TSX: TMR INVESTOR PRESENTATION April 2020
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 Annual Information Form for the year ended December 31, 2018 and our Management Discussion and Analysis for the third quarter ended September 30, 2019 together with our Financial Statements for the same period as well as the Management Discussion and Analysis for the year ended December 31, 2018 together with our Financial Statements for the same period. 2 TSX: TMR
UNIQUE INVESTMENT RATIONALE High grade gold belt TIER 1 JURISDICTION & BEST-IN-CLASS INFRASTRUCTURE with unparalleled exploration More than $1.5B of historic investment in potential infrastructure, mine development, exploration and evaluation by BHP, Newmont, Miramar and TMAC Low-risk environmental and permitting profile N Significant community support and strong relationship with KIA Completed PFS with solid base case and significant potential to grow value 3 TSX: TMR
LOW RELATIVE RISK PROFILE Geopolitical Safety Corporate Social One of the safest mines in Responsibility Hope Bay has high-grade Canada in 2018 and 2019 – and often outcropping Strong social license and high Injury Frequency Rate mineralization without alignment with Inuit communities significantly below Ontario venturing to high-risk and leadership peers jurisdiction Permitting Environmental Permitted for exploration Strong environmental development, expansion and record with lower risks production at established than seen at other mines deposits across the Hope (e.g., tailings dam) Bay Belt (ahead of schedule) with excellent support of communities and regulators 4 TSX: TMR
COMPELLING RELATIVE VALUE – PRODUCER COMPS Street Consensus EV / Reserves Mine Life Index P/NAV (Ratio) ($/oz Au Eq.) (Years) ** Reserve Grade* $1,394 TMAC 25.7 SSR Mining 0.99x Wesdome (13.4 g/t) TMAC 25.7 Pretium Alacer (2.6 g/t) Pretium 0.97x $406 19.4 Wesdome 0.94x Roxgold (8.2 g/t) $332 Equinox 13.1 Alacer 0.73x Torex (3.1 g/t) $309 New Gold 11.2 Alacer Equinox 0.72x SSR Mining (0.7 g/t) $292 10.6 Teranga Pretium (13.2 g/t) Asanko 0.66x $241 10.0 Asanko Golden Star (2.9 g/t) SSR Mining 9.5 0.59x $207 Golden Star Teranga (1.9 g/t) Golden Star 8.4 0.59x $203 New Gold 0.56x Equinox (0.9 g/t) $153 Teranga 8.4 Torex Torex 0.55x Asanko (1.4 g/t) $148 5.8 Roxgold Roxgold 0.43x New Gold (1.0 g/t) $51 5.2 TMAC (6.5 g/t) TMAC TMAC 0.14x $41 Wesdome 4.8 0.14x TMAC (6.5 g/t) $41 Overall Median: 0.66x Overall Median: $241/oz Denotes > 50% of Gold Canada/USA Median: 0.95x Canada/USA Median: $266/oz Reserves in Canada/USA Source: FactSet, street research | Note: Medians exclude TMAC. Market data as of 03-Apr-20. | * Grade calculated as gold equivalent g/t. | ** Calculated as attributable reserves of producing assets divided by broker attributable 2021E gold equivalent production, TMAC production based on 2019A. | 5 TSX: TMR
COMPELLING RELATIVE VALUE – DEVELOPER COMPS Street Consensus EV / M&I Resources TMAC’s advantages as P/NAV (Ratio) ($/oz Au Eq.) compared to other developers include: Resource Grade* Pure Gold 0.64x Osisko Mining (9.1 g/t) $329 $329 Significant infrastructure Orla Liberty (0.7 g/t) 0.61x $84 already built Seabridge Gold Standard (0.8 g/t) 0.51x $81 Hope Bay is a camp rather than Osisko Mining 0.49x Pure Gold (8.9 g/t) $63 a single mine, with significant Liberty Rubicon (6.5 g/t) 0.47x $54 exploration upside Belo Sun Sabina (5.9 g/t) 0.36x $44 Sabina 0.36x Corvus (0.4 g/t) $41 Lower development risk 0.34x Falco Probe Metals (1.8 g/t) $33 brownfield v greenfield Gold Standard 0.34x TMAC (7.4 g/t) TMAC (7.4 g/t) $28 $28 development Corvus 0.32x Orla (1.1 g/t) $22 Permitting in place with minor Rubicon 0.27x Belo Sun (1.0 g/t) $22 amendments required Probe Metals 0.25x Midas (1.7 g/t) $21 Midas 0.17x Treasury Metals (2.6 g/t) $17 PFS cost estimates based on Orezone 0.15x Orezone (0.7 g/t) $9 actual operating experience TMAC TMAC 0.14x 0.14x Seabridge (0.9 g/t) $6 Community support Treasury Metals 0.11x Falco (2.5 g/t) $5 established with three years of production and employment Overall Median: 0.34x Denotes > 50% of Gold Overall Median: $33/oz Canada/USA Median: 0.34x Resources in Canada/USA Canada/USA Median: $43/oz >$850M Tax assets Source: FactSet, street research | Note: Medians exclude TMAC. Market data as of 03-Apr-20. | * Grade calculated as gold equivalent g/t. | 6 TSX: TMR
HOPE BAY AND ARCHEAN GREENSTONE BELTS Measured and Indicated Resources DORIS 21.8 Mt 7.4 g/t 5.2 million oz MADRID MADRID NORTH 70 90 Naartok, Suluk, Spur, Rand Cumulative Resources (M oz Au) Strike Length (km) 80 Cumulative Resource (Moz) 1 MADRID SOUTH 60 Strike Length (km) Wolverine, Patch 14 70 80 km 50 60 40 50 40 30 30 20 20 10 10 0 0 Yellowknife Hemlo Red Lake Larder Lake Noranda Cadillac-Val- Matheson Hope Bay Timmins- BOSTON Kirkland- D'Or 1 “Cumulative Resource” refers to the estimated sum of historical production and current 20 km resource estimates. Source: Metals Economics Group, Intierra, and Company reports. 7 TSX: TMR
2020 PRE-FEASIBILITY STUDY SUMMARY PFS Milestone . . . Optimization and Feasibility Study Next Valuation (1) Sensitivity Optimization Ongoing work on optimization At US$1,625/oz gold price, After-tax NPV 5% $ 486 M before feasibility study the after-tax NPV 5% is 19.7 % IRR begins, targeting reduced $ 870 M upfront capital, optimized 7 years Payback mining fleet, higher recovery 15 years and improved NPV and IRR LOM Expansion Capex Exploration Impactful P&P Mineral Reserve NPV to grow quickly with $ 683 M in 2020 to 2023 3.5M oz Au exploration success as upfront M&I Mineral Resource Incl. $ 184 M for a new capital leveraged 5.2M oz Au conventional processing plant First priority is sustaining Inferred Resource established, open deposits 2.1M oz Au 8 (1) PFS consensus gold price US$1,400/oz long-term TSX: TMR
2020 PRE-FEASIBILITY STUDY PRODUCTION PROFILE Total LOM production LOM AISC (Mineral Reserves Only) US$986/oz 3.1M oz New Madrid plant coming online in 2024 Processing plant throughput Recovery 2,000 tpd for years 2021 to 2023 85.1 % for years 2021 to 2023 4,000 tpd for 2024 and onward 88.0 % for 2024 and onward 300 3.2 Cumulative Gold Production (Mozs) 250 2.7 Gold Production (koz) 200 2.1 150 1.6 100 1.1 50 0.5 0 0.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Gold Production Cumulative Gold Production 9 TSX: TMR
2020 PRE-FEASIBILITY STUDY COSTS Capital Costs Operating Costs Capital Cost LOM Unit Cost incl. contingency EXPANSION CAPITAL Underground Mining (1) 99.45 / t ore mined Processing 184 Site Development 90 Surface Ore Haulage 9.96 / t ore hauled Power Generation & Distribution 94 Ore Stockpile Rehandle 1.16 / t ore rehandled Accommodation 40 Bulk Fuel Storage 37 Processing – Current Doris Mill 56.00 / t processed Infrastructure and Utilities 63 Processing – New Madrid Mill 39.26 / t processed Indirect Project Cost 114 General & Administration 43.48 / t processed Construction Facilities & Site Support 54 Services (during construction) Environmental, Levies, Land 5.63 / t processed Owners Cost 7 Taxes Total Expansion Capital 683 (1) Excludes C$294M in sustaining capital for mine development life of mine included in capital costs SUSTAINING CAPITAL Mine Development 294 Other Mining Capital 308 Environmental Equipment 2 Total Sustaining Capital 604 Total Capital Cost 1,287 10 TSX: TMR
2020 PRE-FEASIBILITY STUDY OPTIMIZATION Evaluate Alternative Improve Process Flow Development Scenario Sheet Ongoing work to evaluate Complete testwork and constructing NEW analyze the impact of a processing plant in footprint gravity recovery system and of existing plant at Doris to potential for flotation tails better take advantage of leaching in the new process built infrastructure plant design to maximize recovery Optimize Mine Operations Optimize Utilities & Investigate further Infrastructure optimization of mining rates, Key areas for optimization cut-off grades, development included power generation and stope sequencing, and options, Boston to Madrid district mine sequences to road design, and lowering reduce mining fleet capital initial capital leveraging current infrastructure options 11 TSX: TMR
PERMITTING COMPLETE Underground mines at Doris, Madrid Security : No “Overbonding” and North, Madrid South and Boston spread over 15 life-of-mine installments Surface crown pillar recoveries at Excellent support from Inuit Madrid North communities 55 km all-weather road from Madrid Permitting achieved substantially to Boston ahead of our original schedule Permitted infrastructure is well beyond our 2015 PFS to provide flexibility to enhance project economics; alternatives, not commitments : • 6,000 tpd processing across Hope Bay Belt • Tailings impoundment capacity (18MT at Doris, 5.1MT at Boston) • Boston permitted as self sufficient mine and processing operation • Port expansion • Wind power generation 12 TSX: TMR
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