high grade, low cost gold producer in west africa · q2 2017 q3 2017 q4 2017 q1 2018 q2 2018 q3...
TRANSCRIPT
High Grade, Low Cost
Gold Producer in West Africa
Investor Presentation
London Roadshow - July 2019Investor Presentation – London Roadshow
July 2019
High Grade, Low Cost
Gold Producer in West Africa
TSX: ROXG
2TSX: ROXG
This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of measured,
inferred and indicated mineral resources and proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and/or reserves
and the expansion potential of existing mineral resources/reserves and the expansion potential of mining operations including with respect to proposed development at Bagassi South and the anticipated timing
thereof; (ii) proposed exploration and development activities (including reinvestment in operating mines), and the anticipated cost, nature, success and timing thereof, as well as any potential resulting
mineralization and/or margin potential; (iii) production, earnings, recovery rates, throughput, margin, and cost guidance as well as future sources of funding, cash flow, capital expenditures and exploration
budgets, (iv) permitting; and (v) expansion and growth potential and the anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, future economics and
development activities related thereto, and other future production and anticipated grades; (vi) expectations the Company will be within its 2019 cost guidance; (vii) statements that are not of historical fact; (viii)
any potential updated Mineral Resource at the 55 Zone and the anticipated timing thereof; (ix) potential shareholder return initiatives in 2019; (x) anticipated production and resource per share growth; (ix) future
external growth opportunities including with respect to the Séguéla gold project and other permits, and the potential prospectivity thereof; and (x) the development potential of the Séguéla gold project,. For
further details regarding the Yaramoko project, please refer to the technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” dated December 20, 2017 (the “Technical Report”) as well
as the press releases of Roxgold Inc. (“Roxgold” or the “Company”) dated April 18, 2017 and the November 6, 2017, Bagassi South Feasibility Study news release.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking
information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this presentation is based on
certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the potential expansion of
mining operations, the realization of resource estimates and reserve estimates, gold metal prices, the timing, success and amount of future exploration and development expenditures, and materials to continue
to explore and develop the Yaramoko project and other property interests in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals and
permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources
and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources and/or reserves may not be established, or the anticipated
expansion potential of existing mineral resources/reserves or mining operations may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to
increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply
risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or
regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, risks that closing
and environmental risks. Please refer to the 2018 Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on May 14, 2019 for political, environmental or other risks that could materially affect
the development of mineral resources and mineral reserves and other forward looking matters. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These
and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking
information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Unless stated otherwise herein, the following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented in this
presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Dr. Belinda van Lente (CSA Global (UK) Ltd), Dr. Matthew Cobb (CSA Global Pty Ltd.), Iain Cox, Interim Chief Operating Officer (Roxgold), and Paul
Weedon, VP Exploration (Roxgold).
All amounts are in U.S. dollars unless otherwise stated.
Cautionary Statement
3TSX: ROXG
Roxgold – Compelling Investment in the Gold Sector
See Appendix – Endnote 1. All amounts in US dollars
Operating the high-grade Yaramoko Gold Mine
located on the Houndé belt in Burkina Faso
• Gold production of 145,000 – 155,000 oz expected in 2019
• Maintains high margins - 2019 guidance of:
• Cash operating cost1 - $440 -$470 /oz
• AISC1 - $765 -$795/oz
• Cash flow from mining operations of $89 million or $0.24/share in 2018
Attractive Growth Opportunities
• Acquisition of Séguéla Gold Project and additional highly prospective
exploration permits in Côte d’Ivoire covering ~3,298km2
• Resource growth and regional exploration at Yaramoko
Disciplined Capital Management
• Strong balance sheet and cashflow provides liquidity and financial flexibility
• Potential for additional shareholder return initiatives in 2019
Burkina Faso
Mali
Ghana
Benin
TogoNigeria
Guinea
Senegal
Mauritania
Côte d’IvoireLiberia
Niger
Atlantic
Ocean
Yaramoko Gold Mine
Flagship Asset
Séguéla Gold Project
Acquisition
AFRICA
4TSX: ROXG
Delivering Value to Shareholders
Executing on Per Share Growth
Daily Throughput
Operating Costs1
730tpd
US$203/t
1,187tpd
US$147/t
M&I Resources
Production Guidance (Year +1)
Cash Flow1
Return On Equity1
Shares Outstanding
2016 2018 Change
371.1 MM
738koz
374.4 MM
1,323koz
105-115koz
US$0.16/shr
145-155koz
US$0.24/shr
7% 23%
+77% Per Share
+35% Per Share
+50% Per Share
+229%
+63%
-28%
Per Share Improvements
2017 Q1 2019 ChangeOperational Improvements
Roxgold remains focused on adding value to shareholders on a per share
basis by focusing on organic and accretive growth
+1%
See Appendix – Endnote 1
5TSX: ROXG
Growing Our Resource Base1.3 Million Ounces in Mineral Resource Update
738827
1,323
188
(260)
161
496
Dec 2016
55 Zone
Jul 2017
Bagassi South
2017 / 18
Gold Production
2018
M&I Additions
Dec 2018
Yaramoko
Dec 2018
Séguéla
Dec 2018
Company Wide
Company Wide M&I Resource Growth (koz)
▪ Updated mineral reserves and resources for the Yaramoko gold mine and Séguéla gold project announced in July 2019
▪ Roxgold demonstrated a significant increase in mineral inventory, maintaining the mineral resource inventory at Yaramoko,
after producing 260koz in 2017 and 2018, and adding 496koz of inventory at Séguéla
See Appendix for Yaramoko Reserve and Resource Statements
6TSX: ROXG
Proven Track Record on Operating Performance
126,990 oz
2017 2018
132,656 oz
2019
Throughput
Exceeded production guidance and throughput capacity
145,000 – 155,000 oz
guidance
Original Guidance
Revised Guidance
ProductionNameplate capacity
exceeded by 14% in Q2
Current Nameplate - 1,100 tpd
Initial Nameplate – 750 tpd
201920182017
7TSX: ROXG
2018 Guidance Range $450 - $475
Low Cost OperatorManaging costs through efficiencies
2019
Cost per tonne
2017 Guidance Range $445 - $490
Cash Operating Cost1/oz
2019 Guidance Range $440 - $470
Beat Guidance at $426 for 2018
Beat Guidance at $438 for 2017
See Appendix – Endnote 1. All amounts in US dollars
Forecasting a 20% reduction in cost per tonne processed since 2017
8TSX: ROXG
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
0
50
100
150
200
250
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Head
Gra
de (
g/t
Au
)
Cash
Op
era
tin
g C
ost
(U
S$/t
)
Cash operating cost (tonne) Head grade (g/t Au)
Continued Focus on Operating CostsQ1 2019 operating costs reduced by 32% on a per tonne basis compared to Q1 2018
See Appendix – Endnote 1
$813 $708 $739
$780
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Q2 2018 Q3 2018 Q4 2018 Q1 2019
Cash operating cost Total cash cost
Mining operating margin AVG realized gold price1
Strong Operating Margins
9TSX: ROXG
2019 Second Quarter Production Highlights
Gold production of
34,354 oz
Recovery Rate
98.2%
Ore Processed
113,866 t – 14% above nameplate
Average head grade
9.0 g/t Au
Ore Mined
109,840 t
10TSX: ROXG
Yaramoko Gold Mine – Reserves and Resources*
Size Grade
Proven & Probable
Reserves
658k ounces 8.2 g/t
Measured & Indicated
Resources
827k ounces 12.1 g/t
Inferred 191k ounces 12.4 g/t
Yaramoko – Reserves and Resources Update
▪ Updated Reserve and Resource Statement announced in July 2019
▪ Significant conversion of Inferred to Indicated Resource
▪ Maintained reserve inventory at 658K ounces following 260K
ounces of production in 2017 and 2018
▪ 1.2 million ounces of Measured and Indicated with cumulative
production
*As of Dec 31st, 2018.
0
200
400
600
800
1,000
1,200
2014 2016 2018
Measured Indicated Cumulative Production
Historical M&I Resources – 1.2 MM oz
See Appendix for Yaramoko Reserve and Resource Statements
11TSX: ROXG
1.2Km
High Grade Orientation
Previous Limit of Indicated
Previous Limit of Inferred
Exploration
Potential
▪ Significant conversion of Inferred to
Indicated Resource
▪ Improved understanding of key
mineralization controls through detailed
mapping and supported by geostatistics
▪ Structural repetition of high grade zones
becoming apparent
▪ Planning underway for dedicated
underground drill platform for further infill
and depth extension drilling in H2 2020
▪ 55 Zone remains open at depth
55 Zone Drilling
High-grade shoot extended to 1.2 km below surface
YRM-18-DD-487 8.3g/t over 13.7m
YRM-18-DD-482 9.2 g/t over 5.4 m
YRM-18-DD-492W1 44.1g/t over 2.9m
YRM-18-DD-484AW3
13.4g/t over 3.9m
YRM-18-DD-484A
29.2g/t over 4.4m
YRM-19-DD-426W1 30.8g/t over 0.6mYRM-16-DD-426
20.1g/t over 23.8m
YRM-19-DD-488W1 2.5g/t over 5.2mYRM-18-DD-443BW3
4.1g/t over 9.8m
YRM-19-DD-493W1
0.7g/t over 2.7m
Inferred
Measured
Indicated
Previous Limit of Measured
YRM-18-DD-485A 34.1 g/t over 2.1m
See Appendix for Yaramoko Reserve and Resource Statements
12TSX: ROXG
Resource Growth – Bagassi SouthQV1 Structure – Significant Resource upgrade
Inferred
Indicated
Bagassi South Resource*
*As of Dec 31st, 2018.
▪ Substantial upgrade of Inferred to
Indicated, and increase in Inferred
▪ Deep drilling down plunge highlights
structural continuity
West
YRM-18-DD-BGS-435
16.1g/t over 0.5m
YRM-18-DD-BGS-415
38.6g/t over 0.5m
YRM-18-DD-BGS-406
15.5g/t over 1.8m
YRM-18-DD-BGS-422
6.4g/t over 1.0m
YRM-18-DD-BGS-410
7.3g/t over 0.6m
YRM-18-DD-BGS-412
6.0g/t over 0.8mYRM-18-DD-BGS-371
20.9g/t over 2.3m
YRM-18-DD-BGS-430A
30.4g/t over 0.5m
YRM-18-DD-BGS-389B
10.6g/t over 2.8m
YRM-18-DD-BGS-428
55.8g/t over 0.9m
YRM-18-DD-BGS-437
10.2g/t over 2.3m
YRM-18-DD-BGS-393
66.6g/t over 0.4m
East
YRM-18-DD-BGS-431B
14.8g/t over 0.5m
Measured
0.4Km
Size Grade
Measured &
Indicated
236K ounces 15.2 g/t
Inferred 33K ounces 11.1 g/t
See Appendix for Yaramoko Reserve and Resource Statements
13TSX: ROXG
Yaramoko Regional Exploration
▪ Large regional land package of approximately 230 km2, located
on the Houndé Belt
▪ Majority of anomalies located along the regional scale Boni
Shear and the second order Yaramoko Shear
▪ Systematic auger drilling along key structures with >30,000
metres completed this year
▪ Auger drilling continuing to extend southwards over Kaho
granite to the lease boundary with completion in Q2 2019
▪ Auger drilling underway at San and 300 Zone on coincident
structural and geochemical targets, extending north-eastwards
to lease boundary
▪ Pathfinder element suites identified to discriminate targets
▪ Integrated structural, geochemical, geophysical, and
lithogeochemical model in development to underpin target
generation in H2 2019
Focus on exploring the regional land package
300 Zone
San
Siou 10 Km
Hounde Project
12 Km
0km to 5km
Granodiorite
Granite
Mafic Volcanics
Volcanic Sediment
Felsic Dyke
Tarkwaian-Type Sediments
Mafic Dyke
55 Zone
QV1
QV’
Kaho
109 ZoneHaho
14TSX: ROXG
BURKINA FASO
CÔTE D’IVOIRE
MALI
GHANA
TOGOSéguéla
Ya ramoko
BENIN
Kadyoha OuestDianra
Bouake
Dimbokro
Abidjan
Yamoussoukro
Boundiali
Roxgold primary assets
Exploration permits
Major city
Séguéla Gold Project AcquisitionImmediate additional resource upside in high quality land package
▪ Acquisition of 11 exploration permits in Côte d’Ivoire
including the Séguéla project and the Antenna deposit
▪ Significant regional upside in 3,298km2 land package
▪ Early stage opportunities exist on the Dimbokro, Dianra North
and South, Boundiali and Bouake permits
▪ Access to infrastructure, in place workforce and extensive
exploration work completed to date provides streamlined
development potential
▪ Attractive entry point with internally funded US$20 million
acquisition cost
▪ A further US$10 million is payable upon first gold production
from any of the areas in the land package
GUINEA
LIBERIA
ATLANTIC
OCEAN
Ouagadougou
15TSX: ROXG
Séguéla Gold Project – Upgrade from Inferred to Indicated Resources
Antenna Resource
Size Grade
Indicated Resource 496K ounces 2.4 g/t
Inferred 34K ounces 2.4 g/t
▪ Near surface Antenna gold deposit discovered in 2016
▪ Maiden NI 43-101 Indicated Mineral Resource declared
in July 2019
▪ Close proximity to existing infrastructure including grid
power, transport and water resources
Mineral Resources – Antenna deposit*
*As of Dec 31st, 2018
See Appendix for Séguéla Gold Project Resource Statement
16TSX: ROXG
Séguéla Gold Project - Antenna Deposit Infill Drill Highlights
See Appendix – Endnotes 2, 3
SGRC200: 1.31 g/t Au over 19m from 7m
SGRC200: 2.1 g/t Au over 7m from 39m
SGRD103: 2.1 g/t Au over 18m from 78m
SGRD103: 5.3 g/t Au over 43m from 3m
SGRD105: 2.0 g/t Au over 65m from 1m
SGDD026: 9.2 g/t Au over 6m from 140m
New drill results2
Previous drill results3
New drill results2
SGRC201: 1.69 g/t Au over 28m from 0m
SGDD041: 4.46 g/t Au over 26m from 3m
SGRC106: 4.8 g/t Au over 8m from 0m
SGDD002: 6.3 g/t Au over 23m from 18m
SGRC004: 9.8 g/t Au over 18m from 31m
Previous drill results3
SGDD007: 1.7 g/t Au over 16m from 24m
New drill results subsequent to completion of Mineral Resource Estimate
▪ 3,782 metres of drilling completed since acquisition of Séguéla Project in April 2019
17TSX: ROXG
Prospective Satellite OpportunitiesMultiple exploration targets within 15 kilometres of Antenna deposit▪ Multiple exploration targets with potential to increase resource base with low cost near-
surface ounces
▪ Early stage drilling by Newcrest has produced results ranging from trace to 14 metres at
58.1 g/t Au from 0 metres including several high grade intercepts from nearby satellite
targets4
▪ A 24,000 metre aircore and select RC/DD drilling program commenced in late April 2019
testing highest ranked targets, including:
Boulder:
▪ 6 metres at 2.5 g/t Au in SGDD042 from 100 metres5:
▪ 11 metres at 3.0 g/t Au in SGRC207 from 91 metres5:
▪ 6 metres at 25.2 g/t Au in SGRD162 from 145 metres; and
▪ 7 metres at 9.0 g/t Au in SGRC161 from 18 metres
Agouti:
▪ 5 metres at 20.4 g/t Au in SGRC152 from 44 metres;
▪ 4 metres at 16.5 g/t Au in SGRC185 from 125 metres;
▪ 11 metres at 5.1 g/t Au in SGRC187 from 21 metres (incl. 4 meters at 13.7 g/t from 39
metres), and
▪ 8 metres at 4.2 g/t Au from 14 metres
P3
▪ 14 metres at 4.5 g/t Au in SGAC5403 from 3 metres;
Kwenko
▪ 41 metres at 0.44 g/t Au in SGRC179 from 47 metres;
Ancien:
▪ 16 metres at 9.3 g/t Au in SGRC172 from 37 metres
Far North
P4
P3
Barana
Gabbro
Gabbro South
Agouti
Gabbro
Boulder
Kabako East
Siakasso
Kabako South
Siakasso North
KwenkoAncien
Kwenko West
Antenna
Seguela Town
0km to 5km
2.5km
5km
10km
Basalt Gabbro Dolerite
Eastern Granites
Western Andestic Package
Western Granite
Eastern Schist
Petite Psamite
Power Line
Access Road
17See Appendix – Endnotes 4, 5
18TSX: ROXG
Value PropositionCompelling investment in the gold sector
Proven Track Record
• Exceeded production guidance in
2017 and 2018
• Low cost operator
• Successful project execution
delivering 55 Zone and Bagassi
South
Attractive Growth
Opportunities
• Séguéla Project and additional
exploration permits in Côte d’Ivoire
• Potential Resource growth at 55
Zone and Bagassi South
• Regional exploration at Yaramoko
Disciplined Capital
Management
• Strong balance sheet and cash
flow generation
• Financial liquidity and flexibility
• Potential for additional
shareholder return initiatives in
2019
19TSX: ROXG
Appendix
TSX: ROXG 20
2019 Guidance
Exploration Spend$10 - $12 million
Sustaining Capital Expenditure$30 - $35 million
Gold Production
$12 - $15 million
Cash Operating Cost1 (per ounce produced)
$440-$470
AISC1 (per ounce sold)
$765-$795
See Appendix – Endnotes 1, 6
Bagassi South pre-commercial production development spend6
145,000 – 155,000 oz
All amounts in U.S. dollars
21TSX: ROXG
2019 First Quarter Financial Highlights
Q1 2019 Q1 2018 YOY
Change
Gold produced (ounces) 33,652 40,452 (17%)
Gold sold7 (ounces) 32,798 40,050 (18%)
Gold sales7 $43m $53m (20%)
EBITDA1 $16m $29m (44%)
EBITDA Margin1 38% 54% (30%)
Average realized gold price $1,307/oz $1,329/oz (2%)
Cash operating cost1 (per ounce produced) $468/oz $381/oz 23%
Cash operating cost1 (per tonne processed) $147/t $216/t (32%)
Total cash cost1 (per ounce sold) $527/oz $451/oz 17%
Sustaining capital cost1 (per ounce sold) $180/oz $164/oz 10%
Site all-in sustaining cost1,8 (per ounce sold) $711/oz $615/oz 16%
All-in sustaining cost1 (per ounce sold) $775/oz $658/oz 18%
Cash flow from mining operations1 $23.4m $30.9m (24%)
Cash flow from mining operations per share1 $0.06 $0.08 (24%)
Adjusted earnings per share1 $0.01 $0.04 (70%)
Cash Operating Cost1
$468/oz produced
All-In Sustaining Cost1
$775/oz sold
All amounts in US dollars
EBITDA Margin1
38%
Return on Equity1
16%
Cash Flow From Mining
Operations1
$23.4m or $0.06 per share
See Appendix – Endnotes 1, 7, 8
22TSX: ROXG
Proven
Mineral Reserves
Probable
Mineral Reserves
Proven and Probable
Mineral ReservesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone 386 9.46 117 1,314 7.84 331 1,700 8.21 449
Bagassi
South49 7.50 12 612 9.12 179 661 9.00 191
Stockpiles 123 4.68 18 - - - 123 4.68 18
Total 558 8.21 147 1,926 8.25 511 2,484 8.24 658
Mineral Reserve Statement – Yaramoko Gold Mine
1. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of December 31, 2018 and are included in Mineral Resources. Mineral Reserve estimates reflect the Company’s
reasonable expectation that all necessary permits be maintained. Mining dilution and mining recovery vary by deposit and have been applied in estimating the Mineral Reserves.
2. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. Mineral Reserve estimates including mining dilution at grades assumed to be1.2g/t and 1.0g/t gold for 55
Zone and Bagassi South respectively. Mining dilution and recovery factors vary with specific reserve sources and are influenced by several factors including deposit type, deposit shape and mining
methods.
3. The 2018 Mineral Reserves were prepared under the supervision of Benny Zhang, Principal Mining Engineer at SRK, Peng (PEO # 100115459). Mr. Benny Zhang is a Qualified Person as defined by NI 43-
101 and independent of the Company.
4. The Mineral Reserve Statement effective on December 31, 2018 is reported at a cut-off grade of 3.7 g/t gold for the Zone 55 deposit assuming metal price of US$1,300 per ounce of gold, mining cost of
US$98.19 per tonne, G&A cost of US$19.31 per tonne, processing cost of US$23.75 per tonne, and process recovery of 98.3%; and a cut-off grade of 3.1 g/t gold for the Bagassi South deposit assuming
metal price of US$1,300 per ounce of gold, mining cost of US$76.10 per tonne, G&A cost of US$19.31 per tonne, processing cost of US$23.75 per tonne, and process recovery of 98.3%. Reserve
estimates include mining dilution and mining recovery.
5. All figures have been rounded to reflect the relative accuracy of the estimates.
6. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available the Company’s website and on
SEDAR at www.sedar.com.
As of December 31, 2018
23TSX: ROXG
Mineral Resource Statement – Yaramoko Gold Mine
As of December 31, 20181
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone
(in-situ)382 14.1 173 1,135 11.0 400 1,517 11.8 573 384 12.8 158
Bagassi South
(in-situ)37 13.5 16 445 15.3 219 482 15.2 236 93 11.1 33
Stockpiles 123 4.7 18 - - - 123 4.7 18 - - -
Total 542 11.9 208 1,580 12.2 619 2,122 12.13 827 477 12.4 191
1. Mineral Resources are reported in accordance with NI 43-101 with an effective date of March 9, 2019 and March 25, 2019, for the 55 Zone and Bagassi South respectively (collectively “Yaramoko”).
The Yaramoko Mineral Resources reflect that they have been depleted for mining and mine development up to December 31, 2018. Depletion also includes artisanal workings close to the surface.
2. The Yaramoko Mineral Resources are reported at gold grade cut-off of 3.5 g/t Au, assuming: metal price of US$1,450,oz Au, mining cost of US$85.00/t, general and administration (G&A) cost of
US$22.00/t, processing cost of US$31.00/t, process recovery of 98.5%.
3. The Mineral Resources have been classified under the guidelines of the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators
NI 43-101.
4. The Yaramoko Mineral Resource Statement was prepared under the supervision of Dr. Belinda van Lente, Principal Resource Geologist at CSA Global (UK) Ltd. Dr. van Lente is a Qualified Person as
defined in NI 43-101 and independent of the Company.
5. All figures have been rounded to reflect the relative accuracy of the estimates.
6. Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability.
7. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available the Company’s website and
on SEDAR at www.sedar.com.
24TSX: ROXG
As of December 31, 20181
Mineral Resource Statement – Séguéla Gold Project
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Antenna - - - 6,500 2.4 496 6,500 2.4 496 400 2.4 34
Total - - - 6,500 2.4 496 6,500 2.4 496 400 2.4 34
1. Mineral Resources are reported in accordance with NI 43-101 with an effective date of March 19, 2019 for Séguéla.
2. The Séguéla Mineral Resources are reported at a gold grade cut-off of 0.3g/t Au, based on a gold price of US$1,450/ounce.
3. The Mineral Resources have been classified under the guidelines of the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators
NI 43-101.
4. The Séguéla Mineral Resource Statement was prepared under the supervision of Dr. Matthew Cobb, Principal Resource Geologist at CSA Global Pty Ltd. Dr. Cobb is a Qualified Person as defined in
NI 43-101 and independent of the Company.
5. All figures have been rounded to reflect the relative accuracy of the estimates
6. Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability.
7. For further information, please refer to the news release dated July 11, 2019 titled “Roxgold Announces Updated Mineral Reserves & Mineral Resources Statement including Maiden NI 43-101
Mineral Resources Statement for the Séguéla Gold Project” which is available on the Company’s website and on SEDAR at www.sedar.com.
25TSX: ROXG
People at YaramokoHead GradeHead Grade
Operate and built a mine together
▪ 83% Burkinabe employment
▪ 43% of employees from the immediate area
▪ 64% of skilled employees from Burkina
▪ 70% of process plant department people is from
the immediate area of the mine site with no prior
mining skills
▪ Provided 6 – 12 months of intensive training
prior to start up
▪ Part of the team that ramped up Yaramoko
▪ The plant delivers ~99% recovery rates with 95%
operating time
Case Study: Training local people to operate and
maintain the process plant
Localization and social responsibility vision have proven to be effective
World class safety record
▪ One Lost Time Injury (LTI) occurrence in 2018 calendar year
▪ Lost Time Injury Frequency Rate (LTIFR=0.39) per one
million hours worked
▪ 18.2K hours of health and safety training provided in 2018
Bagassi youth employees’ graduation ceremony with Mrs. ZONGO Laure, Minister of
Women and National Solidarity in May 2017
26TSX: ROXG
Local
procurement
Health and
safety
Community
investment
Local
employment
Cultural
heritage
Road
Biodiversity
Local procurement▪ 90% of expenditures from suppliers registered in Burkina Faso
▪ Capacity building training for local suppliers nearby the mine resulting in US$1.1 million of spending for transportation, construction, food supply and
preparation
2018 Community Social Programs
Local employment▪ Improving employment opportunities for youth
Community health & safety
▪ Malaria control in three villages around the mine site
▪ Road safety, HIV and STIs education
Cultural heritage
▪ Supporting the traditional rituals and the preservation of the
Bwa ethnic group culture
Community development projects▪ 31 projects submitted, selected and implemented by the community representatives in collaboration with Roxgold
▪ 97 projects since 2014 including projects for women and youth such as occupational training center, potable water system, solar electrification
of schools and medical centers and construction of medical infrastructures
Win-Win situation to set up the foundations for common growth
Biodiversity
▪ Reforestation campaign planting over 20,000 trees per year for a total
of ~100,000 trees planted since 2014
▪ Protection and enhancement of local biodiversity areas
Community road infrastructures
▪ Progressive rehabilitation of the public road
27TSX: ROXG
Extensive community engagement program as foundation
of Roxgold’s Corporate Social Responsibility success
▪ Weekly meetings with the local public administration
(Prefect, Mayor)
▪ Monthly meetings with the surrounding villages
▪ Quarterly mine provincial committee
▪ Mine site visits
▪ Roxgold community relations office
▪ Billboards in each surrounding villages
▪ Local radio diffusion
2018 Community EngagementBuilding trust by proactive outreach and open-door approach
127
Village meetings
9 Committee meetings
103
Local authorities meetings
10
Mine site visits
Roxgold was the proud recipient of the 2018 Best
Corporate Social Responsibility (CSR) Company
award at the West Africa Mining Activities Week
(SAMAO) gala ceremony held in Burkina Faso,
recognizing Roxgold’s leadership and efforts in
community engagement and environmental
responsibility at Yaramoko.
28TSX: ROXG
Iain Cox, Interim Chief Operating Officer25+ years development & operational mining
Former Roles:
▪ Newmont Corp
▪ AMR
▪ Centamin
Craig Richards, Principal Mining Engineer30+ years development & operational experience
Former Roles:
▪ Newmont Ghana
▪ Barrick Gold
▪ Ashanti Goldfields
Vince Sapuppo, Chief Financial Officer15+ years senior finance, commercial and mergers &
acquisitions experience in mining and energy sectors
Former Roles:
▪ GM Finance - Beach Energy Limited
▪ Newcrest Mining
▪ BHP
Management Team
John Dorward, President & Chief Executive Officer 20 years development & operating mines experience
Former Roles:
▪ VP Business Dev. of Fronteer Gold
▪ Mineral Deposits Ltd
▪ Leviathan Resources
Eric Pick, VP, Corporate Development10+ years corporate finance and mergers &
acquisitions in mining sector
Former Roles:
▪ Cormark Securities Inc.
Paul Weedon, VP, Exploration25+ years exploration, development and production experience
Former Roles:
▪ Newmont Corp
▪ Anglogold Ashanti
Paul Criddle, Chief Development Officer20+ years operating & project development experience
Former Roles:
▪ Managing Director, Matador Mining
▪ COO, Roxgold
▪ COO, Azimuth Resources
29TSX: ROXG
Market Summary
Covering Sell-Side Firm Analyst
BMO (under review)
Canaccord (under review)
Cormark Tyron Breytenbach
Echelon Wealth Partners Ryan Walker
Eight Capital Craig Stanley
GMP Ingrid Rico
Haywood Geordie Mark
Global Mining Research David Radclyffe
Raymond James Tara Hassan
RBC Wayne Lam
Capital Structure (as at July 15, 2019)
ListingsTSX: ROXG
OTC: ROGFF
Cash ~US$48 million1
Common Shares Outstanding 370.0M
Share-based Payments 21.2M
Market Capitalization ~C$396M
1. As of March 31, 2019
Major Shareholders
Appian Capital 13.2%
1832 Asset Management 8.0%
International Finance Corp 6.2%
African Lion 3 Ltd 5.2%
Insiders and Management 3.5%
Yaramoko Debt Facility
▪ Face value of long-term debt of ~US$34.8 million as of March 31, 2019
▪ Interest rate of LIBOR plus 3.75%
▪ Hedging component remaining of 30,602 ounces of gold at US$1,052/oz
over the life of loan which matures in June 2021
▪ Project remains unencumbered by third party streams or royalties
30TSX: ROXG
Endnotes
1. These are a non-IFRS financial performance measures with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the Company’s 2019 Q1 MD&A available on the
Company’s website at www.roxgold.com or www.sedar.com.
2. See news release dated July 15, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification undertaken, the
results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
3. Source – Newcrest 2017 Quarterly Exploration Reports.
4. Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a National Instrument 43-101 mineral resource on the Tenements and it is uncertain if further
exploration will result in the Tenements being delineated as such a mineral resource.
5. See news release dated July 15, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification undertaken, the
results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
6. Bagassi South is expected to reach commercial production late in Q2. The spend is anticipated to be consistent with the December 2017 Technical Report.
7. For the period ended March 31, 2019, gold ounces sold, and gold sales include pre-commercial production ounces sold of 2,305 ounces and revenues of $3.0 million. The pre-commercial production gold
sales and mining operating expenses were accounted against Property, Plant and Equipment.
8. Site All-in sustaining costs excludes corporate G&A and in-country corporate costs.
31TSX: ROXG
Kelley StammManager, Investor Relations & Communications
360 Bay Street, Suite 500
Toronto, ON
M5H 2V6
www.roxgold.com
416 203 6401