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. By viewing the Presentation, or by reading the materials used at the Presentation, you agree to be bound by the following limitations: • The Presentation may not be copied, published, distributed or transmitted or disclosed by recipients to third parties. • The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities or an inducement to enter into any investment activity, nor shall any part or all of the Presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. • The Presentation is being provided by the Company for informational purposes only and has not been independently verified. 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, viewers of the Presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. • The Presentation is only directed at qualified investors and investment professionals and other persons should not rely on or act upon the Presentation or any of its contents. • The Presentation does not constitute a recommendation regarding the securities of the Company. 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 Global Comparison - AISC
All In Sustaining Cost
AISC - Mines > 200kozs $1,600 1st Quartile $620 2nd Quartile $831 3rd Quartile$924 4th Quartile $1,334 $1,400 Martabe 2016,$429 Martabe 2013, $799 $1,200
$1,000
$800
$600
$400
$200
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l f i r a w d i e i b e l i o u u p a e e u r e a o e i o l c a c o l l a e i d e k o E r h i h e ñ r l e u k z r o d e i e g c p o u o g h a e b i F r t r e m d n a s s s L o e i n r n u l i V a l e K w q s a G w r b s L f a o s r t b R
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u P r m l a o b i a a C i c a e G b d o o a a a a a l é j o s T o e l m a y l l g r a t r L p e a l i R P a O y n h d s M n L u r a / n o A l i – u o ñ E a L n b M n P i o Z / É M V S i l K a o a d M g n Z u z e
a e n n P o G l I w a A g Y M w u e r P a B b u a V a u e M a l i
t T r g l i a o P K q r n d o z a r G o B n g r o a L a u r o A r C n M T e e B a 14 L C C 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 up to 200,000 people suffer from Cataract blindness
• PTAR commitment to the program commenced in 2011, 6 programs completed
• PTAR has partnered with ANV (A New Vision – technical expert and NGO) and TNI (Facilities and support)
• Direct benefits to 6,289 patients, indirect benefits to their families = 25,156;
• Total impact to 31,445 lives 24 Program Partners
THE MAIN SPONSOR RESPONSIBLE FOR FUNDING & MOBILISING SOME 300 VOLUNTEERS EACH YEAR
TENTARA NASIONAL INDONESIA [THE INDONESIAN NATIONAL FORCES] THE ORGANISER AN NGO RESPONSIBLE FOR SOME RESPONSIBLE FOR PERMITTING, MOBILISING 30,000 CATARACT REMOVALS IN PEOPLE/POTENTIAL PATIENTS, PROVIDING SUPPORTING INDONESIA INFRASTRUCTURES 25 Cataract is…
• A cataract is a clouding of the eye's natural lenses, which lies behind the iris and the pupil. • Cataracts are the most common cause of vision loss in people over age 40 and is the principal cause of blindness in the world. It occurs due to the aging of eye lens network, clash of the eye lens (traumatic cataract), inflammation of the lens of the eye, Diabetes, and Genetic (young children). • In North Sumatra, one of the most populous province in Indonesia with some 14 million inhabitants , it is predicted that there are 170,000 - 200,000 people (1.5% of the total inhabitants) suffering from cataract. Every year there are additional 17,000 cataract blindness cases. Cataract can only be cured through surgery, while the total numbers of surgeries have never exceeded 10,000 per year. 26 Socialisation and what follows
Socialization Days Registration process
• Prior to the cataract surgery days, there is a series of socialization days to a targeted group of people such as Community Leaders, Religious Leaders, Lecturers & health facilitators and Babinsa (TNI's people responsible for facilitating and reaching out to the community). This socialisation is aimed to provide information of self hygiene, cataract and other eye disease prevention, and also to invite them to bring more potential patients to the eyes screening process. • In the eyes screening process, patients must register their data (name, age, address/location, phone number) and undergo a VISUS test to check whether a person has a cataract or not; and then the paramedics will allocate the date of the surgery. • The surgery implements the quick (10 minutes) and safe method prescribed by Dr. Sanduk Ruit from Tilganga Institute of Ophthalmology in Nepal. The method is to make a small incision and replace the eye lens with artificial intraocular lens. Other than the 100% success rate, this method is very affordable. 27 Surgery Days
Eyes screening Washing face, hands and feet Anaesthesia process
In the surgery room In the surgery room After the surgery 28 Post Operative Care
Post Ops is conducted one day after surgery; it consisted of eyes cleaning, eyes dropping, post surgery visus- test, general induction on taking care of the eyes post surgery.
CSOM (Cataract Surgical Outcomes Monitoring) usually takes place one month after the surgery; it is aimed to 29 monitor the progress of the patients, especially for those with specific needs. Personal Success Stories
Ahmad Rohan, 8 yr old, suffered blindness due to cataract on both eyes since he was 5 years old. He could only stay home, moved by probing the walls, and could not play outdoors. Since the problems occurred on both eyes, he could not stand sun rays or a bright light. His parents had to cancel their plan to register him into a kindergarten. But this year he is very happy, since he can finally go to school following a successful cataract surgery on December 14, 2016 at the Military Hospital in Medan.
Deborah Simorangkir, a 16 yr old girl can now continue her education at Kota Tua Village, Angkola, South Tapanuli. She suffered from cataract since the third year of elementary school. It got worse when she was on the fifth year of her elementary school. She no longer could read the blackboard. Her mother said the cause of the cataract was a motorcycle accident. After recovering from cataract, Deborah wanted to continue her education to vocational high school, majoring in beauty. "I want to have my own beauty salon one day," she said. 30 5. Women in Mining vv
31 Women In Mining The Business Case for Gender Diversity
• Studies worldwide show a strong link between successful companies and diversity – it’s readily accepted
• Gender Diversity brings • Wider range of ideas, problem solving ability, and opportunity for innovation • Different and complimentary personal qualities • Access to a much larger talent pool for recruitment
• Successful Gender Diversity will make PTAR a better company
Siti Khodijah, Exploration Geologist 32 Women In Mining Challenges in implementation
Recruitment • talent pool across “job family” e.g. high end technical roles, trades, non skilled, professional, production, non production
Workforce training • understanding what it all means; giving people the tools to work effectively; creating the right environment and culture
Policy framework • HR policy which supports and enhances GD e.g. EEO, affirmative action, recruitment, harassment
Practicality • infrastructure, facilities
Theresia Amber Sari, Laboratory Technician 33 Women In Mining PTAR Gender Targets
Progressive targets over the next 3 years
• 25% female workforce by end 2019, currently 16%
• 40% female management by end 2019, currently 16%
HR Statistics – only the start, not the end result.
The goal is to establish • a positive and open culture across the organisation • where diversity is embraced as the norm, • where women feel they can contribute, and • our organisation functions more effectively.
Sri Genti, Equipment Operator ADT 34 Women In Mining 476 women, working in more than 30 job roles = skilled, professional, production, non production roles
35 Women In Mining Summary
• A successful Gender Diversity approach will make PTAR a better company
• We have a number of actions in progress – policies, recruitment, training, removing barriers
• Diversity relies on a positive and open culture in the workplace
• Success in GD aligns with our Core Values Growth Respect Action Excellence Transparency Nurhanifah Pulungan, Community Health Supervisor 36 6. Summary vv
37 Summary
1. Optimising costs • MIP Program – efficiency, productivity, ounces = Cash Margin • Mine, Mill, Power, Major Contracts, Overheads
2. Optimising capacity • Optimising mine fleet • Optimising grinding circuit • Debottlenecking the process plant (existing assets)
3. Growth through exploration and development • Extensions to existing deposits, Near mine targets, Contract of Work targets • Sulphide program development
4. Sustainable Development • Fundamental belief and commitment to principles of sustainable development
38 Thank you
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