Tietto Minerals Poised for Growth with West Africa's Newest Gold Mine

• Tietto Minerals is the newest ASX-listed gold producer in West Africa. They recently achieved commercial production targets in July 2023 and have a significant mineral resource of 3.83 million ounces.
• The company has a $25 million US debt facility, of which they paid down $6.25 million last month. They have cash and bullion totaling $43.8 million as of the end of the previous month.
• Tietto Minerals is focused on increasing its milling throughput rates to improve gold production. They are looking to achieve a production rate of about 5.5 million tons per year.
• Tietto Minerals owns 88% of the AAR project, with 2% held by local partners and 10% by the government of Côte d'Ivoire. They are locked into a 25% corporate tax rate and pay royalties based on gold prices.
• The company is actively exploring new sites and expanding its resource base. They have extensive exploration permits in the region and are optimistic about the future of their mining operations in West Africa.

Tietto Minerals (ASX: TIE) has transitioned over the past two years from exploration to gold producer, delivering the newest gold mine in West Africa ahead of schedule and now focused on expanding production. With its Abujar project in Côte d’Ivoire ramping up to nameplate capacity, Tietto has set its sights on growing its resource base to extend the mine life beyond 11 years. Additionally, the company’s promising APG deposit could significantly boost production, with studies underway targeting completion by the end of 2023.

Tietto’s accomplishments are underpinned by Côte d’Ivoire’s favorable mining jurisdiction, and its proven and experienced leadership team. While the share price has sagged recently, hitting its production targets positions Tietto for a re-rating as it continues to deliver.

Robust Production Growth Underway

Tietto achieved commercial production at Abujar in July 2022, after pouring the first gold in January 2022. The company built the mine in just two years, remarkably fast by industry standards. Guidance for the December half is 75,000-85,000 ounces at All-In Sustaining Costs of $1,100-$1,200/oz.

The Abujar plant is running above nameplate capacity of 4.5Mtpa, with September mill throughput reaching 4.8Mtpa. Mining output dipped temporarily during the rainy season, but Tietto expects mining to bounce back to drive gold production higher in the coming months. The production schedule is 97% Indicated and Measured resources, smoothing out quarterly fluctuations. At 1.45Moz, reserves provide an initial mine life of 11 years, but Tietto is aiming to extend well beyond that.

Upside from Nearby APG Deposit

Just 10km from Abujar, the APG deposit could significantly increase Tietto’s production profile. Column leach test work and drilling are underway, with the aim of completing a Definitive Feasibility Study in 2023 on developing APG as a large, low-cost open pit heap leach operation.

APG’s existing Inferred resources stand at 460koz, but Tietto sees potential to increase this multiple times over to +800koz. With infrastructure from Abujar easily expandable to APG, capital intensity should be relatively low. First production could come online in 2025, dovetailing as Abujar reserves deplete in the late 2020s.

Exploration to Further Expand Resource Base

In just six years, Tietto Minerals has grown Abujar’s resources from 700koz to 3.8Moz currently. Over 50% of resources are now in the Measured category, up from zero in 2018. The company sees significant potential to expand resources along strike and at depth around Abujar.

Regionally, Tietto controls a large portfolio spanning 1,170km2 in Côte d’Ivoire plus additional properties in Liberia. These offer additional opportunities for new discoveries to further extend Tietto’s production pipeline. Exploration drilling will accelerate in 2023 after a focus on Abujar’s development in recent years.

Attractive Mining Jurisdiction

Côte d’Ivoire offers Tietto numerous advantages as a mining jurisdiction. The country has extensive infrastructure, including roads, power grid and grid power generated from clean, renewable hydropower. A skilled workforce supports mining operations and projects.

Importantly, the government is welcoming of and supportive to mining investment. Tietto’s fiscal terms at Abujar were locked in via a mining convention, including 25% corporate tax rate, capped royalty of 6% and just 0.5% contribution to community development fund.

Proven Leadership Team to Deliver Growth

Tietto’s leadership team has deep experience successfully developing and operating mines in Africa. CEO Mark Strizek, COO Matt Wilcox and much of the management team previously worked together at Nord Gold, where they oversaw development of three West African mines.

The team’s track record of delivering Abujar safely ahead of schedule and under budget instills confidence in their ability to execute Tietto’s next phase of growth.

Near-Term Catalysts Could Re-Rate Tietto

Tietto’s share price has declined over the past year, but with Abujar hitting key production milestones the company appears positioned for a potential re-rating. Upcoming catalysts include:

• December 2022 quarterly – First full quarter of commercial production
• December 2022 – Increased reserves statement
• 2023 – APG study results and potential low-cost production expansion

If execution continues positively, Tietto Minerals represents compelling value trading at just 0.7x P/NAV versus gold junior averages of ~1x. Tietto offers investors low-cost production growth in a stable, mining-friendly West African jurisdiction.

The Investment Thesis for Tietto Minerals

• Production growth underway - Tietto has successfully transitioned to commercial production months ahead of schedule. The Abujar mine is already exceeding nameplate capacity and still ramping up. With output expected to rise in coming quarters, Tietto should generate increasing cash flows.
• Significant expansion potential - The APG deposit could add substantial low-cost production, possibly doubling output. Further exploration upside exists to expand resources along strike and regionally. This provides production growth potential beyond the initial 11-year mine life.
• Attractive valuation - Despite its rapid production growth and exploration success, Tietto trades at a discounted 0.7x P/NAV ratio versus peer averages of 1x. Execution risks appear to be reducing as the company hits key milestones.
• Experienced team - Tietto's management has a strong track record of successfully building and operating mines in West Africa. This provides confidence in their ability to execute the next stage of growth.
• Favorable mining jurisdiction - Côte d'Ivoire offers a stable, mining-friendly environment with excellent infrastructure. The government actively supports mining investment.

Tietto Minerals offers investors an attractive value opportunity to gain exposure to a growing, low-cost gold producer in a prospective region. The company exhibits significant re-rating potential as it continues executing well operationally.