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MELBOURNE MINING CLUB
Mark Calderwood
6 December 2012
West Africa: A 3000-year-old gold region
DISCLAIMER
The factual information provided in this presentation has been sourced from various public
sources. That information together with the presenter’s personal judgement and experience
has been used in preparing this presentation and to express various opinions for the sole
purpose of this presentation and in the context of the circumstances in which this Presentation
is provided. No reliance should be placed on the presentation and its contents and nothing
said in it constitutes advice of any nature. The presenter accepts no liability for the content of
this presentation or for the consequences of any actions taken on the basis of the information
provided in the presentation.
WEST AFRICA, WHY WE’RE THERE
WEST AFRICA
Mali Mauritania
Niger
Burkina Faso
Ghana
Guinea
Senegal
Sierra Leone
Benin
Togo
Nigeria
Liberia
2010 Produced
2011 Produced
2013 Forecast
2015 Forecast
6.7Moz 7.3Moz 8.5Moz 11Moz
Côte d’Ivoire
Region’s top 5 gold producers in 2011:
47% Ghana
16% Mali
15% Burkina Faso
9% Guinea
5% Côte d’Ivoire
Mali Mauritania
Niger
Burkina Faso
Côte d’Ivoire Ghana
Guinea
Senegal
Sierra Leone
Benin
Togo
Nigeria
Liberia WEST AFRICA
Gold 7.3 million ounces (Up 65% in 5 years)
Mali Mauritania
Niger
Burkina Faso
Côte d’Ivoire Ghana
Guinea
Senegal
Sierra Leone
Benin
Togo
Nigeria
Liberia WEST AFRICA
Loulo
Wassa CIL
Chirano
317
184
170
Ahafo
Guelb
540
85
2005 2006 2007 2008 2009 2010 2012 2011
Taparko
Tasiast
128
230
Mana
Bonikro
Youga
Hwini-Butre
130
120
85
80
Syama
Tabakoto
Kalsaka
Sabadola
200
90
75
170
Tongon
Essakane
Inata
260
320
138
Gounkoto
Edikan
Nzema
320
250
100
(Kozs pa)
17 Potential new mines
21 New gold mines since 2005
VIC
WEST AFRICA
Top 10 gold deposits
Top 20 gold deposits
Top 30 gold deposits
Mali
Niger
Burkina Faso
Côte d’Ivoire Ghana
Guinea
Senegal
Sierra Leone
Liberia
Total ~200Moz
Total ~275Moz
Total ~345Moz
NEGATIVE HEADLINES
Cote d'Ivoire Plans 19% Windfall Tax on Gold Miners' Profits
Reuters
RISKS & OBSTACLES
Technical Risks
(Predictable)
Geology
Metallurgy
Mining
Capital & engineering
Workforce (skills & team)
Maintenance & supply
Environmental & OHS
3rd Party Risks
(Unpredictable)
Government take*
Social licence
Red & green tape
Security
Gold price, fuel price etc.
Electricity cost & supply
*Government take = tax & duties, royalty, equity
GOVERNMENT TAKE
Ghana Mali Burkina
Faso
Guinea Côte
d’Ivoire
Liberia Senegal Sierra
Leone
Tax Equivalent Basis (%)
50 49
38
60
38 42
47 52
Source: Country data
THE BIG 4
Mali Mauritania
Niger
Burkina Faso
Ghana
Guinea
Senegal
Sierra Leone
Benin
Togo
Nigeria
Liberia
Côte d’Ivoire
Ghana Africa for beginners
English speaking, English law
Good mining infrastructure
Ghana 12 significant gold mines
7th largest gold producer in the world
2nd largest in Africa
Four tier-one companies
Ghana 10% Government equity
5% Royalty
35% Corporate tax
Mali
Good geology high grade gold deposits
Poor infrastructure
Current political issues likely to pass
Mali
6 significant gold mines
3rd largest producer in Africa
Mali
6% Royalty
35% Tax
7-10% Dividend tax
10-20% Government equity
5 Year tax holiday
Burkina
Faso
French-speaking West Africa for beginners
Easy place to operate
Lots of gold mineralisation
Landlocked country
Burkina
Faso
6 gold mines
20 ASX listed companies
Burkina
Faso
Royalty
5%
Corporate tax rate cut
17.5%→25%
Government equity
10%
Dividend taxes
6.25%
Côte d’Ivoire
Least explored of the four
Untapped potential
French speaking, French law
Very good infrastructure
Côte d’Ivoire
2 large gold mines
2 on the way
Recovering after 10 years of civil unrest
Côte d’Ivoire
Total tax take of about 38%
under review
OTHER COUNTRIES
Guinea Poor infrastructure & poor Government focus
Least stable but good geology
Niger Very tough
Liberia Very poor infrastructure
High rainfall
Geology not yet convincing
Senegal Continuation of geology from Mali
Politics and law working well
Small geological footprint
Sierra Leone One decent gold deposit
Country rebuilding after long war
THE FUTURE
EXPLORATION NOT OVER BY A LONG SHOT
Significant discoveries in the past 3 years
Gounkoto (5Moz) Mali
Tasiast Deeps (+10Moz) Mauritania
Fekola (+3Moz) Mali
Massawa (+3Moz) Senegal
Batie West (3Moz) Burkina
Kiaka (+3Moz) Burkina
Dugbe (+3Moz) Liberia
Esaase (+3Moz) Ghana
5 KEY ELEMENTS
Know your country and community
Laws, infrastructure, social customs
Know your partner
A license application is only an application
Don’t get caught in overheads spiral
A good geochem anomaly or early drill hit does not mean a mine
Exploration, capital costs & operating costs will be more than you think
Video of Perseus Operation
MELBOURNE MINING CLUB
Mark Calderwood
6 December 2012
West Africa: A 3000-year-old gold region