loulo-gounkoto site visit… - randgold resources€¦ · · 2015-02-02gold sales 6% 6% corporate...

Loulo-Gounkoto site visit…January 2015

Overview…

Mali

Côted’Ivoire

Senegal

Massawa Feasibility

Project, SenegalEquity 83%

Total Reserves 2.0Moz

Total Resources 4.7Moz

Tongon Gold Mine

Côte d’IvoireEquity 89%

Total reserves 2.2Moz

Total resources 3.6Moz

2013 production 233 591oz

Loulo-Gounkoto Mine

Complex, MaliEquity 80%

Loulo:



Gounkoto:



Loulo-Gounkoto


Morila Gold Mine

MaliEquity 40%




AFRICA

2

Fiscal parameters summary…

Royalty on gold sales

6% 6%

Corporate tax rate

30% 30%

Corporate taxminimum

0.75%of revenue

0.75%of revenue

Corporate taxholiday

5 years2000-2005

from first production

2 years 2011-2013

can extend on further investment

from first production

Import dutyholiday

3 yearsFuel and lubricants exempted for LOM

3 yearsFuel and lubricants exempted for LOM

Dividend withholding tax

none none

State participation

20%State participation

Not free

20% financed by RRL

10% preferreddividend

Tax stabilisation

Indefinitevalidity of convention

Indefinitevalidity of convention

PARAMETERS LOULO GOUNKOTO

3

Discovery and development of Loulo-Gounkoto Complex...

1996BHP Mali acquired

Gara resource – 659koz

Yalea discoveryresource -

2003Updated feasibility studyTotal reserve 1.28Moz

2004Construction begins

on Loulo mine

2005Loulo mine

opening

Loulo UG feasibility approved

2014

2005

Loulo UG development starts

2006

Yalea UG first gold

2008

Gounkoto discoveryresource -

2009Gounkoto

incorporated as separate

company

2010

Gounkoto first gold from open pit

2011

GounkotoFirst dividend paid

to shareholders

2012Gounkoto

UG feasibilitycommences

Production exceeds

600 000oz

Gara UG first gold

2011

1997

2014Loulo plant expansion

4

Loulo-Gounkoto...organogram

GM Loulo

Chiaka Berthe

Operations Mngr

Tahirou Ballo

Financial& AdminDaoudaDembele

HumanResources

Samba Diallo

Health &Safety

Dr MamaKanta

Security

HarryJooste

Process-ing

DrissaArama

Engineer-ing

AbbasCoulibaly

MineralResources

AmadouFamanta

Environment/Community

Hilaire BDiarra

UG MiningMamouToure

Open pitMiningThomas

Frempong

SupplyChain

CheiknaKonare

5

Mine Mngr Gounkoto

Thomas Frempong

Safety and Health…

Loulo-Gounkoto…safety, health, environment

Improving safety due to

proactive identification and

management of H&S risks

Decreasing malaria rate

No major environmental

incident reported

Both operations are certified

OHSAS 18001: 2007 and

ISO 14001:2004

Improved natural resources

management – water,

biodiversity and energy

Addressing EBOLA threat

through an integrated

prevention programme

0

1

2

3

2010 2011 2012 2013 YTD2014

0

10

20

30

40

50

60

2010 2011 2012 2013 YTD2014

0.0

0.1

0.2

0.3

0.4

2011 2012 2013 2014

Fresh water/tonne of ore milled

m3

Malaria incidence rate

LTIFR

0

1

2

3

2011 2012 2013 YTD2014

0.00

0.10

0.20

0.30

2011 2012 2013 2014

m3

0

20

40

60

80

2011 2012 2013 YTD2014

7

Mineral Resources…

Reserves and resources…

Yalea deposit…

Reserves…..3.3Moz @ 5.96g/t

Resources…5.9Moz @ 5.12g/t

<0.7 g/t

0.7 - 3.0 g/t

3.0 - 4.0 g/t

4.0 - 8.0 g/t

> 8.0 g/t

Planned drilling

2.7Km

90

0m

2003

2013

10

Previously drilled intercepts

Planned drilling

Reserves…..1.6Moz @ 4.32g/t

Resources…2.7Moz @ 4.18g/t

Gara deposit…reserve and resource envelopes

1.8Km

75

0m

2003

<0.5 g/t

0.5 - 3.0 g/t

3.0 - 5.0 g/t

5.0 - 8.0 g/t

> 8.0 g/t

2013

11

Opportunities…

Three world class orebodies:

Yalea

Gara

Gounkoto

Multiple ore sources which give flexibility for feeding the plant

Several satellite orebodies on Loulo and Gounkoto leases

Very prospective groundholding

Exploration…

Senegal Malian

Shear

Massawa

S E N E G A L M A L I

N

Randgold…controlling West Africa’s most prospective gold belts

Legend JV

Bambadji

Permit

Bena

Permit

Bakolobi JV

Reconnaissance mapping

completed along 17km strike -

9 anomalous lithosample results

return between 0.23g/t and 5.9g/t

Permit reissued -

south of Gounkoto

permit

Multiple

mineralised

intersections:

14m @ 2.47g/t

incl 5m @ 4.56g/t

8m @ 3.05g/t

incl 2m @ 4.58g/t

10km

1km

2km

Loulo

Gounkoto

Loulo

Gounkoto

Permit

reissued

5km

Main

Transcurrent

Zone 14

Loulo District…a proven world class destination

Loulo 3

Yalea

Loulo 2

P129

WarabaApparent

Resistivity

Residual

PQ10

P125

81

9

2

4

7

5

311

10

6

12Gara

Deposit

High resistivity

Medium resistivity

Low resistivity

Brownfields Exploration

Yalea and Gara structural

models generate new

targets along strike

Structural Mapping

Widespread “Gara Style”

fold related mineralisation

potential

Geochemical

Orientation Study

New targets generated

in district; further

interpretation in Q4

New IP Targets

12 potential targets

being field validatedN

2km15

Loulo – Yalea…drill results show high grade extension to orebody

Drilling intersected dilational structures giving increased grade and

width, exceeding expectations

High grade open to the south as well as at depth below the block

model, generating several new exploration targets

Gold g/t

>8g/t

5–8g/t

3–5g/t

0.5–3g/t

<0.5g/t

Yalea long section looking west

N2.7Km

YaDH11

6.30m @ 1.99g/t

YaDH15

30.7m @ 6.42g/tYaDH13

41.0m @ 3.56g/t

Open

Open

60o dip

80o dip

Dip change

(Yalea Shear)

Intersection

Yalea Structure

(upper strand)

Intersection

Yalea Structure

(lower strand)

Conversion Targets

16

Exploration Targets

Loulo - Gara…focus on extending high grade mineralisation

High grade mineralisation open down plunge

Gara long section

looking east

2Km

L0CP185

9.30m @ 10.48g/t

L0CP174

11.0m @ 5.88g/t

L0CP183

2.30m @ 8.33g/t

L0CP186

12.80m @ 1.08g/t

N

L0CP180

26.40m @ 4.49g/t

L0CP176

8.50m @ 6.74g/t

L0CP177

4.50m @ 5.63g/t

L0CP184

16.20m @ 5.96g/t

L0CP179

8.40m @ 3.15g/t

L0CP178

9.20m @ 4.05g/t

Open

OpenConversion Target

Warp Fold

Axis

‘S’ Fold

Axis

L0CP175

16.20m @ 5.96g/t

Gold g/t

>8g/t

5–8g/t

3–5g/t

0.5–3g/t

17

Exploration

Targets

Processing…

Processing…

Simplified metallurgical flow sheet…

20

Smelt-house

Primary

Mill

Stockpile

Elution

Secondary

Crushing

SOFT ORE

PRIMARY

CRUSHER

Conveyor

CIL Tank Farm

Cyclones

Knelson

Concentrators

Mineral

Sizer

Eluate

Gravity

concentrate

TAILINGS DISPOSAL DAM

8km

Upgraded

pipeline

Gold Bullion

Thickener and Clarifier

Accounting Sampling points

Regrind

Mills

Stockpile

Ball Mills

Ball Mills

Primary Mill

AARL

Intermediate Plant

Yalea and Gara

Paste Plant

Tertiary

Crushing

Processing projects underway…

TSF elevated toe drain

Intermediate plant

Cyclone pumps and cluster

Oxygen plant upgrade

New Elution Circuit

Gravity circuit upgrade

21

Intermediate plant

ILR Gekko

Engineering…

Achieved in 2014…

Commissioning of paste fill plants at Gara and Yalea

Upgraded secondary crushing plant

Commissioning of additional medium speed generators (7

MW capacity)

Installation and commissioning of primary fans

Upgraded the oxygen plant by adding additional 10 tonnes

per day

Projects 2014 …

Paste plant cement silo.

New secondary crusher

Intermediate plant

Power plant extension CM 9 & CM10 2014…

25

The two CM’s were commissioned and they are in operation. The fire

suppression system for the 2 additional generators will be completed early in 2015

All CM’s Start & Stop in

LFO & run in HFO

New UG primary fan and 10tpd oxygen plant…

Installation and

commissioning of primary fansYalea

Gara

Upgrade oxygen plant to improve the recovery

Focus for 2015…

Secure the mine medium voltage power distribution

Elution and regeneration upgrades

Improve oxygen distribution

Upgrade the Yalea underground crushing and

conveying system

Upgrade gravity circuit

Finalize refrigeration design for underground in 2015

Underground mining…

Loulo mining…

Yalea transverse area 15m wide with footwall development

Gara design in full retreat dependent on backfill

Primary and secondary stopes – reserves available vs backfill

0

0.2

0.4

0.6

0.8

Yalea Gara

Backfill reserves

Longitudinal Secondary stopes

Full-Retreat

Transverse

Secondary stopes

Longitudinal

Secondary stopes

Mt

0

0.5

1

1.5

2

Yalea Gara

Developed reserves

Mt

Yalea

Gara

29

Underground fill implementation…

CAF production

continues in both

mines until paste is in

full production

30

0

100

200

300

400

500

600

700

800

Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014

Gara UG Yalea UG

Loulo UG mining shows a steady improvement…

Yalea and Gara achieved record production in Q3 2014

Tonnes mined

31

Procurement…

Supply routes to West African operations…

33

Dakar

MassawaLoulo

Gounkoto

Morila

Tongon

Abidjan

Abidjan to Tongon

Abidjan to Morila

Dakar to Loulo-Gounkoto

625 km

800 km

1000 km

Achievements 2014…

Integrated supply chain and finance SAP system successfully

implemented

Stock value as at December 31, compared to 2013, excluding fuel,

decreased by 34% or USD 24.4 million

Successful year end stock take with a negative variance of 0.8%

Negotiated new contracts for key reagents resulting in a reduction to

2012 prices

Opportunities…

Increase consignment agreements for more high volume

consumables, reagents, spares, etc in order to reduce inventory

holding (Current value of consignment stock at Loulo mine = USD

6.4 M)

Target to double over 2 years

Reduce stores further through continued effective demand

planning and optimisation of supply routes

Continued contract negotiation for group fixed pricing contracts to

reduce input costs

Gounkoto…

Gounkoto…exploration opportunities

Potential

targets

Toronto

P64

MZ1

MZ2

Gounkoto Faraba

North

Interpreted

structure

Gounkoto North AreaSoil Geochemistry with EM

(AdTau)

Toronto

Trenching to test model and

oxide resource potential

Cover Mapping

Depth to saprock map over

project is underway

MZ3 Deep

New target, down plunge of

MZ3 Extension

Gounkoto SW

Mapping target structure.

Geophysics identifies

untested potential

>100

30 – 100

Gold in soil (ppb)

Gounkoto NW / P64

New P64 geologic model

applied in north, generates

new targets

Gounkoto Resource

Advanced grade control

drilling completed at MZ4

and P64

Gounkoto MZ3

Conversion drilling

confirmed high grade, did

not deepen $1000/oz pit

shell.

N

1km37

Gounkoto…MZ3 extension highlights upside potential

High grade open at depth, new targets down plunge of controlling structures

GKDH41814.50m @ 31.59g/t

GKDH424

16.95m @ 11.03g/t

P64

Open

MZ4

MZ3

extension

open

GKDH4306.60m @ 3.25g/t

GKDH4286.75m @ 2.75g/t

GKDH42637.50m @ 3.29g/t

GKDH4216.50m @ 4.49g/t

GKDH42211.70m @ 0.85g/t

GKDH4235.70m @ 0.69g/t

P64

MZ3

MZ1

MZ2

Gold g/t

>8g/t

5–8g/t

3–5g/t

1–3g/t

0.5-1g/t

38

Reserves….. 2.3Moz @ 4.30g/t

Resources… 4.4Moz @ 4.28g/t

Gounkoto UG Feasibility

Low capital design

Decline from pit

CAF plant on surface

No underground crushing

Vent raises to hole into the pit

39

Updated UG mine design

Potential ~1Moz reserve potential

Plan to start decline in 2018 and be at full production when pit completes in 2020

Extends Loulo-Gounkoto plan to achieve close + 600koz for 10 years

Financial…

Mali, Loulo standalone…operating results

9 months ended 12 months ended

30 Sep

2014

31 Dec

2013

31 Dec

2012

Mining

Tonnes mined (000) 2 141 4 251 9 825

Ore tonnes mined (000) 2 036 2 541 1 964

Milling

Tonnes processed (000) 1 948 2 432 1 837

Head grade milled (g/t) 5.1 4.5 4.2

Recovery (%) 90.4 88.0 88.6

Ounces produced 288 299 308 420 219 745

Ounces sold 285 073 312 748 214 739

Average price received ($/oz) 1 287 1 397 1 664

Cash operating costs* ($/oz) 606 692 684

Total cash costs* ($/oz) 683 776 781

Gold on hand at period end# ($000) 3 924 - 7 212

Profit from mining activity* ($000) 172 026 194 190 189 588

Gold sales* ($000) 366 760 436 950 357 224

Refer to Q3 2014 quarterly report for footnotes

41

Mali, Gounkoto standalone…operating results



30 Sep

2014

31 Dec

2013

31 Dec

2012

Mining

Tonnes mined (000) 17 960 28 936 28 706

Ore tonnes mined (000) 1 419 2 624 2 492

Milling



Recovery (%) 90.3 88.8 89.7

Ounces produced 214 790 271 943 283 479

Ounces sold 213 165 274 802 287 712






Gold sales* ($000) 274 333 371 361 475 126

42

Loulo-Gounkoto complex…operating results


30 Sep

2014

31 Dec

2013

31 Dec

2012

Mining

Tonnes mined (000) 20 101 33 188 38 531

Ore tonnes mined (000) 3 454 5 165 4 456

Milling



Recovery (%) 90.4 88.4 89.2

Ounces produced 503 090 580 364 503 224

Ounces sold 498 238 587 550 502 451






Gold sales* ($000) 641 094 808 311 832 350


43

Loulo-Gounkoto…5 year plan

0

1

2

3

4

5

6

7

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Actual production Total cash cost/oz Capex Grade

Grade g/tTotal cash cost/oz

Capex $m

Gradeg/t

ProductionOz 000

Cash cost$/oz

Capex$m

44

Contribition to Malian economy…to date

Total payment

$2.1 billion

$1 526m

$407m

$158m

Direct and

indirect taxes

Royalties

Loulo

Total payment

$425 million

$243m

$69m

Local suppliers, local

salaries, community

investment

Royalties

Gounkoto

$60m

Dividendspaid

$60m

Direct and Indirect taxes

Local suppliers, local

salaries, community

investment

45

Disclaimer…

Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As such

numbers are reported to the second significant digit. They are equivalent to National Instrument 43-101. Mineral

resources are reported at a cut-off grade based on a gold price of US$1 500/oz.

The reporting of mineral reserves is also in accordance with Industry Guide 7. Pit optimisations are carried out at a

gold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at a

cut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on a

gold price of US$1 000/oz. Dilution and ore loss are incorporated into the calculation of reserves. Cautionary note

to US investors: The United States Securities and Exchange Commission (the SEC) permits mining companies, in

their filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in this

annual report such as ‘resources’, that the SEC does not recognise and strictly prohibits the company from

including in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company’s

resources will ever be converted into reserves which qualify as ‘proven and probable reserves’ for the purposes of

the SEC’s Industry Guide number 7.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information

contained herein, the matters discussed in this presentation are forward-looking statements within the meaning of

Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, and

applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements

with respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral

reserve estimates, the timing and amount of estimated future production, costs of production, reserve

determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the

use of forward-looking terminology such as ‘will’, ‘plans’, ‘expects’ or ‘does not expect’, ‘is expected’, ‘budget’,

‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’ or ‘does not anticipate’, or ‘believes’, or variations of

such words and phrases or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will be

taken’, ‘occur’ or ‘be achieved’. Assumptions upon which such forward-looking statements are based are in turn

based on factors and events that are not within the control of Randgold Resources Limited (‘Randgold’) and there

is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown

risks, uncertainties and other factors that may cause the actual results, level of activity, performance or

achievements of Randgold to be materially different from those expressed or implied by such forward-looking

statements, including but not limited to: risks related to mining operations, including political risks and instability

and risks related to international operations, actual results of current exploration activities, conclusions of

economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors

discussed in Randgold’s filings with the US Securities and Exchange Commission (the ‘SEC’). Although Randgold

has attempted to identify important factors that could cause actual results to differ materially from those contained

in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or

intended. There can be no assurance that such statements will prove to be accurate, as actual results and future

events could differ materially from those anticipated in such statements. Accordingly, readers should not place

undue reliance on forward-looking statements. Randgold does not undertake to update any forward-looking

statements herein, except in accordance with applicable securities laws.

CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their filings with the SEC, to disclose

only proven and probable ore reserves. We use certain terms in this release, such as ‘resources’, that the SEC

does not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned not

to assume that all or any parts of our resources will ever be converted into reserves which qualify as ‘proven and

probable reserves’ for the purposes of the SEC’s Industry Guide number 7.

46

loulo-gounkoto site visit… - randgold resources€¦ · · 2015-02-02gold sales 6% 6% corporate...

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