Nordgold: A High Growth International Gold Producer Oleg Pelevin, Strategy Director September 2017
Diversified Asset Base Across Four Continents Neryungri Buryatzoloto 81 koz 98 koz Gross 200E+ koz Pistol Bay Uryakh Bissa-Bouly Berezitovy Montagne d’Or 214 koz 80 koz Suzdal 81 koz Taparko 111 koz H1 2017 Revenue by Geography Lefa 195 koz Burkina Faso Operating Mines, actual production 2016 Russia 23% Kazakhstan Developing Assets 46% Guinea 9% Exploration Assets 21% Exploration Areas 2
Solid Track Record and Strong 2017 Outlook Company Highlights: Gold Production, Koz In the past five years Nordgold successfully built two large 1200 scale and highly efficient mines – the Bissa and Bouly mines in 950 950 Burkina Faso – investing approximately US$390m 1000 869 Last one – Bouly mine, launched in September 2016 on 800 schedule and under budget, is working at full capacity in 2017 600 486 Construction of a next growth project - the Gross mine in 400 Russia – started in June 2016 with first gold expected in mid 2018 200 Montagne d’Or in French Guiana – Bankable Feasibility Study 0 was delivered in March 2017 2015 2016 H1 2017 FY 2017E Target positive Free Cash Flow generation at all mines Organic production growth based on existing projects pipeline 2017 Outlook: Gold production is expected to be in the range of 900-950 koz The growth will largely be driven by the contribution of new Bouly mine which is expected to produce up to 110 koz in 2017 and additional growth from Bissa, Lefa and Berezitovy benefitting from ongoing efficiency increase program AISC guidance of 900-950 US$/oz Capex is anticipated to be approximately US$390 million . 3
Robust Pipeline to Underpin Future Growth Construction Phase Development Phase Advanced Exploration Early Exploration FS completed Established Resources Significant drilling performed Potential resource identified In construction FS completed or underway Established resources Target delineation Scoping/PEA completed or underway Zhanok Uryakh Russia Khaikta Ronguen; Zinigma; Production in 6-8 years Production in 2-4 years Production in 3-5 years Russia Production in 1 years Russia Yeou Burkina Faso Pistol Bay Kangarse Gross 4.4 Moz Reserves Baola II Tokkinsky Canada Burkina Faso Russia 8.5 Moz Resources Burkina Faso Russia Noungou Montagne d’Or Yimiougou Goengo Banora French Guiana Burkina Faso Corridor Burkina Faso Lefa Guinea Corridor Guinea Satellite Standalone Nordgold Pipeline is Robust and Balanced with Early Stage and Advanced Projects 4
Producing at the Bouly Mine Bouly – Brief Overview and Summary Leach pad Burkina-Faso, 5 km east from Bissa Location Location mine Bissa infrastructure is available to Infrastructure support Bouly Mine type Open pit, Heap leach Project parameters Start-up date September 2016 US$140 million CAPEX Annual production 118 koz, LoM 10 years LoM average AISC US$730/oz Project Highlights Located within 5 km from Nordgold’s operating Bissa mine with key infrastructure already in place Large ore body: 1.3 Moz at 0.56 g/t in Probable Reserves and 3.5 Moz at 0.57g/t in M,I&I Resources Construction was completed on schedule in 13 months and under budget Bouly mine reached full capacity just in two months after launch producing 31.4 koz of gold doré in 2016 Bouly’s average annual production will be approximately 120 koz over a life of mine of 10 years Feasibility Study with strong project economics: 40% IRR at a gold price of US$1,250/oz Possibility of Life of Mine extension through processing of fresh rock ore resources and exploration at flanks 5
Building the Large-Scale Gross Mine Gross – Brief Overview and Summary Gross project general view Russia, Yakutia Location Location 5 km from Neryungri operating mine, Infrastructure accessible by all-season road Mine type Open pit, Heap leach Project parameters Stage Construction started in June 2016 Possible start-up year H1 2018 Average production 200+ koz US$250 million Construction cost Gross orebody model and open pit, long section LoM average AISC US$760/oz Project Highlights Gross is the largest project in Nordgold portfolio – large resource base for a mine with 200+ Koz production and more than 20 years life of mine World class ore body: 4.4 Moz at 0.73 g/t in P&P Reserves and 8.5 Moz at 0.67 g/t in MI&I Resources Straightforward low cost heap leach metallurgy with high recovery rate at about 82.5% <0.4 Project has excellent economics with the costs in the 1st quartile of the 0.4-0.8 0.8-1.2 Au cost curve and IRR of almost 40% at $1250 gold price 1.2-1.6 g/t 1.6-2.0 The successful pilot production confirmed heap leaching recovery >2.0 parameters and reduced execution risk 6 Gross project is on track to start operation in H1 2018
Gross – design main solutions and construction status Gyratory primary crusher Project main technical solutions Project design throughput is 12 Mtpa however with equipment installed up to 15 Mtpa is achievable Large single open pit mining, shovels and 140t trucks Two stage gyratory and cone crushing to -40 mm, 2000 tph Dynamic leach pad, conveyors, mobile stacker and reclaimer system Cyanide solution heating for high recovery in winter season Coal fired 16 MWt power plant with capacity balanced to provide sufficient electric power and heat for cyanide solutions Coal fired power plant Current status of construction Structural steel and mechanical equipment for the crushing and conveying plant and power plant is 100% is either on site or on route to site Heap Pad is currently ready for lining to commence Concrete works for foundations of crushing and conveying section underway and will be finalized in 2017 7
Developing Uryakh Uryakh Project Overview Ore body with topography (pit shells in yellow) Irkutsk Region, Russia, 100 km from Baikal Location Location Amur Mainline (BAM) railroad Accessible by river and summer road; all- Infrastructure season road from railhead is proposed Mine type Open pit and underground parameters Project Development Advanced exploration – PFS study imminent Stage 1.6 Moz at 3.4g/t minable U/G and in-pit Resources (JORC compliant) Project View Project Highlights Uryakh project is wholly owned by Nordgold U/G, open pit pre-feasibility study to be completed in 2018 Three of six known ore zones are in the current model. Further drilling will increase resource and life of mine by incorporating other zones Preliminary metallurgical tests showed recovery from >90% using conventional CIL and gravity Uryakh is located in the region hosting other Nordgold Russian 500m assets 8
Progressing the Montagne d’Or Project Montagne d’Or Project Overview Future Open Pit and Mine facilities Model French Guiana, 80 km from Location Location port of St Laurent Infrastructure Airstrip, all-season road, camp Mine Type Open pit Initial Capex US$361 million Project parameters Possible start-up 2022 year Average 200+ Koz; LoM 12 years production BFS completed in March 2017; Development permitting process is about to start Stage Deposit Cross Section and can take up to 2 years Project Highlights Nordgold owns 55.01% and is a project operator; Columbus Gold owns remaining stake World-class ore body: P+P in-pit Reserves 2,7 Moz at 1.58 g/t; M+I Resources of 3.9 Moz at 1.41 g/t gold Straightforward metallurgy: gravity + cyanidation. Excellent recovery - averaged at around 94% As per BFS, after-tax NPV of US$370 million at 5% and IRR is 18.7% at a gold price of $1250; all-in sustaining costs are 779 $/oz Preliminary ESIA was completed in Q1 2015, completion of full 9 ESIA is expected in Q4 2017
Expanding the Pistol Bay Project Project location map Pistol Bay Project Overview Arctic Canada, Nunavut Territory, on the coast Location of Hudson Bay – 768 km2 tenement package Location Accessible by air or by sea with about 5-month Infrastructure navigation period. Village, port, airstrip and all season road on site. Mine type Open pit, high grade parameters Project Development Advanced exploration, 2017 drilling programme Stage underway 742 koz at 2.94 g/t Inferred resources (JORC Resources compliant) Pistol Bay, Vickers ore body and pit shells Project Highlights Nordgold completed acquisition of Pistol Bay poject in October 2016 Best intersections include 8.23 g/t /156m and 5.61 g/t /163m Preliminary metallurgical tests showed recovery from 93.1% to 99.6% and indicated gold is recoverable through standard gravity and CIL methods Ongoing exploration program testing significant upside potential, 2017 budget of about $4m Au ppm 250 m 0.5 3 10 10
Despite De-listing Nordgold Continues Delivering on its Proven Strategy ♦ Commitment to best-in-class corporate governance on an ongoing basis How we ♦ Retention of full “public” management team and Board maintain position as a ♦ Continued analysis of strategic opportunities to truly enhance portfolio international, ♦ Commitment to continuing to deliver shareholder value consistent, via Free Cash Flow generation and attractive dividend pure play gold level producer ♦ Intention to re-list - enhanced operating portfolio and broader shareholder base 11
For further information please visit www.nordgold.com 12 12
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