PTAR's Martabe Gold Mine
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PTAR’s Martabe Gold Mine Developing a sustainable minerals business in Indonesia PwC School of Mines 23rd November 2017, Singapore Disclaimer • The materials used herein and this presentation (collectively, the “Presentation”) have been prepared by PT Agincourt Resources (the “Company”) solely for use at presentations to be held during 2017. 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The Company does not make any representation or warranty, express or implied, as to the fairness, accuracy, correctness or completeness of the information in the Presentation, and nothing in the Presentation is (or shall be relied upon as) a promise or representation by the Company. • The Presentation is based on the publicly available information about the Company as at 1st March 2017 and the Presentation is qualified in its entirety by reference to the Public Information. Copies of certain information relating to the Company are available at www.agincourtresources.com. You are urged to review the other Public Information in its entirety. • The Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. 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By viewing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. • The Presentation speaks as of 1st June 2017. Any further discussions of the Company with any of the recipients shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. • Nothing in the Presentation constitutes an offer of securities for sale in the United States or any other jurisdiction, nor does it constitute an invitation to subscribe for, purchase or sell any securities. 2 Agenda 1. Martabe - Overview 2. Production 3. Exploration 4. Social License & CSR Programs 5. Women in Mining 6. Summary 3 1. Martabe Overview vv 4 Martabe Overview World Class Gold District Martabe is a world class gold and silver mine located in North 97’E 98’E 99’E [110’E] Medan Sumatra Province, Indonesia Tebing Tinggi 8.6 million ounces of gold equivalent1 resources 3’N Pematangsiantar Kabanjahe Tanjung A 30-year operating permit issued under a Contract of Work Balai Sidikalang Excellent location and infrastructure Parapat Lake Toba Producing ahead of plan SUMATRA Rantau 2’N Barus Tarutung Prapat N 0 80km Sibolga MARTABE DEPOSITS Batangtoru Padangsidempuan Gunung Sitoli NIAS 1’N ISLAND INDONESIA MARTABE Kotanopan GOLD MINE Singapore Sulawesi Irian Jaya Kalimantan Lubuksikaping Jakarta Indian Java Ocean Nusa Tenggara Notes: 1. Gold equivalent calculated as 60g/t Ag being equal to 1g/t Au 5 Martabe Overview World Class Gold District Six known deposits within a 5km x 6km area with Purnama the largest so far Part of a large-scale mineralised district which has the Uluala Hulu potential to host further gold and gold-copper deposits (behind Tor Uluala) Ramba Joring Tor Uluala Uluala Hulu (behind Tor Uluala) Purnama Barani Process Plant Horas 6 6 Martabe Occurs in One of the World’s Great Mineral Provinces Arcs of Indonesia and adjacent areas form one of the worlds great gold and copper-gold mineral provinces The province is equally well endowed with epithermal (gold) and porphyry (copper-gold) deposits The Arc from Sumatra to east of Java contains approximately 70mozAu, 145mOzAg and over 16 million tonnes of Cu in past production and resources 7 Operations View Barani Pit TSF Process Plant Lowlands Ramba Joring Purnama Pit 8 Additional Mining Pits Ramba Joring Pit – in development Barani Pit – in full production 9 Process Plant Purnama Pit Primary Crusher Gold Room Elution Leach Tanks Grinding mills Detoxification Water, Air services Secondary Crusher Pebble Crusher Coarse Ore Stockpile Offices 10 Lowlands Infrastructure Camp Fuel Farm Reagents Yard Workshops Warehouses Administration 11 2. Production vv 12 Martabe – Delivering Results OPERATIONS 2013 2014 2015 2016 2017* TonnesMilled(Mt) 3.615 3.867 4.210 4.840 5.309 GoldSold(Kozs) 280 274 302 309 337 SilverSold(Kozs) 1,464 2,118 2,568 2,416 2,389 EBITDA($’million) 249.9 219.3 239.3 279.9 tba NPAT($’million) 91.1 41.9 47.2 120.7 tba Safety – 23 months Lost Time Injury free Environment – compliant Community – strong support Government – all permits in place 13 13 $1,000 $1,200 $1,400 $1,600 $200 $400 $600 $800 Global Comparison - AISC $0 All In Sustaining Cost Omolon Martabe 2016,$429 Kupol Albazino Blagodatnoye 1 st Martabe 17 Quartile Pueblo Viejo Goldstrike Twin Creeks Brazil Mineracao Lagunas Norte Leonora – Gwalia $620 Cortez/Pipeline Cerro Vanguardia Sukari Marigold Veladero 2 nd AISC - Mines > 200kozs Turquoise Ridge Quartile Masbate Canadian Malartic Kalgoorlie JV Alumbrera Peñasquito La Arena $831 Los Filos Loulo Martabe 2013, $799 Mana 3 Porcupine rd Kloof Quartile 4 El Peñón Granny Smith Paracatu Moab Khotsong Siguiri Geita $924 Zarafshan LEFA Sabodala Iduapriem th Éléonore Quartile Bulyanhulu Agnew/Lawlers Mponeng Rosebel Yanacocha $1,334 Zijinshan Telfer Tarkwa 14 MIP – Martabe Improvement Program MIP is… Our continuous improvement program to optimise assets and costs, by improving efficiency & productivity, reducing costs, and increasing cash flow. Our target is… To be a first quartile cost producer (below $600/oz), delivering more than 300kozs of gold per year. We will do this by… Optimising our mine production to feed our process plant at its optimal rate of 5.5mtpa. Reducing the cost of production inputs, materials, supplies and services, to lower our unit costs. 15 MIP – Martabe Improvement Program Mine Process Plant • Mine Productivity – improved efficiency and • SAG productivity – operating parameters, productivity rates speed, charge, weight, automation • Truck Fleet – pay load, operating performance • SAG liners, discharge grates • Pebble crusher Mine to Mill • Availability, less relines • Drill & Blast – fragmentation, size Costs • Secondary crushing • Power • Supply costs • Overheads Efficiency , Productivity, Cost Reduction, Increased Revenue 16 3. Exploration vv 17 Location of Prospects Near Mine Martabe District CoW Baringin Uluala Hulu extensions Mid UH-TU Western Dome Eastern Contact Zone Natas Barani SE 18 Exploration Programs and Targets Major program, significant results • 2016 Reserves = 53Mt ore containing 3.2Mozs gold and 28Mozs silver; • Long term target to get to 20 years Life of Mine, currently 10 years LoM • Implemented biggest exploration program in 2017, investing $30m, • Delivering major results, with more to come! Deposit Significant results Tor Uluala 42.1m @ 5.71g/t Au; 54.1m @ 5.62g/t including 12.5m @ 15.98g/t; Ramba Joring 50.5m @ 53.05g/t Au, 36 g/t Ag; 72.0m @ 12.3g/t Au, including 8.0 m @ 77.16g/t Au; 37.0m @ 10.4g/t Au, including 5.7 m @ 20g/t Au Barani 25m @ 99g/t Au including 2 m @ 1,135g/t; 30m @ 22g/t Au, 73m@ 6.54g/t Au, Note: 2016 Reserves average gold grade 1.9g/t 19 Exploration in 2017 Challenging work, professional team • Drilled 99,000 metres • 15 drill rigs on site • Supported by 2 helicopters • Team of 600 people 20 5. Social License vv 21 Site View – Pre Development Period 22 Community – Direct & Indirect Benefits CSR Program 1. Health 2. Education 3. Infrastructure Capacity Building 4. Agriculture 1. Development of local people 5. Economic development 2. Training and skills 6. Community relations 3. Gender diversity 4. Women’s empowerment 23 Cataract Program – at a glance • Cataract is the leading cause of blindness in the world – and it is curable • Causes include trauma, exposure, dietary. Mostly affects people in developing countries • In North Sumatera (population 14 million) estimated