Resolute Mining Limited — Annual Report 2020

Feb 25, 2021

Mine Gold. Create Value. for the year ended 31 December 2020

Preliminary Financial Results Presentation

Important notices and disclaimers

This presentation contains information about Resolute Mining Limited (Resolute or the Company) and its activities that is current as at the date of this presentation unless otherwise stated. The information in this presentation remains subject to change without notice. This presentation has been prepared by Resolute and no party other than Resolute has authorised or caused the issue, lodgement, submission, despatch or provision of this presentation.

All dollar values are in United States dollars ($) unless otherwise stated.

The information in this presentation is general in nature and does not purport to be complete. This presentation is not a prospectus, disclosure document or other offering document under Australian law or under the laws of any other jurisdiction. This presentation is provided for information purposes and does not constitute an offer, invitation**,** inducement or recommendation to subscribe for or purchase securities in Resolute in any jurisdiction.

The information contained in this presentation has been prepared in good faith by Resolute, however no guarantee, representation or warranty expressed or implied is or will be made by any person (including Resolute and its affiliates and their directors, officers, employees, associates, advisers and agents) as to the accuracy, reliability, correctness, completeness or adequacy of any statements, estimates, options, conclusions or other information contained in this presentation.

To the maximum extent permitted by law, Resolute and its affiliates and their directors, officers, employees, associates, advisers and agents each expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss or damage suffered by any person relating in any way to the use of or reliance on information contained in this presentation including, without limitation:

• from representations or warranties or in relation to the accuracy or completeness of the information contained within this presentation;
• from statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from this presentation; or
• for omissions from this presentation including, without limitation, any financial information, any estimates, forecasts, or projections and any other financial information derived therefrom.

This presentation does not constitute financial product advice, investment, legal, taxation or other advice and is not intended to be used or relied upon as the basis for making an investment decision. This presentation is not a recommendation to acquire Resolute securities and has been prepared without taking into account the investment objectives, taxation situation, financial situation or needs of individuals. Before making any investment decision in connection with any acquisition of Resolute securities, prospective investors should consider the appropriateness of the information having regard to their own objectives, tax situation, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction.

Past performance information given in this presentation is for illustrative purposes only and should not be relied upon as an indication of future performance. This presentation includes certain forward-looking statements, including statements regarding our intent, belief or current expectations with respect to Resolute's business and operations, market conditions, results of operations and financial condition, and risk-management practices. Words such as 'project', 'foresee', 'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' and similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. These statements are based upon a number of estimates and assumptions that, while considered reasonable by Resolute, are inherently subject to significant uncertainties and contingencies, many of which are outside the control of Resolute, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements on certain assumptions, which may prove to be incorrect. Actual results, performance, actions and developments of Resolute may differ materially from those expressed or implied by the forward-looking statements in this presentation.

As an Australian company listed on the Australian Securities Exchange (ASX), Resolute is required to report Ore Reserves and Mineral Resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Recipients should note that while Resolute's Mineral Resource and Ore Reserve estimates comply with the JORC Code, they may not comply with relevant guidelines in other countries.

For details of the Mineral Resources and Ore Reserves used in this presentation, please refer to ASX Announcement dated 17 February 2021 titled "Annual Ore Reserve and Mineral Resource Statement". The Company is not aware of any new information or data that materially affects the Mineral Resources and Ore Reserves as reported in that ASX Announcement and confirms that all material assumptions and technical parameters underpinning the estimates in that ASX Announcement continue to apply and have not materially changed. The form and context in which the Competent Persons' findings are presented have not been materially modified from that ASX Announcement.

All in Sustaining Cost (AISC) per ounce of gold produced are calculated in accordance with World Gold Council guidelines. These measures are included to assist investors to better understand the performance of the business. Cash cost per ounce of gold produced and AISC are non‐International Financial Reporting Standards financial information.

An investment in Resolute is subject to known and unknown risks, some of which are beyond the control of Resolute, including possible loss of income and principal invested. Resolute does not guarantee any particular rate of return or the performance of Resolute, nor does it guarantee any particular tax treatment. Investors should have regard (amongst other things) to the risk factors outlined in this Presentation when making their investment decision. See the "Key Risks" section of this presentation for certain risks relating to an investment in Resolute.

This presentation includes pro-forma financial information which is provided for illustrative purposes only and is not represented as being indicative of Resolute (or anyone else's) views on Resolute's future financial position or performance.

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

Resolute's production guidance for 2021 is 350,000oz to 375,000oz at $1,200/oz to $1,275/oz. Resolute does however continue to assess developments and update the Company's response to COVID-19 while placing the highest priority on the safety and wellbeing of its employees, contractors and stakeholders. Further escalation of COVID-19, and the implementation of further government-regulated restrictions or extended periods of supply chain disruption, has the potential to negatively impact gold production, earnings, cash flow and the Company's balance sheet.

This presentation has been authorised for release by Interim CEO, Mr Stuart Gale.

Financial performance

$618m

Revenue +15%

$199m

Operating cash flow

$230m

Net debt

$37m

Underlying net profit after tax

Net profit after tax

2020 in review

58% improvement in TRIFR to 0.87 in 2020

Syama underground production of 2.1Mt with nameplate capacity of 2.4Mtpa achieved in Q4

Mako Life of Mine updated with a 39% increase in production and an additional 2 years mine life

Tabakoroni Mineral Resource upgraded with PFS completed

3

COVID-19 response plan in place enabling business continuity

Production improvements during periods of political disruption and labour disputes

Ravenswood divested and sale agreement reached for Bibiani

Ore Reserves of 4.7Moz and Mineral Resources maintained at 11Moz

Operational overview

395,136oz Total Gold Production $1,074/oz All-In Sustaining Cost

395,175oz Total Gold Sold $1,562/oz Average Price Received

Multi asset production base

Full year contributions from Syama Sulphide and Mako

Group Earnings Profile

Revenue ($m) EBITDA ($m)

Increased revenue in 2020 driven by an increase in gold sold and higher achieved gold price during the period

EBITDA Margin

Improved EBITDA and EBITDA margins due to increased revenue and improved operating cost performance

Earnings Analysis

Profit and Loss Analysis($'000s)	ContinuingOperations(Syama / Mako)	DiscontinuingOperations(Ravenswood)	2020Group	2019Group(restated*)
Revenue	602,985	15,268	618,253	535,580
Cost of sales excluding depreciation and amortisation	(254,848)	(13,069)	(267,916)	(366,037)
Other operating costs relating to gold sales	(71,339)	(2,131)	(73,470)	(47,628)
Administration and other corporate expenses	(18,634)	(172)	(18,806)	(14,767)
Exploration and business development expenditure	(10,910)	(179)	(11,089)	(15,362)
EBITDA	247,255	(283)	246,972	91,786
Non-recurring items:
+ COVID 19 costs	3,195	-	3,195	-
+ Inventory adjustments	14,375	-	14,375	45,326
+ Business development and acquisition costs	5,118	-	5,118	7,218
Underlying EBITDA	269,942	(283)	269,659	144,331
Depreciation and amortisation relating to gold sales	(175,331)	(47)	(175,378)	(79,354)
Net interest expense	(9,500)	(80)	(9,580)	-
Finance costs	(13,023)	-	(13,023)	(31,507)
Fair value movements and unrealised treasury transactions	(30,644)	(47)	(30,692)	-
Other	(884)	-	(884)	(1,771)
Gain on disposal	-	41,932	41,932	-
Non-recurring items:
+ Non-recurring high cost interest on Toro Bridge Facility	8,840	-	8,840	-
Underlying net profit/(loss) before tax	49,400	41,475	90,875	31,699
VAT expense	(24,308)	-	(24,308)	(40,282)
Current Income tax (expense)/benefit	(12,833)	-	(12,833)	(17,345)
Deferred Income tax (expense)/benefit	(17,212)	-	(17,212)	-
Underlying net profit/(loss) after tax	(4,953)	41,475	36,522	(25,928)
- Adjustments	(31,527)	-	(31,527)	(52,545)
Net (loss)/profit after tax	(36,480)	41,475	4,995	(78,473)

*With effect from 1 January 2020, Resolute Mining Limited elected to change its presentation currency from Australian dollars to US dollars. As such, a restated comparative period has been presented.

Strong Underlying EBITDA generation

• 169% increase in EBITDA
• 87% increase in underlying EBITDA after adjusting for non-recurring events

Gain on the sale of Ravenswood $42m based on:

• A$50m cash proceeds + A$50m promissory note; and
• A$20m valuation on the gold price promissory note (max value A$50m)

D+A - over mining remaining asset lives

• Syama ($550m) + future UG development ($200m) over 10 years
• Mako (~$320m) over 4 years

FV movements - stockpiles NRV and write-offs $46m non-cash expense. Unrealised fx gains of $16m

VAT expense - 2020 Mali demands contested provision to $66m

Deferred taxes – non cash impacts on Ravenswood sale and Mako LOM

Cash Flow Analysis ($m)

Improved operating cash flows and simplified balance sheet

Strengthening balance sheet and hedge book

Equity raising

• A$195m equity raising via two-tranche placement and share purchase plan supported by new and existing investors

Debt refinancing

• Established a new flexible low cost $300m senior debt facility
  • $150m revolving credit facility (three-year term); and
  • $150m term loan facility (four-year term)

Repaid $92m of higher cost bridging debt

Mako royalty acquired in January 2020 to buyout existing 1.1% royalty, capturing improved gold price and LOM extension

Capital structure simplification Gold hedging (at 31 December 2020)

	Forward Sales
	Forward Price($/oz)	Delivery(oz)
March 2021	1,688	50,000
June 2021	1,655	40,000
September 2021	1,667	18,000
December 2021	1,670	15,000
Total	1,672	123,000

60,000oz of zero cost collars added in 2021 comprising:

• Put options averaging $1,633/oz
• Call options averaging $2,300/oz

Syama Gold Mine: Mali

Syama is a long-life asset with Mineral Resources of 7.6Moz and Ore Reserves of 3.3Moz. Operations consist of both sulphide and oxide mines with dual processing circuits; extensive landholdings in a highly prospective gold region.

Sulphide Production

• 123,500oz produced, 102% increase on 2019
• AISC of $1,465/oz expected to fall as cave draw increases
• Overall recovery of 78.2%
• 2.0Mt processed
• Recoveries expected above 80% during H2 21

Syama Underground Mine Performance

• Sub-level cave performance in line with expectations
• 2.1Mt ore mined at average grade of 2.59g/t

Stockpiles

• 500kt at average grade of 2.3g/t

Oxide Production

• 90,860oz at an AISC of US$844/oz
• 91.2% recovery

Future Oxide Production

• First phase oxide mining completed at Tabakoroni
• Cashew, Paysans, & Tellem satellite deposits to provide additional oxide feed
• Further phases of oxide mining expected at Tabakoroni Stockpiles
• Over 2.5Mt at an average grade of 1.4g/t Au
• Provides supplementary feed source through to 2022

Mako Gold Mine: Senegal

Mako is a high margin open pit gold mine with Mineral Resources of 965koz and Ore Reserves of 780koz; conventional mining and processing generate strong free cashflow.

Production

• 169,731oz produced at an AISC of $812/oz
• Processed tonnages, grades & recoveries all ahead of guidance
• Plant throughput annualised rate of ~2.1Mtpa, from original design capacity of 1.8Mtpa, while maintaining excellent recoveries of ~93.5%

Stockpiles

• Mining outstripped processing rates since commencement of operations, allowing accumulation of large stockpiles of lower grade ore (approximately 2.5Mt grading 1.4g/t Au), and delivering higher grades to the processing plant.

Life of Mine Update (LOM)

• New Life of Mine Plan gold production increased by 39% from 890,000oz to 1.24Moz
• Mine life extended by 2 years to early 2027
• Average annual production of 140,000oz expected over next five years
• Over the remaining 7 years of mine life, Mako will produce 900koz at an average AISC of US$900/oz
• Potential for additional mine life extensions from regional exploration program

12

Portfolio consolidation

Ravenswood divestment complete with Bibiani sale agreement signed

Ravenswood Gold Mine, Australia

Sale completed 31 March 2020 with up to A$300m proceeds

Immediate liquidity: A$100m received through A$50m in cash & A$50m promissory notes which earn a 6% coupon

Up to A$50m linked to average gold price over 4-year period

Exposure to Ravenswood future liquidity event with value up to A$150m

Bibiani Gold Mine, Ghana

Binding sale agreement signed 15 December 2020 with Chifeng Jilong Gold Mining Co. Ltd for $105m cash

$5m deposit received on signing

$100m cash on completion, expected by March 2021 to be applied to debt repayments

FIRB approvals received; Ghana and China approvals pending

2021 outlook

Consistent operational delivery and enhancing balance sheet strength

2021 focus

Production and free cash flow generation

14

Maintain TRIFR and continue development of health and safety management system

Improve through-put and recovery from Syama sulphide processing

Syama Power Station operational and delivering cost savings end March 2021

Progress work on new high-grade underground mine at Tabakoroni

Accelerate exploration for discovery of additional oxide resources to extend mine life at Syama

Debt reduction of $150m from operating cash flow and asset sale proceeds.

Regional drilling programs around Mako to increase resource base and extend mine life

Adoption and compliance with Responsible Gold Mining Principles

2021 guidance

There are significant benefits associated with automation and the connected Production and cost guidance for 12 months to 31 December 2021

• Gold production forecast: 350,000oz to 375,000oz at a forecast AISC between $1,200/oz & $1,275/oz, inclusive of corporate overheads from:
  • ➢ Syama Sulphide: 155,000oz to 170,000oz at an AISC of $1,200/oz to $1,275/oz
  • ➢ Syama Oxide: 80,000oz to 85,000oz at an AISC of $1,050/oz to $1,090/oz
  • ➢ Mako: 115,000oz to 120,000oz at an AISC of $1,175/oz to $1,225/oz impacted by cut-back
• Capital expenditure (non-sustaining) for operating assets $29m
• Exploration expenditure $17m
• Proceeds from the sale of Bibiani to reduce debt
• Depreciation and amortisation of $173m in line with 2020

Tabakoroni Underground potential

There are significant benefits associated with automation and the connected communication and information technology systems Value enhancing, near mine exploration activity

• Mineral Resource growth

• ➢ 19 April 2019: 5.2Mt at 5.1g/t Au for 850,000oz
• ➢ 14 October 2020: 7.4Mt at 4.4g/t for 1.04Moz
• ➢ 27 January 2021: 8.1Mt at 4.9g/t Au for 1.26Moz
• Key PFS outputs:
  • ➢ Production of ~80,000ozpa;
  • ➢ AISC of US$974/oz over initial 4-year mine life
  • ➢ Start-up capital requirement of US$86m
• Tabakoroni Underground to use existing Syama oxide processing
• Maiden Ore Reserve
  • ➢ February 2021: 2.9Mt at 4.6 g/t for 430,000oz
• Exploration continuing to extend & upgrade resource

Syama Hybrid Power Station

New power plant and HFO storage facility

• 30MW thermal power plant and 10MW battery
• Reduce fuel usage and costs by up to 40%
• Environmentally friendly, reducing emissions by ~ 20%
• Civil works, installation of generating engines, fuel treatment and storage facility completed
• Battery storage system commissioned
• First fill of HFO storage facility completed December 2020
• Remaining construction near completion
• Two new generating engines expected to be commissioned in March 2021

Value through sustainability

18

Developing national leaders

Nationalisation of workforces

• Syama 89%
• Mako 90%

National leadership at Syama

• Country Manager
• Site General Manager

Training

• Prioritising training and development across operations
• Syama Apprenticeship Programme at Saint Jean Bosco Technical College in Bamako, Mali

2020 Financial Results Presentation

Strategic investments in Africa

Establish a portfolio of investments in emerging gold explorers to provide potential for medium term growth opportunities

Focus

Equity investments in African focused explorers in highly prospective gold regions

Contact Stuart Gale | Interim CEO EMAIL: contact@rml.com.au PHONE: +61 8 9261 6100

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