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LSE:ACA Acacia Mining plc 2015 Interim Results Presentation July 2015 Important Notice This presentation includes forward - looking statements that express or imply Although Acacias management believes that the expectations reflected


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SLIDE 1

Acacia Mining plc

2015 Interim Results Presentation July 2015

LSE:ACA

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SLIDE 2

Important Notice

This presentation includes “forward-looking statements” that express or imply expectations of future events or results as opposed to historical facts. These statements include, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, projects, and statements regarding future performance. Forward-looking statements are generally identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” “estimates” and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and

  • ther factors, many of which are beyond the control of Acacia, which could cause

actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained herein. Factors that could cause or contribute to differences between the actual results, performance and achievements of Acacia include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation or regulation in countries in which Acacia conducts - or may in the future conduct - business, industry trends, competition, fluctuations in the spot and forward price

  • f gold or certain other commodity prices (such as copper and diesel), currency

fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate acquisitions, Acacia’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to process its mineral reserves successfully and in a timely manner, Acacia’s ability to complete land acquisitions required to support its mining activities, operational or technical difficulties which may occur in the context of mining activities, delays and technical challenges associated with the completion of projects, risk of trespass, theft and vandalism, changes in Acacia’s business strategy and ongoing implementation of operational reviews, as well as risks and hazards associated with the business of mineral exploration, development, mining and production and risks and factors affecting the gold mining industry in general. Although Acacia’s management believes that the expectations reflected in such forward-looking statements are reasonable, Acacia cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward- looking statements in this presentation, whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast or estimate and no statement made should be interpreted to mean that Acacia’s profits or earnings per share for any future period will necessarily match or exceed its historical published profits or earnings per share. Mineral reserves and mineral resources estimates contained in this presentation have been calculated as at 31 December 2014 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed for mineral reserves and resources. The reserves and resources figures stated are

  • estimates. No assurances whatsoever can be given that the indicated quantities of

metal will be produced and totals stated may not add up due to rounding. You are reminded that you have received this presentation on the basis that you are a person to whom this presentation may be lawfully made and delivered. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole

  • r in part, by any medium or in any form, in breach of any applicable securities
  • laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND

AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS.

2 July 2015 Interim Results Presentation

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Overview

July 2015 Interim Results Presentation 3

Producing mines Exploration properties Tintinba Project - Mali West Kenya JV Kenya Bulyanhulu Tanzania

High quality asset base

1

Becoming a low cost producer

2

Committed to exploration

5

Generating free cash flow

3

Disciplined capital allocation

4

Hounde Belt JVs Burkina Faso Buzwagi Tanzania North Mara Tanzania

Creating a leading company in Africa

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HY 2015 - Highlights

4

Laying the foundations for the future

  • H1 production of 367koz, 6% higher than H1 2014, with gold sales of 356koz

Q2 production of 186koz driven by 13% increase at Bulyanhulu to 71koz

  • H1 AISC of US$1,133/oz, and cash costs of US$780, respectively 1% and 4% higher

than H1 2014

Reflects investment into Bulyanhulu and North Mara

  • First pillar in Bulyanhulu step up in production achieved – CIL delivering ounces
  • Commenced production from Gokona Underground in Q2 2015, ahead of schedule
  • Cash position increased during Q2 2015 to US$287 million as at 30 June 2015

Post payment of US$12m 2014 final dividend

  • Declared interim dividend of 1.4 cents per share, in line with 2014
  • Expanded exploration portfolio in West Africa – entering Mali for first time

Interim Results Presentation July 2015

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SLIDE 5

Outlook

626 642 719 750-800 760 500 550 600 650 700 750 800 2012 2013 2014 2015E 2015-19E Avg

Production (koz)

171 112 61 85 65 113 171 132 125 100 47 117 61 5 100 200 300 400 2012 2013 2014 2015E 2015-19E Avg

Capital Expenditure (US$ Million)1

Expansion Cap Dev't Sustaining 5

EUS/$ million 1,561 1,346 1,105 1,050- 1,100 910 500 700 900 1,100 1,300 1,500 2012 2013 2014 2015E 2015-19E Avg

AISC per ounce sold (US$/oz)

941 827 732 695-725 660 500 600 700 800 900 2012 2013 2014 2015E 2015-19E Avg

Cash cost per ounce sold (US$/oz)

1 Sustaining capital guidance for 2015 includes US$15 million of land purchases which is not included in historic numbers as treated as a pre-payment for accounting purposes

Full year guidance maintained – with disciplined spend reducing capex

Interim Results Presentation July 2015

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Operations Review

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Operational highlights

1 Non-IFRS financial performance measures with no standard meaning under IFRS. Refer to ”Non IFRS measures”’ on page 22 of Interim results for definitions. 2 Cash cost per tonne milled excluding the reprocessing of tailings at Bulyanhulu amounted to US$67 for the six ended 30 June 2015. *Reported process recovery rates and head grade include tailings retreatment at Bulyanhulu. Excluding the impact of the tailings retreatment half year 2015 process recovery and head grade would be 89.4% and 3.1g/t respectively

July 2015 Interim Results Presentation 7

Operational Performance H1 2015 H1 2014 % change Tonnes mined (thousands of tonnes) 20,475 19,892 3% Ore tonnes mined (thousands of tonnes) 4,905 3,908 26% Ore tonnes processed (thousands of tonnes) 4,559 3,770 21% Process recovery rate (percent) 1* 88.0% 89.5% (2%) Head grade (grams per tonne)* 2.8 3.2 (13%) Gold production (ounces) 367,301 346,581 6% Gold sold (ounces)1 355,470 330,947 7% Cash cost per tonne milled1,2 (US$) 61 66 (8%) Per ounce data (US$) Average spot gold price1 1,206 1,291 (7%) Average realised gold price1 1,200 1,290 (7%) Total cash cost1 780 752 4% All-in sustaining cost1 1,133 1,118 1%

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Bulyanhulu - Half year review

8 Interim Results Presentation July 2015

H1 2015 H1 2014 Operational information: Ounces produced Koz 133.1 105.4 Ounces sold Koz 122.0 101.2 Cash cost US$/oz 871 868 AISC US$/oz 1,356 1,249 ROM Processing information: Ore milled Kt 479 428 Head grade g/t 8.7 8.4 Mill recovery % 88.7% 91.6% Ounces produced Koz 118.4 105.1 Tailings Reclaim information: Ore milled Kt 580 7 Head grade g/t 1.2 1.2 Mill recovery % 64.5% na Ounces produced Koz 14.8 0.3

Quarter on quarter progress – on track to hit year end run rates

  • Q2 15 saw 17% increase in production over

Q1 15

 Led to 12% reduction in AISC

  • Investment programmes into U/G

development and maintenance ongoing

  • Step up in production comprises three

elements:

 Tailings reclaim  Mining at reserve grade  Increased ore tonnes

  • Tailings reclaim contributed fully in Q2
  • Upper East and grade step up due in H2
  • On track to hit planned year end run rates

for both production and cost in Q4

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Bulyanhulu - Delivering on the plan

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50 100 150 200 250 300 350 400

2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Annualised koz

Route to 350kozpa – Annualised production

2013 Base Tailings reclaim Grade & Tonnage Improvement

Route to 350koz consists of three elements with contributions from each starting as we move through 2015

July 2015 Interim Results Presentation

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Bulyanhulu - KPIs Continuing to Improve

Continue to drive productivity and reduced dilution

50 100 150 200 250 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015

Metres Average Monthly Development Metres per Double Boom Jumbo

July 2015 Interim Results Presentation 10

2.0 2.5 3.0 3.5 4.0 4.5 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015

  • Avg. stope width (m)

Average Long hole Stoping Width

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Bulyanhulu – Increased employee productivity

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Continuing to implement changes to the workforce to improve productivity

2,397 2,225 1,843 1,598 1,450 1,350 159 151 111 99 94 80

500 1,000 1,500 2,000 2,500 3,000 2012 2013 2014 2015 Current 2015 Dec 2016

  • No. of Employees

Breakdown of Workforce Internationals Nationals

July 2015 Interim Results Presentation

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North Mara - Half year review

July 2015 Interim Results Presentation 12

H1 2015 H1 2014 Operational information: Ounces produced Koz 142.1 138.8 Ounces sold Koz 142.0 137.3 Cash cost US$/oz 583 584 AISC US$/oz 893 936 Processing information: Ore milled Kt 1,412 1,365 Head grade g/t 3.6 3.6 Mill recovery % 87.3% 87.3%

Driving group free cash flow generation

  • Strong H1 performance with AISC down

by 5%, driven by increased throughput

  • Delivered first Gokona U/G stoping ore

in June 2015, ahead of schedule

 Development ore still formed bulk of U/G ore

process during H1

  • Mill feed now predominantly from

Nyabirama open pit

  • Social situation continues to improve

 Won President’s Award for Best CSR in

Tanzania (Extractives)

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Buzwagi – Half year review

13 Interim Results Presentation July 2015

H1 2015 H1 2014 Operational information: Ounces produced Koz 92.0 102.3 Ounces sold Koz 91.5 92.4 Cash cost US$/oz 965 879 AISC US$/oz 1,089 1,169 Processing information: Ore milled Kt 2,087 1,980 Head grade g/t 1.5 1.8 Mill recovery % 93.9% 90.3%

Continue to optimise to drive cashflow

  • H1 in line with expectations
  • Improved mill performance (throughput

& recoveries) driving production

  • AISC down 7% against H1 2014 in spite of

the lower production base

 Lower capitalisation of mining costs as

planned, impacted cash costs

  • Increased reliance on self generated

power in H1 15

 Targeting improvement in H2

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Financial Review

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Financial highlights

1 Non-IFRS financial performance measures with no standard meaning under IFRS. Refer to ”Non IFRS measures”’ on page 22 of interim results for definitions.

2 Excludes non-cash reclamation asset adjustments and includes finance lease purchases.

.

July 2015 Interim Results Presentation 15

Financial Performance H1 2015 H1 2014 % change Revenue US$m 446,781 445,509 0% EBITDA1 US$m 96,888 131,621 (26%) Net earnings / (loss) US$m 14,765 40,822 (64%) Basic earnings / (loss) per share (EPS) US cents 3.6 10.0 (64%) Dividend per share (cents) US$m 1.4 1.4 0% Cash and cash equivalents US$m 286,932 269,596 6% Cash generated from operating activities US$m 107,093 127,107 (16%) Operating cash flow per share1 US cents 26.1 30.1 (13%) Capital expenditure2 US$m 83,057 114,744 (28%) Long term debt (Borrowings) US$m 142,000 142,000 0%

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Strong balance sheet maintained

1,10 0 to 1,175

July 2015 Interim Results Presentation 16

North Mara and Buzwagi have driven cash generation YTD

294 20 6 308 9 12 287 270 275 280 285 290 295 300 305 310 315 320

Cash at Dec 2014 Operating Mines Working capital investment and other Cash post sustaining spend Exploration Dividends paid Cash at Jun 2015

$ millions

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Investment in operations impacting AISC

1,10 0 to 1,175

July 2015 Interim Results Presentation 17

1,118 28 13 44 18 1,133

1,000 1,020 1,040 1,060 1,080 1,100 1,120 1,140 1,160 1,180 H1 2014 AISC Cash costs Sustaining Capital Capitalised Strip Central costs &

  • ther

H1 2015 AISC US$/oz

All-in Sustaining Cost Bridge (US$/oz)

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EBITDA H1 15 vs H1 14

1,10 0 to 1,175

July 2015 Interim Results Presentation 18

132 32 32 7 21 8 7 3 6 97

70 80 90 100 110 120 130 140 150 160 170

H1 2014 EBITDA Volume Price Direct operating costs Capitalised costs Central costs & share based payments FX losses Unrealised hedge gains Exploration and

  • ther

H1 2015 EBITDA

EBITDA bridge (US$m)

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EPS impact of non cash items

July 2015 Interim Results Presentation 19

Operational Optimisation

19

Earnings impacted by currency, oil hedges and share based incentives

Representative Adjusted Earnings US$m EPS (c) Current net earnings 14.8 3.6 FX adjustment – net 10.6 2.6 Unrealised hedge gains (5.6) (1.4) RSU charges 5.0 1.2 Adjusted EPS 24.8 6.0

  • Tanzanian shilling weakened by 17% over the period, impacting period end

re-valuation of outstanding indirect tax receivables, held in TSH

  • Strong share price performance led to increase in valuation of share based

incentives

 Post period end, charges have largely reversed

  • Unrealised hedge gains on oil hedges provided US$5.6m

 Offset by realised losses on hedges of US$4.7m taken through cash costs

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Exploration

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Committed to Exploration

July 2015 Interim Results Presentation 21

Tintinba Project Mali

  • 150sq km along highly

prospective Senegal-Mali Shear Zone

  • Expect to start soil sampling

and IP in October

  • Initial drilling of targets

planned for Q2 2016 West Kenya JV Kenya

  • 2,200 sqkm - Liranda

corridor showing best results to date

  • Several narrow high grade

vein systems identified

  • Current drilling to scope

potential size of system Bulyanhulu Tanzania

  • U/G Reef 2 drilling

programme - target of 5Moz

 12,500m of drilling in H2

  • Near mine programme for

repeat reefs

 Tested Safari zone in H1,

results awaited Houndé Belt JVs Burkina Faso

  • 3 exploration joint ventures

covering 2,400sqkm of the Houndé Belt

  • Positive initial drilling on

South Houndé JV

  • New gold trends identified

from initial soil sampling on new projects

Continuing to expand our footprint across Africa

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Investment Case

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Delivery to date

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Continuing track record of delivery against plan

Interim Results Presentation July 2015

Key Deliverables Achieved When First production from CIL Expansion (Tailings reclaim)

Q3 14 Board approval of Gokona Underground

Q3 14 Expanded exploration footprint into Burkina Faso

Q3 14 Group free cash generation

Q3 14 Improved plant recoveries at Buzwagi

Q3 14 Achievement of US$185 million of cost savings

Q4 14 Acceleration of development at Bulyanhulu

Q4 14 Gokona Underground Permits granted

Q2 15 Gokona Underground First Stoping Ore

Q2 15 Tailings Reclaim operating at nameplate

Q2 15 Expanded exploration footprint into Mali

Q2 15 First stoping ore from Upper East Zone at Bulyanhulu Q3 15

  • Continued improvement in grade at Bulyanhulu

Q3 15

  • Target development rates achieved at Bulyanhulu

Q3 15

  • Gokona Underground fully ramped up

Q4 15

  • Bulyanhulu producing at annualised rate of 350koz

Q4 15

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Our investment case

24

Delivery of plan will drive cash flow at and below current gold prices

  • Structural changes already made to our operations
  • Established track record of delivering on plan to enhance the long-term

attractiveness of our business

  • Bulyanhulu staged ramp up on track for Q4 2015
  • Set to generate strong cashflows at and below the current gold price
  • Redoubling our focus on driving costs out of the business
  • Current plan designed to drive returns to our shareholders without having to

make short term changes to our business

Interim Results Presentation July 2015

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Appendix

Operating Metrics Exploration & Development Reserves & Resources

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Bulyanhulu* North Mara Buzwagi Group** Q2 15 Q2 14 Q2 15 Q2 14 Q2 15 Q2 14 Q2 15 Q2 14 Key operational information: Ounces produced

  • z

71,423 50,241 66,532 70,177 47,687 57,787 185,641 178,206 Ounces sold

  • z

67,490 52,044 66,470 70,040 50,093 49,479 184,055 171,563 Cash cost per ounce sold US$/oz 830 919 605 561 933 837 777 749 AISC per ounce sold US$/oz 1,278 1,348 968 893 1,065 1,078 1,149 1,105 Copper production Klbs 1,489 1,135

  • 2,503

2,318 3,993 3,454 Copper sold Klbs 1,377 1,153

  • 2,624

1,721 4,001 2,874 Mining information: Tonnes mined Kt

  • 3,364

4,335 6,682 5,803 10,322 10,355 Ore tonnes mined / hoisted Kt 222 217 733 / 55 566 1,333 1,333 2,398 2,115 Processing information: Ore milled Kt 229 205 721 710 1,125 1,010 2,484 1,925 Head grade g/t 9.0 8.3 3.3 3.5 1.4 1.9 88.1% 89.8% Mill recovery % 90.3% 91.5% 86.8% 86.9% 93.8% 91.9% 2.6 3.2 Cash cost per tonne milled US$/t 244 233 56 55 42 41 58 67

Q2 2015 Operating Metrics

Interim Results Presentation 26 July 2015 * Bulyanhulu mining and processing information represent ROM only – Tailings reprocessing statistics are as follows: Q215 – Ore Milled 407Kt @ 1.2g/t, recoveries of 67.8% for 11,291 ounces recovered. Q2 14 – 273 ounces produced in circuit ** Group figures for ore milled, head grade and mill recovery include reclaimed tailings in processing information

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Bulyanhulu* North Mara Buzwagi Group** H1 15 H1 14 H1 15 H1 14 H1 15 H1 14 H1 15 H1 14 Key operational information: Ounces produced

  • z

133,141 105,420 142,146 138,816 92,015 102,344 367,301 346,581 Ounces sold

  • z

121,976 101,165 142,005 137,340 91,488 92,442 355,470 330,947 Cash cost per ounce sold US$/oz 871 867 583 584 965 879 780 752 AISC per ounce sold US$/oz 1,356 1,249 893 936 1,089 1,169 1,133 1,118 Copper production Klbs 3,069 2,431

  • 4,423

3,999 7,492 6,430 Copper sold Klbs 2,538 2,347

  • 4,290

3,044 6,828 5,391 Mining information: Tonnes mined Mt

  • 7.1

8.1 12.9 11.3 20.5 19.9 Ore tonnes mined / hoisted Mt 0.46 0.43 1.6 / 0.06 1.1 2.7 2.4 4.9 3.9 Processing information: Ore milled Kt 479 425 1,412 1,365 2,087 1,980 4,559 3,770 Head grade g/t 8.7 8.4 3.6 3.6 1.5 1.8 88.0% 89.5% Mill recovery % 88.7% 91.6% 87.3% 87.3% 93.9% 90.3% 2.8 3.2 Cash cost per tonne milled US$/t 222 206 59 59 42 41 61 66

HY 2015 Operating Metrics

Interim Results Presentation 27 July 2015 * Bulyanhulu mining and processing information represent ROM only – Tailings reprocessing statistics are as follows: H1 15 – Ore Milled 580Kt @ 1.2g/t, recoveries of 64.5% for 14,775 ounces recovered. H1 14 – 273 ounces produced in circuit ** Group figures include reclaimed tailings in processing information

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Appendix

Operating Metrics Exploration & Development Reserves & Resources

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Kenya – West Kenya JV

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  • Liranda Corridor showing best results to date from drilling results along 12km trend
  • To date narrow high grade vein systems identified – current drilling to determine if potential for

sufficient scale on several of the better shoots

  • 2015 Budget – US$8 million

July 2015 Interim Results Presentation

Promising drill results on Liranda Corridor – follow-up drill programmes underway

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Burkina Faso – Houndé Belt

Multiple structural domains with extensive surface gold anomalies

Company Presentation June 2015 30

  • 3 projects now acquired under

joint venture for 2,400sqkm in southern Houndé Belt

  • Drilling on South Hounde JV

encouraging – extensions to exiting trends and new prospects identified

  • Extensive soil sampling

programmes undertaken on all 3 joint venture projects to identify further drill targets

  • 2015 Budget – US$5.5 million
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SLIDE 31

Mali – Tintinba Project

31

  • 150 sq km acquired under option

agreement on the highly prospective Senegal-Mali Shear Zone (host to >50Moz)

  • Recent discoveries Fekola 5Moz @ 3g/t

and Gounkoto 5Moz @ 5g/t

  • Option agreement signed with local

vendor to earn initially 85.5% and ultimately 90% of three properties

  • Limited upfront payment and NSR

capped at US$2m on production

  • Preliminary reconnaissance work started

in late June

  • Expect to start soil sampling, IP and

aeromagnetics programmes after wet season in October 2015

  • Initial drilling of targets by Q2 2016

July 2015 Interim Results Presentation

Entry into the Senegal-Mali Shear Zone

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Bulyanhulu – Reef 1 & 2

July 2015 Interim Results Presentation 32

Reef 1 Reef 2

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SLIDE 33

Further underground potential at Gokona

Interim Results Presentation July 2015

Delineated a further 850koz at 4.4g/t in inferred resource beneath 990 mrl, to be tested by staged drilling from underground platforms

33

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SLIDE 34

July 2015 Interim Results Presentation 34

Drilling programme being planned to test underground potential

Assessing the potential at Nyabirama

Stage 3 pit outline Stage 4 pit outline Current pit outline Stage 1 programme to test U/G potential Stage 2 programme to test U/G potential

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SLIDE 35

Appendix

Operating Metrics Exploration & Development Reserves & Resources

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SLIDE 36

Reserves and Resources

Reserves and Resources estimates calculated in accordance with NI43-101 – 2013 Reserves calculated at US$1,300/oz and Resources at US$1,500/oz July 2015 Interim Results Presentation 36

2014 YE 2013 YE Tonnes (000's) Grade Au (g/t) Ounce (000's) Tonnes (000's) Grade Au (g/t) Ounce (000's) Bulyanhulu Proven and probable (U/G) 29,681 9.667 9,225 29,610 9.530 9,072 Proven and probable (Tailings) 9,082 1.046 305 7,974 1.229 315 Mineral Resource (U/G) 12,399 8.491 3,385 10,225 10.653 3,502 Inferred (U/G) 13,725 9.897 4,367 6,632 12.877 2,745 Buzwagi Proven and probable 20,762 1.345 898 24,105 1.445 1,120 Mineral Resource 48,333 1.298 2,017 49,109 1.291 2,038 Inferred 4,623 1.237 184 7,173 1.183 273 North Mara Proven and probable 23,653 2.692 2,047 21,710 3.169 2,212 Mineral Resource 17,960 2.873 1,659 25,266 3.316 2,694 Inferred 10,073 3.236 1,048 735 2.730 65 Exploration Proven and probable

  • Mineral Resource

105,296 1.422 4,812 105,296 1.422 4,812 Inferred 4,456 1.352 194 4,456 1.352 194 Total* Proven and probable 83,178 4.665 14,475 83,399 4.743 12,719 Mineral Resource 183,988 2.007 11,873 189,895 2.137 13,046 Inferred 32,877 5.481 5,793 18,995 5.365 3,276