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Tongon…overcoming challenges and deliveringFabrice Tamane
Investor Days November 2016
Randgold…building a solid portfolio towards the next discovery
TCHOLOGO applicationNMCI applicationNMCI permitRRL applicationRRL permitEXXOR application
300km
Nafoun400 Km2
(Passed CIM)
Nielle
Mankono
Fapoha North and South
Tiorotieri(guaranteed end
June 2016)
Tengrela North (Passed CIM)
Boundiali
Tengrela South (granted in Q2
2014)
Biebi_(NMCI)Passed CIM June
2016
Kouassi-DatekroNorth and Center
Exxor applications (submitted in Q1 2014)
Randgold applications (submitted in Q1 2015)
Tchologoapplication
(submitted in Q4 2014) Akrebi (NMCI)
(Submitted in Q2 2015)
Tongon…Randgold’s history in Côte d’Ivoire
1996 2001 2002 2007
2012
2008
2008
2010
20102010
2012
2011
Nominated best mine in Côte d’Ivoire
2011
20142012
2010
ISO14001 Certification
2012
2013 2015Nominated best mine in Côte d’Ivoire
2015Tongon Mine pays off its
shareholders loan
Randgold returns and commences 30 000m
drilling programme
Acquired Nielle exploration permit
Finalised prefeasibility study
Total resource [email protected]/t
Force Majeure declared –
exploration office closed
Reserve increased by
26% to 3.16Moz @
2.57g/t
First ore fed to Mill 1
on oxide ore
Mill 2 commissioned on oxide ore
Mine officially opened by president
Grid power switched on
Transition to 100%
sulphide ore Production continued as political crisis escalated
First gold poured
Mine construction
started
Oxygen plant upgraded from
20-30tpd
Additionalgensets
commissionedOHSAS18001
certificationTongon Mine declares and
pays first dividend
2016
Tongon organisational chart…
General MangerLuiz Correia
Operations ManagerD. Amourlaye
MiningManagerFranck
Dibi
MineralResourcesManager
AlanKouadjo
ProcessManagerLancinaCisse
EngineeringManager
Johan van Biljon
FinanceManagerFabriceTamane
HRManagerKabinè
Ouattara
CommunityManagerDeniseNgom
SHEManager
TheophilusAkita
SecurityManager
OuolliOuattara
Supply ChainManager
BenBinate
WA Operations Manager
Chiaka Berthe
Country ManagerBodiel Ndiaye
Tongon SA: 97% IvoiriansContractors: 91% IvoiriansCapital: 89% IvoiriansGrand Total: 1 741 EmployeesRatio (%): 93% Ivoirians
Tongon invests in local workforce…
RegionCompanies
Tongon Capital
Tongon SA
ToMi & Cont
SGS Air Liquide
FAT Security OKS Max. Othersubcontr
.
SubTotal
Capital Total
Community 489 475 53 2 26 51 53 11 95 1 255 31 1 286Other CI 94 127 7 1 1 53 9 11 26 329 1 330Other West Africa 3 45 3 4 12 16 83 83Other Expatriates 14 23 1 38 4 42Total 600 670 63 3 28 108 74 22 137 1 705 36 1 741% Ivoirian 97 90 95 100 96 96 84 100 88 93 89 93
17,76,8 6,3 5,9 4,8 2,6 2,8
82,393,2 93,7 94,1 95,2 97,4 97,2
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015 2016
Tongon Expats vs. National Employees
% Expatriés % Nationaux% Expatriates % Nationals
Tongon still remains ISO 14001 & OHSAS 18001 certifiedMalaria incident rate decreased year on year (reduction+75% since start of mine in 2010)Effective management of Public Health (Malaria, HIV /AIDS, EBOLA ) through effective prevention programmeson the Mine and surrounding Community.Tongon is in full control of occupational health surveillancefor employees –X-ray, Spirometry, Audiometry andBiological assessments working in different zones withdifferent occupational exposures
Tongon…Safety, health and environment
Zero Class 1 and zero major environmental incidentsEffective water management: 70% reduction in freshwater usage. 68% of process water recycledContinual good water management system in placewith priority to reuse of process water.Stack emission analysis was conducted by ENVAL,Abidjan, on the gensets, incinerator, vehicles and theSGS lab – Results shown no negative impact from ouroperationsTongon Environmental Audit was successfully validatedby ANDE for the next 3 yrs.
.
EnvironmentHealth and Safety
2,33
0,19 0,240,45
0
0,8
0,4
0
0,5
1
1,5
2
2,5
2010 2011 2012 2013 2014 2015 2016
LTIFR132
89
65 6050 42
50
20406080
100120140
2010 2011 2012 2013 2014 2015 2016
Malaria Incident Rate 2010-20161,10
0,48
0,02
0,200,32 0,26
0,00
0,20
0,40
0,60
0,80
1,00
1,20
2011 2012 2013 2014 2015 2016
Fresh water used / ton milled
Tongon…Reserves and resources
2km
N0.5 – 1.0g/t1.0 – 2.0g/t2.0 – 3.0g/t3.0 – 4.0g/t
> 4.0g/t
SouthernZone
NorthernZone
TONGON TOTAL MINERAL RESOURCES AND RESERVES (Moz)
Reserves Resources
0 1 2 3 4 5 (Moz)
Years
End of September 2016 faces (SZ)
End of September 2016 faces (NZ)
End of December 2016 faces (SZ)
200 RL190 RL 200 RL 223.4 RL
190 RL186.
7 RL
200 RL 220 RL
203.4 RL
190 RL
190 RL
310 RL
345 RL320 RL
330 RL
280 RL
310 RL
320 RL313.4 RL
320 RL
280 RL
HGLGMO
HGLGMO
HGLGMO
HGLGMO
End of December 2016 faces (NZ)
DUMPERS FOR HAULING 3 x CAT 777G16 x CAT 777F
DRILL RIGS FOR DRILLING 5x DM 302x ROC L81X ROC L8 FOR GCROMPAD CRUSHER FEED 2XCAT 992 LOADER
EXCAVATORS FOR LOADING 3x LIEBHERR 9350
Tongon…mining
Processing plant…simplified process
Sulphide ore
Coarseore
stockpile
Primary jaw
crushing
Oxide ore
Tailings storage facility
Accounting sampling points
Loaded carbon
Fineore
stockpile
Secondary crushing
Tertiary crushing
Wet Screening
Conveyor belt
Cyclone Conc. thickener
Calibration tank
Float tailsthickener
CIL circuit (tank 4-10)
Detox(tank 11-
14)ElectrowinningElutedcarbon
Flash float, fine grind
Rougher flotation
fine grind
Smelting
Conc. treat.
Quaternary crushing
467
491
509
498494
504
519 521
530
545
420
440
460
480
500
520
540
560
Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016
Complete hydrocone crusher installation
Rougher cell 1 operation
Flash flotation optimisationFirst Quaternarycrusher installation
New circuit commissioned
Rougher cell 2 and 3 operation
Tongon operational efficiency…
Flotation upgrade and crushing circuit extension
Flotation upgrade 4th crushing stage
Relocation of the dewatering
circuit
Tonnes 000
Mill throughput and recovery…
0
10
20
30
40
50
60
70
80
90
100
0
1000
2000
3000
4000
5000
6000
2010 2011 2012 2013 2014 2015 2016 2017 2018
Gold recovery %ThroughputKt
Throughput, Kt Recovery,%
Tongon…power generation, usageand cost
Blended Power normalised cost
(0.11$/kWh)
CIE Credits Received
Tongon…operating results
9 months ended 12 months ended30 Sep2016
31 Dec2015
31 Dec2014
MiningTonnes mined (000) 21 406 28 826 26 126Ore tonnes mined (000) 3 034 3 563 3 566MillingTonnes processed (000) 2 732 4 018 3 984Head grade milled (g/t) 2.4 2.3 2.3Recovery (%) 83.2 82.6 78.0Ounces produced 175 700 242 948 227 103Ounces sold 173 131 241 478 227 103Average price received ($/oz) 1 269 1 148 1 264Cash operating costs* ($/oz) 804 801 834Total cash costs* ($/oz) 842 836 872Gold on hand at period end# ($000) 5 361 1 576 -Profit from mining activity* ($000) 73 938 75 444 88 963Gold sales* ($000) 219 716 277 253 287 026
Refer to Q3 2016 quarterly report for footnotes
Tongon…actual and forecast production
0
1
2
3
4
0
100
200
300
400
500
600
700
800
900
1000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Oz actual Oz forecast Total Cash Cost/oz Capital Grade
Production Oz 000Total cash cost/ozCapex $m Grade g/t
Project-to-date investment in surrounding communities of +$6 millionMonthly meetings with the Local Development Committee (LDC) to resolve concerns and grievances and discuss development projectsGM’s Quarterly visits to the villages chiefs and permanent visits of the Community ManagerAnnual report presentation to the community
Our engagement with the local community…
Raccordée au réseau CIE
HousesAgribusiness initiatives started with the community involvement:
80 ha maize project startedFish farming floating cages to be increased from 10 to 15 cages 5 ha vegetable gardens, including 4 ha of hot peppers, for womenPoultry of 2 500 broilers and 2 000 layers to be addedTwo pigsties of 25 pigs (reproduction phase) with a third planned for M’bengué8 sales points to be constructed this yearInvestigating to bring in a national agriculture company in our working area
Agribusiness… the future
Tongon Contribution to Côte d’Ivoire economy…$0.9 billion
Royalties and Other Taxes
$0.1bn
Local suppliers, local salaries, community
investment$0.8bn
Total contribution $0.9 billion
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 note to US investors: The United States Securities and Exchange Commission (the SEC) permitsmining companies, in their filings with the SEC, to disclose only proven and probable ore reserves. Randgold usescertain terms in this annual report such as ‘resources’, that the SEC does not recognise and strictly prohibits thecompany from including in its filings with the SEC. Investors are cautioned not to assume that all or any parts ofthe company’s resources will ever be converted into reserves which qualify as ‘proven and probable reserves’ forthe purposes of the 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.
