Slide 1: Q4 and Full Year 2016 Results
Q4 and Full Year 2016 Results › March 7, 2017
Slide 2: Disclaimer & Forward Looking Statements
2016 FULL YEAR 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 re
Slide 3: Speakers and Table of Content
SPEAKERS TABLE OF CONTENT SÉBASTIEN DE MONTESSUS OPERATIONAL AND Chief Executive Officer, President & Director 1 FINANCIAL SUMMARY ADRIAAN "ATTIE" ROUX DETAILS BY MINE AND Chief Operating Officer 2 PROJECT VINCENT BENOIT EVP – CFO 3 CONCLUSION and Corporate Development PATRICK BOUISSET 4 APPENDIX EV
Slide 4: 2016 Was a Transformational Year
2016 FULL YEAR RESULTS 2016 WAS A TRANSFORMATIONAL YEAR Top highlights Published Ity CIL Detailed Reset Strategy based on : Feasibility Study 1) Operational Excellence • Robust economics 2) Project Development • To be updated in H1-2017 to 3) Unlock Exploration Potential include new discoveries 4) P
Slide 5: Continued Operational Excellence in 2016
2016 FULL YEAR RESULTS CONTINUED OPERATIONAL EXCELLENCE IN 2016 Record performance and met all guidance metrics 584koz in 2016 +13% vs 2015 PRODUCTION GUIDANCE 575koz 610koz $884/oz in 2016 (4%) vs 2015 AISC GUIDANCE $870/oz $920/oz $142m 2016 FCF BEFORE +55% vs 2015 GROWTH PROJECTS GUIDANCE $
Slide 6: Record Production in 2016
2016 FULL YEAR RESULTS RECORD PRODUCTION IN 2016 Continued track record of meeting guidance Production, on a 100% basis in koz Guidance for the year +13% 2016 vs. 2015 600koz - 584koz 640koz 517koz 324koz 466koz +10% increase expected in 2017 2013 2014 2015 2016 2017 Guidance 6
Slide 7: AISC Continued to Trend Lower in 2016
2016 FULL YEAR RESULTS AISC CONTINUED TO TREND LOWER IN 2016 Proven track record of meeting guidance AISC, in US$/oz Guidance for the year $1,137/oz -$38/oz 2016 vs. 2015 $1,010/oz $922/oz $884/oz $860-905/oz <$900/oz for the first time 2013 2014 2015 2016 2017 Guidance Discontinued Youga oper
Slide 8: Record Performance in Q4
2016 FULL YEAR RESULTS RECORD PERFORMANCE IN Q4 As expected, all mines increased production Q4 INSIGHTS Production and AISC from continuing operations › Record performance with production up $934/oz 175koz 20% over previous quarter and AISC down 5% › Overall benefit from end of West- 146koz Africa’s
Slide 9: Free Cashflow Continued to Increase
2016 FULL YEAR RESULTS FREE CASHFLOW CONTINUED TO INCREASE Free cash flow before growth projects (and before WC, tax, and financing costs) $150m $142m +55% 2016 vs. 2015 $92m $28m $35m +10% Expected for 2017 (excluding Houndé $1,392/oz $1,264/oz $1,157/oz $1,234/oz $1,240/oz pre-production) 2013 201
Slide 10: Free Cashflow Continued to Increase
2016 FULL YEAR RESULTS FREE CASHFLOW CONTINUED TO INCREASE Driven by increased sales, lower AISC, and higher gold price Free cash flow before growth projects bridge (and before WC, tax, and financing costs) +$24m ($16m) $142m +$29m $92m +$35m ($20m) $72m 2015 FCF Youga Sale 2015 FCF Δ Gold Price Δ G
Slide 11: Free Cashflow Continued to Increase
2016 FULL YEAR RESULTS FREE CASHFLOW CONTINUED TO INCREASE Free cashflow up $58/oz compared to 2015 12 MONTHS ENDED DECEMBER, INSIGHTS 2016 2015 1. Increased sales with: $m $/oz $m $/oz ‒ Start of Karma contribution as of GOLD SOLD FROM CONTINUIN OPERATIONS, KOZ 1 546 452 October 1 (commercial produ
Slide 12: Net Free Cash Flow
2016 FULL YEAR RESULTS NET FREE CASH FLOW Remains positive despite Houndé Capex 12 MONTHS ENDED DEC. INSIGHTS US$m 2016 2015 1. Mainly due to inventory, gold-in-circuit FREE CASH FLOW BEFORE GROWTH PROJECTS and VAT build-up at Karma related to its 142 92 commissioning phase (and WC, tax & financing
Slide 13: Gold Revenue Protection Program
2016 FULL YEAR RESULTS GOLD REVENUE PROTECTION PROGRAM Designed to protect cash flow during Houndé construction period INSIGHTS Revenue Protection Program › Entered into Gold Option Contracts to increase the certainty of the free cash $1,450/oz flow during Houndé construction Ceiling at $1,400/oz pe
Slide 14: Adjusted Net Earnings
2016 FULL YEAR RESULTS ADJUSTED NET EARNINGS Up 142% compared to 2015 INSIGHTS 12 MONTHS ENDED DEC. 1. Youga results are removed due (US$m) 2016 2015 to disposal of the mine 2. Both 2015 and 2016 amounts relate to realized and TOTAL NET EARNINGS (52) 36 unrealized gains/losses on FCFA denominated cu
Slide 15: Significant Balance Sheet Improvement
2016 FULL YEAR RESULTS SIGNIFICANT BALANCE SHEET IMPROVEMENT Healthy financial structure to fund growth Net Debt Reduction Liquidity and Financing Sources Net debt Net Debt to trailing 12-month Operating EBITDA ratio $254m $124m Cash Position $144m 1.8x 1.0x $334m As of Dec 31st, 2016 $26m 0.1x $210
Slide 16: 2017 Guidance
2017 Guidance 2017 GUIDANCE Production is expected to increase and AISC to decrease INSIGHTS: Production Guidance, koz › Production is expected to increase in on a 100% basis 2016 ACTUAL 2017 GUIDANCE 2017 as improvements at Karma and Agbaou 195,505 175,000 - 180,000 Nzema are expected to more than
Slide 17: 2017 Guidance
2017 Guidance 2017 GUIDANCE Free cash flow expected to increase Capital and Exploration Spend Guidance, $m INSIGHTS: Sustaining Non-Sustaining Growth Exploration Guidance, $m › Due to the expected increased production In US$m Capital Capital Projects Agbaou 7 and lower AISC, the Free Cash Flow befor
Slide 18: Details by Mine and Project
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 19: Resource Evolution
2016 FULL YEAR RESULTS RESOURCE EVOLUTION 1.2Moz found in 2016, with discoveries yet to be quantified M&I Resource Bridge +1.2Moz +9% 0.2Moz 14.0Moz 0.6Moz 12.8Moz 0.5Moz 0.5Moz 0.8Moz 12.6Moz 0.1Moz North 11.0Moz 2.6Moz Kao Tabakoto UG Re-estimation and + Segala UG 0.8Moz declassification to Bakato
Slide 20: Reserve Evolution
2016 FULL YEAR RESULTS RESERVE EVOLUTION Replenished group depletion, reserves up 330koz Reserve Bridge, net of mine depletion 7.1Moz +168koz 6.7Moz (174koz) +432koz (65koz) (110koz) +78koz +949koz 5.9Moz (130koz) Sale of Purchase Agbaou Nzema Tabakoto Ity HL Ity CIL Karma 2015 Youga of Karma 2015 2
Slide 21: Agbaou Mine, Côte d'Ivoire
Q4-2016 RESULTS AGBAOU MINE, COTE D’IVOIRE Record 4th quarter performance Q4 vs. Q3 INSIGHTS: Production and AISC Production, koz AISC, US$/oz › Q4 benefited from the end 57koz of the rainy season, higher 52koz 49koz 43koz 46koz grade oxide material and introduction of higher grade transitional ore
Slide 22: Agbaou Mine, Côte d'Ivoire
2016 FULL YEAR RESULTS AGBAOU MINE, COTE D’IVOIRE Record 2016 performance 2016 vs 2015 INSIGHTS Production and AISC › Production benefited from higher grades and continued mill over-performance › The secondary crusher (commissioned in mid- 196koz 2016 ahead of schedule and under-budget) provides the
Slide 23: Agbaou Mine, Côte d'Ivoire
2016 FULL YEAR RESULTS AGBAOU MINE, COTE D’IVOIRE Exploration program is still on-going Agbaou Site Map INSIGHTS › The ongoing exploration campaign, which commenced in April 2016 is expected to be completed in H2-2017 › Campaign based on previous geophysics and soil geochemistry results, is focused
Slide 24: Tabakoto Mine, Mali
Q4-2016 RESULTS TABAKOTO MINE, MALI Record 4th quarter performance Q4 vs Q3 INSIGHTS Production and AISC Production, koz AISC, US$/oz +30% › First time AISC decreased below $1,000/oz 48koz 42koz 39koz 39koz 37koz › Anticipated higher grades from Kofi C and Segala $1,119/oz $1,071/oz $1,061/oz $1,071
Slide 25: Tabakoto Mine, Mali
2016 FULL YEAR RESULTS TABAKOTO MINE, MALI Significant continued improvement in AISC 2016 vs 2015 Insights Production and AISC › Production lifted by Increased overall grade and recovery rate 163koz › Improved open pit extraction (+24%) mainly due to 150-160koz opening up and accessing the deeper be
Slide 26: Tabakoto Mine, Mali
2016 FULL YEAR RESULTS TABAKOTO MINE, MALI New discoveries made in 2016 NEW DISCOVERIES MADE IN 2016 INCLUDE: Tabakoto Site Map › Tabakoto North Open Pit, confirming the continuation between Tabakoto and Dar Salam, already added ~50koz in 2016 with additional drilling to start in Q1-2017 around Kofi
Slide 27: Ity Heap Leach Mine, Côte d'Ivoire
Q4-2016 RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE Increased Q4 production following rainy season Q4 vs. Q3 INSIGHTS: Production and AISC › Production increased in Q4 Production, koz AISC, US$/oz following the end of the rainy 22koz season which allowed for 21koz 19koz increased throughput 17koz 15k
Slide 28: Ity Heap Leach Mine, Côte d'Ivoire
2016 FULL YEAR RESULTS ITY HEAP LEACH MINE, CÔTE D’IVOIRE 2016 Production Remained Flat Despite Lower Grades 2016 VS 2015 INSIGHTS Production and AISC › Production remained relatively flat as lower grade was offset by increased ore stacked thanks to new pit made available 81koz › Continued high reco
Slide 29: Ity Mine, Côte d'Ivoire
2016 FULL YEAR RESULTS ITY MINE, CÔTE D’IVOIRE Exploration added 515koz in 2016 and outlined new targets NEW DISCOVERIES MADE IN 2016 INCLUDE: Ity Mine Drilling Targets › Bakatouo and Colline Sud discoveries (515koz of M&I resources) with additional infill and extension drilling initiated in Q4-2016
Slide 30: Ity Mine, Côte d'Ivoire
ITY MINE, CÔTE D’IVOIRE Ity CIL Feasibility Study Published in 2016 Long-life Low Cost Project 165kozpa at AISC of US$507/oz • Long 14-year reserves mine life on average over the first 5 years • Low AISC of $507/oz over first 9 years • Solid production of 144kozpa over first 9 years 193koz 185koz Ro
Slide 31: Ity CIL Project, Côte d'Ivoire
2016 FULL YEAR RESULTS ITY CIL PROJECT, CÔTE D’IVOIRE Feasibility Study to be optimized in Q2-2017 Deposits to be added in the study Feasibility Study Optimization to Include: › Recent high-grade Bakatouo and Colline Sud discoveries › Verse Ouest following recently completed infill drilling program
Slide 32: Nzema Mine, Ghana
Q4-2016 RESULTS NZEMA MINE, GHANA Q4 Production remained flat over Q3 2016 VS 2015 INSIGHTS Production and AISC › Production slightly decreased over Production, koz AISC, US$/oz the previous quarter as the higher 23koz 24koz 24koz grades mined was offset by lower 20koz 20koz purchased ore grades › T
Slide 33: Nzema Mine, Ghana
2016 FULL YEAR RESULTS NZEMA MINE, GHANA Cut-back expected to improve AISC in 2017 2016 INSIGHTS Production and AISC › 2016 was a transitional year for Nzema as ore feed was constrained to low grade ore mined and stockpiles, supplemented by purchased ore feed 110koz 100-110koz › The 19% decrease in
Slide 34: Karma, Burkina Faso
2016 FULL YEAR RESULTS KARMA, BURKINA FASO Continuing to Ramp-up Q4-2016 INSIGHTS Producing at a run-rate of 100-110koz per annum › Commercial production was declared on October 1, Production, koz 10.0 2016 9.8 9.1 › Production continued to ramp up as the higher grade 7.4 Rambo pit complemented ore
Slide 35: Karma, Burkina Faso
2016 FULL YEAR RESULTS KARMA, BURKINA FASO North Kao Reserve Conversion Extended Mine Life To +10 Years NORTH KAO INSIGHTS Karma Site Map › North Kao infill drilling confirmed the continuity of the previous inferred resource and improved the grade profile ‒ 314koz of resources amenable to heap leach
Slide 36: Houndé Project, Burkina Faso
2016 FULL YEAR RESULTS HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget SIGNIFICANT ACHIEVEMENTS TO-DATE: Procurement Was 80% Complete At Year-end › Construction is progressing as planned, with over 65% completed › Over 2.7 million man-hours have been worked without LTI. ›
Slide 37: Houndé Project, Burkina Faso
2016 FULL YEAR RESULTS HOUNDÉ PROJECT, BURKINA FASO Construction Progressing On-time And On-budget CIL Tanks Primary Crusher SAG Mill First Lift Poured Village Resettlement 37
Slide 38: Houndé Project, Burkina Faso
2016 FULL YEAR RESULTS HOUNDÉ PROJECT, BURKINA FASO Exploration Re-launched in 2017 2017 OUTLOOK Exploration Targets in Proximity to the Planned Mill › The Houndé exploration tenement covers +1,075km² within Burkina Faso’s highly prospective Birimian belt › Historically, exploration focus mainly on
Slide 39: Conclusion
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 40: On Track to Building a Low Cost African Producer
2016 FULL YEAR RESULTS ON TRACK TO BUILDING A LOW COST AFRICAN PRODUCER Production of +900koz at AISC <$800/oz by 2019 $1 137 +900koz 600-640koz 584koz $1 010 517koz 462koz $922 $860- $884 317koz 905 220koz <$800 167koz 83koz 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Group AISC Nzema, Ghana
Slide 41: Upcoming Catalysts
2016 FULL YEAR RESULTS UPCOMING CATALYSTS 2017 OUTLOOK: › Gold production expected to increase to 600-640koz (excluding Houndé) Immediate › AISC expected to decrease further to $860-905/oz › Free Cash Flow (before growth projects, WC, tax and financing cost) expected to increase to $150m, Cashflow b
Slide 42: Appendix
OPERATIONAL AND 1 FINANCIAL SUMMARY DETAILS BY MINE 2 AND PROJECT 3 CONCLUSION 4 APPENDIX
Slide 43: Production and Cost Details by Mine
Q4-2016 RESULTS PRODUCTION AND COST DETAILS BY MINE On a quarterly basis AGBAOU 43 NZEMA TABAKOTO ITY KARMA (on a 100% basis) Unit Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Q3-2016 Q4-2015 Q4-2016 Physicals Total tonnes mined – OP1 000t 6,518 6,877 5,116 2,885 2
Slide 44: Production and Cost Details by Mine
2016 FULL YEAR RESULTS PRODUCTION AND COST DETAILS BY MINE For the years ended 2016 and 2015 AGBAOU NZEMA TABAKOTO ITY3 KARMA (on a 100% basis) Unit FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 FY-2015 FY-2016 Physicals Total tonnes mined – OP1 000t 25,382 20,447 9,295 8,144 7,098 9,298 6
Slide 45: Reserves and Resources
2016 FULL YEAR RESULTS RESERVES AND RESOURCES Tabakoto Mine Group Consolidated Total Resources shown inclusive of Reserves. On a 100% basis Tonnage (Mt) Grade (Au g/t) Content (Au koz) On a 100% basis On an attributable basis Proven Reserves 2.9 2.98 274 Resources shown Tonnage Grade Content Tonnage