Acacia Mining plc Unearthing Africas Potential 12.05.2015 BofAML - - PowerPoint PPT Presentation

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Acacia Mining plc Unearthing Africas Potential 12.05.2015 BofAML - - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc Unearthing Africas Potential 12.05.2015 BofAML Global Metals, Mining & Steel Conference 2015 Important Notice This presentation includes forward - looking statements that express or imply Although


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Acacia Mining plc

Unearthing Africa’s Potential 12.05.2015 BofAML Global Metals, Mining & Steel Conference 2015

LSE:ACA

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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 12.05.15 BofAML Global Metals, Mining & Steel Conference

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Overview

A leading asset portfolio amongst our peers

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Our Locations Business Overview Bulyanhulu

  • World class – high grade narrow

vein deposit

  • Life of mine in excess of 30 years

North Mara

  • High-grade open pit and

underground mine

  • 9 year life of mine

Buzwagi

  • Low-grade bulk deposit with a

single large open pit

  • 5 year life of mine, harvest mode

Exploration

  • Contrarian view on exploration
  • Building pan African portfolio of

prospective acreage

12.05.15 BofAML Global Metals, Mining & Steel Conference

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What we stand for

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A leading asset portfolio in Africa

1

Focused on free cash flow

2

Growing our footprint

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Disciplined capital allocation

3

Becoming the partner of choice

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Our Three Pillars

… unearthing Africa’s potential

Our People Our Business Our Relationships

12.05.15 BofAML Global Metals, Mining & Steel Conference

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Building a track record of delivery

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Consistently improving performance

Increasing production

  • Guiding for 3rd consecutive

year of increased production

  • CIL Expansion brought on

stream

  • Upper East zone brought

forward

  • Gokona Underground
  • Greenfield and brownfield

exploration success Financial discipline Efficient Delivery

  • Reduced AISC in 9 out of

last 10 quarters

  • Delivered US$185m of

Operational Review savings

  • Focused exploration

programme

  • Strong balance sheet - net

cash position

  • Net cash position increased

by US$31 million over last twelve months

  • Consistent dividend payer
  • Tulawaka sold without any

residual liability

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Driving cost reductions

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

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 FY 12 FY 13 FY 14 FY 15E 15-19E Avg US$/ounce

AISC and Cash Cost Evolution (US$/oz)

Cash cost / ounce AISC / ounce

12.05.15 BofAML Global Metals, Mining & Steel Conference

Delivered a 35% reduction in AISC since Q3 2012

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Outlook

Investing for growth, while increasing production and reducing costs

626 642 719 750-800 763 500 550 600 650 700 750 800 2012 2013 2014 2015E 2015-19E Avg

Production (koz)

171 112 61 95 63 113 171 132 130 101 47 117 61 5 5 100 200 300 400 2012 2013 2014 2015E 2015-19E Avg

Capital Expenditure (US$ Million)1

Expansion Cap Dev't Sustaining 7

EUS/$ million

BofAML Global Metals, Mining & Steel Conference 12.05.15

1,561 1,346 1,105 1,050- 1,100 908 500 700 900 1,100 1,300 1,500 2012 2013 2014 2015E 2015-19E Avg

AISC per ounce sold (US$/oz)

941 827 732 695-725 656 500 600 700 800 900 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

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Bulyanhulu

  • Year end 2014 underground reserves of 9.2Moz at 9.7g/t
  • Produced 235koz at AISC of US$1,266/oz in 2014 (Q1 15 – 62koz @ $1,453/oz)
  • Progressing implementation of efficient mechanised mining
  • Significant investment in development to increase flexibility in mine plan
  • Mine now being set up in order to deliver on its geological endowment

8 BofAML Global Metals, Mining & Steel Conference 12.05.15

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North Mara

  • Year end 2014 reserves of 2.0Moz at 2.6g/t
  • Produced 274koz at AISC of US$947/oz in 2014 (Q1 15 – 76koz @ $828/oz)
  • Becoming a combined open pit (Nyabirama) & underground (Gokona) operation
  • Local community relations significantly improved

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Buzwagi

  • Year end 2014 Reserves of 900Koz at 1.35g/t
  • Produced 210koz at AISC of US$1,055/oz in 2014 (Q1 15 - 44koz @ $1,118/oz)
  • Mine in harvest mode to ensure cash generation
  • LOM includes two years of mining, followed by processing of stockpiles

10 BofAML Global Metals, Mining & Steel Conference 12.05.15

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Exploration

  • Exploration is a key driver of value and now is the time to invest
  • Drove 2.3Moz of resource additions at Bulyanhulu in 2014
  • Expanded footprint into Burkina Faso and Kenya
  • Looking to further expand exploration portfolio
  • Annual spend to be maintained at ~US$20 million

11 BofAML Global Metals, Mining & Steel Conference 12.05.15

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Our Investment Case

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Business now set up to deliver free cash flow with significant improvements still to come

  • Continued operational & financial delivery
  • Strong free cash generation
  • Mines delivering to their geological endowment
  • Moving toward industry 1st quartile
  • Developing strong African relationships

…A fresh approach to mining

12.05.15 BofAML Global Metals, Mining & Steel Conference