Acacia Mining plc Company Presentation June 2016 Important Notice - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc Company Presentation June 2016

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 2015 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. For acquisitions, Acacia’s ability to recover its reserves or develop new reserves, more information regarding the nature of reserves and resources estimates and including its ability to convert its resources into reserves and its mineral relevant CIM definitions, please see page 90 of Acacia Mining plc’s 2015 Annual potential into resources or reserves, and to process its mineral reserves Report and Accounts. successfully and in a timely manner, Acacia’s ability to complete land You are reminded that you have received this presentation on the basis that you acquisitions required to support its mining activities, operational or technical are a person to whom this presentation may be lawfully made and delivered. You difficulties which may occur in the context of mining activities, delays and may not and are not authorised to: (i) reproduce or publish this presentation; or technical challenges associated with the completion of projects, risk of trespass, (ii) distribute, disclose or pass on this presentation to any other person, in whole theft and vandalism, changes in Acacia’s business strategy and ongoing or in part, by any medium or in any form, in breach of any applicable securities implementation of operational reviews, as well as risks and hazards associated laws. BY ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND with the business of mineral exploration, development, mining and production AGREE TO THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE and risks and factors affecting the gold mining industry in general. BOUND BY THE FOREGOING LIMITATIONS. Company Presentation 2 June 2016

Company overview A leading asset portfolio amongst our peers Our Locations Business Overview  World class deposit Bulyanhulu  Life of mine in excess of 20 years West Kenya JV Kenya  High-grade open pit and North Mara underground mine  9 year life of mine North Mara Tintinba Project Tanzania Mali Bulyanhulu  Low-grade bulk deposit Tanzania Houndé Belt JVs Buzwagi Burkina Faso Buzwagi  Short life mine, harvest mode Tanzania  Contrarian view on exploration Exploration  Building pan African portfolio Producing mines Exploration properties Company Presentation 3 June 2016

Returning Business to Free Cash Flow Delivered a 40% reduction in AISC since 2012 AISC and Cash Cost Evolution (US$/oz) 1,800 1,600 1,561 1,400 1,346 1,200 1,112 1,105 1,000 US$/ounce 965 959 922 800 812 732 732 693 685 600 400 200 0 2012 2013 2014 2015 Q1 16 FY 16E* Cash cost / ounce AISC / ounce * Represent mid-point of 2016 guidance ranges Company Presentation 4 June 2016

Operations Review

Buly - Beginning to consistently deliver Continuing the transformation Production (koz)  Six months of consistent delivery  AISC beneath US$1,000/oz 78 78 71  FY 2016 AISC expected to be 15% lower than 2015 62 62  Mine currently generating free cash flow  Progressing towards target of 350kozpa  Significant free cash flow leverage Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016  2016 focus areas: AISC per ounce sold (US$/oz)  Deliver further increase in development metres  Improving stope cycle times 1,453  Achieve improved recoveries 1,373 1,278  Progress drilling programmes across Reef 2 as look to unlock geological potential 999 983 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Company Presentation 6 June 2016

KPIs have improved significantly Productivity improvements continuing and driving costs lower Total Development metres (km) Average long-hole stoping width (m) 16.5 15.9 12.3 10.4 4.1 3.9 2.8 2.7 2013 2014 2015 Q1 2016 2013 2014 2015 Q1 16 Annualised Mined tonnes per employee Cost per tonne mined 108 105 107 101 82 79 70 52 47 2013 2014 2015 Q1 2016 Q1 2015 Q2 15 Q3 15 Q4 15 Q1 2016 Company Presentation 7 June 2016

Reef 2 Resource Extensions Testing expansion of a world class resource to unlock potential parallel operation Reef 1 Reef 2M Phase 2 Phase 4 Phase 3 Drilling Drilling Drilling Company Presentation 8 June 2016

North Mara Continuing to deliver strong performance Production (koz)  Mine has been our leading driver of free cash flow over the last 3 years 77 76 75  Q1 continued trend with AISC of US$737/oz 68 67  Expected to be our largest producing mine and lowest cost asset in 2016  Delivered ramp up of Gokona Underground on time and delivering ahead of plan Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016  2016 focus areas: AISC per ounce sold (US$/oz)  Initiate Nyabirama deeper drilling programme 968  Prepare U/G drill platforms ahead of 2017 deeper 939 932 drilling programme at Gokona 828  Deliver CAF plant at Gokona Underground 737  Maintain improved community relations Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Company Presentation 9 June 2016

Gokona Underground – Future plans Reserve replacement has eased pressure on drilling to upgrade approximately 850koz of resource beneath current reserves, infill and deeper drilling will commence in 2017 Mining taking place via Eastern Portal Planned Western Portal 250 m 300m Reserves 640 m Resources 600m Pink blocks – reserves Green blocks – resources Company Presentation 10 June 2016

Nyabirama - Assessing U/G potential in 2016 Mineralisation known to extend beyond final pit design, drilling programme in 2016 designed to test geological understanding Cut 4 Pit outline 300m Footwall Lodes 300m Hangingwall Lode Planned 2016 holes (8 holes) Image looking South West From Eastern side-Mine Grid Company Presentation 11 June 2016