Investor Presentation May 2019
Caution Regarding Forward-Looking Information Readers are cautioned that we will be making forward-looking comments. To fully understand the risks inherent in our comments, forecasts and estimates you are encouraged to read our Management Discussion and Analysis and our Annual Information Form for the first quarter ended March 31, 2019 together with our Financial Statements for the same period.
Nunavut - High Growth Mining District q High-grade gold producer in one of the world’s best mining jurisdictions q Airstrip provides year-round access for crew and freight q Port at site for annual sealift of bulk good and equipment q More than $1.5Bn of historic investment in infrastructure, mine development, exploration and evaluation by BHP, Newmont, Miramar and TMAC 1
Hope Bay and Archean Greenstone Belts Measured and Indicated Resources of 18.0 Mt at 8.3 g/t gold containing 4.8 million ounces Doris 70 90 Cumulative Resource (Moz) 1 Cumulative Resources (M oz Au) 80 60 70 Madrid Strike Length (km) Strike Length (km) 50 60 Madrid North 40 Naartok, Suluk, Spur, Rand 50 Madrid South 40 30 Wolverine, Patch 30 20 20 10 10 80 km 0 0 Cadillac-Val- Yellowknife Hemlo Red Lake Larder Lake Noranda Matheson Hope Bay Timmins- Kirkland- D'Or Boston 1 “Cumulative Resource” refers to the estimated sum of historical production and current resource 20 km estimates. Source: Metals Economics Group, Intierra, and Company reports. 2
Unique Investment Rationale q Consistent quarter-over-quarter operational improvement Inflection point as we transition from ramp up to optimization § q Growing cash flow – positive AISC margin established and increasing q Extraordinary potential to build the next great high-grade mining camp Increased exploration to re-establish reserve and resource growth at core deposits § Now in a position where regional exploration can generate new discovery § q Evaluation of disciplined growth across Hope Bay Belt – updated PFS targeted for Q4-19 q Demonstrated high support from key shareholders q Share price valued at deep discount today Historic risks of ramp up and operational volatility – now near resolution § Beginning to demonstrate free cash flow generation § Share trading illiquidity can be addressed strategically, but only if it is value-added § 3
Low Relative Risk Profile q Geopolitical: Hope Bay has high-grade and often outcropping mineralization, located in a low-risk mining jurisdiction q Permitting: Permitted for significant development, expansion and production at established deposits across the Hope Bay Belt (ahead of schedule) with excellent support of communities and regulators q Corporate Social Responsibility: Strong social license and high alignment with Inuit communities and leadership q Safety: One of the safest mines in Canada in 2018 – Injury Frequency Rate at one-third of Ontario peers q Environmental: Strong environmental record with lower risks than seen at other mines (e.g., tailings dam) 4
Compelling Relative Value Street Consensus P / NAV (Ratio) EV / Reserves ($/oz Au Eq.) Mine Life Index (Years)** Reserve Grade* TMAC SSR Mining 1.04x Wesdome (11.0 g/t) $1,006 21.1 Asanko Golden Star 1.02x Torex (3.1 g/t) 17.9 $412 Pretium SEMAFO 0.94x SEMAFO (3.4 g/t) 16.7 $365 Teranga Atlantic 0.89x Roxgold (11.5 g/t) 11.6 $352 Alacer Wesdome 0.86x Pretium (13.3 g/t) 11.4 $304 SSR Mining Alacer 0.83x 11.4 Golden Star (2.9 g/t) $299 Equinox Pretium 0.76x 9.1 Atlantic (1.1 g/t) $274 Leagold Torex 8.7 0.64x SSR Mining (0.7 g/t) $256 Golden Star Roxgold 0.63x 6.9 Alacer (3.0 g/t) $224 Atlantic TMAC 6.7 0.56x Equinox (0.6 g/t) $147 Torex Equinox 6.5 0.54x TMAC (6.8 g/t) $139 SEMAFO Teranga 6.1 0.45x Teranga (1.4 g/t) $87 Wesdome Asanko 5.6 0.42x Leagold (1.4 g/t) $65 Overall Median: 0.76x Overall Median: $274/oz Canada/USA Canada/USA Roxgold Leagold 4.6 0.36x Asanko (1.6 g/t) $58 Median: 0.86x Median: $274/oz Source: FactSet, street research Note: Medians exclude TMAC. Market data as of 7-May-19. Denotes > 50% of Gold * Grade calculated as gold equivalent g/t. Reserves in Canada/USA 5 ** Calculated as attributable reserves of producing assets divided by broker attributable 2019E gold equivalent production, TMAC production based on midpoint of 2019E guidance.
Strong Start to 2019 q Production of 40,050 ounces and AISC of $992/oz q Strengthening Plant performance in Q1-19 Commissioning of Plant retrofit nearing completion § q Positioned to feed expanded Plant capacity Doris UG production ramping up with strong grade § Increased development at Doris; Naartok East crown pillar development H2-19 § q Exploration program underway to resume resource growth momentum Strong first results from: § 2019 Doris North BTD drilling – objective to extend high grade zone § 2019 Madrid North drilling – objective to prepare for development decision § Boston strategy for 2019 and 2020 § q Enhanced balance sheet flexibility with credit agreement amendment 6
Amended Debt – Cumulative Principal Payment Profile Elimination of US$26 million of principal payments next four quarters and easing of covenants based on strengthening operations Quarterly Amortization (1) Previous Amended Q2-19 - Q1-20 $6.5M/Q $0/Q Q2-20 - Q3-20 $6.5M/Q $2.5M/Q Q4-20 - Q2-21 $5.5M/Q $2.5M/Q Q3-21 - Q3-22 $5.5M/Q n/a Initial Maturity July 31, 2020 Dec 31, 2020 Extended Maturity July 31, 2022 June 30, 2021 US$40 million 7 (1) Assumes extension of each facility.
Rising Gold Production and Declining Costs 2019 Guidance Production: 160-180koz Costs: $625-$700/oz cash costs, $900-$1,000/oz AISC (1) 8 (1) Computation of AISC is in accordance with the World Gold Council guidelines
Rising Plant Throughput and Rising Recoveries Plant target 2,000 tpd and 90% recovery, and then push to exceed (1) 9 (1) Stated grade relates to feed grade.
Rising Mine Production Mine target 1,500 tpd Doris underground, and then push to exceed Plant feed supplemented from surface crown pillar (Doris, Naartok) and stockpiles (1) Q1-19 = 1,600tpd @ 10.2 g/t 10 (1) Mine production includes incremental ore.
Doris Underground Mine (1) Subject to ongoing exploration success (1) Includes development ore. Doris North N Doris Connector Doris Central East Limb Extension Doris North BTD BTD Connector BTD Central 11
Doris: BTD Extension – High Grade and Open 4690-West Limb Access Au g/t 2019 Drill Hole Development Chip Sample Results (un-capped) 23.0 g/t Au/4m (100 g/t Au Cap) 0-2 N 2018 Drill Hole 104.2 g/t Au/4m (un-capped) 2-4 TM50148 4-10 261.0 g/t Au/7.1 m 10-20 20-30 And 6.6 g/t Au /10.5m 30-60 13.5 g/t 1.9 g/t 1.0 g/t 60-90 Au/0.6m Au/0.5m Au/0.7m Inferred Indicated 90-120 >120 (approximate) (approximate) 506 g/t 2.9 g/t 0.9 g/t 1.1 g/t Au/0.8 Au/0.5 Au/0.4m Au/0.5m m m TMDBE-19-50005 407.0 g/t Au/1.1 m 4690-West Limb Rnd 13 Development Chip Sample Results Vein Grade High Grade 66.0 g/t Au/3m (100 g/t Au Cap) 88.0 g/t Au/3m (un-capped) Plunge TM50239 3.5 g/t 166.0 g/t 10.5 g/t 13.5 g/t 1.9 g/t 1.0 g/t 379.4 g/t Au/1.7 m Au/0.7m Au/1.0m Au/1.0m Au/0.6m Au/0.5m Au/0.7m TMDBE-19-50018 TMDBE-19-50031 207.0 g/t Au/0.9 m Planned 682.9 g/t Au/1.4 m 22.0 g/t 75.9 g/t Development 506 g/t 2.9 g/t 0.9 g/t 1.1 g/t Au/1.0m Au/1.0m Au/0.8m Au/0.5m Au/0.4m Au/0.5m Q1 2019 50 m 12 Drill Bay 12 3
Madrid: Naartok East Crown Pillar q Development of Naartok East crown N 7 km Ore Haulage pillar would provide to Doris Mill Naartok East Deposit additional flexibility to feed a hungry Naartok East Crown plant in 2019 and Pillar Trench manage operational Naartok West volatility Deposit q 283,000 tonnes at Permitted New Madrid Suluk Waste Rock Portal Location Deposit 4.8 g/t probable Pad New Permitted Waste Haulage Road mineral reserve 500 m Scale 13
2019 Exploration Strategy q Extend BTD with 2019 access to another 100 m strike length Doris q Infill and expand Connector and BTD Connector $6M q Advance Naartok East, Naartok West and Suluk towards development Madrid q Current Suluk winter program with objective to grow resource and $3M support metallurgical testing q Summer 2019 program: test high-grade plunge near surface and Boston explore south from Boston along 6 km alteration $6M q Winter 2019/20 program: test high-grade plunge ~1,000 m q Lateral extension at Doris Regional q Madrid regional to south along route of permitted road to Boston $5M 14
Madrid: Naartok East Advancing to Development N S q 31 drill holes completed in TM00434 4.9 g/t Au/29.5 m TM00422 2018 drill program TMMNE-19-00011 Including 10.9 g/t Au/10.5 m 10.4 g/t Au/9.6 m 11.5 g/t Au/9.0 m q Materially added gold ounces and 10.1 g/t Au/27.0 m within the crown pillar 0 m TMMNE-19-00013 10.6 g/t Au/27.0 m q 22 additional infill drill holes completed in Q1-19 TMMNE-19-00008 Structural TM00441 12.8 g/t Au/11.5 m confirmed geological and Trend 11.0 g/t Au/12.5 m grade continuity near surface within the crown pillar, providing information for TM00443 4.9 g/t Au/27.6 m future development decision Including 12.9 g/t Au/5.5 m q 2019 data being incorporated into the reserve and resource -500 m Mineralized Zone model Location Highlight 2019 Drill Hole Pre-2019 Drill Hole 15
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