Shanta Gold
Indaba Mining
Conference
February 2023
EXPERIENCED MANAGEMENT TEAM - Feb 2023
Highly experienced management team with deep gold mining experience in Africa
WWW.SHANTAGOLD.COM
Eric Zurrin
CEO
- Joined Shanta in 2017
- 20 years' global experience in commodities, including 10 years in East Africa
-
6 years as CEO of Shanta Gold delivering a +/-275% share price return since
Aug'17 - Formerly CFO Shanta Gold
- Experience: UBS Investment Bank, BMO
- Harvard Business School
Luke Leslie
CFO
- Joined Shanta in 2017
- 20 years' global experience in commodities including 10 years in East Africa
- Experience: UBS Investment Bank, Accenture
- Harvard Business School
Honest Mrema
COO
- Joined Shanta in 2015
- BSc Mining Engineering
- 25 years' experience in open pit and underground mining
- Includes 16 years in Tanzania, 7 years in Mali and 2 years in Laos
- Experience: Endeavour Mining, Resolute, Barrick, Anglo American
Yuri Dobrotin
Group Head of
Exploration
- Joined Shanta in 2015 (formerly Acacia)
- 37 years' global experience in exploration from country- size generative to mine site and resources
- 17 years in Africa
- Greenstone gold exploration geologist expert
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Experience: Barrick, Placer
Dome
2
KEY ACHIEVEMENTS LAST FIVE YEARS | 3 | ||
Track record of achievements delivered by the current management team | |||
1 Operational turnaround | ▪ Disciplined cost control enabling total +$70m gross debt repayments | ||
▪ Mine life extended from 2022 to currently 2028 |
▪ Right-sizing New Luika Gold Mine: 25% reduction in headcount and
US$10m pa cost savings
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2
3
4
5
Financial returns
Corporate
Growth
Commitment to purpose-led ESG
▪ 275% increase in share price
▪ Net cash realized in 2020, first time in Shanta's producing history ▪ Commenced dividend payments in 2021, current yield of 1.8%
▪ Acquired the West Kenya Project from Barrick in 2020
▪ Upgraded resource to 1.7 Moz including 722koz Indicated grading 11.45 g/t
▪ Scoping study illustrates 105koz p.a. 9-year mine plan with US$340 m NPV
▪ Successfully defended a public takeover approach
▪ Designed, funded and constructed the Singida Gold Mine in Tanzania,
Shanta's 2nd producing mine, diversifying the production base
▪ Tripled total resources from 1.2 Moz to 3.7 Moz
▪ +20 year successful track record in Tanzania ▪ Established social license to operate
▪ Regarded as the "Showcase for Mining" by the Government of Tanzania
SHANTA GOLD 3
▪ Negotiated the repayment of VAT refunds after 3 years of delays
- LHOS = Long Hole Open Stoping
- 2020 Annualised ("2020A") figures based on Q2 2020 YTD results
SHANTA GOLD OVERVIEW - HIGHLIGHTS | 4 |
High quality East African gold portfolio with scope to materially increase Group-wide NPV
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Highly compelling growth prospects
High quality portfolio of gold assets
Significant exploration potential with material resource growth expected
Improving political environment in Tanzania
Strong safety record and ESG history
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Portfolio of brownfield and greenfield growth options driving production to 100kozpa in 2023 and potential further production increase o New Luika: Future resource to reserve conversion and consolidation of Lupa Gold Field. Potential addition of a 4th ball mill
o Singida: Near-term, low capital intensity project resulting in 30-40kozpa production from 2023. 1st gold pour in March 2023
o West Kenya: Scoping study highlighting +105kozpa production with NPV of US$340 m NPV (announced 2020) calculated using a gold price of US$1,700/oz and 8% discount rate - 3.7 million total resource including reserves of 646 Koz at 3.03 g/t across a regional portfolio
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Three assets across neighbouring East coast countries
o NLGM: Established Open Pit/Underground gold operation in SW Tanzania
o Singida: Low capex, high returning (IRR >50%) asset with excellent resource upside potential
o West Kenya: Advancing one of Africa's highest-grade +1m oz gold deposits to a Feasibility Study - New Luika has 625 Koz resources outside the mine plan in addition to current reserves (3.6 Mt at 2.84 g/t), while underground deposits remain open at depth with inferred resources a top target for conversion
- Over 90% of Singida's Reserves of 243 Koz at 3.00 g/t are within 150 metres of surface with potential for significant reserve expansion at depth
- Material exploration upside from West Kenya, a district scale exploration play with parallels to some of the world's great greenstone belts (Lake Victoria gold fields, home to Global Tier 1 assets North Mara, Bulyanhulu and Geita Gold Mine)
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Tanzanian political environment has improved materially over the past 24 months with the mining sector open for business
o Several SML's granted or frameworks agreed with the Tanzanian government (Orecorp, Kabanga Nickel, Peak Rare Earths, Strandline, Black Rock Mining)
o BHP invested US$100m in Tanzania's Kabanga Nickel in the last 9 months - Shanta is among the safest gold mining employers with 9.0 million hours achieved without an LTI (2017-2022) at NLGM
- Shanta has successfully operated in Tanzania for 20 years
- 99.0% employees recruited locally in country
• Understood to be home to the largest solar farm in Tanzania | 4 |
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SHANTA VALUE PROPOSITION | 5 | |||||||
Implied price/NPV implies significant discount | ||||||||
Market capitalisation and group NPV by asset | ||||||||
(US$m)1,2,3,4 | 645 Koz | |||||||
Reserves: 404 koz @ 3.05 g/t | ||||||||
Resources: 1,108 koz @ 2.40 g/t | ||||||||
2023E EBITDA5: US$50 m | @ 2.91 g/t | |||||||
2023 prod'n guidance: 66-72 koz | ||||||||
2023 AISC guidance: US$1200-$1300/oz | ||||||||
Implied 60% resources conversion rate6 | Total group-wide reserves | |||||||
140 | ||||||||
3,673 Koz | ||||||||
Stage: | Producing | Producing | Scoping | @ 3.28 g/t | ||||
Annual | 66-72 koz | (Mar 2023) | 105 koz | Total group-wide resources | ||||
production: | 32 koz |
- Market Cap calculated using 11p share price
- NLGM NPV bar sizing for illustrative purposes only
- Singida Project economics prepared internally as announced 07 October 2020, using a LOM gold price of US$1,900 /oz, 8% discount rate. NPV accounts for construction capex of US35 million already spent
- West Kenya Project economics prepared by independent consultant Bara Consulting Pty using a LOM gold price of US$1,700 /oz, 8% discount rate
5. | 2023 figures based on research estimates | 5 |
6. | Using January 2014 resource estimate at New Luika Gold Mine of 794 koz |
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Shanta Gold Ltd. published this content on 20 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 February 2023 19:49:04 UTC.