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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
TM5017524.2 g/t Au/10.2 mAnd 57.8 g/t Au/1.5 m
-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
(7) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes
23
TM003817.4 g/t Au/65.7 mIncluding 14.4 g/t Au/26.1 m
TM0039217.1 g/t Au/1.5 mAnd 12.6 g/t Au/15.5 m
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
(8) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes
TM003966.6 g/t Au/42.2 mIncluding 32.9 g/t Au/5.0 m
24
N S
TM0042210.4 g/t Au/9.6 m
TM004344.9 g/t Au/29.5 mIncluding 10.9 g/t Au/10.5 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
(9) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes
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
(10) Refer to appendix for the complete Hope Bay Mineral Resource and Mineral Reserve table and accompanying notes
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
Madrid South 690 10.9 242
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
Madrid South 605 14.8 287
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
Madrid South 605 14.8 287
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
Madrid South 490 8.3 131
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