TSX:TGZ / OTCQX:TGCDF
Building a
Multi-Asset Mid-Tier
West African Gold Producer
BMO Metals & Mining ConferenceFebruary 24-27, 2019
Forward-Looking Statements
2
All information included in this presentation, including any information as to Teranga’s future financial or operating performance and other statements that express management’s
expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of
applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing
information about management’s current expectations and plans relating to the future. Wherever possible, words such as “plans”, “expects”, “scheduled”, “trends”, “indications”,
“potential”, “estimates”, “predicts”, “anticipate”, “to establish”, “believe”, “intend”, “ability to”, or statements that certain actions, events or results “may”, “could”, “would”, “might”,
“will”, or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information.
Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action.
Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as
of the date hereof, Teranga cannot be certain that actual results will be consistent with such forward-looking information. Such assumptions include, among others, the ability to
obtain any requisite governmental approvals, the accuracy of mineral reserve and mineral resource estimates, gold price, exchange rates, fuel and energy costs, future economic
conditions, anticipated future estimates of free cash flow, and courses of action. Teranga cautions you not to place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking statements include, among others, the inherent risks involved in exploration and development of mineral properties,
including government approvals and permitting, changes in economic conditions, changes in the worldwide price of gold and other key inputs, changes in mine plans and other
factors, such as project execution delays, many of which are beyond the control of Teranga. For a more comprehensive discussion of the risks faced by Teranga, and which may
cause the actual financial results, performance or achievements of Teranga to be materially different from estimated future results, performance or achievements expressed or
implied by forward-looking information or forward-looking statements, please refer to Teranga’s latest Annual Information Form filed with Canadian securities regulatory authorities
at www.sedar.com or on Teranga’s website at www.terangagold.com. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and on
Teranga’s website at www.terangagold.com) are hereby incorporated by reference herein. Teranga 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 as required by applicable law. Nothing herein should be construed as either an offer to sell
or a solicitation to buy or sell Teranga securities.
All references to Teranga 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. All dollar amounts stated are denominated in U.S. dollars unless specified otherwise.
Senegal
Côte d’Ivoire
Burkina Faso
Mali
Guinea
Guinea-
Bissau
The Gambia
GhanaBenin
Niger
Sierra
Leone
Liberia
Togo
3
Gourma
Exploration
Guitry
Dianra
Sangaredougou
Building a Multi-Asset Mid-Tier Gold Producer in Mining-Friendly West Africa
Afema
Golden Hill
Advanced Exploration ProjectMineral Resource: (3)
Indicated: 415koz @ 2.02 g/t Au
Inferred: 644koz @ 1.68 g/t Au
Wahgnion Gold
Development2P Reserves: 1.6Moz(1)
Sabodala Gold
Operation2P Reserves: 2.7Moz(2)
Miminvest
and Afema
Permits
Refer Endnotes (1), (2) and (3) in Appendix
4
SabodalaGold Mine(Senegal)
WahgnionGold Mine(Burkina Faso)
Golden HillProject(Burkina Faso)
Miminvest &Afema JVs(Côte d’Ivoire)
Exploration & Resource Conversion
Mid-Tier Producer with Scale and Diversification
Strong Organic Growth Pipeline
4
5
Leading with Our Social License
Prospectors & Developers Association of Canada
2017 Environmental & Social Responsibility Award
United Nations Global Compact
Network Canada Sustainability Award
4X Winner of Corporate Knights Future 40
Responsible Corporate Leaders in Canada
Capital Finance International: Best ESG
Responsible Mining Management West Africa
WORKING HARD WITH ALL OF OUR STAKEHOLDERS TO BE A PARTNER OF CHOICE
2018: A Year of Achievements
6
Wahgnion Golden Hill Côte d’Ivoire Sabodala
Made significant advancements on construction project –Wahngion continues to advance on time and on budget
Increased gold reserves by 450,000 oz
Extended mine life to 13 years
Improved initial 5-year operating profile
Filed updated NI 43-101 Technical Report
Issued 7 exploration update press releases
Acquired the remaining interest in Golden Hill
Entered into earn-in on adjacent property to the north
Made good progress advancing Miminvestproperties, particularly Guitry and Dianra
Commenced technical work at Afema
Delivered third consecutive year of record production delivering 245,230 oz in 2018
Beat low end of per ounce cost guidance ranges
Generated over $50 million in free cash flow
SabodalaSenegal, West Africa
7
8
Life of Mine
Summary(4)(5)(6)
5 years
(2018-2022)
13 years
(2018-2030)
Annual production 213koz 176koz
All-in sustaining costs* $885/oz $893/oz
Total free cash flow* $230M $556M
Strong 5-Year Profile with Potential to Increase Mine Life
Masato
Mamasato
Kouroundi
Kerekounda
Kourouloulou
Golouma South
Koulouqwinde
Koutoniokollo
Kinemba East
Kobokoto
Goumbati
West
Maki
Medina Golouma
West
Golouma
North
Soukhoto Niakafiri
EastNiakafiri
West
Diadiako Gora
Sabodala Gold Mine
Senegal, West AfricaPermitted mining license: 291 km2
*Refer to Appendix – Non-IFRS Performance Measures
Refer Endnotes (2),(4),(5) and (6) in Appendix
2.7Moz
2P Reserves(2)
4.4Moz
M&I Resources(2)
13-Year
Mine Life(4)
Sabodala: Largest Gold Producer in Senegal
with Significant Resource Base & Long Mine Life
2018 Production: 5% Year-over-year Increase and Third Consecutive Record Year
9
Production (koz Au)
17
131
214 207 212182
217233 245
2010 2011 2012 2013 2014 2015 2016 2017 2018
+5%
1.66Moz
……………………………………..
gold produced at Sabodala
since December 2010
10
(Per Ounce)
2018 2017 2018 Guidance
Cost of sales $937 $961 $950 – $1,025
Total cash costs* $660 $721 $700 – $750
All-in sustaining costs* $1,006 $1,024 $1,000 – $1,075
Non-cash inventory movements
and amortized advanced royalty costs ($66) ($81) ($50)
All-in sustaining costs (excluding non-cash
inventory movements and amortized
advanced royalty costs)*
$940 $943 $950 – $1,025
2018
Improved Per Ounce Costs for 2018; Beat Cost Guidance
*Refer to Non-IFRS Performance Measures in Appendix
Track Record of Replacing Reserves at Sabodala
Sabodala Proven and Probable Reserves(2) (Moz)
11
Significant Opportunity for
Growth at Sabodala
• Sabodala village relocation provides
opportunity to drill out Niakafiri, the
largest deposit on the mine license,
and to increase remaining mine life
• Village relocation expected to be
completed in 2020
1.41.7 1.6
2.8
2.6 2.6
2.7
2010 2011 2012 2013 2014 2015 2017
Graph includes years for which there was a reserve updateRefer to Endnote (2) in Appendix
Wahgnion ProjectBurkina Faso, West Africa
12
Wahgnion: On Track for First Pour by End of 2019
13
Nogbele
Stinger15 km from plant
Samavogo25 km from plant
Fourkoura6 km from plant
Wahgnion Development Project
Burkina Faso, West AfricaPermitted mining license: 89 km2
Four initial deposits at Wahgnion
(Nogbele, Samavogo, Fourkoura
& Stinger) located in close proximity
to proposed plant site
Proposed
Processing Plant
*Refer to Appendix – Non-IFRS Performance Measures
**Pre-production capital costs of $240 million excludes $16 million in construction
readiness activities spent prior to major construction
Refer to Endnotes (1), (5), (7) and (8) in Appendix
Life of Mine Summary(5)(7)(8)
Initial
5 years
LOM
(13 years)
Annual production 132koz 114koz
All-in sustaining costs* $761/oz $904/oz
Total free cash flow* $311M $479M
Pre-production capital** ($240M)
Pre-production operating costs ($28M)
Net cash flow $211M
13-Year
Mine Life(7)
1.6Moz
2P Reserves(1)
2.4Moz
M&I Resources(1)
Strong 5-Year Profile with Potential to Increase Mine Life
14
Wahgnion: Shifting Focus to Operations Readiness
Process Plant – Classification Structure, February 2019
Approaching Final Phases of
Construction & Commissioning
2.8M+ hours worked without a Lost Time Injury
Engineering and drafting complete
Civil, structural and mechanical drawings issued
Steel fabrication complete and delivered to site, 25% erected
75% of equipment delivered, including SAG and ball mill shells
Main camp area and essential services now finished
95% of concrete poured
Construction of the tailings storage facility is near completion
Resettlement of multiple families complete
15
Wahgnion Construction: Next Steps
Process Plant – CIL Tanks, February 2019
Focused on First Gold Pour in Q4 2019
• Prepare the commissioning schedule for plant production ramp-up
to nameplate capacity following mechanical completion
• Revise 2019 mine plan to feed more ore than planned in technical
report to support potential for an earlier than planned
commissioning
• Ongoing construction of the first two resettlement sites
(94 households) and community infrastructure
Golden HillBurkina Faso, West Africa
16
17
Rapidly Advancing Project
• $25 million financing secured for the future
advancement of Golden Hill through to feasibility study
• Teranga owns 100% of Golden Hill following
acquisition of remaining interest from joint venture
partner in October 2018
• Entered into joint venture with ACC Resources relating
to property situated to the north of Golden Hill
Golden Hill: Potentially Teranga’s Third Mine
Geology
Tarkwaian Type Sediments
Volcano Sediments
Mixed Volcano Sediments & Volcanics
Basalt
Grantoid
Batholith
Ma North
Golden Hill
(Burkina Faso, West Africa)Exploration licenses:468 km2
Ma Main
Ma East
Nahiri
Gogoba West
Nahiri Plateau
Jack Hammer Hill
Peksou North
PeksouC-Zone
B-Zone
A-Zone 17
Sources
¹ Capital IQ (December 2017)
² Capital IQ (November 2017)
³ Capital IQ (December 2017)
⁴ Capital IQ (February 2016)
⁵ Capital IQ (October 2017)6 Capital IQ (February 2009)
M&I Resources are inclusive of P&P Reserves
Siou Pit
M&I: 0.89 Moz ¹
Mana
M&I: 6.27 Moz ¹
Houndé
M&I: 2.53 Moz ³
Yaramoko
M&I: 1.45 Moz ²
Acacia JVs ⁴
Karankasso JV
M&I: 0.80 Moz ⁵
South Houndé JV
M&I: 2.10 Moz ⁴
Sarama Permits
M&I: 0.43 Moz 6
Interpreted Geology
Andesite
Basalt
Basin
Batholith
Chert
Granitoid
Tarkwaian
Houndé Belt Burkina Faso, West Africa
ACC
Holdings
Permits
Teranga’s
Golden Hill ProjectMineral Resource: 1.06 Moz
Early-Stage Initial Resource Provides Solid
Base From Which to Grow Golden Hill
18
415,000 oz
at 2.02 g/t(3)
Indicated
644,000 oz
at 1.68 g/t(3)
Inferred
Highlights of Initial Resource
Excellent along trend and to-depth continuity of
gold mineralization at all prospects drilled
Provides solid base from which to grow Golden Hill
Reaffirms interpretations that each prospect offers
substantial upside for size expansion
Subsequent drilling will prioritize increasing
resources and advancing the project into the
feasibility stage
For full details on Golden Hill, please visit www.terangagold.com
Refer to Endnote to (3) in the Appendix
19
553569
581598
612
644657 669
680 689707
1.91 1.87 1.84 1.80 1.771.68 1.65 1.63 1.61 1.60 1.56
0.00
0.50
1.00
1.50
2.00
2.50
400
450
500
550
600
650
700
750
Gra
ms p
er
To
nn
eA
u
00
0's
Ou
nce
s A
u
Gold Price per Ounce (USD)
Contained Metal Grade
Gold Price Sensitivity: Golden Hill Inferred Resources
Mineral Resources are estimated using
a long-term gold price of $1,450 per
ounce.(15)
Refer to Endnote (15) in the Appendix
20
Many Opportunities to Enhance Initial Mineral Resource
Ma Structural Complex
• Further drilling at Ma North, especially the eastern end where multiple
mineralized and brecciated structures exist
• Drill down plunge of the multiple plunges orientations at Ma Main
• Explore for western extension
Peksou/C-Zone
• Drill along trend to the east-northeast beyond intersection of two trends
• Drill down plunge of the widest and best grade portions of C-Zone
• Explore a potential off-set extension
Jackhammer Hill
• Reinterpretation of the geologic model taking into account the regional
setting and northwest oriented cross structures
A-Zone, B-Zone, Nahiri
• Drill along trend and up-dip/down-dip of A-Zone (B-Zone is limited)
• Re-interpret Nahiri in relation to the New Gogoba West discovery
(located within the same strong northwest trending regional structure)
New Targets
• Continue prospecting, soil sampling, mechanical trenching,
auger drilling programs to identify favorable structural targets
• Initial drilling at the new discovery, Gogoba West
• Initiate field evaluation in preparation for early-stage drilling at
the 5-6 targets on the adjacent ACC Resources property that
appear very similar to Golden Hill prospects
• Initiate exploration programs further afield of the current
prospects within the identical geologic and structural setting
within Golden Hill
Additional Next Steps
• Review historic drilling that was excluded from the initial
resource estimate due to missing QA/QC data – to be
addressed
prior to future estimations by incorporating the historic data or
re-drilling
Ma Structural Complex
21
Initial Resource Highlights
Various components of the Ma Structural Complex offer
several opportunities for additional resource focused
exploration
Ma North: Now a High-Priority Drill Target Area
Latest drilling expanded mineralization considerably to
the east where multiple brecciated shear zones have
been intersected
Ma Main: Most Extensively Drilled Prospect To-date
Considerable potential to be evaluated down plunge of
the wider and higher-grade mineralization, along 2 km
strike extent targeting pit depth extension
Peksou / C-Zone
22
Plan View
Peksou
C-Zone
452,000E
1,227,000N
1,228,000N Isometric View Looking NE
Isometric View
Looking NE
Highlights of Initial Resource
• Highest grade component from initial resource
estimation with an inferred resource of 263,000
ounces grading 2.13 g/t gold
• Gold zones at C-Zone and Peksou remain open,
both along trend to depth, along defined plunge
orientations – all worthy of follow-up exploration
drilling evaluation
• Further exploration upside exists in the area in and
around the intersection of the Peksou and C-Zone
mineralized trends as well as along trend further to
the east-northeast beyond this structural intersection
Miminvest & Afema Exploration OpportunitiesCôte d’Ivoire, West Africa
23
Côte d'Ivoire35%
Burkina Faso21%
Ghana19%
Guinea11%
Mali10% Other
4%
Côte d’Ivoire: Future Value Resides with Miminvest and Afema Opportunities
24
Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Guitry Sangaredougou
Newcrest
Dianra
Afema
Côte d’Ivoire represents more
than one-third of the West African
Birimian Greenstone Belt
Operating Gold Mine/ Development Project
Miminvest Exploration Properties
• Guitry complex (includes Sangaredougou):
Highly prospective and potential district
• Dianra: Initial phase of exploration outlines
favourable follow-up targets
Afema Mine Joint Venture
• Two well mineralized greenstone belts underlie
mine license and regional land package
• Five major shear structures crossing the
regional land package with a combined strike
length exceeding 140 km
3
Miminvest Permits
4
Afema Permits
High Priority Guitry District (including Sangaredougou)
• First-ever drilling program at Guitry consisted of a 68-hole,
3,320 metre air-core drilling program
• This program included a series of shallow, widely spaced,
multi-hole drill profiles designed to evaluate the central
1,000-metre strike extent within an extensive gold-in-soil
geochemical anomaly covering a 3 x 7 km area
• The most favourable results were:
– 24 metres grading 2.02 g/t Au (GUAC008)
– 20 metres grading 6.37 g/t Au (GUAC018)
– 4 metres grading 5.80 g/t Au (GUAC015)
– an additional +10 holes intersected 1.0-1.5 g/t over
lengths up to 10 metres
• Results are currently being compiled and assessed
towards designing a follow-up exploration program
consisting of ground geophysics, mechanical trenching
and further drilling
Endeavour
Endeavour
Perseus
Randgold
Côte d’Ivoire
Sangaredougou
Operating Gold Mine/ Development Project
Newcrest
25
Guitry Complex: On Extension of Houndé Belt
Guitry
Afema: Located on Prolific Gold Belts Trending from Ghana
Ahafo
17 Moz
Newmont
3 Afema
Exploration
Permits
Afema
Mining Permit
Bibiani
7 Moz
Resolute
Chirano
5 Moz
Kinross
Edikan
6.6 Moz
Perseus
Bogoso/Prestea
18 Moz
Gold Star
Konogo
1.4 Moz
Signature Metals
Akyem
Newmont
Esaase
5.19 Moz
Obotan
5.5 Moz
Asanko
Obuasi 41 Moz
Anglo Gold Ashanti
Kubi 0.9 Moz
Asaute Gold Corporation
Damang 7.1 Moz
Goldfields
Tarkwa 24 Moz
Iduapriem
8.2 Moz
AngloGold Ashanti
Kumasi
Cape Coast
Sefwi-Bibiani
Gold Belt Asankrangwa
Gold BeltAshanti
Gold Belt
Winneba-Kibi
Gold Belt
26
Côte d’Ivoire
High Profile Target Located at the
Confluence of Two Major Gold Belts
• Geological potential for large discoveries
• 2018 exploration program included:
– drilling at the Afema mine license
– property-wide airborne geophysics and
stream sediment (BLEG) programs
• Drilling to continue in 2019
Afema Joint Venture (51%, earning 70%)
• Teranga can earn a 70% interest in the Afema
mining license and exploration permits
• Joint venture partner is Sodim Limited, a
private company
• Teranga will fund and manage
Ghana
Wrap-Up
27
Unique Cornerstone Shareholder – Tablo Corporation – Currently Owns ~22% of Teranga
28
Initial private placement
34%
Gryphon acquisition
8%
Secondary public
offering25%
On market purchases
33%
Tablo Corporation Owns 23.5 Million Shares of Teranga at an Average Price of C$3.93
David Mimran, Director of Teranga, Controls Tablo Corporation
• Mr. Mimran is CEO of Grands Moulins d’Abidjan and Grands
Moulins de Dakar, one of the largest producers of flour and agri-
food in West Africa
• He is Special Advisor to the government of the Republic of Cote
d'Ivoire where he has led negotiations with the International
Monetary Fund, the World Bank, the European Union, and the
Government of the Republic of France
Strong Cornerstone Investor with In-Depth Local Knowledge
• Long history of operating responsibly in Africa
• Mimran Group is the largest private sector employer in both
Senegal and Côte d’Ivoire
Committed to Teranga’s Long-Term Growth
• Last November, Tablo announced its intention to add to its
holdings by acquiring up to 5% of Teranga’s issued and
outstanding common shares in the open market
One-third of Tablo’s shares were purchased through exercise of
anti-dilution right relating to acquisition of Gryphon Minerals in
October 2016 and November 2016 secondary offering.
Initial private placement was made in October 2015.
29
SabodalaGold Mine(Senegal)
WahgnionGold Mine(Burkina Faso)
Golden HillProject(Burkina Faso)
Miminvest &Afema JVs(Côte d’Ivoire)
Exploration & Resource Conversion
Mid-Tier Producer with Scale and Diversification
Strong Organic Growth Pipeline
29
Appendix
2019 Guidance (Year Ended December 31, 2019)
31Refer to Endnotes (9), (10), (11), (12), (13) and (14) in the Appendix
Sabodala Wahgnion Consolidated 14
Operating
Results
Total mined (‘000t) 37,000 – 39,500 6,800 – 7,200 -
Ore Mined (‘000t) 3,000 – 3,500 500 – 650 -
Grade mined (g/t) 1.50 – 2.00 1.80 – 2.00 -
Strip ratio waste/ore 9.5 – 12.0 - -
Ore milled (‘000t) 4,100 – 4,300 500 – 650 -
Head grade (g/t) 1.80 – 2.00 1.80 – 2.00 -
Recovery rate % 89.0 – 91.0 ~90.0 -
Gold produced 9 (oz) 215,000 – 230,000 30,000 – 40,000 245,000 – 270,000
Cost of sales per ounce sold $/oz sold 1,050 – 1,125 1,175 – 1,250 1,050 – 1,125
Total cash costs per ounce sold * $/oz sold 725 – 775 - -
All-in sustaining costs 10* $/oz sold 900 – 975 1,050 – 1,125 1,000 – 1,100
Non-cash inventory movements and
amortized advanced royalty costs 10$/oz sold (75) (300) ~ (100)
All-in sustaining costs (excluding non-
cash inventory movements and
amortized advanced royalty costs) 10
$/oz sold 825 – 900 750 – 825 900 – 1,000
Mine Production Costs $ millions 165 – 180 - -
Capital
Expenditures
Sustaining Capital 11 $ millions 10 – 15 - -
Resettlement Capital $ millions 15 – 20 - -
Wahgnion Construction $ millions - 115 – 120 -
Wahgnion Pre-Operating Costs $ millions - ~30 -
Corporate and
Other
Corporate Administration Expense $ millions - - 13.0 – 14.0
Share-Based Compensation Expense 12 $ millions - - 3.5 – 4.5
Regional Administration Costs $ millions - - 2.0 – 3.0
Community Social Responsibility $ millions - - 4 – 5
Exploration and Evaluation 13 $ millions - - 5 – 15
*Refer to Non-IFRS Performance Measures in the Appendix
Top 20 Shareholders% of o/s
shares
# of shares(as at
Feb. 21, 2019)
1 Tablo Corporation 21.8 23,477,250
2 Van Eck Associates Corporation 5.6 5,986,199
3 Ruffer LLP 4.7 5,051,693
4 Dimensional Fund Advisors, L.P. 3.9 4,137,199
5 Heartland Advisors, Inc. 2.8 3,000,000
6 Konwave AG 2.0 2,128,000
7 Stabilitas GmbH 1.4 1,500,000
8 Franklin Advisers, Inc. 1.3 1,404,553
9 BMO Asset Management Inc. 1.0 1,027,350
10 Earth Resource Investment Group 0.9 1,000,000
11 Fidelity Management & Research Company 0.9 975,814
12 AgaNola AG 0.8 860,000
13 O'Shaughnessy Asset Management, LLC 0.7 787,542
14 U.S. Global Investors, Inc. 0.7 696,300
15 MD Financial Management Inc. 0.6 667,700
16 Mackenzie Financial Corporation 0.6 657,706
17 LSV Asset Management 0.5 505,450
18 azValor Asset Management SGIIC, SAU 0.5 502,986
19 Ethenea Independent Investors S.A. 0.5 500,000
20 Hill (Alan Richard) 0.4 431,200
Total shares held by top 20 shareholders 51% 55,296,942
32
Capital Structure and Recent Share Price Performance
Source: IR Insight
Teranga Gold Capital Structure (as at Feb. 21, 2019)
Common shares outstanding 107.6M
Stock options granted 5.4M
Warrants (Taurus debt facility) 2.0M
Fully diluted 115.0M
Number of shares owned by insiders 24.2M
Market capitalization US$358M
Golden Hill: Initial Mineral Resource
33
Notes for Mineral Resource Estimate (effective November 30, 2018)
1 . CIM (2014) definitions were followed for Mineral Resources.
2 . Mineral Resources are reported at cut-off grades ranging from 0.333 g/t Au to 0.437 g/t Au in oxide,
0.381 g/t Au to 0.497 g/t Au in transition, and 0.425 g/t Au to 0.553 g/t Au in primary rock.
3 . The effective date for all deposits is November 30, 2018.
4 . High grade assays were capped at grades ranging from 15 g/t Au to 25 g/t Au.
5. Mineral Resources are estimated using a long-term gold price of US$1,450 per ounce.
6. A minimum thickness of two metres was applied.
7 . Mineral Resources are constrained by preliminary pit shells.
8. Totals may not add due to rounding.
Measured Resources Indicated Resources Measured + Indicated Resources Inferred Resources
Tonnage
(000 t)
Grade
(g/t Au)
Contained
Metal
(000 oz Au)
Tonnage
(000 t)
Grade
(g/t Au)
Contained
Metal
(000 oz Au)
Tonnage
(000 t)
Grade
(g/t Au)
Contained
Metal
(000 oz Au)
Tonnage
(000 t)
Grade
(g/t Au)
Contained
Metal
(000 oz Au)
Ma 0 0.00 0 5,789 2.03 378 5,789 2.03 378 4,082 1.71 225
Jackhammer Hill 0 0.00 0 610 1.87 37 610 1.87 37 692 1.50 33
Peksou/C-Zone 0 0.00 0 0 0.00 0 0 0.00 0 3,839 2.13 263
Nahiri 0 0.00 0 0 0.00 0 0 0.00 0 1,659 0.85 45
A and B-Zones 0 0.00 0 0 0.00 0 0 0.00 0 1,675 1.45 78
Total Golden Hill 0 0.00 0 6,399 2.02 415 6,399 2.02 415 11,947 1.68 644
8.4%
4.8%
Implied Net Smelter Royalty
OJVG Acquisition Financed by Franco-Nevada
• In connection with Teranga’s transformational
acquisition of Oromin Joint Venture Group in 2014,
Franco-Nevada invested $135 million in exchange for
a fixed and floating stream on Teranga’s future
production
• Fixed gold deliveries of 22,500 ounces per year from
2014 to 2019 with trailing 6% gold stream once fixed
deliveries completed in 2019*
• Franco-Nevada to pay 20% of spot gold price per
ounce delivered (6% stream is equivalent to a 4.8%
NSR royalty)
• Streaming agreement covers Teranga’s current mine
license and land package
Effective Cost of Franco-Nevada Stream on
All-in Sustaining Costs per Ounce(based on $1,200/ounce gold price)
$100
$58
2016E Post 2019
Eff
ective
Co
st
34
Executive Team
35
Richard Young, CPA
President & CEO
25+ years experience in gold mining
including 13 years at Barrick Gold including
finance and corporate development
Paul Chawrun, P.Eng, MBA
Chief Operating Officer
25+ years experience in mining including
serving as Director, Technical Services
at Detour Gold
Navin Dyal, CPA
Chief Financial Officer
13 years experience in mining including 7
years at Barrick Gold as Head of Finance
in copper business unit
David Savarie, LL.B
General Counsel & Corporate Secretary
11 years of Corporate Counsel experience
in mining including his role as Deputy
General Counsel and Corporate Secretary
of Gabriel Resources
Aziz Sy, P.Eng, M.Sc., MBA
General Manager, SGO
17+ years experience in managing gold
exploration projects, including his work as
Vice President Senegal Operations for the
Oromin Joint Venture Group until its
acquisition in 2014 by Teranga Gold
David Mallo, B.Sc. Geology
VP, Exploration
35+ years of mineral exploration in project
evaluation and program management, playing
an integral role in acquisition, discovery, and
exploration of world-class deposits including
Eskay Creek and Cobre Panama
Alan Hill, M.Eng
Chairman
35+ years experience in
mining including 20 years at
Barrick Gold in project
evaluation and development
Christopher Lattanzi, B.Eng
Director
30 years experience in mining
property valuation, scoping, feasibility
studies and project monitoring on a
global basis. Founder of Micon
International
Richard Young, CPA
President & CEO
25+ years experience in gold
mining including 13 years at
Barrick Gold in finance and
corporate development
Jendayi Frazer, Ph.D.
Director
17 years experience in key roles
supporting initiatives and policies
to build Africa’s equity and commodity
markets. First woman U.S. Ambassador
to South Africa
William Biggar, MA, CPA
Director
25+ years experience in senior
executive positions in investment,
mining and real estate including
Barrick Gold and Merrill Lynch
Edward Goldenberg, MA, BCl
Director
Distinguished career in policy including
10 years as Senior Policy Advisor to the
Prime Minister of Canada and the Prime
Minister's Chief of Staff in 2003. Honourary
Doctorate of Laws from McGill University
David Mimran
Director & Teranga’s Largest Shareholder
CEO of Grands Moulins d’Abidjan and
Grands Moulins de Dakar, among the
largest producers of agri-food in West
Africa. Special Advisor to the Government
of the Republic of Côte d'Ivoire
Alan Thomas, CPA
Director
30+ years mining and energy
industry experience in senior
financial and director roles including
6 years as VP and CFO of ShawCor
and 11 years as CFO of Noranda
Frank Wheatley, LL.B
Director
28 years mining industry experience as
director, senior officer and legal counsel.
Extensive experience in public financing,
project debt financing, permitting of large-
scale mining projects and strategic M&A
Board of Directors
36
Qualified Persons Statement
37
The technical information contained in this document relating to the Sabodala and Wahgnion open pit mineral reserve estimates is based on, and fairly represents, information compiled by Mr. Stephen Ling, P. Eng who is a member of the
Professional Engineers Ontario. Mr. Ling is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Mr. Ling 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 "Qualified Person" under NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Ling has consented to the inclusion in this document of the matters based on his
compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to mineral resource estimates is based on, and fairly represents, information compiled by Ms. Patti Nakai-Lajoie. Ms. Nakai-Lajoie, P. Geo., is a Member of the Association of
Professional Geoscientists of Ontario. Ms. Nakai-Lajoie is a full time employee of Teranga and is not "independent" within the meaning of NI 43-101. Ms. 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 "Qualified Person" under NI 43-101 Standards of Disclosure for Mineral Projects. Ms. Nakai-Lajoie has consented to the inclusion in this document of
the matters based on her compiled information in the form and context in which it appears in this document.
The technical information contained in this document relating to the Sabodala underground ore reserves estimates is based on, and fairly represents, information compiled by Jeff Sepp, P. Eng., of Roscoe Postle Associates Inc. (“RPA”), who is
a member of the Professional Engineers Ontario. Mr. Sepp is “independent” within the meaning of NI 43-101. Mr. Sepp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a “Qualified Person” under NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Sepp has consented to the inclusion in this document of the matters based on his compiled information in the form
and context in which it appears in this document.
Teranga's exploration programs are being managed by Peter Mann, FAusIMM. Mr. Mann was a full time employee of Teranga during the period of this resource update and is not "independent" within the meaning of NI 43-101. Mr. Mann 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 “Qualified Person” as under NI 43-101 Standards of Disclosure for Mineral
Projects. The technical information contained in this document relating to exploration results are based on, and fairly represents, information compiled by Mr. Mann. Mr. Mann has verified and approved the data disclosed in this release,
including the sampling, analytical and test data underlying the information. The samples are prepared at site and assayed in the SGS laboratory located at the site. Analysis for diamond drilling is sent for fire assay analysis at ALS
Johannesburg, South Africa. Mr. Mann has consented to the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.
Teranga's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and
Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted
into mineral reserves.
Teranga confirms that it is not aware of any new information or data that materially affects the information included in the technical reports for the Sabodala Project (August 30, 2017) and the Wahgnion Project (October 20, 2017) pursuant
to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (the “Technical Reports”), or year end results, market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcements concerning the Technical Reports continue to apply and have not materially changed.
38
Non-IFRS Performance MeasuresThe Company has included non-IFRS measures in this document, including “total cash costs”, “total cash costs per ounce sold”, “all-in sustaining costs” (“AISC”), “AISC (excluding cash / (non-cash) inventory movements and
amortized advanced royalty costs)”, “AISC per ounce”, “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty costs) per ounce”, “earnings before interest, taxes, depreciation and amortization”
(“EBITDA”), “free cash flow”, “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share”. These measures are intended to provide additional information only and do not have any standardized
meaning under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate these measures differently.
“Total cash costs” figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold
producers. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures
presented may not be comparable to other similarly titled measure of other companies. “Total cash costs per ounce sold” is a common financial performance measure in the gold mining industry but has no standard meaning
under IFRS. The Company reports total cash costs on a sales basis. The World Gold Council (“WGC”) definition of AISC seeks to extend the definition of total cash costs by adding corporate general and administrative costs,
reclamation and remediation costs (including accretion and amortization), exploration and study costs (capital and expensed), capitalized stripping costs and sustaining capital expenditures and represents the total costs of
producing gold from current operations. AISC excludes income tax payments, interest costs, costs related to business acquisitions and items needed to normalize earnings. Consequently, this measure is not representative of all
of the Company’s cash expenditures. In addition, the calculation of AISC does not include depreciation expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the
Company’s overall profitability. The Company also expands upon the WGC definition of AISC by presenting an additional measure of “AISC (excluding cash / (non-cash) inventory movements and amortized advanced royalty
costs)”. This measure excludes cash and non-cash inventory movements and amortized advanced royalty costs which management does not believe to be true cash costs and are not fully indicative of performance for the period.
For Sabodala and Wahgnion, life of mine total cash costs and AISC figures used in this presentation are before cash/non-cash inventory movements and exclude any allocation of corporate overheads. Consolidated total cash
costs and all-in sustaining cost figures add corporate overhead costs.
“Average realized price” is a financial measure with no standard meaning under IFRS. Management uses this measure to better understand the price realized in each reporting period for gold and silver sales. Average realized
price is calculated on revenue and ounces sold to all customers, except Franco-Nevada, as gold ounces sold to Franco-Nevada is recognized in revenue at 20 percent of the prevailing gold spot price on the date of delivery and
80 percent at $1,250 per ounce. The average realized price is intended to provide additional information only and does not have any standardized definition under IFRS; it should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS. Other companies may calculate this measure differently.
“EBITDA” excludes income tax, finance costs (before accretion expense), interest income, and depreciation and amortization from net profits. EBITDA is intended to provide additional information to investors and analysts and do
not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that EBITDA is a valuable
indicator of our ability to generate liquidity by producing operating cash flow to: fund working capital needs, service debt obligations, and fund capital expenditures.
“Free cash flow” is calculated as net cash flow provided by operating activities less sustaining capital expenditures. The Company believes this to be a useful indicator of our ability generate cash for growth initiatives.
Starting in 2018, the Company adopted “adjusted net profit attributable to shareholders” and “adjusted basic earnings per share” as new non-IFRS financial measures. These non-IFRS financial measures are used by
management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period is expected to help management and investors evaluate earnings trends more
readily in comparison with results from prior periods. The Company calculates “adjusted net profit attributable to shareholders” as net (loss)/profit attributable to shareholders adjusted to exclude specific items that are significant,
but not reflective of the underlying operations of the Company, including: the impact of unrealized and realized foreign exchange gains and losses, gains and losses on derivative instruments, accretion expense on long-term
obligations, impairment provisions and reversals thereof, and other unusual or non-recurring items. Commencing the second quarter 2018, the Company also excluded the impact of foreign exchange movements on deferred
taxes and other non-cash fair value changes from adjusted net profit attributable to shareholders as management does not believe these factors to be reflective of the underlying performance of the Company. “Adjusted basic
earnings per share” is calculated using the weighted average number of shares outstanding under the basic method of earnings per share as determined under IFRS
For more information and the reconciliation of these measures, please refer to the Company’s latest management’s discussion and analysis accessible on the Company’s website at www.terangagold.com.
Endnotes
39
1. Wahgnion’s Mineral Reserve and Mineral Resource estimates as per as at May 31, 2018. For more information regarding Wahgnion’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report
for the Wahgnion Gold Operations dated October 31, 2018 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.
2. Sabodala’s Mineral Reserve and Mineral Resource estimates as at June 30, 2017. For more information regarding Sabodala’s Mineral Reserves and Resources and related notes, please refer to the NI 43-101 compliant technical report for the
Sabodala Project dated August 30, 2017 accessible on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
3. Golden Hill’s Mineral Resource estimate as at November 30, 2018. For more information regarding Golden Hill’s Mineral Resource and related notes, please refer to the press release dated February 21, 2019 available on the Company’s
website at www.terangagold.com and SEDAR at www.sedar.com.
4. This production target is based on proven and probable reserves only from Teranga’s Sabodala Project as of June 30, 2017. For more information regarding Teranga Gold’s Mineral Reserves and Resources and related notes, please refer to
the NI 43-101 compliant technical report for the Sabodala Project dated August 30, 2017 available on the Company’s website at www.terangagold.com and on SEDAR at www.sedar.com.
5. LOM assumptions include: Gold Price $1,250 per ounce
Heavy Fuel Oil (HFO): Wahgnion - $0.59 per litre; Sabodala - $0.46 per litre
Light Fuel Oil (LFO): Wahgnion - $1.04 per litre ($0.88 per litre during construction period); Sabodala - $0.81 per litre
Euro to USD Exchange Rate: $1.10.
6. This Sabodala free cash flow is an estimate that is based on the updated life of mine plan and reserve estimate for the Sabodala project, as set out in the Technical Report of Teranga for the Sabodala Project, Senegal, West Africa, dated
August 30, 2017 (the “Sabodala Technical Report”). See in particular Section 21 of the Sabodala Technical Report - Capital and Operating Costs.
7. This production target is based on proven and probable ore reserves only for Teranga’s Wahgnion Project as at May 31, 2018. For more information regarding the Wahgnion’s Mineral Reserves and Resources and related notes, please refer to
the NI 43-101 compliant technical report for the Wahgnion Gold Operations dated October 31, 2018 available on the Company’s website at www.terangagold.com and SEDAR at www.sedar.com.
8. Net cash flow excludes Wahgnion financing, resource development and exploration expenditures.
9. 22,500 ounces of Sabodala gold production are to be sold to Franco-Nevada Corporation (“Franco-Nevada”) at 20% of the spot gold price. All Wahgnion gold production is subject to a gold offtake payment agreement with Taurus Funds
(“Offtake Agreement”) (see Financial Instruments section for more details).
10. All-in sustaining costs per ounce is a non-IFRS financial measure and does not have a standard meaning under IFRS. All-in sustaining costs per ounce sold calculated at the mine site level includes only total cash costs per ounce and
sustaining capital expenditures. All-in sustaining costs for Sabodala includes sustaining capital expenditures but excludes growth capital related to the Sabodala village resettlement. Corporate administration and share-based compensation
expense are presented separately in this table and are not allocated to the mine site level costs. All-in sustaining costs presented on a consolidated basis includes corporate administration and share-based compensation expense. All-in
sustaining costs also includes non-cash inventory movements and non-cash amortization of advanced royalties.
11. Excludes capitalized deferred stripping costs, included in mine production costs.
12. Share-based compensation expense assumes a constant share price of C$4.00 per Teranga share.
13. Exploration and evaluation costs includes both expensed exploration, primarily attributable to exploration work on exploration permits, and capitalized reserve development, which is work performed on mine licenses.
14. This forecast financial information is based on the following material assumptions for the remainder of 2019: gold price: $1,250 per ounce; Brent Crude Oil: $62 per barrel; Euro:USD exchange rate of 1:1.15. Other important assumptions: any
political events are not expected to impact operations, including movement of people, supplies and gold shipments; grades and recoveries is expected to remain consistent with the life-of-mine plan to achieve the forecast gold production; and
no unplanned delays in or interruption of scheduled production.
15. These numbers were reported from Whittle pit shells that were run at different gold prices at the corresponding cut-off grades.
TSX:TGZ / OTCQX:TGCDF
Trish Moran
Head of Investor Relations
77 King Street West, Suite 2110
Toronto, ON M5K 2A1
T: +1.416.607.4507
W: terangagold.com