2. FORWARD LOOKING STATEMENTS
Certain information included in this presentation, including any information as to the Company’s strategy, projects, exploration programs, joint venture ownership
positions, plans, future financial or operating performance and other statements that express management’s expectations or estimates of future performance,
constitute “forward-looking statements”. The words “believe”, “expect”, “will”, “intend”, ”anticipate”, “project”, ”plan”, “estimate”, “on track” and similar expressions
identify forward looking statements. Such forward-looking statements are necessarily based upon a number of estimates, assumptions, opinions and analysis made
by management in light of its experience that, while considered reasonable, may turn out to be incorrect and involve known and unknown risks, uncertainties and
other factors, in each case that may cause the actual financial results, performance or achievements of the Company to be materially different from the Company’s
estimated future results, performance or achievements expressed or implied by those forward-looking statements. Such forward-looking statements are not
guarantees of future performance. These assumptions, risks, uncertainties and other factors include, but are not limited to: assumptions regarding general business
and economic conditions; conditions in financial markets and the future financial performance of the company; the impact of global liquidity and credit availability on
the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the supply and demand for, deliveries of, and the level and
volatility of the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets, including changes in U.S.
dollar and CFA Franc interest rates; risks arising from holding derivative instruments; adverse changes in our credit rating; level of indebtedness and liquidity; ability
to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the
Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs
associated with mining inputs and labour; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; the accuracy of our reserve estimates (including with
respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; contests over title to properties,
particularly title to undeveloped properties; the risks involved in the exploration, development and mining business, as well as other risks and uncertainties which are
more fully described in the Company's prospectus dated November 11, 2010 and in other Company filings with securities and regulatory authorities which are
available at www.sedar.com. Accordingly, readers should not place undue reliance on such forward looking statements. Teranga expressly 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 in accordance with
applicable securities laws.
This presentation is dated as of February 20, 2013. All references to the Company 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.
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3. FINANCIAL RESULTS SUMMARY
Profit (Loss)
• Q4 2012 $48.8M
• 2012 $79.9M
• 2011 ($16.0M)
Cash Balance
• 2012 (1) $45.0M
• 2011 (2) $24.6M
Hedge Balance
• Jan. 29, 2013 38,105 oz.
• 2012 59,789 oz.
• 2011 174,500 oz.
Revenue
• 2012 $350.5M
• 2011 $236.9M
(1) As at December 31, 2012. Includes cash and cash equivalents and $5.3M in bullion receivables.
(2) As at December 31, 2011. Includes cash and cash equivalents and $17.0M in bullion receivables.
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4. OPERATIONAL RESULTS SUMMARY
Production
• Q4 2012 71,804 oz.
• 2012 214,310 oz.
• 2011 (1) 131,461 oz.
Cash Costs
• 2012 $627/oz.
• 2011 (1) $782/oz.
Production Costs
• 2012 $850/oz.
• 2011 (1) $1,031/oz.
Capital Expenditure (2)
• 2012 $52.9M
• 2011 $62.1M
Capitalized Reserve Development Expenditure
• 2012 $30.4M
• 2011 $14.4M
(1) For the twelve months ending December 31, 2011
(2) Excluding capitalized reserve development expenditure.
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5. 2013 OUTLOOK
Production Guidance
• 190,000 - 210,000oz. at cash costs of $650 - $700/oz.
• Material mined 24% higher than in 2012
• Ore milled 37% higher than in 2012
Costs
• Gross costs increasing $30M or 20%
• Unit costs per tonne to decrease
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6. FISCAL
Tax Assessments
• Senegal tax authority has levied $36M in tax assessments
against the Company
• Reviewed with our legal counsel and concluded to have no
merit
Contribution Tax
• New Senegalese law was passed to impose a 5%
“contribution” on the sale of products from mines and quarries
• Stability provision in place for Sabodala
• Working with the Senegalese authorities in order to find a
mutually agreeable solution
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7. EXPANSION, RESERVES AND
EXPLORATION & DEVELOPMENT
Mill Expansion Completed in 2012
• Continuing our mill optimization work
• Capacity - 3.5Mtpa of 100% hard ore and 6Mtpa of 100%
oxide ore
• Processing ~95% hard ore in 2013
• Expect design capacity by end of Q2
Mill Production
• Objective is to produce a base of 200,000oz. from the mine
license alone
• Phase 1 Vision: Increase production to 250,000 – 350,000oz.
• Gora will be additive to our mine license production for
an annual total of ~250,000oz.
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8. MOST ADVANCED SATELLITE
DEPOSIT - GORA
Economics
• Capital cost est. $45M - $50M
• Est. total cash cost to average $675 - $700/oz.
• NPV (5%) at $1500/oz. of $105 million
• IRR 69%
Open Pit
• 26km from mill
• Technical Study and ESIA complete – initiating
permitting Q1’13
• Proven & Probable reserves of 285,000oz. at
Source – Typical section of Gora looking South West, 2012.
4.2gpt.
• Estimated 4 year mine life
• Stripping ratio of 19:1
• Estimating production to start in 2014
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9. RESERVES & RESOURCES(1,2)
• Reserves remain similar to that of 2011 net of production
• Focused on growing our reserves and are confident that we will
add reserves on the ML
• M&I resources increased 34% to 2.9Moz.
Proven Probable Proven and Probable
Deposit Tonne Tonne Tonne
Grade Au Grade Au Grade Au
s s s
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 6.55 1.5 0.315 11.07 1.24 0.443 17.62 1.34 0.758
Sutuba - - - 0.37 1.40 0.017 0.37 1.40 0.017
Niakafiri 0.23 1.69 0.013 7.58 1.12 0.274 7.81 1.14 0.287
Gora 0.57 4.07 0.074 1.53 4.27 0.21 2.1 4.22 0.284
Stockpiles 7.32 1.02 0.24 - - - 7.32 1.02 0.24
Total 14.67 1.36 0.642 20.56 1.43 0.944 35.23 1.40 1.586
Measured and
Measured Indicated
Indicated
Deposit Tonne Grad Tonne Grad
Tonnes Grade Au Au Au
s e s e
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Sabodala 28.06 1.24 1.12 31.47 0.96 0.97 59.53 1.09 2.09
Sutuba - - - 0.50 1.27 0.02 0.50 1.27 0.02
Niakafiri 0.30 1.74 0.02 10.50 1.10 0.37 10.70 1.12 0.39
Gora 0.49 5.27 0.08 1.84 4.93 0.29 2.32 5.00 0.37
Total 28.85 1.32 1.22 44.31 1.16 1.65 73.05 1.22 2.87
(1) Please see page 15 for Competent Persons Statement relating to this reserves estimate.
(2) Based on assays received as of August 2012.
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10. POTENTIAL TO EXPAND THE ML
GOLD MINERALIZATION INVENTORY
• Potential to expand gold inventory on ML with the
33km2 objective of increasing mine life to the year 2020/25
SABODALA PIT –
MAIN FLAT EXTENSION /
LOWER FLAT ZONE
SAMBAYA HILL
SUTUBA
DINKOKHONO
NIAKAFIRI / NIAKAFIRI WEST /
SOUKHOTO
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11. EXPLORATION - ML
• Drill program for the Sabodala pit to be completed in Q1’13
• Targeting new pit design for mid-year
• Conduct an underground analysis in the second half of the
year
• Drilling in 2012 extended the Masato mineralized limits
defining approximately 700,000oz. of Inferred Resource
• Expect to begin drilling at Niakafiri by mid-year
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12. EXPLORATION – RLP
• Currently have 10(1) exploration permits ~1,200 km2 of land
surrounding our 33 km2 ML
• 2012 - Over 100,000m drilled, 25 anomalies, $20M
• Highlights from the 2012 drilling program;
• Discovery of a new prospect at Tourokhoto-Marougou
• Identification of significant mineralization at Saiensoutou
• 2013 budget - $10-15M
• Focus is on five priority targets
• Other targets will be followed up in 2014
• Committing a minimum budget of $20M for exploration
programs on the ML and RLP
(1) The Company’s 11th exploration permit, Sabodala North West, was not renewed by the Government in June
2012. The Company has since appealed this decision and is awaiting a response from the Government
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13. PROPERTIES IN VARYING STAGES
OF ASSESSMENT WITHIN RLP
1,200km2 NINYENKO /
SORETO
DIABOUGOU
SAIENSOUTOU
TOUROKHOTO
(Main and Marougou)
35km from Mill
GOUMBOU GAMBA
GORA
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14. FOCUS IS ON CONTINUED GROWTH
Focused on Growing Reserves
• To secure a reserve life to year 2020/25
• Growth through exploration
• Growth through regional opportunities (JV’s, acquisitions)
Focused on Growing Production
• Phase 1: 250,000 – 350,000oz. annual production by
leveraging existing mill and land package
• Phase 2: 400,000 – 500,000oz. annual production, will
require another mill expansion
Focused on Building Financial Strength
• Eliminating hedge book
• Expanding cash margins
• Increasing cash balance
• Use free cash flow to self-fund growth strategy
• Focusing on the ounces that provide the best returns
• Increase earning and cash flow per share (minimize dilution)
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15. COMPETENT PERSONS STATEMENT
The technical information contained in this Report relating to the mineral reserve estimates within the Sabodala, Sutuba, Niakafiri and Gora deposits and the Stockpiles, is
based on information compiled by Julia Martin, P.Eng., MAusIMM (CP), a full time employee with AMC Mining Consultants (Canada) Ltd., is independent of Teranga, is a
“qualified person” as defined in NI 43-101 and a “competent person” as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Ms. Martin has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity she
is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Ms Martin has reviewed and accepts responsibility for the reserve estimates disclosed above. Ms Martin has consented to the inclusion in the report of the
matters based on her information in the form and context in which it appears in this Report.
The technical information contained in this Report relating to the mineral resources is based on information compiled by Ms. Patti Nakai-Lajoie, who is a Member of the
Association of Professional Geoscientists of Ontario. Ms. Patti Nakai-Lajoie is full time employee of Teranga and is not “independent” within the meaning of National
Instrument 43-101. Ms. Patti 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Ms. Patti Nakai-Lajoie is a “Qualified Person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.and she
consents to the inclusion in the report of the matters based on her information in the form and context in which it appears in this Report.
The technical information contained in this Report relating to exploration results is based on information compiled by Mr. Martin Pawlitschek, who is a Member of the
Australian Institute of Geoscientists. Mr. Pawlitschek is a consultant of Teranga and is not “independent” within the meaning of National Instrument 43-101. Mr.
Pawlitschek 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr.
Pawlitschek is a “Qualified Person” in accordance with NI 43-101 and he consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears in this Report.
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