Amara Mining plc Developing a Top African Gold Mine

Amara Mining plc 

Developing a Top African Gold Mine 

Investor Presentation 

January 2016

Disclaimer 

This document comprises an institutional presentation (the “Presentation”) which has been prepared by and 

is the sole responsibility of Amara Mining plc (“the Company”). The content of this Presentation has not been 

approved by an authorised person within the meaning of section 21 of the Financial Services and Markets Act 

2000 ("FSMA"). Reliance on this Presentation for the purpose of engaging in any investment activity may 

expose an individual to a significant risk of losing all of the property or other assets invested. 

Peter Brown is a “Qualified Person” within the definition of National Instrument 43-101 and has reviewed and 

approved the information contained within this Presentation. Dr Brown (MIMMM) is the Group Exploration 

Manager for the Company. 

This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or 

subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or 

act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or 

inducement to engage in investment activity under section 21 of the FSMA. 

Notwithstanding the above, in the United Kingdom, this Presentation is only being given to persons 

reasonably believed by the Company to be investment professionals within the meaning of paragraph (5) of 

Article 19 or to high net worth companies or unincorporated associations within the meaning of paragraph (2) 

of Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529), 

and any will only be available to such persons who are also qualified investors within the meaning of section 

86(7) of the FSMA purchasing as principal or in circumstances under section 86(2) of the FSMA. This 

Presentation is only being sent to persons reasonably believed by the Company to be investment 

professionals or to persons to whom it may otherwise be lawful to distribute it. If you are not such a person (i) 

you should not have received this Presentation and (ii) please return this Presentation to the Company's 

registered office as soon as possible and take no other action. By accepting this Presentation the recipient 

represents and warrants that it is a person who falls within the above description of persons entitled to 

receive this Presentation. The Company does not undertake any obligation to provide the recipient of this 

Presentation with access to any additional information or to correct any inaccuracies herein which may 

become apparent. 

This Presentation is not intended to be distributed, or passed on, directly or indirectly, to any other class of 

person and in any event under no circumstances should persons of any other description rely or act upon the 

contents of this Presentation. This Presentation and its contents are confidential and must not be distributed 

or passed on, directly or indirectly, to any other person. This Presentation is being supplied to you solely for 

your information and may not be reproduced, further distributed or published in whole or in part by any 

other person. 

No representation or warranty, express or implied, is made or given by or on behalf of the Company, its 

advisers or any of their respective parent or subsidiary undertakings or the subsidiary undertakings of any 

such parent undertakings or any of the directors, officers or employees of any such person as to the accuracy, 

completeness or fairness of the information or opinions contained in this Presentation and no responsibility 

or liability is accepted by any person for such information or opinions. No person has been authorised to give 

any information or make any representations other than those contained in this Presentation and, if given 

and/or made, such information or representations must not be relied upon as having been so authorised. The 

contents of this Presentation are not to be construed as legal, financial or tax advice. The information has not 

been verified by the Company nor independently verified by the Company’s advisers. 

In Canada this presentation is only to be distributed to persons or companies reasonably believed to be 

"accredited investors" within the meaning of NI 45-106. 

www.amaramining.com 

Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or its 

territories or possessions (the “United States”), or distributed, directly or indirectly, in the United States, or to 

any U.S Person (as defined in Regulation S under the Securities Act 1933 as amended), including U.S resident 

corporations or other entities organised under the laws of the United States or any state thereof or non-U.S 

branches or agencies of such corporations or entities, except as permitted under the Securities Act 1933 or to 

any U.S. Person to whom this Presentation may be lawfully distributed in reliance on an exemption from 

registration that is available under the Securities Act 1933 and by persons authorized to do so, or into 

Australia, Japan, South Africa or the Republic of Ireland. Neither this Presentation nor any copy of it may be 

taken or transmitted into or distributed in Australia, Japan, South Africa or the Republic of Ireland, or any other 

jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to 

comply with this restriction may constitute a violation of United States or other national securities law. By 

accepting this Presentation, the recipient represents and warrants that they are a person who falls within the 

above description of a person entitled to receive this Presentation. The Company's ordinary shares have not 

been registered under the Securities Act 1933. The Company has not been, and will not be, registered under 

the United States Investment Company Act of 1940, as amended, and investors will not be entitled to the 

benefits of that Act. 

Forward-Looking Statements: Information contained in this Presentation may include 'forward-looking 

statements'. All statements other than statements of historical facts included herein, including, without 

limitation, those regarding the Company's financial position, business strategy, plans and objectives of 

management for future operations (including exploration and development plans and acquisition 

opportunities) are forward-looking statements. Such forward-looking statements involve known and unknown 

risks, uncertainties and other important factors which could cause the actual results, performance or 

achievements of the Company or the markets and economies in which the Company operates to be materially 

different from future results, performance or achievements expressed or implied by such forward-looking 

statements. Factors that could cause actual results or events to differ from current expectations include, 

among other things, political, regulatory and economic risks and other risks involved in the mineral exploration 

industry. The Company believes that the assumptions inherent in the forward-looking statements are 

reasonable; however, forward-looking statements are not guarantees of future performance and accordingly 

undue reliance should not be put on such statements due to the inherent uncertainty therein. The Company 

expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forwardlooking 

statements contained in this Presentation to reflect any changes in its expectations with regard thereto 

or any change in events, conditions or circumstances on which any statement is based, save as required by 

relevant law or regulatory authority. 

Any mineral resource figures referred to in this Presentation are estimates and no assurances can be given that 

the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on 

knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a 

given time may significantly change when new information becomes available. By their nature, mineral 

resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may 

ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this 

could have a material adverse impact on the Company. Due to the uncertainty that may be attached to inferred 

mineral resources, it cannot be assumed that all or any part of an Inferred mineral resource will be upgraded to 

an indicated or measured mineral resource as a result of continued exploration. Mineral resources that are not 

mineral reserves do not have demonstrated economic viability. 

2

Building on Exploration Success 

BURKINA FASO 

• AIM-listed West African focused gold 

explorer/developer 

FREETOWN 

GUINEA 

Baomahun 

(Amara) 

Tongon 

(Randgold) 

CÔTE d’IVOIRE 

GHANA 

• 10.1Moz Mineral Resource (7.4 Moz 

M&I, 2.7Moz Inferred) - largest 

resource base of any London-listed 

junior miner 1 

SIERRA LEONE 

LIBERIA 

Ity 

(La Mancha) 

Bonikro 

(Newcrest) 

Yaoure 

(Amara) 

YAMOUSSOUKRO 

Agbaou 

(Endeavour) 

Abidjan 

• Yaoure Gold Project has potential to be 

one of the largest gold mines in Africa 

by production - 3.2Moz Mineral 

Reserve 

• Yaoure is located in central Côte 

d’Ivoire – low cost power and reliable 

infrastructure 

• US$21m fundraise in Q1 2015 – further 

potential US$10m from IFC 

Brownfield site 

Hydro-electric power 

Dual carriageway within 40km 

• Second strong growth opportunity 

through high grade Baomahun Gold 

Project 


1. A junior miner is defined here as an explorer/developer or a producer with 

FY14 production of

Strong Board and Technical Leadership 

EXECUTIVE DIRECTORS 

TECHNICAL LEADERSHIP 

John McGloin, Chairman and CEO 

Geologist 

Former mining analyst with 

extensive African mining experience 

Pete Gardner, Finance Director 

Chartered Accountant 

Corporate finance experience and 

former FD of Alexander Mining 

Peter Brown 

Group Exploration Manager 

Geologist with 25 years’ experience 

including working for Gold Fields 

Nigel Tamlyn 

Senior Project Manager 

Mining engineer, formerly COO of La 

Mancha, GM of Bogoso Prestea mine 

NON-EXECUTIVE DIRECTORS 

Hendrik Faul 

Mining engineer 

Held a number of senior roles 

within Anglo American plc 

Peter Hain 

Ex-UK Member of Parliament 

Former Minister of State 

with responsibility for Africa 

Geoff Stanley 

Geologist 

Former mining analyst with 

capital markets experience 

Peter Cowley 

Geologist 

Extensive experience leading 

African mining companies 

Alex Davidson 

Geologist 

Former EVP of Exploration and 

Corp. Dev. at Barrick Gold 


4

Million ounces Au 

Yaoure: 7.3 Million Ounce Mineral Resource 

Yaoure Mineral Resource – US$1,500 pit shell 1,2 

Tonnes 

(Mt) 

Grade 

(g/t Au) 

Gold content 

(Moz) 

Measured 18.6 1.86 1.1 

Indicated 85.5 1.47 4.0 

Inferred 47.7 1.41 2.2 

Mineral Resource Update Highlights 

• Mineral Resource update delivered in November 2015 – larger 

resource at higher overall grade 

• 62 diamond drill holes drilled to upgrade further Inferred ounces 

to M&I categories and increase overall grade 

• Targeted areas in northern area of Yaoure Central zone - historic 

rip line data and RC drilling suggested gold content was 

understated in current model 

Increase in size of 

total resource 

Increase in overall 

grade of resource 

Amara’s Resource Growth 3 

12 

2012-2015 Growth of 

Yaoure resource 

491koz 

Increase in size of M&I 

resources 

739koz 

20% 

Resources now in M&I 

categories 

71% 

10 

8 

6 

4 

2 

0 

2007-2011 Growth of 

Baomahun resource 

2007 2008 2009 2010 2011 2012 2013 2014 2015 

Years 

Inferred 

M&I 


1. See slide 17 for resource footnotes regarding assumptions 

2. Using a 0.5g/t cut-off grade 

3. Resource numbers exclude Kalsaka and Sega 

5

Higher Grades and Greater Concentration of Resource Ounces 

Old Model: 2014 

New Model: 2015 

The centre of the 

resource has 

migrated to the 

north of the 

deposit, 

concentrating the 

resource into a 

better defined area. 

Old Model: 2014 

New Model: 2015 

More higher grade 

ore delineated in 

northern area of 

Yaoure Central zone 

and stronger 

continuity. 


6

Potential to Increase Grade of CMA Zone 

CMA Zone Intercepts 

Borehole 

From 

Interval 

Grade 

ID 

(m) 

(m) 

(g/t) 

YDD0230 66 6 3.73 

YDD0179 95 9 3.93 

YRC0723 120 4 1.98 

YDD0054 136 11 2.45 

YRC0728 161 10 4.34 

YDD0133 161 22 2.56 

YDD0341 170 12 5.57 

• Grade of CMA zone positively impacted through selective mining – 

reduce impact of dilution 

• Average intercept on Section 7300 is 13m at 4.06g/t 

• CMA zone demonstrates strong continuity throughout deposit 

YDD0341 195 7 6.55 

YDD0079 196 29 3.24 

YRC0738 219 29 4.68 

YDD0135 239 6 5.62 


7

Strengthening Core of Yaoure Central Zone 

Close-Up of Northern Area of Yaoure Central Zone 

Section 7300 before 2015 drilling 

programme 

Section 7300 after 2015 drilling 

programme 


8

Yaoure: 3.2 Million Ounce Mineral Reserve 

Mineral Reserve Update Highlights 

New Yaoure Mineral Reserve – US$880/oz pit shell at 0.5g/t c-o grade 

Increase in size of 

reserve 

583koz 

% increase in size of 

reserve 

22% 

% of M&I resources 

now defined as 

reserves 

63% 


Increase in head grade 

of resource 

0.44g/t 

% increase in head 

grade of reserve 

37% 

% of total resources 

now defined as 

reserves 

44% 

Category Tonnes (Mt) Grade (g/t) Content (Koz) 

Proven 18.1 1.82 1,057 

Probable 44.2 1.54 2,189 

Total 62.3 1.62 3,246 

Previous Yaoure Mineral Reserve – US$975/oz pit shell at 0.33g/t c-o grade 

Probable 70.4 1.18 2,663 

• Larger Mineral Reserve at higher overall grade 

• Enlarged cash margins - new estimate is based on US$880/oz pit 

shell compared to US$975/oz pit shell used in previous estimate 

• Estimate is based on capital and cost estimates generated by the 

PFS announced in May 2015 

• Quotations received from suppliers have confirmed that the 

prices of many consumables have declined significantly 

• Work is continuing on PFS optimisation – focusing on 6.5Mtpa 

scenario and smaller scenarios 

• Results expected later in Q1 2016 and work on Bankable 

Feasibility Study (BFS) will then commence 

9

• Two exploration licence 

areas in Côte d’Ivoire 

Lake Kossou 

Exploration Licence 

Mining Licence 

(in application) 

Yaoure East 

Exploration 

Licence 

• Second licence area 

acquired in Q2 2015 

• Resource area is only a 

small part of original 

licence area 

• Mining licence application 

submitted in August 2015 

• Soil geochemistry and 

geophysics have identified 

other areas similar to 

resource area 

• Through further mapping, 

trenching and soil 

sampling, drilling targets 

will be identified 

• Potential to deliver 

satellite deposits for 

Yaoure and increase mine 

life 


10

Baomahun: A Second Strong Growth Opportunity 

Probable Mineral 

Reserves 

Head Grade of Mineral 

Reserves 

1.2Moz 

1.62g/t 

Indicated Mineral 

Resources 

Inferred Mineral 

Resources 

• Feasibility stage project in central Sierra Leone 

• Archean-age deposit with high grade core and grades that 

improve at depth 

• Feasibility Study delivered in Q2 2013 based on 2Mtpa 

open pit only scenario – strong economics at US$1,350/oz 

gold price 

• Potential to increase production to 100,000oz in 1Mtpa 

scenario – low-cost optimisation work underway 

2.2Moz 

Average Production 

over life of mine 1 

98,460oz 

0.5Moz 

Life of Mine* 

12 years 


1. According to Baomahun Feasibility Study (2Mtpa CIL plant) 

11

EV/P&P Reserve (US$/oz) 

Grade (g/t) 

Amara’s Mineral Reserves Valued at US$9/oz 

Amara’s total Mineral 

Reserves 

4.5Moz 

Yaoure’s EV/Mineral 

Reserve Valuation 

US$13/oz 

Average EV/Mineral 

Reserve Valuation of 

Peer Group 

US$78/oz 

400 

African Gold Mining Companies’ EV/Reserve Valuations 1 

6.0 

350 

300 

250 

300.7 

5.0 

4.0 

200 

150 

100 

50 

0 

187.7 

123.3 

111.3 

98.5 

56.9 

26.7 31.8 34.2 42.2 43.1 45.6 

5.3 9.2 

2 

Perseus Amara Resolute Avocet Golden Star IAMGold Teranga Asanko True Gold Banro Endeavour Aureus Roxgold Semafo 

3.0 

2.0 

1.0 

0.0 

Producer Developer Grade (g/t) 


1. Graph as at 25 January 2016 

2. Roxgold’s weighted average grade is 11.8g/t 

Source: Bloomberg, Peel Hunt and company disclosures 

12

Amara Mining plc 

Contact Us 

John McGloin 

Chairman & Chief Executive Officer 

Katharine Sutton 

Head of Investor Relations 

+44 (0)20 7398 1420 

ir@amaramining.com 


13

Appendix: Market Information 

Listing Information 1 

One Year AIM Share Price Performance 1 

AIM Ticker: 

AMA 

Shares Issued (undiluted): 420,386,077 

Shares Issued (diluted): 444,808,577 

Share Price: 7.50p 

Market Capitalisation: 

£31m (US$45m) 

3 month average daily volume: 389k shares 

Cash at 30 June 2015 

US$13.6m 

Analyst Coverage 1 Recommendation TP 

BMO Capital Markets Market perform 10p 

Canaccord Genuity Buy 28p 

Cantor Fitzgerald Buy 50p 

Cenkos Securities Buy 24p 

Mirabaud Securities Buy 28p 

Stifel Nicolaus Europe Buy 18p 

Peel Hunt Buy 27p 

Whitman Howard Hold 30p 

Top Shareholders 2 

Aurum Holdings (RDV Corporation) 15.3% 

Franklin Templeton 14.0% 

JP Morgan 7.6% 

Ingalls & Snyder 7.4% 

Tembo Capital 5.9% 

Van Eck Global 4.4% 

Sustainable Capital 3.4% 

Total Directors’ Holding 0.9% 


1. As at 25 January 2016 

2. As at 17 December 2015 

14

Yaoure: Analysis of Mineral Reserve 

New Yaoure Mineral Reserve – US$880/oz pit shell at 0.5g/t c-o grade 

Category 

583koz 

Tonnes 

(Mt) 

CMA ZONE YAOURE CENTRAL TOTAL 

Grade (g/t) 

Content 

(Koz) 

Tonnes 

(Mt) 

Grade (g/t) 

Content 

(Koz) 

Tonnes 

(Mt) 

Grade (g/t) 

Content 

(Koz) 

Proven 10.9 2.17 763 7.1 1.29 296 18.1 1.82 1,057 

Probable 14.4 1.84 850 29.8 1.39 1,334 44.2 1.54 2,189 

Total 25.3 1.98 1,613 37.0 1.37 1,629 62.3 1.62 3,246 

Previous Yaoure Mineral Reserve – US$975/oz pit shell at 0.33g/t c-o grade 

Proven 4.5 0.97 140 4.5 0.96 140 9.0 0.96 279 

Probable 29.9 1.39 1,335 31.5 1.05 1,064 61.4 1.21 2,389 

Total 34.4 1.33 1,475 36.0 1.04 1,204 70.4 1.18 2,663 

Change: New Mineral Reserve vs Previous Mineral Reserve (%) 

(26%) 49% 9% 3% 32% 35% (12%) 37% 22% 


1. Numbers may not add correctly due to rounding 

15

Capex and Opex Expected to Reduce Further 

Operating Cost Breakdown (US$/oz produced) 

PFS 

Operating Cash Cost 685 

Freight and refining 4 

Royalties (and community fund) 50 

Total Cash Cost 739 

Sustaining Capex 43 

All-In Sustaining Cost 782 

Total Capex 186 

All-in Cost 968 

Capital Costs (US$m) 

PFS 

Process plant 112 

Tailings Management Facility (“TMF”) 14 

Infrastructure and site facilities 53 

EPCM and Indirects 75 

Plant and Infrastructure Capital Cost 254 

Mining fleet 107 

Mining pre-strip 33 

Contingency 53 

Total Pre-Production Capital Cost 447 


• Potential top 10 African gold mine in terms of lowest all-in 

sustaining costs with optimisation targeting further reduction 

• Low mining costs (US$2.08/t mined) due to: 

— Simple ore body – bulk mining approach 

— Single open pit and rationalised site layout 

— Low oil price and electric shovels utilised as part of mining 

fleet 

— Owner-operator mining – cheaper than contractor 

• Low processing costs (US$10.63/t processed) due to: 

— Low cost grid power – US$0.08c/kWh 

— Single stage crush and SAG milling – low cost process 

configuration 

— Simple metallurgy and low reagent consumption 

— Benefits from economies of scale 

• Cash margin remains strong at today’s gold price and below 

• Upfront capital cost of US$447m for 6.5Mtpa project – expected 

to decrease through optimisation work 

• Total payback period of 3.0 years 

16

Group Resources and Reserves 

RESERVES 

Category 

Tonnage 

(Mt) 

Grade 

(g/t) 

Contained Gold 

(koz) 

Yaoure 1 Proven 18,069 1.82 1,057 

Probable 44,214 1.54 2,189 

Baomahun 2 Probable 23.3 1.62 1,210 

RESOURCES 

Category 

Tonnage 

(Mt) 

Grade 

(g/t) 

Contained Gold 

(koz) 

Yaoure 1 Measured 18.6 1.86 1,114 

Indicated 85.5 1.47 4,042 

Inferred 47.7 1.41 2,156 

Baomahun 2 Indicated 38.4 1.82 2,242 

Inferred 6.6 2.52 535 

TOTAL Indicated 7,398 

TOTAL Inferred 2,691 

1. Resources shown as inclusive of reserves. The reserves were calculated using a 0.5g/t cut-off and a US$88/oz gold price, effective date 24 November 2015. The resources 

were calculated using a 0.5g/t cut-off and a US$1,500 gold price, effective date 24 November 2015. A NI 43-101 compliant technical report will be published on Amara’s 

website in due course. 

2. Resources shown as inclusive of reserves. The reserves were calculated using a 0.5g/t cut-off and a US$1,100/oz gold price. The resources were calculated using a cut-off 

grade of 0.5g/t within a US$1,500/oz open pit shell and a 2.0g/t cut-off for resources suitable for underground mining. A technical report titled “Feasibility Study of the 

Baomahun Project in Sierra Leone NI 43-101 Technical Report” and dated 28 June 2013 is filed on SEDAR. 

Group Reserves and Resources 

Reserves: 4.5Moz 

M&I Resources * : 7.4Moz 

Inferred Resources * : 2.7Moz 


*Inclusive of Mineral Reserves 

17

Amara Mining plc Developing a Top African Gold Mine

Create successful ePaper yourself

Delete template?

Save as template?