African Barrick Gold Investor Presentation 2010 Prelims 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 7 3. Exploration & growth projects 13 4. Financial review 21 5. Conclusion 28 6. Appendix 30 2
Overview of ABG Location of assets 2010 production of 701 koz @ $569 / ounce Reserves and resources of 26.9 Moz Four producing mines in Tanzania and significant land holdings Range of organic growth projects at different stages of development North Mara Bulyanhulu Targeting 1 Moz production by 2014 Tulawaka Buzwagi Net cash of $401m FTSE member Dar es Salaam Mining operations A major gold producer with significant growth optionality 3
Strategy Underpinned by Solid Fundamentals Focussed strategy … Maintain efficient and consistent production base from existing operations Grow current production through low capital high return asset optimisation Further grow and diversify asset base through targeted acquisitions … from a position of strength Major African gold producer Long life, high grade producing assets Clearly defined path to growth from existing projects Significant financial flexibility complemented by strong cash flow generation Experienced management team with track record of developing and operating mines Growth targets from a position of strength with an existing project portfolio 4
Financial Highlights to 31 December 2010 Year ended 31 Dec ember Full year 2010 revenues of $975m, up 37% % change $’000s (Unaudited) 2010 2009 Y-o-Y year-on-year Revenue 975,021 711,182 37% EBITDA of $419m, up 68% on 2009 Cost of sales (589,039) (487,027) 21% Gross profit 385,982 224,155 72% Operational cash flow generated of $345m, up 78% year-on-year Corporate administration (35,436) (37,759) -6% Exploration costs (14,861) (8,871) 68% Net income of $218m – a 272% increase Other charges (26,033) (21,419) 22% Proposed full year dividend of 5.3 cents per Profit before net finance costs 309,652 156,106 98% share Net finance expense (575) (5,701) -90% Net profit before taxation 309,077 150,405 105% Net cash balance of $401m Taxation expense (86,471) (84,388) 2% Net profit attributable to 218,103 58,577 272% equity shareholders EPS (cents) 53.2 14.3 272% DPS (cents) 5.3 n/a n/a Record financial performance demonstrating gold price leverage 5
Further Progress in 2011 Key objectives for 2011: – Continued improvement in health and safety indicators – Growth in existing production base – Production and cost efficiencies to mitigate industry cost pressures – Further progress on growth projects – Organic expansion of resource base – Pursue value enhancing acquisition opportunities – Build on improvement in community relations achieved in 2010 Leading to following targets: – Attributable group production of 700,000 – 760,000 ounces – Cash cost per ounce sold of $590 - $650 (cash operating cost per ounce of $545 - $605) – Sustaining capital budget of $140m, $24m expansion projects, $73m deferred stripping costs – Exploration budget of $55m, including $26m capitalised spend Short, medium and long term growth to drive shareholder value creation 6
1. Overview & highlights 2 2. Operational review 7 3. Exploration & growth projects 13 4. Financial review 21 5. Conclusion 28 6. Appendix 30 7
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