Professional Documents
Culture Documents
Operating Results
January 30, 2017
Forward-Looking Statements
This presentation contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (forward-looking statements), which reflects managements
expectations regarding Teranga Gold Corporations (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, trends, indications, potential, estimates, predicts, forecasts, focused on, anticipate or does not anticipate, believe, intend,
ability to and similar expressions or statements that certain actions, events or results may, could, would, might, will, or are likely to be taken, occur or be achieved, have been used to identify
such forward looking information. Specific forward-looking statements in this presentation include the commencement of expected drill programs, anticipated construction readiness activities for the
Companys Banfora gold project in Burkina Faso as well as well as the anticipated completion of construction of the Banfora project - including the first gold pour, the anticipated discovery of reserves at
the Banfora project, the timing of completion of a Feasibility Study for the Banfora project, and Terangas estimated full year financial and operating totals, as well as anticipated 2017 operating results.
Although the forward-looking information contained in this presentation reflect managements 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. Such forward-looking statements are based upon
assumptions, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant
but that may prove to be incorrect. These assumptions include, among other things, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource
estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue
reliance upon any such forward-looking statements
The risks and uncertainties that may affect forward-looking statements include, among others: the inherent risks involved in exploration and development of mineral properties, including government
approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of
which are beyond the control of Teranga, as well as other risks and uncertainties which are more fully described in Terangas Amended and Restated Annual Information Form dated November 15, 2016,
and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not undertake any obligation to update forward-looking statements should
assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
This presentation is as of the date on the front cover. All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the
words we, us, our and similar words and the reader is referred to using the words you, your and similar words.
All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.
Whats Ahead
2017 Outlook
3
Paul Chawrun
Chief Operating Officer
Record-Breaking Operational Performance
Mining Costs
($/t mined)
4%
(1)
+18%
Increase in
Increase in gold 2015 2016
throughput to
production to a Milling Costs
4,025,000
record 216,735 ($/t milled)
Tonnes Milled
ounces (compared
(compared to 24%
to 182,282 in 2015)
3,421,000 in 2015)
$14.01
$10.70
2015 2016 5
Reduced Operational Risk at Sabodala
Implemented Built
Completed
New Grade Inventory of
Mill
Control High-grade
Optimization
Procedures Ore
6
Surpassed 3 Years or 12 Million Hours Worked Without a Lost Time Incident
12.0M
6.5M
3.2M
7
Continue to be largely in
sync with 2016 technical
report for Sabodala
8
Sabodala Mine License &
Regional Land Package (Senegal)
Improving Our Probabilities for Exploration Success
9
Richard Young
President & Chief Executive Officer
Increased Opportunities for Growth & Enhanced Optionality
Senegal
Niger
Sabodala Gold Mine
Status: Producing Mali
The Gambia
Reserves: 2.6Moz(1) Burkina
M&I: 4.4Moz(1)
Faso
Guinea- Gourma
Bisseau Banfora Project Exploration JV
Status: Feasibility
Sierra
Cte Benin
Leone
Mahepleu
dIvoire Ghana
Togo
Exploration JV
Tiassale
Guitry Exploration JV
Liberia Exploration JV
Sangaredougou
Refer to Endnote (1) on the second last slide 11
Fast-Tracking Completion of Banfora Gold Project Feasibility Study
2H 1H 2H 1H 2H 1H 2H
2016 2017 2017 2018 2018 2019 2019
12
Two Prospective Exploration Joint Ventures
Iamgold
Golden Hill Avocet
Banfora Gold
Project
Major Mine/Deposit
13
Optionality in Cte dIvoire
Guitry Taurus
Exploration JV
Cte
Burkina Senegal dIvoire
Faso
Focused on Banfora Mine License, Banfora Focused on resource definition, converting reserves High-precision BLEG survey is planned to
Regional, and Golden Hill at Niakafiri, and continued delineation of the recently cover much of the properties
discovered Goumbati West
Planned 2017 Exploration Budget Follow-up soil sampling, hand-pitting, Auger
Banfora $3-$4 million New target generation program will continue and RC drilling at the Guitry property
Golden Hill $3 million
Gourma $0.5 million Planned 2017 Exploration Budget Planned 2017 Exploration Budget
Sabodala Mine License $3-$4 million $0.5 million
Regional $2 million
16
Strengthened Balance Sheet to Support Growth
Cash
Cash
Cash balance increased by $50.8M during the year ($M)
114%
Government Payments
$17.2M in royalty to government of Senegal to settle
remaining 2015 royalties and royalties related to first
three quarters of 2016
$95.2
An additional $1.6M of royalty payments was settled
through an offset of receivables
$44.4
Value-added Tax (VAT)
$10.3M unaudited VAT Receivables as at Dec. 31, 2016 December 31, 2015 December, 31, 2016 (unaudited)
17
Garnering International Recognition for CSR
18
One-Half of Africas 2015 Gold Production Came From West Africa
AFRICA
17.1Moz
SOUTH AMERICA OCEANIA
14.2Moz 11.5Moz
19
Source: CPM Gold Yearbook 2016
WORLD-CLASS
Gold Belts
SIGNIFICANT in Mining-Friendly
Jurisdictions STRONG
Growth Opportunities Life of Mine
with Expansion into Cash Flows(9)
West Africa
LARGE
SOLID
CORNERSTONE Long-Life
Balance Sheet
INVESTOR Reserve &
& Cash Position
with Strong Ties Resource Base(1)
to West Africa