Acacia Mining plc 2015 Interim Results Presentation July 2015 - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc 2015 Interim Results Presentation July 2015

Important Notice This presentation includes “forward - looking statements” that express or imply Although Acacia’s management believes that the expectations reflected in such expectations of future events or results as opposed to historical facts. These forward-looking statements are reasonable, Acacia cannot give assurances that statements include, financial projections and estimates and their underlying such statements will prove to be correct. Accordingly, investors should not place assumptions, statements regarding plans, objectives and expectations with reliance on forward-looking statements contained in this presentation. respect to future production, operations, costs, projects, and statements Any forward-looking statements in this presentation only reflect information regarding future performance. Forward-looking statements are generally available at the time of preparation. Subject to the requirements of the Disclosure identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly “estimates” and other similar expressions . disclaims any obligation or undertaking publicly to update or revise any forward- All forward-looking statements involve a number of risks, uncertainties and looking statements in this presentation, whether as a result of new information, other factors, many of which are beyond the control of Acacia, which could cause future events or otherwise. Nothing in this presentation should be construed as a actual results and developments to differ materially from those expressed in, or profit forecast or estimate and no statement made should be interpreted to mean implied by, the forward-looking statements contained herein. Factors that could that Acacia’s profits or earnings per share for any future period will necessarily cause or contribute to differences between the actual results, performance and match or exceed its historical published profits or earnings per share. Mineral achievements of Acacia include, but are not limited to, changes or developments reserves and mineral resources estimates contained in this presentation have in political, economic or business conditions or national or local legislation or been calculated as at 31 December 2014 in accordance with National Instrument regulation in countries in which Acacia conducts - or may in the future conduct - 43-101 as required by Canadian securities regulatory authorities. Canadian business, industry trends, competition, fluctuations in the spot and forward price Institute of Mining, Metallurgy and Petroleum (CIM) definitions were followed of gold or certain other commodity prices (such as copper and diesel), currency for mineral reserves and resources. The reserves and resources figures stated are fluctuations (including the US dollar, South African rand, Kenyan shilling and estimates. No assurances whatsoever can be given that the indicated quantities of Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate metal will be produced and totals stated may not add up due to rounding. acquisitions, Acacia’s ability to recover its reserves or develop new reserves, You are reminded that you have received this presentation on the basis that you including its ability to convert its resources into reserves and its mineral are a person to whom this presentation may be lawfully made and delivered. You potential into resources or reserves, and to process its mineral reserves may not and are not authorised to: (i) reproduce or publish this presentation; or successfully and in a timely manner, Acacia’s ability to complete land (ii) distribute, disclose or pass on this presentation to any other person, in whole acquisitions required to support its mining activities, operational or technical or in part, by any medium or in any form, in breach of any applicable securities difficulties which may occur in the context of mining activities, delays and laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND technical challenges associated with the completion of projects, risk of trespass, AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE theft and vandalism, changes in Acacia’s business strategy and ongoing BOUND BY THE FOREGOING LIMITATIONS. 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. Interim Results Presentation 2 July 2015

Overview Creating a leading company in Africa 1 High quality asset base 2 Becoming a low cost producer 3 Generating free cash flow Tintinba Project - West Kenya JV Mali Kenya Hounde Belt JVs Burkina Faso North Mara Tanzania Bulyanhulu 4 Disciplined capital allocation Tanzania Buzwagi Tanzania 5 Committed to exploration Producing mines Exploration properties Interim Results Presentation 3 July 2015

HY 2015 - Highlights Laying the foundations for the future  H1 production of 367koz, 6% higher than H1 2014, with gold sales of 356koz Q2 production of 186koz driven by 13% increase at Bulyanhulu to 71koz   H1 AISC of US$1,133/oz, and cash costs of US$780, respectively 1% and 4% higher than H1 2014 Reflects investment into Bulyanhulu and North Mara   First pillar in Bulyanhulu step up in production achieved – CIL delivering ounces  Commenced production from Gokona Underground in Q2 2015, ahead of schedule  Cash position increased during Q2 2015 to US$287 million as at 30 June 2015 Post payment of US$12m 2014 final dividend   Declared interim dividend of 1.4 cents per share, in line with 2014  Expanded exploration portfolio in West Africa – entering Mali for first time Interim Results Presentation 4 July 2015

Outlook Full year guidance maintained – with disciplined spend reducing capex 750-800 Cash cost per ounce sold (US$/oz) Production (koz) 800 900 941 750 760 700 800 695-725 719 827 EUS/$ million 650 700 732 642 600 626 660 600 550 500 500 2012 2013 2014 2015E 2015-19E 2012 2013 2014 2015E 2015-19E Avg Avg AISC per ounce sold (US$/oz) Capital Expenditure (US$ Million) 1 Expansion 400 1,500 1,561 117 Cap Dev't 1,050- 1,300 47 300 Sustaining 1,346 1,100 113 171 0 1,100 61 200 5 1,105 125 900 132 171 100 910 100 700 112 61 85 65 500 0 2012 2013 2014 2015E 2015-19E 2012 2013 2014 2015E 2015-19E Avg Avg 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 Interim Results Presentation 5 July 2015

Operations Review

Operational highlights Operational Performance H1 2015 H1 2014 % change Tonnes mined (thousands of tonnes) 20,475 19,892 3% Ore tonnes mined (thousands of tonnes) 4,905 3,908 26% Ore tonnes processed (thousands of tonnes) 4,559 3,770 21% Process recovery rate (percent) 1* 88.0% 89.5% (2%) Head grade (grams per tonne) * 2.8 3.2 (13%) Gold production (ounces) 367,301 346,581 6% Gold sold (ounces) 1 355,470 330,947 7% Cash cost per tonne milled 1,2 (US$) 61 66 (8%) Per ounce data (US$) Average spot gold price 1 1,206 1,291 (7%) Average realised gold price 1 1,200 1,290 (7%) Total cash cost 1 780 752 4% All-in sustaining cost 1 1,133 1,118 1% 1 Non-IFRS financial performance measures with no standard meaning under IFRS. Refer to ”Non IFRS measures”’ on page 22 of Interim results for definitions. 2 Cash cost per tonne milled excluding the reprocessing of tailings at Bulyanhulu amounted to US$67 for the six ended 30 June 2015. *Reported process recovery rates and head grade include tailings retreatment at Bulyanhulu. Excluding the impact of the tailings retreatment half year 2015 process recovery and head grade would be 89.4% and 3.1g/t respectively Interim Results Presentation 7 July 2015

Bulyanhulu - Half year review Quarter on quarter progress – on track to hit year end run rates H1 2015 H1 2014  Q2 15 saw 17% increase in production over Operational information: Q1 15 Ounces produced Koz 133.1 105.4 Ounces sold Koz 122.0 101.2  Led to 12% reduction in AISC Cash cost US$/oz 871 868  Investment programmes into U/G AISC US$/oz 1,356 1,249 development and maintenance ongoing ROM Processing information:  Step up in production comprises three Ore milled Kt 479 428 elements: Head grade g/t 8.7 8.4 Mill recovery % 88.7% 91.6%  Tailings reclaim Ounces produced Koz 118.4 105.1  Mining at reserve grade Tailings Reclaim information:  Increased ore tonnes Ore milled Kt 580 7  Tailings reclaim contributed fully in Q2 Head grade g/t 1.2 1.2  Upper East and grade step up due in H2 Mill recovery % 64.5% na Ounces produced Koz 14.8 0.3  On track to hit planned year end run rates for both production and cost in Q4 Interim Results Presentation 8 July 2015

Bulyanhulu - Delivering on the plan Route to 350koz consists of three elements with contributions from each starting as we move through 2015 Route to 350kozpa – Annualised production 400 350 300 Annualised koz 250 200 150 100 50 0 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2013 Base Tailings reclaim Grade & Tonnage Improvement Interim Results Presentation 9 July 2015