Acacia Mining plc Continuing to transform our business to deliver - PowerPoint PPT Presentation

LSE:ACA Acacia Mining plc Continuing to transform our business to deliver free cash flow 08.02.2016

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 2013 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 African Barrick Gold plc’s 2013 potential into resources or reserves, and to process its mineral reserves Annual 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. Mining Indaba 2 08.02.2016

What we stand for Our Three Pillars 1 A leading asset portfolio in Africa Our People 2 Focused on free cash flow Our 3 Disciplined capital allocation Our Relationships Business 4 Becoming the partner of choice 5 Growing our footprint … unearthing Africa’s potential Mining Indaba 3 08.02.2016

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 Hounde Belt JVs Bulyanhulu Burkina Faso  Low-grade bulk deposit Tanzania Buzwagi Buzwagi  Short life mine, harvest mode Tanzania  Contrarian view on exploration Exploration  Building pan African portfolio Producing mines Exploration properties Mining Indaba 4 08.02.2016

Turning business around to drive free cash flow Delivered a 40% reduction in AISC since Q4 2012 AISC and Cash Cost Evolution (US$/oz) 1,800 1,600 1,400 1,200 1,000 US$/ounce 800 600 400 200 0 Q4 12 Q4 13 Q4 14 Q4 15 FY 16E Cash cost / ounce AISC / ounce Mining Indaba 5 08.02.2016

Driving change within our business Limited benefit from foreign exchange and oil price  Tone set from the top  Board of Directors and Executive Leadership Team have volunteered to take a 10% reduction in salary  Continuing to make our business more efficient in order to reduce costs  US$25 million annual saving from the restructuring of the workforce announced in late 2015  US$10 million further reduction in capital expenditure (1)  Capex expected to be 55% lower than it was in 2013  US$10 million reduction in corporate administration costs against 2015  Spend expected to be 50% lower than it was in 2012  US$10 million of annualised savings through renegotiation of contracts across supply chain  Expect to further reduce cost base as we move through 2016 Mining Indaba 6 08.02.2016

Improving our Bulyanhulu business Dramatic productivity improvements realised Breakdown of workforce Total Development metres (km) Nationals 3,000 20.00 151 Internationals 2,500 15.00 111 15.9 2,000 2,225 1,843 12.3 1,500 72 10.00 10.4 1,000 1,197 5.00 500 - - 2013 2014 2015 2013 2014 2015 Average long-hole stoping width (m) Average daily ROM tonnes milled (t) 5.0 3,000 4.0 2,762 2,500 2,636 4.1 2,625 3.9 2,510 3.0 2,329 2,268 2,000 2.8 2.0 1,500 1.0 0.0 1,000 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 2013 2014 2015 Mining Indaba 7 08.02.2016

Continuing to enhance our relationships North Mara named as overall winner of the Presidential Awards for Corporate Social Responsibility and Empowerment in Tanzania  Demonstrates the progress we have made at the mine over the past two years  North Mara was also awarded the large scale mining CSRE Presidential Award  Buzwagi was also awarded the CSRE Presidential Award for Infrastructure as a result of its investment in improving the road network close to the mine  Awards are part of a programme jointly run by the Tanzanian Ministry of Energy and Minerals and the Extractive Inter-Stakeholders Forum  Operations judged on their commitment to sustainable community wellbeing, human resource development and training and the integration of the sector with other areas of the economy Mining Indaba 8 08.02.2016

Continuing to enhance our relationships Over US$12 million of investment into community projects around our mines – moving focus towards making our local economies thrive Infrastructure – Bridge to provide year round Livelihoods – Tools to support co-operative access to markets for farmers setting up a motorbike maintenance business Livelihoods – Bee-keeping project for 120 youths Mining Indaba 9 08.02.2016

Continuing to keep our people safe Our innovative approach to embedding safety within hearts and minds taking effect WeCare Raffle Prize Draw at North Mara Total Reportable Injury Frequency Rate 1.40 2014 2015 1.29 1.20 Image of WeCare prize giving / sign etc 1.00 1.02 0.86 0.80 Winner of OSHA Mining Sector Award 2015 0.68 0.66 0.60 0.64 0.50 0.40 0.33 0.20 0.00 Bulyanhulu North Mara Buzwagi Acacia Mining Indaba 10 08.02.2016