April 2020 Corporate Presentation
Disclaimer This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Trans-Siberian Gold Plc (“TSG” or the “Company”), nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as an inducement to enter into any contract or agreement thereto. Any potential investor is made aware that an investment in any form of equity carries the risk of a potential total loss of the invested capital. Potential investors are therefore advised to seek professional investment, legal or tax advice prior to making any investment in the Company. Certain forward-looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the Company. Please note that past performance is no reliable indicator of future results: although TSG believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Accordingly, TSG nor any of TSG' directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon this presentation or any future communications in connection with this presentation and any such liabilities are expressly disclaimed. This information is confidential and must not be passed to any third parties except to personal investment, legal or tax advisors of the addresses. As of April 2020 Trans-Siberian Gold 2 A low cost, high grade gold producer in Russia
Introduction Trans-Siberian Gold 3 3 A low cost, high grade gold producer in Russia
Introduction Overview Organisational structure Brief History 2000 Company incorporated 100% 100% 2003 AIM listing Management company Exploration & Production 2004 AngloGold Ashanti acquire 17.6% stake ZAO OOO Trans-Siberian Gold 2005 Trevozhnoye Zavevo Management (TSGM) AngloGold Ashanti increase holding to 29.9% (TZ) 2006 UFG acquire 29.1% stake Corporate & Operational Footprint 2007 Vedugaand Bogunay sold for $40m 2011 Asacha mine commenced production 2016 UFG holding increased to 79.6% • Maiden Dividend UK Listing 2017 Board Changes • Interim Dividend Head Office Asacha Mine & 2018 Asacha licence extension • CEO succession • Final Dividend Rodnikova deposit 2019 Acquisition of licence for Rodnikovadeposit • Share Buyback Trans-Siberian Gold 4 A low cost, high grade gold producer in Russia
Introduction Corporate & Capital Structure TSG Ownership Share Price Performance (LTM) UFG Special Situations Fund L.P.* 29.8% 140 UFG Investment Company I Ltd * 12.3% 120 UFG Private Equity Fund I, L.P.* 9.0% 100 GBp Charles Ryan* 8.3% 80 KST Beteiligungs AG 5.4% 60 Florian Fenner* 3.9% 40 Firebird Management LLC 2.2% 20 Vadim Ognestsikov* 2.0% 0 Petrovka GmbH* 2.0% UFG Russia Select Master Ltd.* 1.4% Source: Q4 Robert Sasson* 1.3% Capital Structure Quilter Cheviot 1.0% UBS Wealth Management 0.5% Shares in issue 87,158,508 Source: Argus Vickers / public filings Shares in treasury 22,894,565 Share price £0.67 • * denotes connected to UFG Asset Management Market Capitalisation £58.7m • UFG is a multi-asset investment manager having invested institutional and private capital in Russia and CIS since 1996. Net Debt £13.3m • UFG’s aggregate capital commitments exceed $1.5Bn Enterprise Value £72m • UFG is PRI signatory Options / Warrants in issue Nil Notes: Market Data as at 5 March 2020. Financial Data from FY19 H1 Interim Results. Trans-Siberian Gold 5 A low cost, high grade gold producer in Russia
Introduction Board of Directors Robert Sasson Non Executive Director Charles Ryan Non Executive Chairman • Partner, UFG Asset Management • Chairman of UFG Asset Management • EBRD, Head of St. Petersburg office • Non-executive Chairman of Deutsche Bank in Russia. • Russian Studies and International Government, Exeter University • Founder director of United Financial Group (UFG) • Principal Banker with the EBRD in London Florian Fenner Non Executive Director • Harvard University graduate • Managing Partner of UFG Asset Management • Unifund, Head of Moscow office Alexander Dorogov Chief Executive Officer • Deputy Head of Research at Brunswick Brokerage • Former CFO of the Alumina division of UC Rusal • CFA charter holder • Senior positions at Arlan, private investment fund Lou Naumovski Non Executive Director • Financial management graduate from Finance Academy in Moscow • 30yrs+ of experience working in Russia • Vice President & General Director Kinross Gold Corporation Moscow office Eugene Antonov Chief Operating Officer • SVP & GM Visa International Service Organisation (VISA), CEMEA region. • 20yrs+ experience working in the mining industry • EBRD, Senior Banker and Head of Mission for Russia • Senior positions at Kinross, Bema Gold Corporation and Teck Resources • MBA, Rotman School of Management Stewart Dickson Non Executive Director • 10yrs+ investment banking experience • Former Head of Metals & Mining, Cantor Fitzgerald Europe • MBA, Henley Business School Trans-Siberian Gold 6 A low cost, high grade gold producer in Russia
Investment Case Key Strengths Key Facts Supportive, long-term shareholders: Growth Low Cost Gold Majority owned by UFG Asset Management (~72%) Opportunities Producer Beating expectations : Record production of 43,479 oz gold in doré in 2019 (FY18: 42,128 oz) Unaudited Revenue of $63.1m in 2019 (FY18: $59.8m) Attractive Favourable High yield stock : $21.5m in dividends paid 2016- Dividend Mining 2019. 2019 special dividend of $5.7m paid in Feb Jurisdiction 2019. Approved 21% share buyback in May 2019 Robust corporate governance High grade mine: 7.8 g/t average in 2019 (FY18 average: 7.4 g/t) Rosnedra approval for mining license extension 6 Low gearing years. Recent award of Rodnikova licence Robust Financials Low energy costs due to Far East Russia subsidies Strong Institutional Shareholders Trans-Siberian Gold 7 A low cost, high grade gold producer in Russia
Strategy Becoming a premier mid-tier gold producer & developer Enhance Utilise stable Pursue existing platform for selective operations future growth accretive opportunities M&A opportunities 1 2 3 Trans-Siberian Gold 8 A low cost, high grade gold producer in Russia
2020 Priorities & Enablers + Asacha + Asacha + Rodnikova Other Main Zone East Zone Drilling: • Vein 25N & Vein • JORC MRE • Selective M&A • N extension 25 infill drilling • Exploration opportunities • S extension deep • Resource drilling • Judicious • Vein 18 verification • Scoping study investments or • Vein K2 • Technical studies JVs Resource Growth / Future Production Production Value / Capital Growth FCF & Dividends Trans-Siberian Gold 9 A low cost, high grade gold producer in Russia
Introduction Market Trends (last 90 days) Rising Gold Price Falling Oil Price (WTI) Devaluation RUB:USD 1,700.0 70 85 1,650.0 80 60 75 1,600.0 50 70 1,550.0 40 US$/bbl 65 1,500.0 30 60 20 1,450.0 55 10 1,400.0 50 0 45 1,350.0 Source: World Gold Council; EIA; www.ofx.com Trans-Siberian Gold 10 A low cost, high grade gold producer in Russia
Asacha Gold Mine Trans-Siberian Gold 11 11 A low cost, high grade gold producer in Russia
Asacha Gold Mine Overview Location Geology • Pliocene age • Low-sulphidation, quartz, sericite, adularia epithermal Au/Ag deposit • The deposit has formed in a collapsed caldera complex that consists of volcaniclastic tuffs, overlain by coarse-grained dacites- andesites and tuffs. • Two zones of mineralisation have been identified: – Main Zone – hosts the largest and most continuous veins – East Zone – veins are generally narrower and less continuous • Gold exists in a free form, forms sulphides and tellurides with silver and concretions with quartz, adularia, pyrites, chalcopyrite and argentite Trans-Siberian Gold 12 A low cost, high grade gold producer in Russia
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