Kibali successfully concludes 8 year capital development programme - Randgold Resources
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Kibali successfully concludes 8 year
capital development programme…
Safety, Health and Environment…
Safety
LTIFR of 0.3 for Q1 2018 vs 0.47 for previous quarter
1 LTI recorded by a local construction contractor
A number of corrective actions implemented:
LTIFR/million hours
Safety file check for all local contractors
worked
Risk assessments to be reviewed and prior 7
approval of a job card to be obtained
6
Contractor management procedures now
being reinforced to ensure that list of tools 5
and equipment are checked
ISO 45001 GAP Analysis conducted: documentation 4
being reviewed and communicated and trainings of
HODs and representatives scheduled for Q2 3
Mine rescue team’s refresher training held 2
Environment 1
Mine’s conversion to the latest ISO14001:2015
0
environmental standard was successfully certified 2011 2012 2013 2014 2015 2016 2017 Q1
Kibali - Garamba park partnership continues: 3 additional 2018
bridges under construction to promote security patrols
within the park
Safety, Health and Environment…
HIV HIV positivity rate %
Mass sensitisation in the community 20
with a local NGO Afia Santé:
15
awareness campaigns, VCT, condom
distribution to hotels and bars, flyer 10
production and distribution
5
HIV positive rate decreased further to
1.75 from 17% in 2011 and 3.5% in 0
2011 2012 2013 2014 2015 2016 2017 Q1
2017 2018
Malaria Malaria Incidence Rate %
Malaria incidence rate of 1.85% 120
compared to 3.74% same quarter in 100
2017 80
60
Biodiversity and land management
40
plan monitored closely to protect habitat –
20
1300 trees planted around the Ambarau
dam and eco centre 0
2011 2012 2013 2014 2015 2016 2017 Q1
2018
Update for Q4 and full year 2017…
Gold production up 17% quarter on quarter and 2% for the year at 596 225oz
Successful commissioning of underground materials handling system and vertical shaft
Increase in plant throughput and recovery quarter on quarter with predominantly full
sulphide feed
Plant throughput above design capacity while full sulphide feed volumes were further
increased
Total cash cost decreased 13% in Q4 to $654/oz but increased year on year due to
impact of higher strip ratios in open pits and lower grades before UG ramp up in Q4
Construction of next phase of tailings storage facility initiated in Q4 providing additional
capacity for CIL tails
Azambi – third hydropower station on schedule for first power in mid 2018
Successful conversion of environmental management system to new ISO 14001:2015
Community development focused on installation of 30 water boreholes along Aru-Doko
road and a network of multiple access points in Durba town - $1.95 million spent on
community development projects in 2017
Q12018 …progress towards delivering
on business plan
Commissioning of automated underground mine
completed
Shaft hoisting, materials handling system and
haulage level drives increase in underground
tonnage and feed grade
Production on track for 730 000oz in 2018 as per
guidance
Focus on:
Ramp up of UG ore production
Development of management team
Transition to UG owner mining mid-year
Resolution on outstanding TVA credit
Agreed tax-offsets only partially implemented
Gorumbwa RAP continues
Engagement with government on the
implementation of the 2018 mining code continues
Capital projects…update
First lift of wall for tailings facility in progress
Paste plant pump and slag silo project for underground mine under
construction
Azambi hydropower plant remains on schedule for first power in mid 2018
Construction of powerhouse continues with key components now complete
2nd stage river diversion in progress with the temporary diversion berm being
extended
Dam wall, intake, mechanical engineering works, all in progress
Kibali plant recovery improvement…
Recovery %
87
86
85
84
83
82 85,8
84,3 84,7
81
83,5
80
81,1
79
78
Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018
Kibali underground mining Q1 2018…
Underground mining Ore tonnes mined Shaft Decline
300
Production ramping up through Shaft reaches
efficient use of shaft and 250 nameplate capacity
automation system - automation Production
phase I completed 200 ramping up
Multi-lift sublevel stoping with
multiple bogging horizon 150
Mass firing of up to 100kt using
electronic detonators successfully 100
implemented
50
0
Jan-18 Feb-18 Mar-18
Owner mining…
Transition planning advanced in preparation for owner mining this year
Shaft handed over and owner operated
Randgold’s Loulo mine to be used as base model and adapted to Kibali
specific conditions
Kibali cumulative capital versus revenue..
800 3,0
700
2,5
600
2,0
500
400 1,5
300
1,0
200
0,5
100
- 0,0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Oz actual Oz forecast Cumulative capital expenditure
Kibali reserves and resources…
Moz g/t
25 5
20 4
15 3
10 2
5 1
0 0
Reserves Resources Reserve grade g/t
Kibali power generation…
hydro / diesel power blend
Total power generation MW Unit cost $/kWh
40 0,30
35
0,25
30
0,20
25
20 0,15
15
0,10
10
0,05
5
0 0,00
Mar-17
Mar-18
Oct-17
Jan-17
Feb-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Nov-17
Dec-17
Jan-18
Feb-18
Hydro Diesel Cost
Kibali underground development…LOM
design with 3000, 5000 and 9000 Lode opportunities
KCD Pushback 3
Sessenge $1000/oz design KCD
Open pit 15Koz mined in Q1 2018 Open pit PB#1
$1000/oz design
North 3000 Lode
up plunge extension
Ave drill intersection
17.1m @ 11.2g/t
3000 Lode
Current UG
reserve
9000 Lode
up plunge
extension
Sessenge Link
KCD Ore Mining LOM to Q4 17 5000 Lode
Mine down plunge
Mt Au g/t Moz
KCD Open pit 15.7 3.1 1.6
extension potential
KCD Underground 5.04 5.06 0.8
Total KCD 20.8 3.6 2.4
KZ structure…pipeline of projects
reinforces prospectivity
Matiko
Plunging shoots Ikamva
Ikamva
Kalimva on the shear Drilling at Ikamva confirms the high grade shoot at 330m
down plunge from old Belgium pit - key results include:
IVRC0103: 90m @ 1.29g/t incl 4m @ 2.79g/t,
Oere
8m @ 4.24g/t and 8m @ 3.69g/t
Mofu IVRC0104: 32m@3.8g/t incl 4m @12.32g/t;
Thrust plane mineralisation 2m @ 11.5g/t
Mengu
Megi
Pamao IVRC0110: 38m @ 3.54g/t incl 8m @ 8.03g/t,
Pakaka
12m @ 4.46g/t and 2m @ 5.2g/t
Agbarabo Aerodrome
Rhino
Kombokolo KCD
Makoke
Gorumbwa Drilling confirmed additional resource of
Sessenge
89.8koz @ 1.11g/t (at 0.64g/t cutoff) within Pamao –
Megi gap
Aindi-Watsa
Ndala North
Mineralisation supported by trenches with potential
Zambula extension SE toward Galako (5km gap) with active
artisanal within basalt similar to Ndala North
Shear sub-parallel to
foliation, Zakitoko – identified target
Watsa
planar/plunging shoots 6km strike length potential NS trending shear corridor.
Dome
of mineralisation Results of rock samples returned 30% (152 samples)
Zakitoko
above 0.2g/t up to 8.75 g/t within ferruginous chert
Kibali employees…
Expat
National Casuals Employees
336 (6%) 161 (3%)
National Expat
Employees Contractors
831 (14%) 315 (5%)
National
Contractors
4199 (72%) Nationals : 92%
Expatriates: 8%
Local contractors and supply strategy…
not just a CSR activity
$49.2 million spent on local contractors during Q1 2018
Azambi hydropower station construction in progress with local contractors
Open pit mining in satellite pits conducted by Congolese contractors
4 local contractors involved in ore hauling from satellite pits
Ongoing civil construction and roadworks performed by Congolese
contractors (Traminco, M&T, IOB and MC-Global)
Partnership with Congolese engineering contractor (TES) for plant
maintenance
Food and camp services
Kibali catering and camp services supplied by Congolese company
Kibali caterer purchases 100% of available quality food supplied locally
Nuns Guest House Tabitha operating and helping Watsa people and guests
with restaurant and accommodation
Local suppliers continued various CSR activities such as road improvements
in Durba, investment in education and support of vulnerable people
In country investment…2010 to Q1 2018
$2.32Bn paid by Kibali in the form of taxes,
permits, infrastructure, salaries and payments to local
Nzoro Power line Road
suppliers ARU - Ariwara Road
US$ million Northern By-pass road
Visible contributions directly Southern By-pass road
Direct Community Project
in the area of the project: Doko - ARU road
$169m Kokiza (Houses only)
Aggregates
Prevention (HIV & Malaria)
Non visible contributions:
SALARIES
$2.16 Bn $192m
TAXES and
$354m PERMITS
$1.61Bn PAYMENTS TO
SUPPLIERS
Local and international spend…
Specialist contracts* General
Shaft sinking services and
Underground mining Construction supply chain Total contract
Master drilling contract* contract* spend*
$ million $ million $ million $ million
2500 200 700 3500
180 600 3000
2000 160
140 500 2500
120 400 2000
1500
100
80 300 1500
1000 60 200 1000
40
20 100 500
500
0 0 0
2014
2015
2016
2017
Q1. 2018
2014
2015
2016
2017
Q1. 2018
2014
2015
2016
2017
Q1. 2018
0
2014
2015
2016
2017
Q1. 2018
International International International
Local International Local Local Local
* Cumulative spend
Kibali makes a difference through its
CSR activities… Q1 2018
LED projects (YTD)
Uele Coopec microfinance recovers $21 839 in reimbursements
Nuns’ microfinance recovers $282 in reimbursements
Nuns’ Lagae Shop generates $15 479.6 from sales
Youth training: certificates handed over by general manager to 121 youths trained in
masonry, welding and carpentry
Capacity building: training provided to 2500+ teachers (pre-primary, primary and
secondary) from Watsa Territory
Lecturers and students from the Education Technical college (ISIRO) visited the mine
and community projects
Construction of the community mortuary (first in the area) at CHK completed
$351 000 spend on all social and community projects YTD
Plastic recycling projects initiated from the different local artisans within the community.
Garamba park educational visits with environmental reps and primary school pupils
Durba water adduction project progresses well
Various cultural and sporting activities held: soccer, music, traditional dance, comedy
and beauty contests
Road safety campaign held with the Traffic Police and Civil Society
Some of our achievements…
Students visit Garamba National Park Gorumbwa water project
Agro processing training
Handover of government office in KokizaAgribusiness…local supply to Kibali
Egg production: 81 858 eggs produced from the
4 main community projects
12 small-scale pork projects with 229 heads and
3 500kg of pork meat sold to ATS
3 625kg of chicken sold to ATS and the
community
Incubator installed and operational with 500
chicks produced
Agribusiness…
Maize and other cultivars
883t maize shelled in the community
from the 2017 campaign
Harvest data compiled and report
submitted showing the potential of
having 6.5t per hectare for commercial
maize trial done late in Season B in 2017 Community maize
Cocoa: 13 883 seedlings distributed in
the community prior to transplantation
(13.29ha)
Palm oil
Under review given current investment
climate
Coffee nursery in KokizaOutstanding issues…update
TVA refund and duty claims (in violation of the Mining Code)
$203.4 m still outstanding at 31 March 2018 ($180.6 m in unpaid VAT and $22.6 m
in unsettled cheques) – In violation of the mining code and conditions set for
TVA re-imbursement
Findings from the enquiry commission established in parliament yet unknown
Dysfunctional mechanism and slowness in TVA offset against royalties, only $1.1m
collected last year
A further $32.7 m owed (fuel claims and cancelled tax credit on minimum corporate
tax
Minimum Corporate Tax – unilateral cancellation of our tax credit on back of Art. 39 -
unlawful
Tax on fuel sampling still being levied (in violation of the Mining Code)
Resolution of dispute over ownership of gold samples still outstanding
Issues relating to subcontracting not yet addressed through implementation of an arête
Slow implementation and functionality of ASM corridors
Requirement to create a more equitable partnership with Government on construction
and maintenance of national infrastructure through efficient application of FONER
Overall business environment deteriorates despite growth in mine production
Investing in the future notwithstanding
developments in the DRC….Regional soil programmes undertaken…
Concasseur*
+40km2 basin of high BLEG anomalism
Ganga
Areas of tightly folded BIF and Ikamva Kalimva-
metasediment with strong alteration
FT42Ex is 13.6m @@ Panier-Circule Kalimva Ikamva N
New channel samples and 15.83g/t
lithosamples Mutubi
returned:
CCCH0059 8.20m@ 1.65g/t; KZ trend:
CCCH0006 2.00m @ 2.64g/t Mengu Aerodrome-
Concasseur
10.80g/t and 3.46g/t. Megi Megi
Agbarabo Aerodrome
Kombokolo
Gau Basin-Meyo AOI* Gorumbwa Kombokolo-
Geologically complex domain of WNW- Sessenge
KCD Rhino-
ESE trending units Gau Aindi-Watsa Agbarabo
Mapping at Meyo extended envelope of Meyo Zambula
mineralisation to over 1km in length
FT42Ex
within iscorridors.
three 13.6m @@ 15.83g/t
Sampling within volcanoclastics and
Babarao Zembe South-East*
granodiorite returned:
8.74g/t, 6.26g.t, 4.87g/t and (KZ Extension)
1.31g/t. Mangazi Continuation of +23km
8.11g/t, 0.88g/t and 0.79g/t long, continuously
Dubele FT42Ex is 13.6m @@
mineralised KZ Trend
Andui Beverendi
Moku trend* Zembe SE 15.83g/t
into Moku Permit
Updated interpretation has identified Intersection of major
FT42Ex is 13.6m
volcanoclastic @@
unit and MT 15.83g/t
contact NE structure
Focused gold-in-soil programme of 3,950 Soil programme
samples completed 10km
underway
*Moku JV currently suspended
Ngayu Belt targets with Regional
Geological Interpretation…
80km infrastructure
renovated to access targets Golgotha
in the west of the belt. 2km strike of alteration within folded BIF and
64 bridges rehabilitated for basalt/metasediment contact associated to
cars. shearing and thrusting.
Generative work associated Proximal and distal parts of the mineralisation
to a review of the high- intercepted
value BLEG anomalies
FT42Exalong the strike.
is 13.6m @@ 15.83g/t
Channel samples and lithosamples returned:
generate 10 identified o 13m @ 0.51g/t including 1m @ 2.34g/t,
targets in the area: followed by 2m @ 0.71g/t and 1m @
FT42Ex o
is 13.6m
Bavadili, @@
Mondarabe, 1.79g/t.
15.83g/t
Mambati, Elshadai o Up to 5.94g/t within distal mineralisation and
and Angundali in the up to 1.71g/t within walls.
West.
o Bakpau, Nabunda
and Niezi in the
Centre. Anguluku Central
o Golgotha and Itali in 1.5km strike of alteration within the
the East. same structural framework as Golgotha
Lithosamples in sheared and Baberu Bayinga.
dolerite basalt contact Channel samples and lithosamples
returned up to 9.16g/t. returned in the proximal part of the
mineralisation:
FT42Ex3m
is @
o 1.34g/t,@@
13.6m 2m @15.83g/t
1.2g/t, 1m
@ 2.02g/t and 2.5m @ 5.5g/t.
Baberu Bayinga o Up to 10.6g/t within cherty BIF.
Mineralisation and anomalies surveyed along o Up to 1.35g/t within
1.5km related to thrusting structures. undifferentiated volcanic and
Silica and chlorite alteration with pervasive sedimentary rocks.
FT42Ex is
sulphidation 13.6m
within @@ and
BIF, basalt 15.83g/t o Up to 1.89g/t within deformed and
metasediment. demagnetized BIF.
Lithosamples in cherty BIF and metasediment
10km
up to 1.13g/t.The DCR Mining Code: legislation challenges puts future of the industry at risk Mining code…working to address the issues around the 2018 law Following the meeting of 7 March 2018, work commenced on 19 March in six working groups Terms of reference of working groups have been defined by the Minister of Mines to formulate regulations to effect the promulgated 2018 mining code Industry submitted weekly reports to the working groups stating where the concerns of the industry have not been addressed Activities of working groups ended 23 April without addressing the core concern of industry Industry wrote to the Minister of Mines three times to register that their concerns cannot be addressed since the terms of reference exclude this In the absence of any real engagement on the issues raised by the mining industry, the industry table a proposal on the way forward on 29 March
Mining code…a proposal on a way
forward
Proposal made by industry to Minister of Mines on 29 March 2018 aimed
at:
Creating a win-win situation for all concerned
Break the current deadlock around vested rights stemming from the
2002 Mining Code and prior conventions
Holders of rights will waive certain matters of their vested rights
Recognise the aim of the Government to participate immediately in
rising commodity prices
Recocnise the inappropriateness of windfall taxes and strategic
minerals as a way to participate in rising commodity prices
It will require changes to the 2018 Mining Code since the recognition of
vested rights must be done through changes to the 2018 Mining Code
Response from Minister of Mines still outstanding
Industry engaged with all stakeholders, including civil society, to formulate
a way forward which would benefit the DRC, its people and investors
Impact of royalties proposed by industry
on revenue…
COPPER COBALT GOLD
Total revenue $ million Total revenue $ million Total revenue $ million
700 1,2 140
600
1,0 120
500 100
0,8
400 80
0,6
300 60
0,4
200 40
0,2
100 20
- 0,0 0
20
30
40
50
60
70
80
90
100
6000 7000 8000 9000 1000 1300 1600 2000 2300
Copper price $/t Cobalt price $/t Gold price $/oz
2018 Code Proposal 2018 Code Proposal 2018 Code ProposalDRC mine production…
positive impact of 2002 code
kg 000 Gold t 000 Copper
30 1500
25
20 1000
15
10 500
5
0 0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Au kg Cu t
t 000 Cobalt t Tin
15
100
80
10
60
40 5
20
0
0 2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Tin t
Co t
DRC mine production…
positive impact of 2002 code
Cassiterite t 000 Coltan
t 000
25 2,0
20 1,5
15
1,0
10
5 0,5
0 0,0
2007 2009 2011 2013 2015 2017 e 2007 2009 2011 2013 2015 2017 e
Crts million Diamonds t million Wolframite
40 1,5
30
20,1 1,0
20
0,5
10
0 0,0
2007 2009 2011 2013 2015 2017 e 2007 2009 2011 2013 2015 2017 eDisclaimer…
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information
contained herein, the matters discussed in this presentation are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, and
applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements
with respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral
reserve estimates, the timing and amount of estimated future production, costs of production, reserve
determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the
use 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 of
such words and phrases or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will be
taken’, ‘occur’ or ‘be achieved’. Assumptions upon which such forward-looking statements are based are in turn
based on factors and events that are not within the control of Randgold Resources Limited (‘Randgold’) and there
is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results, level of activity, performance or
achievements of Randgold to be materially different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to mining operations, including political risks and instability
and risks related to international operations, actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors
discussed in Randgold’s filings with the US Securities and Exchange Commission (the ‘SEC’). Although Randgold
has attempted to identify important factors that could cause actual results to differ materially from those contained
in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not undertake to update any forward-looking
statements herein, except in accordance with applicable securities laws.
CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their filings with the SEC, to disclose
only proven and probable ore reserves. We use certain terms in this release, such as ‘resources’, that the SEC
does not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned not
to assume that all or any parts of our resources will ever be converted into reserves which qualify as ‘proven and
probable reserves’ for the purposes of the SEC’s Industry Guide number 7.
Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As such
numbers are reported to the second significant digit. They are equivalent to National Instrument 43-101. Mineral
resources 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 a
gold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at a
cut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on a
gold 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) permits mining companies, in
their filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in this
annual report such as ‘resources’, that the SEC does not recognise and strictly prohibits the company from
including in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company’s
resources will ever be converted into reserves which qualify as ‘proven and probable reserves’ for the purposes of
the SEC’s Industry Guide number 7.You can also read
