Avocet Mining PLC RBC Capital Markets 2011 African Gold Conference. June 2011

Transcription

1 Avocet Mining PLC RBC Capital Markets 2011 African Gold Conference June 2011

2 Corporate overview Largest shareholders o Elliott 13.0 % o Datum 12.2 % o BlackRock 10.0 % o JP Morgan 7.7 % Directors o Russell Edey, Chairman o Harald Arnet o Mike Donoghue o Robert Pilkington o Barry Rourke o Brett Richards, CEO o Mike Norris, Finance Director Exco o Brett Richards o Mike Norris o Peter Flindell o Richard Gray o Hans-Arne L orange DATA REBASED TO AVM SHARE PRICE Market statistics* OSE & AIM - AVM p Market capitalisation US$779.9 m Shares outstanding m Cash ( ) US$47.0 m Net debt ( ) US$25.0 m Enterprise value US$804.9 m Share price performance (12 months) AVOCET GOLD FTSE GOLD MINES INDEX * All figures as of , unless otherwise stated 2

3 Focused on West Africa Conditional sale of assets in Asia for US$200 million cash announced Dec o US$110 million placed in escrow account to date Inata gold mine in Burkina Faso o o 2010 production: 137,732 oz at US$531/oz 2011 guidance: 165,000 oz Burkina Faso: 200,000 m drilling programme in progress (DD/RC) o Targeting a doubling of Inata s reserves by the end of Q Guinea: 100,000 m drilling programme in progress (DD/RC) o Advancing Tri-K to start feasibility study by year end o Targeting 2 Moz Mineral Resource estimate in 2011 Guinea Tri-K (Koulékoun) (1.1 Moz) Producing asset Exploration asset Mali Bélahouro (0.6 Moz) INATA (2.1 Moz) Burkina Faso 100% Resources reported for each asset 3

4 Q summary Group Production Inata Production Financial performance SE Asia sale Exploration Total gold production of 71,708 ounces at a total cash cost of US$678/oz Compared with 70,857 ounces in Q at US$641/oz Inata production of 47,963 ounces at a cash cost of US$533 per ounce Compared with 46,208 ounces at US$511* per ounce in Q EBITDA of US$33.0 million in Q Up from US$29.7 million in the previous quarter Q SE Asia sale US$110m consideration received in escrow but outstanding pre-conditions remain to be satisfied Inata resource increased to 2.12 million ounces On target to double Inata reserves to c.1.8 million ounces by Q Q production: 44,877 ounces at US$735/oz Q production: 19,838 ounces Positive drilling results from Kodiéran and Koulékoun in Guinea * Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% Royalty rate from 2011: up to $1,000 Au price 3%; $1,000 to $1,300 Au price 4%; >$1,300 Au price 5% 4

5 Financial summary Cash and net debt Project finance facility Gold hedge Corporate facility Cash at bank of US$47.0 m 1 Net debt of US$25 m 1 US$65m project finance facility with Macquarie Bank Outstanding balance 1 : US$47m Repayment schedule of US$6m per quarter 324,193 oz, at an average US$970/oz 1 Hedge delivery schedule of ~25,000 oz per quarter - commenced Q US$25m corporate revolving credit facility with Standard Chartered Bank, fully drawn 1 As of 31 March

6 Q1 2011: financial highlights Period Quarter ended 31 March 2011 Unaudited Quarter ended 31 March 2010 Unaudited Quarter ended 31 December 2010 Unaudited Year ended 31 December 2010 Audited Total gold production (ounces) 71,708 44,877 70, ,396 Average realised gold price (US$/oz) 1,241 1,107 1,229 1,174 Cash production costs (US$/oz) EBITDA from continuing operations (US$000) 25,403 (4,148) 22,425 54,597 EBITDA from continuing and discontinued operations (US$000) 32,994 4,115 29,738 86,272 Profit before tax from continuing operations (US$000) 12,570 (4,143) 7,986 17,475 Profit/(loss) before tax (US$000) 20, ,145 33,549 Notes: Inata costs and revenues in the quarter to 31 March 2010, prior to the commencement of commercial mining operations, were capitalised. 19,838 ounces of gold poured in this period were however included in total gold production. EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an indication of underlying cash generation. 6

7 Conditional sale of South East Asian assets Announced 24 December 2010 o Completion expected in Q Binding agreement signed for conditional sale of all SE Asian assets to J&Partners o J&Partners is a mining fund established by the Indonesian family that sold Indonesia s 2nd largest mining contractor in November 2009 o Current focus is on gaining government approvals and satisfying other conditions precedent that remain Cash consideration of US$200m* o Initial consideration and second tranche received in escrow: US$110m o Final tranche (on completion): US$90m o Net proceeds estimated: US$170m * On a cash free, debt free basis, and subject to working capital adjustment 7

8 Operational review Burkina Faso Inata gold mine & Bélahouro district 8

9 Gold mining and exploration in Burkina Faso Mining code adopted in 2003 o 3-4 year tax holiday o 20% corporation tax o 3-5% royalty o 10% free carried interest Rapidly expanding mining sector o Only 1 gold mine operating in 2007 o 6 gold mines operational o Mines produced over 700,000 ounces in 2010 Mana (Semafo) 179,700 oz Inata (Avocet) 137,732 oz Kalsaka (Cluff) 74,000 oz Essakane (IAMGold) 135,900 oz Taparko (High River) 127,684 Over 20 listed gold producers and explorers operating in country Youga (Endeavour) 82,400 oz Prospective Birimian geology Gold deposit / resource Producing gold mine; number of ounces shown represent 2010 gold production 9

10 Inata: successful ramp-up completed Production statistics Q Q Ore mined (t) 618, ,000 Total movement (t) 5,291,000 5,007,000 Ore processed (t) 645, ,000 Average head grade (g/t) Gold recovery rate (%) 94% 94% Gold production 47,963 46,208 Cash costs (US$/oz) - mining processing royalties & overheads Total cash cost * Mining: o Inata North pit continues to contribute majority of ore to mill o Mining of Inata Central commenced in June 2010 ore production increasing throughout 2011 o In line with LoM plan, as mining advances deeper in the pits and harder host rock is encountered, more drilling and blasting has been required Processing: o Q1 average throughput of 318 tph - above 287 tph nameplate capacity o Plant expansion underway towards target of 340 tph Production and cash costs: o Higher royalty rate and increased reagent costs of explosives and cyanide compared with Q o Costs in the rest of the year are expected to increase due to an increase in explosives and cyanide usage, and fuel and reagent costs; but also as mining volumes rise (third fleet) due to a higher strip ratio Guidance: o Production: 165,000 oz (unchanged) o Inata Cash Costs: US$600-$650/oz (increase) * Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% Royalty rate from 2011: up to $1,000 Au price 3%; $1,000 to $1,300 Au price 4%; >$1,300 Au price 5% 10

11 Inata: expanding the orebody to the north Drilling results announced 7 February 2011 o 55,000 m of drilling completed o Assays received from 28,579 m of drilling, testing northern extensions of resource at Inata North and Sayouba, as well as mineralisation below the current 1.84 Moz resource o Near surface intercepts are broader than indicated by previous wide-spaced exploration drill holes and of similar gold grade Inata Central Inata South Inata North Plant site Sayouba Inata North highlights: g/t Au from 93 m o incl g/t Au g/t Au from 146 m o incl g/t Au Sayouba highlights: g/t Au from 31 m g/t Au from 81 m g/t Au from 158 m o incl g/t Au g/t Au from 125 m o incl g/t Au 11

12 Bélahouro: VTEM survey results Oka Gakinde N WESTERN DOMAIN CENTRAL DOMAIN EASTERN DOMAIN 5km Kourfadie Dynamite Damba INATA Gomde Barrage Gomde Barrage Miilam Gassel Garafo Fete Kole Pali Key: Priority drilling target Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology 12

13 Inata: encouraging exploration results in Q1 Further positive drilling results for the quarter at Sayouba, Minfo and extensions to the existing Inata North pit, including: o g/t Au from 93 m o incl g/t Au o g/t Au from 146 m o incl g/t Au o g/t Au from 31 m Inata Mineral Resource increased during Q1 to 2.12 Moz o Including the 0.56 Moz resource at Souma, the Mineral Resource across the Bélahouro district now stands at 2.68 Moz 200,000 m drilling campaign continues throughout

14 VTEM: targets in Western Domain Multiple untested conductive units west of Inata, highlighted by VTEM survey Different geological setting to Eastern Domain o Folded conductive units (carbonaceous shale) surrounding ovoid conductive lows (granites) o Gold associated with folded carbonaceous shale N 3km Kourfadie Targets include: o Along-strike extensions to Inata o VTEM highlights multiple untested conductive units west of Inata Damba INATA MINING LICENCE Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology Pali Minfo Filio 14

15 Bélahouro: growing resources and reserves Programmes Jan 11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 12 RC/DD Drilling Inata mining licence D D D/R D R D R Filio D D D D/R Other Western Domain D Souma Trend RAB Drilling Filio Permit Damba Permit D D Key: Period of exploration activity R = resource model report; D = drilling results 15

16 Operational review Guinea Tri-K, Balandougou, Kankan & Kolenda 16

17 Guinea the golden Siguiri Basin Severstal (Lefa 5.9 Moz Au) Anglogold Ashanti (Siguiri 5.6 Moz Au) Cassidy (Kouroussa 1.0 Moz Au) Kolenda Balandougou Avocet (Koulékoun 1.1 Moz Au) Kankan Tri-K Permits 50km Conakry SEMAFO (Kiniero 0.9 Moz Au) Burey Gold (Mansounia 0.8 Moz Au) Birimian geology Wega Mining Guinée permits Deposit size (production + resource) Untapped mineral potential o Two +5Moz Au deposits o Three ~1Moz Au deposits o Extensive under-explored Birimian geology o Two strongly mineralised belts extend from Mali 17

18 Tri-K: 2 million ounce target in 2011 Tri-K comprises three main licences: Koulékoun, Kodiéran and Kodiafaran Drilling of existing targets underway: o Goals of increasing Koulékoun resource and establishing a maiden resource at Kodiéran o 48,000m RC drilling o 19,000m diamond drilling o Advancing Koulékoun towards feasibility study in 2011 VTEM survey scheduled for H o Key stage in identifying new drill targets in largely under-explored region Kodiéran 1A g/t Au g/t Au Currently drilling Other programmes in Guinea: Kodiéran 2A o Balandougou mapping & RAB drilling o Kolenda & Kankan trenching & RAB drilling N Koulékoun 1.1 million ounces Currently drilling Kodiéran 1B 2 km long orpaillage Drilling planned in Q4 5km Kodiafaran 18

19 Guinea: focussed on Tri-K Forowa Dimbala (unsampled) Koulékoun Current resource: Indicated: 1.55 g/t Au Inferred: 1.49 g/t Au Marina (unsampled) Kodiafaran Tri-K Permits Gold in Termite Mounds Kodiéran g/t Au from 85 m o (incl g/t Au) g/t Au from 63 m o (incl g/t Au) g/t Au from 101 m o (incl g/t Au) 2km > 300 ppb Au ppb Au ppb Au ppb Au Tri-K consists of the Koulékoun, Kodiéran and Kodiafaran licences o 100% owned by the Company Q1 activities: o Highly promising drilling results for Kodiéran announced in February 2011 o Early results from drilling at Koulékoun, results released March 2011, indicated that the ore body is less fragmented, as well as extending deeper than had been originally thought o VTEM survey conducted during the period results now being analysed and will be used to define drill targets in all 3 areas 100,000 metre drilling campaign in Guinea continues at 4 projects o 67,000 metres planned for Tri-K licences Resource target in 2011: 2 million ounces 19

20 Tri-K increasing momentum at Koulékoun Assays from first two drill holes highlight Koulékoun s potential Highlights include: o g/t Au from 94 m o g/t Au from 277 m Results indicate: o Main zone of porphyry-hosted mineralisation continues to depth with width o General tenor of mineralisation remains in the 2 to 5 g/t Au range Initial results also highlights previously unknown zone of mineralisation in host rock 67,000 metre drilling programme planned for

21 Tri-K encouraging drill results at Kodiéran Initial drilling results from exploration at Kodiéran o Kodiéran located within the southern section of the Tri-K project o 100% owned o Geophysical contact extending over 3 km in length o Prospect initially drilled in 2008, prior to construction commencing at Inata Drilling highlights include: o g/t Au from 85 m (incl g/t Au) o g/t Au from 63 m o g/t Au from 101 m Represents first 4,003 m of wider 100,000 m program remaining in Guinea for 2011 o Further drilling planned across Tri-K and Balandougou 21

22 Guinea: accelerating resource growth Programmes Jan 11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 12 RC/DD Drilling Koulékoun D D/R R D D/R Kodiéran D R D/R Balandougou D D R D/R RAB Drilling Tri-K Permits Other Targets D D Key: Period of exploration activity R = resource model report; D = drilling results 22

23 Exploration and development pipeline Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development Inata Souma Damba Filio Koulékoun Kodiéran Legend N Tjila Balandougou Burkina Faso Guinea Mali Bubble size reflects current resource estimate 23

24 Exploration and development - targets Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development Inata Damba Souma Koulékoun Filio Kodiéran N Tjila Balandougou Legend Burkina Faso Guinea Mali Bubble size reflects current target resource 24

25 Gold mining in West Africa Senegal Mauritania Mali Burkina Faso Niger Country Birimian Geology (km 2 ) Gold Resources (Moz) Ghana 45, Mali 124, Guinea 27, Guinea Burkina Faso 60, Cote d Ivoire 113,000 8 Côte d Ivoire Ghana Senegal 6,000 3 Source: Company data Resource data as of 2008 Approx. outline of Birimian Greenstone Belt Inata Mine Avocet Mining-owned exploration project 25

26 Birimian Prospectivity 140 Highly developed Gold Endowment (Moz) Senegal Niger Guinea Mali Ghana Burkina Faso 0 20,000 40,000 60,000 80, , , ,000 Area of Birimian geology (km 2 ) Cote d Ivoire Under explored 26

27 Strategic direction and outlook Maximising value from South East Asian assets Conditional sale announced 24 December 2010 Cash consideration of US$200 million upon completion US$110 million received in escrow to date Completion expected in Q Realising and growing the potential of Inata Resources and reserves updated in Q On track for target of doubling Inata reserves by Q Increase in plant capacity announced Accelerated organic growth in West Africa Ready and prepared to act on value adding acquisitions News flow in ,000 m drilling in and around Inata mining licence Early results to expand resource at depth and along strike Drilling commenced at Tri-K & Balandougou Initial results at Koulékoun & Kodiéran released Q Rise in cash from sale of Asian assets will leave Avocet in a potentially strong position Continued review of M&A landscape in West Africa Completion of sale of South East Asian assets (Q2) Resource and reserve reports at Inata (Q3), Koulékoun (Q3) and Balandougou (Q3) Start of Tri-K feasibility study (Q4) 27

28 Avocet Mining PLC 28

29 Appendices 29

30 Cautionary note DISCLAIMER This Presentation is for information purposes in connection with the Avocet Mining PLC s (the Company s ) preliminary results presentation only. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. This Presentation may contain forward-looking statements regarding Avocet Mining PLC and its subsidiaries. These statements are based on various assumptions made by the Company, which are beyond its control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as may, will, could, should, expect, plan, intend, anticipate, believe, estimate, predict, potential or continue, the negative of such terms or other comparable terminology. These forward looking statements are only predictions. Actual events or results may differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, such as filings made with the Oslo Stock Exchange or press releases. This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed in or sent into any jurisdiction where such distribution may be unlawful. United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation. 30

31 Board of Directors and senior management Board of Directors Exco R P Edey Non-executive chairman Brett Richards CEO Appointed to the Board in July He retired as Chairman of AngloGold Ashanti Ltd in May 2010 having been a member of the board since Nonexecutive Director of Old Mutual PLC and several companies in the Rothschild Group. He took over as Chairman of Avocet in September Brett was appointed CEO of the Company in July 2010, and brings significant experience working in Africa and developing larger mining companies that will be invaluable in realising Avocet s potential. Brett is a HR and operations executive with previous experience at Katanga Mining Limited, Kinross and Co-Steel Inc. Richard Gray EVP Operations West Africa Richard joined Avocet in June 2009 following the acquisition of Wega Mining. He has had a successful career in developing mining companies, including 15 years working in South Africa for Gencor Ltd, and 10 years in West Africa for Golden Star Resources Ltd. Mike Norris Finance Director Finance Director since July 2007 having previously been CFO since February Chartered accountant at Coopers & Lybrand before holding senior financial and operational roles at Rio Tinto PLC and Anglo American PLC. H Arnet Non-executive Director The Chief Executive Officer of Datum AS, Avocet's second largest shareholder. Mr. Arnet previously held the position of Senior Vice President, Corporate Finance, Norway for Svenska Handelsbanken Peter Flindell EVP Exploration Peter is a geologist with over 20 years experience in gold and copper exploration, resource evaluation and reserve development in South East Asia, Central Asia and North America. He joined the Group as Chief Geologist in May 2002 following 12 years with Newmont Mining Corporation. R A Pilkington Non-executive Director Managing Director of UBS Investment Bank and also a director of ASA Limited, an investment trust investing principally in South African gold mining companies. M J Donoghue Non-executive Director B J W Rourke Non-executive director A mining engineer with over 30 years experience in mining operations and new mine developments in Africa, Australia, South East Asia and Europe. Appointed in July He served as a Partner at PricewaterhouseCoopers for 17 years, acting as an advisor and auditor for several large and medium-sized businesses in both the public and private sector before retiring in He is also Chairman of the Audit Committee. Hans-Arne L orange EVP Business Development & Investor Relations Hans-Arne joined Avocet in June 2009 following the acquisition of Wega Mining. Previously he was Acting CEO of Wega Mining, having joined from Vyke Communications Plc, where he served as CEO. Prior to that position, he was CEO of Birdstep Technologies, Inc. 31

32 Operational review South East Asia Penjom and North Lanut 32

33 South East Asia Combined gold production of 23,745 oz in Q Penjom Q1 production of 11,597 oz at cash cost of US$1,194/oz o Low ore tonnes mined o Heavy rainfall in January and reduced fleet availability North Lanut Q1 production of 12,148 oz at cash cost of US$759/oz o Recoveries and costs affected by high rainfall and increased reagent usage to counteract the dilutive effect of rainfall on leach solution Production guidance o Q guidance of approximately 20,000 oz for South East Asian operations due to temporary labour disruption at North Lanut Q Production statistics Penjom North Lanut Ore mined (t) 80, ,000 Total movement (t) 3,366, ,000 Ore processed (t) 187, ,000 Average head grade (g/t) Gold recovery rate (%) 84% 50% Gold production 11,597 12,148 Cash costs (US$/oz) - mining processing royalties & overheads Total cash cost 1,

34 Financial results 1 st Quarter

35 Income statement Q Three months ended Three months ended 31-Mar Mar-10 US$ million Continuing Discontinued Group Continuing Discontinued Group Revenue Cash costs (25.6) (23.1) (48.7) - (18.4) (18.4) Changes in inventory (1.0) 0.1 (0.9) Other cost of sales (1.5) (1.4) (2.9) (0.9) (1.6) (2.5) Admin (1.9) - (1.9) (1.7) - (1.7) Share based payments (0.4) - (0.4) (1.6) - (1.6) EBITDA (4.2) Depreciation (11.2) - (11.2) - (4.1) (4.1) Net finance costs (1.6) 0.1 (1.5) Profit before tax (4.1) Tax (2.6) (1.3) (3.9) 1.2 (0.1) 1.1 Profit after tax (2.9) Financial results in Q reflect strong quarter from Inata Inata results in Q were capitalised as the mine had not reached commercial production Other cost of sales reflects exploration expensed in each period Group EBITDA of US$33.0m mainly reflects Inata EBITDA of US$27.8m IFRS requires that South East Asia operations be disclosed separately as Discontinued Operations on the basis that sale is probable 35

36 Group Reserves and Resources AVOCET GROUP Mineral Reserves Gross Net attributable Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces -Proven 13,239, ,000 11,833, ,300 -Probable 10,111, ,600 9,497, ,060 - Reserves subtotal 23,350, ,561,600 21,331, ,433,360 Mineral Resources* -Measured 34,030, ,561,700 22,204, ,021,900 -Indicated 57,410, ,680,200 56,751, ,591,780 -Measured + Indicated 91,440, ,241,900 78,955, ,613,680 -Inferred 59,560, ,646,600 44,552, ,142,160 - Resources subtotal 151,000, ,888, ,507, ,755,840 * Mineral Resources include Reserves. Note: the above figures are rounded up/down where appropriate. Dates for reserve and resource estimates are outlined in the following slides 36

37 Cash flow US$ million Q Q Continuing Discontinued Group Continuing Discontinued Group EBITDA (4.2) Working capital 1.0 (1.5) (0.5) (9.9) (5.0) (14.9) Share based payments Provision/other Operating cash flow (12.5) 4.3 (8.2) Interest (0.7) - (0.7) (0.9) - (0.9) Tax - (2.2) (2.2) - (0.4) (0.4) Capex (13.8) (0.6) (14.4) 1.0 (1.0) - Exploration (10.0) (1.5) (11.5) (0.5) (1.1) (1.6) Loan repayment (6.0) - (6.0) Other - (1.0) (1.0) (0.5) - (0.5) Intercompany (10.6) - Reclassify cash 1.2 (1.2) Net cash flow (2.6) - (2.6) (2.8) (8.8) (11.6) Opening cash Closing cash Significant operating cash flow from Inata in Q1 2011, compared with Inata inventory build up in Q capex at Inata plant enhancements and deposits for third fleet 2010 capex at Inata construction and commissioning costs, net of capitalised revenue in testing phase 2011 exploration expenditure focused on Bélahouro and Guinea in West Africa US$6m repayment of Macquarie project finance facility in 2011 Q repayment of intercompany loans from the South East Asia group South East Asia cash balances are reclassified as part of Group cash 37

38 Cash costs and realised prices Q1 Q1 Q2 Q3 Q4 Total Production Inata 47,963 19,838 31,225 40,461 46, ,732 North Lanut 12,148 11,370 11,184 12,311 12,715 47,580 Penjom 11,597 13,669 10,461 15,020 11,934 51,084 TOTAL 71,708 44,877 52,870 67,792 70, ,396 Cash costs Inata North Lanut Penjom 1, , , TOTAL Group realised gold price 1, ,107 1,203 1, , ,174 1 Inata costs and revenues in the quarter to 31 March 2010, prior to the commencement of commercial mining operations, were capitalised. 19,838 ounces of gold poured in this period were however included in total gold production. 2 Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% royalty rate from 2011: up to $1,000 Au price 3%; $1,000 to $1,300 Au price 4%; >$1,300 Au price 5% 3 Reflects 24,608, 26,135 and 25,064 ounces delivered into the Inata hedge in Q1 2011, Q and Q respectively at US$970/oz 38

39 Burkina Faso Reserves and Resources INATA & BELAHOURO Mineral Reserves Gross Net attributable Tonnes Grade (g/t) Contained Ounces Tonnes (Mt) Grade (g/t) Contained Ounces -Proven 9,905, ,900 8,914, ,500 -Probable 5,536, ,400 4,982, ,300 - Reserves subtotal 15,441, ,045,300 13,896, ,800 Mineral Resources* -Measured 20,077, ,034,400 10,789, ,100 -Indicated 10,910, ,200 11,604, ,500 -Measured + Indicated 30,987, ,516,600 22,393, ,024,600 -Inferred 21,560, ,164,500 18,223, ,102,600 - Resources subtotal 52,547, ,681,100 40,616, ,127,200 * Mineral Resources include Reserves. Reserves and resources as at 31 December 2010 (Reserves were calculated at a 0.7 g/t Au cut-off and a stock pile is developed for all low grade ore ( g/t Au) that will be processed towards the end of the mine s life.) Note: the above figures are rounded up/down where appropriate. 39

40 Guinea Reserves and Resources TRI-K (KOULEKOUN) Mineral Reserves Gross Net attributable (100%) Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces -Proven -Probable - Reserves subtotal Mineral Resources* -Measured Indicated 22,300, ,040,000 22,300, ,040,000 -Measured + Indicated 22,300, ,040,000 22,300, ,040,000 -Inferred 900, , , ,000 - Resources subtotal 23,200, ,100,000 23,200, ,100,000 * Resources as at 31 December 2010 Note: the above figures are rounded up/down where appropriate. 40

41 South East Asia Reserves and Resources SOUTH EAST ASIA Mineral Reserves Gross Tonnes Grade (g/t) Contained Ounces Tonnes Net attributable Grade (g/t) Contained Ounces -Proven 3,334, ,100 2,919, ,800 -Probable 4,575, ,200 4,515, ,760 - Reserves subtotal 7,909, ,300 7,434, ,560 Mineral Resources* -Measured 13,953, ,300 11,414, ,800 -Indicated 24,200, ,158,000 22,847, ,116,280 -Measured + Indicated 38,153, ,685,300 34,262, ,549,080 -Inferred 37,100, ,422,100 25,429, ,560 - Resources subtotal 75,253, ,107,400 59,691, ,528,640 * Mineral Resources include Reserves. Reserves and resources as at 31 December 2010 Note: the above figures are rounded up/down where appropriate. 41