity CIL Project to Become Our Next Flagship
PROJECT DEVELOPMENT ITY CIL PROJECT TO BECOME OUR NEXT FLAGSHIP 2 Construction launched in September Optimization Study Key Takeaways: 2.9Moz RESERVE Production Profile Production AISC 235koz $494/oz 250koz 250koz 238koz 213koz 224koz Exploration potential PROD YEAR 1-5 AISC YEAR 1-5 201koz 190koz 1
Slide 11: Kalana Optimization Launched
PROJECT DEVELOPMENT 2 KALANA OPTIMIZATION LAUNCHED Getting ready for the next build after Ity CIL ALREADY ROBUST PROJECT METRICS OPTIMIZATION LAUNCHED Avnel transaction closed in September 2RESERVE Moz 2.8g/t RESERVE › Integration progress completed shortly after › Optimization study launched and ex
Slide 12: Delivering Against Our 5-Year Exploration Strategy
UNLOCK EXPLORATION VALUE 3 DELIVERING AGAINST OUR 5-YEAR EXPLORATION STRATEGY Results are already starting to be seen INSIGHTS: › Exploration success increases FY-2017 4.0-6.0Moz 4.0-6.0Moz budget from $40m to $45m, with $37m already spent YTD › Near-mine exploration success notably includes: 10-15M
Slide 13: Portfolio Management Continued with Nzema Sale
PORTFOLIO MANAGEMENT 4 PORTFOLIO MANAGEMENT CONTINUED WITH NZEMA SALE Focused on bringing asset in the bottom right quadrant (long-life and low AISC) AISC, $/oz $1,200 $1,150 $1,100 Tabakoto Youga $1,050 Assessment expected by SOLD mid-2018 $1,000 Nzema $950 SOLD $900 Ity HL $850 $800 Kalana Karma P
Slide 14: Year to Date in Review
1 YEAR TO DATE IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 15: On Track to Meet Guidance
Q3-2017 RESULTS ON TRACK TO MEET GUIDANCE In line with 2016 seasonality, Q3 was slightly weaker and Q4 is expected to be stronger Group Production and AISC (including Nzema asset held-for-sale asset) 175koz 159koz 152koz 146koz 148koz $898/oz $905/oz $897/oz $906/oz $855/oz Q3-16 Q4-16 Q1-17 Q2-17 Q
Slide 16: YTD Production Increased and AISC Flat Over 2016
Q3-2017 RESULTS YTD PRODUCTION INCREASED AND AISC FLAT OVER 2016 Production increase with addition of Karma and improvement at Nzema PRODUCTION AND AISC VARIATION YTD Sept -16 vs YTD Sept -17 Bridge +43koz Δ AISC 459koz $903/oz AISC 44koz YTD variance over 1koz 16koz last year 416koz +2% 27koz $900/
Slide 17: Net Free Cash Flow from Operations Doubled
Q3-2017 RESULTS NET FREE CASH FLOW FROM OPERATIONS DOUBLED Net free cash flow increased despite increased exploration spend NINE MONTHS ENDED (in US$ million) SEPT 30, 2017 SEPT 30, 2016 INSIGHTS GOLD SOLD FROM CONTINUING OPERATIONS, koz 1 370 312 1. Gold sales up mainly due to the Gold Price, $/oz
Slide 18: Growth Funding Sources
Q3-2017 RESULTS GROWTH FUNDING SOURCES Cash from operations and RCF used to fund growth Net Cash Flow NINE MONTHS ENDED INSIGHTS (in US$ million) SEPT 30, 2017 SEPT 30, 2016 1. For Houndé construction ($186m), NET FREE CASH FLOW FROM OPERATIONS 59 12 Growth projects (221) (80) Karma optimization ($2
Slide 19: Significant Funding Sources to Fund Growth
Q3-2017 RESULTS SIGNIFICANT FUNDING SOURCES TO FUND GROWTH Significant headroom provided by cash flow from operations Fully funded without mine cash flow ~$440m Circa $60m $327m Up to $65m Ity Capex $200m Undrawn RCF Hounde remaining capex $127m (as at Sept 30, 2017) Cash1 Liquidity Sources Nzema It
Slide 20: Net Earnings Breakdown
Q3-2017 RESULTS NET EARNINGS BREAKDOWN Adjusted EPS NINE MONTHS ENDED All-In Sustaining Margin to Adjusted Net Earnings SEPT. 30, SEPT. 30, For Continuing Operations (in US$ million) A = Adjustments made 2017 2016 For the 9-months period ended September 30, 2017 Gold Revenue 445 394 Operating expens
Slide 21: Details by Mine
1 YEAR TO DATE IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 22: Agbaou Mine, Côte d'Ivoire
Q3-2017 RESULTS AGBAOU MINE, CÔTE D’IVOIRE On track to beat AISC guidance Q3-17 vs Q2-17 INSIGHTS: Production and AISC › Production remained fairly flat as Production, koz AISC, US$/oz greater tonnes processed offset the 57koz lower head grade 49koz 45koz 46koz › All-in sustaining costs increased by
Slide 23: Agbaou Mine, Côte d'Ivoire
Q3-2017 RESULTS AGBAOU MINE, COTE D’IVOIRE Exploration program continues to progress Agbaou Site Map INSIGHTS › Exploration activity during the first 9 months amounted to approximately 31,000 meters drilled out of the 45,000 meters planned for the year. In addition, several ground geophysics were ac
Slide 24: Tabakoto Mine, Mali
Q3-2017 RESULTS TABAKOTO MINE, MALI Cost saving and optimization programs are underway Q3-17 vs Q2-17 INSIGHTS: › Production decreased due to lower open pit Production and AISC tonnage and grade, in addition to the impact of AISC, US$/oz strong rainfall and a national strike 48koz › AISC increased b
Slide 25: Tabakoto Mine, Mali
Q3-2017 RESULTS TABAKOTO MINE, MALI Exploration is a significant focus for 2017 INSIGHTS Tabakoto Site Map › As Tabakoto operations are characterized by a short-term mine life, a $9 million exploration program totaling approximately 86,000 meters of drilling on the Tabakoto and Kofi properties has b
Slide 26: Ity Heap Leach Mine, Côte d'Ivoire
Q3-2017 RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE Lower production as high-grade Bakatouo is preserved for Ity CIL Project Q3-17 vs Q2-17 INSIGHTS: Production and AISC › Production decreased due to lower processed grades and recovery rates, Production, koz AISC, US$/oz which were partially offset b
Slide 27: Ity Heap Leach Mine: CIL Construction Has Started
Q3-2017 RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE CIL Construction Has Started Earthworks are underway ACHIEVEMENTS TO DATE › Long-lead items ordered › $116m already committed › EPCM contracted award to Lycopodium › Construction workforce mobilisation is progressing well › Process plant area earthw
Slide 28: Ity Mine, Côte d'Ivoire
Q3-2017 RESULTS ITY MINE, COTE D’IVOIRE 1 Moz of indicated resources already added since the beginning of the year INSIGHTS Ity Mine Drilling Targets › During the first nine months of 2017, some 56,000 meters were drilled, and drilling is on- going on the Le Plaque announced discovery. Due to this s
Slide 29: Nzema Mine, Ghana
Q3-2017 RESULTS NZEMA MINE, GHANA Significant improvement following completion of cut-back Q3-17 vs Q2-17 INSIGHTS: Production and AISC Production, koz AISC, US$/oz 37koz › Production increased significantly due to higher processed grades and increased mill 27koz throughput 24koz 24koz 26koz › Quali
Slide 30: Karma Mine, Burkina Faso
Q3-2017 RESULTS KARMA MINE, BURKINA FASO Profile is expected to improve as new front-end was commissioned Q3-17 vs Q2-17 INSIGHTS: Production and AISC › Production decreased due to lower grades and Production, koz AISC, US$/oz tonnage stacked which was partially offset by 32koz 29koz higher recovery
Slide 31: Karma Mine, Burkina Faso
Q3-2017 RESULTS KARMA MINE, BURKINA FASO Optimization program completed and new front-end commissioned INSIGHTS ADR Area - Before ADR Area - After › Plant optimization work has been successfully carried out during the past year. › The newly installed front-end completed its performance testing and i
Slide 32: Karma Mine, Burkina Faso
Q3-2017 RESULTS KARMA MINE, BURKINA FASO Expecting a maiden resource by year-end at Yabongso Karma Site Map INSIGHTS › In 2017 a $4 million exploration program totaling approximately 38,500 meters has been planned and approximately 41,000 meters were effectively drilled during the first nine months
Slide 33: Houndé Mine, Burkina Faso
Q3-2017 RESULTS HOUNDÉ MINE, BURKINA FASO Completed ahead of-time and below budget PROJECT COMPLETION HIGLIGHTS: Houndé First Gold Pour › Houndé achieved its first gold pour on October 18, 2017 › Commercial production was declared on November 1, more than 2 months ahead of schedule following the rap
Slide 34: Houndé Mine, Burkina Faso
Q3-2017 RESULTS HOUNDÉ MINE, BURKINA FASO Positive initial exploration results received INSIGHTS Exploration Targets in Proximity to the Planned Mill › Following a two-year period of no exploration drilling, activities resumed in 2017 with a $5 million program › During the first nine months a total
Slide 35: Financial Summary
1 YEAR TO DATE IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 36: Upcoming Catalysts
Q3-2017 RESULTS UPCOMING CATALYSTS 2017 OUTLOOK: › Gold production guidance increase to 630-675koz with Hounde Immediate › AISC guidance to decrease to below $900/oz with Hounde › Free Cash Flow (before growth projects, interest, WC, tax and financing cost) expected to increase to $165m, Cashflow ba
Slide 37: We Remain on Track to Achieving Our Objectives
Q3-2017 RESULTS WE REMAIN ON TRACK TO ACHIEVING OUR OBJECTIVES Key objective is to reduce the group’s AISC and extend mine lives STRATEGIC OBJECTIVE $1,317/oz For 2019 +900koz +900koz +800koz De-risked with Hounde 800-900koz $1,010/oz successful start-up 800-900koz Annual production $922/oz $895/oz
Slide 38: Appendix
1 YEAR TO DATE IN REVIEW 2 FINANCIAL SUMMARY OPERATIONAL AND 3 AND PROJECT DETAILS BY MINE 4 CONCLUSION 5 APPENDIX
Slide 39: Production and Cost Details by Mine by Quarter
Q3-2017 RESULTS PRODUCTION AND COST DETAILS BY MINE BY QUARTER AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit Q3-2017 Q2-2017 Q3-2016 Q3-2017 Q2-2017 Q3-2016 Q3-2017 Q2-2017 Q3-2016 Q3-2017 Q2-2017 Q3-2016 Q3-2017 Q2-2017 Q3-2016 Physicals Total tonnes mined – OP1 000t 7,576 6,952 6,877 1,33
Slide 40: Production and Cost Details by Mine Year to Date
Q3-2017 RESULTS PRODUCTION AND COST DETAILS BY MINE YEAR TO DATE AGBAOU NZEMA TABAKOTO ITY KARMA (on a 100% basis) 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months 9 Months Unit 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Physicals Total tonnes mined – OP1 000t