17 th January 2013 LSE: ABG Fourth Quarter Report for the three months ended 31 December 2012 Based on IFRS and expressed in US Dollars (US$) African Barrick Gold plc ( ABG ) reports fourth quarter production results Gold production of 180,684 ounces in the fourth quarter, up 13% Y-on-Y and 22% Q-on-Q Highlights Fourth quarter gold production of 180,684 ounces and gold sales of 159,585 ounces o Production increased 13% over the prior year period and 22% over the third quarter due to improved throughput at Buzwagi and increased head grade at both North Mara and Buzwagi, partially offset by lower grade at Bulyanhulu o As a result of production weighted towards the back end of the quarter, gold sales were flat compared to Q4 2011 Attributable production for the full year was 626,212 ounces (Group production of 639,510 ounces 1 ), 9% lower than 2011 with attributable gold sales for the full year of 609,252 ounces (Group sales of 622,932 ounces 1 ), 13% lower than 2011 Full year cash costs per ounce sold 2 are expected to be in line with guidance of US$900 - US$950 per ounce, at the top end of the range The average realised price of US$1,700 per ounce over the quarter and US$1,668 per ounce for the full year were 3% and 5% higher than the prior year comparisons Renewal of the North Mara Special Mining Licences on the existing terms and conditions and for a 15 year period Exploration programme initiated following acquisition of interests in highly prospective exploration licences in Kenya Post period end, talks between our majority shareholder Barrick Gold Corporation ( Barrick ) and China National Gold Group Corporation ( CNG ) ended Operational Review initiated to drive improved returns and free cash flow generation from the existing asset base African Barrick Gold plc Three months ended Twelve months ended % change 2012 2011 % change (Unaudited) 2012 2011 Operating results Tonnes mined (thousands of tonnes) 13,942 10,546 32% 48,301 45,053 7% Ore tonnes processed (thousands of tonnes) 2,067 1,729 20% 7,698 7,409 4% Recovery rate (percent) 90.0% 87.3% 3% 88.3% 87.7% 1% Average grade (grams per tonne) 3.0 3.3-9% 2.9 3.3-12% Attributable gold production (ounces) 1 180,684 160,020 13% 626,212 688,278-9% Attributable gold sold (ounces) 1 159,585 158,869 0% 609,252 699,539-13% Average realised gold price per ounce sold ($) 2 1,700 1,655 3% 1,668 1,587 5% Copper production (thousands of pounds) 4,266 2,889 48% 12,875 14,875-13% 1 Group production and sold ounces consolidate 100% of Tulawaka s production base. Attributable production and sold ounces reflect equity ounces which exclude 30% of Tulawaka s production base. 2 Cash cost and average realised gold price per ounce sold are non-ifrs financial performance measures with no standard meaning under IFRS. Refer to Non-IFRS measures on page 8 for each definition. Commenting on the results, CEO Greg Hawkins said: We are pleased to deliver a significant step up in production in the fourth quarter in line with our expectations. The performance of Buzwagi is particularly satisfying and our focus is now on maintaining the improvement in virtually all of its operating metrics. North Mara delivered the expected increase in production as we accessed additional higher grade material. Bulyanhulu was below plan over the quarter and we are addressing the issues. Beyond the production figures, over the last twelve months we have made considerable progress in strengthening the business through the renewal of mining licences and signing of the village benefit implementation agreements at North Mara, and the acquisition of exciting early stage exploration licences in Kenya. With the performance in 2012 as the base going into 2013, we are undertaking a full Operational Review to ensure the business has the optimum production and cost profile for the operating environment we are in, so that we can drive returns and free cash flow generation. 1 LSE: ABG
For further information, please visit our website: www.africanbarrickgold.com or contact: African Barrick Gold plc +44 207 129 7150 Greg Hawkins, CEO Andrew Wray, Head of Corporate Development & Investor Relations Giles Blackham, Investor Relations Manager RLM Finsbury +44 207 251 3801 Faeth Birch Charles Chichester About ABG ABG is Tanzania s largest gold producer and one of the five largest gold producers in Africa. We have four producing mines, all located in North West Tanzania, and several exploration projects at various stages of development. We have a high-quality asset base, solid growth opportunities and a clear strategy. We aim to achieve this by: driving operating efficiencies to optimise production from our existing asset base; growing through near mine expansion and development of advanced-stage projects; and organic greenfield growth and acquisitions in Africa. Maintaining our licence to operate through acting responsibly in relation to our people, the environment and the communities in which we operate is central to achieving our objectives. ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement. Conference call A conference call will be held for analysts and investors on 17 January 2013 at 09.00 London time. A dial in facility will be available as follows: Participant dial in: +44 (0) 203 003 2666 / +1 866 966 5335 Password: ABG There will be a replay facility available until 24 January 2013. Access details are as follows: Replay number: +44 (0) 208 196 1998 Replay PIN: 4867535# FORWARD LOOKING STATEMENT This report includes forward-looking statements that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words plans, expects, anticipates, believes, intends, estimates and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained in this report. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation in countries in which ABG conducts or may in the future conduct business, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG s ability to successfully integrate acquisitions, ABG s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to process its mineral reserves successfully and in a timely manner, risk of trespass, theft and vandalism, changes in its business strategy, as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Although ABG s management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward looking statements contained in this report. Any forward-looking statements in this report only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this report, whether as a result of new information, future events or otherwise. Nothing in this report should be construed as a profit forecast or estimate and no statement made should be interpreted to mean that ABG s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG. 2 LSE: ABG
Operating update for the three months ended 31 December 2012 Attributable gold production for the quarter totalled 180,684 ounces, a 22% increase on the third quarter and a 13% increase on the corresponding quarter of 2011. Increased production was primarily driven by improved plant performance at Buzwagi together with increased grade at North Mara and Buzwagi, which was in part offset by lower ounces produced from Bulyanhulu and Tulawaka. The improved performance at Buzwagi was evident in both the continuing step up in mining activities, with 27% more tonnes mined compared to the prior year period, and also the impact of a range of operational improvement initiatives in the process plant. This resulted in a 65% increase in tonnes milled versus the prior year period, as well as a 20% improvement on the previous quarter. During the quarter the process plant averaged close to its nameplate capacity of 12,000 tonnes per day. This was also accompanied by further improvements in recoveries, which averaged over 90%. At North Mara, as expected given the significant waste stripping focus earlier in the year, mining increased from the higher grade zones in the Gokona pit which saw an increase in ore tonnes mined. Bulyanhulu continued to see the impact of lower than planned paste fill delivery, which limited access to higher grade stopes, as well as staffing shortages caused by resignations owing to potential Tanzanian pension regulation changes. Tulawaka continued to see lower production compared to the previous year as a result of the batch milling campaign following the exhaustion of surface stockpiles earlier in 2012. Gold ounces sold for the quarter were 159,585 which was in line with the corresponding quarter of 2011. Gold ounces sold were 12% lower than gold produced as a result of production being weighted towards the back end of the quarter. These ounces will be sold during January 2013. Tonnes mined for the quarter were 13.9 million compared to 10.5 million in the corresponding quarter of 2011. The increase was primarily driven by increased tonnes at Buzwagi and North Mara. The increase at Buzwagi was driven by improved equipment availabilities whilst North Mara continued to focus on waste stripping and also benefitted from lower illegal mining intrusions. Tonnes processed in the fourth quarter of 2.1 million tonnes were 20% higher than the corresponding quarter of 2011. The increase was due to the plant operating efficiency improvements at Buzwagi. The average grade processed for the quarter was 3.0 grams per tonne which was 9% lower than the prior year period. The decrease in grade was predominantly due to Bulyanhulu and Tulawaka and was in part offset by increased grade at North Mara. Copper production for the quarter was 4.3 million pounds, 48% higher than the prior year period, mainly driven by the increase in throughput and copper grades at Buzwagi when compared to Q4 2011. For the full year, production of 626,212 ounces represented a 9% decline on the prior year period. Gold sales for the full year were below production at 609,252 ounces due to the back-ended nature of the production in the quarter. The net cash position as at 31 December 2012 amounted to approximately US$400 million. The average realised gold price amounted to US$1,700 per ounce for the fourth quarter while it averaged US$1,668 per ounce for the full year. These represented increases of 3% and 5% respectively, compared to the prior year periods. It is with great regret that we report an underground incident in December at Tulawaka that claimed the life of one of our underground employees. We are in the process of carrying out a thorough investigation into the incident and will take the appropriate actions to prevent such incidents in the future. Exploration and Development Update During the quarter ABG completed the acquisition of Aviva Mining (Kenya) Ltd ( AMKL ) from Aviva Corporation. The completion of the deal brings approximately 2,800 square kilometres of exploration ground and more than 20 existing targets from grassroots through to the drill testing stage into the exploration and development pipeline. ABG expects to complete a comprehensive initial exploration programme during 2013 to further develop the high quality portfolio of targets at all stages of the pipeline, advancing the most promising targets as a priority. Exploration and development programmes during the fourth quarter of the year continued to be successful, especially at our North Mara and Bulyanhulu projects in Tanzania where drilling continued to deliver positive results, and at the Ramula prospect in Kenya, where multiple zones of higher-grade mineralisation have been encountered in the limited drilling to date. Tanzania Bulyanhulu Carbon in Leach ( CIL ) Circuit Expansion The CIL expansion has been progressing according to plan, with commissioning on track for 2014. An EPC contract has now been signed with MDM Engineering in order to manage the project. Detailed engineering design is now at 85% completion, with all major equipment procured and contractors commencing the fabrication of the structural steel and plate work. The earthworks contractor has mobilised to site and is in the process of setting up a construction camp. All approvals for the construction of the CIL expansion have been granted, and the Environmental and Social Impact Assessment for the life of mine tailings storage facility has been submitted to the Tanzanian Government. Project financing discussions are close to completion for the provision of an export credit facility. 3 LSE: ABG
Bulyanhulu Upper East The feasibility study for the combined mining of Reef 1 and Reef 2 is on track for completion at the end of Q1 2013, as previously communicated, and the aim is to present the project to the ABG Board for final approval in early Q2 2013. Development equipment has been procured and is expected to arrive on site at the end of the second quarter and tenders for the contract mining appointment are underway in order to meet that timeline. In tandem with the feasibility work, infill drilling of Reef 2 and extension diamond core drilling on the Upper East part of the ore body was completed during the quarter with 1,439 metres drilled in the quarter. Results received to date from the drilling are in line with the grades and widths historically encountered in this area of the Reef 2 resource with selected results including: BGMRCDD0020: 0.84m at 15.6g/t Au from 223m BGMRCDD0037: 5.96m at 10.7g/t from 458m BGMRCDD0038: 4.3m at 11.6g/t Au from 394m (including 1.0m at 40.0g/t Au) from 396m BGMRCDD0042: 1.3m at 13.6g/t Au from 286m BGMRCDD0049: 1.0m at 29.5g/t Au from 211m The current phase of drilling on the Reef 2 Upper East resource area is now complete and a revised resource/reserve estimate is underway to determine the impact of the recent drilling, and to investigate areas requiring additional phases of drilling to further increase resources in this area. North Mara - Gokona Underground The first phase of a significant resource drill-out programme beneath the planned Gokona and Nyabigena open pits was completed during H1 2012. A revised underground resource incorporating the drilling results will be released with our preliminary results in mid-february. Based on the positive results from exploration and infill drilling which show the system remains open and robust in terms of grade at depth, it is anticipated further deep drilling is warranted and could expand the underground resources in the future. The trade-off analysis to determine the optimal way of integrating the underground and surface resources at Gokona in order to maximise the life of mine return at North Mara remains ongoing. This process is expected to be complete within the first quarter of 2013 at which point the existing feasibility study will be updated. North Mara - Nyabirama Resource Definition and Nyabirama West Extension Drilling The Nyabirama programme is aimed at defining underground potential from areas previously not able to be drilled from the open pit or during early exploration drilling, and testing for extensions of mineralisation to the west of the current open pit. The programme was completed in Q4 2012 with a total of 7,526 metres drilled in the quarter. Assay results received during the quarter continued to confirm the current resource interpretation, intersecting multiple highgrade gold zones within a broader 1 gram per tonne of gold mineralised envelope, with selected better results including: NBRD032W1: 5m at 8.3g/t Au from 358m and 2m at 7.17g/t Au from 380m NBD096: 2m at 11.8g/t Au from 200m, and NBD098: 6m at 10.8g/t Au from 256m The 2012 drilling results will now be incorporated into an updated resource model for open pit and underground scenarios. Nyanzaga In Q4 2012, the focus at Nyanzaga was on advancing the pre-feasibility study. The study is progressing well and expected to be completed by the end of Q1 2013, at which point a decision will be made on whether to move into a full feasibility study. The main focus areas of the pre-feasibility study are the optimisation of operating and capital costs during the early part of the life of mine. Kenya During Q4 2012, exploration activities focused on commencing a full assessment of historical data through from regional geochemical surveys to more advanced drilling. ABG plans to complete an extensive review of all targets over the coming six months in order to prioritise and rank the best targets on the project, while at the same time completing regional mapping programmes, geochemical and geophysical surveys, and reconnaissance drilling to identify further new targets. In parallel with this, we plan to continue diamond core drilling of high potential targets and known gold prospects in order to move targets up our exploration pipeline towards resource development. 4 LSE: ABG
Ramula At the Ramula prospect, which is located in the central part of the West Kenya JV Project, we are targeting a gold in soil anomaly associated with a magnetic anomaly in the aeromagnetics. Drilling intersected a large anomalous gold zone with narrower high-grade zones associated stacked quartz veins containing visible gold. Mineralisation identified to date occurs associated with silica-sericite-pyrite altered magnetic granodiorite intrusion. All results for the ANRDD001 to ANRDD003 diamond core drill programme have now been received, with the best results encountered in hole ANRDD003 including: 3.2m at 3.0g/t Au from 44m 3.3m at 12.5g/t Au from 53m 8.5m at 4.6g/t Au from 178m 4.7m at 7.4g/t Au, and 4.1m at 10.4g/t Au from 252m The diamond core rig returned to Ramula in early December to commence a fourteen hole diamond core programme that will scope out the continuity and size of the mineralised system. A second drill rig capable of deeper diamond core drilling is also currently being mobilised to site in order scope out the depth potential for additional mineralised veins at depths below 200 metres vertical. Of note is the fact that the density and width of quartz veins appeared to be increasing with depth. Post Period Events ABG announced on the 8 January 2013 that Barrick had ended discussions with CNG over the potential sale of its 73.9% stake in ABG. As a result, ABG is no longer in an offer period under the Takeover Code. As previously announced, management has initiated a full Operational Review with the aim of recalibrating operations so as to drive improved returns from the asset base whilst enhancing the certainty of delivery. We will provide further detail on specific initiatives at the time of the preliminary results in mid-february with regular updates thereafter. 5 LSE: ABG
Mine site summary Bulyanhulu Three months ended Twelve months ended (Unaudited) 2012 2011 2012 2011 Underground ore tonnes hoisted Kt 214 254 959 1,048 Ore milled Kt 230 241 1,012 1,056 Head grade g/t 7.2 9.1 8.0 8.5 Mill recovery % 89.8% 91.5% 90.6% 91.2% Ounces produced oz 47,684 64,433 236,183 262,034 Ounces sold oz 46,306 65,132 235,410 269,981 Copper production 000lbs 1,206 1,617 6,102 7,675 Copper sold 000lbs 1,293 1,786 5,895 7,716 Gold production at Bulyanhulu for the quarter was 47,684 ounces, 26% lower than the prior year period. The lower production was primarily due to lower grade and lower ore tonnes hoisted as a result of paste fill delays and lower than plan availability of high grade stopes continuing through the quarter. Paste delivery is expected to improve in the first quarter as further paste lines to the underground are completed, improving access to higher grade stopes. Gold ounces sold for the quarter of 46,306 were broadly in line with production. Progress at the mine has been further hindered by potential changes to Tanzanian pension legislation which has led to significant numbers of long serving Tanzanian employees resigning. These included a number of skilled underground mining personnel as well as maintenance staff dealing with improving mobile equipment availabilities. Whilst high turnover is a feature of the industry, the uncertainty resulting from the offer process has impacted our ability to attract suitable replacements. With the end of the offer period we are now actively hiring as well as rotating staff from elsewhere in our operations, in order to minimise further impacts in 2013. For the full year 2012, gold production at Bulyanhulu was 10% lower than the prior year mainly due to lower head grade as a result of paste fill delays and lower than plan availability of high grade stopes which was further negatively impacted by lower equipment availabilities. Gold ounces sold for the year of 235,410 ounces were 13% below that of the prior year primarily due to the lower production base. Copper production in the fourth quarter of 1.2 million pounds was 25% lower than that of the same period in 2011 driven by the mining of areas with lower copper grade and lower recoveries. For the full year, copper production of 6.1 million pounds was 20% lower than the prior year s production of 7.7 million for the reason outlined above. Buzwagi Three months ended Twelve months ended (Unaudited) 2012 2011 2012 2011 Tonnes mined Kt 7,907 6,205 28,563 21,534 Ore tonnes mined Kt 1,325 797 4,233 3,545 Ore milled Kt 1,062 642 3,715 2,993 Head grade g/t 2.1 2.1 1.6 2.3 Mill recovery % 90.9% 87.4% 87.3% 88.0% Ounces produced oz 64,828 37,916 165,770 196,541 Ounces sold oz 51,264 38,547 155,322 200,518 Copper production 000lbs 3,059 1,272 6,773 7,201 Copper sold 000lbs 1,945 1,438 5,628 7,353 Gold production at Buzwagi for the quarter was 64,828 ounces, 71% higher than the prior year period and 115% higher than the previous quarter. As planned Buzwagi accessed higher grade zones in the open pit during the quarter, leading to an increase in grade compared to the previous quarter and in line with that of the prior year period. The higher production for the quarter was primarily driven by the increase in ore tonnes milled and improved recoveries due to improved plant operational availability and efficiencies. We have also seen a marked improvement in the tonnes mined during the second half of the year as a result of improved equipment availabilities, which is reflected by the 38% increase in total tonnes mined, compared to the first half of the year, and a 33% increase for the full year compared to 2011. Gold ounces sold during the quarter amounted to 51,264 ounces, 21% below production but 33% higher than the prior year period. The sales ounces shortfall is a result of the timing of sales due to the back-ended nature of production in the quarter. Gold production for the full year of 165,770 was 16% below the prior year period as a result of the expected decline in head grade partially offset by the significant increase in ore tonnes mined and milled. Gold ounces sold for the year amounted to 155,322 ounces, 23% below that of the prior year period. This was primarily due to the lower production base and timing of sales during the fourth quarter. Copper production in the fourth quarter of 3.1 million pounds was 140% higher than that of the same period in 2011 driven by increased throughput and copper grade. 6 LSE: ABG
North Mara Three months ended Twelve months ended (Unaudited) 2012 2011 2012 2011 Tonnes mined Kt 5,788 3,591 18,391 21,808 Ore tonnes mined Kt 694 549 1,711 2,254 Ore milled Kt 740 773 2,786 3,070 Head grade g/t 3.0 2.1 2.5 2.1 Mill recovery % 88.7% 78.9% 85.4% 80.6% Ounces produced oz 63,235 41,704 193,231 170,832 Ounces sold oz 56,800 40,000 186,600 170,625 Gold production for the quarter at North Mara of 63,235 ounces was 52% above the prior year period. Production was driven by the expected increase in mined grade from the Gokona pit in the fourth quarter. The quarter also saw a significant step-up in overall tonnes mined as well as ore tonnes. This was in line with plan and also benefited from a reduced impact from illegal mining activity. This positively impacted on overall head grade, due to the lower draw down from stockpiles, and together with the impact of the gold plant project led to improved recoveries. Gold ounces sold for the quarter were 56,800 ounces, 10% below production but 42% higher than the prior year period. Sales ounces were negatively impacted by the timing of the production which was weighted towards the end of the year. Production for the full year of 193,231 ounces was 13% higher than the prior year production. Head grade and mill recovery were positively impacted by an increase in ore tonnes mined and mined grade over the second half of the year leading to a reduction in mill feed from the lower grade stockpiles. Gold ounces sold of 186,600 ounces were 9% above the prior year due to a higher production base. Tulawaka (reflected as 70%) Three months ended Twelve months ended (Unaudited) 2012 2011 2012 2011 Underground ore tonnes hoisted Kt 33 38 124 144 Open pit ore tonnes mined Kt - 20 43 22 Open pit waste tonnes mined Kt - 437 222 497 Ore milled Kt 34 73 185 291 Head grade g/t 4.7 7.1 5.5 6.6 Mill recovery % 94.6% 95.7% 95.5% 95.1% Ounces produced oz 4,937 15,967 31,028 58,871 Ounces sold oz 5,215 15,190 31,920 58,415 Attributable gold production at Tulawaka for the quarter was 4,937 ounces compared to the prior period of 15,967 ounces. Lower gold production was a result of the batch processing campaign and the mining of lower grade stopes. Gold ounces sold amounted to 5,215 ounces for the quarter, 6% above production due to the timing of sales. Gold production for the full year of 31,028 was 47% lower than the prior year period as a result of the lower mined grade from underground stopes and the application of batch milling in order to drive plant efficiencies. Gold sales for the year amounted to 31,920 ounces, which were 3% above production. 7 LSE: ABG
Non-IFRS financial measures ABG has identified certain measures in this report that are not measures defined under IFRS. Non-IFRS financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing ABG s financial condition and operating results. These measures are not in accordance with, or a substitute for, IFRS, and may be different from or inconsistent with non-ifrs financial measures used by other companies. These measures are explained further below. Average realised gold price per ounce sold is a non-ifrs financial measure which excludes from gold revenue: - Unrealised gains and losses on non hedge derivative contracts - Unrealised mark to market gains and losses on provisional pricing from copper and gold sales contracts; and - Export duties. Cash costs per ounce sold is a non-ifrs financial measure. Cash costs include all costs absorbed into inventory, as well as royalties, by-product credits, and production taxes, and exclude capitalised production stripping costs, inventory purchase accounting adjustments, unrealised gains/losses from non-hedge currency and commodity contracts, depreciation and amortisation and social development costs. Cash cost is calculated net of co-product revenue. The presentation of these statistics in this manner allows ABG to monitor and manage those factors that impact production costs on a monthly basis. ABG calculates cash costs based on its equity interest in production from its mines. Cash costs per ounce sold are calculated by dividing the aggregate of these costs by gold ounces sold. Cash costs and cash costs per ounce sold are calculated on a consistent basis for the periods presented. Mining statistical information The following describes certain line items used in the ABG Group s discussion of key performance indicators: - Open pit material mined measures in tonnes the total amount of open pit ore and waste mined. - Underground ore tonnes hoisted measures in tonnes the total amount of underground ore mined and hoisted. - Total tonnes mined include open pit material plus underground ore tonnes hoisted. - Strip ratio measures the ratio waste-to-ore for open pit material mined. - Ore milled measures in tonnes the amount of ore material processed through the mill. - Head grade measures the metal content of mined ore going into a mill for processing. - Milled recovery measures the proportion of valuable metal physically recovered in the processing of ore. It is generally stated as a percentage of the metal recovered compared to the total metal originally present. 8 LSE: ABG