Acacia Mining plc Unearthing Africas Potential 03.09.2015 Africa - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc Unearthing Africa’s Potential 03.09.2015 Africa Down Under

Important Notice This presentation includes “forward - looking statements” that express or imply Although Acacia’s management believes that the expectations reflected in such expectations of future events or results as opposed to historical facts. These forward-looking statements are reasonable, Acacia cannot give assurances that statements include, financial projections and estimates and their underlying such statements will prove to be correct. Accordingly, investors should not place assumptions, statements regarding plans, objectives and expectations with reliance on forward-looking statements contained in this presentation. respect to future production, operations, costs, projects, and statements Any forward-looking statements in this presentation only reflect information regarding future performance. Forward-looking statements are generally available at the time of preparation. Subject to the requirements of the Disclosure identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly “estimates” and other similar expressions . disclaims any obligation or undertaking publicly to update or revise any forward- All forward-looking statements involve a number of risks, uncertainties and looking statements in this presentation, whether as a result of new information, other factors, many of which are beyond the control of Acacia, which could cause future events or otherwise. Nothing in this presentation should be construed as a actual results and developments to differ materially from those expressed in, or profit forecast or estimate and no statement made should be interpreted to mean implied by, the forward-looking statements contained herein. Factors that could that Acacia’s profits or earnings per share for any future period will necessarily cause or contribute to differences between the actual results, performance and match or exceed its historical published profits or earnings per share. Mineral achievements of Acacia include, but are not limited to, changes or developments reserves and mineral resources estimates contained in this presentation have in political, economic or business conditions or national or local legislation or been calculated as at 31 December 2014 in accordance with National Instrument regulation in countries in which Acacia conducts - or may in the future conduct - 43-101 as required by Canadian securities regulatory authorities. Canadian business, industry trends, competition, fluctuations in the spot and forward price Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed of gold or certain other commodity prices (such as copper and diesel), currency for mineral reserves and resources. The reserves and resources figures stated are fluctuations (including the US dollar, South African rand, Kenyan shilling and estimates. No assurances whatsoever can be given that the indicated quantities of Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate metal will be produced and totals stated may not add up due to rounding. acquisitions, Acacia’s ability to recover its reserves or develop new reserves, You are reminded that you have received this presentation on the basis that you including its ability to convert its resources into reserves and its mineral are a person to whom this presentation may be lawfully made and delivered. You potential into resources or reserves, and to process its mineral reserves may not and are not authorised to: (i) reproduce or publish this presentation; or successfully and in a timely manner, Acacia’s ability to complete land (ii) distribute, disclose or pass on this presentation to any other person, in whole acquisitions required to support its mining activities, operational or technical or in part, by any medium or in any form, in breach of any applicable securities difficulties which may occur in the context of mining activities, delays and laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND technical challenges associated with the completion of projects, risk of trespass, AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE theft and vandalism, changes in Acacia’s business strategy and ongoing BOUND BY THE FOREGOING LIMITATIONS. 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. Africa Down Under 2 03.09.2015

What we stand for Our Three Pillars 1 A leading asset portfolio in Africa Our People 2 Focused on free cash flow Our 3 Disciplined capital allocation Our Relationships Business 4 Becoming the partner of choice 5 Growing our footprint … unearthing Africa’s potential Africa Down Under 3 03.09.2015

Overview A leading asset portfolio amongst our peers Our Locations Business Overview  World class – high grade narrow Bulyanhulu vein deposit  Life of mine in excess of 30 years  High-grade open pit and North Mara underground mine  9 year life of mine Tintinba Project - West Kenya JV Mali Hounde Belt JVs Kenya  Low-grade bulk deposit with a Burkina Faso North Mara Tanzania Bulyanhulu Buzwagi single large open pit Tanzania  5 year life of mine, harvest mode Buzwagi Tanzania  Contrarian view on exploration Exploration  Building pan African portfolio of prospective acreage Producing mines Exploration properties Africa Down Under 4 03.09.2015

Driving cost reductions Delivered a 35% reduction in AISC since 2012 AISC and Cash Cost Evolution (US$/oz) 1,800 1,600 1,400 1,200 1,000 US$/ounce 800 600 400 200 0 FY 12 FY 13 FY 14 FY 15E 15-19E Avg Cash cost / ounce AISC / ounce Africa Down Under 5 03.09.2015

Bulyanhulu Year end 2014 underground reserves of 9.2Moz at 9.7g/t  Produced 235koz at AISC of US$1,266/oz in 2014 (H1 15 – 133koz @ $1,356/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 Africa Down Under 6 03.09.2015

Bulyanhulu – Reef 1 & 2 Reef 1 Reef 2 Africa Down Under 7 03.09.2015

North Mara Year end 2014 reserves of 2.0Moz at 2.6g/t   Produced 274koz at AISC of US$947/oz in 2014 (H1 15 – 142koz @ $893/oz)  Combined open pit (Nyabirama) & underground (Gokona) operation  Local community relations significantly improved Africa Down Under 8 03.09.2015

Further underground potential at Gokona Delineated a further 850koz in inferred resource beneath 990 mrl, to be tested by staged drilling from underground platforms Africa Down Under 9 03.09.2015

Buzwagi Year end 2014 Reserves of 900Koz at 1.35g/t   Produced 210koz at AISC of US$1,055/oz in 2014 (H1 15 - 92koz @ $1,089/oz)  Mine in harvest mode to ensure cash generation  LOM includes two years of mining, followed by processing of stockpiles Africa Down Under 10 03.09.2015

Delivery to date Continuing track record of delivery against plan Key Deliverables Achieved When  Q3 14 First production from CIL Expansion (Tailings reclaim)  Q3 14 Board approval of Gokona Underground  Expanded exploration footprint into Burkina Faso Q3 14  Q3 14 Group free cash generation  Q3 14 Improved plant recoveries at Buzwagi  Q4 14 Achievement of US$185 million of cost savings  Q4 14 Acceleration of development at Bulyanhulu  Q2 15 Gokona Underground Permits granted  Q2 15 Gokona Underground First Stoping Ore  Q2 15 Tailings Reclaim operating at nameplate  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 Africa Down Under 11 03.09.2015

Outlook Full year guidance maintained – with disciplined spend reducing capex 750-800 Cash cost per ounce sold (US$/oz) Production (koz) 800 900 941 750 760 700 800 695-725 719 827 EUS/$ million 650 700 732 642 600 626 660 600 550 500 500 2012 2013 2014 2015E 2015-19E 2012 2013 2014 2015E 2015-19E Avg Avg AISC per ounce sold (US$/oz) Capital Expenditure (US$ Million) 1 Expansion 400 1,500 1,561 117 Cap Dev't 1,050- 1,300 47 300 Sustaining 1,346 1,100 113 171 0 1,100 61 200 5 1,105 125 900 132 171 100 910 100 700 112 61 85 65 500 0 2012 2013 2014 2015E 2015-19E 2012 2013 2014 2015E 2015-19E Avg Avg 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 Africa Down Under 12 03.09.2015

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 our footprint across Africa   Looking to further expand exploration portfolio  Annual spend to be maintained at ~US$20 million Africa Down Under 13 03.09.2015