\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three months
\n
ended
\n
December 31
\n
2020<\/b><\/p>\n<\/td>\n | \n Three months
\n
ended
\n
December 31
\n
2019<\/b><\/p>\n<\/td>\n | \n Year ended
\n
December 31
\n
2020<\/b><\/p>\n<\/td>\n | \n Year ended
\n
December 31
\n
2019<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating Data<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOre mined (tonnes)\n<\/p>\n<\/td>\n | \n \n149,347\n<\/p>\n<\/td>\n | \n \n140,583\n<\/p>\n<\/td>\n | \n \n506,109\n<\/p>\n<\/td>\n | \n \n479,929\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOre processed (tonnes)\n<\/p>\n<\/td>\n | \n \n128,060\n<\/p>\n<\/td>\n | \n \n131,439\n<\/p>\n<\/td>\n | \n \n512,276\n<\/p>\n<\/td>\n | \n \n466,157\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nHead grade (g\/t)\n<\/p>\n<\/td>\n | \n \n9.3\n<\/p>\n<\/td>\n | \n \n9.8\n<\/p>\n<\/td>\n | \n \n8.5\n<\/p>\n<\/td>\n | \n \n9.5\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRecovery (%)\n<\/p>\n<\/td>\n | \n \n98.2\n<\/p>\n<\/td>\n | \n \n98.3\n<\/p>\n<\/td>\n | \n \n98.0\n<\/p>\n<\/td>\n | \n \n98.2\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGold ounces produced\n<\/p>\n<\/td>\n | \n \n35,191\n<\/p>\n<\/td>\n | \n \n41,162\n<\/p>\n<\/td>\n | \n \n133,940\n<\/p>\n<\/td>\n | \n \n142,204\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGold ounces sold2<\/sup><\/p>\n<\/td>\n| \n \n38,504\n<\/p>\n<\/td>\n | \n \n40,700\n<\/p>\n<\/td>\n | \n \n135,310\n<\/p>\n<\/td>\n | \n \n140,800\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Financial Data (in thousands of dollars)<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGold sales1<\/sup><\/p>\n<\/td>\n| \n \n72,155\n<\/p>\n<\/td>\n | \n \n60,208\n<\/p>\n<\/td>\n | \n \n239,686\n<\/p>\n<\/td>\n | \n \n196,151\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nMine operating expenses2<\/sup><\/p>\n<\/td>\n| \n \n(23,231)\n<\/p>\n<\/td>\n | \n \n(19,130)\n<\/p>\n<\/td>\n | \n \n(81,890)\n<\/p>\n<\/td>\n | \n \n(69,371)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGovernment royalties2<\/sup><\/p>\n<\/td>\n| \n \n(4,340)\n<\/p>\n<\/td>\n | \n \n(4,296)\n<\/p>\n<\/td>\n | \n \n(14,392)\n<\/p>\n<\/td>\n | \n \n(10,680)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation and depletion2<\/sup><\/p>\n<\/td>\n| \n \n(16,628)\n<\/p>\n<\/td>\n | \n \n(16,359)\n<\/p>\n<\/td>\n | \n \n(55,023)\n<\/p>\n<\/td>\n | \n \n(51,823)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Statistics (in dollars) <\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAverage realized selling price (per ounce)\n<\/p>\n<\/td>\n | \n \n1,874\n<\/p>\n<\/td>\n | \n \n1,479\n<\/p>\n<\/td>\n | \n \n1,771\n<\/p>\n<\/td>\n | \n \n1,393\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCash operating cost (per tonne processed)2<\/sup><\/p>\n<\/td>\n| \n \n152\n<\/p>\n<\/td>\n | \n \n146\n<\/p>\n<\/td>\n | \n \n152\n<\/p>\n<\/td>\n | \n \n149\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCash operating cost (per ounce produced)2<\/sup><\/p>\n<\/td>\n| \n \n553\n<\/p>\n<\/td>\n | \n \n466\n<\/p>\n<\/td>\n | \n \n579\n<\/p>\n<\/td>\n | \n \n489\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal cash cost (per ounce sold)2<\/sup><\/p>\n<\/td>\n| \n \n682\n<\/p>\n<\/td>\n | \n \n576\n<\/p>\n<\/td>\n | \n \n692\n<\/p>\n<\/td>\n | \n \n568\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSustaining capital cost (per ounce sold)2<\/sup><\/p>\n<\/td>\n| \n \n180\n<\/p>\n<\/td>\n | \n \n269\n<\/p>\n<\/td>\n | \n \n262\n<\/p>\n<\/td>\n | \n \n216\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSite all-in sustaining cost (per ounce sold)2<\/sup><\/p>\n<\/td>\n| \n \n862\n<\/p>\n<\/td>\n | \n \n845\n<\/p>\n<\/td>\n | \n \n954\n<\/p>\n<\/td>\n | \n \n784\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Health and safety performance<\/span><\/p>\n\nSafety is a core value of Roxgold. There was one Lost Time Injury (\u201cLTI\u201d) incident in 2020. The LTI was suffered by a contractor\u2019s employee and marked the first LTI incident at the Yaramoko Gold Mine since September 2018. This led to a LTIFR of 0.37 per one million hours worked or one incident over 2.69 million man-hours in 2020.\n<\/p>\n Operational performance<\/span><\/p>\n\nThe Company\u2019s gold production in 2020 was 133,940 ounces at a head grade of 8.5 g\/t compared to 142,204 ounces at 9.5 g\/t in 2019.\n<\/p>\n \nMining activities totalled 506,109 tonnes of ore mined at a grade of 8.4 g\/t (includes marginal ore mined totalling 77,778 tonnes at a grade of 2.3 g\/t) and 4,325 metres of waste development. This compares with 479,929 tonnes of ore at 8.9 g\/t and 6,346 metres of waste development in 2019. The 55 Zone mine produced 326,416 tonnes at 8.61 g\/t and the Bagassi South mine contributed 179,694 tonnes at a grade of 7.9 g\/t.\n<\/p>\n \nThe mining tonnage was attributable to the ramping up of stoping activities at the Bagassi South mine with stoping operations expanding following the completion of mine development in Q3 2020. During 2020, approximately 69% of ore produced came from stoping activities and 31% from development.\n<\/p>\n \nDecline development at the 55 Zone mine reached the 4674 level, approximately 650 metres below surface. Ore development continued down to 4694 level with seven levels developed during the year. The development of the Bagassi South mine was completed in Q3 2020 with the main decline reaching 5044 level, approximately 260 metres below surface. Ore development occurred on six levels and was completed in Q4 2020.\n<\/p>\n \nMine reconciliation performance between the Mineral Reserve and Grade Control model was 107% for tonnes and 104% for grade for the year.\n<\/p>\n \nThree underground diamond drill rigs were mobilised to Yaramoko in August 2020 to begin grade control and resource definition drilling at the 55 Zone and at Bagassi South. A total of 14,608 metres were completed in 2020 with the drilling program continuing into the first half of 2021.\n<\/p>\n \nThere was a record annual throughput of 512,276 ore tonnes processed in 2020, at head grade of 8.5 g\/t, gold recovery of 98.1% and, plant availability of 96.3%; compared to 2019 when 466,157 ore tonnes were processed at 9.5 g\/t head grade, 98.2% gold recovery and, availability of 96.2%.\n<\/p>\n \nThe Yaramoko Gold Mine continued to maintain a low cash operating cost2<\/sup> of $152 per tonne processed driven by increased throughput and strong cost control.\n<\/p>\nFinancial Performance<\/span><\/p>\n\nGold sales in 2020 totalled $239.7 million from 135,310 ounces of gold. The Company\u2019s average realized gold price was $1,771 per ounce sold, 27% higher than the average realized gold price in 2019.\n<\/p>\n \nThe Company maintained a cash operating cost2<\/sup> per tonne processed of $152 per tonne. The cash operating cost2<\/sup> per ounce produced totalled $579 per ounce for the year compared to $149 per tonne and $489 per ounce in the comparative period.\n<\/p>\n\nThe total cash cost2<\/sup> of $692 per ounce sold in 2020 was higher compared to $568 per ounce sold in 2019. This was primarily impacted by the processing of lower grade stockpiled material which had an impact of $35 per ounce sold, the higher gold price in 2020 which increased royalty payments by $19 per ounce sold, and the commencement of the 1% contribution to the Mining fund for local development increasing royalties by $18 per ounce sold.\n<\/p>\n\nAs a result, the Company achieved a site all-in sustaining cost2<\/sup> of $954 per ounce sold and an all-in sustaining cost2<\/sup> of $1,004 per ounce sold in 2020 compared to $784 per ounce and $844 per ounce sold, respectively in the comparable period. The higher all-in sustaining cost in the year is attributed to the higher cash cost per ounce sold including the processing of marginal ore which had an impact of $35 per ounce sold, the higher gold price in 2020 which increased royalty payments by $19 per ounce sold, the commencement of the 1% contribution to the Mining fund for local development increasing royalties by $18 per ounce sold and increased underground development expenditure which had an impact of $46 per ounce sold.\n<\/p>\n\nThe Company generated a mine operating margin2<\/sup> of $1,079 per ounce in 2020 which was 31% higher than in 2019 mainly due to the higher average gold sales price.\n<\/p>\n\nThe Company invested $23.2 million in underground mine development at the 55 Zone and $12.2 million at Bagassi South in 2020, compared to $25.3 million and $5.1 million respectively for the comparable period in 2019.\n<\/p>\n \nThe Company generated strong cash flow from mining operations2<\/sup> of $126.2 million in 2020, for cash flow from mining operations per share2<\/sup> of $0.34 (C$0.45\/share). Comparatively, the Company generated cash flow from mining operations2<\/sup> of $98.3 million and $0.27 cash flow from mining operations per share2<\/sup> in the prior year.\n<\/p>\nExploration activities<\/span><\/p>\n\nExploration drilling testing the near surface potential on the Yaramoko permit commenced in the last quarter. Several areas were identified from a recent structural review including 109 Zone, where historic exploration had identified several prospective areas along a zone extending approximately 750m along strike and following up on several high-grade intervals from previous drilling close to Bagassi South. These intervals are interpreted as forming part of a larger vein system associated with the QV, QV1, QV2 and QV3 veins, and highlight the potential for additional extensions from the existing Bagassi South workings as well as potential open-pit opportunities. Several other early-stage opportunities have been identified across the Yaramoko property as part of a regional targeting exercise that will be followed up over the next 12 months to assess further near-surface mineralization opportunities.\n<\/p>\n Figure 1: Yaramoko regional prospects<\/i><\/p>\n S\u00e9gu\u00e9la Gold Project<\/b><\/p>\n \nThe S\u00e9gu\u00e9la Gold Project is located in C\u00f4te d\u2019Ivoire and was acquired by Roxgold in April 2019. The Project is located approximately 240 kilometres north-west of Yamoussoukro, the political capital of C\u00f4te d\u2019Ivoire, and approximately 480 kilometres north-west of Abidjan, the commercial capital of the country. S\u00e9gu\u00e9la consists of the resource-defined, near surface Antenna, Agouti, Boulder Ancien and Koula deposits that are ideally located near existing infrastructure including grid power, transport and water resources.\n<\/p>\n Project update<\/span><\/p>\nMining permit<\/i><\/p>\n \nIn December 2020, the Company received confirmation of the signed exploitation (mining) permit from the government of C\u00f4te d\u2019Ivoire to develop and operate the S\u00e9gu\u00e9la Gold Project in C\u00f4te d\u2019Ivoire. Alongside this development, Roxgold has commenced early works at S\u00e9gu\u00e9la to protect the project critical path and facilitate a rapid ramp up to full construction in 2021 pending the results of the feasibility study.\n<\/p>\n \nThe exploitation permit has been approved by the Council of Ministers and signed as a mining decree by the President of C\u00f4te d\u2019Ivoire, and other governmental authorities. The decree grants Roxgold an industrial mining permit for development and operation of the S\u00e9gu\u00e9la Gold Project. The permit is valid for 10 years, from December 9, 2020, with opportunities to renew as further growth and expansion is proven. The Company\u2019s final permitting milestone at S\u00e9gu\u00e9la is the completion of the Mining Convention negotiation process.\n<\/p>\n Net Smelter Royalty buyback<\/i><\/p>\n \nIn November 2020, the Company exercised its right of first refusal and repurchased a 0.3% Net Smelter Royalty (the \u201cNSR\u201d) from an original property owner with respect to the Company\u2019s S\u00e9gu\u00e9la Gold Project. The Company exercised its rights under the royalty agreement to pre-empt an arms-length acquisition between the original property owner and an international royalty company for consideration of $0.7 million cash.\n<\/p>\n \nAfter close of the transaction, S\u00e9gu\u00e9la continues to have a 1.2% NSR held by another original property owner under similar terms including a right of first refusal and a right to acquire the remaining royalty for fair market value after a decision to mine has been made.\n<\/p>\n Exploration activities<\/span><\/p>\n\nExploration activities have continued to progress to delineate additional mineral resources within close proximity to Antenna. The current targets, including the recent discovery of Koula, along with the previously defined Agouti, Boulder and Ancien, are within 6 kilometres of the Antenna deposit (Figure 2).\n<\/p>\n \nSignificant progress was made on defining and extending mineralization at Koula with 4 RC\/diamond core rigs active throughout the last quarter of 2020, along with further support drilling for the upcoming Feasibility Study, and ongoing target generation auger and scout RC drilling.\n<\/p>\n Figure 2: S\u00e9gu\u00e9la deposits and satellite prospects<\/i><\/p>\n Koula<\/i><\/p>\n \nLocated approximately 1 kilometre to the east of Antenna, the high grade Koula deposit was discovered through field reconnaissance and coincident recent artisanal workings in an area previously considered to be a lower exploration priority.\n<\/p>\n \nDrilling throughout the quarter focused on advancing the high grade Koula project to its maiden Inferred Resource of 281,000oz at 8.1g\/t Au (refer to Company press release dated December 14, 2020<\/i>). Drilling has continued to return very high-grade results from infill drilling to 25m centres, designed to advance Koula to Indicated Resource and its inclusion in the forthcoming Feasibility Study.\n<\/p>\n \nDisplaying similar characteristics to those of Ancien in terms of host geology, mineralization style, high grade tenor and coarse visible gold, Koula remains open to the south with an interpreted southerly plunge remaining to be tested beyond the currently defined 500m down-plunge extent (Figure 3), with SGRD971 intersecting 14m at 4.3g\/t Au from 276m. Mineralization is hosted by quartz-carbonate veining associated with a well developed mylonitic fabric within and along the interpreted margins of a tholeiitic basalt which in turn has been tightly folded. Coarse gold is commonly recorded in the higher-grade zones.\n<\/p>\n \nHighlights of recent results include:\n<\/p>\n \n- \n12 metres (\u201cm\u201d) at 38.3 grams per tonne gold (\u201cg\/t Au\u201d) in drill hole SGRD1065 from 180m including<\/p>\n
\n- \n4m at 104.4 g\/t Au from 181m\n<\/li>\n<\/ul>\n<\/li>\n
- \n16m at 28.3 g\/t Au in drill hole SGRD1083 from 77m including<\/p>\n
\n- \n2m at 159.6 g\/t Au from 83m\n<\/li>\n<\/ul>\n<\/li>\n
- \n15m at 24.0 g\/t Au in drill hole SGRC1025 from 42m including<\/p>\n
\n- \n3m at 95.7 g\/t Au from 47m\n<\/li>\n<\/ul>\n<\/li>\n
- \n9m at 30.5 g\/t Au in drill hole SGRD1064 from 124m including<\/p>\n
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![\"Figure](\"https:\/\/mms.businesswire.com\/media\/20210303006002\/en\/863058\/4\/Figure_1_Yaramoko_regional_prospects.jpg\")
<\/p>\n