Acacia Mining plc 2018 Preliminary Results Presentation February - - PowerPoint PPT Presentation

Acacia Mining plc

2018 Preliminary Results Presentation February 2019

LSE:ACA

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 on-going 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. Save as required under the Market Abuse Regulation or otherwise as may be required under 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. Any mineral reserves and mineral resources estimates contained in this presentation have been calculated as at 31 December 2018 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 estimates. Any reserves and resources figures stated in this presentation are estimates only. All estimates stated are subject to a variety of unknown factors, risks and considerations, such that no assurances whatsoever can be given that any indicated quantities of metal will be produced. In addition, estimated figures and totals stated may not add up due to rounding. This presentation is provided for general information purposes only. It does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire

• r dispose of any securities of Acacia in any jurisdiction. 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 or 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.

2018 Preliminary Results Presentation February 2019 2

Full Year Review

Strong operational performance following stabilisation of the business

• 2018 gold production of 522koz, substantially ahead of initial 2018 guidance range of 435-

475koz



Higher grade ore from Nyabirama open pit at North Mara



Favourable performances at Buzwagi and Bulyanhulu

• 2018 AISC of US$905/oz sold, well below 2018 guidance range of US$935-US$985/oz



Driven by higher production base, lower capital allocation and strong cost discipline

• Return to free cash flow generation in Q2 2018, sustained throughout rest of year



Net cash balance rose US$78 million during 2018 to US$88 million

• Highly encouraging provisional outcomes of the Bulyanhulu optimisation study

 Assumes a resolution of disputes with GoT and resumption of concentrate sales  Supports an expected 18 year life of mine  Opportunity to achieve an average steady state production rate of 300koz-350koz per year at an AISC of

US$700 to US$750/oz

February 2019 2018 Preliminary Results Presentation 3

Update on Tanzania

Update on Tanzania

Discussions between Barrick Gold Corporation and the Government of Tanzania (“GoT”) continued during 2018

• Barrick and the GoT continued their discussions aimed at agreeing and documenting the details of the

framework they announced in October 2017

• Acacia has been providing support to Barrick in its discussions with the GoT, but has not been directly

involved in those discussions to date

• On 24 September 2018 Barrick and Randgold Resources (“Randgold”) announced their intention to

merge and, following successful shareholder votes, the merger completed on 2 January 2019

• Acacia has not yet received a detailed proposal agreed in principle between Barrick and the GoT for a

comprehensive resolution of Acacia’s disputes with the GoT

• Acacia is engaging with Barrick to understand Barrick’s plans for the next steps in its direct discussions

with the GoT

• International arbitration is underway to protect the businesses and continue to be progressed. The GoT is

engaging in the process and filed its defence in October 2018

• In Q4 2018, operating environment became increasingly challenging with criminal charges by the GoT

against three local companies and three current Acacia employees and a former employee, three of whom are still being held under non-bailable offences

• The allegations and charges are denied and being defended

5 2018 Preliminary Results Presentation February 2019

Major Contributor to Tanzania

Over 15 yrs Acacia has invested >US$4bn and paid >US$1.3 bn in taxes

• In 2018 we paid US$127 million of taxes and royalties

to Tanzania

 Includes corporate taxes of US$42 million  Royalties of US$51 million  Payroll and other taxes of US$34 million

• Independent EY report

 Acacia contributed US$712 million to the national economy

in 2017

6

• Tanzanian localisation strategy

 In 2018 spent over US$273 million with local suppliers  Spending with Tanzanian-owned businesses set to rise to

US$140 million by early 2019

 97% of our employees are Tanzanian Nationals, 85% fall in

number of international employees in past 5 years

 70% of our management positions are held by Tanzanians  Transitioning key business support functions to Tanzania by

mid-2019

• 1. Includes royalties, corporate tax, payroll tax, withholding tax, import duties, and fuel and local levies

2018 Preliminary Results Presentation February 2019

44 63 70 92 122 114 117 111 168 143 127 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Last 11 Years Annual Tax Contributions to Tanzania (US$m)(1)

Strategic Investment in our Communities

7

• Bulyanhulu

 US$1 million investment in Bugarama Health Centre to provide

healthcare for 100,000 community members.

 Investing US$2 million in the construction of a 55-kilometre pipeline

to carry water from Lake Victoria to 100,000 local residents.

• North Mara

 Upgrade to the Nyamwaga Health Centre completed in April at a cost

• f over US$1 million and serving 350,000 people

 Annual eye screening initiative benefiting over 3,000 patients  Breast and cervical cancer awareness and testing for 1,200 women, in

partnership with Medical Women Association of Tanzania

• Buzwagi

 Agricultural Improvement Programme at Buzwagi: Investment of

US$1.1 million over three years in support of over 3,000 farmers.

Our Sustainable Communities projects positively impacted over 150,000 people in 2018 and we have contributed US$92m since 2010

2018 Preliminary Results Presentation February 2019

Operations Review

Consolidated 2018 Performance

• 522koz of gold production

 32% lower than 2017 due to transition to reduced

• perations at Bulyanhulu and stockpile processing

at Buzwagi

• Continued strong cost performance, with

AISC of US$905/oz and cash costs of US$680/oz

 2018 AISC well below guidance of US$935-985/oz  Improved AISC through the year to US$857/oz in

Q4 2018

 2018 cash costs also below guidance of US$690-

720/oz

 Driven by higher production while AISC further

assisted by lower capex and strong cost discipline

Strong operational performance across all three mines

2018 Preliminary Results Presentation February 2019 9 800

80 82 126 143 73 72 175 204 180 144 163 173 157 132 123 53 19 22 50 100 150 200 250 300 350 400 450 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 Production (koz)

Production

Buzwagi North Mara Bulyanhulu 1,133 1,091 941 975 893 855 945 869 200 400 600 800 1,000 1,200 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 $ / ounce

All In Sustaining Cost per Ounce

North Mara

Continuing strong performance and primary driver of free cash flow

2018 Preliminary Results Presentation February 2019 10

• TRIFR of 0.25 in 2018, 11% improvement on

2017

• Produced 336koz, 4% higher than 2017

 Driven by 3% higher grade ore from the Nyabirama

• pen pit and improved plant recovery rates

 UG ore tonnes were 20% higher than 2017 due to

increased availability of developed mining areas

• AISC of US$866/oz, 8% higher than in 2017

 Due to higher maintenance costs and replacement of

• lder equipment in H2 2018
• Expect 2019 production to be +10% ~ 370koz

and 2019 AISC -10% ~ US$790/oz sold

• Targeting production above 300koz for next

10 years

96 83 72 72 77 86 89 84 4.6 4.0 3.4 3.5 3.7 4.1 4.2 3.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 20 40 60 80 100 120 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Grade (g/t) Production (koz)

Production & Head Grade

Production (OP) Production (UG) Head Grade 410 476 550 587 607 570 572 617 717 758 864 903 950 861 814 851 200 400 600 800 1,000 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

Unlocking the potential of North Mara

2018 Preliminary Results Presentation February 2019 11

Continuing to extend high grade mineralisation in the Gokona Underground

Focus of Drilling – Gokona Underground – Deep East

• Initial drilling successful in

Deep East as part of framework drilling

 UGKD510 23.0m @ 110.2g/t Au  UGKD502 10.0m @ 14.1g/t Au

18.0m @ 17.9g/t Au

 UGKD546 18.0m @ 14.4g/t Au

• Early drilling in Far West

suggests potential for extension of lower grade West mineralisation (currently unclassified)

 UGKD551 24.0m @ 5.5g/t Au  UGKD553 13.0m @ 4.9g/t Au  UGKD554 17.0m @ 4.3g/t Au

–

Unclassified Mineralisation

• 2019 drilling to focus on infill of

Lower Central & East zones to test for additional economic material

• Build upon initial Deep East

framework drilling to deliver some higher grade material into Mineral Resource

• Initial testing of Far West

potential

• 39,000 metres of Extensional

and Infill drilling planned in 2019

Gokona U/G – Significant Extension Potential

Legend:

Measured Resources Indicated Resources Inferred Resources

12 2018 Preliminary Results Presentation February 2019

Buzwagi

Generating strong cash flow

2018 Preliminary Results Presentation February 2019 13

• Improved safety performance with TRIFR

0.16, 50% down on 2017

• Production of 145koz was ahead of

expectations due to:

 Extended mining of final cut at bottom of the pit  Improved throughput and recoveries

• AISC of US$977/oz sold was 46% higher than

2017

 Includes a historical non-cash stockpile movement of

US$167/oz

• Expected 2019 production of ~115koz at an

AISC of ~US$1,140/oz sold

 AISC includes historical non-cash stockpile

movement of ~US$285/oz

60 66 69 74 36 37 36 36 1.8 1.9 2.2 2.4 1.3 1.0 1.1 1.1

0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6

• 10

20 30 40 50 60 70 80 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Grade (g/t) Production (koz)

Production & Head Grade

Production Head Grade 694 705 564 535 964 964 950 755 773 762 695 583 1,052 1,025 1,018 828 200 400 600 800 1,000 1,200 1,400 1,600 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

Bulyanhulu

Tailings retreatment outperforming whilst U/G on reduced operations

2018 Preliminary Results Presentation February 2019 14

• Improved safety performance with zero Lost

Time Injuries and TRIFR of 0.10 (0.31 in 2017)

• Produced 40koz from reclaimed tailings

 77% lower than 2017 due to reduced operations

• AISC of US$786/oz sold, 43% lower than

2017

 Driven by reduced operating and capital spend,  Excludes ROP costs of US$28.8 million

• Expect 2019 production of 35koz from

reprocessed tailings at an AISC of US$790/oz sold

 Excludes 2019 annual reduced operations cost of

approximately US$22 million

AISC if sales = production

63 59 50 3 8 10 11 11 1.4 1.4 1.3 1.4 1.1 1.3 1.3 1.2 0.0 1.0 2.0 10 20 30 40 50 60 70 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Grade (g/t) Production (koz)

Production & Head Grade

Production (UG) Production (Tails) Head Grade (Tailings)

786 813 863 713 584 564 547 1,229 1,558 1,365 923 737 727 772 200 400 600 800 1,000 1,200 1,400 1,600 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 $ / ounce

All In Sustaining Cost per Ounce

Cash Cost Sustaining Capital Capitalised Development Other

Non-meaningful

Bulyanhulu Optimisation Study

2018 Preliminary Results Presentation February 2019 15

• Potential focus on higher

grade ore and higher margin ounces in the Deep West

• Underground Reserves of

2.6Moz at 10.70 g/t compared to 4.5Moz at 9.70 g/t (2017)

• M&I Resources of 2.1Moz at

8.36g/t compared to 4.2Moz at 9.04g/t (2017)

• Inferred Resources of

5.7Moz at 11.76g/t compared to 7.6Moz at 9.78g/t (2017)

• Lower development

requirements

• Costs in line with expected

reduction in mined tonnes

• Lower fixed cost base

Highly encouraging provisional outcomes - focus on mining in Deep West

Key metrics Life of mine Years 18 Pre-production capital US$m 90-110 Pre-production rehabilitation and development US$m 30 Net other pre-production cost US$m 20 Steady state production* Koz 300-350 Steady state AISC** US$/oz 700-750 Steady state plant throughput Kt/yr 1,000- 1,100 Pre-production period Months 12-18 Ramp up to steady state from first production Months 18-24

Numbers above exclude reduced operations costs, impact of tailings processing and stockpiled concentrate * Steady state production and AISC is after ramp up and ramp down ** Excludes pre-production capital and other costs

Bulyanhulu Estimated Mining Inventory

RED: Remnant CCF Mining LIGHT BLUE: REEF 1 UPPER WEST BLUE: REEF 1 DEEP WEST DARK GREEN: REEF 1 UPPER CENTRAL GREEN: REEF 1 DEEP CENTRAL PURPLE: REEF 2 Central YELLOW: REEF 1 UPPER EAST ORANGE: REEF 2 UPPER EAST

2018 Preliminary Results Presentation February 2019 16

*Based on provisional 2018 Resource Model, 2018 R&R and 2019 LOM – to be fully completed end Q1 2019

Financial Review

Financial Highlights

1 These are non-IFRS measures 2 EBITDA, adjusted EBITDA, net (loss)/earnings, (loss)/earnings per share, adjusted net earnings, adjusted earnings per share and cash generated from operating activities include continuing and discontinued operations in 2014 3 Excludes non-cash capital adjustments (reclamation asset adjustments) and includes finance lease purchases and land purchases recognised as long term prepayments.

Financial Performance FY 2018 FY 2017 % change

Revenue US$m 663.8 751.5 (12%) EBITDA1 US$m 225.9 257.2 (12%) Adjusted EBITDA1,2 US$m 183.4 310.5 (41%) Net earnings/ (loss) 2 US$m 58.9 (707.4) 108% Basic earnings/ (loss) per share (EPS) (cents)2 US cents 14.4 (172.5) 108% Adjusted net earnings1,2 US$m 44.3 146.2 (70%) Adjusted earnings per share (AEPS) (cents)1,2 US cents 10.8 35.7 (70%) Capital expenditure3 US$m 92.5 149.4 (38%) Net cash position US$m 87.6 9.5 nm Cash and cash equivalents US$m 130.2 80.5 62% Total borrowings US$m 42.6 71.0 (40%)

2018 Preliminary Results Presentation February 2019 18

Strong financial performance in a challenging operating environment

Increased margin expansion

19

Continuing to reduce our cost base

2018 Preliminary Results Presentation February 2019

715 688 670 651 665-710 976 918 880 857 860-920 200 400 600 800 1000 1200 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 Guidance US$/oz

AISC/oz sold

Cash Cost AISC

• Optimisation of maintenance

programmes

• Ongoing contract negotiations

with key suppliers

• Increasing proportion of

forward price agreements for mine supplies

• Continued disciplined capital

allocation

• Corporate overhead

reductions and review of mine site G&A

• Optimisation of exploration

spend to focus on key projects

Return to Positive Cash Flow Generation

1,10 0 to 1,175

2018 Preliminary Results Presentation February 2019 20

Discretionary spend / non-recurring spend 81 116 42 16 139 45 13 13 28 130 40 60 80 100 120 140 160 180 200 220

Cash at Dec 2017 Cash from ops, before w/c Corporate tax payments

• Invest. in

working capital Cash post Sust. Spend Proceeds sale of mineral royalty Exploration Expansion capital Borrowings repayment Cash at Dec 2018

US$ millions

Net Cash Flow Quarterly Trend 2018

10 45 5 14 11 13 88 10 20 30 40 50 60 70 80 90 100

US$M

21 2018 Preliminary Results Presentation February 2019

Discovery

A Pan African Portfolio

Mali

• 5 permits across 191 sq km

Senegal Mali Shear Zone

• SMSZ host to 50+Moz
• Over 25 targets identified
• 2019 budget - US$3 million

Kenya

• 1,587 sq km land package
• First mover advantage
• Declared 1.2Moz @ 12.6g/t

Inferred Resource in 2017

• Scoping study in progress
• Review of economics looking

at different mining methods to extract the resource Burkina Faso

• 3 JVs over 1800 sq km
• Houndé Belt host to 10Moz+
• Numerous targets across portfolio
• Agreement to divest South Houndé

JV to partner Sarama Resources for US$4m, 1-2% NSR and 5m warrants exercisable for 5 years (subject to final documentation)

• 2019 budget – US$5 million

Continuing to invest in future discoveries

23

Tanzania

• Exit of Nyanzaga Project for

US$10m and a US$15m capped royalty

• FCC approval for OreCorp to

increase interest to 51%

• Completion agreement for

OreCorp to move to 100%

• Awaiting final approvals

Proterozoic-Archean volcano-sedimentary belts

2018 Preliminary Results Presentation February 2019

Outlook

• Production guidance range of 500,000-550,000oz

 All gold produced in 2019 will be in saleable doré form  Assumes continuation of current operating environment with a 10% increase at North Mara to

~370koz

• FY 2019 AISC of US$860-US$920/oz and cash costs of US$665-710/oz
• FY 2019 capital expenditure of approximately US$75-85 million

 Capex at North Mara is expected to be notably lower than 2018  Capitalised development costs and sustaining capital (North Mara): US$65 million  Expansion capital at North Mara: US$15 million

• Highly encouraging Bulyanhulu Optimisation Study: scheduled completion end Q1 2019
• Continuing to invest in exploration across Africa

 Expansionary drilling at Gokona Underground  Focus on West Africa drilling

Our operations will continue to deliver in 2019 and beyond

2018 Preliminary Results Presentation February 2019 25

Outlook

• Production substantially ahead of our initial 2018 guidance

 Strong cost discipline helped us achieve all-in sustaining cost well below the full year guidance range  Assets expected to deliver strongly in 2019

• Business returned to free cash flow generation in Q2, a trend that was sustained through

to year-end

 Cash balance increased by US$50 million to US$130 million over the year

• Highly encouraged by provisional outcomes of Bulyanhulu optimisation study
• Priority for 2019 remains on optimising performance with emphasis on strong cost

discipline while supporting efforts towards a resolution of our disputes in Tanzania

Stabilised the business through strong operational performance across all three mines

2018 Preliminary Results Presentation February 2019 26

Conclusion

Appendix

Operating Metrics Exploration & Development

Bulyanhulu* North Mara Buzwagi Group** FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 Key operational information: Ounces produced

• z

40,485 175,491 336,055 323,607 145,440 268,785 521,980 767,883 Ounces sold

• z

41,555 107,855 332,195 324,455 146,630 160,552 520,380 592,861 Cash cost per ounce sold US$/oz 599 840 591 498 906 594 680 587 AISC per ounce sold US$/oz 786 1,373 866 803 977 667 905 875 Copper production klbs

• 3,906
• 8,991
• 12,897

Reduced operations costs US$m 28.8 24.8

• Underground:

Ore tonnes mined/hoisted kt

• 562

782 654

• 782

1,216 Waste tonnes mined kt

• 368

417 430

• 417

798 Open Pit: Ore Tonnes mined kt

• 2,875

3,147 391 9,309 3,267 12,457 Waste mined kt

• 12,861

12,151 86 6,058 12,947 18,209 Processing information: Ore milled kt 1,899 1,622 2,847 2,841 4,526 4,256 9,272 8,719 Head grade g/t 1.2 4.15 4.0 3.9 1.1 2.1 2.0 3.04 Mill recovery % 53.6% 81.1% 92.7% 92.0% 89.4% 94.3% 86.9% 90.0%

2018 Operating Metrics

• Bulyanhulu processing information represent ROM and Tailings for 2017 –FY 17 Tailings were: Ore Milled 1.0Mt @ 1.4g/t, recoveries of

48.0% for 22,212 ounces recovered

• ** Group figures for ore milled, head grade and mill recovery include reclaimed tailings in processing information, Group figures for ore

mined exclude TSF material February 2019 2018 Preliminary Results Presentation 28

Appendix

Operating Metrics Exploration & Development

West Kenya Project

Highly prospective 1,587 square kilometre license package

30

Licence area split into 4 main exploration camps: Kakamega Camp

• Focus of majority of exploration to date
• Host to the high grade Liranda Corridor

Project

Wagusu, Yala and Barkalare Camps

• Several high potential targets identified,

some of them associated with colonial workings

• Encouraging grade intersected at Ramba

Lumba (Yala Camp) and Ramula (Barkalare Camp)

2018 Preliminary Results Presentation February 2019

Kakamega Dome Camp - Liranda Corridor

31

• Discovery of an initial Inferred Resource of 1.3Moz at 12.1 g/t announced in February

2017

 Entire resource based on the Isulu Shoot

• Further drilling increased confidence but led to a marginal decrease in ounces and

increase in grade to 1.2Moz @ 12.6 g/t, announced in February 2018

 Brought in additional ounces from the Bushiangala deposit, along strike from Isulu

• Scoping study completed in September 2018
• Can potentially improve with further drilling and opportunity exists for using

conventional mining methods, typically used in „small scale‟ mines

 Looking at different options and exploring the possibility of bringing in a partner with

conventional mining expertise to take the project forward

Tonnes Grade (Au g/t) Ounces Isulu Inferred Resource 2,500,000 12.9 1.004 Moz Bushiangala Inferred Resource 374,600 10.5 126,000

2018 Preliminary Results Presentation February 2019

Lake Zone - Ramba Lumba Target

32

Potential high grade continuation of a colonial mine

• Ramba-Lumba target is characterised by

multiple parallel and anastomosing shear structures and quartz veins mapped in a >3km long and up to 600m wide corridor

 The shallow parts of the mineralised shears

were partially mined in the 1980-1990s

• Four, widely spaced, DD holes, totaling

1604 metres, were drilled into the target.

• All holes intercepted strong alteration,

sheared and mineralised structures and quartz veining.

• Significant intersections include:

 LZD0002: 1.5m @ 4.34 g/t Au from 105m,

2.0m @ 30.7 g/t Au from 109m incl.

 LZD0004: 1.0m @ 1.10 g/t Au from 129m;

1.6m @ 6.37 g/t Au from 225m

 LZD0006: 0.5m @ 2.65 g/t Au from 328m;

1.0m @ 3.30 g/t Au from 368m

 LZD0007: 2.1 m @ 4.81 g/t Au

2018 Preliminary Results Presentation February 2019

• Earning between 70-100% equity through in-

ground exploration spend on a large and under- explored land package

• 2018 Activities:

 Consolidation and interpretation of multi element soil

geochem data.

 Field follow up of identified anomalies. Detailed

regolith studies and alteration studies

 Extensive untested gold-soil anomalies across Frontier

JV project on regional soil sampling traverses associated with lithostructual targets

• Q4 2018 priorities included:

 AC/RC drilling on Pinarello and Central Hounde JVs

for new discovery(s)

 Significant results include 2m @ 10.5 g/t Au from 42 m

and 5m @ 2.4 g/t Au from 32 m

• 2019 priorities include drilling of the Central

Houndé JV where we believe we have the best potential to deliver a mine

Burkina Faso – Houndé Belt

Three joint venture projects covering ~1,800sqkm of the Houndé Belt across 125km of favourable geology & structure

33 2018 Preliminary Results Presentation February 2019

Mali

Excellent ground position on Senegal-Mali Shear Zone (SMSZ) with regional scale gold anomalies & early positive indications from drilling

• Known gold prospects, artisanal sites, and large

regional gold anomalies along SMSZ

• Hold five exploration permits covering 191 km2
• 2018 activities:

 Consolidating available data and, where required,

collecting additional information to improve our understanding of the target areas.

 Multi element soil data interpretations, infill soil

sampling, structural mapping and limited AC drill testing of targets

 Significant results include 4m @ 6.92g/t Au and 2m @

9.04g/t Au

 Sampling, multi element analysis and mapping is

• ngoing

Focus in 2019 on infill soil sampling and an IP

survey on Gourbassi Est.

 Drilling planned for late Q2 2019

34 2018 Preliminary Results Presentation February 2019

Appendix

Reserves and Resources

February 2019 36

Acacia 2018 Reserves & Resources

2018 Preliminary Results Presentation

Decrease driven by changes at Bulyanhulu

YELLOW: REEF 1 UPPER EAST 458koz @ 7.41g/t 6% of reserve PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve

Summary Reserves and Resources1 (31 Dec 2018)

Ore Grade Au Contained Au (Mt) (g/t) (Moz) Acacia R&R (Oper. Mines) Proven 4.7 7.79 1.19 Probable 42.5 2.95 4.04 Reserves 47.2 3.44 5.23 Measured 2.5 4.81 0.39 Indicated 22.7 4.03 2.94 M&I Resource 25.2 4.11 3.33 Inferred 69.4 3.41 7.60 Acacia Exploration Resource Measured 3.9 4.96 0.63 Indicated 13.7 3.80 1.68 M&I Resource 17.6 4.06 2.31 Inferred 26.9 2.92 2.52

• 1. Resources are exclusive of reserves
• In 2018 605koz were depleted from the
• perating mines
• Mineral Reserves decreased from 7.45Moz at

3.83g/t to 5.23Moz at 3.44g/t

 Primarily driven by the Mineral Resource Model

classification changes at Bulyanahulu

 Partly offset by improved reconciliation at North

Mara

• M&I Resources decreased from 7.23Moz at

4.92g/t to 5.64Moz at 4.09g/t

 Also driven by change in MRM classification changes

at Bulyanhulu

• Inferred Resources decreased from 12.20Moz

at 3.53g/t to 10.13Moz at 3.27g/t

 Majority of change caused by MRM classification

changes at Bulyanhulu

7,448 5,225 605 2,232 203 252 48 111

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000

End 2017 Depletion Bulyanhulu Classification Change Model Changes Model - Mill Recon Operational Adjustments Stockpile Adjustments End 2018

Ounces (koz)

Acacia Reserves (Operating Mines)

February 2019 37

North Mara 2018 Reserves & Resources

2018 Preliminary Results Presentation

Similar Reserves to 2017

YELLOW: REEF 1 UPPER EAST 458koz @ 7.41g/t 6% of reserve PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve

Summary Reserves and Resources1 (31 Dec 2018)

Ore Grade Au Contained Au (Mt) (g/t) (Moz) Surface and Stockpiles Proven 0.9 2.43 0.07 Probable 19.2 1.62 1.00 Reserves 20.1 1.66 1.07 Measured 1.8 2.22 0.13 Indicated 5.6 1.70 0.30 Inferred 0.5 1.27 0.02 Total R&R 28.0 1.69 1.52 Underground Proven 1.4 5.86 0.26 Probable 4.8 5.55 0.85 Reserves 6.2 5.62 1.11 Measured 0.1 3.43 0.02 Indicated 5.2 3.55 0.59 Inferred 4.0 5.27 0.68 Total U/G R&R 15.5 4.82 2.40

Total Mine R&R

43.5 2.81 3.92

• 1. Resources are exclusive of reserves
• In 2018 367koz were depleted from North Mara
• Mineral Reserves decreased from 2.33Moz at

2.74g/t to 2.18Moz at 2.59g/t

 As Nyabirama progressed into the cut 4 phase there was

significant improvement to reconciliation to the planned

• production. This change in reconciliation largely offset

the depletion.

• M&I Resources decreased slightly from 1.08Moz at

2.75g/t to 1.04Moz at 2.54g/t

• Inferred Resources decreased from 0.86Moz at

4.14g/t to 0.69Moz at 4.87g/t

 Change largely due to updated Mineral Resource Model

for Nyabirama where additional drilling changed the interpretation under the open pit.

 This was partially offset by an increase in Inferred

Resource at Gokona.

2,329 2,183 367 20 58 33 332

1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400

End 2017 Depletion Change in COG MRM Updates Design Changes OP Plant Reconciliation End 2018

Ounces (koz) North Mara Reserves

Bulyanhulu 2018 Reserves and Resources

February 2019 2018 Preliminary Results Presentation 38

Primary change is due to reclassifications of Reserve to Resource

PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve

Summary Reserves and Resources1 (31 Dec 2018)

• 1. Resources are exclusive of reserves

Ore Grade Au Contained Au (Mt) (g/t) (Moz) Underground Proven 2.4 11.01 0.86 Probable 5.2 10.56 1.77 Reserves 7.6 10.70 2.63 Measured 0.6 13.49 0.25 Indicated 7.4 7.97 1.89 Inferred 15.0 11.76 5.67 Total R&R 30.6 10.61 10.44 Tailings Proven

• Probable

2.7 1.23 0.11 Reserves 2.7 1.23 0.11

• Underground Reserves decreased from

4.52Moz at 9.70g/t to 2.63Moz at 10.70g/t

• M&I Resources decreased from 4.19Moz at

9.04g/t to 2.14Moz at 8.36g/t

 Changes to approach for classifying reserve and

resource estimates in the resource block model, including reducing search radius.

 Enhanced resource calculations by using a stope

• ptimiser to create wireframes and changing

minimum mining widths from 1.5m to 2.5 m

• Inferred Resources decreased from 7.59Moz at

9.78g/t to 5.67Moz at 11.76g/t

4,522 2,627 2,232 33 23 249 98

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

End 2017 Model Classification Change COG Change Model Estimation Change CCF Re- design Uneconomic Alimak End 2018

Ounces (koz) Bulyanhulu UG Reserves

February 2019 39

YELLOW: REEF 1 UPPER EAST Hosts [ 6%] of reserve ounces

2018 Preliminary Results Presentation

Reserves decreased due to depletion

PURPLE: REEF 2 952koz @ 9.84g/t 18% of reserve YELLOW: REEF 1 UPPER EAST 458koz @ 7.41g/t 6% of reserve

Summary Reserves and Resources1 (31 Dec 2018)

Ore Grade Au Contained Au (Mt) (g/t) (Moz) Proven Stockpiles 10.6 0.90 0.31 Reserves 10.6 0.90 0.31 Measured 0.0 0.0 0.0 Indicated 4.5 1.04 0.15 Inferred 49.9 0.77 1.24 Total R&R 65.0 0.81 1.70

• In 2018 163 koz were depleted from Reserves
• Contractors were mining the goodbye cut at the

bottom of the pit and bench cuts in switchbacks in 2018. This was more successful than anticipated and 19 koz of the depletion were from these cuts.

• There was positive grade reconciliation between

the stockpile and the processing plant and this accounted for 14 koz of the of the depletion

• Positive adjustment of stockpile tonnage

increased the Mineral Reserves by 17 koz

• 1. Resources are exclusive of reserves

Buzwagi - 2018 Reserves and Resources

421 308 163 19 17 14

150 200 250 300 350 400 450 End 2017 Depletion Goodbye Cut Stockpile Adjustment Positive Grade Recon End 2018

Ounces (koz)

Buzwagi Mineral Reserves