High Grade, Low Cost Gold Producer in West Africa · TSX: ROXG 5 US$769/oz @15.3 g/t US$895/oz @9.1...
Transcript of High Grade, Low Cost Gold Producer in West Africa · TSX: ROXG 5 US$769/oz @15.3 g/t US$895/oz @9.1...
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2018 TD Securities Mining Conference | January 2018
Mining High Grade Gold
in Burkina Faso
TSX: ROXG
High Grade, Low Cost Gold
Producer in West Africa
December 2019
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2TSX: ROXG
This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of measured,
inferred and indicated mineral resources and proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and/or reserves
and the expansion potential of existing mineral resources/reserves and the expansion potential of mining operations including with respect to proposed development at Bagassi South and the anticipated timing
thereof; (ii) proposed exploration and development activities (including reinvestment in operating mines), and the anticipated cost, nature, success and timing thereof, as well as any potential resulting
mineralization and/or margin potential; (iii) production, earnings, recovery rates, throughput, margin, and cost guidance as well as future sources of funding, cash flow, capital expenditures and exploration
budgets, (iv) permitting; and (v) expansion and growth potential and the anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, future economics and
development activities related thereto, and other future production and anticipated grades; (vi) expectations the Company will be within its 2019 cost guidance; (vii) statements that are not of historical fact; (viii)
anticipated production and resource per share growth; (ix) future external growth opportunities including with respect to the Séguéla gold project and other permits, and the potential prospectivity thereof; and
(x) the development potential of the Séguéla gold project and the forthcoming Preliminary Economic Assessment and an upgraded Mineral Resource estimate for the Séguéla Gold Project anticipated for release
in Q4 2019. For further details regarding the Yaramoko project, please refer to the technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” dated December 20, 2017 (the “Yaramoko
Technical Report”) and the technical report prepared for the Séguéla Gold Project entitled “NI 43-101 Technical Report, Séguéla Project, Worodougou Region, Cote d’Ivoire” dated July 23, 2019 (the “Séguéla
Technical Report” and together with the Yaramoko Technical Report, the “Technical Reports”.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking
information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this presentation is based on
certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the potential expansion of
mining operations, the realization of resource estimates and reserve estimates, gold metal prices, the timing, success and amount of future exploration and development expenditures, and materials to continue
to explore and develop the Yaramoko project and other property interests in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals and
permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources
and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources and/or reserves may not be established, or the anticipated
expansion potential of existing mineral resources/reserves or mining operations may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to
increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply
risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or
regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, risks that closing
and environmental risks. Please refer to the 2019 Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on August 13, 2019 for political, environmental or other risks that could materially
affect the development of mineral resources and mineral reserves and other forward looking matters. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information.
These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-
looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Unless stated otherwise herein, the following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented in this
presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Dr. Belinda van Lente (CSA Global (UK) Ltd), Dr. Matthew Cobb (CSA Global Pty Ltd.), Paul Criddle, Chief Development Officer (Roxgold), and Paul
Weedon, VP Exploration (Roxgold).
All amounts are in U.S. dollars unless otherwise stated.
Cautionary Statement
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3TSX: ROXG
Roxgold – Compelling Investment in the Gold Sector
See Appendix – Endnote 1. All amounts in US dollars
Operating the high-grade Yaramoko Gold Mine
located on the Houndé belt in Burkina Faso
▪ Gold production of 145,000 – 155,000 oz expected in 2019
▪ Maintains high margins - 2019 guidance of:
▪ Cash operating cost1 - $440 -$470/oz
▪ AISC1 - $765 -$795/oz
▪ Cash flow from mining operations1 of $68 million or $0.18/share in first
nine months of 2019
Attractive Growth Opportunities
▪ Séguéla Gold Project advancing rapidly with PEA expected in H1/20
▪ Large and highly prospective land position in Côte d’Ivoire covering
~3,298km2
▪ Potential resource growth and regional exploration at Yaramoko
Burkina Faso
Mali
Ghana
Benin
TogoNigeria
Guinea
Senegal
Mauritania
Côte d’IvoireLiberia
Niger
Atlantic
Ocean
Yaramoko Gold Mine
Flagship Asset
Séguéla Gold Project
AFRICA
Disciplined Capital Management
▪ Strong balance sheet and cashflow provides liquidity and financial flexibility
▪ Disciplined approach to investing in growth through organic exploration
and/or external opportunities
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371.1M 371.5M
2016 Q3 2019
See Appendix – Endnote 1
SHARES OUTSTANDING
0%
M&I RESOURCES
CASH FLOW1 RETURN ON EQUITY1
738koz
1,323koz
2016 2018
+77%
Per Share
105-115koz
145-155koz
2016 2018
+35%
Per Share
PRODUCTION GUIDANCE (YEAR +1)
US$0.16/shr
US$0.24/shr
2016 2018
+50%
Per Share
7%
23%
2016 2018
+229%
Delivering Value to Shareholders by Executing on Per Share Growth
Continuing to Focus on Organic and Accretive Growth
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5TSX: ROXG
US$769/oz
@15.3 g/t
US$895/oz
@9.1 g/t
2017 Q3 2019
127koz
145-155koz
2017 2019G
730 tpd
1,250 tpd
2017 Q3 2019
Proven Track Record on Operating Performance and Cost ControlProduction and throughput improvements while managing costs and margins
DAILY THROUGHPUT PRODUCTION
OPERATING COSTS1 OPERATING MARGIN
+18%
US$208/t
US$148/t
0
50
100
150
200
250
2017 Q3 2019
-29% +16%
+71%
See Appendix – Endnote 1
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Operating Costs Improvements Continue and Margins ExpandQ3 2019 operating costs reduced by 16% on a per tonne basis compared to Q3 2018
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
0
50
100
150
200
250
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Head
Gra
de (
g/t
Au
)
Cash
Op
era
tin
g C
ost
(U
S$/t
)
Cash operating cost (tonne) Head grade (g/t Au)1
$739 $780 $724
$895
0
200
400
600
800
1,000
1,200
1,400
1,600
Q4 2018 Q1 2019 Q2 2019 Q3 2019
Cash operating cost Total cash cost
Mining operating margin AVG realized gold price
Operating MarginsCash Operating Cost and Head Grade
See Appendix – Endnote 1
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2019 Third Quarter Production Highlights
Gold production of
33,036 oz
Recovery Rate
98.0%
Ore Processed
114,036 t – 13% above nameplate
Average head grade
9.1 g/t Au
Ore Mined
131,366 t
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Yaramoko Gold Mine – Reserves and Resources*
Size Grade
Proven & Probable
Reserves
658k ounces 8.2 g/t
Measured & Indicated
Resources
827k ounces 12.1 g/t
Inferred 191k ounces 12.4 g/t
Yaramoko – Reserves and Resources UpdateMaintained reserve inventory extending mine life
▪ Updated Reserve and Resource Statement announced in
July 2019
▪ Significant conversion of Inferred to Indicated Resource
▪ Maintained reserve inventory at 658K ounces following 260K
ounces of production in 2017 and 2018
▪ 1.2 million ounces of Measured and Indicated with
cumulative production
*As of Dec 31st, 2018.
0
200
400
600
800
1,000
1,200
2014 2016 2018
Measured Indicated Cumulative Production
Historical M&I Resources – 1.2M oz
See Appendix for Yaramoko Reserve and Resource Statements
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▪ Significant conversion of Inferred
to Indicated Resource
▪ Improved understanding of key
mineralization controls through
detailed mapping and supported
by geostatistics
▪ Structural repetition of high-grade
zones becoming apparent
▪ Planning underway for dedicated
underground drill platform for
further infill and depth extension
drilling in H2 2020
▪ 55 Zone remains open at depth
Resource Growth - 55 Zone
High-grade shoot extended to 1.2 km below surface
See Appendix for Yaramoko Reserve and Resource Statements
Resource Drilling Platform
@ 5066L June 2018
Development @ 4845L June 2019
Resource Drilling Platform
@ 4700L Aug-Dec 2020
Resource Drilling Platform
@ 4300L in 2022
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Resource Growth – Bagassi South
QV1 Structure – Significant Resource Upgrade
▪ Substantial upgrade
of Inferred to
Indicated and
increase in Inferred
▪ Deep drilling down
plunge highlights
structural continuity
Mafic dyke
See Appendix for Yaramoko Reserve and Resource Statements
YRM-18-DD-BGS-393
66.6 g/t over 0.4m
YRM-18-DD-BGS-371
20.9 g/t over 2.3mYRM-18-DD-BGS-435
16.1 g/t over 0.5m
YRM-18-DD-BGS-437
10.2 g/t over 2.3m
YRM-19-DD-BGS-459
10.7 g/t over 2.1m
YRM-18-DD-BGS-428
55.8 g/t over 0.9m
YRM-18-DD-BGS-406
15.5 g/t over 1.8m
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Yaramoko Regional ExplorationFocus on exploring the regional land package
▪ Reconnaissance RC and diamond core drilling at
Tarkwaian West, SAN, 109 Zone, Kaho
intersected several zones of extensive shearing
with associated alteration, quartz veining and
pyrite
▪ Several soil anomalies identified from the
recently completed auger drilling at the Kaho
grid along the Yaramoko Shear, and across the
San and 300 Zone grids
▪ Data compilation underway to further refine the
regional lithogeochemical model and integrate
the large data sets collected during 2019
55 Zone
QV1
QV’
Kaho
109 Zone
300 Zone
San
Haho
Siou 10 Km
Hounde Project
12 Km
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12TSX: ROXG
Séguéla Gold Project – Advancing Towards PEAMultiple exploration targets within 15 kilometres of Antenna Deposit
▪ Acquired Séguéla Gold Project in Côte d’Ivoire in April 2019
▪ Near surface Antenna gold deposit discovered in 2016
▪ Roxgold reported updated Antenna resource in July 2019
▪ Project rapidly advancing towards a PEA in early 2020
▪ Antenna deposit to be supported by a portfolio of high-
quality satellite pits along the main structures of the
Boulder-Agouti trend
▪ A 24,000 metre aircore and select RC/DD drilling program
commenced in late April 2019 testing the higher ranked
targets, including:
▪ Boulder
▪ Agouti
▪ Ancien
▪ P3
▪ Kwenko
▪ Séguéla has over 28 highly prospective exploration
targets with potential to increase resource base with low
cost near-surface ounces
Far North
P4
Barana
Gabbro
Gabbro South
Kabako East
Siakasso
Kabako South
Siakasso
North
Kwenko West
2.5km
5km
10km
0km to 5km
Access Road
Power Line
Petite Psammite
Eastern Schist
Eastern Granites
Eastern Andesitic
Package
Basalt Gabbro Dolerite
Western Granite
Antenna
N
Agouti
P3
Boulder
Kwenko
Ancien
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13TSX: ROXG
Séguéla Gold Project – Maiden Indicated Resource Declared at AntennaPreliminary Economic Assessment (PEA) expected in H1 2020
▪ Infill and extension drilling completed at Séguéla since
the Resource upgrade confirming the high-grade core as
well as extensions at depth and along strike on the
Eastern lode. Results include2:
▪ SGRC198: 3.3 g/t Au over 11m from 0m
▪ SGRC201: 1.7 g/t Au over 28m from 0m
▪ SGRC222: 5.4 g/t Au over 21m from 50m
▪ SGRC223: 5.2 g/t Au over 37m from 29m
▪ SGRD225: 1.5 g/t Au over 16m from 99m
▪ All results will be incorporated into the forthcoming PEA
and upgraded Resource estimate anticipated for release
in early 2020
See Appendix – Endnotes 2, 3 and Séguéla Gold Project Resource Statement
Mafic/Ultramafic Volcanics Mafic VolcanicsVolcaniclastics
Ryolite
Antenna Section +0.5N
SGRC222*
5.4 g/t Au over 21m from 50m
and 3.4 g/t Au over 12m from 95m
SGRC063
4.2 g/t Au over 11m from 64m and
7.0 g/t Au over 18m from 96M
New lode
Antenna Deposit – Mineral Resources*
Size Grade
Indicated Resource 496k ounces 2.4 g/t
Inferred 34k ounces 2.4 g/t
*As of Dec 31st, 2018.
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Boulder:▪ Key controlling structures across at least three separate lodes extending over
approximately 750m of strike length
▪ Highlights from the most recent drilling at Boulder include3:
▪ SGRC245: 3.0 g/t Au over 13m from 168m
▪ SGRC269: 14.7 g/t Au over 3m from 45m
▪ Emerging new area of focus between Boulder and Agouti
▪ Maiden Resource estimate expected in early 2020
Agouti:▪ During the quarter, 1,394 m of RC and DD drilling were completed at Agouti, with
highlights including3,4:
▪ SGRC231: 2.5 g/t Au over 9m from 33m
▪ SGRC315: 15.3 g/t Au over 13m from 19m
▪ SGRC303: 37.2 g/t Au over 4m from 32m
▪ SGRC274: 2.0 g/t Au over 9m from 2m
P3:▪ Completed infill AC drilling over approximately 1 km of strike successfully extending the
historic anomalies. Highlights included4:
▪ SGRC238: 2.6 g/t Au over 9m from 42m
▪ SGRC239: 2.2 g/t Au over 7m from 77m
▪ SGRC240: 5.5 g/t Au over 2m from 60m
Séguéla Gold Project – Prospective Satellite OpportunitiesPromising corridor between Boulder and Agouti
See Appendix – Endnote 3, 4
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15TSX: ROXG
Séguéla Gold Project – Prospective Satellite OpportunitiesAncien results push target up the value chain
Ancien:
▪ At Ancien, 10 reconnaissance RC/DD drill holes
were completed, with results highlighting a broad
zone of well-defined high grade mineralization.
▪ Highlights include3,5:
▪ SGRC329: 19.73 g/t Au over 23 m from 1m
▪ SGRC322: 11.82 g/t Au over 8m from 82m
▪ SGRC324: 8.77 g/t Au over 8m from 37m
▪ SGRD244: 5.8 g/t Au over 18m from 61m
▪ SGRC330: 5.09 g/t Au over 14m from 14m
▪ Drilling at Ancien is expected to resume in
December
Ancien Longsection
See Appendix – Endnote 3, 5
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16TSX: ROXG
2019 GuidanceAll amounts in US dollars
Exploration Spend$10 - $12 million
Sustaining Capital Expenditure$30 - $35 million
Gold Production
$12 - $15 million
Cash Operating Cost1 (per ounce produced)
$440-$470
AISC1 (per ounce sold)
$765-$795
Bagassi South pre-commercial production
development spend
145,000 – 155,000 oz
Production: • Expect a strong Q4/19 with forecast production at the low end
of 2019 guidance due to increased stoping activity at Bagassi
South and higher mined grades.
• Record gold production in October with over 16,000 ounces of
recovered gold due to a record throughput of over 44,000
tonnes and higher grades.
Costs:• Costs forecasts are expected to be at the upper end of our
2019 guidance with all-in sustaining costs also impacted by
increased royalty payments due to the higher gold price.
Exploration Spend:• Expected to increase to $14.0 million due to accelerated drill
program at Séguéla following recent successful drilling results.
Bagassi South Spend:• Bagassi South pre-commercial production development spend
was higher at $18.1 million due to the timing of declaring
commercial production.
Updated Guidance Commentary
See Appendix – Endnote 1
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17TSX: ROXG
Value PropositionCompelling investment in the gold sector
Proven Track Record
▪ Exceeded production guidance
in 2017 and 2018
▪ Low cost operator
▪ Successful project execution
delivering 55 Zone and Bagassi
South
Disciplined Capital
Management
▪ Strong balance sheet and cash
flow generation
▪ Financial liquidity and flexibility
▪ Disciplined approach to investing
in growth including assessing
external opportunities
Attractive Growth
Opportunities
▪ Séguéla Project including satellite
opportunities
▪ Significant regional upside with
extensive land package in Côte
d’Ivoire
▪ Potential resource growth at 55
Zone and Bagassi South
▪ Regional exploration at Yaramoko
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18TSX: ROXG www.roxgold.com
TSX: ROXG
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Appendix
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20TSX: ROXG
2019 Third Quarter Financial Highlights
Q3 2019 Q3 2018 YOY
Change
Gold produced (ounces) 33,036 30,532 8%
Gold sold2 (ounces) 34,200 31,400 9%
Gold sales2 $50m $38m 32%
EBITDA1 $17m $17m (2%)
Adjusted EBITDA1 $22m $16m 44%
Adjusted EBITDA Margin1 44% 41% 8%
Average realized gold price $1,481/oz $1,207/oz 23%
Cash operating cost1 (per tonne processed) $148/t $177/t (16%)
Cash operating cost1 (per ounce produced) $510/oz $454/oz 12%
Total cash cost1 (per ounce sold) $586/oz $499/oz 17%
Sustaining capital cost1 (per ounce sold) $195/oz $205/oz (5%)
Site all-in sustaining cost1,3 (per ounce sold) $781/oz $734/oz 6%
All-in sustaining cost1 (per ounce sold) $834/oz $788/oz 6%
Cash flow from mining operations1 $21m $19m 14%
Cash flow from mining operations per share1 $0.06 $0.05 14%
Adjusted earnings per share1 $0.02 $0.01 50%
Cash Operating Cost1
$510/oz produced
All-In Sustaining Cost1
$834/oz sold
All amounts in US dollars
Adjusted EBITDA Margin1
44%
Cash Flow From Mining
Operations1
$21m or $0.06 per share
See Appendix – Endnote 1
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21TSX: ROXG
Proven
Mineral Reserves
Probable
Mineral Reserves
Proven and Probable
Mineral ReservesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone 386 9.46 117 1,314 7.84 331 1,700 8.21 449
Bagassi
South49 7.50 12 612 9.12 179 661 9.00 191
Stockpiles 123 4.68 18 - - - 123 4.68 18
Total 558 8.21 147 1,926 8.25 511 2,484 8.24 658
Mineral Reserve Statement – Yaramoko Gold Mine
1. Mineral Reserves are reported in accordance with NI 43-101 with an effective date of December 31, 2018 and are included in Mineral Resources. Mineral Reserve estimates reflect the Company’s
reasonable expectation that all necessary permits be maintained. Mining dilution and mining recovery vary by deposit and have been applied in estimating the Mineral Reserves.
2. Mineral Reserves are the economic portion of the Measured and Indicated Mineral Resources. Mineral Reserve estimates including mining dilution at grades assumed to be1.2g/t and 1.0g/t gold for 55
Zone and Bagassi South respectively. Mining dilution and recovery factors vary with specific reserve sources and are influenced by several factors including deposit type, deposit shape and mining
methods.
3. The 2018 Mineral Reserves were prepared under the supervision of Benny Zhang, Principal Mining Engineer at SRK, Peng (PEO # 100115459). Mr. Benny Zhang is a Qualified Person as defined by NI 43-
101 and independent of the Company.
4. The Mineral Reserve Statement effective on December 31, 2018 is reported at a cut-off grade of 3.7 g/t gold for the Zone 55 deposit assuming metal price of US$1,300 per ounce of gold, mining cost of
US$98.19 per tonne, G&A cost of US$19.31 per tonne, processing cost of US$23.75 per tonne, and process recovery of 98.3%; and a cut-off grade of 3.1 g/t gold for the Bagassi South deposit assuming
metal price of US$1,300 per ounce of gold, mining cost of US$76.10 per tonne, G&A cost of US$19.31 per tonne, processing cost of US$23.75 per tonne, and process recovery of 98.3%. Reserve
estimates include mining dilution and mining recovery.
5. All figures have been rounded to reflect the relative accuracy of the estimates.
6. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available the Company’s website and on
SEDAR at www.sedar.com.
As of December 31, 2018
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22TSX: ROXG
Mineral Resource Statement – Yaramoko Gold MineAs of December 31, 20181
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
55 Zone
(in-situ)382 14.1 173 1,135 11.0 400 1,517 11.8 573 384 12.8 158
Bagassi South
(in-situ)37 13.5 16 445 15.3 219 482 15.2 236 93 11.1 33
Stockpiles 123 4.7 18 - - - 123 4.7 18 - - -
Total 542 11.9 208 1,580 12.2 619 2,122 12.13 827 477 12.4 191
1. Mineral Resources are reported in accordance with NI 43-101 with an effective date of March 9, 2019 and March 25, 2019, for the 55 Zone and Bagassi South respectively (collectively “Yaramoko”).
The Yaramoko Mineral Resources reflect that they have been depleted for mining and mine development up to December 31, 2018. Depletion also includes artisanal workings close to the surface.
2. The Yaramoko Mineral Resources are reported at gold grade cut-off of 3.5 g/t Au, assuming: metal price of US$1,450,oz Au, mining cost of US$85.00/t, general and administration (G&A) cost of
US$22.00/t, processing cost of US$31.00/t, process recovery of 98.5%.
3. The Mineral Resources have been classified under the guidelines of the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators
NI 43-101.
4. The Yaramoko Mineral Resource Statement was prepared under the supervision of Dr. Belinda van Lente, Principal Resource Geologist at CSA Global (UK) Ltd. Dr. van Lente is a Qualified Person as
defined in NI 43-101 and independent of the Company.
5. All figures have been rounded to reflect the relative accuracy of the estimates.
6. Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability.
7. For further information, please refer to the technical report dated December 20, 2017 and entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” available the Company’s website and
on SEDAR at www.sedar.com.
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23TSX: ROXG
As of December 31, 20181
Mineral Resource Statement – Séguéla Gold Project
Measured
Mineral Resources
Indicated
Mineral Resources
Measured and Indicated
Mineral Resources
Inferred
Mineral ResourcesTonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Tonnes
(000)
Grade
g/t Au
Ounces
(000)
Antenna - - - 6,500 2.4 496 6,500 2.4 496 400 2.4 34
Total - - - 6,500 2.4 496 6,500 2.4 496 400 2.4 34
1. Mineral Resources are reported in accordance with NI 43-101 with an effective date of March 19, 2019 for Séguéla.
2. The Séguéla Mineral Resources are reported at a gold grade cut-off of 0.3g/t Au, based on a gold price of US$1,450/ounce.
3. The Mineral Resources have been classified under the guidelines of the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators
NI 43-101.
4. The Séguéla Mineral Resource Statement was prepared under the supervision of Dr. Matthew Cobb, Principal Resource Geologist at CSA Global Pty Ltd. Dr. Cobb is a Qualified Person as defined in
NI 43-101 and independent of the Company.
5. All figures have been rounded to reflect the relative accuracy of the estimates
6. Mineral Resources that are not Mineral Reserves do not necessarily demonstrate economic viability.
7. For further information, please refer to the news release dated July 11, 2019 titled “Roxgold Announces Updated Mineral Reserves & Mineral Resources Statement including Maiden NI 43-101
Mineral Resources Statement for the Séguéla Gold Project” which is available on the Company’s website and on SEDAR at www.sedar.com.
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24TSX: ROXG
Sustainability for Success Building trust by proactive outreach and following through on promises
Received the 2018 Corporate Social Responsibility Award
and Social Cohesion Special Award for best mining
company in Burkina Faso - West Africa Mining Activities
Week (SAMAO)
Strategic Community Programs
▪ Providing employment and training opportunities to localyouth – 91% local employment at Roxgold
▪ Supporting local procurement – 90% of expenditures fromsuppliers registered in Burkina Faso
▪ Investing into community projects in education, health, waterand economic development – 40 projects in 2019
Prudent Environmental Stewardship
▪ No significant adverse environmental impacts nornoncompliance registered since the mine’s inception
▪ Positive impact on the local biodiversity with ourreforestation program (~100,000 trees planted since 2014)
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25TSX: ROXG
Health and Safety – Our First PriorityUpholding robust safety standards every day
World class safety record
▪ Lost Time Injury Frequency Rate (LTIFR) of zero per onemillion hours worked as of September 2019
▪ One Lost Time Injury (LTI) incident in 2018. The first(and only) since the commissioning of the mine in April2016
Extensive prevention programs such as 1,100 formal
workplace inspections and 18,000 hours of health
and safety training completed in 2018
Proactive malaria prevention at the mine site and
surrounding villages
Full time Emergency Response Team trained to the
Australian Certificate III in mine rescue
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26TSX: ROXG
People at YaramokoHead GradeHead Grade
Operate and built a mine together
▪ 84% Burkinabe employment (contractors included)
▪ 39% of employees from the immediate area
▪ 83% of skilled employees from Burkina
▪ 70% of process plant department team are from the immediate area of the mine site with no prior mining skills
▪ Provided 6 – 12 months of intensive training prior to start up
▪ The plant delivers ~98% recovery rates with 96% operating time
Case Study: Training local people to operate and
maintain the process plant
Investing in our people is investing in the sustainability of the company
Developing the next generation of miners
▪ Implementation of a leadership program among all our employees to increase Roxgold’s culture of excellence, teamwork and responsibility
▪ Improvement of the technical skills development program
▪ Definition of a succession planning program
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27TSX: ROXG
Vince Sapuppo, Chief Financial Officer15+ years senior finance, commercial and mergers &
acquisitions experience in mining and energy sectors
Former Roles:
▪ GM Finance - Beach Energy Limited
▪ Newcrest Mining
▪ BHP
Management Team
John Dorward, President & Chief Executive Officer 20+ years development & operating mines experience
Former Roles:
▪ VP Business Dev. of Fronteer Gold
▪ Mineral Deposits Ltd
▪ Leviathan Resources
Eric Pick, VP, Corporate Development10+ years corporate finance and mergers &
acquisitions in mining sector
Former Roles:
▪ Cormark Securities Inc.
Paul Weedon, VP, Exploration25+ years exploration, development and
production experience
Former Roles:
▪ Newmont Corp
▪ Anglogold Ashanti
Paul Criddle, Chief Development Officer20+ years operating & project development experience
Former Roles:
▪ Managing Director, Matador Mining
▪ COO, Roxgold
▪ COO, Azimuth Resources
Graeme Jennings, VP, Investor Relations10+ years capital markets experience with a focus in
the metals and mining industry
Former Roles:
▪ Nickel Creek Platinum
▪ Cormark Securities
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28TSX: ROXG
Market Summary
Covering Sell-Side Firm Analyst
BMO (under review)
Canaccord (under review)
Cormark Tyron Breytenbach
Echelon Wealth Partners Ryan Walker
Eight Capital Craig Stanley
Haywood Geordie Mark
Global Mining Research David Radclyffe
Raymond James Tara Hassan
RBC Wayne Lam
Capital Structure (as of Dec 4, 2019)
ListingsTSX: ROXG
OTCQX: ROGFF
Cash US$29 million*
Common Shares Outstanding 371.5M
Share-based Payments 19.1M
Market Capitalization ~C$357M
* As of September 30, 2019
Major Shareholders
Appian Capital 13.3%
1832 Asset Management 6.6%
International Finance Corp 6.3%
Ruffer LLP 6.2%
Insiders and Management 3.7%
Yaramoko Debt Facility
▪ Face value of long-term debt of ~US$29.1 million as of Sept. 30, 2019
▪ Interest rate of LIBOR plus 3.75%
▪ Hedging component remaining of 22,958 ounces of gold at US$1,052/oz
over the life of loan which matures in June 2021
▪ Project remains unencumbered by third party streams or royalties
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29TSX: ROXG
Endnotes
1. These are a non-IFRS financial performance measures with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the Company’s 2019 Q3 MD&A available on the
Company’s website at www.roxgold.com or www.sedar.com.
2. See news release dated July 15, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification undertaken, the
results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
3. See news release dated September 12, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification
undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
4. See news release dated November 11, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification
undertaken, the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
5. See news release dated December 2, 2019 for more information which is available on the Company’s website and on SEDAR at www.sedar.com and contains details regarding data verification undertaken,
the results and interpretation of the exploration, details regarding location, types, depths and other details of the drill holes and QA/QC information.
6. For the three-month period ended September 30, 2019, gold ounces sold, and gold sales include pre-commercial production ounces sold of 5,423 ounces and revenues of $7.9 million. The pre-commercial
production gold sales and mine operating expenses were accounted against Property, Plant and Equipment.
7. Site All-in sustaining costs excludes corporate G&A and in-country corporate costs.
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30TSX: ROXG
Notes
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31TSX: ROXG
Notes
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32
Graeme JenningsVice President Investor Relations
[email protected] | 416 203 6401
www.roxgold.com