Nordgold: Low Cost Producer with Excellent Growth Pipeline Nikolai - PowerPoint PPT Presentation

Nordgold: Low Cost Producer with Excellent Growth Pipeline Nikolai Zelenski, CEO / NORD LI (LSE) February 2016

Disclaimer Information contained in this presentation concerns Nord by the forward-looking statements contained in these connection therewith. materials. In addition, even if the Group’s results of Gold N.V., a company organized and existing under the laws of Netherlands (the “Company”, and together with its operations, financial condition, liquidity, prospects, growth, The presentation and the information contained herein subsidiaries, the “Group”), and is for general information strategies and the development of the industry in which does not constitute or form a part of any offer or purposes only. The opinions presented herein are based the Group operates are consistent with the forward- solicitation to purchase or subscribe for securities in the on general information gathered at the time of writing and looking statements contained in these materials, those United States. The securities of the Company have not are subject to change without notice. The Company relies results or developments may not be indicative of results or been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”) . on information obtained from sources believed to be developments in future periods. The Company does not reliable but does not guarantee its accuracy or intend to update these statements to reflect events and Accordingly, the securities of the Company may not be completeness. circumstances occurring after the date hereof or to reflect offered or sold in the United States except pursuant to an the occurrence of unanticipated events. Many factors exemption from, or in a transaction not subject to, the These materials may contain forward-looking statements could cause the actual results to differ materially from registration requirements of the Securities Act. The regarding future events or the future financial performance those contained in forward-looking statements of the Company does not intend to conduct a public offering of of the Group. One can identify forward looking statements Company, including, among others, general economic any securities in the United States by terms such as “expect”, “believe”, “estimate”, conditions, the competitive environment, risks associated “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the with operating in the states where the Group operates, negative of such terms or other similar expressions. changes in the world [gold] market, as well as many other These forward-looking statements include matters that are risks specifically related to the Group and its operations. not historical facts and statements regarding the Group’s No reliance may be placed for any purposes whatsoever intentions, beliefs or current expectations concerning, on the information contained in this presentation or on its among other things, the Company’s results of operations, completeness, accuracy or fairness. financial condition, liquidity, prospects, growth, strategies, The information in this presentation is subject to and the industry in which the Group operates. By their verification, completion and change. Accordingly, no nature, forward-looking statements involve risks and representation or warranty, express or implied, is made or uncertainties, because they relate to events and depend given by or on behalf of the Company or any of its on circumstances that may or may not occur in the future. shareholders, directors, officers or employees or any other The Company cautions you that forward-looking person as to the accuracy, completeness or fairness of statements are not guarantees of future performance and the information or opinions contained in these materials. that the Groups’ actual results of operations, financial None of the Company nor any of its shareholders, condition, liquidity, prospects, growth, strategies and the directors, officers or any other person accepts any liability development of the industry in which the Group operates whatsoever for any loss howsoever arising from any use may differ materially from those described in or suggested of the contents of this presentation or otherwise arising in 2

Nordgold: Diversified Asset Base with Focus on Africa Neryungri Buryatzoloto 84 Koz 113 Koz Gross 230E+ Koz Pistol Bay Bouly Montagne Bissa Berezitovy d’Or 235 Koz 120E+ Koz 125 Koz Suzdal Aprelkovo 75 Koz 20 Koz Taparko 2015 Revenue by Geography Operating Mines 83 Koz Developing Assets Lefa 214 Koz Burkina Faso Exploration Assets 33% Russia 37% Kazakhstan Exploration Areas Guinea 8% 23% 3 Actual production in 2014

Nordgold – a Premium Gold Mining Company Low Cost Producer High Quality Pipeline   All-in sustaining costs Two compelling projects for 9m 2015 of US$759/oz in construction phase   Strong Free Cash Flow Several prospective projects in Premium generation FS and PEA/exploration phase Gold Mining Company Proven Track Record of Delivery  Track record of surpassing production and cost guidance  Bissa mine was constructed 4 ahead of time and budget

Nordgold is a LOW COST Producer Compared to Peers • H1 2015 Nordgold’s AISC was US$722/oz (down 20% YoY) - one of the lowest compared to peers • 9m 2015 Nordgold AISC was US$759/oz (down 14% YoY) • US$150.3m Free Cash Flow achieved in 9m 2015 H1 2015 All-In Sustaining Cost, US$/oz Au Eq. 1,400 1,200 1,000 722 800 600 Nordgold 400 200 0 0 5,000 10,000 15,000 Gold production, koz 5

Strong Cash Flow in Challenging Market Environment • Nordgold Operating Cash Flow (OCF) increased despite the falling gold price as a result of higher output and lower costs • Meaningful positive Free Cash Flow (FCF) generation due to strong OCF and low maintenance capex 300 $/oz $ million 450 1,400 $ million >US$400m cUS$260m US$238 1,200 US$329m US$311m 1,000 200 US$181 300 US$158 cUS$150m 800 600 100 150 US$63m 400 200 0 0 0 2013 2014 2015F 2013 2014 2015F FCF Capex OCF Gold price Nordgold consistently generates Free Cash Flow 6

Proven Strategy in a Lower Price Environment Positive Free Cash Flow Reduce Leverage Continuation of Pay Dividends to Generation at All Through Effective Debt Objectives Growth Shareholders Operating Mines Management  Comprehensive cost  Total FY2014 dividend  Feasibility Study at  Reduced cost of debt and reduction program in place at USc10.31/GDR Bouly completed in Q2 improved liquidity and at all mines  9m 2015 dividend at 2015. Construction debt profile through ongoing refinancing in 2014  9m 2015 AISC of USc14.02/GDR  Pilot stage operation at  Net debt on 31.12.2015 Achievements  Share buyback US$759/oz, a 14% improvement YoY Gross ongoing, at US$584.0m, cash programme is ongoing, construction will start in position at US$360m  All mines were FCF new program approved 2016  Net debt/ LTM EBITDA by the Board positive in 2014, 9m 2015  Montagne d’Or FS consolidated FCF as of the end of 2015 was reached US$150.3m started in Q4 2015 1.1x ♦ Continue to generate ♦ Continue to efficiently ♦ ♦ Proceed with Bouly and Maintain dividend efficiencies manage leverage with Gross construction payout ratio (30% of net 2016 Strategy target level Net debt/LTM profit attributable to ♦ Continue to invest in the ♦ Positive FCF generation at EBITDA in the range of shareholders) pipeline all mines 0.5-1.0x 7

Proven Track Record of DELIVERING on Promises Delivered Exceeded Target Parameter Promised Delivered Project Target? Expectations? Consolidated ✓ ✓ 2013 Production 770 - 850 koz Au 924 koz Au Operations ✓ ✓ Production 870 - 920 koz Au (1) 985 koz Au 2014 ON OPERATING ✓ ✓ AISC US$1,050 - 1,100 / oz (1) US$887 / oz BUSINESS ✓ - Production 925 - 985 koz Au 950 koz Au 2015 ✓ ✓ AISC US$850-900/oz US$790/oz Commercial Production Mid-2013 / January 2013 / ✓ ✓ Bissa Mine & Mine Construction 18 months 15 months ON PROJECT DEVELOPMENT ✓ - Capital Expenditure c. US$250 mln US$250 mln Bissa payback period = 21 months ✓ ✓ 2013 Production 100 koz Au 254 koz Au ✓ ✓ 2013 TCC US$700 / oz US$468 / oz 8 (1) Initial target announced on 24 th February 2014

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 engineering or construction PEA completed or FS underway Established resources Target delineation Pilot production at Gross Scoping/PEA completed or underway Pistol Bay Goengo Prognoz (1) Production in 6-8 years Production in 2-5 years Production in 3-5 years Production in 1-2 years Canada Burkina Faso Montagne d’Or Onot-Kitoy Russia Bouly 1.3 Moz reserves Ronguen French Guiana Russia 3.5 Moz resources Burkina Faso Yimi Burkina Faso Zhanok Uryakh Burkina Faso Russia Zinigma Russia Gross Yeou Kolbachi 4.5 Moz reserves Burkina Faso Kangarce Russia 8.8 Moz resources Burkina Faso Russia Lefa Burkina Faso Nerchinsk Corridor Russia Guinea Satellite Standalone Nordgold Pipeline is Robust and Balanced with Early Stage and Advanced Projects 9 (1) JV with a partner (50/50)