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TSX:TGZ / OTCQX:TGCDF
Building a
Multi-Asset Mid-Tier
West African Gold Producer
Precious Metals SummitNovember 5-6, 2018 – Zurich
November 8, 2018 – London
Forward-Looking Statements
2
All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s
expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of
applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing
information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”,
“potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”,
“will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information.
Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action.
Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as
of the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to
obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic
conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking statements include, among others, the inherent risks involved in exploration and development of mineral properties,
including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other
factors, such as project execution delays, many of which are beyond the control of Teranga. For a more comprehensive discussion of the risks faced by Teranga, and which may
cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or
implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities
at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and on
Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell
or a solicitation to buy or sell Teranga securities.
All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the words “we”, “us”, “our” and
similar words and the reader is referred to using the words “you”, “your” and similar words. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.
Senegal
Côte d’Ivoire
Burkina Faso
Mali
Guinea
Guinea-
Bisseau
The Gambia
GhanaBenin
Niger
Sierra
Leone
Liberia
Togo
3
Gourma
Exploration
Guitry
Dianra
Mahepleu
Tiassale
Sangaredougou
Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa
Afema JV
Golden Hill
Advanced Exploration
Project
Wahgnion Gold
Development2P Reserves: 1.6Moz(1)
Sabodala Gold
Operation2P Reserves: 2.7Moz(2)
Miminvest &
Afema
Exploration JVs
Refer to Appendix – Endnotes (1),(2)
4
SabodalaGold Mine(Senegal)
WahgnionGold Project(Burkina Faso)
Golden HillProject(Burkina Faso)
Miminvest &Afema JVs(Côte d’Ivoire)
Exploration & Resource Conversion
Mid-Tier Producer with Scale and Diversification
Strong Organic Growth Pipeline
4
5
Leading with Our Social License
Prospectors & Developers Association of Canada
2017 Environmental & Social Responsibility Award
United Nations Global Compact
Network Canada Sustainability Award
4X Winner of Corporate Knights Future 40
Responsible Corporate Leaders in Canada
Capital Finance International: Best ESG
Responsible Mining Management West Africa
SabodalaSenegal, West Africa
6
7
Life of Mine
Summary(2)(3)(5)(6)
5 years
(2018-2022)
13 years
(2018-2030)
Annual production 213koz 176koz
All-in sustaining costs* $885/oz $893/oz
Total free cash flow* $230M $556M
Strong 5-Year Profile with Potential to Increase Mine Life
Masato
Mamasato
Kouroundi
Kerekounda
Kourouloulou
Golouma South
Koulouqwinde
Koutoniokollo
Kinemba East
Kobokoto
Goumbati
West
Maki
Medina Golouma
West
Golouma
North
Soukhoto Niakafiri
EastNiakafiri
West
Diadiako Gora
Sabodala Gold Mine
Senegal, West AfricaPermitted mining license: 291 km2
*Refer to Appendix – Non-IFRS Performance Measures
Refer to Appendix – Endnotes (2),(3),(5),(6)
2.7Moz
2P Reserves(2)
4.4Moz
M&I Resources(2)
13-Year
Mine Life(3)
Sabodala: Largest Gold Producer in Senegal
with Large Resource Base & Long Mine Life
Strong Track Record of Replacing Reserves at Sabodala
Sabodala Proven and Probable Reserves(2) (Moz)
8
Significant Opportunity for
Growth at Sabodala
• Sabodala village relocation provides
opportunity to drill out Niakafiri, the
largest deposit on the mine license,
and to increase remaining mine life
• Village relocation expected to be
completed in 2019
1.4
1.7 1.6
2.8
2.6 2.6
2.7
2010 2011 2012 2013 2014 2015 2017
1.5Moz of Gold Production at
Sabodala Since 2010
Graph includes years for which there was a reserve update
Refer to Appendix – Endnote (2)
50,873 56,376
Q3 2017 Q3 2018
Production (oz Au)
On Track to Achieve Record Annual Production For Third Consecutive Year
233,267
FY2017 Updated2018 Outlook
FY 2018 Production
Guidance
235,000 – 240,000 oz(3)
9
165,333185,788
YTD 2017 YTD 2018
Refer to Appendix – Endnote (3)
Wahgnion ProjectBurkina Faso, West Africa
10
Wahgnion: The Next Large Long-Life Commercial Gold Mine in Burkina Faso
11
Nogbele
Stinger15 km from plant
Samavogo25 km from plant
Fourkoura6 km from plant
Wahgnion Development Project
Burkina Faso, West AfricaPermitted mining license: 89 km2
Four initial deposits at Wahgnion
(Nogbele, Samavogo, Fourkoura
& Stinger) located in close proximity
to proposed plant site
Proposed
Processing Plant
*Refer to Appendix – Non-IFRS Performance Measures
**Pre-production capital costs of $240 million excludes $16 million in construction
readiness activities spent prior to major construction
Refer to Appendix – Endnotes (1),(4),(5),(7)
Life of Mine Summary(1)(4)(5)(7)
Initial
5 years
LOM
(13 years)
Annual production 132koz 114koz
All-in sustaining costs* $761/oz $904/oz
Total free cash flow* $311M $479M
Pre-production capital** ($240M)
Pre-production operating costs ($28M)
Net cash flow $211M
13-Year
Mine Life(4)
1.6Moz
2P Reserves(1)
2.4Moz
M&I Resources(1)
Strong 5-Year Profile with Potential to Increase Mine Life
12
Wahgnion: Construction is on Schedule and in Line with Capital Estimates
Wahgnion Process Plant October 2018
Project Achievements To-date
• +1.8M hours worked without a LTI
• Peak recruitment surpassed with +1,600 workers on site
• Concrete on track despite rainy season
• Engineering and drafting largely complete
• Steel fabrication and delivery on schedule
• SMP contracts awarded and mobilization in progress
• Main camp area nearing completion
• Construction of the resettlement sites ongoing
Kafina West
RaulHillside
13
Significant Mid to Long-Term Upside Potential
Samavogo
Nogbele
FourkouraStinger
Bagu Sud
Korindougou
Ouahiri
Sud
Regional Exploration Includes ~12 Drill-Ready Targets
• Targets have potential to become resources and are
within trucking distance of proposed plant site
• Konatvogo: 2,000-metre NW-trending anomaly
between Fourkoura and Nogbele deposits. Up to 21.6
g/t Au from altered shear-hosted quartz vein outcrops
• Bassongoro: 1,500-metre NNE-trending soil and
auger anomaly (up to 15g/t Au). Intersection of
regional Nianka and Fourkoura structures undrilled
Raul
Proposed Plant Site
Kondandougoug
Konatvogo
Bazogo
Bassongoro
Samavogo North
MuddhiPetit Colline
Reserve Deposits
Exploration Targets
Wahgnion (Burkina Faso)Exploration licenses:+1,000 km2
Golden HillBurkina Faso, West Africa
14
15
Sources
¹ Semafo Corporate Presentation (Mar 2017)
² Roxgold Corporate Presentation (Feb 2017)
³ Endeavour Corporate Presentation (Feb 2017)
⁴ Acacia Preliminary Results (Feb 2017)
⁵ Savary Corporate Presentation (Mar 2017)
M&I Resources are inclusive of P&P Reserves
Siou Pit
M&I: 0.89 Moz ¹
Mana
M&I: 3.63 Moz ¹
Houndé
M&I: 2.55 Moz ³
Yaramoko
M&I: 0.81 Moz ²
Acacia JVs ⁴
Karankasso JV
Inf: 0.67 Moz ⁵
South Houndé JV
Inf: 2.10 Moz ⁴
Sarama Permits
Teranga’s Golden Hill
Project
Interpreted Geology
Andesite
Basalt
Basin
Batholith
Chert
Granitoid
Tarkwaian
Houndé Belt Burkina Faso, West Africa
9
Prospects
100%
Teranga Ownership
70,000
Metres DrilledACC
Holdings
Permits
Teranga’s Most Advanced Exploration Project
Situated in the Heart of the Houndé Belt (Burkina Faso)
• Golden Hill is situated 468 km2 & ~250 km NE of Wahgnion
• One of the most prospective gold belts in the world
• ~10.5Moz discovered to date on the Houndé Belt
Prospects Drilled in Q3 # of Holes Metres Drilled
Peksou 4 holes 494 metres
Jackhammer Hill 30 holes 4,416 metres
C-Zone 17 holes 2,116 metres
Ma North 35 holes 4,301 metres
Q3 Total 99 holes 12,955 metres
16
GEOLOGY
Tarkwaian Type Sediments
Volcano Sediments
Mixed Volcano Sediments & Volcanics
Basalt
Grantoid
Batholith
Ma North
Ma Main
Ma East
Jackhammer Hill
PeksouC-Zone
B-Zone
A-Zone
Nahiri
Rapidly Advancing Project
• On track to release an initial resource estimate in
January 2019 based on available drilling results at
Golden Hill’s most advanced prospects
• $25 million financing secured for the future
advancement of Golden Hill through to feasibility study
• Teranga owns 100% of Golden Hill following
acquisition of remaining interest from joint venture
partner in October 2018
• Entered into ACC joint venture relating to property
situated to the north of Golden Hill Peksou
North
Nahiri
Plateau
Golden Hill (Burkina Faso, West Africa)Exploration licenses:468 km2Potentially Teranga’s Third Mine
17
Teranga’s
Golden Hill
Project
ACC Holdings Permits
Interpreted Geology
ANDESITE
BASALT
BASIN
BATHOLITH
CHERT
GRANITOID
TARKWAIAN
Bondi
Ma North
JJH
Peksou
C-Zone
Ma Main
Sth
Houndé
Boni Sheer Zone
Additional Optionality: ACC Joint Venture
ACC Joint Venture
• Earn-in transaction structure, no-risk opportunity
• Located along the regional NE trend of favorable
structure (Boni Shear System) hosting priority
Golden Hill prospects: Ma Complex, Jackhammer
Hill, Peksou and C-Zone
• Minimum of five exploration targets partly defined
by positive rock, trench, auger and limited RC
drilling
ACC Exploration Targets Are Located Directly
North of Golden Hill
• Early stage exploration was undertaken on 4-6
prospects of interest with positive results
• Prospects located 15-25 km from potential mill
ACC
Targets
ACC
Targets
Jackhammer Hill
Peksou
C-Zone
Peksou North
Peksou Basin
Similar to Structural Inter-Relationships
Observed at Ma Complex
• The Peksou intrusive complex displays lithologic
and structural commonality as well in a number
of our advanced prospects: Jackhammer Hill,
Peksou and C-Zone
• Two new drill discoveries at Peksou North and
Peksou Basin demonstrate that new exploration
opportunities within and adjacent to the Peksou
intrusive complex still exist and further evaluation
will be prioritized here
Peksou Intrusive Complex: Discovery Opportunity
Jackhammer Hill Diorite
Peksou Granodiorite
Basalt
In-situ RAB, auger
or trench anomaly
Drill Hole
18
Golden Hill:
Peksou Intrusive ComplexBurkina Faso, West Africa
1919
Ma – Representative Drill Section
Excellent Grades Near Surface and to Depth at Ma Structural Complex
• Extensive structural complex consisting of numerous
mineralized structures in close proximity
• Mineralization remains open for all components of
Ma in all directions, including down-plunge of better
grade and width components:
– GHDD-047: 8 m @ 2.00 g/t gold, including 3 m
@ 4.23 g/t gold from 45 m downhole depth (DHD)
– GHDD-080: 6 m @ 5.79 g/t gold from 87 m DHD
and 17 m @ 3.45 g/t gold, including 6 m @ 6.32 g/t
gold from 122 m DHD
• Newest addition to the Ma area is Ma North,
with latest results confirming the presence of a third
mineralized breccia zone at the Ma Complex
Ma Structural Complex – Highlights
2020
Jackhammer Hill – Highlights
High-Grade Central Core Area at Jackhammer Hill Prospect
Jackhammer Hill – Representative Drill Section
• Three phases of early-stage drilling have been
completed in multiple altered shear zones
demonstrating continuity and depth extent:
– GHDD-319: 11 m @ 1.89 g/t gold, including 2
m @ 6.83 g/t gold from 41 m DHD
– GHDD-320: 8 m @ 22.1 g/t gold, including 1 m
@ 125.6 g/t gold uncut grade from 115 m DHD
– GHDD-334: 3 m @ 29.5 g/t gold, including 1 m
@ 84.7 g/t gold from 138 m DHD
2121
C-Zone – Highlights
Strong Gold Mineralization in Correlated Zones at C-Zone Prospect
C-Zone – Representative Drill Section
• Gold mineralization is localized in a discrete, mafic
volcanic hosted shear zone system displaying
alteration, veining and brecciation characteristics
similar to those observed at Ma prospect
• Three phases of drilling completed, with recent results
confirming the C-zone remains open to depth and
intersects with the southeastern portion of the Peksou
prospect:
– GHDD-308: 10 m @ 4.22 g/t gold, including 1 m
@ 10.27 g/t gold from 120 m DHD
– GHDD-312: 10 m @ 2.58 g/t gold, including 2 m
@ 7.41 g/t gold from 21 m DHD, and 6 m @
3.36 g/t gold, including 2 m @ 6.60 g/t gold from
89 m DHD
2222
Peksou North / Basin – Highlights
New Near-Surface Discoveries: Peksou North and Peksou Basin
Peksou North – Representative Drill Section
• Favourable early-stage near-surface results from the
first few holes from a series of scout holes at two
separate locations:
– Peksou Basin (GHDD-349): 3 m @ 14.36 g/t
gold, including 1 m @ 32.2 g/t gold uncut grade
from 27 m DHD
– Peksou North (GHDD-346): 40 m @ 1.11 g/t gold
from 24 m DHD
• Further drilling is planned to follow-up on these initial
positive results
Miminvest & Afema Exploration OpportunitiesCôte d’Ivoire, West Africa
23
Côte d'Ivoire35%
Burkina Faso21%
Ghana19%
Guinea11%
Mali10% Other
4%
Côte d’Ivoire: Future Value Resides with Miminvest and Afema Opportunities
24
Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Guitry
Tiassale
Mahepleu
Sangaredougou
Newcrest
Dianra
Afema
Côte d’Ivoire represents more
than one-third of the West African
Birimian Greenstone Belt
Operating Gold Mine/ Development Project
Miminvest Exploration Properties
• Guitry complex (includes Sangaredougou):
Highly prospective with potential to be
comprehensive district
• Dianra: Initial phase of exploration outlines
favourable follow-up targets
Afema Mine Joint Venture
• Two well mineralized greenstone belts
underlie large land package (includes mine
license)
• Five major shear structures crossing the
regional land package with a combined strike
length exceeding 140 km
High Priority Guitry District (including Sangaredougou)
• First-ever drilling program at Guitry consisted of a 68-hole,
3,320 metre air-core drilling program
• This program included a series of shallow, widely spaced,
multi-hole drill profiles designed to evaluate the central
1,000-metre strike extent within an extensive gold-in-soil
geochemical anomaly covering approximately a 3 x 7 km area
• The most favourable results were:
– 24 metres grading 2.02 g/t Au (GUAC008)
– 20 metres grading 6.37 g/t Au (GUAC018)
– 4 metres grading 5.80 g/t Au (GUAC015)
– an additional +10 holes intersected 1.0-1.5 g/t over
lengths up to 10 metres
• Results are currently being compiled and assessed towards
designing a follow-up exploration program consisting of ground
geophysics, mechanical trenching and further drilling (Q4 2018
and into Q1 2019)
• Awaiting Guitry West permit
Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Sangaredougou
Operating Gold Mine/ Development Project
Newcrest
25
Guitry Complex: On Extension of Houndé Belt
Guitry
Dianra: Situated at a High Profile Address
26
Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Operating Gold Mine/ Development Project
Newcrest
Dianra
Dianra
Proximal to High Profile Projects
• Tongon owned by Randgold (3Moz deposit)
• Endeavour-Randgold joint venture exploration
program lies immediately to northwest of Dianra
30 km Strike Extent Identified
• Extensive soil sampling program completed over
the entire strike extent of the property
• 238 line-km ground magnets survey completed that
defines a property-long structural target hosting a
6 km long gold-in-soil geochemical anomaly
Q1 2019 Planned Exploration
• Planning an excavator trenching program across
the 6 km long geochemical anomaly
• Favorable results to be followed-up with RC drilling
Afema: Located on Prolific Gold Belts Trending from Ghana
Ahafo
17 Moz
Newmont
3 Afema
Exploration
Permits
Afema
Mining Permit
Bibiani
7 Moz
Resolute
Chirano
5 Moz
Kinross
Edikan
6.6 Moz
Perseus
Bogoso/Prestea
18 Moz
Gold Star
Konogo
1.4 Moz
Signature Metals
Akyem
Newmont
Essase
5.19 Moz
Obotan
5.5 Moz
Asanko
Obuasi 41 Moz
Anglo Gold Ashanti
Kubi 0.9 Moz
Asaute Gold Corporation
Damang 7.1 Moz
Goldfields
Tarkwa 24 Moz
Iduapriem
8.2 Moz
AngloGold Ashanti
Kumasi
Cape Coast
Sefwi-Bibiani
Gold Belt Asankrangwa
Gold BeltAshanti
Gold Belt
Winneba-Kibi
Gold Belt
27
GhanaCôte d’Ivoire
High Profile Target Located at the
Confluence of Two Major Gold Belts
• H2 2018: Drilling at the Afema mine license
• Q4 2018: Property-wide airborne geophysics
and stream sediment (BLEG) programs
• Geological potential for large discoveries
• Drilling planned for October 2018 start-up
Afema Joint Venture (51%, earning 70%)
• Teranga can earn a 70% interest in the Afema
mining license and exploration permits
• Joint venture partner is Sodim Limited, a
private company
• Teranga will fund and manage
Wrap-Up
28
Unique Cornerstone Shareholder – Tablo Corporation – Currently Owns ~22% of Teranga
29
Initial private placement
34%
Gryphon acquisition
8%
Secondary public
offering25%
On market purchases
33%
Tablo Corporation Owns 23.5 Million Shares of Teranga at an Average Price of C$3.93
David Mimran, Director of Teranga, Controls Tablo Corporation
• Mr. Mimran is CEO of Grands Moulins d’Abidjan and Grands
Moulins de Dakar, one of the largest producers of flour and agri-
food in West Africa
• He is Special Advisor to the government of the Republic of Cote
d'Ivoire where he has led negotiations with the International
Monetary Fund, the World Bank, the European Union, and the
Government of the Republic of France
Strong Cornerstone Investor with In-Depth Local Knowledge
• Long history of operating responsibly in Africa
• Mimran Group is the largest private sector employer in both
Senegal and Côte d’Ivoire
Committed to Teranga’s Long-Term Growth
• Last November, Tablo announced its intention to add to its
holdings by acquiring up to 5% of Teranga’s issued and
outstanding common shares in the open market
One-third of Tablo’s shares were purchased through exercise of
anti-dilution right relating to acquisition of Gryphon Minerals in
October 2016 and November 2016 secondary offering.
Initial private placement was made in October 2015.
30
SabodalaGold Mine(Senegal)
WahgnionGold Project
(Burkina Faso)
Golden HillProject(Burkina Faso)
Miminvest &Afema JVs
(Côte d’Ivoire)
Exploration & Resource
Conversion
Mid-Tier Producer with Scale and Diversification
Strong Organic Growth Pipeline
30
Milestones and News Flow
31
Golden Hill
Continuous updates – 6 press releases YTD 2018
Acquired the remaining interest in Golden Hill
Entered into earn-in agreement with ACC
Funding secured to advance project to feasibility study
Initial resource estimate in early 2019
Côte d’Ivoire Making good progress advancing Miminvest
properties, particularly Guitry and Dianra
Commenced technical work at Afema
Wahgnion Construction advancing on schedule and in line with
latest capital spend estimates
Increased gold reserves by 450,000 oz
Extended mine life to 13 years and improved initial
5-year profile
Filed updated NI 43-101 Technical Report
Sabodala Record YTD production of 185,788 oz
Increased production guidance to 235,000–240,000 oz
Standout Investment Opportunity as Teranga Remains Undervalued Relative to Peers
EV/2P Reserves ($/oz)
EV/2018E EBITDA
2018 Year to Date Share Price Performance(as at close of markets on November 1, 2018)
426
324
277
228
68
58
B2Gold
Roxgold
Endeavour
Semafo
Teranga
Perseus
7.0
5.9
5.5
5.0
2.6
2.5
Endeavour
Semafo
Perseus
B2Gold
Teranga
Roxgold32
Source: BMO GoldPages – October 29, 2018
22%
(1%)
(13%)(17%)
(22%)
(39%)
TerangaPerseusB2GoldSemafoEndeavourRoxgold
Appendix
Top 20 Shareholders
% of
o/s
shares
# of shares(as at Oct 29, 2018)
1 Tablo Corporation (David Mimran) 21.8% 23,477,250
2 Van Eck Associates Corporation 6.4% 6,833,022
3 Ruffer LLP 3.8% 4,126,943
4 Dimensional Fund Advisors, L.P. 3.8% 4,115,124
5 Heartland Advisors, Inc. 2.8% 3,000,000
6 Konwave AG 2.0% 2,128,000
7 Franklin Advisers, Inc. 1.3% 1,379,553
8 Earth Resource Investment Grp 1.1% 1,217,500
9 Fidelity Management & Research 0.9% 975,814
10 Stabilitas GmbH 0.7% 800,000
11 O'Shaughnessy Asset Mgmnt 0.7% 787,542
12 Universal-Investment-Gesellschaft mbH 0.7% 717,400
13 MD Financial Management Inc. 0.6% 667,700
14 azValor Asset Management 0.6% 655,613
15 AgaNola AG 0.6% 650,000
16 Mackenzie Financial Corporation 0.6% 626,495
17 Ethenea Independent Investors 0.5% 500,000
18 Alan Hill 0.40% 431,200
19 U.S. Global Investors, Inc. 0.38% 412,607
20 Alps Advisors, Inc. 0.31% 333,237
Total held by top 20 shareholders 50.0% 53,835,00034
Capital Structure and Recent Share Price Performance
Source: IR Insight
Teranga Gold Capital Structure
(at October 29, 2018)
Common shares outstanding 107.6M
Stock options granted 5.4M
Fully diluted 113.0M
Number of shares owned by insiders 24.2M
Market capitalization $285.4M
Executive Team
35
Richard Young, CPA
President & CEO
25+ years experience in gold mining
including 13 years at Barrick Gold including
finance and corporate development
Paul Chawrun, P.Eng, MBA
Chief Operating Officer
25+ years experience in mining including
serving as Director, Technical Services
at Detour Gold
Navin Dyal, CPA
Chief Financial Officer
13 years experience in mining including 7
years at Barrick Gold as Head of Finance
in copper business unit
David Savarie, LL.B
General Counsel & Corporate Secretary
11 years of Corporate Counsel experience
in mining including his role as Deputy
General Counsel and Corporate Secretary
of Gabriel Resources
Aziz Sy, P.Eng, M.Sc., MBA
General Manager, SGO
17+ years experience in managing gold
exploration projects, including his work as
Vice President Senegal Operations for the
Oromin Joint Venture Group until its
acquisition in 2014 by Teranga Gold
Sepanta Dorri, MAcc, MBA, CPA
VP, Corporate and Stakeholder Development
10 years experience in mining including 5 years at
Xstrata Nickel in Strategic Planning and M&A.
2012 winner of the WXN Top 100 Canada's Most
Powerful Women award, Trailblazers and
Trendsetters Category
David Mallo, B.Sc. Geology
VP, Exploration
35+ years of mineral exploration in project
evaluation and program management, playing
an integral role in acquisition, discovery, and
exploration of world-class deposits including
Eskay Creek and Cobre Panama
Alan Hill, M.Eng
Chairman
35+ years experience in
mining including 20 years at
Barrick Gold in project
evaluation and development
Christopher Lattanzi, B.Eng
Director
30 years experience in mining
property valuation, scoping, feasibility
studies and project monitoring on a
global basis. Founder of Micon
International
Richard Young, CPA
President & CEO
25+ years experience in gold
mining including 13 years at
Barrick Gold in finance and
corporate development
Jendayi Frazer, Ph.D.
Director
17 years experience in key roles
supporting initiatives and policies
to build Africa’s equity and commodity
markets. First woman U.S. Ambassador
to South Africa
William Biggar, MA, CPA
Director
25+ years experience in senior
executive positions in investment,
mining and real estate including
Barrick Gold and Merrill Lynch
Edward Goldenberg, MA, BCl
Director
Distinguished career in policy including
10 years as Senior Policy Advisor to the
Prime Minister of Canada and the Prime
Minister's Chief of Staff in 2003. Honourary
Doctorate of Laws from McGill University
David Mimran
Director & Teranga’s Largest Shareholder
CEO of Grands Moulins d’Abidjan and
Grands Moulins de Dakar, among the
largest producers of agri-food in West
Africa. Special Advisor to the Government
of the Republic of Côte d'Ivoire
Alan Thomas, CPA
Director
30+ years mining and energy
industry experience in senior
financial and director roles including
6 years as VP and CFO of ShawCor
and 11 years as CFO of Noranda
Frank Wheatley, LL.B
Director
28 years mining industry experience as
director, senior officer and legal counsel.
Extensive experience in public financing,
project debt financing, permitting of large-
scale mining projects and strategic M&A
Board of Directors
36
Qualified Persons Statement
37
The technical information contained in this document relating to the Sabodala and Wahgnion open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the
Professional Engineers Ontario. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Mr. Ling has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a "Qualified Person" under NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Ling has consented to the inclusion in this document of the matters based on his
compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of
Professional Geoscientists of Ontario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which she is undertaking to qualify as a "Qualified Person" under NI 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this document of
the matters based on her compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Sabodala underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng., of Roscoe Postle Associates Inc. (“RPA”), who is
a member of the Professional Engineers Ontario. Mr. Sepp is “independent” within the meaning of NI 43-101. Mr. Sepp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a “Qualified Person” under NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Sepp has consented to the inclusion in this document of the matters based on his compiled information in the form
and context in which it appears in this document.
Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee of Teranga during the period of this resource update and is not "independent" within the meaning of NI 43-101. Mr. Mann has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a “Qualified Person” as under NI 43-101 Standards of Disclosure for Mineral
Projects. The technical information contained in this document relating to exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release,
including the sampling, analytical and test data underlying the information. The samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS
Johannesburg, South Africa. Mr. Mann has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.
Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and
Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted
into mineral reserves.
Teranga confirms that it is not aware of any new information or data that materially affects the information included in the technical reports for the Sabodala Project (August 30, 2017) and the Wahgnion Project (October 20, 2017) pursuant
to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (the “Technical Reports”), or year end results, market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements concerning the Technical Reports continue to apply and have not materially changed.
38
Non-IFRS Performance Measures
The Company has included non-IFRS measures in this document, including “total cash costs”, “total cash costs per ounce sold”, “all-in sustaining costs” (“AISC”), “AISC (excluding cash / (non-cash) inventory movements and
amortized advanced royalty costs)”, “AISC per ounce”, “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce”, “average realized gold price”, “earnings before interest, taxes,
depreciation and amortization” (“EBITDA”), “free cash flow”, “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share”. These measures are intended to provide additional information only and do
not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of
operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.
“Total cash costs” figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measure of other companies. “Total cash costs per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning
under IFRS. The Company reports total cash costs on a sales basis. The World Gold Council (“WGC”) definition of AISC seeks to extend the definition of total cash costs by adding corporate general and administrative costs,
reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of
producing gold from current operations. AISC excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all
of the Company’s cash expenditures. In addition, the calculation of AISC does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the
Company’s overall profitability. The Company also expands upon the WGC definition of AISC by presenting an additional measure of “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty
costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period.
For Sabodala and Wahgnion, life of mine total cash costs and AISC figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Consolidated total cash
costs and all-in sustaining cost figures add corporate overhead costs.
“Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized
price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and
80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
“EBITDA” excludes income tax, finance costs (before accretion expense), interest income, depreciation and amortization, and non-cash impairment charges from net profits. EBITDA is intended to provide additional information to
investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes
that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures.
“Free cash flow” is calculated as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives.
Starting in 2018, the Company adopted “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share” as new non-IFRS financial measures. These non-IFRS financial measures are used by
management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more
readily in comparison with results from prior periods. The Company calculates “adjusted net profit attributable to shareholders” as net profit attributable to shareholders adjusted to exclude specific items that are significant, but not
reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term obligations,
impairment provisions and reversals thereof, and other unusual or non-recurring items. During the second quarter of 2018, the Company also excluded the impact of foreign exchange movements on deferred taxes and other
non-cash fair value changes from adjusted net profit attributable to shareholders as management does not believe these factors to be reflective of the underlying performance of the Company.
For more information regarding these measures, please refer to the Company’s management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.
Endnotes
39
1. Wahgnion’s Mineral Reserve and Mineral Resource estimates as per as at May 31, 2018. For more information regarding Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the NI 43-
101 compliant technical report for the Wahgnion Gold Operations dated October 31, 2018 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.
2. Sabodala’s Mineral Reserve and Mineral Resource estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101
compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
3. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as of June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and
related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 available on the Company’s website at www.terangagold.com and on SEDAR at
www.sedar.com.
4. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at May 31, 2018. For more information regarding the Wahgnion’s Mineral Reserves and Resources
and related notes, please refer to the NI 43-101 compliant technical report for the Wahgnion Gold Operations dated October 31, 2018 available on the Company’s website at www.terangagold.com and SEDAR at
www.sedar.com.
5. LOM assumptions include: Gold Price $1,250 per ounce
Heavy Fuel Oil (HFO): Wahgnion - $0.59 per litre; Sabodala - $0.46 per litre
Light Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period); Sabodala - $0.81 per litre
Euro to USD Exchange Rate: $1.10
6. This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project,
Senegal, West Africa, dated August 30, 2017 (the “Sabodala Technical Report”). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs.
7. Net cash flow excludes Wahgnion financing, resource development and exploration expenditures.
TSX:TGZ / OTCQX:TGCDF
Trish Moran
Head of Investor Relations
77 King Street West, Suite 2110
Toronto, ON M5K 2A1
T: +1.416.607.4507
W: terangagold.com
