PRODUCING AND EXPLORING NOVEMBER 2011 1
CAUTIONARY STATEMENT This presentation contains forward looking information, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation, which reflects management’s expectations regarding Teranga Gold C orp oration’s (“Teranga” or the “Company”) future growth, results of operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities. Wherever possible, words such as “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “w ill ” be taken, occur or be achieved, have been used to identify such forward looking information. Although the forward looking information contained in this presentation reflect management’s current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Teranga cannot be certain that actual results will be consistent with such forward looking information. A number of factors could cause actual results, performance or achievements to differ materially from the results expressed or implied in the forward looking information, including those listed in the “Risk Fact ors ” section of the prospectus of Teranga, dated November 11, 2010 (the “Prospectus”). These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking information. Forward looking information necessarily involves significant known and unknown risks, assumptions and uncertainties that may cause Teranga’s actual results, performance, prospects and opportunities in future periods to differ materially from those expresse d or implied by such forward looking information. Although Teranga has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in the forward looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on such forward looking information. Teranga expressly disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities law. Forward looking information and other information contained herein concerning mineral exploration and management’s general ex pectations concerning the mineral exploration industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, mineral exploration involves risks and uncertainties and industry data is subject to change based on various factors. In addition, please note that statements relating to “reserves” or “resources” are deemed to be forward looking information a s they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably mined in the future. While management has confidence in its projections based on exploration work done to date, the potential quantity and grade disclosed herein is conceptual in nature, and there has been insufficient exploration to define a mineral resource, therefore it is uncertain if further exploration will result in the targets being delineated as a mineral resource. This presentation does not constitute in any way an offer or invitation to subscribe for securities in Teranga pursuant to the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission. 2
COMPETENT PERSONS STATEMENT The information in this presentation that relates to exploration results, targets, mineral resources or ore reserves within the SGO Mining License is based on information compiled by Mr. Bruce Van Brunt, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Van Brunt is a full time employee of Teranga and therefore not independent. Mr. Van Brunt has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code of Reporting of exploration Results, Mineral Resources and Ore Reserves”. Mr. Van Brunt consents to the inclusion of this information in the form and context in w hich it appears in this presentation. The information in this document that relates to exploration results, targets, mineral resources or ore reserves within the Regional Exploration Package is based on information compiled by Mr. Martin Pawlitschek, who is a member of the Australasian Institute of Geoscientists. Mr. Pawlitschek is a full time employee of Teranga and therefore not independent. Mr. Pawlitschek has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code of Reporti ng of exploration Results, Mineral Resources and Ore Reserves”. Mr. Pawlitschek consents to the inclusion of this information in the form and context in which i t appears in this presentation. 3
CAPITALIZATION SUMMARY FOCUSED ON GROWTH Ticker symbol: TGZ: TSX/ASX Shares outstanding (1) : 245.6 million FOCUSED ON: Stock options outstanding: 15.4 million GROWING Share price (as at November 24, 2011) : C$2.14 RESERVES Market capitalization: C$526 million GROWING PRODUCTION Cash position (2)(3) : US$25.8 million FINANCIAL Debt position (2)(4) : US$17.3 million STRENGTH (1) As part of the demerger Mineral Deposits Ltd. retained 40 million TGZ shares and received C$50 million from the IPO proceeds. (2) As at September 30, 2011 (3) Includes short-term investments and restricted cash (4) Drawn under the mining fleet finance lease facility with Societe Generale. 4
ASSETS Large exploration land package in Senegal, W.A. • 1,488km 2 virtually unexplored land surrounding operating mill • An emerging world class gold district Operating mine / mill • Proven performance • Only gold mining operation in the country Strong balance sheet • Able to self-fund exploration & development Experienced management team • Proven track record 5
SABODALA GOLD (SENEGAL) Sabodala is the only large scale gold mine in Senegal Senegal • Mining Code passed in 2003 • Successful democracy • Stable political environment • Population of ~13.7M • Mining friendly regime • Government holds 10% free-carried interest in Sabodala and 3% royalty • Tax-free holiday that ends May 2015 6
SABODALA GOLD (OPERATIONS) First gold pour in March 2009 • Approx. cost of $330M Mill expansion from 2 Mtpa to ~4 Mtpa underway • Est. 140,000 oz production 2011 expanding to >200,000 oz • Expected to be completed early 2012 at a cost of $60 MM Well developed infrastructure • Located 650 km east of the capital Dakar and 96 km north of the town Kedougou – paved road within 56 km of mine site • 30 MW heavy fuel oil power plant located on site (36 MW with mill expansion) 7
GROWTH STRATEGY FOCUSED ON GROWING RESERVES 1.5Moz currently to … • Objective: 10-15+ year mine life • Growth through exploration – extensive exploration program on 1,455km 2 Regional Land Package of virtually unexplored prolific land • Growth through regional opportunities – primary focus Senegal FOCUSED ON GROWING PRODUCTION 140,000oz currently to … • Leveraging off our existing mill – land package all truckable • Doubling mill capacity – could increase further FOCUSED ON FINANCIAL STRENGTH Maintaining strong balance sheet to self-fund exploration… • Eliminating hedge book – quickly but prudently • Margin expansion (eliminate hedge and lower costs) • Significant free cash flow to self-fund exploration strategy • Manageable capex requirements 8
Production Profile (‘000 oz) FOCUSED ON 500 GROWING PRODUCTION 450 400 Calendar Year 2011 350 • Est. production 140,000 oz at 300 $850 - $875/oz • Capex $83M (primarily for mill expansion, mobile 250 equipment and capitalized Mine License exploration) 200 150 Calendar Year 2012 • Est. production 220,000 oz at 100 $625-$675/oz 50 • Capex ~ $25M (primarily for exploration) (1) 0 2011 2012 2013 2014 Production Exploration Success Assumes increased production from regional exploration success (1) Excludes capital cost to develop regional deposits. 9
Recommend
More recommend
