nzuri* nyanzaga orecorp limited · production metrics 2015a 2016e 2017e 2018e other current assets...

OreCorp Limited

Precious Metals - Developer/Explorer

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and allthe companies and securities that are the subject of this report discussed herein.

Australian Equity Research4 September 2016

SPECULATIVE BUYPRICE TARGET A$1.00Price (2-Sep)Ticker

A$0.50ORR-ASX

52-Week Range (A$): 0.05 - 0.74Avg Daily Vol (M) : 7.2Market Cap (A$M): 81.5Shares Out. (M) : 173.4Enterprise Value (A$M): 64.2NAV /Shr (5%) (A$): 1.00Net Cash (A$M): 17.3P/NAV (x) : 0.47Major Shareholders: Australian Super

JP Morgan

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ORR

Source:�FactSet

Reg Spencer | Analyst | Canaccord Genuity (Australia) Ltd. | [email protected] | +61.2.9263.2701Tim McCormack | Analyst | Canaccord Genuity (Australia) Ltd. | [email protected] | +61.8.6216.2088Larry Hill | Associate Analyst | Canaccord Genuity (Australia) Ltd. | [email protected] | +61.2.9263.2745

Initiation of Coverage

Nzuri* Nyanzaga* - "very good" in SwahiliOreCorp Ltd (ORR:ASX) is a gold/base metals development and exploration companywith several projects located in Africa. The company's key asset is the right to earn up to51% of the 3.3Moz Nyanzaga Gold project, located in NW Tanzania, from project partnerAcacia Mining (ACA:LON | rated SELL by Nick Hatch). Recent studies have highlightedthe project's quality attributes (high grade, simple metallurgy, potential scale/mine life,and low costs), while a high quality management team with deep African operatingexperience and a track record of major success adds significantly to the stock's appeal.With 100% upside potential to our target price, we initiate coverage with a SPECULATIVEBUY rating.HighlightsScoping Study confirms Nyanzaga is a high quality gold project. ORR releasedthe outcomes of a Scoping Study on Nyanzaga in Aug'16, which demonstrated theviability of a US$248m, +10 year, 4 Mtpa open pit and underground project producing+180kozpa (up to 220kozpa in the first five years) at AISC of US$870/oz. Otherattractive attributes of the project include its location in a mining friendly jurisdiction,proximity to infrastructure, and potential for upside through in-mine resource extensions,improved gold recoveries and regional exploration opportunities.Base case valuation supported through Earn-in & JV with Acacia Mining. ORR firstacquired an interest in Nyanzaga in Sep'15 through a JV and earn-in with ACA to earnup to a 51% interest in the project. Under the agreement ORR may spend up to US$14m to complete a DFS (before end'18) to earn a 25% interest, which can go to 51%via a combination of staged cash payments of US$5m and a capped US$10m royalty.However, ACA retains the option to maintain a 75% interest, in which case it will haveto make an NPV multiple-based payment of between 3-6x ORR’s earn-in spend. If ACAexercises its claw-back, we see limited downside (based on our current forecasts) forORR through the retention of a potentially fully funded (pro-rata capital contributionscovered by ACA's claw-back option fee) 25% interest in an advanced, quality gold project.High calibre management with enviable track record. ORR is headed up by amanagement team with extensive African operating experience, and a demonstrabletrack record of creating value for shareholders. Among them include Chairman CraigWilliams, who was a founder and CEO of Equinox Minerals (acquired for $7bn in 2011),and CEO Matt Yates, who was the former Managing Director of Mantra Resources(acquired for $1bn in 2010).ValuationOur A$1.00/share target price is based on a sum of the parts (Net Asset Valuation)approach, comprising a probability weighted NPV10% valuation for ORR’s interest in theNyanzaga gold project, a nominal value ascribed to the company’s Akjoujt South Cu-Niexploration project, net of corporate and other adjustments.

For important information, please see the Important Disclosures beginning on page 28 of this document.

2

Source: Company data, Canaccord Genuity estimates

FINANCIAL SUMMARY OreCorp Ltd ORR:ASX

Analyst: Reg Spencer Rating:

Date: 2/09/2016 Target Price: $1.00

Year End: June

Market Information Company Description

Share Price A$ 0.480

Market Capitalisation A$m 83.2

12 Month Hi A$ 0.74

12 Month Lo A$ 0.05

Issued Capital m 173.41

Options m 8.54 Profit & Loss (A$m) 2015a 2016e 2017e 2018e

Fully Diluted m 181.95 Revenue 0.0 0.0 0.0 0.0

Operating Costs 0.0 0.0 0.0 0.0

Royalties 0.0 0.0 0.0 0.0

Valuation A$m A$/share Corporate & O'heads 1.0 1.0 1.1 1.2

Nyanzaga NPV @ 10% 182.3 0.81 Exploration (Expensed) 0.7 2.6 2.4 1.1

Exploration & Resources 10.0 0.04 EBITDA -1.6 -3.6 -3.3 -1.9

Corporate (8.7) (0.04) Dep'n 0.0 0.0 0.0 0.0

Cash, bullion & investments 17.3 0.08 EBIT -1.6 -3.6 -3.3 -1.9

Debt - - Net Interest 0.1 0.1 0.2 0.3

Unpaid capital 20.0 0.09 Tax 0.0 0.0 0.0 0.0

ITM options 3.9 0.02 NPAT -1.6 -3.6 -3.3 -1.9

TOTAL Net Asset Valuation 220.9 0.99 Abnormals 0.9 0.3 0.0 0.0

Price/NAV 0.48 NPAT (reported) -0.7 -3.3 -3.3 -1.9

NAV at Spot US$1,326/oz, AUDUSD $0.76 0.94

Target Price 1.00 Cash Flow (A$m) 2015a 2016e 2017e 2018e

Cash Receipts 0.0 0.0 0.0 0.0

Assumptions 2015a 2016e 2017e 2018e Cash paid to suppliers & employees -1.7 -1.6 -1.1 -1.2

Gold Price (US$/oz) 1,224 1,180 1,375 1,391 Tax Paid 0.0 0.0 0.0 0.0

AUD:USD 0.83 0.73 0.74 0.73 Net Interest 0.1 0.1 0.2 0.3

Gold Price (A$/oz) 1,471 1,615 1,846 1,896 Operating Cash Flow -1.6 -1.6 -0.9 -0.8

Exploration and Evaluation 0.0 -1.7 -15.5 -7.0

NAV Sensitivity Capex 0.0 0.0 0.0 0.0

Other 0.4 -1.9 0.0 0.0

Investing Cash Flow 0.4 -3.7 -15.5 -7.0

Debt Drawdown (repayment) 0.0 0.0 0.0 0.0

Share capital 0.0 16.2 20.0 0.0

Dividends 0.0 0.0 0.0 0.0

Financing Expenses 0.0 -0.8 -1.0 0.0

Financing Cash Flow 0.0 15.4 19.0 0.0

Opening Cash 7.3 7.0 17.3 19.9

Increase / (Decrease) in cash -1.2 10.1 2.6 -7.8

FX Impact 0.9 0.1 0.0 0.0

Closing Cash 7.0 17.3 19.9 12.1

Balance Sheet (A$m) 2015a 2016e 2017e 2018e

Cash + S/Term Deposits 7.0 17.3 19.9 12.1

Production Metrics 2015a 2016e 2017e 2018e Other current assets 0.2 0.0 0.1 0.1

Nyanzaga Current Assets 7.2 17.3 19.9 12.2

Gold Production (koz) 0 0 0 0 Property, Plant & Equip. 0.1 0.1 0.1 0.1

AISC 0 0 0 0 Exploration & Develop. 0.0 0.0 13.2 19.1

Other Non-current Assets 0.0 0.0 0.0 0.0

Payables 0.1 0.0 0.0 0.1

Group Reserves & Resources Mt Grade Moz Short Term debt 0.0 0.0 0.0 0.0

Reserves (100%) Long Term Debt 0.0 0.0 0.0 0.0

Nyanzaga 0.00 0.00 0.00 Other Liabilities 0.0 -2.4 -3.4 -3.3

Reserves TOTAL 0.00 0.00 0.00 Net Assets 7.1 19.8 36.5 34.6

Shareholders Funds 20.6 36.8 56.8 56.8

Resources (100%) Reserves 0.6 0.3 0.3 0.3

Nyanzaga 29.80 3.49 3.34 Retained Earnings -14.0 -17.1 -20.0 -21.7

Resources TOTAL 29.80 3.49 3.34 Total Equity 7.1 19.8 36.5 34.6

Ratios & Multiples 2015a 2016e 2017e 2018e

Directors EBITDA Margin nm nm nm nm

Name Position EV/EBITDA nm nm nm nm

C Williams Chairman Op. Cashflow/Share -$0.01 -$0.01 $0.00 $0.00

M Yates CEO & Managing Director P/CF -34.9x -52.4x -115.2x -129.5x

A Morrison NED P/FCF -69.3x -15.9x -5.1x -10.7x

M Klessens NED EPS -$0.01 -$0.02 -$0.02 -$0.01

R Rigo NED EPS Growth nm nm nm nm

PER -83.6x -20.7x -30.0x -61.5x

Dividend Per Share $0.00 $0.00 $0.00 $0.00

Substantial Shareholders Shares (m) % Dividend Yield 0% 0% 0% 0%

AustralianSuper 13.74 7.9% ROE -9% -17% -9% -5%

JP Morgan 13.03 7.5% ROIC -8% -10% -6% -3%

Westoz Funds Management 11.40 6.6% Debt/Equity 0% 0% 0% 0%

Eley Griffiths Group 9.23 5.3% Net Interest Cover nm nm nm nm

Book Value/share $0.06 $0.11 $0.17 $0.16

Price/Book Value 7.6x 4.2x 2.9x 3.0x

OreCorp (ORR:ASX) is an Australian based mineral exploration and development company. Its primary assets

are an earn-in right (up to 51%) of Acacia Mining's Nyanzaga gold project in Tanzania, and the Akjoujt Cu-Ni

exploration project in Mauritania.

SPEC BUY

$0.60

$0.80

$1.00

$1.20

$1.40

-30% -20% -10% 0% 10% 20% 30%

Gold Price US$ Exchange Rate

OreCorp LimitedInitiation of Coverage

Speculative Buy Target Price A$1.00 | 4 September 2016 Precious Metals - Developer/Explorer 2

3

Valuation

We value ORR using a sum of the parts (net asset valuation) approach, comprising

our probability weighted valuation for ORR’s interest in the Nyanzaga gold project

(see below), a nominal value ascribed to the company’s Akjoujt South Cu-Ni

exploration project, net of corporate and other adjustments.

Nyanzaga Project Earn-in and Joint Venture

Key terms of the agreement with ACA include:

Up-front cash payment of US$1m to earn an initial 5% interest (completed)

ORR to sole fund the JV regional exploration and pre-development costs to the

completion of a DFS to a maximum of US$14m. At completion of the DFS,

ORR will have earned a 25% interest in the project.

At the completion of the DFS, if the NPV is >US$200m, ACA has the right to

maintain its 75% interest and resume operatorship of the project through a

cash payment to ORR based on a schedule of multiples of the initial US$15m

earn-in spend. The various multiples are based on the NPV of the project as

per the DFS, and are shown in Figure 1 below.

If the NPV of the project is <US$200m, or, if ACA elects not to retain a 75%

participating interest, then ORR has a right to increase its interest in the

project to 51% by making staged payments to ACA totalling US$15m (US$3m

on election, US$2m on commencement of construction, and a 2% NSR

capped at US$10m).

Figure 1: Expenditure multiple to be paid by ACA on election to retain 75% interest

Source: Company Reports

Production scenario

We have modelled total gold production from Nyanzaga of 2.2Moz (vs Measured

& Indicated Resources of 2.77Moz) over a 12-year period, averaging 183koz pa

(+220kozpa over the first 5 years), with AISC averaging US$860/oz over the LOM.

Based on our modelled gold production and AISC (Figure 2), and assuming other

project parameters as outlined in ORR’s Scoping Study for the Nyanzaga Project,

we derive a project valuation (current period, forward curve NPV10%, commodity

price FX assumptions in Figure 3) of US$240m, or A$317m for a 100% interest in

the project.



4

Figure 2: CGe Nyanzaga gold production and AISC (2017e-2030e)

Source: Canaccord Genuity estimates

Figure 3: Gold price and US$/AUD$ assumptions


ORR Attributable Valuation

As ORR’s ultimate interest in the project is predicated on the outcomes of the DFS

(NPV as determined by the DFS) and the intentions of ACA, we have based our

valuation for ORR’s interest in the project on a probability-weighted series of

different outcomes as presented in the matrix below.

Figure 4: Nyanzaga project valuation matrix – CGe @ gold forward curve


At this stage, we ascribe the highest probability to Scenario 1, whereby ACA

exercises its claw-back right (and the NPV is between US$200-500m). However,

while this scenario offers the lowest net value to ORR (“worst case” for ORR), our

estimate of A$143m or A$0.76/share (undiluted) still offers considerable upside

to the current share price. We also note that under this scenario, ORR would have

25% of a quality development project (and a large, well-funded project partner),

plus +A$60m in cash (ACA claw-back option fee) which could be used to fund its

share of development costs (assuming a positive FID).

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2015A 2016E 2017E 2018E 2019E 2020E Long term

Gold (US$/oz) $1,160 $1,295 $1,384 $1,397 $1,409 $1,420 $1,461

Silver (US$/oz) $15.72 $18.10 $20.50 $20.71 $20.91 $21.21 $21.29

US/AUS Exchange $0.75 $0.74 $0.74 $0.73 $0.73 $0.72 $0.72

Nyanzaga Valuation Matrix DFS

2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019

Sep Dec Mar June Sep Dec Mar June Sep Dec Mar June

Project NPV10% US$m 239.14 245.05 251.10 257.30 263.66 270.17 276.84 331.96 388.20 445.59 504.17 567.22

Cumul earn-in spend US$m 4.448 7.417 10.370 13.308 16.233

Uplift multiple x 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.5 3.5 4.0 4.0 4.5

Acacia claw back for 75% US$m 45 45 45 45 45 45 45 52.5 52.5 60 60 67.5

Acacia claw back cost A$m 60.178 60.355 60.526 60.690 60.841 61.003 61.805 72.105 72.105 82.406 82.406 92.707

NPV uplift ORR Spend ACA claw ORR Attrib ORR Attrib per sh Upside vs CG assumed A$m per sh

x US$m back (US$m) NPV (US$m) NPV (A$m) undiluted share price probability undiluted

Scenario 1: ACA retains 75%; NPV >$200m but <$500m 3.0 14.0 42.0 65.9 143.3 $0.83 76% 40.0% 57.30 $0.33

Scenario 2: ACA retains 75%; NPV >$500m 4.5 14.0 63.0 125.0 249.6 $1.44 206% 20.0% 49.91 $0.29

Scenario 3: ACA dilutes, ORR 51%; NPV $200m 0 14.0 0.0 87.0 115.5 $0.67 42% 10.0% 11.55 $0.07




$183.88 $1.06



5

The highest value outcomes as per our matrix have been ascribed the lowest

probability – the higher the NPV, the less likely ACA is to not exercise its claw-back

right, in our view.

While we consider that the company’s existing cash reserves of A$17m are

sufficient to progress Nyanzaga to completion of the DFS, we note that the

potential for additional exploration costs at the Akjoujt project, possible regional

exploration at Nyanzaga and corporate and overhead costs may call for additional

funding requirements. On this basis, we assume the company raises additional

equity (A$20m at $0.45/sh) in JunQ’17.

Our per share valuation/target price is based on a fully diluted share count of

217m shares (including ITM options and the impact of the above assumed capital

raising). Figure 5 details our NAV estimate for ORR, comprising our probability-

weighted asset valuation, a nominal value for exploration, net of corporate and

other adjustments. With +100% potential upside to our target, we initiate

coverage with a SPECULATIVE BUY recommendation and A$1.00 target price.

Figure 5: CG NAV estimate


A$m A$/share

Nyanzaga NPV @ 10% 182.2 0.80

Exploration & Resources 10.0 0.04

Corporate (8.7) (0.04)

Cash, bullion & investments 17.3 0.08

Debt - -

Unpaid capital 20.0 0.09

ITM options 3.9 0.02

TOTAL Net Asset Valuation 224.7 0.99

Price/NAV 0.48

Target Price 1.00



6

Peer Comparison

We have assessed ORR’s Nyanzaga project on a number of metrics against

Australian-listed gold development peers, and other African Gold projects. This

analysis highlights the substantial production scale (+180 kozpa) attractive grade

(Figure 9) and gold endowment (Figure 10) of the Nyanzaga project. More

significantly we note the attractive valuation multiple that ORR is currently trading

on when compared to other advanced ASX-listed gold developers (Figure 8).

Figure 6: Production & AISC - ASX listed developers Figure 7: Production & AISC - African development projects

Source: Company Reports, Canaccord Genuity estimates Source: Company Reports, Canaccord Genuity estimates

Figure 8: EV/Resource oz (Attributable) – ASX listed companies Figure 9: Grade vs resource size - African development projects


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7

Figure 10: Deposit vertical endowment and UG mining level (RL) Figure 11: Capital intensity - African development projects


Figure 12: Development Status – Major African gold projects

Source: Company Reports, Canaccord Genuity estimates

We note the early stage of development at Nyanzaga with capital cost estimates

at scoping level (+/- 35%) accuracy. In our view the moderate capital intensity on

a US$/ozpa basis owes much to the comparatively low supporting infrastructure

and services (utilities, water) that exist in the region which should also enable

Nyanzaga to be developed within an accelerated timeline contingent on the

outcomes of subsequent feasibility studies.

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Capital In

tensity (

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Asanko

Nord Gold

Perseus Mining

B2 Gold

Orezone

Endeavour Gold

West African Resources

African Gold Group

Toro Gold

Avnel

Hummingbird

Semafo

Gryphon

Perseus Mining

B2 Gold

Perseus Mining

Hummingbird Resources

Ore Corp

Esaase*Bouly

Sissingue*Fekola*

Bombore*Hounde*Tanlouka

KobadaMako

KalanaYanfolilaNatougou

BanforaYaoure*

KiakaBaohamen

DugbeNyanzaga

Scoping PFS DFS BFS Construction Commissioning



8

Corporate & Finance

Balance sheet

ORR has a reported cash position of A$17m as at 30 Jun’16. We consider current

cash to be sufficient for the completion of the DFS for Nyanzaga, but note that if

exploration activities are accelerated at the Akjoujt project or regional prospects

at Nyanzaga, then further capital may be required. The most recent capital raising

was undertaken in May/June 2016, when ORR raised A$16m at A$0.27/share.

Capital Structure

ORR’s capital structure is shown in Figure 13 below. The outstanding options have

an average exercise price of A$0.45, resulting in a fully diluted issued capital of

182m shares.

Figure 13: ORR capital structure


Substantial Shareholders

Substantial shareholders include Australian Super (8%), and JPMorgan Natural

Resources (8%), WestOz Funds (6%) and Eley Griffiths (5%).

Directors & Management

Craig Williams – Chairman

Mr Williams is a geologist with over 35 years’ experience in mineral exploration and

mine development. He was the President and CEO of Equinox Minerals Limited, a dual

listed TSX - ASX company which he co-founded in 1993. He was instrumental in the

financing and development of the major Lumwana Copper mine in Zambia which

resulted in Equinox being one of the world’s top 20 copper producers. Following the

ramp-up of Lumwana, Equinox embarked on an acquisition program that resulted in

the takeover of the Citadel Resource Group for $1.2 billion, targeting development of

the Jabal Sayid Mine in Saudi Arabia. Equinox was taken over in mid-2011 by Barrick

Gold Corporation for $7 billion.

Mr Williams joined the Board of OreCorp as Chairman in December 2011.

Matthew Yates - CEO & Managing Director

Mr Yates is a geologist with over 20 years of industry experience, covering most facets

of exploration from generative work to project development. Most recently, he was the

Joint Managing Director of Mantra Resources Limited, which was acquired in 2010 for

+A$1.0bn by ARMZ. He has worked extensively in Australia and southern, east and

west Africa, Central Asia and the Gulf Region.

Mr Yates has an applied technical background and has held senior positions for over

fifteen years, including resident Exploration Manager in Tanzania for Tanganyika Gold

Limited.

Expiry

Issued Shares m 173.412

Options 1 m 2.985 23/06/2019

Options 2 m 2.8 23/06/2019

Options 3 m 2.75 31/05/2020

Total Options m 8.54

Fully Diluted m 181.947



9

Alastair Morrison - Non-Executive Director

Mr Morrison is a geologist with more than 20 years’ experience in mineral exploration

and investment. After graduating from university he worked for more than six years in

Australia as an exploration geologist, initially around Western Australia, then for North

Flinders Mines in the Northern Territory during the initial development of the +5

million ounce Callie gold deposit.

From 1996-2003 he worked in Tanzania for East African Gold Mines Limited at the

North Mara Gold Project, overseeing the delineation of more than 5Moz of resources,

including the discovery of the high-grade Gokona gold deposit. East African Gold

Mines was acquired by Placer Dome Inc. in mid-2003 for US$252 million.

Michael Klessens - Non-Executive Director

Mr Klessens is a CPA with over 22 years of practical financial and management

experience, particularly within the resources industry. This experience has involved all

areas of corporate and treasury management, project financing, capital raisings,

mergers and acquisitions, dual listings, feasibility studies and establishment of

systems and procedures for new mining operations.

From 2002 - 2011, Mr Klessens was Vice President - Finance and Chief Financial

Officer of Equinox Minerals Limited. Prior to Equinox Mr Klessens held senior positions

in mid-tier Australian resource companies primarily focused on gold. Mr Klessens

joined the Board of OreCorp as Director in March 2012.

Robert Rigo - Non-Executive Director

An engineer with over 35 years' experience, Mr Rigo has previously held a number of

executive and senior management positions with publicly listed mining companies. He

was Vice President - Project Development at Equinox Minerals Limited (Equinox),

where he managed the feasibility study, related technical studies and engineering

design and construction contracts for the Lumwana Copper Mine in Zambia, which

commenced production in 2008. Following Lumwana Robert managed the

construction of Equinox's Jabal Sayid (underground) Copper Mine in Saudi Arabia. Mr

Rigo's earlier job roles include Mill Manager at the Boddington Gold Mine, and General

Manager - Technical Services for Newcrest Mining Ltd,

Mr Rigo became a non-executive director of OreCorp in April 2016.

Luke Watson - CFO & Company Secretary

Mr Watson is a Chartered Accountant, Chartered Secretary and a Fellow of FINSIA. He

has significant corporate experience including mergers & acquisitions, capital raisings,

IPOs and dual listings on the TSX. Since 2005, Mr Watson has held senior corporate

and finance positions with a number of African-focused resources companies,

including Mantra Resources Limited and OmegaCorp Limited. Mr Watson was the CFO

& Company Secretary of Mantra from its IPO in October 2006 until its acquisition by

ARMZ for approximately ~A$1bn in mid-2011.

Mr Watson was appointed as CFO & Company Secretary in November 2011.



10

Company Background

ORR was founded as an unlisted public company by current CEO Matt Yates in

2010. The company raised A$12m privately, with a view to acquiring development

stage projects in Africa, quickly making its first investments in Mauritania and

Ethiopia. In December 2011, the company announced the appointment of Craig

Williams as Chairman, former Founder and CEO of Equinox Minerals (acquired by

Barrick Gold for $7bn in 2011).

In 2012, ORR successfully listed on the ASX, via a takeover of Silver Stone

Resources, raising a further A$5m at A$0.20/sh in the process. The tough nature

of the resource market through 2012-2015, dictated only a modest budget for

exploration on the company’s Ethiopian project (Yubdo), while the management

team continued to seek further project and corporate opportunities.

ORR’s primary asset is now the Nyanzaga JV with Acacia Mining, located in NW

Tanzania (Figure 14).

Figure 14: Nyanzaga Project Location


Nyanzaga Project Earn-in and Joint Venture

ORR first acquired an interest in the project in Sep’15, when it entered into an

earn-in and JV agreement with ACA to earn up to a 51% interest in the project. Key

terms of the agreement include:

Up-front cash payment of US$1m to earn an initial 5% interest (completed)

ORR to sole fund the JV regional exploration and pre-development costs to the

completion of a DFS to a maximum of US$14m to earn 25%.



11

At the completion of the DFS, if the NPV is >US$200m, ACA has the right to

maintain its 75% interest and resume operatorship of the project through a

cash payment to ORR based on a schedule of multiples of the initial US$15m

earn-in spend. The various multiples are based on the NPV of the project as

per the DFS, and are shown in Figure 1.

If the NPV of the project is <US$200m, or, if ACA elects not to retain a 75%

participating interest, then ORR has a right to increase its interest in the

project to 51% by making staged payments to ACA totalling US$15m.

Since acquiring the project, ORR has completed an update to the resource

estimate (moving from 43-101 to JORC compliant), and completed a Scoping

Study (Aug’16) which assessed the viability of a +200kozpa OP+UG project (see

“Scoping Study” below).



12

Asset Overview: Nyanzaga Gold Project

Location & Project History

Nyanzaga is located in the Lake Victoria goldfields of NW Tanzania (Figure 15),

approximately 60km SW of the regional centre of Mwanza and 35km NE of ACA’s

+250kozpa Bulyanhulu gold mine. The region is well endowed, having historically

produced 20 Moz, with a further +45Moz in resources/reserves within 100km of

the project area. Notable deposits in the region including Geita (21Moz), Buzwagi

(+3Moz) and Resolute’s (RSG:ASX | Not rated) former Golden Pride mine which

produced 2.2Moz over a mine life of 15 years.

The project covers a total area of 299km2, and is well serviced by infrastructure,

including all weather roads, air-strips, grid power within 14km, and sufficient

ground/surface water. The local climate consists of two distinct “rainy” seasons –

the “masika” (long rains) from Mar-May, and the “mvuli” (short rains) from Nov-

Jan. Average daily temperatures range from 26-30deg Celsius.

Figure 15: Project location map


Gold was first identified in the project area in the late 1930s, with modern

exploration first commencing in 1996. Various companies have undertaken

exploration within the project area since then, including Sub Sahara Resources,

Placer Dome and Barrick Gold (ABX:NYSE | Rated BUY by Tony Lesiak), prior to

Barrick’s divestment of its African assets into African Barrick Gold in 2010 (later

renamed Acacia Mining).

Over 237,000m (over 448 holes) of drilling have been completed on the deposit

by the various operators. A non-JORC Resource estimate was completed in 2013



13

by African Barrick which estimated project resources of 4.19Moz at an average

grade of 1.3 g/t (using a 0.4 g/t cut off).

Geology, Resources & Reserves

The Nyanzaga project is located on the eastern flank of the Sukumaland Archean

greenstone belt, and is hosted within Nyanzian greenstone volcanic rocks and

sediments typical of the greenstone belts of Tanzania. The deposit itself is

considered an orogenic style gold deposit, occurring within a sequence of folded

sedimentary and volcanic rocks.

Gold mineralisation is interpreted to be hosted by iron-rich sediments in the form

of extensive stock work of carbonate, quartz veins and quartz carbonate breccias.

Distribution of gold mineralisation is related to dilatational zones associated with

sub vertical faulting, fracturing and brecciation along a northerly plunging anticline

(Figure 17).

Figure 16: Nyanzaga interpreted geology showing historical 43-101

Resource outline Figure 17: Nyanzaga X-section

Source: Company Reports Source: Company Reports

Mineral Resources

At the time of the ORR’s earn-in and JV agreement with ACA, the project hosted a

43-101 compliant Measured, Indicated and Inferred resource of 100Mt at 1.3 g/t

Au for 4.19 Moz (0.4 g/t cut off). African Barrick had assumed the deposit could

be mined by open pit techniques given the broad zones of mineralisation at or

near surface, with the resource estimate based on a pit optimised gold price of

US$1,500/oz.

ORR subsequently engaged independent consultants to complete a Mineral

Resource estimate (MRE) to comply with JORC 2012 guidelines, which was

completed in Mar’16. The revised estimate revealed a total Measured Indicated



14

and Inferred resource of 21.3Mt at 4.1 g/t for 2.78Moz. Highlights from the

revision include:

an increase in the cut-off grade to 1.5 g/t,

83% of the overall resource in higher confidence Measured and Indicated

categories

0.172Moz at 3.5 g/t being identified in near surface (<80m) oxide and

transitional zones

Mineralisation extending to ~800m below surface, but remaining open at

depth

The change in cut-off grade and impact on tonnes/grade/contained ounces can

be seen in Figures 18 and 19 below.

Figure 18: Historical resources (contained ozs vs grade) Figure 19: Historical resources (tonnes vs cut-off grade)

Source: SNL Mining, Canaccord Genuity estimates Source: SNL Mining, Canaccord Genuity estimates

ORR completed an updated MRE in Aug’16, which, based on the inclusion of lower

grade material that had been excluded from the Mar’16 estimate, saw a 19%

increase in contained ounces to 3.34Moz at an average grade of 3.49 g/t (Figure

20).

The premise for the inclusion of the lower grade material was to support the

evaluation of an open pit progressing to an underground development scenario,

versus African Barrick’s previous large scale open pit approach. A combined

OP+UG operation was subsequently assessed in a Scoping study completed in

Aug’16.

Figure 20: Nyanzaga MRE – Aug’16 Figure 21: Nyanzaga Grade/Tonnage curve


-

0.500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016*

Gra

de (

g/t

Au

)

Mo

z

Contained ozs Resource grade

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1.20

1.40

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-

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40.000

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100.000

120.000

140.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016*

Reso

urc

e c

ut

off

(g

/t A

u)

Mil

lio

n t

on

nes

Resource tonnes Cut off grade

@ 1.5 g/t cut off Mt Grade Moz

Nyanzaga

Measured 2.93 3.77 0.36

Indicated 21.77 3.45 2.41

Inferred 5.10 3.49 0.57

TOTAL 29.80 3.49 3.34

0.0

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rad

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)

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urc

e t

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nes (

Mt)

Cut off grade

Tonnes (RHS) Grade (LHS)



15

Figure 22 below illustrates the deposit’s impressive vertical endowment with an

estimated 4,200ozpvm. We highlight that the reduction in ozpvm from 780mRL is

due to a lack of drilling density, supporting the potential for further growth in

resources through deeper/underground drilling.

Figure 22: Nyanzaga ounces per vertical metre Figure 23: Mineral Resource estimate model


Scoping Study – Aug’16

ORR reported the outcomes of a Scoping Study for the development of Nyanzaga

in Aug’16. The study evaluated the potential to develop a 13-year open pit and

subsequent underground operation, with a 4Mtpa processing plant producing an

average 182kozpa over the LOM (average 220kozpa for the first 5 years) at AISC

of <US$900/oz.

The study was based on the MRE as detailed above, incorporating Measured,

Indicated (83%) and Inferred (17%) material, as well as a further 16Mt of

assumed mining inventory. Other key parameters are shown in Figure 24 below.



16

Figure 24: Aug’16 Scoping Study – key project parameters


Capital costs

The study estimated total establishment capital costs of US$248m, with a break-

down shown in Figure 25 below. We note that capex for the processing plant looks

low for a plant with a proposed capacity of 4Mtpa, especially compared to other

recent African gold developments (Figure 26). However, capital estimates have

been made according to Scoping Study accuracy levels (+/- 35%) with a relatively

generous contingency of US$43m also factored into the overall capital estimate.

Figure 25: Capital cost breakdown Figure 26: Capital intensity - African development projects

Source: Company Reports Source: Company Reports, SNL Mining, Canaccord Genuity estimates

Mining

The Scoping Study envisaged both open pit and underground mining at Nyanzaga,

with open pit mining currently planned to generate mineralised material

containing 1.4 Moz over the initial 5 years. The current schedule includes the

extraction and stockpiling of lower grade material which is proposed to be blended

with higher grade UG material later in the operations life.

The OP strip ratio has been estimated to vary from 1.5:1 to 3:1, with a LOM

average of 2.5:1. The final open pit depth is expected to be ~340mbs.

Parameter Unit Value Parameter Unit Value

Dvlpt period years 1.5 Upfront capex US$m 248

Mine Life years 13 UG capex US$m 18

Total Material Mined Mt 46.7 Sustaining capex US$m p.a. 7.7

Meas + Indicated % 83% UG dvplt capex US$m p.a. 16

Annual Througput Mtpa 17% OP Mining costs US$/t 3.4

OP Strip Ratio x 2.5:1 UG Mining costs US$/t 52

UG mining rate Mtpa 1.1 Processing costs US$/t 10.6

Avg OP Grade g/t Au 1.8* G&A US$/t 2.3

Avg UG Grade g/t Au 3.7 Royalty % 4%

Avg gold recovery % 85% Avg LOM AISC US$/oz $874

Avg gold prod'n kozpa 182

Parameter US$m %

Mine pre-strip & pre-prod'n 14 6%

Process plant 65 26%

Reagents & plant services 8 3%

Infrastructure 56 23%

Mine admin building 1 0%

Contractor & construciton 12 5%

Mgt costs 15 6%

Owner project costs 30 12%

General working cap 4 2%

Sub total 205 83%

Contingency 43 17%

TOTAL 248 100%

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

Esaa

se*

Ya

oure

*

Bo

mbore

*

Kia

ka

Ba

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Tanlo

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Capital In

tensity (

US

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zpa)



17

Figure 27: Conceptual OP design Figure 28: Conceptual UG mine design and infrastructure plan


UG mining is was planned to commence in Year 4 of the project, with an overlap

with open pit mining of <2 years. Initial development capex for the underground is

estimated at US$18m, with first ore planned to be mined in year 4. The Scoping

Study also estimates annual lateral development capex to average US$16m p.a.

We currently expect all UG development and sustaining capital can be funded out

of cash flow from open pit operations.

The main mining method planned to be used in the underground mine will be

continuous retreat sub level open stoping with paste fill. Stoping will likely be

divided into panels up to 75m high (made up of three sub levels spaced 25m

apart), with each panel sequenced from the bottom up.

Figure 29: Typical stoping sequence


Steady state production from the underground is expected to be ~1.1Mtpa, and is

not planned to exceed 1.3Mtpa. The Scoping Study used a nominal 10% for

mining dilution, resulting in a LOM underground mined grade of 3.7g/t gold at a

2g/t cut‐off grade.

The current resource extends to ~800m below surface, or ~460m below the

planned base of the open pit. We note that drilling has intersected mineralisation



18

below the extents of the current mineral resource, and we highlight the potential

for further mineral resources to be defined. Drill testing however will most

efficiently be done from underground positions and therefore will be completed as

underground workings progress.

Processing

The processing plant has been initially designed based on early stage

metallurgical testwork indicating the Nyanzaga ore as being free milling. Hence a

conventional CIL circuit with addition of gravity concentration for coarse gold

recovery has been proposed as presented in Figure 30 below.

Single stage crushing via gyratory crusher along with live stockpile and dead

stockpile capacity

SABC circuit featuring SAG Mill in closed circuit with pebble crusher and single

ball mill to achieve a grind size (P80) of 106 µm at a 4Mtpa run rate.

Gravity circuit to recover coarse gold (proportion yet to be determined).

Leach recovery through a conventional CIL circuit for overall recoveries of

85%.

A Cyanide/SO2 destruction circuit precedes a tailings storage facility with

further test work to determine the suitability for paste fill within future UG

operations.

The flow sheet will be optimised to a DFS standard (+/-10% design accuracy) as

part of the PFS due in Q4’17. This will largely be determined by further testwork

targeting improved gold recoveries through optimisation of comminution, gravity

gold, leach and elution circuits. We see outcomes here as a key area which could

improve project economics versus those outlined in the Scoping Study.

Figure 30: Metallurgical flowsheet




19

Production & Operating costs

Figure 31 illustrates our modelled mill feed and grade assumptions, based on the

mining schedules (OP+UG) presented in ORR’s Scoping Study. Note the impact of

the commencement of UG operations on the average grade, which as shown in

Figure 32, has a material impact on gold production. We estimate average annual

gold production of 220kozpa over the first five years of the project, with an

average over the modelled 13 year mine life of 183kozpa.

Based on the unit cost inputs outlined in the scoping study (+10%), we estimate

average annual AISC of US$860/oz. Higher AISC in Years 3-4 are attributable to

peak open pit material movements and stockpile build.

Figure 31: Ore sources and average mill feed grades Figure 32: CGe annual gold production and AISC

Source: Canaccord Genuity estimates Source: Canaccord Genuity estimates

Project Timetable

ORR’s most recently published development timeline on the project is targeting

completion of a PFS in the 2H 2017 and a DFS by end 2018. In our view, the high

level of detail outlined in the Scoping Study provides a solid foundation for the

PFS and DFS. We note that the Scoping Study was delivered almost 6 months

ahead of the original schedule and we remain confident in ORR continuing to

shave additional time off the schedule as studies progress. This could see 6-12

months saved on the ultimate delivery of the DFS, in our view.

In consideration of the above, our modelled project timetable assumes

commencement of construction in MarQ18, and first production in mid’19 based

on a 15-18 month construction period.

0.00

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z)

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ld p

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tio

(o

z)

Gold production AISC



20

Figure 33: Key technical & permitting timeline


Nyanazaga – regional exploration

ORR’s initial focus from a regional exploration standpoint is expected to be placed

on the potential to add shallow high grade ounces proximal to Nyanzaga to

supplement baseload feed in the earlier years, potentially enhancing project

payback period and IRR. This program will commence with four regional priority

prospects (see Figure 34), some with significant drill intercepts.

In addition, there are 13 largely untested, lower priority targets within 10km of the

Nyanzaga Deposit.

Kasubuya

Located ~12km from Nyanzaga, comprises a group of gold-in-soil anomalies.

Targets have historically been tested with DD, RC, AC & RAB drilling (157 holes,

10k m). Ore grade intercepts include: 3m @ 9.17 g/t Au from 9m, 12m @ 3.24 g/t

Au from 0m, and 4m @ 6.01 g/t Au from 22m

Ifugandi

Located ~9.5km from the Nyanzaga, comprises a group of gold-in-soil anomalies

with prior work including drilling and trenching. Historical ore grade drilling results

include 22m @ 3.38 g/t Au from 27m and 8m @ 3.85 g/t Au from 30m

Nyanzaga South

Located ~2km to the SW of Nyanzaga, comprise a single 2km x 0.2km gold‐in‐soil

anomaly, with 10,700m of historical drilling completed. The best DD drilling

intercepts include 9m @ 2.21 g/t Au from 86m and 3m @ 2.70 g/t Au from 71m

Bululu

An early stage prospect located 5.5km from Nyanzaga. Bululu comprises a single

1km x 0.4km coincident gold and arsenic soil anomaly, with first‐pass DD drill

testing (6 holes, 1,366m) returning intercepts including 6m @ 2.19 g/t Au from

21m



21

Figure 34: Regional exploration prospects




22

Asset Overview: Akjoujt South Ni-Cu Project

Location & Background

ORR has a 90% interest in the Akjoujt South Nickel-Copper project, located in

Western Mauritania, ~200km NE of the capital Nouakchott, and ~200km SE of

Kinross’ (K:TSX | Rated BUY by Tony Lesiak) 300kozpa Tasiast operation. The

project comprises two granted licences covering 460km2 and one licence

application covering 136km2.

Figure 35: Project location Map


Geology & Recent Exploration

The licences cover prospective geological structures and lithology which have the

potential to host both sulphide nickel-copper type deposits and structurally

controlled gold, iron oxide copper gold (IOCG), similar to First Quantum’s (FM-TSE

| Not rated) Guelb Moghrein copper-gold mine located 30km to the north

Work to date has concentrated on the Anomaly 5 prospect, where an initial

regional soil sampling program generated anomalous soil samples of 0.26% Ni

and 0.23% Cu. The anomalism is interpreted to be associated with a circular

intrusive body and alteration assemblage (Figure 36). Subsequent mapping, infill

sampling and trenching has defined a zone of geochemical anomalism

approximately ~1.5km long. Trenching across the anomalism intersected

mineralised intervals of up to 160m in width at 0.24% Ni and 0.21% Cu (Figure

37). A ground magnetic survey covering both Anomaly 5 and Trench 9 was also



23

completed, and highlighted a coincident anomaly over the better zones of

sulphide mineralisation at Anomaly 5. The survey also identified two other areas

of ground magnetic anomalism that will require further follow-up.

Figure 36: Project location Figure 37: Initial trenching results across Anomaly 5 and Trench 9

prospects


ORR recently completed six reconnaissance diamond drill holes (JunQ’16) to

follow up the encouraging surface sampling, with nickel-copper sulphide

mineralisation identified in four of the holes. Drill intercepts were reported up to

31m, with peak nickel and copper values of 1.34% and 1.29%, respectively.

Mineralisation has been encountered over a total of 1km strike length, comprising

a series of sub-parallel gossan/sulphide zones individually up to 350m in strike

length. Highlights from the initial program are outlined below:

ASPDD002 31m at 0.31% Ni and 0.21% Cu from 11m; and 9m at 0.21% Ni

and 0.10% Cu from 94m

ASPDD003 13m at 0.35% Ni and 0.24% Cu from 2m; and 15m at 0.58% Ni

and 0.40% Cu from 19m (incl. 3m at 1.28% Ni and 0.29% Cu from 29m)

ASPDD004 16.7m at 0.40% Ni and 0.22% Cu from 16.3m (incl. 1m at 1.05%

Ni and 0.23% Cu from 31m)

ASPDD005 4.7m at 0.39% Ni and 0.20% Cu from 116.8m (incl. 0.70m at

1.00% Ni and 0.15% Cu from 116.8m)



24

Figure 38: Drill hole location plan Figure 39: Cross section


Mineralisation is hosted within disseminated and semi massive to massive

sulphide breccia zones associated with altered gabbro, mafic and orthogneiss

country rock. The mineralisation comprises breccia and disseminated textured

pyrrhotite (dominant), pentlandite and chalcopyrite primary mineralisation, with

overlying gossan development and secondary nickel sulphide violarite.

Petrological analysis completed indicates that the mineralisation and alteration

assemblages identified to date are parts of a magmatic nickel-copper mineralised

system.

We see the initial results as encouraging and form a valid basis for further work

targeting ore-grade mineralisation. Follow-up activities are planned to include

ground magnetics, ground EM, regional surface geochemistry and mapping which

will be utilised to enhance the understanding and refine the targeting at the

prospect.



25

Appendix 1: Tanzania Country Info

Location: Eastern Africa within the African great Lakes

region. It is bordered to the north by Kenya and

Uganda, Rwanda, Burundi and DRC to the West,

and Zambia, Malawi and Mozambique to the

South.

Capital: Dodoma

Area: 947,303km2

Population: 51.8m (2014)

Official language: Swahili, English

Government: Presidential constitutional republic (President:

John Pombe Magufuli, elected 2015)

Religion: Islam (~35%), Christianity (~30%)

Figure 40: Tanzania country map

Source: Countriesonline.com



http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjmm7TE1NPOAhUDnZQKHcxIAtgQjRwIBw&url=http://www.nationsonline.org/oneworld/map/tanzania-administrative-map.htm&psig=AFQjCNGf1_yoNuUVLaRmvjm-JPj3a3Ef9g&ust=1471908477993197

26

Mining in Tanzania - Overview

Tanzania has a long history of gold mining with the industry government owned

and controlled until a revision of mining laws during the 1990s enabled foreign

companies to begin large scale development. The Mineral Act of 1998 was

revised with the 2010 Mineral Act, with key features including:

The government may acquire a free carried interest and paid up equity

Mineral royalties are charged on the Gross Value with rates varying according

to commodity. Gold/silver – 4%, Uranium – 5%, gemstones – 1%, industrial

minerals – 3%

Relief from VAT; 30% corporate income tax

Holder of Special Mining Licences (for investments exceeding US$100 million)

may enter into MDA with the Government. MDAs are subject to review after

every five years and at the renewal of the mineral right.

Tanzania is the fourth largest gold miner in Africa behind South Africa, Mali and

Ghana, accounting for ~3% of 2015 global production. As Figure 41 below

indicates, gold operations in Tanzania, and more specifically the Lake Victoria gold

belt, are amongst the largest in Africa with three projects in the region

demonstrating production scale above ~250koz.

Figure 41: African gold mines – light blue denotes Tanzanian operation (Nyanzaga is indicative

production potential based on recent project Scoping Studies)


0

200,000

400,000

600,000

800,000

1,000,000

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27

Appendix 2: Investment Risks

Funding

As a pre-production company with no material income, ORR is reliant on equity and

debt markets to fund development of its assets and progressing its regional

exploration pipeline. Total development and working capital requirements are subject

to completion of feasibility studies, and in relation to Nyanzaga, the intentions of

ORR’s project partner in ACA. There is no guarantee that studies will result in a

positive investment decision for the Nyanzaga project. Further, we can make no

assurances that accessing these markets will be done without further dilution to

shareholders.

Exploration risks

Exploration is subject to a number of risks and can require a high rate of capital

expenditure. Risks can also be associated with conversion of inferred resources and

lack of accuracy in the interpretation of geochemical, geophysical, drilling and other

data. No assurances can be given that exploration will delineate further minable

reserves.

Operating risks

If and when in production, the company will be subject to risks such as

plant/equipment breakdowns, metallurgical (meeting design recoveries within a

complex flowsheet), materials handling and other technical issues. An increase in

operating costs could reduce the profitability and free cash generation from the

operating assets considerably and negatively impact valuation. Further, the actual

characteristics of an ore deposit may differ significantly from initial interpretations

which can also materially impact forecast production from original expectations.

Commodity price and currency fluctuations

As with any mining company, ORR is directly exposed to commodity price and currency

fluctuations. Commodity price fluctuations are driven by many macroeconomic forces

including inflationary pressures, interest rates and supply and demand factors. These

factors could reduce the profitability, costing and prospective outlook for the business.

Figure 42: Valuation sensitivity to gold price and FX movements




Appendix: Important DisclosuresAnalyst CertificationEach authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) therecommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent andobjective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoringanalyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to thespecific recommendations or views expressed by the authoring analyst in the research.Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons ofCanaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communicationswith a subject company, public appearances and trading securities held by a research analyst account.Sector CoverageIndividuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoringanalysts of the report.

Investment RecommendationDate and time of first dissemination: September 04, 2016, 16:30 ETDate and time of production: September 04, 2016, 15:23 ETTarget Price / Valuation Methodology:OreCorp Limited - ORRWe value ORR using a sum of the parts (net asset valuation) approach, comprising our probability weighted valuation for ORR’s interestin the Nyanzaga gold project (see below), a nominal value ascribed to the company’s Akjoujt South Cu-Ni exploration project, net ofcorporate and other adjustments.Risks to achieving Target Price / Valuation:OreCorp Limited - ORRInvestment Risks

FundingAs a pre-production Company with no material income, ORR is reliant on equity and debt markets to fund development of its assets andprogressing its regional exploration pipeline. Total development and working capital requirements are subject to completion of feasibilitystudies, and in relation to Nyanzaga, the intentions of ORR’s project partner in ACA. There is no guarantee that studies will result in apositive investment decision for the Nyanzaga project. Further, we can make no assurances that accessing these markets will be donewithout further dilution to shareholders.

Exploration risksExploration is subject to a number of risks and can require a high rate of capital expenditure. Risks can also be associated withconversion of inferred resources and lack of accuracy in the interpretation of geochemical, geophysical, drilling and other data. Noassurances can be given that exploration will delineate further minable reserves.Operating risksIf and when in production, the company will be subject to risks such as plant/equipment breakdowns, metallurgical (meeting designrecoveries within a complex flowsheet), materials handling and other technical issues. An increase in operating costs could reducethe profitability and free cash generation from the operating assets considerably and negatively impact valuation. Further, the actualcharacteristics of an ore deposit may differ significantly from initial interpretations which can also materially impact forecast productionfrom original expectations.

Commodity price and currency fluctuationsAs with any mining company, ORR is directly exposed to commodity price and currency fluctuations. Commodity price fluctuations aredriven by many macroeconomic forces including inflationary pressures, interest rates and supply and demand factors. These factorscould reduce the profitability, costing and prospective outlook for the business.



Distribution of Ratings:Global Stock Ratings (as of 09/04/16)Rating Coverage Universe IB Clients

# % %Buy 548 59.76% 34.12%Hold 286 31.19% 19.23%Sell 22 2.40% 18.18%Speculative Buy 61 6.65% 73.77%

917* 100.0%*Total includes stocks that are Under Review

Canaccord Genuity Ratings SystemBUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.

HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.

SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.

NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or therelevant issuer.Risk QualifierSPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in thestock may result in material loss.

12-Month Recommendation History (as of date same as the Global Stock Ratings table)A list of all the recommendations on any issuer under coverage that was disseminated during the preceding 12-month periodmay be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures-mar.canaccordgenuity.com/EN/Pages/default.aspx

Required Company-Specific Disclosures (as of date of this publication)Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Bankingservices from OreCorp Limited in the next three months.

Oct 2013 Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016 Apr 2016 Jul 2016

0.800.700.600.500.400.300.200.100.00

OreCorp Limited Rating History as of 09/01/2016

Closing Price Target Price

Buy (B); Speculative Buy (SB); Sell (S); Hold (H); Suspended (SU); Under Review (UR); Restricted (RE); Not Rated (NR)

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nzuri* nyanzaga orecorp limited · production metrics 2015a 2016e 2017e 2018e other current assets...

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