1TSX: ROXG
2018 Third Quarter Financial Results
November 13, 2018
Mining High Grade Gold
in Burkina Faso
TSX: ROXG
2TSX: ROXG
This presentation contains forward-looking information. Forward looking information contained in this presentation includes, but is not limited to, statements with respect to: (i) the estimation of
measured, inferred and indicated mineral resources and proven and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral
resources and/or reserves and the expansion potential of existing mineral resources/reserves and the expansion potential of mining operations including with respect to proposed development at Bagassi
South and the anticipated timing thereof; (ii) proposed exploration and development activities (including proposed plant expansion), and the anticipated nature, success and timing thereof; (iii)
production, earnings, recovery rates and cost guidance as well as future sources of funding, capital expenditures and exploration budgets, (iv) permitting; and (v) expansion and growth potential and the
anticipated timing thereof including the anticipated production at Bagassi South and the timing thereof, and future economics and development activities related thereto; (vi) expectations the Company
will be within its 2018 cost guidance; (vii) statements that are not of historical fact; and (viii) any potential share buyback by the Company. For further details regarding the Yaramoko project, please refer
to the technical report entitled “Technical Report for the Yaramoko Gold Mine, Burkina Faso” dated December 20, 2017 (the “Technical Report”) as well as the press releases of Roxgold Inc. (“Roxgold” or
the “Company”) dated April 18, 2017 and the November 6, 2017, Bagassi South Feasibility Study news release.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases,
forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this
presentation is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect
thereof), the potential expansion of mining operations, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development
expenditures, and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary
regulatory approvals and permits, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these
assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations
in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources and/or reserves may not be
established, or the anticipated expansion potential of existing mineral resources/reserves or mining operations may not be realized), risks relating to changes in gold prices and the worldwide demand for
and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources
and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital
and operating costs and the risk of delays or regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes
concerning property titles and interest, and environmental risks. Please refer to the 2017 Management’s Discussion and Analysis filed on SEDAR at www.sedar.com on March 28, 2018 for political,
environmental or other risks that could materially affect the development of mineral resources and mineral reserves and other forward looking matters. This list is not exhaustive of the factors that may
affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking
information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable
securities laws.
Unless stated otherwise herein, the following Qualified Persons, as defined in National Instrument 43-101, have prepared or supervised the preparation of the scientific or technical information presented
in this presentation: Benny Zhang, P. Eng (SRK Consulting Canada Inc.), Sebastien Bernier (SRK Consulting Canada Inc.), Iain Cox, Interim Chief Operating Officer (Roxgold), Paul Weedon, VP Exploration
(Roxgold).
All amounts are in U.S. dollars unless otherwise stated.
Cautionary Statement
3TSX: ROXG
2018 Third Quarter Results Conference Call Participants
John Dorward
President & CEO
Iain Cox
Interim COO
Vince Sapuppo
CFOEric Pick
VP, Corporate
Development
Paul Weedon
VP, Exploration
4TSX: ROXG
2018 Third Quarter Highlights
87,975 tOre Mined
30,532 ozGold Production
78,357 tRecord Quarterly
Ore Processed
12.3 g/tAverage Head Grade
$454Cash Operating
Cost1/oz Produced
$788All-In Sustaining
Cost1/oz Sold
$18.6MCash Flow from
Mining Operations1
$0.05Cash Flow from
Mining Operations
per Share1
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the
Company’s Q3 2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com
All amounts in U.S. dollars unless otherwise indicated
5TSX: ROXG
2018 Third Quarter Operational Results
Q3 18 Q3 17YOY
Change
Gold Produced (ounces) 30,532 28,410 7%
Ore Mined (tonnes) 87,975 76,480 15%
Ore Processed (tonnes) 78,357 66,670 18%
Head Grade (g/t Au) 12.3 13.6 (10)%
Gold Recovery (%) 98.5 98.6 NM
Mill Operating Time (%) 94.9 95.8 NM
Ore Development (m) Gold Produced (ounces)
Ore Mined (tonnes) Ore Processed (tonnes)
0
200
400
600
800
1000
1200
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0
20,000
40,000
60,000
80,000
100,000
120,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
17/Q4 18/Q1 18/Q2 18/Q3
17/Q4 18/Q1 18/Q2 18/Q317/Q4 18/Q1 18/Q2 18/Q3
▪ 106,812 ounces of gold produced YTD putting Roxgold in a strongposition to achieve the upper end of its guidance range of 120,000 –130,000 ounces for the full 2018 year
▪ ROM Stocks of 43,511 tonnes at 11.6 g/t Au at the end of thequarter representing ~ 6 weeks of plant feed
17/Q4 18/Q1 18/Q2 18/Q3
6TSX: ROXG
Continuous Improvement - Ore Throughput
90.0
91.0
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
60,000
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
78,000
80,000
Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Ore Processed
(tonnes)
Gold Recovery
(%)
▪ Q3 2018 – Record quarterly processing throughput of 78,357 tonnes processed
representing 15% above nameplate capacity
7TSX: ROXG
2018 Third Quarter Financial Highlights
Q3 2018 Q3 2017 YOY
Change
Gold produced (ounces) 30,532 28,410 7%
Gold sold (ounces) 31,400 27,912 12%
Revenue $38M $36M 6%
EBITDA $17M $14M 18%
EBITDA Margin 45% 40% 13%
Average realized gold price $1,207/oz $1,286/oz (6%)
Cash operating cost1 (per ounce produced) $454/oz $445/oz 2%
Total cash cost1 (per ounce sold) $499/oz $522/oz (5%)
Sustaining capital cost1 (per ounce sold) $205/oz $258/oz (21%)
Site all-in sustaining cost1,2 (per ounce sold) $734/oz $779/oz (6%)
All-in sustaining cost1 (per ounce sold) $788/oz $833/oz (5%)
Cash flow from mining operations1 $18.6M $18.0M 3%
Cash flow from mining operations per
share1$0.05 $0.05 NC
Basic earnings per share1 $0.02 $0.02 NC
Cash Operating Cost1
$454/oz produced
EBITDA Margin1
45%
Return on Equity (Last twelve Months)
22%
Cash Flow From Mining
Operations1
$18.6M or
$0.05 per share
All-In Sustaining Cost1
$788/oz sold
1. This is a non-IFRS financial performance measure with no standard definition under IFRS.
See the “non-IFRS financial performance measure” section of the Company’s Q3 2018
MD&A available on www.roxgold.com or www.sedar.com
2. Site All-in sustaining costs excludes corporate G&A and in-country corporate costs.
All amounts in U.S. dollars unless otherwise indicated
8TSX: ROXG
High Mine Operating Margins1
$708 $813 $878 $782 $764
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017
Cash operating cost Total cash cost
Mining operating margin AVG realized gold price
All amounts in U.S. dollars
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non-IFRS financial performance measure” section of the
Company’s Q3 2018 MD&A available on the Company’s website at www.roxgold.com or www.sedar.com
▪ Strong operating margins contributing to an EBITDA margin of 50% for YTD 2018
9TSX: ROXG
Strong Cashflow GenerationIn millions of U.S. dollars
▪ Building cash while continuing to invest in underground development and Bagassi South
▪ $5.0 million of VAT reimbursed during Q3 - $9.6 million of VAT reimbursed YTD
10TSX: ROXG
Continuing to Build a Strong Balance SheetAs of September 30, 2018 in U.S. dollars
▪ Self-funding Bagassi South Expansion Project cost of ~$30 million
~$71MCash on hand
1. Represents the Face Value of Long-term debt representing the remaining balance owing on the Amended Facility.
~$41MLong-Term Debt1
▪ Net cash position of ~$30 million
11TSX: ROXGBagassi South Expansion
12TSX: ROXG
Bagassi South – Second High-Grade, Low Cost Underground Mine
▪ First ore delivered in October on schedule
▪ ~40% increase in Yaramoko gold production
▪ Estimated average gold production of 40,000 oz per year
▪ Cash Operating Cost1 – $361 per oz (LOM)
▪ All-in Sustaining Cost1 – $630 per oz (LOM)
▪ Self-funded by existing cash and internal cash flow
▪ Pre-production capital - $29.6 million
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See the “non-IFRS
financial performance measure” section of the Company’s 2018 Q3 MD&A available on the Company’s website at
www.roxgold.com or www.sedar.com
13TSX: ROXG
Process Plant Expansion – On track for Completion in Q4
▪ Plant expansion sees throughput increased to nearly
50% from 750 tonnes per day (“tpd”) to 1,100 tpd
▪ All materials on site to complete expansion
▪ Overall project completion expected to be on
schedule in latter part of Q4
▪ Ramp up to 1,100 tonnes per day expected in early
January
14
Growth
15TSX: ROXG
Focus on Regional ExplorationSiou
10 Km
Hounde Project
12 Km
55 Zone
Yaramoko1
2
3
4
5
6
7
8
55 Zone
Bagassi South
11
10
ID TARGETS
1 TW West Contact
2 BSN Foot Wall
3 San MVOL-VS and VS-DIO Contacts
4 HAHO Prospects
5 KAHO
6 Boni Shear
7 HOUKO
8 Bagassi Regional
9 Yaramoko Regional
10 300 Zone East Auger Grid
11 300 Zone North Auger Grid
▪ Large regional land package of
approximately 230 km2, located on the
Houndé Belt
▪ Majority of known anomalies and deposits
are located along the Boni Shear regional
break and the second order Yaramoko Shear
▪ Systematic auger drilling along key
structures with ~15,500m completed to date
▪ Integrated structural, geochemical,
geophysical, and lithogeochemical model
being developed; reprocessing of regional
geophysics underway
▪ Pathfinder element suites identified to
discriminate targets (Haho, Kaho and the
Boni Shear zone are characterized by High
Zr/High Rb)
▪ Auger program to continue over Kaho
granite with completion in early Q4,
extending grid to the south
▪ RC drilling to start at Kaho late November
testing 1.5km soil anomaly
16TSX: ROXG
55 Zone Drilling
▪ Diamond drilling resumed at 55 Zone
▪ Surface and underground drill rigs
▪ Focus on infill drilling and delineation of
resource margins
▪ 15,315m completed
▪ Significant intercepts include:
▪ DD-475W: 10.1m @ 19.5 g/t Au
from 576.6m
▪ DD-482: 5.4m @ 9.2 g/t Au
from 903.1m
▪ DD-477W: 16.5m @ 6.9 g/t Au
from 595.6m
5,200RL
5,000RL
4,800RL
4,600RL
4,400RL
4,200RL
4,000RL
YRM-18-DD-475W
19.5g/t over 10.1m
YRM-18-DD-477W
6.9g/t over 16.5m
YRM-18-DD-482
9.2g/t over 5.4m
YRM-18-DD-474W2
7.0 g/t over 3.6m
YRM-18-DD-473
6.6g/t over 5.6m
YRM-18-DD-459
7.6g/t over 0.6m
YRM-18-DD-467
3.5g/t over 3.4m
YRM-18-DD-472A & 480W
NSA
YRM-18-DD-479D
3.8g/t over 1.8m
YRM-18-DD-476A
1.2g/t over 5.6m
Block Model (Au Grade)
>10.0 g/t Au
<1.0 g/t Au
1.0 g/t – 3.0 g/t Au
3.0 g/t – 5.0 g/t Au
5.0 g/t – 10.0 g/t Au
YRM-18-DD-485A
34.1g/t over 2.1m
17TSX: ROXG
Bagassi South Drilling
▪ ~2,700m completed during Q3
▪ Drilled plunge extensions of western
pod, and near surface infill of eastern
shoot
▪ Significant intercepts for Q3 2018
include:
▪ BGS-418: 0.3m @ 98.8 g/t Au
from 85.8m
▪ BGS-406: 1.8m @ 15.5 g/t Au
from 88.6m
▪ BGS-435: 0.5m @ 16.1 g/t Au
from 293.5m
▪ BGS-412: 0.8m @ 6.0 g/t Au
from 266.8
▪ BGS-371: 2.3m @ 20.9 g/t Au
from 196.1m
▪ BGS-430A: 0.5m @ 30.4 g/t Au
from 250.9m
▪ BGS-389B: 2.8m @ 10.6 g/t Au
from 231.2m
5,300RL
5,200RL
5,100RL
5,000RL
4,900RL
West
Block Model (Au Grade)
>10.0 g/t Au
<1.0 g/t Au
1.0 g/t – 3.0 g/t Au
3.0 g/t – 5.0 g/t Au
5.0 g/t – 10.0 g/t Au
Drill Holes
YRM-18-DD-BGS-435
16.1g/t over 0.5m
YRM-18-DD-BGS-415
38.6g/t over 0.5m
YRM-18-DD-BGS-406
15.5g/t over 1.8m
YRM-18-DD-BGS-418
98.8g/t over 0.3
YRM-18-DD-BGS-422
6.4g/t over 1m
YRM-18-DD-BGS-410
7.3g/t over 0.6m
YRM-18-DD-BGS-412
6.0g/t over 0.8m
YRM-18-DD-BGS-371
20.9g/t over 2.3m
YRM-18-DD-BGS-430A
30.4g/t over 0.5m
YRM-18-DD-BGS-389B
10.6g/t over 2.8m
YRM-18-DD-BGS-428
55.8g/t over 0.9m
YRM-18-DD-BGS-437
10.2g/t over 2.3m
YRM-18-DD-BGS-393
66.6g/t over 0.4m
East
YRM-18-DD-BGS-431B
14.8g/t over 0.5m
TSX: ROXG 18
2018 Guidance
Exploration Budget$12 million (increased from $9 million)
Bagassi South Pre-Production Capital Expenditure$30 million
Gold production of 120,000 – 130,000 oz
Cash Operating Cost1 (per ounce produced)
$450-$475
AISC1 (per ounce sold)
$740-$790
1. This is a non-IFRS financial performance measure with no standard definition under IFRS. See
the “non-IFRS financial performance measure” section of the Company’s Q3 2018 MD&A
available on the Company’s website at www.roxgold.com or www.sedar.com
19TSX: ROXG
Kelley StammManager, Investor Relations & Communications
360 Bay Street, Suite 500
Toronto, ON
M5H 2V6
www.roxgold.com
416 203 6401
Q&A
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