African Barrick Gold Investor Presentation Company Presentation - PowerPoint PPT Presentation

African Barrick Gold Investor Presentation Company Presentation February 2011

Disclaimer Important Notice This presentation has been provided to you for information purposes only. It does not constitute an offer, solicitation, invitation or inducement to purchase, subscribe or otherwise acquire or to sell or otherwise dispose of any securities of African Barrick Gold plc ("ABG") or engage in any investment activity in connection with the capital of ABG in any jurisdiction. The information or opinions contained in this presentation shall not form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment or investment decision whatsoever in connection with ABG. The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. ABG explicitly disclaims any responsibility, obligation or undertaking to update or revise any information contained in this presentation after its date, whether as a result of new information, future events or otherwise. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents. Certain information, statements, beliefs and opinions in this presentation are forward looking. 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," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors. Although ABG’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, forward-looking information and statements contained in this presentation. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, 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 and Tanzanian shilling exchange rates), ABG’s ability to successfully integrate future acquisitions, 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 timely and successfully process its mineral reserves, 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. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation speak only as of the date of this presentation and 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 contained in this presentation, whether as a result of new information, future events or otherwise. No statements made in this presentation regarding expectations of future profits are profit forecasts or estimates, and no statements made in this presentation 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 or any other level. You are reminded that you have received this presentation subject to the disclaimer and important notices contained herein and on the basis that you are a person to whom this presentation may be lawfully made and delivered in accordance with the laws of the jurisdiction in which you are located. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, whether electronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS. 1

1. Overview & highlights 2 2. Operational review 6 3. Exploration & growth projects 11 4. Conclusion 17 2

Overview of ABG Location of assets  LSE listed gold mining company with significant production and reserve base – 2010 production of 701 koz – Reserves and resources of 26 Moz 1  Four producing mines in Tanzania and significant land holdings North Mara  Growth driven by organic expansion projects and Bulyanhulu African consolidation opportunities Tulawaka – Targeting 1 Moz production by 2014 Buzwagi – Aiming to double production over 10 years  Experienced management team with strong Dar es Salaam operational track record  Successful IPO and FTSE 100 inclusion in 2010 Mining operations 1 Figure as at 31 December 2009 Significant production and reserve base to drive growth 3

Operational Highlights to 31 December 2010  Full year 2010 production of 701 Koz, down 2% year-on-year Year ended 31 December % change  Bulyanhulu and North Mara firmly on track 2010 2009 Y-o-Y Operating results  Buzwagi impacted by issues relating to transition ore and fuel theft Tonnes mined (kt) 40,016 36,781 9% – Operational improvement initiatives on track Ore tonnes processed (kt) 7,706 6,546 18% – Planned monthly production reached in Recovery rate (percent) 86.1% 87.0% -1% December Average grade (grams per ton) 3.3 3.9 -15% Attributable gold production (koz) 701 716 -2%  Tulawaka production influenced by new Attributable gold sold (koz) 724 684 6% equipment commissioning and lower grades year- on-year Average realised gold price ($/oz) 1,240 974 27% Copper production (‘000 pounds) 7,958 6,788 17%  All organic growth projects on track Strong platform with further growth expected as Buzwagi production ramps up 4

Financial Highlights to 30 September 2010 1 Nine months ended 30 September  9M 2010 revenues of $633m, up 35% year to % change $’000s (Unaudited) 2010 2009 Y-o-Y date Revenue 632,602 469,910 35%  EBITDA of $286 million, up 58% year to date Cost of sales (380,875) (310,601) 23% Gross profit 251,727 159,309 58%  Operational cash flow generated of $220m year to date Corporate administration (26,353) (27,804) -5% Other charges (12,286) (2,681) 358%  Net income of $139m Profit before net finance costs 204,478 121,835 68% – 87% higher year on year and greater than Net finance expense (301) (5,867) -95% the FY 2009 result Net profit before taxation 204,177 115,968 76%  Cash costs of $556/oz Taxation expense (63,042) (34,763) 81% Net profit attributable to  Net cash balance of $401m (unaudited figure 139,098 74,557 87% equity shareholders as at 31 December 2010) EPS (cents) 33.9 18.2 87% 1 Full year 2010 financial results due to be released 16 February 2011 Strong financial performance provides significant strategic flexibility 5

1. Overview & highlights 2 2. Operational review 6 3. Exploration & growth projects 11 4. Conclusion 17 6

Operational Details – Bulyanhulu  Continued positive progress throughout 2010  Production of 260 Koz up 4% YoY  Both grade and recoveries increased over the year  Consistent operating performance throughout the year  Continued investment to drive further cost improvements and operating efficiencies Key operating statistics Year ended 31 December (Reviewed) 2010 2009 Underground ore tonnes hoisted (ktpa) 958 967 Ore milled (ktpa) 954 959 Head grade (g/t) 9.2 8.7 Mill recovery (%) 92.2% 92.1% Ounces produced (oz) 260 249 Ounces sold (oz) 262 255 Cash costs/ounces sold ($/oz) 1 544 644 Cash costs/tonne milled ($/t) 1 142 169 Capital expenditure ($’000s) 1 57,127 35,304 7 1 Figures to 30 September 2010