2. 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 April 29, 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.
4. 4
FOCUSED
ON GROWTH
THROUGH:
GROWING
RESERVES
GROWING
PRODUCTION
FINANCIAL
STRENGTH
Q1 2013 OPERATIONAL RESULTS
Production - 68,301oz. - 63% higher than Q1 2012
due to higher grade & higher throughput
Cash Costs - $535/oz - 18% lower than Q1 2012
while gross costs increased by 14% due
to higher mining and processing rates
Cash Position(1) - $57.1M – 27% higher than FYE 2012
Tonnes Mined - 18% higher than Q1 2012
Ounces Mined - 60% higher than Q1 2012
Tonnes Milled - 21% higher than Q1 2012
(1) Includes cash, cash receivable and $6.1 million of bullion receivable.
5. 5
Finalized $50M equipment finance facility with Macquarie:
• Replaces the Societé Generalé finance lease facility
• Provides financing for equipment at Sabodala pit and Gora
• $22.7M outstanding at March 31, 2013 with a further $4.3M to
be drawn down in Q2 at final delivery of Sabodala equipment
• Remaining $23M reserved for future equipment drawn-downs as
required
Hedge free as of April 15, 2013:
• Enables Teranga to maximize cash margins on each ounce
produced
STRENGTHENING THE BALANCE SHEET
6. 6
Provides for long-term partnership through:
• Price and formula to acquire Government’s additional option on
satellite deposits and to incorporate these into the existing ML and
fiscal regime
• Supporting drilling of the Niakafiri deposit on the ML
• Extending the ML by five years to 2022 and five key exploration
licenses by 18 months
• Ensuring full access to exploration targets currently occupied by
artisanal miners
• Settling all outstanding tax assessments
• Resolve the Special Contribution Tax of 5% through an increase in
royalties to 5% and accelerated dividend payments
AGREEMENT WITH GOVERNMENT
7. 7
GOVERNMENT OPTION FORMULA - GORA
Initial Payment Example Gora
Reserves per feasibility study (oz.) 285,000
Recovery rate 95%
Recovered reserves (oz.) 270,750
Less government royalties 13,538
Recovered ounces to shareholders (oz.) 257,213
Average realized gold price last 12 months $ 1,650
Reserve payment percentage 1.00%
Reserve payment dollars per ounce $ 16.50
Payment due on production maximum $10 million $ 4,244,006
Additional payments required when:
1. Increase in the gold price
2. Increase in production
3. Exceeds $10 million cap
8. 8
WHAT IF PRODUCTION/PRICE CHANGES?
No Change in Production/Gold Price
Year 1 Year 2 Year 3 Year 4
Cumulative production (oz.) 67,500 135,000 202,500 270,750
Less government royalties 3,375 6,750 10,125 13,538
Cumulative production to shareholders 64,125 128,250 192,375 257,213
Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650
Reserve payment percentage 1.00% 1.00% 1.00% 1.00%
Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50
Cumulative payment due $ 1,058,063 $ 2,116,125 $ 3,174,188 $ 4,244,006
Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006
Payment due $ - $ - $ - $ -
* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
Change Gold Price
Year 1 Year 2 Year 3 Year 4
Cumulative production (oz.) 67,500 135,000 202,500 270,750
Less government royalties 3,375 6,750 10,125 13,538
Cumulative production to shareholders 64,125 128,250 192,375 257,213
Weighted average realized gold price ($/oz.) - increase gold price $ 1,650 $ 1,700 $ 1,750 $ 1,800
Reserve payment percentage 1.00% 1.00% 1.00% 1.00%
Reserve payment dollars per ounce $ 16.50 $ 17.00 $ 17.50 $ 18.00
Cumulative payment due $ 1,058,063 $ 2,180,250 $ 3,366,563 $ 4,629,825
Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006
Payment due $ - $ - $ - $ 385,819
* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
Change in Production
Year 1 Year 2 Year 3 Year 4
Cumulative production (oz.) - increase in production 75,000 150,000 225,000 300,000
Less government royalties 3,750 7,500 11,250 15,000
Cumulative production to shareholders 71,250 142,500 213,750 285,000
Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650
Reserve payment percentage 1.00% 1.00% 1.00% 1.00%
Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50
Cumulative payment due $ 1,175,625 $ 2,351,250 $ 3,526,875 $ 4,702,500
Initial Payment / Subsequent Payments $ 4,244,006 $ 4,244,006 $ 4,244,006 $ 4,244,006
Payment due $ - $ - $ - $ 458,494
* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
9. 9
WHAT IF WE EXCEED THE $10M CAP?
Exceeds $10 million over time with gold price constant Still under cap First pay over cap Subsequent pay Subsequent pay
Cumulative production (oz.) 600,000 700,000 800,000 950,000
Less government royalties 30,000 35,000 40,000 47,500
Cumulative production to shareholders (oz.) 570,000 665,000 760,000 902,500
Weighted average realized gold price ($/oz.) $ 1,650 $ 1,650 $ 1,650 $ 1,650
Reserve payment percentage 1.00% 1.00% 1.00% 1.00%
Reserve payment dollars per ounce $ 16.50 $ 16.50 $ 16.50 $ 16.50
Cumulative payment due $ 9,405,000 $ 10,972,500 $ 12,540,000 $ 14,891,250
Initial Payment / Subsequent Payments $ 10,000,000 $ 10,000,000 $ 10,972,500 $ 12,540,000
Payment due $ - $ 972,500 $ 1,567,500 $ 2,351,250
* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
Exceeds $10 million over time gold price increases Still under cap First pay over cap Subsequent pay Subsequent pay
Cumulative production (oz.) 600,000 700,000 800,000 950,000
Less government royalties 30,000 35,000 40,000 47,500
Cumulative production to shareholders (oz.) 570,000 665,000 760,000 902,500
Weighted average realized gold price ($/oz.) $ 1,650 $ 1,700 $ 1,750 $ 1,800
Reserve payment percentage 1.00% 1.00% 1.00% 1.00%
Reserve payment dollars per ounce $ 16.50 $ 17.00 $ 17.50 $ 18.00
Cumulative payment due $ 9,405,000 $ 11,305,000 $ 13,300,000 $ 16,245,000
Initial Payment / Subsequent Payments $ 10,000,000 $ 10,000,000 $ 11,305,000 $ 13,300,000
Payment due $ - $ 1,305,000 $ 1,995,000 $ 2,945,000
* Cumulative production calculation performed annually after year end and if payment due, paid by June 30th of the following year.
10. 10
Reduced discretionary spending in 2013:
• Exploration expense (Regional Land Package) exploration
reduced to $3M from $10 - $15M
• Capitalized reserve development (Mine Licence) exploration
expense expected at the low end of $5 - $10M
• General & Administrative reduced to $13M from $15 - $20M
• Gora development expenditure reduced to $5 - $10M from
$45 - $50M, of which $23M was to be financed via the new
mobile equipment loan
• Capitalized deferred stripping at the Sabodala pit now
expected at the bottom end of the original range of $35 - $40M
• Mine site capex at the low end of guidance range $20 - $25M
Reiterating 2013 Guidance:
• Production: 190,000 – 210,000oz.
• Cash Costs: $650 - $700/oz.
GENERATING FREE CASH FLOW IN 2013
11. 11
SABODALA PIT –
MAIN FLAT EXTENSION /
LOWER FLAT ZONE
DINKOKHONO
• Potential to expand gold inventory on
ML with the objective of increasing
mine life to the year 2020/25
ML EXPLORATION $5 MILLION
33km2
NIAKAFIRI & NIAKAFIRI
WEST
SOUKHOTO
13. 13
• Agreement in Principle signed with Government
• Good first quarter operationally and financially
• Reduction in discretionary spending in 2013 to produce
free cash flow
• 100% hedge free, expect margin expansion and
increased earnings, cash flow and free cash flow
• Retaining our focus on extension of reserve life
SUMMARY SLIDE
14. 14
COMPETENT PERSONS STATEMENT
The technical information contained in this presentation 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 presentation.
The technical information contained in this presentation 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 presentation.
The technical information contained in this presentation 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 presentation.
15. 15
APPENDIX - 2013 DISCRETIONARY SPEND
REDUCED TO GENERATE FREE CASH FLOW
Revised Guidance Original Guidance
Operating results
Production (oz) 190,000 - 210,000 190,000 - 210,000
Total cash cost (incl. royalties)1,2
($/oz sold) 650 – 700 650 – 700
Exploration and evaluation expense ($ millions) 3.0 10.0 – 15.0
Administration expenses ($ millions) 13.0 15.0 – 20.0
Capital expenditures ($ millions)
Mine site 20.0 20.0 - 25.0
Capitalized reserve development 5.0 5.0 - 10.0
Gora development costs
Mobile equipment 5.0 30.0 - 35.0
Site development 5.0 15.0 - 20.0
Total Gora development costs 10.0 45.0 - 50.0
Capitalized deferred stripping2
35.0 35.0 - 40.0
Total capital expenditures 70.0 105.0 - 125.0
2
Includes the impact of adopting IFRIC 20 – Stripping Costs in the Production Phase of a Surface Mine.
For the year ended December 31, 2013
1
Total cash cost per ounce is a non-IFRS financial measures with standard meaning under IFRS.
