Acacia Mining plc
Unearthing Africa’s Potential 03.09.2015 Africa Down Under
LSE:ACA
Acacia Mining plc Unearthing Africas Potential 03.09.2015 Africa - - PowerPoint PPT Presentation
LSE:ACA Acacia Mining plc Unearthing Africas Potential 03.09.2015 Africa Down Under Important Notice This presentation includes forward - looking statements that express or imply Although Acacias management believes that the
LSE:ACA
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
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
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
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
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A leading asset portfolio in Africa
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Focused on free cash flow
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Growing our footprint
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Disciplined capital allocation
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Becoming the partner of choice
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Our Three Pillars
… unearthing Africa’s potential
Our People Our Business Our Relationships
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A leading asset portfolio amongst our peers
Our Locations Business Overview Bulyanhulu
vein deposit
North Mara
underground mine
Buzwagi
single large open pit
Exploration
prospective acreage
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Producing mines Exploration properties Tintinba Project - Mali West Kenya JV Kenya Bulyanhulu Tanzania Hounde Belt JVs Burkina Faso Buzwagi Tanzania North Mara Tanzania
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200 400 600 800 1,000 1,200 1,400 1,600 1,800
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
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Delivered a 35% reduction in AISC since 2012
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Reef 1 Reef 2
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Delineated a further 850koz in inferred resource beneath 990 mrl, to be tested by staged drilling from underground platforms
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Continuing track record of delivery against plan
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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$185 million of cost savings
Q4 14 Acceleration of development at Bulyanhulu
Q4 14 Gokona Underground Permits granted
Q2 15 Gokona Underground First Stoping Ore
Q2 15 Tailings Reclaim operating at nameplate
Q2 15 Expanded exploration footprint into Mali
Q2 15 First stoping ore from Upper East Zone at Bulyanhulu Q3 15
Q3 15
Q3 15
Q4 15
Q4 15
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626 642 719 750-800 760 500 550 600 650 700 750 800 2012 2013 2014 2015E 2015-19E Avg
Production (koz)
171 112 61 85 65 113 171 132 125 100 47 117 61 5 100 200 300 400 2012 2013 2014 2015E 2015-19E Avg
Capital Expenditure (US$ Million)1
Expansion Cap Dev't Sustaining
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
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Tintinba Project Mali
prospective Senegal-Mali Shear Zone
and IP in October
planned for Q2 2016 West Kenya JV Kenya
corridor showing best results to date
vein systems identified
potential size of system Bulyanhulu Tanzania
programme - target of 5Moz
12,500m of drilling in H2
repeat reefs
Tested Safari zone in H1,
results awaited Houndé Belt JVs Burkina Faso
covering 2,400sqkm of the Houndé Belt
South Houndé JV
from initial soil sampling on new projects
Continuing to expand our footprint across Africa
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sufficient scale on several of the better shoots
Promising drill results on Liranda Corridor – follow-up drill programmes underway
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Multiple structural domains with extensive surface gold anomalies
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joint venture for 2,400sqkm in southern Houndé Belt
encouraging – extensions to exiting trends and new prospects identified
programmes undertaken on all 3 joint venture projects to identify further drill targets
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agreement on the highly prospective Senegal-Mali Shear Zone (host to >50Moz)
and Gounkoto 5Moz @ 5g/t
vendor to earn initially 85.5% and ultimately 90% of three properties
capped at US$2m on production
in late June
aeromagnetics programmes after wet season in October 2015
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Entry into the Senegal-Mali Shear Zone
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representing ~2% of Tanzanian GDP
Working closely with the Government and our communities
Government we have seen significant progress on three key business issues:
Indirect Tax Receivable Law and Order at North Mara Power
Community Relations Government Relations
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Maendeleo Fund has committed over US$25 million to over 100 community based projects in Tanzania and Kenya
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Delivery of plan will drive cash flow at and below current gold prices
attractiveness of our business
make short term changes to our business
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