Acacia Mining plc 2018 Interim Results Presentation July 2018 - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc 2018 Interim Results Presentation July 2018

Important Notice This presentation includes “forward - looking statements” that express or imply such statements will prove to be correct. Accordingly, investors should not place expectations of future events or results as opposed to historical facts. These reliance on forward-looking statements contained in this presentation. Any statements include, financial projections and estimates and their underlying forward-looking statements in this presentation only reflect information assumptions, statements regarding plans, objectives and expectations with available at the time of preparation. Save as required under the Market Abuse respect to future production, operations, costs, projects, and statements Regulation or otherwise as may be required under applicable law, Acacia regarding future performance. Forward-looking statements are generally explicitly disclaims any obligation or undertaking publicly to update or revise any identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” forward-looking statements in this presentation, whether as a result of new “estimates” and other similar expressions. information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast or estimate and no statement made should be All forward-looking statements involve a number of risks, uncertainties and interpreted to mean that Acacia’s profits or earnings per share for any future other factors, many of which are beyond the control of Acacia, which could cause period will necessarily match or exceed its historical published profits or actual results and developments to differ materially from those expressed in, or earnings per share. implied by, the forward-looking statements contained herein. Factors that could cause or contribute to differences between the actual results, performance and Any mineral reserves and mineral resources estimates contained in this achievements of Acacia include, but are not limited to, changes or developments presentation have been calculated as at 31 December 2016 in accordance with in political, economic or business conditions or national or local legislation or National Instrument 43-101 as required by Canadian securities regulatory regulation in countries in which Acacia conducts - or may in the future conduct - authorities. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) business, industry trends, competition, fluctuations in the spot and forward price definitions were followed for mineral reserves and resources estimates. Any of gold or certain other commodity prices (such as copper and diesel), currency reserves and resources figures stated in this presentation are estimates only. All fluctuations (including the US dollar, South African rand, Kenyan shilling and estimates stated are subject to a variety of unknown factors, risks and Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate considerations, such that no assurances whatsoever can be given that any acquisitions, Acacia’s ability to recover its reserves or develop new reserves, indicated quantities of metal will be produced. In addition, estimated figures and including its ability to convert its resources into reserves and its mineral totals stated may not add up due to rounding. potential into resources or reserves, and to process its mineral reserves This presentation is provided for general information purposes only. It does not successfully and in a timely manner, Acacia’s ability to complete land constitute an invitation or offer to underwrite, subscribe for or otherwise acquire acquisitions required to support its mining activities, operational or technical or dispose of any securities of Acacia in any jurisdiction. You are reminded that difficulties which may occur in the context of mining activities, delays and you have received this presentation on the basis that you are a person to whom technical challenges associated with the completion of projects, risk of trespass, this presentation may be lawfully made and delivered. You may not and are not theft and vandalism, changes in Acacia’s business strategy and on -going authorised to: (i) reproduce or publish this presentation; or (ii) distribute, implementation of operational reviews, as well as risks and hazards associated disclose or pass on this presentation to any other person, in whole or in part, by with the business of mineral exploration, development, mining and production any medium or in any form, in breach of any applicable securities laws. BY and risks and factors affecting the gold mining industry in general. ACCEPTING THIS PRESENTATION, YOU ACKNOWLEDGE AND AGREE TO Although Acacia’s management believes that the expectations reflected in such THE CONTENTS OF THIS DISCLAIMER AND YOU AGREE TO BE BOUND BY forward-looking statements are reasonable, Acacia cannot give assurances that THE FOREGOING LIMITATIONS. 2018 Interim Results Presentation 2 July 2018

H1 Review Strong operational performance following stabilisation of the business  H1 gold production of 255koz, on track for top of guidance range of 435-475koz  Driven by outperformance at Buzwagi due to better grades and throughput  All production in doré form  H1 gold sales of 251koz in line with production  Q2 gold production of 134koz, 11% above Q1 2018  H1 AISC of US$945/oz sold, 6% above H1 2017  Tracking below mid-point of 2018 guidance range of US$935-985/oz  Q2 AISC of US$918/oz sold, 6% lower than Q1 2018  Cash balance rose 49% during H1 2018 to US$120.1 million  Generated US$14 million of free cash flow in Q2 18 due to strong operational performance  Received proceeds of US$45 million from sale of non-core royalty in Q1 2018 2018 Interim Results Presentation 3 July 2018

Update on Tanzania

Update on Operating Environment Discussions between Barrick Gold Corporation and the Tanzanian Government continued during H1 2018  Barrick and the Tanzanian Government continued their discussions aimed at agreeing and documenting the details of the framework they announced in 2017  On the 24 June 2018 Barrick announced that it would not be providing a timetable for the completion of its discussions with the GoT  Acacia has been providing support to Barrick in its discussions with the GoT, but has not been directly involved in those discussions to date  Any proposal received by Acacia in the future that might be agreed in principle between Barrick and the GoT as a result of those discussions will be subject to review by the Independent Committee of the Acacia Board of Directors  Acacia continues to engage with Barrick to seek to understand Barrick’s expectations for the future conduct and a timetable for the completion of its discussions with the GoT  International arbitration processes ongoing to protect the business 2018 Interim Results Presentation 5 July 2018

Major Contributor to Tanzania Over 15 years Acacia has invested >US$4bn and paid >US$1bn in taxes  In H1 2018 we paid US$67.1 million in taxes and royalties in Tanzania  Includes corporate taxes of US$23.3 million  Royalties of US$25.7 million  Payroll and other taxes of US$18.1 million  Independent EY report on 2017 contribution  Acacia contributed US$712 million to the national economy  Approximately 1.5% of Tanzania’s total GDP  Purchased US$434 million of goods and services from suppliers located in Tanzania in 2017  Acacia’s Sustainable Communities initiatives contribute tangible benefits for local communities  Upgraded the Nyamwaga Health Centre North Mara at a cost of over US$600,000 to serve 350,000 people  Support the Rafiki Mission - a volunteer surgical programme that in April 2018 treated 60 patients at Sekou Toure Hospital in Mwanza. 2018 Interim Results Presentation 6 July 2018

Presenting Our Economic Contribution Exhibited social investment projects during parliament session in Dodoma to Ministers, MPs and the Mining Commission To Run off and leachate To 2018 Interim Results Presentation 7 July 2018

Operations Review

North Mara – Q2 Review Delivering in line with expectations Production & Head Grade  Regrettably, Sadock Crispin Tindahinile, an ,7.0 operator for one of our contractors passed 120 96 ,6.0 away as a result of an accident at the Gokona Production (koz) 100 86 83 ,5.0 77 deposit in Q2. Investigation completed Grade (g/t) 72 72 4.6 80 4.1 ,4.0 4.0 3.7 3.5 60 3.4  TRIFR of 0.21 ,3.0 40 ,2.0  Produced 86koz, 3% higher than Q2 2017 20 ,1.0  Driven by marginally higher head grades 0 - Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 compared to Q2 2017 Production (OP) Production (UG) Head Grade  AISC of US$861/oz All In Sustaining Cost per Ounce  14% higher than in Q2 2017, as a result of higher 950 1,000 cash costs 903 864 861 758 800 717  On track for production to be in line with $ / ounce 2017 with AISC approximately 5% higher 600  Targeting building the reserve base to 400 607 587 570 550 sustain production above 300koz for next 10 476 200 410 years 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18  Continuing to invest in expansionary drilling Cash Cost Sustaining Capital Capitalised Development Other programmes at Gokona  Pre-feasibility study underway at Nyabirama U/G 2018 Interim Results Presentation 9 July 2018