African Barrick Gold Denver Gold Forum Presentation 23 rd September - PowerPoint PPT Presentation

African Barrick Gold Denver Gold Forum Presentation 23 rd September 2013

Disclaimer Important Notice This presentation and the information contained herein is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction. This presentation includes “forward -looking statements” that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements and information regarding plans, objectives and expectations with respect to future production, projects, operations, costs, products, services and the Operational Review, and statements regarding future performance. Forward-looking statements are generally identified by the words “plans”, “expects”, “anticipates”, “believes”, “intends”, “estimates”, “will” and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained in this presentation. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, changes or developments in political, economic or business conditions in countries in which ABG conducts or may in the future conduct business, industry trends and developments, competition, fluctuations in the spot and forward price of gold and copper or certain other commodities (such as diesel fuel and electricity), changes in national or local legislation or regulation, currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG’s ability to successfully integrate acquisitions, ABG’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves and to process its mineral reserves successfully and in a timely manner, ABG’s ability to complete land acquisitions required to support its mining activities, operational or technical difficulties which may occur in the context of mining activities, delays and technical challenges associated with the completion of projects, risk of trespass, theft and vandalism, changes in ABG’s business strategy including, without limitation, ABG’s ability to implement the Operational Review successfully, 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 generally. Although ABG’s management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward- looking statements contained in this presentation. Any forward-looking statements in this presentation only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this presentation, whether as a result of new information or future events or changes in expectations or circumstances after the date of this presentation or otherwise. Nothing in this presentation should be construed as a profit forecast or estimate and no statement made should be interpreted to mean that ABG’s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG. You are reminded that you have received this presentation subject to the disclaimer and important notices contained herein and on the basis that you are a person to whom this presentation may be lawfully made and delivered in accordance with the laws of the jurisdiction in which you are located. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, whether electronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS. BY ACCEPTING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. 1

Investment Proposition Strong production base in Tanzania and a long life, high grade reserve base  Strong balance sheet with a cash position of approximately $321 million as at June 2012  Despite strong operational performance in H1, still cash flow negative  Existing management team taking action to return business to cash generation  Change in CEO and senior management to deepen and accelerate the process  Potential and desire to be the leading independent African gold producer  High quality asset base – delivery on operational turnaround key to cash flow generation 2

Key Observations Portfolio of high quality, well capitalised producing assets  Depth of good people at each of the sites  Tanzania a stable and safe jurisdiction to operate in  Significant land package and future exploration potential  Potential to go further and faster on cost savings  3

Key Observations - Buzwagi Buzwagi – Process Plant 4

Key Observations - North Mara North Mara - Gokona Pit 5

Key Observations - Bulyanhulu Reserves: 10.6 Moz @ 11.3 g/t 2km M&I Resources: Limited drill testing 3.3 Moz @ 9.7 g/t Indicated Resources: 3.3 Moz @ 11.9 g/t 2km Bulyanhulu Reef 1 compared to LaRonde-Bousquet Camp 6

Key Observations - Responsible Mining Sungu Sungu Hospital at North Mara – Refurbished and upgraded by ABG 7

Key Priorities Reshape leadership group  Streamline organisational structure  Deliver on the Operational Review  Drive culture of accountability  Return to positive cash flow generation  Absolute focus on operational delivery 8

Long Term Strategy High quality asset base underpins future growth  Dominant position in gold mining in Tanzania  Land package secured to dominate gold mining in Kenya  Ambition to create a dominant land position in a third country in Africa  Drive value from existing quality assets and targeted expansion 9

Investment Proposition Strong production base in Tanzania and a long life, high grade reserve base  Strong balance sheet with a cash position of approximately $321 million as at June 2012  Despite strong operational performance in H1, still cash flow negative  Existing management team taking action to return business to cash generation  Change in CEO and senior management to deepen and accelerate the process  Potential and desire to be the leading independent African gold producer  High quality asset base – delivery on operational turnaround key to cash flow generation 10