AGBAOU MINE - s21.q4cdn.com · Focus on improving the availability and utilisation of HME by BCM contractor 13 AGBAOU OVERVIEW. INSIGHTS

AGBAOU MINE

› November 2018

OVERVIEW

QUICK FACTS (ON 100% BASIS)

Ownership 85% EDV, 10% Côte d’Ivoire, 5% SODEMI

Resources(incl. of Reserves)

M&I: 10.3Mt @ 2.4 g/t for 0.804MozInferred: 1.0Mt @ 1.7g/t for 0.054Moz

Reserves 8.9Mt @ 2.3g/t for 0.668Moz

Processing Rate Up to 2.6 Mtpa Gravity/CIL plant - oxides; 1.6 Mtpa fresh

Open Pit Strip Ratio 8.42 to 1 (2017A)

Gold Recovery 94% (2017A)

Mining Type Open Pit – Contractor Mining

Production

AISC (mine-level)

2015A – $576/oz

2016A – $534/oz

2017A - $647oz

2018E - $860-900/oz

Royalty 3% - 5% sliding scale

Corporate Tax 25% (5 year corporate tax holiday ending mid-2019)

177koz2016A

181koz2015A

140-150koz

196koz2017A2018E

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Agbaou Mine

Abidjan

Ity Mine

Côte d’Ivoire

TIMELINE

AGBAOU OPERATIONS OVERVIEW

› Completed 2 months ahead of schedule with first gold pour on 29 November 2013

› Commercial production declared on 27 January 2014

› Completed $9m under budget for a total CAPEX of $150m

› Excellent safety record with no LTI and no fatalities

› 2.8 million man-hours completed during construction

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Built in 2012-2013 ahead of schedule and below budget with no LTI

CONSTRUCTION ACHIEVEMENTS

AHEAD OF TIME

0 LTIs

BELOW BUDGET

Processing plant

AGBAOU CONSTRUCTION PERFORMANCE

Production and AISC performance vs. study

STRONG OUT-PERFORMANCE COMPARED TO STUDY

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+51%average annual

production for 2014-2018

-10%average annual AISC

for 2014-2018

Produced almost 300koz more over first 5 yeas at a 10% lower AISC

104koz97koz

58koz

$619/oz$576/oz

$534/oz

$647/oz

$860/oz

20212014 2017 20202015 2016 20192018

147koz

181koz

196koz

177koz

145koz

Actual production Study production Actual AISC Study AISC

Mixing low-grade to speed up waste mining

50/50 soft/hard ore blend

Mainly free-dig oxide operation

AGBAOU OPERATIONAL PERFORMANCE

Plant performance vs. study


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~30%above nameplate

capacity based on oxide ore

+6Mtextra tonnes processed vs. study for 2014-2018

Plant running significantly above nameplate

1.3kt 1.3kt

0.6kt

202120202014 2015 2018E2016 2017 2019

2.2kt

2.7kt

2.8kt2.9kt

2.7kt

Actual Study

Expect roughly 2mtpa based on 50/50 soft/hard ore blend

Benefit of plant running 30% above nameplate and additions of oxide ore reserve


Reserves and depletion


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1.4Mozreserves endowment

+500kozounces added to

reserves

Reserve endowment up 59% since construction in 2013 with more oxide material

880koz 926koz1,027koz

853koz

668koz

151koz

338koz

540koz

728koz

20142013 20162015 2017

Reserves at year-end Cummulative depletion

1.4Moz reserve endowment


(1) Based on first 4 years of operating (2014-2017) 7

60%IRR based only on

first 4 years

$170madditional after-tax cash

flow generated

Additional $170m after-tax cash flow was generated


Cumulative After-Tax Cash Flows(1)

(200)

(100)

0

100

200

300

400

Year 0 Year 1 Year 2 Year 3 Year 4

US$m

Study Actual

$296m

$126m

ACTUALS STUDY

ESTIMATEΔ

Average Realised Gold Price to date(1) (US$) 1,228 1,250 (2%)

Total Production to date(1) (Koz) 701 475 48%

Average AISC to date(1) ($/oz) 591 646 (8%)

Cumulative After-Tax Cash Flows(1) (US$m) 296 126 135%

Payback (years) 1.5 2.5 (41%)

IRR 60% based only on first 4 years 28% for the life of mine n.a.


Payback of 18 months

PRODUCTION PROFILE SINCE THE OPERATION BEGAN

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2018 is a transition year with focus on waste mining to access better grades

INSIGHTS› For 2014 until 2016, Agbaou was a

free-dig oxide ore operation

› Secondary crusher was built in mid-2016 to process harder ore

› Hard ore blending commenced inlate 2016

› For 2017 hard ore represented circa30% of plant feed

› 2018 is a transitional year forAgbaou with a focus on wastecapitalisation activities which areexpected to provide access tohigher grade areas in the latterportion of Q4-2018

› Going forward, expect operation tooperate on a 70/30, hard/soft blend

147koz

181koz

196koz

$621/oz$576/oz

$535/oz

2016A2014 2017A 2018E2015

177koz

$647/oz

140-150koz

$860-$900/oz

AISC ($/oz) Production (koz)

Production and AISC


Production and AISCQ3-18 vs Q2-18 INSIGHTS› Due to the transitional nature of the year,

production remained at low levels in Q3-2018 as mining continued to be constrainedto low-grade areas and low-grade stockpilescontinued to supplement the mine feed

› Production decreased slightly over theprevious quarter mainly due to the impact ofthe rainy season and lower tonnes milled

› AISC increased as guided mainly due to thesignificant increase in sustaining wastecapitalization activities and an increase inunit processing and G&A costs which werepartially offset by lower unit mining costs

OUTLOOK

› Profile is expected to improve in the latterportion of Q4-2018 as the wastecapitalisation activities are expected toprovide access to higher grade areas

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Q1-2018 Q3-2018Q3-2017 Q4-2017 Q2-2018

46koz

32koz

43koz

34koz 31koz

AISC, US$/ozProduction, koz

$638/oz $690/oz

$752/oz$818/oz

For The Quarter Ended Q3-2018 Q2-2018 Q3-2017

Tonnes ore mined, kt 625 611 824

Strip ratio (incl. waste cap) 10.11 11.77 8.19

Tonnes milled, kt 669 727 770

Grade, g/t 1.54 1.60 1.96

Recovery rate, % 94% 92% 93%

PRODUCTION, KOZ 31 34 46

Cash cost/oz 791 720 548

AISC/OZ 954 818 638

$954/oz

Key Performance Indicators

Access to higher grade areas expected in the latter portion of Q4-20182018 PERFORMANCE


INSIGHTS

› Accessed by 250km paved highway followed by 7km graded road - 3.5 hours drive from Abidjan

› 15km/91 kV electrical transmission line and substation at site

› Power cost is $0.105 per kWhr

› Water supply is 71% recycled process water; 29% from water storage dam and/or from boreholes

› Storage dam capacity : 1.01 million m3 full = 18 months

› Fuel tank farm operated by total with capacity of 500m3 (sufficient for 21 days)

SITE LAYOUT AND INFRASTRUCTURE

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Excellent infrastructure with grid power

Agbaou Site Map

AGBAOU OVERVIEW

PIT LAYOUTS

Satelite P1North pit

Waste dump2

West Pit 1

South pit

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AGBAOU OVERVIEW

INSIGHTS

› Free dig ore in 2015 and 2016, with

transition to harder ore blending in 2017

› 2018 is expected to be a transition year for

Agbaou with a focus on waste capitalisation,

which is expected to give future access to

high grade areas

› Three main open pits will reach depths of

300m in the North pit, 175m in the South,

and 150m in the West pit

› 6 additional shallow satellite pits

› Secondary crusher allows for increased

mining flexibility

› Liebherr 9350 (285t class) and Komatsu PC

1250 (110t class) hydraulic excavators

› Cat 777D/E (100t class) rigid frame trucks

› Contract mining with BCM International Ltd

MINING

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Transitioning to harder ore blending

North and South pits

AGBAOU OVERVIEW

New CAT 6020 Excavator on site New D&B Atlas CC blast hole rig on site

Recondition shop on site New Komatsu Dozer on site

MINING: HEAVY MACHINERY EQUIPMENT (HME)Focus on improving the availability and utilisation of HME by BCM contractor

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AGBAOU OVERVIEW

INSIGHTS

› Poured first gold from CIL and gravity circuits on 29 November 2013

› SAG and ball mills design to 203 tph throughput

› Secondary crusher built in July 2016 on-time and on-budget

› Capacity of 1.6 to 2.6 Mtpa (incl. 2nd crusher, depending on harder bedrock and softer saprolite ore blend)

› Conventional gravity circuit with Knelson concentrators

› AARL Elution Circuit

› Achieved 97% recovery on oxide only; currently achieving +93% based on approximately 30% oxide/fresh ore blend

PROCESSING

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Agbaou Process Plant

AGBAOU OVERVIEW

PROCESSING

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Change from softer oxides to harder fresh feedPROPERTIES OXIDES FRESH

Sources:- Technical Report - OMC Report- Plant Data

Particle size in Process FeedTypical

70% -75µm< 900 mm

Specific Gravity 1.69 2.81

Mill Power (kWh/t) 4.08 20.7

Recovery % (Leach Kinetics at 45% Solids) 91.2 83.3

Steelball consumption (kg/t)0.43

(at 20% fresh)0.57

(at 100% fresh)

Cyanide consumption (kg/t) 0.20 0.37

AGBAOU OVERVIEW

FLOWSHEET

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AGBAOU OVERVIEW

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RESERVES AND RESOURCESAs at December 31, 2017

Resources shown inclusive of Reserves on a 100% basis

Tonnage (Mt)

Grade (Au g/t)

Content (Au koz)

Proven Reserves 1.0 1.41 44

Probable Reserves 7.9 2.45 624

P&P Reserves 8.9 2.34 668

Measured Resource 1.0 1.43 47

Indicated Resources 9.3 2.54 757

M&I Resources 10.3 2.43 804

Inferred Resources 1.0 1.74 54

AGBAOU OVERVIEW

AGBAOU EXPLORATION

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EXPLORATION OVERVIEWTarget of finding between 0.5 to 1.5Moz

Agbaou Site Map

AGBAOU EXPLORATION

INSIGHTS

› Main 2017-2018 priority was to test area and to generate targets and prioritize for the upcoming campaigns

› Key areas targeted :

1. Agbaou pit extensions

2. Agbaou North Pit at-depth

3. Parallel trends to Agbaou

0.5-1.5Moz5-year

discovery target

<$25/ozaverage 5-year discovery cost

> 50 ppb

Several targets were tested

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AGBAOU PIT EXTENSIONS

North Pit – Looking N

MPN_Ext5,325m

ASE940m

Beta_Ext22,426m

Sat3_Ext925m

Beta1,250m

North_Sat2786m

Beta_Ext13,558m

AMANIKRO1,488m

Sigma_Ext 7,590m

AGBAOU EXPLORATION

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Several targets were tested with only small extensions have been outlined

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AGBAOU PIT EXTENSIONS

Agbaou pits

AGBAOU EXPLORATION

1 1

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Intercepted mineralization 150m under the pitAGBAOU NORTH PIT AREA AT-DEPTH

AGBAOU EXPLORATION

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2m@5g/t Au

4m@17g/t Au (incl. [email protected]/t)

4m@3g/t Au (incl. 2m@4,70g/t)

[email protected]/t Au (incl. [email protected]/t)

[email protected]/t Au (incl. [email protected]/t)

[email protected]/t Au (incl. 1m@4,54g/t)

[email protected]/t

[email protected]/t Au

2m@2g/t Au

4m@2g/t Au (incl. [email protected]/t)

Deep Potential

Section - AGBDD2141

Example: Agbaou South target is lower-grade and not continuous mineralization

PARALLEL TRENDS TO AGBAOU

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3

AGBAOU EXPLORATION

SUSTAINABILITY AT AGBAOU

89%

11%

Gender breakdown

Male % Female %

14%

86%

Contractors VS Full-time employees

Contractors Full-time employees

24%

42%

34%

Activity breakdown

Mining

Processing

G&A/Support/Infrastructure

5%

95%

Expats VS Nationals

Expats Nationals

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EMPLOYEESAgbaou has a total of 285 employees’

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HEALTH AND SAFETY

Total number of hours worked in the reporting period 3,016,394h

Fatalities as a result of work-related injury

Number of incidents 0

Rate 0

Lost Time Injury (LTI)


Rate 0.3

LTI of high-consequence work-related injuries (expected recovery not within 6 months; excluding fatalities)


Rate 0

Medical Treatment Injury (MTI)


Rate 0.7

First Aid Injury (FAI)


Rate 3.6

Recordable work-related injuries (includes fatalities, LTI, MTI)


Rate 1

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COMMUNITIES

Education

› Basic education support project through the school excellence awards in the primary schools of the five impacted villages. 190 best pupils rewarded and IT equipment (3 computers and 3 printers) also donated to the best schools

Mining development fund

› 0.5% of revenues annually to support the mining community development fund (CDLM) administered by government, local and company representatives: 1,125,842 USD paid in 2018

› Agbaou contributed directly to the Local Development Plan guide as a guide for the CDML to implement all development programs. This resulted in building of a health center in 3 villages, 1 primary school and a capacity development program for 120 youth from Agbaou

Training› Training in safety, machine and equipment operating,

maintenance and administration

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ENVIRONMENT

ENERGY CONSUMPTION WITHIN THE ORGANIZATION WASTE

Energy consumption within the organization

Total fuel consumption from non-renewable sources

MWh 225,790

Gasoline (petrol) MWh224,529Diesel (total) MWh

Fuel oil MWh

1,261LPG MWh

Kerosene MWh

Total purchased electricity MWh 48,042

Total energy consumption MWh 273,832

Energy intensity

Energy intensity rationkWh/t of

prod.10

Direct GHG emissions

Emissions from fuel TCO2e 55,635

Waste by type

Total weight of hazardous waste ton 282

Total weight of non-hazardous waste ton 768

Water withdrawalTotal water withdrawal Ml 3.5

Surface water (total) Ml 0

Groundwater (total) Ml 3

Seawater (total) Ml 0

Produced water (total) Ml 0

Third party water (total) Ml 0

Water dischargeTotal water discharge Ml 0

WATER

› ~22 hectares of forest reserve established by Agbaou Operations

› 358 plant and tree species of which 31 are classified as rare or threatened1

› Participation and interest from universities for research and education

DEKPA FOREST RESERVE

1 Vroh Bi Tra Aimé, Tiébré Marie-Solange, Ouattara Djakalia, and N'Guessan Kouakou Édouard, Laboratoire de Botanique, UFR Biosciences, Université Félix Houphouët-Boigny, Côte d'Ivoire 29


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AGBAOU MINE - s21.q4cdn.com · Focus on improving the availability and utilisation of HME by BCM contractor 13 AGBAOU OVERVIEW. INSIGHTS