kibali site visit…
TRANSCRIPT
Kibali site visit…January 2016
Randgold Central and East Africa structure…
MetManagerAndrews
Awini
FinancialManagerNortonKabeya
Eng.ManagerHennie Snyman
GM Kibali MineCharles Wells
CEO RRLMark Bristow
COO C & E / AWillem Jacobs
Social &Sustainability.
ManagerBombitiNzanza
MineDirector
BruceFerreira
SupplyChainTeddy
Mbiyavanga
Regional Gov.
LiasonJean Pierre
Mbuluyo
SafetyManagerEghardVoigt
HRManager
LucieKikadi
ExplorationManager
JustusKwibisa
MRMManagerJP Kabala
(acting)
Kinshasa OfficeManager
RoyBondo
Country ManagerCyrille Mutombo
FINANCENaude van Eck
SecurityManager
SmithKombo
UG ManagerAntonioKanduri
OC Manager
JeanKasongo
Kibali supply routes…
Dar es Salaam
Mombasa
1 800 km
1 950 km
Kibali
Overview of Kibali history in Randgold….
2006On site due diligence
by Randgold
Sep 2009Acquired
Moto Goldmines (70% Kibali) in JV with AGA in a public
international auction
Dec 2009JV acquired a further 20% in
Kibali from SOKIMO
Feasibility updated reserves
doubled to over 10Moz
Sep 2013
2010Formal notice to
illegal miners and alternate work
programme started
Mar 2010MOU signed with Catholic Church
Jul 2010
Aru-Doko road upgrade completed
Nov 2010Established Kokiza village
for resettlement
Feb 2011
Revisedfeasibility
Aug 2011 May 2012First Gold &
completion of RAP
Commissioning and ramp up of met facility
and associated infrastructure
completed
Pre-construction
started
Oct 2011 2014JV approves feasibility and vote capital
2015Full year production at
design specsNzoro 2
hydropower station
completed
Mineral resources and exploration…
Major gold bearing cratons of Africa…
N
1000km
South Sudan
Cameroon
Kibali GoldMine
N
100km
Uganda
Tanzania
Kenya
DRC
Gold endowment NE DRC/Tanzania…+63Moz
Neo-Archeangreenstone belts (2800 to 2500ma)
Meso-Proterozoic Kibaran lithologies(1600 to 1000ma)
Acacia / Buzwagi62.95Mt @ 1.29 g/t2.2 Moz
AGA / Geita Project88.53Mt @ 3.26g/t9.26 Moz
Acacia / Bulyanhulu26.1Mt @ 9.23 g/t27.75 Moz
Acacia / North Mara28.03Mt @ 3.01 g/t2.72 Moz
Mongbwalu2.5 Moz
Mwana / Zani Kodo38.04Mt @ 2.43g/t2.97 Moz
Kibali / KCD district192Mt @ 3.39g/t20.8 Moz
Loncor / Makapela4.1Mt @ 7.59g/t1 Moz
Kilo Gold / Adumbi20.8Mt @ 2.5g/t1.68 Moz
Banro / Twangiza project252.7Mt @ 1.60g/t12.99 Moz
6 -8 hr drive
IsiroBelt
Makapela(Loncor)1 Moz @ 7.59g\t
ADUMBI(KGL)1.67 Moz @ 2.5g\t
NgayuBelt
ManbasaBelt
KibaliBelt
MotoBelt
ZaniBelt
Mongbwalu(ex AGA)2.5 Moz
Zani-Kodo(Asa Res.)2.97 Moz @ 2.4g\t
Kibali(RRL-AGA)20.8 Moz @ 3.4g\t
Regional geology and JV’s…
10km
N
Plunging mineralised lode 7 priority targets along KZ
Sessenge SWTrench results of 15m @ 1.5g/t:augers of 1.8g/t and lithos to 10g/thighlight 4 targets of possible up-plungecontinuation of mineralisation
Kanga SudStratigraphic hole intersected foldrelated low grade mineralisation
Tete BakangweTrench results of 10.8m @ 3.3g/t:augers of 8.2g/t and lithos to 8.7g/tIdentify plunging high grade target
Ikamva-KalimaStratigraphic holeintersected narrowfold relatedmineralised zones;mapping confirms NNE trendingstructure hosting HGshoots
MegiGeologic review confirmed NEplunging higher grade mineralised zones
Oere-LibalaTrenching confirmsNNE regionalstructure, and smallscale NNE plungingfolds
Mengu HillStratigraphic holeconfirms lithogicsequence; potential for blindmineralisation furtherwest in fold hinge
KCD
KZ trend…potential over 35km of strike
KZ…trend-gap analysis
Gaps in drilling
5750mRL
250mMineralization Foot Print
“S2” structure
2000m
N5850mRL
1
2
3
4
Kalimva-Ikamva
Mengu Hill
Oere-Libala
Mofu
Mengu village
Megi
Pamao
Pakaka
AerodromeKanga Sud
KCDSerssenge
Kibali South
Tete Bakangwe
Rhino Agbarabo
Kombokolo
Gorumbwa
Sessenge SW
N
PakakaRhino
Agbarabo
3.2 Km
+150m
NESW
500m
1000m
250m
Tete Bakangwe
Potential to be tested
1 2
Agbarabo: historic mine600koz@39g/t50-100m diameter HG [email protected]/t – ARC034
Rhino: Target 20m diameter HG [email protected]/t ($800 pit shell)[email protected]/t - RHDD0003
KZ…Agbarabo-TeteB-Pakaka trend(Section looking NW)
1000m
KZ…Tete Bakangwemining flexibility
PMRC11216m @ 2.54g/tInc. 2m @ 12.5 g/t10m @ 4.36g/tInc. 2m @ 12.8g/t14m @ 0.47 g/t
TRC00216m @ 5.9g/t
TBTR001210.8m @ 3.3g/t
PDD1506.45m @ 1.79g/tInc. 2m @ 6.63 g/t39.55m @ 1.42g/tInc. 2m @ 9.62g/t1.12m @ 7.6 g/t2m @ 4.87g/t
TBTR00652m @ 1.8g/tInc. 6.5m @ 6.6g/t
Auger results0.3m @ 6.21g/t
TBTR001143.2m @ 1.7g/tInc. 7.2m @ 3.0g/t
TBTR002225m @ 9.18g/tInc. 11.5m @ 16.89g/t23.3m @ 1.29g/t
Auger results0.5m @ 8.19g/t
Auger results0.5m @ 4.31g/t
TBTR0092158m @ 1.20g/tInc. 20m @ 2.02g/t
TBTR0092462m @ 1.59g/tInc. 89.5 @ 3.2g/t12m @ 0 49g/t15m @ 0.54g/t57.5m @ 0.9g/t
TBTR0092011m @ 0.85g/tInc. 8m @ 2.01g/t
LithosamplesUp to 3g/t
Kanga SudKCD1.8kmKibali South
Sessenge SW
Airborn EM conductivity
NESW
+150m
9000 lode
500m
1000m
250m
Kibali River
17.8 moz resource endowment
3 4Sessenge
KZ…Kibali South-Sessenge-KCD trend(section looking NW)
1000m
GORUMBWA4.15Mt @ 3.16g/t for 422 koz
SESSENGE9.4Mt @ 1.62g/t for 492 koz
KOMBOKOLO2.5Mt @ 2.02g/t for 164.5 koz
KCD
KIBALISOUTH
Kibali River
SESSENGE
Z1
Z4
5000
KCD open pit22.8Mt @ 2.31g/t for 1.69 Moz
Z2
Z33000
9000Lithos10.7g/t
red squares = >=0.5g/t (auger)magenta squares = >= 0.8g/t (auger)
KZ…Sessenge SW-Sessengenew discoveries: resource-reseve replacement
Durba Hillwest wall
STR0058m @ 2.88g/t
SessengeGap
5000 lodeup plunge
Lithos1.8g/t2.1g/t
STR0051.2m @ 6.5g/tSTR0062m @ 5.48g/t
STR001840.5m @ 3.7g/t
STR000222m @ 4.01g/t
STR001728m @ 3.18g/t
Sessenge 9008 lode0.45Mt @ 1.69g/tfor 24koz
DHDD000123.5m @ 3.0g/t
DBTR000414m @ 1.99g/t
Metallurgical facility…
Metallurgical plant…
Twin circuit metallurgical facility…
CIL Fl
otat
ion
CIL
Flot
atio
n2
Flot
atio
n1
Conc.
Oxide + Sulphide treatment Sulphide Only treatment
Conc.
UFG/Pump Cell UFG/Pump
Cell
Ball 2 Ball 1Ball 2Ball 1
Twin circuit processing strategy…
Material crushed directly into ball mill 6.1m diam. x 9.5m Gravity and flash float ahead of conventional CILCIL tails through detox to lined TSFCircuit designed at 300ktpm or 3.6MTPAEach Ball Mill capable of 300ktpm or 3.6MTPA. CIL residence time capable of 358ktpm / 4.3MTPASecond bank of flotation cells to follow the gravity and flash float circuits (making it identical to the other sulphide circuit)
Oxide / transition SulphideFresh Open Pit material crushed through primary jaw and secondary cone (with provision for tertiary cone if required) onto mill feed stockpile. Mill identical to oxide/trans at 6.1m diam. x 9.5mFresh underground material crushed through primary jaw crushers underground and conveyed to stockpile inside met plant ahead of secondary crushingGravity and flash floatFull flotationFlotation tails (benign) direct to unlined TSF or backfill/paste plantCircuit designed at 300ktpm or 3.6MTPA (single mill and flotation bank)
Mill capable of 300ktpm or 3.6MTPA .
Plant throughput…2015
0
5000
10000
15000
20000
25000
30000
01-Ja
n08
-Jan
15-Ja
n22
-Jan
29-Ja
n05
-Feb
12-F
eb19
-Feb
26-F
eb05
-Mar
12-M
ar19
-Mar
26-M
ar02
-Apr
09-A
pr16
-Apr
23-A
pr30
-Apr
07-M
ay14
-May
21-M
ay28
-May
04-Ju
n11
-Jun
18-Ju
n25
-Jun
02-Ju
l09
-Jul
16-Ju
l23
-Jul
30-Ju
l06
-Aug
13-A
ug20
-Aug
27-A
ug03
-Sep
10-S
ep17
-Sep
24-S
ep01
-Oct
08-O
ct15
-Oct
22-O
ct29
-Oct
05-N
ov12
-Nov
19-N
ov26
-Nov
03-D
ec10
-Dec
17-D
ec24
-Dec
31-D
ec
Throughput Linear (Throughput)
Mining…
A fully integrated mine design…
9000 lode5000 lode
Shaft
Boxcut
Open pit
Mine design
Haulage level
Crusher and Pumping stations
1km
Opencast mining…
Multiple pits to be mined over 10 yearsKCD pit mining started in July 2012Production achieved with trained local operators3 x Liebher 9350 diggers 1 x Liebher 984 digger 19 x 777G dedicated to production and auxiliary equipment as supportThe mine plan, including ore production and plant feed, was achieved for the year
Overview
Underground mine complex…Shaft
A 751m shaft, 8m diameter concrete lined Shaft capacity wet tonnes (includes 5% moisture) = 3.6Mt/yrShaft capacity dry tonnes = 3.43Mt/yrAverage tonnage hoisted from the shaft on current schedule = 3Mt/yrDedicated hoisting shaft but it will be equipped with a service cage for maintenance purposes
Material Handling and OrepassNine orepasses feeding onto a haulage drive Automated loader feeding from orepasses to crusher2 sets of crushers underground with 1000 t capacity for coarse and fine bin each
Paste PlantPaste plant with 190 m3/hr capacityFull flexibility in throughput and binder contentCommissioned in April 2015
Underground mining…vertical shaft
Shaft bottom reached on 22 July 2015Load box arrangement and full equipping completed 2 September 2015Shaft equipping in progressUG infrastructure development on schedule (ventilation fans, pumping, support, production level) for completion Q2 2017Stoping on schedule
Shaft development progress…
Lode level
Production level
Crusher level
Main tramming level
Development completed
Off shaft development –to commence 6 Feb 2016
Decline development…
Decline development started in Dec 2012 with Byrnecut as contractorByrnecut consistently achieving the development targets Rate of advance has been materially better than planned in the feasibilityAn average of 300m/month/jumbo was reached in development and the decline contractor has now ramped up to 900m/monthA total of 22.5km has been developed project to date For 2015 a total of 10.5km was developed of which 5.4km in capital and 5.1 km in opexStoping tonnes ramped up during the year from 30kt/month to 70kt/month in Q4 2015Total ore tonnes for the year was 800k t
Shaft development progress…
C-Decline current position 5445mL
Development completedPlanned development 2016Planned development 2017
Vertical shaftDecline
development
Vertical shaft:
Stoping progress…
Priority headings are shown in the graphic above - Blue line represents the actual as built up to November 2015.
Kibali underground mining…shaft sinking
Hydropower…
Our power strategy…
Supply concept is a hybrid arrangement
Peak power Deliver peak power on the available river schemes average flows
Dry season low flow powerMaximize the number of stations supplying to maximize the power available in the low flow periods
Diesel back-up generationFor power load fluctuations of shaft winder and Met plantInitially provide dry season make-up power from high speed diesel unitsSubstitute (diesel generation) with more hydro stations as overall power demand grows
Station Plan Min output (low flow
MW)
TargetOutput
(peak MW)
Completion
Nzoro 2 Operational 8 22 QTR2 2014
Ambarau Under Construction 3 10 QTR2 2016
Azambi Designed and planned for 2018 3 10 QTR3 2018
Total Main 14 42
Our plan…the supply of power via hydro
Nzoro ll hydropower plant construction…
4 turbines generating 22MW Synchronisation of power produced from Nzoro2 with diesel power plant via power management system
Views from canal of Nzoro forebay structure and control room
Nzoro turbine installations on lower level
Ambarau project
Project update…
Kibali…actual and forecast production
0
1
2
3
4
5
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 2019Actual production Total cash cost/oz Capex Grade
Grade g/tTotal cash cost/oz
Capex $m
Gradeg/t
Productionoz 000
Cash cost$/oz
Capex$m
*To be updated with Q4 2015 results on 8 February 2016
* * ** *
Health and safety…
Kibali, health safety and environment…
Health and SafetyISO45001 H&S system certification scheduled for 2016Malaria incident rate decreased by 54% in 2015Zero fatalities
113.14
70.2761.05
65.73
35.66
0
20
40
60
80
100
120
2011 2012 2013 2014 2015
RAT
E
Malaria Incident Rate 2011-2015
6.14
2.49
0.59 0.51 0.54
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015
RAT
E
LTIFR
EnvironmentISO14001 certification completeNo major environmental incidentsBiodiversity action plans in place
Community…
In country investment…2010 to Q4 2015
Visible contributions directly in the area of the project:
$161.01m
Non visible contributions:$1.48Bn $139.02m EMPLOYEE BASED EXPENSES
TAXES and PERMITS
PAYMENTS TO SUPPLIERS
US$ 000
Nzoro Power line Road ARU - Ariwara RoadNorthern By-pass road Southerrn By-pass road Direct Community Project `s Doko - ARU road Kokiza (Houses only) AggregatesPrevention (HIV & Malaria)
US$ 1 351US$ 1 180US$ 1 042US$ 263US$ 15 003US$ 37 042US$ 92 866US$ 11 876US$ 393
National : $ 254.3m Provincial and Local : $ 859.1m
$ 229m
Our impact…employment
From artisanal mining to a world class mine
At peak construction project employed more than 12 000 people (2012)
Currently the mine employs 4 500 people directly, including contractors
-
20
40
60
80
100
KATANGA KINSHASA NORD KIVU ORIENTALE SUD KIVU
Q 3 Q 4
Local supply…Kibali contributes to DRC economy
Provincial distributionNumber of local contractors – quarter on quarter comparison
Local supply…Kibali fulfills its undertaking
Baseline register published in January 2015 updated with details of ownership and shareholding
Additional $95 million spent on local contractors / companies during the quarterOngoing civil construction and maintenance by Congolese contractors, roadworks and small open pit mining projects performed by Congolese businesses (Traminco, M&T, IOB, TBO and MC Global)Camp maintenance operator fully operationalOre hauling from satellite pits provided by 3 companies from the Oriental Province
Local contractors are now primary contractors in hydroscheme projects – Ambarauand Azambi
Construction of Kibali sports facilities and community stadium awarded to local earthworks contractor
Apportionment of transport contracts between Mombasa and Doko between Congolese, Ugandan and Kenyan operators progresses
Kibali caterer increases sourcing of fresh produce from local farmers and suppliers
Partnership with Mama Malewa maintained - a collective of around 50 women (all mothers) from the local Durba area running small mobile kitchens and feeding over 2 000 workers daily
Local and international spend…
$ million
0200400600800
10001200140016001800
2014 2015
InternationalLocal
Specialist contractsShaft sinking
Underground miningMaster drilling
$ million
0
20
40
60
80
100
120
2014 2015
InternationalLocal
Construction contract
$ million
0
50
100
150
200
250
300
350
2014 2015
InternationalLocal
General services and supply chain
contract
0
500
1000
1500
2000
2500
2014 2015
InternationalLocal
Total contract spend
$ million
Kibali invests in local economicdevelopment…
Local economic development YTD Community projects Q4
Health16%
Potable Water20%
Food security
4%
Education30%
General30%
Type of funding Amount
Relocation of soap-manufacturing soleil to DURBA $75 380
Free to air TV $41 820
Shop operated by Dominican Nuns $30 600
Agribusiness training Project $85 000
Agribusiness microfinance $105 000
Microfinance Project to Kokiza women $153 000
Independent microfinance Uele COOPEC $153 000
Kibali microfinance fund / microcredit $306 000
Kibali entrepreneurship Program $50 200
TOTAL (incl. bank fees) $1 000 000
Kibali…Making a difference
The Kibali project has allowed the development of a thriving local economy
“When I returned to the area I knew it would be a great challenge, but I understood that this area will grow and increase long after mine closure. "Jean Bakomito, Uele Motors
Inter Oriental Builders (IOB) is a Congolese company that has used the
opportunities provided by Kibali to develop substantially ".
Local entrepreneurs have taken advantage of the opportunity to create an abattoir that now generates a constant income for community members
Kibali has facilitated the development of Mama Malewa - a group of about 50
women from the Durba area, who run small mobile kitchens that feed over 2000
workers per day.
Agri-enterprise…Palm oil
Proposed project includes:20 000 ha plantation (new) and 20 000 ha private independent community outgrowers2 milling and processing plants 1 refineryWill initially import Malaysian crude oil for refining to generate income while crop matures
Palm oil project "Bilanga Palm Oil" will create products with full added value, eg. soap, oil, lotion etc.Products will be labeled and marked "Product of the Democratic Republic of Congo"Negotiations with key shareholders in progressNegotiations with the government as part of ongoing investmentPotential for job opportunities exceeding 10 000
Agro-enterprise…pilot maize project
Congolese private company formed to exploit maize projectIt is planned to request Congolese capital participationFirst 82 ha planted and harvested in 2015The goal is to expand to 300 hectares in 2016
Looking ahead…2016
Business plan for 2016…
Gold production target 600 000 ouncesUG mine development on scheduleCommission Ambarau hydrostationContinued nationalisation of management teamSecure more exploration permits in DRCCollect long outstanding TVAWork with Government and industry to establish competitive mining codeObtain ISO 45001 H&S system certificationEstablish large scale agribusiness venture Improve working relationship with Provincial Government
Disclaimer…
Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As suchnumbers are reported to the second significant digit. They are equivalent to National Instrument 43-101. Mineralresources are reported at a cut-off grade based on a gold price of US$1 500/oz.The reporting of mineral reserves is also in accordance with Industry Guide 7. Pit optimisations are carried out at agold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at acut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on agold price of US$1 000/oz. Dilution and ore loss are incorporated into the calculation of reserves. Cautionary noteto US investors: The United States Securities and Exchange Commission (the SEC) permits mining companies, intheir filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in thisannual report such as ‘resources’, that the SEC does not recognise and strictly prohibits the company fromincluding in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company’sresources will ever be converted into reserves which qualify as ‘proven and probable reserves’ for the purposes ofthe SEC’s Industry Guide number 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical informationcontained herein, the matters discussed in this presentation are forward-looking statements within the meaning ofSection 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, andapplicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statementswith respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineralreserve estimates, the timing and amount of estimated future production, costs of production, reservedetermination and reserve conversion rates. Generally, these forward-looking statements can be identified by theuse of forward-looking terminology such as ‘will’, ‘plans’, ‘expects’ or ‘does not expect’, ‘is expected’, ‘budget’,‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’ or ‘does not anticipate’, or ‘believes’, or variations ofsuch words and phrases or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will betaken’, ‘occur’ or ‘be achieved’. Assumptions upon which such forward-looking statements are based are in turnbased on factors and events that are not within the control of Randgold Resources Limited (‘Randgold’) and thereis no assurance they will prove to be correct. Forward-looking statements are subject to known and unknownrisks, uncertainties and other factors that may cause the actual results, level of activity, performance orachievements of Randgold to be materially different from those expressed or implied by such forward-lookingstatements, including but not limited to: risks related to mining operations, including political risks and instabilityand risks related to international operations, actual results of current exploration activities, conclusions ofeconomic evaluations, changes in project parameters as plans continue to be refined, as well as those factorsdiscussed in Randgold’s filings with the US Securities and Exchange Commission (the ‘SEC’). Although Randgoldhas attempted to identify important factors that could cause actual results to differ materially from those containedin forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated orintended. There can be no assurance that such statements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements. Randgold does not undertake to update any forward-lookingstatements herein, except in accordance with applicable securities laws.CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their filings with the SEC, to discloseonly proven and probable ore reserves. We use certain terms in this release, such as ‘resources’, that the SECdoes not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned notto assume that all or any parts of our resources will ever be converted into reserves which qualify as ‘proven andprobable reserves’ for the purposes of the SEC’s Industry Guide number 7.