bmo global metals & mining conference 2019bmo global metals & mining conference 2019 doris...

BMO Global Metals & Mining Conference 2019

Doris Mine and Plant

Caution Regarding Forward-Looking Information

Readers are cautioned that we will be making forward-looking

comments. To fully understand the risks inherent in our comments,

forecasts and estimates you are encouraged to read our

Management Discussion and Analysis for the year ended

December 31, 2018 together with our Financial Statements for the

same period.

Strategy to Deliver Value

❑ Establish operational excellence at Doris Mine❑ Plant Target: 2,000 tpd and 90% recovery, then push to exceed

❑ Mine Target: 1,500 tpd underground with grade discipline, then push to exceed

❑ Permits now in place for Hope Bay Belt development❑ Naartok East crown pillar will feed ore to Doris Plant in 2019

❑ Assessment of near-term Madrid underground development

❑ Revised prefeasibility study for Hope Bay by Q4 2019❑ Enhance value to stakeholders with robust risk assessment

❑ Generate discrete project returns and build infrastructure for belt-wide optionality

❑ Value-focused exploration strategy❑ Grow resources at Doris to extend life

❑ Focus Madrid drilling on highest likelihood priority production targets

❑ Establish scale at Boston to inform infrastructure decisions

❑ Prioritize 90+ regional exploration targets

1

Continuous Improvement

2017 2018 Q4 2018

Plant

Recovery (%) 65 79 82

Throughput (tpd) 580 1,270 1,800

Grade (g/t) 12.6 g/t 9.4 g/t 7.8 g/t

Mine

Production (tpd) 460 1,300 2,310

Grade (g/t) 10.7 g/t 8.1 g/t 7.4 g/t

Development (m) 5,020 6,470 1,620

Gold Production (oz) 55,150 110,970 34,080

Gold Poured (oz) 49,070 111,050 32,750

2

Gold Production and Costs

3(1) Computation of AISC is in accordance with the World Gold Council guidelines, as updated in November 2018

(1)

2019 Outlook

4

Production 160-180koz

Cash Costs(2)(3) US$625 - $700/oz

AISC(2) US$900 - $1,000 /oz

Sustaining Capital C$54 million

Expansion Capital C$20 million

Exploration & Evaluation C$25 million

Key Forecast Risks

• Completing ramp up of Plant to 2,000 tpd

and 90% recovery

• UG mine delivering in excess of 1,500 tpd

at reserve grade

• Achieving increased UG development

rate (~+50% v 2018) with additional crew

• Project execution at Naartok East

“Insurance”

• 120,800 tonne (20,900 ounce) total

stockpiles segregated by grade

• 283,000 tonne (43,900 ounce) Naartok

East crown pillar

• Specific incremental optimization projects

have been identified to help optimize recovery beyond 90% in the future

(2) Refer to non-IFRS measures section of the Management Discussion and Analysis for further information on these measures.(3) Computation of AISC is in accordance with the World Gold Council guidelines, as updated in November 2018.

1.31x

1.12x

0.97x

0.93x

0.88x

0.88x

0.84x

0.70x

0.70x

0.64x

0.60x

0.48x

0.32x

SSR Mining (SSRM)

Wesdome (WDO)

Atlantic Gold (AGB)

SEMAFO (SMF)

Alacer (ASR)

Golden Star (GSC)

Torex (TXG)

TMAC (TMR)

Pretium (PVG)

Argonaut (AR)

Roxgold (ROXG)

Asanko (AKG)

Guyana (GUY)

TMAC’s Value Proposition

Hope Bay Located in Tier One Jurisdiction

One of the World’s Highest Grade Gold Camps

Near-Term Growth from Mill Expansion and Optimization

Opportunities for NAVPS Growth Through Optimizing Development of Three Defined Mines

Unparalleled Exploration Upside to Drive Resource Growth

Production Expansion Opportunity as New Deposits Developed

Rationale For Premium Multiple Street Consensus P/NAV (Ratio)

5

Source: FactSet, street research

Note: Medians exclude TMAC. Market data as of 22-Feb-19.

* Calculated as attributable reserves of producing assets divided by attributable 2019E gold equivalent production.

Mine Life Index (Years)*

19.8 19.617.9 17.3

11.7 11.49.7

6.8 6.7 6.6 6.5 6.44.6

TMR

PV

G

AK

G

GU

Y

SSR

M

ASR

AR

WD

O

SM

F

GSC

TXG

AG

B

RO

XG

Denotes > 50% of Gold

Reserves in Canada/USA

Overall Median: 0.86x

Canada/USA

Median: 1.04x

Operations

6

One of the Safest Mines in Canada

7

ONTARIO MINING INDUSTRY PEER GROUP SAFETY STATISTICS

Group 2017 2018

Gold and Nickel Mines 4.28 3.69

Miscellaneous Metals 3.05 3.62

Miscellaneous Industrials 2.21 2.78

Diamond Drill Contractors 2.23 2.76

Mining Contractors 3.05 3.80

Other Contractors 5.68 4.36

Total Mining and Contractors 3.48 3.53

TMAC Resources 1.53 1.06

Total Injuries Frequency*

*Total Injury Frequency is a combination of the number of Lost

Time Injuries and Non-Lost Time Injuries divided by 200,000

hours worked.

Improving Plant Performance

8

Expansion of Gravity Effort

Grind/Flotation Feed Surge bins (2)

Remove cleaner Jigs

Move Spinners to Crushing Circuit

Falcon SB1350 (2)

KnelsonXD20 (2)

Replace Regrind Cyclones (2)

Falcon C2000 (2)

9

Ramp Up Doris Mine

10

Doris North Doris ConnectorDoris Central

Extension

East Limb

BTD Connector BTD Central

N

Hinge

Crown Pillar

Doris North BTD

Planned Development

Existing Development

Mining Area Timing

Doris North

Hinge

Q4 2018

to Q2 2019

Doris North

Crown PillarQ4 2018

Doris North

BTD

Q4 2018

onward

Doris

Connector

Q4 2018

to Q4 2020

Doris

Central

Q4 2019

To Q4 2021

Doris BTD

Connector

2019

exploration

Doris BTD

Central

2020

exploration

• Doris Crown Pillar completed during Q4-18

• Doris Hinge completed by end of Q2-19

• BTD and Doris Connector production throughout year

• Doris Central reached by mid-year and development ore late 2019

Naartok East Crown Pillar

11

• Naartok East crown pillar

provides additional

flexibility to feed a hungry

plant in 2019 and

manage operational volatility

• 283,000 tonnes at 4.8 g/t

reserve

Permitting Complete

❑ Underground mines at Doris, Madrid North, Madrid South and Boston

❑ Surface crown pillar recovery at Madrid North provides option for near-

term ore feed to Doris plant

❑ 55km all-weather road from Madrid to Boston

❑ Security: No “Overbonding” and spread over 15 life-of-mine installments

❑ Permitted infrastructure is well beyond our 2015 PFS to provide flexibility

to enhance project economics; alternatives, not commitments:

❑ 6,000 tpd processing across Hope Bay Belt

❑ Tailings impoundment capacity (18MT at Doris, 5.1MT at Boston)

❑ Boston permitted as self sufficient mine and processing operation

❑ Port expansion

❑ Wind power generation

❑ Excellent support from Inuit communities

❑ Permitting achieved substantially ahead of our original schedule 12

Finance

13

Key Financial Metrics

14

(4) Refer to non-IFRS measures section of the Management Discussion and Analysis for further information on these measures.(5) Computation of AISC is in accordance with the World Gold Council guidelines, as updated in November 2018.

Q3 2018 Q4 2018

Gold Produced (ounces) 33,100 34,080

Gold Sold (ounces) 32,140 31,380

Revenue (C$ millions) 50.3 51.4

Realized Gold Price (US$/oz) 1,201 1,233

Cash Costs (US$/oz)(4) 825 752

AISC (US$/oz)(4,5) 1,217 1,112

Cash Flow from Operating Activities before Working Cap

Changes (C$ millions)7.3 11.9

Cash Flow from Operating Activities (C$ millions) 6.1 (10.0)

Adjusted EBITDA (C$ millions)(4) 11.2 15.7

Capital Expenditures (C$ millions) 27.9 19.2

Ending Unrestricted Cash Balance (C$ millions) 13.6 24.8

Debt (C$ millions) 202.2 166.7

Balance Sheet

❑ Sprott debt paid down from US$160M to US$117M as of January 2019

❑ October 2018 payments and voluntary prepayments of US$34.2 million

❑ January 2019 payment of US$8.8 million

❑ Principal repayments of US$6.5 million will be paid quarterly until July 31, 2020

❑ Principal repayments of US$5.5 million will commence Oct 31, 2020 and be paid

quarterly thereafter, provided TMAC elects to extend the term

❑ The final payment will be equal to the remaining unpaid balance on July 31, 2022

❑ Diesel consignment agreement first entered into for 2018 to reduce

working capital investment is expected to be renewed

❑ Expecting renewal with Macquarie for 2019 sealift

❑ Demand Bond structure established in 2018 to release restricted cash

will be utilized for additional bonding at Madrid

❑ First bonding for Madrid, with new insurance company, at improved collateral versus

2018 bonding

❑ Seeking reduced collateral on established 2018 Demand Bonds 15

Exploration

16

Doris North High-Grade Gold

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

Ye

llow

kn

ife

He

mlo

Re

d L

ake

Kirkla

nd

-

Lard

er

Lake

No

ran

da

Ca

dill

ac

-Va

l-

D'O

r

Tim

min

s-

Ma

the

son

Ho

pe

Ba

y

Str

ike

Le

ng

th (

km

)

Cu

mu

lativ

e R

eso

urc

e (M

oz)

1

Cumulative Resources (M oz Au)

Strike Length (km)

1 “Cumulative Resource” refers to the estimated sum of historical production and current resource

estimates. Source: Metals Economics Group, Intierra, and Company reports.

Hope Bay and Archean Greenstone Belts

Madrid

20 km

Doris

Boston

80 km

Measured and Indicated Resources of 18.0 Mt at

8.3 g/t gold containing 4.8 million ounces

17

2019 Exploration Strategy

18

Doris

$6M

❑ Extend BTD with 2019 access to another 100 m strike length

❑ Infill and expand Connector and BTD Connector

❑ Advance Naartok East, Naartok West and Suluk towards development

❑ Current Suluk winter program with objective to grow resource and

support metallurgical testing

❑ Summer 2019 program to (1) test high-grade plunge near surface and

(2) explore south from Boston along 6 km alteration

❑ Winter 2019/20 program from ice to test high-grade plunge ~1,000 m

❑ 2020 decision to remove ice plug and begin exploring from >2,500 m of

underground development

❑ Lateral extension at Doris

❑ Madrid regional to south along route of permitted road to Boston

❑ Boston regional

Madrid

$3M

Boston

$6M

Regional

$5M

21

TM5015611.3 g/t Au/16.2 mIncluding 26.2 g/t Au/5.6 m

TM50168126.5 g/t Au/0.7 mAnd 38.2 g/t Au/9.7 m

TM5017216.4 g/t Au/6.5 m

• BTD Extension remains open to

the north

• BTD ramp development will

provide drill platforms for drilling

on additional ~100 m strike to

the north in 2019

Doris: Extend BTD Resources


-500 m

19

0 m

TM5023552.8 g/t Au/1.9 m

BTD North Mineral Resources (6)

Indicated

0.19 mt @ 20.4 g/t Au, 125 koz Au

Inferred

0.06 mt @ 14.0 g/t Au, 26 koz Au

(6) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes

Doris: Expand Connector and BTD Connector

20

Potential UG

development

Open

BTD Connector Mineral Resources(7)

Indicated

0.14 mt @ 8.4 g/t Au, 38 koz Au

Inferred

1.06 mt @ 7.5 g/t Au, 254 koz Au

Connector-Central Mineral Resources (7)

Indicated

1.41 mt @ 9.1 g/t Au, 411 koz Au

Inferred

0.39 mt @ 6.2 g/t Au, 77 koz Au


23



Naartok West Naartok East

High Grade

Plunge

W E

• 44 drill holes completed in

2018 drill program

• Focused above 150-metre level,

within and below the Naartok

West crown pillar recovery area

• Confirmed the plunge and

continuity within wide,

high-grade core

Madrid: Naartok West Advancing to Development

0 m

-500 m

21

Naartok Mineral Resources (West & East)(8)

Indicated

7.96 mt @ 7.4 g/t Au, 1.9 Moz Au

Inferred

0.45 mt @ 6.1 g/t Au, 0.09 Moz Au



24

N S

TM0042210.4 g/t Au/9.6 m


• 31 drill holes completed in

2018 drill program

• Materially added gold ounces

within the crown pillar, not

previously identified with the

wide-spaced historical drilling

• Potential opportunity to add gold

ounces within the crown pillar in

2019 with additional drilling

Madrid: Naartok East Advancing to Development

Structural TrendTM00443

4.9 g/t Au/27.6 mIncluding 12.9 g/t Au/5.5 m

0 m

-500 m

TM0044111.0 g/t Au/12.5 m

22

Naartok Mineral Resources (West & East)(9)

Indicated

7.96 mt @ 7.4 g/t Au, 1.9 Moz Au

Inferred

0.45 mt @ 6.1 g/t Au, 0.09 Moz Au


Naartok

East

Naartok

West

RandSuluk

Crown Pillar Beneath Patch Lake

Indicated

Inferred

Inferred

Madrid: Suluk Zone Advancing to Development

250 m

N

0 m

-500 m

• 2019 winter drill program from ice

to increase and upgrade mineral

resources as well as supporting

metallurgical test-work

23

Suluk Mineral Resources (10)

Indicated

3.20 mt @ 7.7 g/t Au, 0.8 Moz Au

Inferred

2.58 mt @ 6.3 g/t Au, 0.5 Moz Au


11SBD411A

12.46m @ 10.16 g/t Au

12.38m @ 10.62 g/t Au

2.7m @ 16.1 g/t Au

(-820m level)

94NOD118

9.1m @ 16 g/t

93NOD047

2.5m @ 238 g/t Au

S00243

5.7m @ 35.1 g/t Au

B3/Newton

Intersection

N S

B2 Zone

250 m

-50m

-100m

-200m

-300m

-400m

-500m

11SBD414

7.1m @ 28.5 g/t Au

4.8m @ 17.3 g/t Au

7.8m @46.6 g/t Au

(-600m level)

S04-322

3.7m @ 36.3 g/t Au

Boston: Increase Resource Scale

24

Significant Growth Potential of Established Deposit High Priority Regional Targets

1 Km

Boston Deposit

Alteration Trend

N

25.6 g/t Au/1.2m

37.5 g/t Au/1.0m

> 10 g/t Au

Surface Sample

SO-293

8.7m @56.6 g/t Au

(-1020m level)

Boston Mineral Resources(11)

Indicated

3.5 Mt @ 8.9 g/t Au, 1.02 Mozs Au

Inferred

1.9 Mt @ 7.2 g/t Au, 0.45 Mozs Au (11) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes

Doris

Madrid

Au > 10 g/t High-Resolution

Gravity Image1st order

Structure

2nd order

Structure

Gold

Deposit

Pogey

Kamik

North Doris

Quaqtuq

Dinger

Gunn

Madrid Regional: Establish

New Economic Deposits

25

• More than 25 years of modern exploration

• Four owners

• More than 1 million metres of historic drilling with at least 95%

occurring on established deposits

• Enormous amount of high-quality data available

• More than 90 exploration targets identified

Exploration Datasets

Airborne geophysics Geological mapping

Magnetic Outrcrop sampling

Electro-magnetic Gold in glacial till sampling

High-resolution gravity gradiometry Diamond drilling

Ground geophysics RC drilling

Magnetic

Induced polarization

Seismic

• Complete gravity enhancement in Plant and deliver 90% recovery

• Continue to build on successes of increasing Plant throughput

• Feed the Plant

• Take advantage of three production areas and one development

area to continue ramp up of Doris mine production

• Deliver plan for development of Madrid, including 2019 ore

• Execute 2019 exploration plan to support near-term production and

ongoing belt-wide development

• Advance analysis of optimized Hope Bay Belt development, including

completion of new PFS in late 2019

Near-Term Priorities

26

Appendices

27

Equity Ownership – February 2019

28

Basic S/O

# millions %

>10% Shareholders

Resource Capital Funds 34.7 30.7%

Newmont 32.2 28.6%

BlackRock* 14.5 12.9%

81.4 72.2%

*Based on the data from Bloomberg and FactSet

Directors & Officers

Terry MacGibbon 3.2 2.8%

Jason Neal 0.3 0.3%

All Other Directors 0.5 0.4%

All Other Officers 0.6 0.5%

4.5 4.0%

Identified Shareholders and D&O 86.6 76.8%

Other Shareholders 26.2 23.2%

Total Shares Outstanding 112.8 100.0%

Continuous Improvement

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18

Plant

Recovery (%) 62 69 71 82 80 82

Throughput (tpd) 210 670 650 760 930 970 1,390 1,800

Grade (g/t) 11.7 13.7 10.9 10.0 10.1 7.8

Mine

Production (tpd) 380 390 460 620 990 790 1,130 2,310

Grade (g/t) 11.7 11.2 11.7 9.1 8.1 9.6 8.4 7.4

Development (m) 1,630 1,550 850 990 1,370 1,670 1,810 1,620

Gold Production (oz) 8,220 11,530 14,200 21,200 20,650 23,140 33,100 34,080

Gold Poured (oz) 4,890 11,150 13,710 19,320 18,870 25,970 33,460 32,750

29

Principal Amount US$117 million outstanding at February 2019

Interest Rate 6.5% per annum plus US$ 3-mth LIBOR

PaymentsUS$6.5M Quarterly up to July 31, 2020

US$5.5M Quarterly from October 31, 2020* Quarterly payments made last day of months of January, April, July, and October

Maturity Date July 31, 2022

Anniversary fee 2% on July 31, 2020 if loan extended

Voluntary prepayment 2% on any voluntary prepayment paid up to and including July 31, 2020

Covenants

Working capital > $20 M

Minimum cash > $10 M

Repayment test – model cashflows sufficient to repay

Reserve tail from July 31, 2020

Debt Facility Summary

30

Hope Bay Proven & Probable Mineral Reserves

(as of Dec. 31, 2018)

Category/Deposit Tonnes (t 000) Grade (g/t Au) Contained Au (oz 000)

Proven

Stockpiles 121 5.4 21

Doris 197 13.9 88

Madrid North - - -

Madrid South - - -

Boston 1,072 8.2 282

Total Proven 1,390 8.7 391

Probable

Doris 1,840 6.6 391

Madrid North 10,819 6.2 2,168

Madrid South 690 10.9 242

Boston 1,756 7.0 369

Total Probable 15,105 6.6 3,197

Total P & P

Stockpiles 121 5.4 21

Doris 2,037 7.3 479

Madrid North 10,819 6.2 2,168


Boston 2,828 7.5 678

Total P & P 16,495 6.8 3,58831

Hope Bay Measured, Indicated &

Inferred Resources (as of Dec. 31, 2018)

Category/Deposit Tonnes (t 000) Grade (g/t Au) Contained Au (oz 000)

Measured

Doris 141 28.9 131

Madrid North

Madrid South

Boston 1,109 10.3 368

Total Measured 1,250 12.4 499

Indicated

Doris 1,754 9.6 540

Madrid North 11,983 7.4 2,835


Boston 2,436 8.3 648

Total Indicated 16,777 8.0 4,310

Measured and Inferred

Doris 1,894 11.0 671

Madrid North 11,983 7.4 2,835


Boston 3,545 8.9 1,017

Total Measured and Inferred 18,027 8.3 4,809

Inferred

Doris 1,566 7.4 371

Madrid North 3,359 6.2 671


Boston 1,934 7.2 448

Total Inferred 7,349 6.9 1,62132

Information Regarding Scientific and

Technical Information

33

Notes1. CIM definitions were followed for the statement of Mineral Resources and Mineral Reserves.2. Mineral Resources are estimated at a cut-off grade of 4.0 g/t Au except for Boston which was estimated at

a cut-off of 4.5 g/t Au.3. Mineral Resources are estimated using a long-term gold price of US$1,400 per ounce, and a US$/C$

exchange rate of 0.80.4. A minimum mining width of approximately 1.5 metres was used for Mineral Resources.5. A 50-metre crown pillar allowance was applied to resources located below lakes.6. Doris North has been depleted based on surveyed mining cavities up to the end of December 2018.7. Mineral Resources are inclusive of those resources converted to Mineral Reserves.8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 9. Mineral Reserves for individual deposits were estimated using a cut-off grades between 4.0 g/t and 4.6 g/t

to account for assumed variable process recoveries, operating costs and ore haulage costs.10. All Mineral Reserves are estimated using an average long-term gold price of US$1,250 per ounce and a

US$/C$ exchange rate of 0.80.11. A 50-metre crown pillar allowance was applied to Mineral Reserves located below lakes where applicable.

12. A minimum mining width of 2.5 metres for long hole mining and 3.4 metres for drift and fill mining was applied for Mineral Reserves.

13. Density was calculated using the geological block model density field.14. A 95% extraction factor and 20% external dilution factor was applied to long hole mining. A 95% extraction

factor and 15% external dilution factor was applied to drift and fill mining. 15. Numbers may not add due to rounding.

Scientific and Technical Information in this presentation has been reviewed and approved by Gil Lawson, P.Eng, Chief Operating Officer and Dave King, P. Geo, VP Exploration and Geoscience, both employees of TMAC Resources.

Information Regarding Scientific and

Technical Information

• Several slides reported drill intervals representing downhole thickness; true width varies depending on the dip of the drill hole. True widths are estimated to be approximately 50% to 85% of downhole widths. Composite intervals are based on geological observations. Gold values used to calculate composite intervals are uncut.

• Reported historical drill hole intersections have been obtained from TMAC Resources’ Hope Bay Drill hole Database which has been independently validated by Roscoe Postle Associates Inc and reported in Section 12 - Data Verification of the “Technical Report on the Hope Bay Project Nunavut, Canada” dated May 28, 2015.

• Please refer to the news releases published June 14, 2018 and November 8, 2018 available on TMAC’s website at www.tmacresources.com for more details on the results of this work.

34

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