Denver Gold Forum Colorado Springs, Colorado September 23-26, 2018 - Building a Multi-Asset Mid-Tier
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Building a Denver Gold Forum
Multi-Asset Mid-Tier Colorado Springs, Colorado
TSX:TGZ / OTCQX:TGCDF
West African Gold Producer September 23-26, 2018
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, without limitation, 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.
2
Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa
Senegal Sabodala Gold Mali
Operation
2P Reserves: 2.7Moz(2) Niger
The Gambia
Guinea- Wahgnion Gold Burkina Faso Gourma
Bisseau
Development Exploration
2P Reserves: 1.6Moz(1) JV
Guinea
Golden Hill
Advanced Exploration
Miminvest &
JV
Afema
Sierra Exploration JVs Dianra
Benin
Leone Ghana
Côte d’Ivoire Togo
Mahepleu
Tiassale
Liberia
Guitry Sangaredougou
Afema JV
3
Refer to Appendix – Endnotes (1) and (2)
Strong Organic Growth Pipeline
Mid-Tier
Sabodala Wahgnion Golden Miminvest & Exploration Producer with
Gold Mine Gold Project Hill Afema JVs & Resource Scale and
(Senegal) (Burkina Faso) (Burkina Faso) (Côte d’Ivoire) Conversion
Diversification
4
Delivering on Our Organic Growth
West African Risk Improve Local
Experience Management Livelihoods
• Deliver projects on time • Transparency • Local recruitment
and on budget
• Fair share fiscal framework • Local progression
• Strategic relationships and promotion
with all stakeholders • Proactive community
development and dialogue • Local procurement and
• Safeguard reputation other capacity building
5
Sabodala
Senegal, West Africa
6
Bransan Lot A
Sabodala: Largest Gold Producer in Senegal Diadiako Gora
Bransan Lot A Sabodala Lot B
Sounkounko
u
2.7Moz 4.4Moz 13-Year Sabodala Lot A
Sekoto
2P Reserves (2) M&I Resources (7) Mine Life(3)
Masato
Bransan Lot B
Mamasato
Soukhoto Niakafiri
Niakafiri East Kouroundi
West
Strong 5-Year Profile with Potential to Increase Mine Life Golouma Kerekounda
Maki North
Golouma Kourouloulou
Medina
West Golouma South
Life of Mine 5 years 13 years Kobokoto Koulouqwinde
Summary(2)(3)(5)(6) (2018-2022) (2018-2030) Goumbati
West Koutoniokollo
Annual production 213koz 176koz Kinemba East
All-in sustaining costs* $885/oz $893/oz
Total free cash flow* $230M $556M
Sabodala Gold Mine
Senegal, West Africa
Permitted mining license: 291 km2
*Refer to Appendix – Non-IFRS Performance Measures 7
Refer to Appendix – Endnotes (2),(3),(5),(6) and (7)
Strong Track Record of Replacing Reserves at Sabodala
Sabodala Proven and Probable Reserves(7) (Moz)
Significant Opportunity for
Growth at Sabodala
2.8 2.7 • Sabodala village relocation provides
2.6 2.6 opportunity to drill out Niakafiri, the
largest deposit on the mine license,
1.7 1.6
1.4
and to increase remaining mine life
• Village relocation expected to be
1.5Moz of Gold Production at completed in 2019
Sabodala Since 2010
2010 2011 2012 2013 2014 2015 2017
Graph includes years for which there was a reserve update
Refer to Appendix – Endnote (7) 8
Increased FY2018 Production Guidance to at Least 230,000 Ounces
Production Increased
(oz Au) FY 2018 Production
Guidance to
at Least 230koz(3)
13%
Increase
14%
Increase At least
233,267 230,000(3)
129,412
114,460
57,557 65,381
Q2 2017 Q2 2018 H1 2017 H1 2018 FY2017 2018 Outlook
Refer to Appendix – Endnote (3) 9
Wahgnion Project
Burkina Faso, West Africa
10Wahgnion: The Next Large Long-Life Commercial Gold Mine in Burkina Faso
Wahgnion Development Project
Burkina Faso, West Africa
Permitted mining license: 89 km2
1.6Moz 2.4Moz 0.2Moz
Samavogo
2P M&I Inferred 25km from plant
Reserves(1) Resources(8) Resources(8)
Nogbele
Initial LOM Fourkoura
6km from plant
Life of Mine Summary 5 years (13 years)
Annual production(4)(5)(9) 132koz 114koz Stinger
15km from plant
All-in sustaining costs* $761/oz $904/oz
Total free cash flow* $311M $479M
Pre-production capital** ($240M)
Proposed
Pre-production operating costs ($28M) Processing Plant
Net cash flow $211M Four initial deposits at Wahgnion
(Nogbele, Samavogo, Fourkoura
*Refer to Appendix – Non-IFRS Performance Measures & Stinger) located in close proximity
**Pre-production capital costs of $240 million excludes $16 million in construction to proposed plant site
readiness activities spent prior to major construction 11
Refer to Appendix – Endnotes (1), (4), (5), (8) and (9)Significant Mid to Long-Term Upside Potential Wahgnion (Burkina Faso)
Exploration licenses:+1,000 km2 Kondandougoug
Regional Exploration Includes ~12 Drill-Ready Targets
Bagu Sud Samavogo North
• Targets have potential to become resources and are
within trucking distance of proposed plant site Korindougou
• Konatvogo: 2,000-metre NW-trending anomaly
Samavogo
between Fourkoura and Nogbele deposits. Up to 21.6
g/t Au from altered shear-hosted quartz vein outcrops
Kafina West Bazogo
• Bassongoro: 1,500-metre NNE-trending soil and
Ouahiri
auger anomaly (up to 15g/t Au). Intersection of
regional Nianka and Fourkoura structures undrilled Bassongoro
Raul Nogbele
Raul Hillside
Konatvogo
Stinger
Fourkoura
Petit Colline Muddhi
Sud
Proposed Plant Site
Reserve Deposits
12
Exploration TargetsGolden Hill
Burkina Faso, West Africa
13Houndé Belt
Burkina Faso, West Africa
Siou Pit
Advancing to Initial Resource in January 2019 M&I: 0.89 Moz ¹
Mana
M&I: 3.63 Moz ¹
Situated in the Heart of the Houndé Belt (Burkina Faso)
• 468 km2 situated ~250 km NE of Wahgnion
• One of the most prospective gold belts in the world Houndé
M&I: 2.55 Moz ³
Yaramoko
Interpreted Geology M&I: 0.81 Moz ²
• In close proximity and along strike to other deposits
Andesite
Basalt
One of West Africa’s Most Exciting Exploration Projects Teranga’s
Basin
Golden Hill
• Plan to release an initial resource estimate in January Batholith
JV
2019 based on available drilling results at Golden Hill’s Chert
Acacia JVs ⁴
most advanced prospects Granitoid
Tarkwaian
• $25 million financing secured for the future advancement
of Golden Hill through to feasibility study
Sarama Permits
Joint Venture with Boss Resources (51%, earning 80%) Karankasso JV
Inf: 0.67 Moz ⁵
• Teranga, as the operator, can earn an 80% interest
in the JV upon delivery of a feasibility study and
Sources
the payment of AUD2.5 million ¹ Semafo Corporate Presentation (Mar 2017)
² Roxgold Corporate Presentation (Feb 2017)
³ Endeavour Corporate Presentation (Feb 2017) South Houndé JV
Inf: 2.10 Moz ⁴
• Boss Resources is an Australian-listed (ASX: BOE)
⁴ Acacia Preliminary Results (Feb 2017)
⁵ Savary Corporate Presentation (Mar 2017)
uranium company M&I Resources are inclusive of P&P Reserves 14Golden Hill (Burkina Faso, West Africa)
Active and Aggressive Exploration Program Exploration licenses:468 km2
Q2 2018 Drilling Activity Ma North
Peksou 17 holes 2,156 metres
Ma Main
Jackhammer Hill 8 holes 1,318 metres Ma East
C-Zone 10 holes 1,086 metres
Ma North 8 holes 947 metres Nahiri
Plateau
Nahiri
Peksou North 4 holes 675 metres
Nahiri 4 holes 485 metres
Peksou Basin 3 holes 420 metres
B-Zone 3 holes 397 metres
Jackhammer Hill
A-Zone 1 hole 101 metres
GEOLOGY Peksou
TOTAL 58 holes 7,581 metres North
Tarkwaian Type Sediments
Volcano Sediments C-Zone Peksou
Mixed Volcano Sediments & Volcanics
Basalt A-Zone
For full details on Golden Hill, please visit www.terangagold.com B-Zone
Grantoid
Batholith
15Peksou Intrusive Complex: Discovery Opportunity
Jackhammer Hill
Similar to Structural Inter-Relationships
Observed at Ma Complex
• The Peksou intrusive complex displays lithologic
and structural commonality as well in a number
of our advanced prospects: Jackhammer Hill, Golden Hill:
Peksou and C-Zone Peksou Intrusive Complex
Burkina Faso, West Africa
• Two new drill discoveries at Peksou North and
Jackhammer Hill Diorite
Peksou Basin demonstrate that new exploration Peksou North
Peksou Granodiorite
opportunities within and adjacent to the Peksou
Basalt
intrusive complex still exist and further evaluation
In-situ RAB, auger
will be prioritized here or trench anomaly
Drill Hole Peksou Basin
Peksou
C-Zone
16Excellent Grades Near Surface and to Depth at Ma Structural Complex
Ma Structural Complex – Highlights Ma – Representative Drill Section
• Extensive structural complex consisting of numerous
mineralized structures in close proximity
• Mineralization remains open for all components of
Ma in all directions, including down-plunge of better
grade and width components:
– GHDD-047: 8 m @ 2.00 g/t gold, including 3 m
@ 4.23 g/t gold from 45 m downhole depth (DHD)
– GHDD-080: 6 m @ 5.79 g/t gold from 87 m DHD
and 17 m @ 3.45 g/t gold, including 6 m @ 6.32 g/t
gold from 122 m DHD
• Newest addition to the Ma area is Ma North,
with latest results confirming the presence of a third
mineralized breccia zone at the Ma Complex
17
17High-Grade Central Core Area at Jackhammer Hill Prospect
Jackhammer Hill – Highlights Jackhammer Hill – Representative Drill Section
• Three phases of early-stage drilling have been
completed in multiple altered shear zones
demonstrating continuity and depth extent:
– GHDD-319: 11 m @ 1.89 g/t gold, including 2
m @ 6.83 g/t gold from 41 m DHD
– GHDD-320: 8 m @ 22.1 g/t gold, including 1 m
@ 125.6 g/t gold uncut grade from 115 m DHD
– GHDD-334: 3 m @ 29.5 g/t gold, including 1 m
@ 84.7 g/t gold from 138 m DHD
18
18Strong Gold Mineralization in Correlated Zones at C-Zone Prospect
C-Zone – Highlights C-Zone – Representative Drill Section
• Gold mineralization is localized in a discrete, mafic
volcanic hosted shear zone system displaying
alteration, veining and brecciation characteristics
similar to those observed at Ma prospect
• Three phases of drilling completed, with recent results
confirming the C-zone remains open to depth and
intersects with the southeastern portion of the Peksou
prospect:
– GHDD-308: 10 m @ 4.22 g/t gold, including 1 m
@ 10.27 g/t gold from 120 m DHD
– GHDD-312: 10 m @ 2.58 g/t gold, including 2 m
@ 7.41 g/t gold from 21 m DHD, and 6 m @
3.36 g/t gold, including 2 m @ 6.60 g/t gold from
89 m DHD
19
19New Near-Surface Discoveries: Peksou North and Peksou Basin
Peksou North / Basin – Highlights Peksou North – Representative Drill Section
• Favourable early-stage near-surface results from the
first few holes from a series of scout holes at two
separate locations:
– Peksou Basin (GHDD-349): 3 m @ 14.36 g/t
gold, including 1 m @ 32.2 g/t gold uncut grade
from 27 m DHD
– Peksou North (GHDD-346): 40 m @ 1.11 g/t gold
from 24 m DHD
• Further drilling is planned to follow-up on these initial
positive results
20
20Miminvest & Afema Joint Ventures
Côte d’Ivoire, West Africa
21Côte d’Ivoire: Regarded by Many as Most Prospective Country for Gold in Africa
Mimran Exploration Joint Venture Randgold
• Joint venture partner is Teranga’s
cornerstone shareholder and largest Dianra
Mali
private employer in Côte d’Ivoire 10% Other
Guinea 4%
• 5 exploration tenements, covering areas 11%
Côte d’Ivoire
totaling +1,800 km2
Ghana Côte d'Ivoire
19% Mahepleu Perseus
Sodim Exploration Joint Venture 35%
Endeavour
• 1,400 km2 land package includes mining
Burkina
Newcrest Tiassale
license and three exploration permits Faso
21%
Endeavour Afema
• Situated within the southern extension of Guitry Sangaredougou
the Sefwi-Bibiana greenstone belt (hosts
Côte d’Ivoire represents
+35Moz gold resources in Ghana)
significant portion of the West
African Birimian Greenstone Belt
• Five shear structures (with combined
strike length of 144 km)
Operating Gold Mine/ Development Project 22Exciting Miminvest JV in Côte d’Ivoire
Randgold
Five Exploration Properties; Guitry is Most Advanced
• First-ever drilling program at Guitry consisted of a 68-hole, Dianra
3,320 metre air-core drilling program
• This program included a series of shallow, widely spaced,
multi-hole drill profiles designed to evaluate the central 1,000-
metre strike extent within an extensive gold-in-soil Côte d’Ivoire
geochemical anomaly covering approximately a 3 x 7 km area
• A number of holes provided intersections with highly Mahepleu Perseus
anomalous gold intersections warranting follow-up Endeavour
Newcrest Tiassale
• The most favourable results were:
– 24 metres grading 2.02 g/t Au (GUAC008) Endeavour
– 4 metres grading 5.80 g/t Au (GUAC015)
– 20 metres grading 6.37 g/t Au (GUAC018) Sangaredougou
• Results are currently being compiled and assessed towards
Guitry
designing a follow-up exploration program consisting of ground
geophysics, mechanical trenching and further drilling
Operating Gold Mine/ Development Project
23Afema: Situated on Prolific Gold Belts Trending from Ghana
Sefwi-Bibiani
Ahafo Gold Belt Asankrangwa
JV With Privately-Owned Sodim Limited 17 Moz Ashanti
Newmont Gold Belt
(51%, earning 70%) Gold Belt
Kumasi
Konogo
• Teranga can earn a 70% interest in the Afema Essase 1.4 Moz
mining license and exploration permits through: Côte d’Ivoire Ghana Bibiani 5.19 Moz Signature Metals
7 Moz Obotan
– completion of a 3-year $11M exploration and Resolute 5.5 Moz Akyem
community relations work program Asanko Newmont
3 Afema Chirano Obuasi 41 Moz
5 Moz
– delivery of an updated technical study Exploration Kinross
Anglo Gold Ashanti
Permits
• Teranga will fund and manage Edikan Kubi 0.9 Moz
6.6 Moz Asaute Gold Corporation
Perseus
H2 2018 Planned Exploration Bogoso/Prestea
18 Moz
• Drilling at the Afema mine license Damang 7.1 Moz
Winneba-Kibi
Gold Star
Goldfields Gold Belt
• Property-wide airborne geophysics and stream Tarkwa 24 Moz
Afema
sediment (BLEG) programs Mining Permit
Iduapriem
8.2 Moz
AngloGold Ashanti
Cape Coast
24Wrap-Up
25Strong Organic Growth Pipeline
Mid-Tier
Sabodala Wahgnion Golden Miminvest & Exploration Producer with
Gold Mine Gold Mine Hill Afema JVs & Resource Scale and
(Senegal) (Burkina Faso) (Burkina Faso) (Côte d’Ivoire) Conversion
Diversification
26Unique Cornerstone Shareholder – Tablo Corporation – Currently Owns ~22% of Teranga
Tablo Corporation Owns 23.5 Million Shares of
David Mimran, Director of Teranga, Controls Tablo Corporation Teranga at an Average Price of C$3.94
• Mr. Mimran is CEO of Grands Moulins d’Abidjan and Grands
Moulins de Dakar, one of the largest producers of flour and agri-
food in West Africa
• He is Special Advisor to the government of the Republic of Cote
d'Ivoire where he has led negotiations with the International On market
purchases
Monetary Fund, the World Bank, the European Union, and the 33%
Initial private
Government of the Republic of France placement
34%
Strong Cornerstone Investor with In-Depth Local Knowledge
• Long history of operating responsibly in Africa
• Mimran Group is the largest private sector employer in both Secondary Gryphon
Senegal and Côte d’Ivoire public acquisition
offering 8%
Committed to Teranga’s Long-Term Growth 25%
• Last November, Tablo announced its intention to add to its
holdings by acquiring up to 5% of Teranga’s issued and 1/3 of Tablo’s shares were purchased through exercise of
outstanding common shares in the open market anti-dilution right relating to acquisition of Gryphon Minerals in
October 2016 and November 2016 secondary offering 27Upcoming News Flow and Milestones
Golden Hill Wahgnion
• Regular exploration updates • Updated NI 43-101 technical report
• Initial resource estimation January 2019 • Regular construction updates
Côte d’Ivoire Sabodala
• FY 2018 gold production of at least 230koz
• Project updates for Guitry and Afema
• Continue to advance Niakafiri resettlement
28Standout Investment Opportunity as Teranga Remains Undervalued Relative to Peers
2018 Year to Date Share Price Performance EV/2P Reserves ($/oz)
(as of September 18, 2018)
B2Gold 380
Roxgold 356
33%
Endeavour 267
Semafo 230
Teranga 73
Perseus 53
(14%) (12%)
EV/2018E EBITDA
(23%) Endeavour 6.0
(25%)
Semafo 5.4
(36%)
Perseus 4.8
Roxgold Endeavour B2Gold Semafo Perseus Teranga B2Gold 4.0
Teranga 2.5
Roxgold 2.5
29
Source: BMO GoldPages – September 10, 2018Appendix
2018 Outlook: Increased Production
2018 Guidance
Operating Results Notes to 2018 Guidance
Ore mined (‘000t) 2,000 – 2,500 A. 22,500 ounces of gold production are to be sold to Franco-Nevada Corporation at
Waste mined (‘000t) 35,000 – 37,000
Total mined (‘000t) 37,000 – 39,500
20% of the spot gold price.
Grade mined (g/t) 2.50 – 3.00 B. Total cash cost per ounce sold is a non-IFRS financial measure and does not have
Strip ratio waste/ore 16.5 – 18.5
a standard meaning under IFRS.
Ore milled (‘000t) 4,200 – 4,400
Head grade (g/t) 1.70 – 1.90 C. All-in sustaining costs per ounce is a non-IFRS financial measure and does not
Recovery rate % 90.0 – 91.5 have a standard meaning under IFRS. All-in sustaining costs per ounce sold
A
Gold produced (oz) ~230,000 include total cash costs per ounce, administration expenses, share based
compensation and sustaining capital expenditures as defined by the World Gold
Cost of sales per ounce sold $/oz sold 950 – 1,025
Total cash cost per ounce sold B
$/oz sold 700 – 750
Council. All-in sustaining costs also include non-cash inventory movements and
All-in sustaining costs C $/oz sold 1,000 – 1,075 non-cash amortization of advanced royalties.
C
Non-cash inventory movements and amortized advanced royalty costs $/oz sold (50) D. Exploration and evaluation costs includes both Expensed Exploration, primarily
All-in sustaining costs (excluding non-cash inventory movements and attributable to exploration work on exploration permits, and Capitalized Reserve
$/oz sold 950 – 1,025
amortized advanced royalty costs) C Development, which is work performed on Mine Licenses.
Mining ($/t mined) 2.25 – 2.50 E. Site development costs for 2018 include village resettlement costs for the Sabodala
Mining long haul ($/t hauled) 2.50 – 3.50 village.
Milling ($/t milled) 11.00 – 12.50
General and Administration ($/t milled) 4.25 – 4.50 F. Excludes capitalized deferred stripping costs, included in mine production costs.
Mine Production Costs $ millions 162.0 – 172.0 G. Early works expenditures for 2018 includes anticipated expenditures for the
construction of Wahgnion prior to initial drawdown under the Taurus Facility which
Corporate Administration Expense $ millions 11.0 – 13.0 was executed in May 2018.
Regional Administration Costs $ millions ~2.0 H. Wahgnion construction expenditures for 2018 include anticipated expenditures for
Wahgnion post completion of the Taurus Facility.
Community Social Responsibility Expense $ millions 4.0 – 5.0
D Other
Exploration and Evaluation $ millions ~15.0
This forecast financial information is based on the following material assumptions for the
Sabodala Capital Expenditures
remainder of 2018: gold price: $1,250 per ounce; light fuel oil price $0.87/L; heavy fuel
Mine site sustaining $ millions 10.0 – 15.0
Site development costs E $ millions 10.0 – 15.0
oil price $0.60/L; Euro:USD exchange rate of 1:1.17
F
Total Sabodala Capital Expenditures $ millions 20.0 – 30.0 Other important assumptions: any political events are not expected to impact
Growth Capital Expenditures
operations, including movement of people, supplies and gold shipments; grades and
Wahgnion early works G $ millions ~30.0
Wahgnion construction H $ millions 140.0 – 160.0 recoveries will remain consistent with the life-of-mine plan to achieve the forecast gold
Total Growth Capital Expenditures $ millions 170.0 – 190.0 production; and no unplanned delays in or interruption of scheduled production. 31OJVG Acquisition Financed by Franco-Nevada
Effective Cost of Franco-Nevada Stream on
All-in Sustaining Costs per Ounce
• In connection with Teranga’s transformational (based on $1,200/ounce gold price)
acquisition of Oromin Joint Venture Group in 2014, 8.4%
Franco-Nevada invested $135 million in exchange for
a fixed and floating stream on Teranga’s future
production
• Fixed gold deliveries of 22,500 ounces per year from
2014 to 2019 with trailing 6% gold stream once fixed 4.8%
deliveries completed in 2019*
Effective Cost
• Franco-Nevada to pay 20% of spot gold price per
ounce delivered (6% stream is equivalent to a 4.8% $100
NSR royalty)
• Streaming agreement covers Teranga’s current mine $58
license and land package
2016E Post 2019
Implied Net Smelter Royalty
32Executive Team
Richard Young, CPA Paul Chawrun, P.Eng, MBA Navin Dyal, CPA David Savarie, LL.B
President & CEO Chief Operating Officer Chief Financial Officer General Counsel & Corporate Secretary
25+ years experience in gold mining 25+ years experience in mining including 13 years experience in mining including 7 11 years of Corporate Counsel experience
including 13 years at Barrick Gold including serving as Director, Technical Services years at Barrick Gold as Head of Finance in mining including his role as Deputy
finance and corporate development at Detour Gold in copper business unit General Counsel and Corporate Secretary
of Gabriel Resources
Sepanta Dorri, MAcc, MBA, CPA David Mallo, B.Sc. Geology Aziz Sy, P.Eng, M.Sc., MBA
VP, Corporate and Stakeholder Development VP, Exploration General Manager, SGO
10 years experience in mining including 5 years at 35+ years of mineral exploration in project 17+ years experience in managing gold
Xstrata Nickel in Strategic Planning and M&A. evaluation and program management, playing exploration projects, including his work as
2012 winner of the WXN Top 100 Canada's Most an integral role in acquisition, discovery, and Vice President Senegal Operations for the
Powerful Women award, Trailblazers and exploration of world-class deposits including Oromin Joint Venture Group until its
Trendsetters Category Eskay Creek and Cobre Panama acquisition in 2014 by Teranga Gold
33Board of Directors
Alan Hill, M.Eng Richard Young, CPA William Biggar, MA, CPA Jendayi Frazer, Ph.D. Edward Goldenberg, MA, BCl
Chairman President & CEO Director Director Director
35+ years experience in 25+ years experience in gold 25+ years experience in senior 17 years experience in key roles Distinguished career in policy including
mining including 20 years at mining including 13 years at executive positions in investment, supporting initiatives and policies 10 years as Senior Policy Advisor to the
Barrick Gold in project Barrick Gold in finance and mining and real estate including to build Africa’s equity and commodity Prime Minister of Canada and the Prime
evaluation and development corporate development Barrick Gold and Merrill Lynch markets. First woman U.S. Ambassador Minister's Chief of Staff in 2003. Honourary
to South Africa Doctorate of Laws from McGill University
Christopher Lattanzi, B.Eng David Mimran Alan Thomas, CPA Frank Wheatley, LL.B
Director Director & Teranga’s Largest Shareholder Director Director
30 years experience in mining CEO of Grands Moulins d’Abidjan and 30+ years mining and energy 28 years mining industry experience as
property valuation, scoping, feasibility Grands Moulins de Dakar, among the industry experience in senior director, senior officer and legal counsel.
studies and project monitoring on a largest producers of agri-food in West financial and director roles including Extensive experience in public financing,
global basis. Founder of Micon Africa. Special Advisor to the Government 6 years as VP and CFO of ShawCor project debt financing, permitting of large-
International of the Republic of Côte d'Ivoire and 11 years as CFO of Noranda scale mining projects and strategic M&A
34Qualified Persons Statement
The technical information contained in this document relating to the Sabodala and Wahgnion 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. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of 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 "Qualified Person" under NI 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. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI 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 "Qualified Person" under NI 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 Sabodala underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng., of Roscoe Postle Associates Inc. (“RPA”), who is
a member of the Professional Engineers Ontario. Mr. Sepp is “independent” within the meaning of NI 43-101. Mr. Sepp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a “Qualified Person” under NI 43-101 Standards of Disclosure for Mineral Projects. 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 was a full time employee of Teranga during the period of this resource update and is not "independent" within the meaning of NI 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 “Qualified Person” as under NI 43-101 Standards of Disclosure for Mineral
Projects. The technical information contained in this document relating to 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 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 document of the matters based on his compiled information in the form and context in which it appears in this document.
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"). There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted
into mineral reserves.
Teranga confirms that it is not aware of any new information or data that materially affects the information included in the technical reports for the Sabodala Project (August 30, 2017) and the Wahgnion Project (October 20, 2017) pursuant
to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (the “Technical Reports”), or year end results, market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements concerning the Technical Reports continue to apply and have not materially changed.
35Non-IFRS Performance Measures
The Company has included non-IFRS measures in this document, including “total cash costs”, “total cash costs per ounce sold”, “all-in sustaining costs” (“AISC”), “AISC (excluding cash / (non-cash) inventory movements and
amortized advanced royalty costs)”, “AISC per ounce”, “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce”, “average realized gold price”, “earnings before interest, taxes,
depreciation and amortization” (“EBITDA”), “free cash flow”, “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share”. These measures are intended to provide additional information only and do
not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of
operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.
“Total cash costs” figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measure of other companies. “Total cash costs per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning
under IFRS. The Company reports total cash costs on a sales basis. The World Gold Council (“WGC”) definition of AISC seeks to extend the definition of total cash costs by adding corporate general and administrative costs,
reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of
producing gold from current operations. AISC excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all
of the Company’s cash expenditures. In addition, the calculation of AISC does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the
Company’s overall profitability. The Company also expands upon the WGC definition of AISC by presenting an additional measure of “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty
costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period.
For Sabodala and Wahgnion, life of mine total cash costs and AISC figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Consolidated total cash
costs and all-in sustaining cost figures add corporate overhead costs.
“Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized
price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and
80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
“EBITDA” excludes income tax, finance costs (before accretion expense), interest income, depreciation and amortization, and non-cash impairment charges from net profits. EBITDA is intended to provide additional information to
investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes
that EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures.
“Free cash flow” is calculated as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives.
Starting in 2018, the Company adopted “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share” as new non-IFRS financial measures. These non-IFRS financial measures are used by
management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more
readily in comparison with results from prior periods. The Company calculates “adjusted net profit attributable to shareholders” as net profit attributable to shareholders adjusted to exclude specific items that are significant, but not
reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term obligations,
impairment provisions and reversals thereof, and other unusual or non-recurring items. During the second quarter of 2018, the Company also excluded the impact of foreign exchange movements on deferred taxes and other
non-cash fair value changes from adjusted net profit attributable to shareholders as management does not believe these factors to be reflective of the underlying performance of the Company.
36
For more information regarding these measures, please refer to the Company’s management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.Endnotes
1. Refers to proven and probable reserves of 1.6Moz for the Wahgnion project as per reserve estimate as at May 31, 2018. For more information regarding Wahgnion’s Mineral Reserves and related notes, please
refer to the press dated September 24, 2018 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com. Teranga expects to release an updated NI 43-101 technical report for
Wahgnion in the fourth quarter of 2018.
2. Refers to proven and probable reserves of 2.7Moz for the Sabodala project as per reserve estimate as of June 30, 2017 included in the Sabodala NI 43-101 technical report dated August 30, 2017 available on
the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.
3. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as of June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and
related notes, please refer to the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 available on the Company’s website at www.terangagold.com and on SEDAR at
www.sedar.com.
4. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at May 31, 2018. For more information regarding the Wahgnion’s Mineral Reserves and Resources
and related notes, please refer to the press release dated September 24, 2018 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com. Teranga expects to release an
updated NI 43-101 Technical Report for Wahgnion in the fourth quarter of 2018.
5. LOM assumptions include: Gold Price $1,250 per ounce
Heavy Fuel Oil (HFO): Wahgnion - $0.59 per litre; Sabodala - $0.46 per litre
Light Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period); Sabodala - $0.81 per litre
Euro to USD Exchange Rate: $1.10
6. This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project,
Senegal, West Africa, dated August 30, 2017 (the “Sabodala Technical Report”). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs.
7. Teranga’s Sabodala Mineral Reserves and Mineral Resources estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI
43-101 compliant technical report for the Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
8. Teranga’s Wahgnion Mineral Resources estimates as at May 31, 2018. For more information regarding Wahgnion’s Mineral Resources and related notes, please refer to the press release dated June 7, 2018
accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
9. Net cash flow excludes Wahgnion financing, resource development and exploration expenditures.
37Trish Moran
Head of Investor Relations
77 King Street West, Suite 2110
Toronto, ON M5K 2A1
T: +1.416.607.4507
TSX:TGZ / OTCQX:TGCDF E: investor@terangagold.com
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