Shanta Gold : H1 2019 Interim Results and Update Presentation

Shanta Gold

H1 2019 Interim Results and Update

12 August 2019

Disclaimer

This Document comprises an institutional update presentation (the "Presentation") which has been prepared by and is the sole responsibility of Shanta Gold Limited (the "Company"). This Presentation does not constitute or form part of an admission document, listing particulars or a prospectus relating to the Company or any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000. This presentation does not constitute a recommendation regarding any decision to sell or purchase securities in the Company.

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H1 2019 Interim Results

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Shanta Gold - highlights

• High grade, low cost gold producer generating strong cash flows

H1 2019 highlights

• Gold production of 42.2k oz at New Luika
• Lowest quartile cash costs of US$530 /oz
• Lowest quartile AISC1 of US$730 /oz
• Cash, and available liquidity of US$9.3 m
• Gross debt reduced to US$30.1 m
• Net debt reduced to US$26.9 m
• Net capital investment of US$8.0 m
• Adjusted EBITDA2 of US$22.6 m
• Exceptional safety record: LTIFR: 0

2019 guidance reiterated

• Gold production of 80−84k oz at New Luika
• AISC of US$740-780/oz

1. The AISC calculation since Q3 2017 includes the impact of higher royalties (c. US$40/oz). Development costs at the Bauhinia Creek, Luika and Ilunga underground operations are not included in AISC
2. EBITDA is earnings before interest, tax, depreciation and amortisation which has been derived as operating profit exclusive of pre-production revenue, depreciation/depletion of tangible assets and amortisation of intangible assets. Adjusted EBITDA has been derived as EBITDA before non-cash loss on unsettled forward contracts.

NLGM has now produced more than 500k oz of gold

84	82	88		82	80-84
	80

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	2013	2014	2015	2016	2017	2018	2019
							Guidance
	Summary Capitalisation
	Share Price (GBP) 3				9.50p
	Market capitalisation			US$91 m
	Net debt 4					US$27 m
	Enterprise Value				US$118 m

1. As of 9 August 2019
2. As of 30 June 2019

H1 2019 Interim Results

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US$45 m operating cashflows over the last twelve months

EBITDA (US$ million)	Operating cash inflow before movement
	in working capital (US$ million)

$50.2		$50.1
$45.7	$45.6	$46.1	$45.0
$37.7		$40.3
$31.9		$31.8

2015	2016	2017	2018	LTM	2015	2016	2017	2018	LTM
				June 2019					June 2019

Note: LTM refers to Last Twelve Months (July 2018-June 2019), adjusted for non-cashloss on unsettled forward contracts 2015-2018 audited financial results are unadjusted

H1 2019 Interim Results

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H1 2019 EBITDA to cash flow bridge

EBITDA to cash flow bridge highlights

(a) Adjusted EBITDA1

(b) Working capital movements

(c) Capital expenditure2

(d) Net debt reduction

(e) Interest paid

(f) Tax, Other

(g) Net decrease in cash and cash equivalents

1. EBITDA is earnings before interest, tax, depreciation and amortisation which has been derived as operating profit exclusive of pre-production revenue, depreciation/depletion of tangible assets and amortisation of intangible assets. Adjusted EBITDA has been derived as EBITDA before non-cash loss on unsettled forward contracts.
2. Capital expenditure has been represented on a gross basis, taking into account a normalised margin on pre-production ore for EBITDA calculation purposes.

H1 2019 Interim Results

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