May 2020 Corporate Presentation Disclaimer
This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Trans-Siberian Gold Plc (“TSG” or the “Company”), nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connectionwith, or act as an inducement to enter into any contract or agreement thereto. Any potential investor is made aware that an investment in any form of equity carries the risk of a potential total loss of the invested capital. Potential investors ar e therefore advised to seek professional investment, legal or tax advice pr ior to making any investment in the Company. Certain forward-looking statements may be contained in the pr es entation which include, without limitation, expectations regarding metal prices, estimates of production, operating ex penditur e, capital expenditure and pr ojec tions regarding the completion of capital projects as well as the financial position of the Company. Please note that past per for mance is no reliable indicator of future results: although TSG believe that the ex pec tations reflected in such forward-looking statements are reasonable, no assurance can be given that such ex pec tations will prove to be accurate. Accordingly, results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks.
Accordingly, TSG nor any of TSG' directors, officers, employees, advisers, as s oc iated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon this presentation or any future communications in connectionwith this presentation and any suchliabilities are expressly disclaimed.
This information is confidential and must not be passed to any third parties except to pers onal investment, legal or tax advisors of the addresses.
As of May 2020
Trans-Siberian Gold A low cost, high grade gold producer in Russia 2 Introduction
Trans-Siberian Gold A low cost, high grade gold producer in Russia 3 Introduction Overview
Organisational structure Brief History 2000 Company incorporated
100% 100% 2003 AIM listing
Management company Explorat ion & Product ion 2004 AngloGold Ashanti acquire 17.6% stake
OOO Trans-Siberian Gold ZAO Management (TSGM) Trevozhnoye Zavevo 2005 AngloGold Ashanti increase holding to 29.9% (TZ)
2006 UFG acquire 29.1% stake Corporate & Operational Footprint 2007 Vedugaand Bogunay sold for $40m
2011 Asacha mine commenced production
2016 UFG holding increased to 79.6% • Maiden Dividend UK Listing Board Changes • Interim Dividend 2017 Head Office
Asacha licence extension • CEO succession • Final Dividend Asacha Mine & 2018 Rodnikova deposit 2019 Acquisition of licence for Rodnikova deposit • Share Buyback
Trans-Siberian Gold A low cost, high grade gold producer in Russia 4 Introduction Corporate & Capital Structure
TSG Ownership Share Price Performance (LTM ) UFG Special Situations Fund L.P.* 29.8% 140 UFG Investment Company I Ltd * 12.3% 120 Charles Ryan* 8.3% 100 KST Beteiligungs AG 5.4% GBp 80 RAB Capital 4.8% 60 Florian Fenner* 3.9%
40 UFG Private Equity Fund I, L.P.* 3.3%
20 Firebird Management LLC 2.2%
0 Vadim Ognestsikov* 2.0% Petrovka GmbH* 2.0%
Source: Q4 UFG Russia Select Master Ltd.* 1.4% Capital Structure Robert Sasson * 1.3% Quilter Cheviot 1.0% Shares in issue 87,158,508 UBS Wealth Management 0.5% Shares in treasury 22,894,565 Source: Argus Vickers / public filings Share price £0.85 • * denotes connected to UFG Asset Management Market Capitalisation £74.1m • UFG is a multi-asset investment manager having invested institutional and private Net Debt £13.3m capital in Russia and CIS since 1996. • UFG’s aggregate capital commitments exceed $1.5Bn Enterprise Value £87.4m • UFG is PRI signatory Options / Warrants in issue Nil
Notes: Market Data as at 1 May 2020.
Trans-Siberian Gold A low cost, high grade gold producer in Russia 5 Introduction Board of Directors
Charles Ryan Non Executive Chairman Robert Sasson Non Executive Director • Chairman of UFG Asset Management • Partner, UFG Asset Management • EBRD, Head of St. Petersburg office • Non-executive Chairman of Deutsche Bank in Russia. • Russian Studies and International Government, Exeter University • Founder director of United Financial Group (UFG) • Principal Banker with the EBRD in London Non Executive Director • Harvard University graduate Florian Fenner • Managing Partner of UFG Asset Management • Unifund, Head of Moscow office Alexander Dorogov Chief Executive Officer • Deputy Head of Research at Brunswick Brokerage • Former CFO of the Alumina division of UC Rusal • CFA charter holder • Senior positions at Arlan, private investment fund • Financial management graduate from Finance Academy in Moscow Lou Naumovski Non Executive Director • 30yrs+ of experience working in Russia • Vice President & General Director Kinross Gold Corporation Moscow office Chief Operating Officer Eugene Antonov • SVP & GM Visa International Service Organisation (VISA), CEMEA region. • 20yrs+ experience working in the mining industry • EBRD, Senior Banker and Head of Mission for Russia • Senior positions at Kinross, Bema Gold Corporation and Teck Resources
• MBA, Rotman School of Management Stewart Dickson Non Executive Director • 10yrs+ investment banking experience • Former Head of Metals & Mining, Cantor Fitzgerald Europe • MBA, Henley Business School
Trans-Siberian Gold A low cost, high grade gold producer in Russia 6 Investment Case
Key Strengths Key Facts
Supportive, long-term shareholders: Low Cost Gold Growth Majority owned by UFG Asset Management (~72%) Producer Opportunities Beating expectations: Record production of 43,479 oz gold in doré in 2019 (FY18: 42,128 oz)
Unaudited Revenue of $63.1m in 2019 (FY18: $59.8m)
Favourable Attractive High yield stock: $21.5m in dividends paid 2016- Mining Dividend 2019. 2019 special dividend of $5.7m paid in Feb Jurisdiction 2019. Approved 21% share buyback in May 2019
Robust corporate governance
High grade mine: 7.8 g/t average in 2019 (FY18 average: 7.4 g/t) Rosnedra approval for mining license extension 6 Low gearing Robust years. Recent award of Rodnikova licence Financials Low energy costs due to Far East Russia subsidies
Strong Institutional Shareholders
Trans-Siberian Gold A low cost, high grade gold producer in Russia 7 Strategy
Becoming a premier mid-tier gold producer & developer
Enhance Utilise stable Pursue existing platform for selective operations future growth accretive opportunities M&A opportunities 1 2 3
Trans-Siberian Gold A low cost, high grade gold producer in Russia 8 2020 Priorities & Enablers
Asacha Asacha Rodnikova Other Main Zone + East Zone + +
Drilling: • Vein 25N & Vein • JORC MRE • Selective M&A • N extension 25 infill drilling • Exploration opportunities • S extension deep • Resource drilling • Judicious • Vein 18 verification • Scoping study investments or • Vein K2 • Technical studies JVs
Production Resource Growth / Future Production
FCF & Dividends Value / Capital Growth
Trans-Siberian Gold A low cost, high grade gold producer in Russia 9 Introduction Market Trends (last 90 days)
Rising Gold Price Falling Oil Price (WTI) Devaluation RUB:USD
80 85 1,800.0
80 1,750.0 60
1,700.0 75
40
1,650.0 70
1,600.0 20 65 bbl
1,550.0 US$/ 60 0
1,500.0
55
1,450.0 -20
50
1,400.0 -40 45 1,350.0
-60 40 1,300.0
Source: World Gold Council; EIA; www.ofx.com Trans-Siberian Gold A low cost, high grade gold producer in Russia 10 Asacha Gold Mine
Trans-Siberian Gold A low cost, high grade gold producer in Russia 11 Asacha Gold Mine Overview
Location Geology • Pliocene age • Low-sulphidation, quartz, sericite, adularia epithermal Au/Ag deposit • The deposit has formed in a collapsed caldera complex that consists of volcaniclastic tuffs, overlain by coarse-grained dacites- andesites and tuffs. • Two zones of mineralisation have been identified: – Main Zone – hosts the largest and most continuous veins – East Zone – veins are generally narrower and less continuous • Gold exists in a free form, forms sulphides and tellurides with silver and concretions with quartz, adularia, pyrites, chalcopyrite and argentite
Trans-Siberian Gold A low cost, high grade gold producer in Russia 12 Asacha Gold Mine Reserves & Resource Statement
JORC Reserves & Resources Statement (December 2019)
Classification Zone ’000 tonnes Au Ag Au Ag (g/t) (g/t) (‘000oz) (‘000oz) Measured Main 72 12 37 28 85
Indicated Main 124 10 48 40 193
Indicated East 43 31 39 42 54
Tota l M& I 239 14 43 111 332
Inferred Main 101 14 30 45 98
Inferred East 211 23 36 157 245
Tota l Infe r r e d 313 20 34 202 343
Notes:
1. Resources are reported above 4m*g/t Au cut-off grade
2. Resources are reported after mining depletion
3. Tonnage and grades have be e n rounded to reflect an appropriate level of precision
4. Rounding may mean that columns do not sum exactly
5. Mineral Resources are cl as si fied ac co rd in g to the definitions of the JORC Code
Trans-Siberian Gold A low cost, high grade gold producer in Russia 13 Asacha Gold Mine Operational Performance
Gold & Silver Production (Annual) Gold & Silver Production (Quarterly) 40,000 120,000.00 35,000
100,000.00 30,000
25,000 80,000.00 20,000 60,000.00 15,000
40,000.00 10,000 5,000 20,000.00 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0.00 2016 2016 2016 2016 2017 2017 2017 20172018 2018 2018 2018 2019 2019 2019 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 Gold, oz (refined) Silver, oz (refined) Gold, oz (refined) Silver, oz (refined) Ore Processed & Gold Grade AISC ($/oz)
1600
60,000.00 10.00 1400 9.00 1341 50,000.00 8.00 1200 7.00 40,000.00 1000 6.00 1049 950 30,000.00 5.00 800 850 4.00 20,000.00 3.00 600 2.00 10,000.00 400 1.00 0.00 0.00 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016201620162016201720172017201720182018201820182019201920192019 0 Ore processed, tonnes Grade, gold, g/t 2017 2018 H1 2019 2020e Trans-Siberian Gold A low cost, high grade gold producer in Russia 14 Asacha Gold Mine 2020 AISC Guidance
1,800
1,600
1,400
1,200
1,000
US$/Oz 800
600
400
200
0
Source: Company reports Trans-Siberian Gold A low cost, high grade gold producer in Russia 15 Asacha Gold Mine FY 2019 Operational Performance
Metric Unit 2018 2019 Y-o-Y Mine development metres 6,415 7,239 ▲ 12.9% Ore extracted tonnes 173,597 142,151 ▼ 18.1% Ore processed tonnes 189,695 179,373 ▼ 5.4% Grade, gold g/t 7.4 7.8 ▲ 6.2% Grade, silver g/t 22.8 23.4 ▲ 3.2% Recovery, gold % 94.9 95.3 ▲ 0.4% Recovery, silver % 76.7 81.5 ▲ 6.2% Gold in dore oz. 42,128 43,479 ▲ 3.2% Silver in dore oz. 105,069 111,557 ▲ 6.2% Gold refined oz. 46,053 43,733 ▼ 5.0% Silver refined oz. 108,191 109,851 ▲ 1.5% Gold sold oz. 45,956 43,782 ▼ 4.7% Silver sold oz. 108,749 115,801 ▲ 6.5% Gold price $/oz. 1,265 1,399 ▲ 10.6% Silver price $/oz. 15.2 16.0 ▲ 5.4%
Trans-Siberian Gold A low cost, high grade gold producer in Russia 16 Asacha Gold Mine Operations (Mining)
Mining Deposit is developed by 2x aditlevels • 200m (truck decline starts) • 240m Mining methods used: • sublevel drifts method; • layer by layer stoping method.
Annual Mine Development
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trans-Siberian Gold A low cost, high grade gold producer in Russia 17 Asacha Gold Mine Operations (Processing)
Processing • Preliminary crushing • 2 stages of semi-autogenous grinding (ball mill & SAG) • Pulp classification in hydro-cyclones • Screening (0.75 mm) • Slurry thickening in high-capacity thickener • Cyanidation & carbon-in-leach (CIL) process • Electric elution of loaded carbon under pressure using IPS technology • Acid treatment & thermal regeneration of carbon • Melting of cathode deposits into doré alloy • Cyanide destruction of slurry tailings by chlorination • Storing of neutralised tailings as diluted slurry
Trans-Siberian Gold A low cost, high grade gold producer in Russia 18 Asacha Gold Mine Operations (Grade) – LSE Gold Producers
10
9
8
7
6
g/t 5
4
3
2
1
0 Mako Albyn Syama Suakri Pioneer Malomir Blanket Asacha Yanfolila Kiziltepe Gedabek New Luika BelayaGora Ravenswood Sekisovskoye Palito / Sao Chico Palito/Sao Novoshirokinskoye Mnogovershinnoye RSG POG HGM CEY POG AAZ POG ALTN HGM HUM RSG RSG CMCL SHG AAU HGM SRB TSG
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Source: Company reports Trans-Siberian Gold A low cost, high grade gold producer in Russia 19 Asacha Gold Mine Exploration
• Ambitious exploration programme planned in 2020 • To ta l of 25,000 m planned for the 2019-2020 drill campaign over the Asacha licence area • Fully funded capital expenditure of up to $7.9 million allocated for development and exploration • Discovery of an extension of Vein 25, Vein 25 North, some 400 metres to the north • Highly encouraging drilling results from recent surface drilling indicate high grade mineralisation: 235 g/t Au, 134 g/t Ag over 1.4 m Hole ID C2012 56 g/t Au, 366 g/t Ag over 5.6 m Hole ID C2037 51 g/t Au, 55 g/t Ag over 5.5 m Hole ID C2020 49 g/t Au, 98 g/t Ag over 5.4 m Hole ID C2050 61 g/t Au, 176 g/t Ag over 4.0 m Hole ID C2047 18 g/t Au, 229 g/t Ag over 8.1m Hole ID C2053 83 g/t Au, 231 g/t Ag over 1.2 m Hole ID C2043 38 g/t Au, 450 g/t Ag over 2.1 m Hole ID C2049 35 g/t Au, 225 g/t Ag over 1.4 m Hole ID C2045 10 g/t Au, 90 g/t Ag over 4.8 m Hole ID C2022 30 g/t Au, 255 g/t Ag over 1.3 m Hole ID C2035 26 g/t Au, 21 g/t Ag over 1.2 m Hole ID C2011
• Geological modelling being updated • Drilling programme is ongoing with two full-time rigs deployed
Source: Company Announcement 27 April 2020 Trans-Siberian Gold A low cost, high grade gold producer in Russia 20 Asacha Gold Mine Exploration – Vein 25 (East Zone)
Source: Company Announcement 27 April 2020 Trans-Siberian Gold A low cost, high grade gold producer in Russia 21 Asacha Gold Mine Lower Operating Energy Costs
• Tariff levelling in Russia’s Far East – mechanism that aims to equalize energy tariffs in Russia and lower the cost burden for industrial consumers in developing Far East regions as well as increase the investment attractiveness of regional economies
24 34.8 Chukotka 2.6 5.8 2.6 3.2 Magadan region 2.2 5.2
Kamchatka
14.5 17.3 Total surcharge Total Yakutia (Sakha)
2.1 3.3 Sakhalin 2017 2018
• In 2019, TSG continued to benefit from significant energy cost savings to local producers.
• In 2020, it was confirmed that the Asacha mine will continue to receive energy subsidies at a reduced tariff. Energy tariff for H1 2020:RUR4.75/kWt, H2 2020: RUR5.07/kWt. 2020 Avg RUR 4.97/kWt Trans-Siberian Gold A low cost, high grade gold producer in Russia 22 Source: RusHydro; Company Rodnikova
Trans-Siberian Gold A low cost, high grade gold producer in Russia 23 Rodnikova Overview
Close proximity to operating Asacha mine Geology • Situated in Yelizovo District of South Kamchatka • Rodnikova high grade epithermal Au-Ag deposit is one of the largest gold fields of South Kamchatka • Located 50 km from Asacha Gold Mine and 120 km from Petropavlovsk • Low-sulfidation quartz adularia epithermal Au/Ag veins in a host rock of diorite (similar geological structure to Asacha) • Occupies an area of ~ 22 km2 • Largest vein up to 25 m wide • Access ground road ~ 5 km • Mutnovskaya geoTES ~ 21 km • The deposit is located in the vicinity of the Vilyuchinsk hot springs
• Geographic and operational synergies presented by close proximity to operating Asacha Mine
• Management expertise in bringing epithermal Au-Ag deposits to production in South Kamchatka
• +1Moz of gold Indicated & Inferred Resources (JORC Mineral Resource Estimate, 2020): initial scoping study on track for delivery in Q2 2020 Trans-Siberian Gold A low cost, high grade gold producer in Russia 24 Rodnikova Rodnikova – Development
Historical Development Timeline
1977 1977 – 92 1994 1994 - 2008 2008 2011 2014 2019 2020
Rodnikova CKGE Mining TZ Completion Mineral Reserves TZ licence TSG acquires Updated JORC deposit exploration licence exploration of Pre- Report approved expires licence for the Mineral Resource discovered work issued to work feasibility by Kamchatka exploration and Estimate “TZ” study authorities development; valid for 20 years
Key project enablers in place
ü TSG experience & know-how (10yr+ production experience) ü Infrastructure is in close proximity (sealed roads, geothermal power)
ü High grade deposit (+1Moz Au at 5g/t and 7.4Moz Ag) ü Similar deposit geology to Asacha Gold Mine
ü 20yr exploration licence ü Anticipated operational synergies
Trans-Siberian Gold A low cost, high grade gold producer in Russia 25 Rodnikova Reserves & Resource Statement
JORC Reserves & Resources Statement (December 2019)
Classification Tonne s Au Ag Au Ag (Mt) (g/t) (g/t) (‘000oz) (Moz) Rodnikovy
Indicated 3.1 5.3 16.1 519 4.3
Inferred 1.7 4.3 7.4 238 1.8
Vilyuchinsky
Inferred 1.5 5.3 7.9 253 1.3
Tota l Indicated 3.1 5.3 16.1 519 4.3
Tota l Infe r r e d 3.2 4.8 15.3 491 3.1
Notes:
1. Resources are reported above 3g/t Au cut-off grade
2. Tonnage and grades have been rounded to reflect an appropriate level of precision
3. Rounding may mean that columns do not sum exactly
4. Mineral Resources are cl as si fied ac co rd in g to the definitions of the JORC Code
Trans-Siberian Gold A low cost, high grade gold producer in Russia 26 Financial performance
Trans-Siberian Gold A low cost, high grade gold producer in Russia 27 Financial Performance Financial Results
Revenue Operating Profit
70,000,000 10% 20% 25% 10% 30% 1,668 1,402 1,256 1,146 1,248 1,260 1,265 20,000,000 60,000,000 15,000,000 50,000,000 10,000,000 40,000,000
30,000,000 5,000,000
20,000,000 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 10,000,000 -5,000,000
0 -10,000,000 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 -15,000,000
Avg. realised gold price ($/oz.) Operating Profit Operating Profit Margin
Profit before Tax Net Debt / Cash Generated from Operations
20,000,000 40,000,000 30,000,000 15,000,000 20,000,000 10,000,000 10,000,000
5,000,000 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 0 -10,000,000 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 -20,000,000 -5,000,000 -30,000,000 -10,000,000 -40,000,000
-15,000,000 Net Debt Cash generated from Operations
-20,000,000
Trans-Siberian Gold A low cost, high grade gold producer in Russia 28 Financial Performance 2019 Operational Key Performance Indicators
Refined gold sales Average realised gold price Ore extracted (‘000) Reported injuries
43,782 oz. -4.7% $1,399 +10.6% 142,151 tonnes -18.1% 7 +75%
2019 43,782 2019 1,399 2019 142 2019 7
2018 45,956 2018 1,265 2018 174 2018 4*
Average feed gold grade Average employee numbers** Ore processed (‘000) Gold recovery rate
7.8g/t +5.4% 687 -2.1% 179,373 tonnes -5.4% 95.3% +0.4%
2019 7.8 2019 687 2019 179,373 2019 95.3
2018 7.4 2018 702 2018 189, 695 2018 94.9
Notes: * Includes one fatality in 2018 Trans-Siberian Gold ** 2019 figure is as at 30 June 2019 vs. 31 December 2018. Figures are for TSG’s 100% owned subsidiary, ZAO Trevozhnoye Zarevo A low cost, high grade gold producer in Russia 29 Financial Performance Dividends – Established Track Record
Dividend Pay-out
25
2.0 21.5 20 1.0 5.7
15
1.0
US$(m) 2.3 10 4.0
5 5.5
0 2016 Special 2017 Interim 2017 Final 2018 Interim 2018 Special 2018 Final 2019 Interim Total Payout
Trans-Siberian Gold Notes: Excludes £7.6m Share Buyback announced in May 2019 A low cost, high grade gold producer in Russia 30 Summary Achievements, Future Objectives & Guidance
Achievements Objectives & Guidance • Refined gold production of 43,733oz (FY19) • FY20 production guidance of 38,000oz – 42,000oz • Gold grades improving to 7.8g/t in FY19 (7.4g/t in FY18) • FY20 Total Cash Cost guidance of $780/oz-$860/oz • AISC $850/oz (HY19) • FY20 AISC guidance $900-$1000/oz Operations • Approval of Mining Licence Extension in June 2018 to 2024 • Ambitious exploration programme underway at Asacha • Discovery off promising new vein extension, Vein 25 North • Scoping Study on Rodnikova in Q2 2020 • Acquisition of Rodnikova mineral deposit • Energy subsidy extended
• Record revenue generation of $63.1m (FY19) • FY19 Results expected in May 2020 Finance • High EBITDA margin operation of 48% (HY19) • Low gearing (Net Debt/EBITDA 0.33x) (HY19)
• Committed to returning capital to shareholders • FY20 base case guidance of $3m dividend +potential for special dividends, as appropriate Shareholder • $21.5m paid in dividends 2015-2019 Return • Favourable yield vs. peer group • $9.5m Share Buyback completed in Q2 2019
• Stable corporate structure • Increased focus on corporate development • New Board & senior management appointments Corporate • Adoption of QCA Corporate Governance Code • Relationship Agreement with UFG signed • ESG initiatives and reporting
Trans-Siberian Gold A low cost, high grade gold producer in Russia 31 Sustainability
Trans-Siberian Gold A low cost, high grade gold producer in Russia 32 Sustainability A Responsible Corporate Citizen
TSG is committedto sustainability and we striveto integrate sustainabledevelopment principles into our operating activities. We seek to ensure that our activities do not harm our employees, local communities or the environment. Instead, we want to contribute to the development of local communities, deliver long term value to our employees, and invest in environmental protection.
Linking Mining & Sustainable Development Selection of issues where Mining may Goals influence Sustainable Development Goals
• The 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) represent the world’s plan of action for social inclusion, environmental sustainability and economic development. • The mining industry has the opportunity to mobilize significant human, physical, technological and financial resources to advance the SDGs.
• The mining ac tiv ity of TSG is located in a remote, ec ologic ally sensitive, less-developed area in which we create jobs, spur innovation and bring investment and infrastructure.
• As a smaller company TSG incorporates only the most relevant SDGs into our business and operations where practicable.
Trans-Siberian Gold Source: Mapping Mining to the Sustainable Development Goals. UNDP White Paper July 2016 A low cost, high grade gold producer in Russia 33 Sustainability TSG and the UN Sustainable Development Goals: Our activities
SDG What we do How we do it
No Poverty • Pay taxes & royalties • Publicly disclose payments to governments • Inclusive employment • Equitable access to employment opportunities • Local procurement • Provide training • Use local suppliers in supply chain
Good Health & Wellbeing • Champion health & safety • Rigorous practices & reporting • Prevent toxic emissions • Publish safety record • Careful waste management • Test for substance misuse • Encourage personal well-being
Quality Education • Refresh & upgrade skills • Provide training
Clean Water & Sanitation • Conserve water • Water treatment • Monitor water quality • Provide monitoring data to authorities
Affordable & Clean Energy • Improve energy efficiency • Closely monitor fuel consumption • Examine opportunities to reduce energy consumption & costs
Decent Work & Economic Growth • Communicate job opportunities • Provide skilled work • Economic growth • Positive regional economic contribution
Industry, Innovation & Infrastructure • Support local procurement • Utilise local suppliers • Share infrastructure
Reduced Inequalities • Equal opportunities employer • Attractive wages
Responsible Consumption, Production • Minimise resource use and waste • Lower grade ore blended into processing plant • Seek to minimise production of waste • Careful disposal of waste
Life below water • Water life included in impact assessments • Proper disposal of waste • Upgraded tailings facilities • Water monitoring • Provide monitoring data to authorities
Life on land • Preserve existing ecosystems • Baseline and follow-up environmental impact assessments
Peace, justice and strong institutions • Prevent conflict • Stakeholder engagement • Open and transparent with authorities
Trans-Siberian Gold A low cost, high grade gold producer in Russia 34 Trans-Siberian Gold Contacts & Corporate Directory
UK – Head Office Company Contacts Trans-Siberian Gold plc Stewart Dickson P.O. Box 278 St. Neots, PE19 9EA +44 (0) 77 9969 4195 United Kingdom [email protected] +44 (0)1480 811871 [email protected]
Financial PR Nominated Adviser & Corporate Broker Hudson Sandler Arden Partners 25 Charterhouse Square 125 Old Broad St, London EC2N 1AR London, EC1M 6AE United Kingdom United Kingdom +44 (0) 2076145900 +44 (0) 77964133 [email protected]
Russia – Moscow Office Trans-Siberian Gold Management, LLC Office 1, 45th Floor Federation’s East Tower (Vostok) Presnenskaya Naberezhnaya, 12 123112 Moscow Russian Federation TSG Website TSG LinkedIn +7 (495) 899 0105 [email protected] Trans-Siberian Gold A low cost, high grade gold producer in Russia 35 Appendices
Trans-Siberian Gold A low cost, high grade gold producer in Russia 36 Appendices Asacha Gold Mine – Development
Development Timeline
1973 1986 – 90 1990 1994 1996 – 98 2001 2002 2004 – 05 2007 – 10 2008 2011 2020
Asacha depositCKGE (1) Mining TVX Gold TVX TSG TSG increased TSG TSG increased Mining Mining Updated discovered exploration licence Inc (TVX) exploration acquired stake to 90% exploration stake to 100% development commenced JORC work granted acquired work TVX 50% drilling of work commenced resources 50% stake stake Main Zone estimate
Plan Build Operate
Trans-Siberian Gold A low cost, high grade gold producer in Russia 37 Appendices TSG – Corporate Governance – Practical Developments
Board of Directors Continuous Improvement
Age Tenure (yrs) ü Board re-organisation in 2017 Charles Ryan 52 10 Planned CEO succession in 2018 Alexander Dorogov 50 2 ü Eugene Antonov 45 <1 ü COO Board appointment in 2019 Robert Sasson 55 6 ü Improved shareholder communication Florian Fenner 49 2(1)
Lou Naumovski 63 2 ü QCA Corporate Governance Code adopted September 2018
Stewart Dickson 42 2 ü Joined Union of Gold Producers of Russia November 2018 ü Relationship Agreement with UFG signed December 2019
Response to Church of England Pensions Board and Swedish ü Council on Ethics for the AP Funds and backed by the UN- supported Principles for Responsible Investment re. Tailings Dam Management in August 2019
Trans-Siberian Gold 38 (1) Previously a Non-Executive Director of the Company between 2006 and 2013 A low cost, high grade gold producer in Russia Appendices Russia – Leading Gold Mining Jurisdiction
2018 Global Gold Production Official Gold Reserves
United States 450 400 Germany 350 IMF 300 250 Italy 200 France 150 Russia 100 50 China 0 Switzerland
Japan
India
0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0
Source: World Gold Council Source: World Gold Council
Mining Industry – Russia – Attractiveness Scores
74.23 69.02 67.51 67.71 65.86 64.22 60.14 60.44 52.35 52.15 48.67 48.36
2013 2014 2015 2016 2017 2018
Investment Attractiveness Policy Perception
Sources: Fraser Institute Trans-Siberian Gold A low cost, high grade gold producer in Russia 39 Appendices Kamchatka – Far East Russia Kamchatka peninsula known for abundant hydrothermal activity and rich underground mineralisation
Key Facts Gold Production
Kamchatka Region TSG (oz.) (oz.) Area 464.3 km2 2017 214,831 36,714 Distance to Moscow 6,776 km Administrative Centre Petropavlovsk-Kamchatsky Q1 2018 39,803 8,100 Population 319,900
Source: www.kamgov.ru Source: www.eastrussia.ru
Economy (GRP Structure, 2013)
6.3 3.2 17.4 State Administration 4.8 Fisheries & Aquacul ture Health 5.6 Trade Manufacturing 5.7 12.2 Transport Power generation Real estate 7.2 Education Construction 10 Agriculture 8.2 Other 9.6 9.8
Source: www.investinruss ia.r u Trans-Siberian Gold A low cost, high grade gold producer in Russia 40 Appendices Kamchatka - Lower Operating Energy Costs
• 8th December 2015 – Russia’s President orders to develop an energy support mechanism that reduces energy prices for 10.98 industrial consumers in the Far Eastern Federal District. The Far East has historically suffered from significantly higher energy costs due to technologically isolated territorial electric power systems. • The mechanism of ‘levelling tariffs’ was devised whereby the difference between the set tariff and the cost of energy to generators is being compensated by consumers in the European partof Russia, the Urals and Siberia by means ofa surcharge. 6.87 6.42 • 1st July 2017 – the Federal Law on the Equalization of Electricity Ta ri ffs came into force. The energy tariffs in the Far East are 5.04 effectively reduced by distributing the increased tariffs over the -57% -33% 4.7 whole territory ofRussia. -37% -14% -9% Rub • The end-user tariff for 2017 was set at Rub 4/kWh; for 2018 it was 4.3/kWh set at Rub 4.3/kWh; for 2019 it was set at Rub 4.69/kWh, keeping the price for electricity in the Far East at the national average rate in Russia.
• Potential increase of surcharge to incentivize investment in Far East is currently under discussion.
Chukotka Magadan region Kamchatka Yakutia (Sakha) Sakhalin
Tarrif for beginning of 2017 2018 tariff
Trans-Siberian Gold A low cost, high grade gold producer in Russia 41 Source: RusHydro May 2020 Corporate Presentation