MAY 7, 2019
Alan R. Hill Chairman
3
Richard Young President & CEO
Forward-Looking Statements All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws, and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”, “potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, but are not limited to, forecasting gold production of between 215,000 and 230,000 ounces of gold at Sabodala and between 30,000 and 40,000 ounces at Wahgnion in 2019, the timeline for commissioning of the process plant at Wahgnion, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as of the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements. The risks and uncertainties that may affect forward-looking statements include, among others, the inherent risks involved in exploration and development of mineral properties, including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other factors, such as project execution delays, many of which are beyond the control of Teranga. For a more comprehensive discussion of the risks faced by Teranga, and which may cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and on Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities. All references to Teranga include its subsidiaries unless the context requires otherwise. This presentation contains references to Teranga using the words “we”, “us”, “our” and similar words and the reader is referred to using the words “you”, “your” and similar words. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise. 5
2018: A Year of Achievements
Financial Performance Revenue Gross Profit ($ millions) ($ millions) 7% 18% Increase Increase $312.6 $291.7 $82.1 $69.6 2017 2018 2017 2018 EBITDA* Net Cash Provided by Operating Activities 17% ($ millions) ($ millions) Increase 29% Increase $111.9 $95.3 $92.1 $71.4 2017 2018 7 2017 2018 *Refer to Appendix – Non-IFRS Performance Measures
Sabodala Sabodala Record Annual Production 3-Years Running Improved Costs; Beat Guidance (Koz Au) 2017 2018 2018 Guidance +5% (Per Ounce) $950 – $1,025 Cost of sales $961 $937 $700 – $750 Total cash costs* $721 $660 $1,000 – $1,075 $1,024 $1,006 All-in sustaining costs* Non-cash inventory ($81) ($50) movements and amortized ($66) 245 233 217 214 212 207 advanced royalty costs 182 131 All-in sustaining costs (excluding non-cash inventory $950 – $1,025 $943 $940 movements and amortized 17 advanced royalty costs)* 2010 2011 2012 2013 2014 2015 2016 2017 2018 8 *Refer to Appendix – Non-IFRS Performance Measures
Wahgnion 13-Year Mineral Reserves Strong 5-Year Profile Mine Life (1) 1.6 Moz Au (1) With Potential to Further Increase Mine Life Initial 5 Years Life of Mine Summary (2) (2020-2024) 40% 4-Year Annual production 132koz (3) Increase Increase to 2P Reserves All-in sustaining costs* $761/oz to Mine Life $311M (4) Total free cash flow* *Refer to Appendix – Non-IFRS Performance Measures 9 Refer to Endnotes (1), (2), (3) and (4) in the Appendix
To view the latest video update on the development of Wahgnion, click here 10
Golden Hill Houndé Belt Burkina Faso, West Africa Teranga’s Golden Hill Project Issued 7 exploration update press releases Mineral Resource: (5) Indicated: 415koz @ 2.02 g/t Au ACC Joint Acquired the remaining interest in Golden Hill Inferred: 644koz @ 1.68 g/t Au Venture Entered into ACC joint venture – an earn-in on adjacent property to the north of Golden Hill Completed drilling for initial resource (announced February 2019) Initial resource provides solid base from which to grow Interpreted Geology 415,000 oz 644,000 oz Andesite (5) (5) at 2.02 g/t at 1.68 g/t Basalt Basin Indicated Resources Inferred Resources Batholith Chert Granitoid Tarkwaian 11 11 Refer to Endnote (5) in the Appendix
Côte d’Ivoire Côte d’Ivoire Randgold Early-stage exploration results provide considerable encouragement Dianra Mali Other 10% New discovery at Guitry within a 3x7 km 4% Guinea gold-in-soil anomaly includes 11% Côte d’Ivoire − trench results up to 12 m @ 13.05 g/t Au Côte d'Ivoire Ghana − initial drill results of 20 m @ 6.37 g/t Au 35% 19% Perseus Resource re-modelling, metallurgical test work Endeavour Newcrest and technical studies ran parallel with initiation Burkina of exploration work Faso Endeavour Afema 21% Guitry Data compilation and interpretations are Sangaredougou ongoing Côte d’Ivoire represents more than one-third of the West African Birimian Greenstone Belt 12 Operating Gold Mine/ Development Project
Our People Number of Senegalese Nationals Employed at Sabodala Gold Mine Continues to Rise Teranga Safety 95% Record Amongst 66 of Sabodala 85 Best in Industry 69 Employees are 92 Senegalese 95 (based on LTIs per million hours worked) 86 96 1,245 0.53 0 1,124 1,089 1,053 966 870 861 LTI Frequency Rate LTI Frequency Rate SABODALA WAHGNION WELL BELOW INDUSTRY AVERAGE* OF 5.81 LTIs PER MILLION HOURS WORKED 2012 2013 2014 2015 2016 2017 2018 Senegalese Nationals Expatriates 13 *Based on mining profile of ANZSIC 2006, 2016/17 for metal ore mining
CSR Teranga’s Contribution to Senegal (for the year ended December 31, 2018) Direct Contributions 112 households benefiting from Teranga-sponsored to the Sabodala cassava agricultural program at Wahgnion Community Local $1.2M Procurement 130+ tons of vegetables produced in Teranga $139.7M market gardens by 1,000+ women in Senegal $300K+ invested in education in Burkina Faso and Senegal $194M $280K invested in health across near-mine jurisdictions, including a malaria spray program in Senegal, infrastructure, and a community ambulance at Wahgnion Government Payments $42.9M Local Payroll $9.8M 14
Managing Two World-Class Resettlements Resettling 430 households at Wahgnion and nearly 600 households at Sabodala (above Niakafiri deposit), with the support of ERM, an international consultancy firm The resettlements are conducted in accordance with the International Finance Corporation Performance Standards and reflect international best practices in resettlement and livelihood restoration Members of the impacted communities participate in all areas of decision making 15
Looking Ahead
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