teranga gold investor presentation - february 2014
TRANSCRIPT
1
INVESTOR PRESENTATION
FEBRUARY 2014
2
FORWARD LOOKING STATEMENTS
This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking
statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or
achievements of Teranga, or developments in Teranga’s business or in its industry, to differ materially from the anticipated results, performance, achievements or
developments expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, all disclosure regarding possible
events, conditions or results of operations, future economic conditions and courses of action, the proposed plans with respect to mine plan and consolidation of the
Sabodala Gold Project and OJVG Golouma Gold Project, mineral reserve and mineral resource estimates, anticipated life of mine operating and financial results,
targeted date for a NI 43-101 compliant technical report, amendment to the OJVG mining license, the approval of the Gora ESIA and permitting and the completion of
construction related thereto. Such statements are based upon assumptions, opinions and analysis made by management in light of its experience, current conditions
and its expectations of future developments that management believe to be reasonable and relevant. These assumptions include, among other things, the ability to
obtain any requisite Senegalese governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and
energy costs, future economic conditions and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which
speak only as of the date they are made. 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, as well as
other risks and uncertainties which are more fully described in the Company’s Annual Information Form dated March 27, 2013, and in other company filings with
securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should
assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this report should be construed as either an offer to sell or a
solicitation to buy or sell Teranga securities.
This presentation is dated as of February 21, 2014. All references to the Company 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 US dollars unless specified otherwise
3
TERANGA GOLD
• Ticker symbols/share price: TSX:TGZ / C$1.16²
ASX:TGZ / A$0.1.09²
• Domicile: Canada
• Basic shares outstanding: 317M
• Options outstanding: 24M¹
• Market capitalization: $330M²
• Cash & equivalents: $42M4
• Project finance outstanding: $30M³
• Mining fleet loan facility: $17M4
CAPITALIZATION SUMMARY OPERATIONS
Note: *all amounts in US$ unless specified otherwise, ¹average strike of C$2.58, including 15.8M at C$3; ²at 2/20/14; ³at 1/28/14 as per ASX report, reduced from $60M, 4at 12/31/13
4
INVESTMENT SUMMARY
• Excellent performance in 2013
- Mill expansion, elimination of out-of-the-money hedges, agreement with Senegalese Government
- Transformative acquisition of OJVG now complete, more than doubling reserves and resources
• New mine plan forecasts average production of about 250koz per year in lowest (best)
quartile of all-in sustaining costs (AISC)
• Corporate strategy focused on maximizing free cash flow
- Operations expected to generate significant free cash flow
- Disciplined capital allocation strategy
• Potential to add profitable ounces to production profile
- Heap-leaching of lower grade oxide ore
- Near-plant exploration
- Highly prospective regional exploration program on 70km gold belt
• Consistently meeting operational targets
• Senegal is a politically stable jurisdiction with a competitive mining fiscal regime
• Trading at a discount to peer group valuations
5
2013: A YEAR OF ACHIEVEMENTS
CORPORATE OPERATING & FINANCIAL
• Optimized mill to design capacity
• More material moved and processed at lower
unit costs
• Achieved production and cost guidance for
the year
- Produced 207,204 oz
- vs guidance of 190,000-210,000 oz
- Cash costs of $641/oz
- vs guidance of $650-700/oz
- All-in sustaining costs (AISC) of $1,033/oz
- vs guidance of $1,000-1,100/oz
• High conversion of EBITDA to free cash flow
• Year end cash balance: $42.3M
• Eliminated our inherited out-of-the-money
hedge contracts
• Established a long-term fiscal and
investment agreement with the Senegalese
government
• Acquisition of Oromin Joint Venture Group
(OJVG)
• Raised $135M from sale of royalty stream
to Franco-Nevada to acquire part of the
OJVG (Bendon) and repay half of loan
facility
6
TRANSFORMATIVE ACQUISITION OF OJVG
NOW COMPLETE
Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices
Source: Sabodala Standalone Mine Plan, Oct. 2013, Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March)
• Acquired Oromin Joint Venture Group (OJVG) in series of
transactions in Q3, Q4 2013
- Acquired Oromin (owner of 43.5% of OJVG) for 71M shares
(22% of current shares outstanding)
- Acquired Bendon (43.5%) via sale of gold stream to Franco-
Nevada1 for 6% gross stream (equivalent to 4.8% NSR royalty)
- Acquired Badr (13% carried) for $7.5M funded from treasury²
• Increased open pit reserves by 120% to 2.8 Moz of gold
• Extends mine life
- More than doubles reserves and resources
- Increases production life from 8 to 16 years
• Enables production to grow to ~250koz from ~200koz
- No significant incremental capex
- Lower unit cash costs
- Greater cash flow generation
• Allows for optimal sequencing of deposits based on grade,
ore hardness, distance to mill and capital requirements
- Minimize waste stripping at Sabodala, increasing 2014 cash
flow
• Consolidates the region and increases growth potential
from enlarged acreage position
- Mine license increases from 33km2 to 246km2
Before
OJVG
acquisition
After
OJVG
acquisition
Change
Reserves (Moz) 1.27 2.81 120%Reserve
Grade(g/t) 1.45 1.47 1%
M&I
Resources(Moz) 2.77 6.19 123%
Mine
license size (km2) 33 246 645%
Share count (M) 246 317 22%Resources /
share(oz) 0.011 0.020 73%
7
ACQUISITION LEADS TO IMMEDIATE
IMPROVEMENT IN CASH FLOW GENERATION
Notes: ¹See appendix for details of gold stream agreement; ²Plus contingent consideration based on increases in OJVG reserves and higher gold prices
Source: Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March)
8
TERANGA IS IN THE FIRST QUARTILE OF
2014 COST CURVE
Notes: includes companies with total 2014 production of c.50Moz (64% of total global mine production); bar heights of highest cost producers truncated to fit on graph
Source: BMO, 13/1/14
9
CORPORATE STRATEGY
• Maximize free cash flow generation
- Produce ~250koz/year
- Lowest (best) quartile AISC costs
- High conversion of EBITDA into cash
flow (low sustaining capex)
• Leverage existing processing
infrastructure
- Only gold production facility in Senegal
- Aim to grow reserves at low cost and
without shareholder dilution
- Potential for future expansion of process
capacity
Optimize mill
Heap leach potential
Mill expansion (if merited)
• Only Senegal
• Only gold
• Only commit capital to projects which
have
- IRR > hurdle rate
- Quick payback
VALUE CREATION DISCIPLINED ALLOCATION OF CAPITAL
RETURN OF CAPITAL
• Priority is to strengthen balance sheet
- Extinguish debt facility
- Build up sufficient cash to execute on
business plan
•Once balance sheet is strengthened,
Board will consider how to return
excess cash flows to shareholders via
dividends, special dividends or share
buybacks (depending on share price)
10
POTENTIAL TO ADD PROFITABLE
OUNCES
• Integrate OJVG and Sabodala operations
• Increase free cash flow through higher production
and lower material movement
• Increase reserves through conversion of M&I and
Inferred
• Evaluate heap leach processing option (permit and
build if economics are attractive)
• Optimize mill throughput
• Optimize mine planning and grade
SHORT AND MEDIUM TERM (2014-16) LONG TERM (2015-)
• Systematic identification and evaluation of targets on
- Expanded Sabodala mine license (246km2)
- Regional land package (1,055km2)
• Objective
- Millable reserve growth
- Heap leach reserve growth
- Satellite deposit discovery
- Standalone deposit discovery
Maximize free-cash flow
11
2014 EXPLORATION PROGRAM
• $10M Budget: - Mapping: 50km
- Trenching: 6,500m
- RAB drilling: 5,000m
- RC drilling: 3,000m
- Diamond drilling: 22,000m
• Budget allocation: - 50% Mine License
- 50% Regional Exploration Land Package
• Oromin’s personnel fully integrated
into Teranga’s exploration team - Provides continuity of knowledge specific to
OJVG deposits
• Acquisition of adjoining OJVG
increases reserves to 2.8 Moz - >10 years of Sabodala mill production
- Adds prospective land package
1. Millable reserve
growth (Masato, Goloumas)
2. Heap leachable
reserve growth (Niakafiri structure, Maki
Madina)
12
EXPLORATION: EARLY DAYS
IN NEW GOLD CAMP
• Neighbouring Shear Zone on
shared Kedougou-Kenieba
Greenstone Belt is host to 7
large deposits
• 1,055km2 land package covers
> 70km of strike length on an
offsetting Regional Scale
Structure
• Systematic exploration has
identified > 50 exploration
targets to date
3. Satellite deposit
discoveries (KC, Zone ABC, Gora)
4. Standalone
deposit discoveries (Ninienko and Soreto,
Garaboureya)
13
PERFORMANCE RELATIVE TO GUIDANCE
Guidance Range Actual
PRODUCTION CASH COSTS
Note: guidance is earliest given during the financial year; 2011 guidance was announced during the IPO process prior to the current management team starting
14
SENEGAL COMPARES FAVOURABLY TO
OTHER AFRICAN GOLD MINING JURISDICTIONS
IN TERMS OF SECURITY AND POLITICAL RISKS
Source: Control Risks, RiskMap 2014
15
PRICE/AVERAGE BROKER TARGET
UNDERVALUED RELATIVE TO GOLD
PRODUCING PEERS
Note: data set is primary gold producers with market cap >$100M, Africa focused or primary listing in Canada or Australia
Source: Bloomberg consensus and prices as of 02/15/14
EV/RESERVES & EV/RESOURCES
EV/EBITDA 2014E PRICE/EARNINGS 2014E
16
INVESTMENT SUMMARY
• Excellent performance in 2013
- Mill expansion, elimination of out-of-the-money hedges, agreement with Senegal government
- Transformative acquisition of OJVG now complete, more than doubling reserves and resources
• New mine plan forecasts average production of about 250koz per year in lowest (best)
quartile of all-in sustaining costs (AISC)
• Corporate strategy focused on maximizing free cash flow
- Operations expected to generate significant free cash flow
- Disciplined capital allocation strategy
• Potential to add profitable ounces to production profile
- Heap-leaching of lower grade oxide ore
- Near-plant exploration
- Highly prospective regional exploration program on 70km gold belt
• Consistently meeting operational targets
• Senegal is a politically stable jurisdiction with a competitive mining fiscal regime
• Trading at a discount to peer group valuations
17
CONTACT US
18
APPENDIX
19
CSR
The Company’s mission is to share the benefits of responsible mining with all of our stakeholders. We
strive to act as a responsible corporate citizen by building projects together with the communities, and by
being committed to using the best available techniques as we carry out our actions. We aim to achieve
benefits for all parties involved, and our quest for continuous improvement drives our way of doing
business.
- Completion of the Teranga Development Strategy
- Increase income-generating activities for the local population through
the enhancement of agricultural activities and local small business
initiatives
- Improve external communication of the Company’s profile as a
responsible miner organizing workshops and information meetings with
key stakeholders
- Strengthen the skills and capabilities of the local Human Resources
and the Learning and Development teams
- Expand the learning and development offerings available to our
employees
- Strengthen partnerships with specific vocational schools and higher
learning institutes in Senegal
- Participate in the creation of the Senegal Chamber of Mines
- Contribute to the Government of Senegal’s EITI application
2013 ACHIEVEMENTS 5 PILLARS OF COMMITMENT TO
SUSTAINABILITY
OUR FOCUS
1. Economic Sustainability
2. Agriculture and Food Security
3. Youth Education and Training
20
SAFETY STATISTICS
TRACK RECORD OF SAFE OPERATIONS
• Teranga is dedicated to excellence in safety
and aims its OHS indicators to exceed global
benchmarking standards
• Teranga is committed to creating and
sustaining a healthy and safe work
environment
• Sabodala’s Lost Time Injury (LTI) frequency is
well below the international benchmarking
standards
- Sabodala – 0.97 vs. International Standard – 4.19
Per million hours work
• We actively report and look at improvement of
all incidents no matter how small
• Sabodala continues to operate at a standard
equal to best practice international
standards
• We use internationally researched
methodology to investigate high potential
incidents (HPI’s)
COMMENTS
2011 2012 2013
Hours Worked 3,057,907 3,474,890 2,879,685
LTI 1 6 2
MTI 16 13 12
FAI 55 75 72
Incidents 219 374 345
High Potential Incidents 22 40 25
21
FRANCO-NEVADA STREAM AGREEMENT
• Franco-Nevada provided an upfront cash payment of $135M in exchange for a fixed
and floating stream on future production
- 2014 to 2019: 22,500 ounces per year
- 2020 and thereafter: 6% of gold production
• Franco-Nevada to pay 20% of spot gold price on each ounce delivered (the 6% stream
is equivalent to a 4.8% NSR royalty)
• Higher stream in first six years
- Allowed us to retire half of our debt facility
- Accelerate and repay balance of facility in 2014
- Provides certainty to Franco-Nevada as mine plan evolves
• Repaying debt more rapidly has clear benefits to the Company and shareholders
- Removing onerous financial covenants
- Reduced balance sheet risk
- Enables earlier initiation of return of capital
22
FISCAL REGIME
SENEGAL INVESTMENT AGREEMENT
AND FISCAL REGIME
• The Senegalese Government has stated the
importance of the mining industry in Senegal
• Partnership and trust between Senegalese
Government and Canadian & Senegalese
Management teams built on transparency
- Committed to growing domestic gold production
as quickly as possible
- Signing the Definitive Global Agreement (May
2013) provided a clear and transparent
framework that allowed investor confidence
- Agreement provides a price and formula to
acquire Government’s additional option on
satellite deposits and to incorporate these into
the existing mine license and fiscal regime
- Ensuring full access to exploration targets
currently occupied by artisanal miners
- Supporting drilling of the Niakafiri deposit on the
Mine License
- Extending the mine license by five years to 2022
and five key exploration licenses by 18 months
• The agreement made the Franco-Nevada
investment possible and paved the way for
the consolidation of the OJVG
IN PARTNERSHIP WITH SENEGAL
• 5% government royalty
• 25% corporate income tax after tax holiday
ends in May 2015
• 10% Government of Senegal free-carried
interest
• From 2009 to the end of 2013 Teranga has:
- Invested more than $500M in Senegal
- Paid $70M in royalties, dividends, and other
government payments
23
MANAGEMENT TEAM
Alan R. Hill
Executive Chairman
• Mining engineer with over 20 years experience globally in project evaluations, acquisitions and mine development as Executive VP of Barrick Gold
• Currently a Director of Gold Fields
• Former President and CEO of Gabriel Resources (2005-2009) and non-Executive Chairman of Alamos Gold (2004-2007)
Richard S. Young
President & CEO, Director
• Over 10 years experience in mining finance, development, corporate development, and investor relations with Barrick Gold
• Former VP and CFO of Gabriel Resources (2005-2010)
Mark English
VP, Sabodala Operations
• Over 24 years experience in the gold mining industry
• Previously worked for several companies in Australia, East and West Africa being involved in operating mines and development, inclusive of
greenfield start-ups
• Joined Mineral Deposits Ltd. in June 2006
Paul Chawrun
VP, Technical Services
• Mining Engineer and geologist with over 23 years experience
• Former EVP Corporate Development for Chieftain Metals
• Former Director, Technical Services Detour Gold
Navin Dyal
VP & CFO
• Over 13 years in finance, most recently 7 years with Barrick Gold (2005-2012)
• Former Director of Finance, Global Copper Business Unit – Barrick Gold
• Chartered Accountant – Four years at major public accounting firm
David Savarie
VP, General Counsel &
Corporate Secretary
• Over 10 years experience in the legal industry
• Former Deputy General Counsel and Corporate Secretary of Gabriel Resources
• Previously in private practice at Miller Thomson LLP
Kathy Sipos
VP, Investor & Stakeholder
Relations
• 10 years experience in Corporate Communications and Investor Relations with Barrick Gold (1996-2006)
• Former VP of Corporate Communications and Investor Relations of Gabriel Resources (2006-2009)
Aziz Sy
VP, Development Senegal
• Over 18 years experience in managing exploration projects from grassroots to development level
• Former VP of Oromin Joint-Venture Group overseeing Senegal Operations
• Former Country & Exploration Manager of Randgold Resources Limited in Senegal and Senior Manager Exploration of Lonmin Plc for West Africa and
Gabon
Macoumba Diop
General Manager &
Government Relations
Manager
• Geological Engineer, Master of Science in Finance with over 12 years experience in the mining industry
• Previously spent 11 years in a consulting business and in mineral project marketing and development
• Joined SGO in July 2011.
24
NON-EXECUTIVE DIRECTORS
Alan R. Thomas • Director/trustee and Chief Financial Officer of Labrador Iron Ore Royalty Corporation (formerly Labrador Iron Ore Trust) since 2004.
• Served on the board of directors of Gabriel Resources Ltd. from May 2006 until June 2010
• From 2000 to 2006 held the position of Vice-President and Chief Financial Officer of ShawCor Ltd., and CFO of Noranda Inc. from 1987 to 1998.
• Chartered accountant and graduate of the University of Toronto
Frank Wheatley • Chief Executive Officer and director of Yellowhead Mining Inc., Executive Director, Corporate Affairs and Strategy of Talison Lithium Limited and a
member of the board of directors of Selwyn Resources Ltd.
• Vice-President and General Counsel of Gabriel Resources Ltd., from 2000 to 2009, and prior to which, the President and Chief Operating Officer of
Gabriel Resources Ltd. from March 1999 to October 2000
• Before joining Gabriel Resources Ltd., he was Vice-President, Legal Affairs of Eldorado Gold Corporation.
• 28 years experience as a director and senior officer of, and legal counsel to, a number of Canadian public mining companies.
• Received his Bachelor of Commerce and LL.B. degrees from the University of British Columbia
Edward S. Goldenberg • Senior partner at the law firm of Bennett Jones LLP where he has a corporate practice, advising clients on governance issues, public policy and
government relations.
• Distinguished background working with the Government of Canada, having been the Senior Policy Advisor to the Prime Minister of Canada (1993-
2003) and the Prime Minister's Chief of Staff (2003).
• Awarded an Honourary Doctorate of Laws from McGill University in 2004
• Holds a BA, MA and BCL from McGill University and is also a graduate of the Institut d'Études Politiques de Paris (France)
Christopher R. Lattanzi • Director of Argonaut Gold Inc. and Spanish Mountain Gold Ltd.
• Associate consultant for Micon International Limited, having been the founding member of Micon in 1988 and serving as its president from formation
until 2005.
• Prior to 1988, was a consultant with David Robertson and Associates.
• Invaluable experience in property valuation, scoping, feasibility studies and project monitoring on a global basis.
• Appointed a director of Meridian Gold Inc. in 1999 and was chairman of the board from mid-2004 until December 2006
• Holds a B.Eng (Mining) from Melbourne University
25
BASE CASE LOM PLAN
Source: Base Case Sabodala Combined Life of Mine Plan, Feb. 2014 (NI 43-101 to be released in March)
LOM2014-2019
AVG 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Ore Mined Mt 4.8 4.8 - - - - - - - - - - - - - - -
Ore Grade g/t 1.68 1.68 - - - - - - - - - - - - - - -
Waste Mt 16.5 16.5 - - - - - - - - - - - - - - -
Contained Oz Moz 0.26 0.26 - - - - - - - - - - - - - - -
Ore Mined Mt 4.1 - - 0.5 1.7 1.9 - - - - - - - - - - -
Ore Grade g/t 1.51 - - 1.01 1.53 1.61 - - - - - - - - - - -
Waste Mt 29.6 - - 13.1 11.9 4.6 - - - - - - - - - - -
Contained Oz Moz 0.20 - - 0.02 0.09 0.10 - - - - - - - - - - -
Ore Mined Mt 13.5 0.9 12.6 - - - - - - - - - - - - - -
Ore Grade g/t 1.09 0.91 1.10 - - - - - - - - - - - - - -
Waste Mt 32.3 3.4 28.9 - - - - - - - - - - - - - -
Contained Oz Moz 0.47 0.03 0.44 - - - - - - - - - - - - - -
Ore Mined Mt 11.8 - - - - - - 0.3 2.5 9.0 - - - - - - -
Ore Grade g/t 1.37 - - - - - - 0.60 0.98 1.50 - - - - - - -
Waste Mt 101.3 - - - - - - 29.9 38.6 32.7 - - - - - - -
Contained Oz Moz 0.52 - - - - - - 0.01 0.08 0.43 - - - - - - -
Ore Mined Mt 1.9 - 0.2 0.7 0.3 0.4 0.2 - - - - - - - - - -
Ore Grade g/t 4.74 - 3.80 4.15 6.55 3.75 6.99 - - - - - - - - - -
Waste Mt 38.1 - 5.1 12.0 9.7 9.6 1.7 - - - - - - - - - -
Contained Oz Moz 0.29 - 0.03 0.10 0.06 0.05 0.05 - - - - - - - - - -
Ore Mined Mt 6.5 - - 1.0 0.5 0.8 2.5 1.7 - - - - - - - - -
Ore Grade g/t 2.24 - - 2.89 2.61 2.26 2.01 2.07 - - - - - - - - -
Waste Mt 89.8 - - 16.1 15.7 17.0 35.0 6.0 - - - - - - - - -
Contained Oz Moz 0.46 - - 0.09 0.04 0.06 0.16 0.11 - - - - - - - - -
Ore Mined Mt 0.9 - - 0.1 0.8 - - - - - - - - - - - -
Ore Grade g/t 3.26 - - 1.50 3.53 - - - - - - - - - - - -
Waste Mt 18.0 - - 7.4 10.6 - - - - - - - - - - - -
Contained Oz Moz 0.09 - - 0.01 0.09 - - - - - - - - - - - -
Ore Mined Mt 7.8 - - - - 4.6 3.2 - - - - - - - - - -
Ore Grade g/t 1.14 - - - - 1.14 1.14 - - - - - - - - - -
Waste Mt 22.6 - - - - 12.9 9.7 - - - - - - - - - -
Contained Oz Moz 0.29 - - - - 0.17 0.12 - - - - - - - - - -
Ore Mined Mt 51.3 6.3 5.7 12.8 2.3 3.3 7.7 5.9 2.1 2.5 9.0 - - - - - - -
Ore Grade g/t 1.57 1.61 1.56 1.15 2.84 2.60 1.51 1.74 1.82 0.98 1.50 - - - - - - -
Waste Mt 348.0 40.1 19.9 33.9 48.6 47.8 44.1 46.4 35.9 38.6 32.7 - - - - - - -
Contained Oz Moz 2.58 0.33 0.29 0.47 0.21 0.27 0.37 0.33 0.12 0.08 0.43 - - - - - - -
Stockpile Ore Balance Mt 10.9 19.7 18.0 17.4 21.2 23.1 21.4 20.0 25.2 21.4 17.6 13.8 10.0 6.2 2.2 0.0
Stockpile Grade g/t 0.79 0.77 0.71 0.71 0.70 0.69 0.69 0.69 0.73 0.70 0.70 0.69 0.67 0.65 0.66 -
Contained Oz Moz 0.27 0.48 0.41 0.40 0.47 0.51 0.47 0.44 0.60 0.48 0.39 0.31 0.22 0.13 0.05 0.00
Ore Milled Mt 59.9 3.9 3.4 4.0 4.0 3.8 4.0 4.0 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 4.0 2.2
Head Grade g/t 1.46 2.24 2.25 2.05 2.21 2.35 2.31 2.27 1.32 0.89 2.29 0.93 0.71 0.71 0.74 0.71 0.64 0.62
Oxide % 13% 23% 6% 50% 34% 6% 26% 15% 0% 1% 0% 0% 0% 0% 0% 0% 36% 50%
Rec. oz Moz 2.553 0.254 0.227 0.242 0.260 0.261 0.271 0.265 0.145 0.097 0.254 0.102 0.078 0.078 0.081 0.078 0.075 0.040
Sabodala Phase 3
Total
Niakafiri
Kerekounda
Golouma
Gora
Masato Phase 2
Masato Phase 1
Sabodala Phase 4
26
HISTORIC RESULTS AND GUIDANCE
Notes: NI 43-101 to be released in March, 2014
2009A 2010A 2011A 2012A 2013A 2014F
Ore Mined (000t) 2,637 2,915 3,973 5,915 4,540 5,300 - 6,000
Waste Mined - operating (000t) 9,144 13,199 21,818 12,265 15,172 18,200 - 19,000
Waste Mined - capitalized1 (000t) 10,696 15,066 500 - 1,000
Total Mined (000t) 11,781 16,114 25,791 28,877 34,778 24,000 - 26,000
Grade Mined (g/t) 2.19 1.80 1.39 1.98 1.62 1.60 - 1.70
Ounces Mined (oz) 186,077 168,979 177,362 376,185 236,718
Ore Milled (000t) 1,806 2,285 2,444 2,439 3,152 3,400 - 3,600
Head Grade (g/t) 3.12 2.12 1.87 3.08 2.24 2.20 - 2.40
Recovery (%) 92.2 90.7 89.5 88.7 91.4 90.0 - 91.0
Production (oz) 166,769 141,119 131,461 214,310 207,204 220,000 - 240,000
Mining ($/t) 2.24 2.42 2.29 2.71 2.59 2.75 - 2.95
Milling ($/t) 15.56 15.22 16.81 20.39 20.15 18.00 - 19.00
G&A ($/t) 9.54 5.17 5.75 6.20 5.38 4.75 - 5.25
Spot Sales Price ($/oz) 1,006 1,252 1,548 1,677 1,368
Avg Realized Price ($/oz) 902 1,072 1,236 1,422 1,246
Total Cash Costs ($/oz) 782 556 641 650 - 700
All-in Sustaining Costs2 ($/oz) 1,200 1,033 800 - 875
1 The Company adopted IFRIC 20 on January 1, 2013 and restated the 2012 comparat ive amounts
2 All-in sustaining costs per ounce sold include total cash costs per ounce, administrat ion expenses (excluding Corporate depreciat ion expense and social
community costs not related to current operat ions), capitalized deferred stripping, capitalized reserve development and mine site sustaining capital expenditures as
def ined by the World Gold Council
27 Note: Please see 2013 Financial Report and MD&A, 2013 for Resource and Reserve estimate assumptions
COMBINED RESERVES AND RESOURCES
28 Note: Please see ASX Fourth Quarter Report, 2013 for Resource and Reserve estimate assumptions
COMBINED RESERVES AND RESOURCES
29
The technical information contained in this document relating to the mineral reserve estimates for Sabodala, the stockpiles, Masato, Golouma and Kerekounda is based on information compiled
by Mr. Chawrun. Mr. Chawrun is member of the Professional Engineers Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the
ASX from time to time. Mr. Chawrun is a full-time employee of Teranga and is a "qualified person" as defined in NI 43-101 and a "competent person" as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Chawrun has sufficient experience relevant to the style of mineralization and type of deposit
under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr. Chawrun 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.
The technical information contained in this document relating to a mineral resource estimates is based on information compiled by Ms. Nakai-Lajoie. Ms. Patti Nakai-Lajoie, P. Geo., is a Member
of the Association of Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time.
Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the
style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 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 mineral reserve estimates for Gora and Niakafiri is based on, and fairly represents, information and supporting documentation
prepared by Julia Martin, P.Eng. who is a member of the Professional Engineers of Ontario and a Member of AusIMM (CP). Ms. Martin is a full time employee with AMC Mining Consultants
(Canada) Ltd., is independent of Teranga, is a “qualified person” as defined in NI 43-101 and a “competent person” as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity
she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms.
Martin is a “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Martin has reviewed and accepts responsibility for the Mineral Reserve
estimates for Gora and Niakafiri disclosed in this document and has consented to the inclusion of the matters based on her 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"). CIM definitions of the terms
"mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are
substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource",
"indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be
materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral
reserves will ultimately be converted into mineral reserves.
COMPETENT PERSONS STATEMENT