Q2 2017 Financial & Operating Results: Friday, July 28, 2017
Q2 2017 Financial & Operating Results: Friday, July 28, 2017
Q2 2017 Financial & Operating Results: Friday, July 28, 2017
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, as well as other risks and uncertainties which are more fully described in Terangas
Annual Information Form dated March 29, 2017, and in other filings of Teranga with securities and regulatory authorities which are available at www.sedar.com. Teranga does not
undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this
report should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
This presentation is as of July 28, 2017. 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.
2
Agenda
Q&A
3
Paul Chawrun
Chief Operating Officer
Q2 Operating Highlights
5
Tracking to 2017 Production Guidance
205,000
Lower End of Guidance
57,557 114,460
52,540
49,661 49,392
45,495
39,857
32,480
Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 YTD 2017 FY 2017 Guidance
6
Tracking to 2017 Cost Guidance
All-in Sustaining Costs Mining Costs
(excluding cash/non-cash inventory movements ($/t mined)
and amortized advanced royalty costs) per ounce(4)
$2.25 $2.28
Q2 2016 Q2 2017
Milling Costs
$931 $933 ($/t milled)
$11.57
$10.46
Q2 2016 Q2 2017
Q2 2016 Q2 2017
7
Refer to Endnote (4) on the second last slide
Whats in Store at Sabodala in Q3 2017? Sabodala Mine License &
Regional Land Package (Senegal)
Gora
Q3 Mining Activities at Sabodala
Completion of mining at the Golouma South pit
Continuing to advance mining at Kerekounda
Phase 3 of high-grade Gora pit
Preproduction stripping at Golouma West pit with Mill
production expected to commence August 2017 Exploration Prospects
Mineral Resources
Masato Style Bulk
Kerekounda Tonnage Gold Trend
Golouma Style High-
Golouma Grade Gold Trend
Mining Concession
Exploration Permits
Previous Mine License
8
Nearing Completion of Banfora Feasibility Study
2019
H2 July August Anticipated first
2016 2017 2017 2018 gold pour at Banfora
9
David Mallo
Vice President, Exploration
10
Increase in Exploration Budget from $15M to $20M Driven by Positive Drill Results
Burkina Faso
Senegal Banfora $6M
Mine License $6M Golden Hill $6M
Updated 2017 Exploration Budget Regional $1M Gourma $0.5M
Senegal
$20
MILLION
Cte dIvoire
$0.5M
Burkina Faso Senegal Cte d'lvoire Operating Gold Mine/ Development Project
11
Niakafiri Deposit (Senegal)
Increased Reserves on Senegal Mine License
Majority of Added Reserves in June 30, 2017 Update Came From Niakafiri
Located ~5 kilometres from the Sabodala mill
Measured and indicated resources of ~850,000 ounces, and 205,000
ounces of inferred, inclusive of 590,000 ounces in proven and probable
reserves as at June 30, 2017(1)
Remains a very prospective target on the mine license
12
Refer to Endnote (1) on the second last slide
Banfora Mine License
Banfora Project Mine License (Burkina Faso)
Four Deposits Included in Feasibility Study
Stinger, Samavogo, Fourkoura and Nogbele
13
Golden Hill Property Location Map
Golden Hill Discoveries and Drill Targets:
Located 5km Within a Central Point
Initial drill results from both new targets are available on the Companys website in press release
July 24, 2017.
14
Ma Prospect: Initial Phase 2 Continues to Yield Positive Results
A complete table of results for all 30 core drill holes is available on the Companys website 15
in press release dated July 24, 2017.
Ma Prospect: GHDD033-DD015 Cross-Section
16
Ma Prospect: GHDD011-041 Cross-Section
17
Ma Prospect: GHDD011-046 Cross-Section
18
Nahiri Results Provides Enhanced Geological Interpretations
A complete table of results for all seven core drill holes is available on the Companys website 19
in press release dated July 24, 2017.
Peksou and Jackhammer Hill Better Than Anticipated Results
Jackhammer Hill
Never before drilled, robust gold-in-soil and auger geochemical
anomaly measuring in excess of 2 kilometres of strike extent-two
core holes drilled to obtain structural orientation and geological
information
Additional drilling is planned to coincide with the continuation of
current Phase 2 drill program at Ma scheduled early August
A complete table of results for all seven core drill holes is available on the Companys website 20
in press release dated July 24, 2017.
Peksou Prospect: GHDD003 Cross-Section
21
Peksou Prospect: GHDD004 Cross-Section
22
Early-Stage Exploration at Gourma
Gourma (Burkina Faso)
Banfora
drilling to better define mineralizing
structures with greatest potential
23
Optionality in Cte dIvoire Dianra
Randgold
Sangaredougou
Guitry
Exploration
Two new discoveries in April and positive drill
Senegal
Burkina Faso results reported in July
Cte dIvoire
STRONG
EXPLORATION BALANCE SHEET
FULLY
PERMITTED OPPORTUNITIES & SUPPORTIVE
DEVELOPMENT ON WORLD-CLASS CORNERSTONE STRONG
ASSET IN GOLD BELTS INVESTOR SOCIAL LICENSE
BURKINA FASO & AWARD-WINNING
CSR
PRODUCING
ASSET
IN SENEGAL PROVEN &
PROVIDES EXPERIENCED
FOUNDATION LEADERSHIP
FOR GROWTH TEAM
27
Q&A
Appendix
Competent & Qualified Persons Statement
The technical information contained in this document relating to the open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the Professional Engineers
Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of
National Instrument 43-101. However, he is a "Qualified Person" as defined in NI 43-101. Mr. Ling has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Ling is a "Qualified Person" under
National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Ling has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of
Professional Geoscientists of Ontario, which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Ms. Nakai-Lajoie is a full time employee of Teranga and is not
"independent" within the meaning of National Instrument 43-101. Ms. Nakai-Lajoie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Ms. Nakai-Lajoie is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the
inclusion in this document of the matters based on her compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to the underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng who is a member of the Professional Engineers Ontario,
which is currently included as a "Recognized Overseas Professional Organization" in a list promulgated by the ASX from time to time. Mr. Sepp is independent of Teranga and is a "Qualified Person" as defined in NI 43-101 and a "competent
person" as defined in the 2012 Edition of the JORC Code. Mr. Sepp has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the JORC Code. Mr. Sepp has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.
Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann is a full time employee of Teranga and is not "independent" within the meaning of National Instrument 43-101. Mr. Mann has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr. Mann is a "Qualified
Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this presentation relating exploration results are based on, and fairly represents, information compiled by Mr.
Mann. Mr. Mann has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information. The RC samples are prepared at site and assayed in the SGS laboratory located at the
site. Analysis for diamond drilling is sent for fire assay analysis at ALS Johannesburg, South Africa. Mr. Mann has consented to the inclusion in this presentation of the matters based on his compiled information in the form and context in
which it appears herein.
Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and
Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource",
"measured mineral resource", "indicated mineral resource" and "inferred mineral resource", are substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve",
"mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively. Estimates of mineral resources and mineral reserves prepared in accordance with the JORC Code would not be
materially different if prepared in accordance with the CIM definitions applicable under NI 43-101. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral
reserves. See the Appendix in the Teranga press release dated July 24, 2017 found on www.SEDAR.com for the JORC Code explanations relating to the results in this press release.
30
Open Pit and Underground Mineral Resources Summary(1)
As at June 30, 2017 Inclusive of Reserves
Total Open Pit with Stockpiles (OP) 18.45 0.98 0.58 41.02 1.35 1.78 59.47 1.23 2.36
Golouma West 1 0.62 6.07 0.12 0.62 6.07 0.12
Kerekounda 0.61 4.95 0.10 0.61 4.95 0.10
Golouma West 2 0.45 4.39 0.06 0.45 4.39 0.06
Golouma South 0.47 4.28 0.06 0.47 4.28 0.06
TOTAL OPEN PIT & UNDERGROUND 18.45 0.98 0.58 43.17 1.53 2.12 61.62 1.37 2.70
Refer to Endnote (1) on the second last slide 34
Endnotes
1) Terangas Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017 as per Company disclosure. For more information regarding Teranga Golds
Mineral Reserves and Resources and related notes, please refer to the press release title, Teranga Gold Increases Sabodala's Reserve Base to 2.7 Million Ounces: Adds
More Than 400,000 Ounces of Gold and Improves Five-Year Production and Cash Flow Profile dated July 19, 2017 accessible on the Terangas website at
www.terangagold.com.
2) This production target is based on proven and probable reserves only from the Sabodala project as at June 30, 2017 as disclosed on the Companys website at
www.terangagold.com and on SEDAR at www.sedar.com. The estimated ore reserves underpinning this production target have been prepared by a competent person or
persons (see Competent Persons Statements in the Companys Managements Discussion & Analysis for the three and six months ended June 30, 2017 available on the
Companys website at www.terangagold.com).
3) 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at 20% of the spot gold price.
4) Total cash costs per ounce, earnings before interest, taxes, depreciation and amortization (EBITDA), and average realized gold price are non-IFRS financial measures and
do not have standard meanings under IFRS. All-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs) per ounce is a non-
IFRS financial measure. The comparable IFRS measure is cost of sales per ounce, which for 2017, is expected in the range of $950 - $1,025 per ounce. Please see the Non-
IFRS Performance Measures section in Managements Discussion & Analysis for the three and six months ended June 30, 2017 available on the Companys website at
www.terangagold.com.
35
Trish Moran
Head of Investor Relations
T: +1.416.607.4507
E: investor@terangagold.com
TSX & ASX: TGZ W: terangagold.com