LEVERAGED TO GOLD Q2 F2010 RESULTS Johannesburg Johannesburg 4 - PowerPoint PPT Presentation

LEVERAGED TO GOLD Q2 F2010 RESULTS Johannesburg Johannesburg 4 February 2010

2 Emergency Procedures INTRODUCTION INTRODUCTION • In the event of an emergency an alarm will sound. • Exit premises through doors on the north side of room. • Congregate on lawns to the north of the building. • Await further instructions • Await further instructions. SAFETY FIRST

3 Forward Looking Statement INTRODUCTION INTRODUCTION Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic business and political conditions in South important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Introduction Introduction Ni k H ll Ni k H ll Nick Holland Nick Holland d d Chief Executive Officer Chief Executive Officer

5 Q2 F2010 Salient Features INTRODUCTION INTRODUCTION 1 Solid financial results 1. Solid financial results. 2. Driefontein and Kloof constrained by lack of flexibility and stoppages. 3. Growth projects progressing well: • South Deep Project; • Damang secondary crusher; and D d h d • Athena mine development. 4. Exploration portfolio showing significant promise. A SOLID PERFORMANCE IN A CHALLENGING ENVIRONMENT

6 Q2 F2010 Salient Features INTRODUCTION INTRODUCTION Gold production Steady at 900koz Gold price Up 9% to R263,828/kg Total cash cost T t l h t U Unchanged at R147,648/kg h d t R147 648/k NCE Up 4% to R216,830/kg Operating profit Up 25% to R3,478 million Operating margin Up 13% to 43% Net earnings Net earnings Up 40% to R1 409 million Up 40% to R1,409 million Normalised earnings Up 64% to R1,022 million LEVERAGED TO THE HIGHER GOLD PRICE

7 Q2 F2010 Salient Features INTRODUCTION INTRODUCTION US$/oz Cost Analysis 1 200 1,200 1,100 Free Cash Flow Margin 1,000 900 900 800 Investing in the future S$/oz 700 600 US 500 400 Good cost control 300 200 200 100 - 009 009 009 009 010 010 Q1 F20 Q2 F20 Q3 F20 Q4 F20 Q1 F20 Q2 F20 Gold price Cash costs NCE MAINTAINING A FREE CASH FLOW MARGIN

8 Q2 F2010 Salient Features INTRODUCTION INTRODUCTION • Build-up to 300koz on track. South Deep • Consolidating the gains. Beatrix • Outperforming. O t f i Cerro Corona C C • Good cash generator. Agnew • Mill rebuild accelerated. Damang • Power change-over impacted plant. Tarkwa • Grade gap. g p St Ives • Volumes impacted by seismicity, stoppages Driefontein & Kloof and lack of flexibility. FOCUSING ON THE CHALLENGES!

9 Strategic Focus INTRODUCTION INTRODUCTION • FULCO implemented; • Leveraging South Shaft to provide incremental production South Deep beyond 330kt per month. Beatrix • Maintaining the momentum • Maintaining the momentum. Cerro Corona Cerro Corona Agnew • Secondary crusher – build-up to ~250koz p.a. S d h b ild t 250k Damang D • Building up to steady state of +750koz p.a. Building up to steady state of 750koz p.a. Tarkwa Tarkwa • Solving the grade gap. St Ives • Seismicity, development and labour optimisation. Driefontein & Kloof DRIEFONTEIN, KLOOF AND ST IVES THE PRIMARY FOCUS

10 Strategic Focus INTRODUCTION INTRODUCTION South Africa Region The Challenges Strategic Response • Increased focus on seismicity; • Lack of flexibility; • Accelerate development; • Unplanned production stoppages; • Reduce mining concentration; R d i i t ti • Cash flows invested into • Alternative working arrangements South Deep. to redeploy excess labour into gold to redeploy excess labour into gold winning. LONG LIFE QUALITY ORE BODIES

11 Programme INTRODUCTION INTRODUCTION Paul Schmidt Financial Review Chief Financial Officer Vishnu Pillay South Africa Review Head of South Africa Mark Zeptner Australasia Review Acting Head of Australasia Peter Turner West Africa Review Head of West Africa Juan Luis Kruger South America Review Head of South America Nick Holland Conclusion Chief Executive Officer

Financial Review Financial Review P P Paul Schmidt Paul Schmidt l S h l S h idt idt Chief Financial Officer Chief Financial Officer

13 13 Q2 F2010 FINANCIAL REVIEW Salient Features Q2 F2010 FINANCIAL REVIEW Q2F2010 Q2F2010 Q1F2010 Q1F2010 900 906 Attributable gold produced 000oz 1 096 1,096 959 959 US$/oz 7.49 7.82 US$/ZAR Revenue 263,828 241,164 R/kg 8 067 8,067 7 416 7,416 R Rm 4,589 4,629 Operating costs, net Rm 333 343 R/ton Operating costs p g 1,084 1 084 1,059 1 059 SA ug R/t SA R/t 3,478 2,787 Operating profit Rm Operating margin 43 38 % Total cash costs T t l h t 147,648 147 648 147 343 147,343 R/kg R/k 613 586 US$/oz Notional cash expenditure 1 (NCE) Notional cash expenditure (NCE) 216,830 216 830 207,754 207 754 R/kg R/kg 1 NCE = Operating cost + Capex 900 826 US$/oz 25% INCREASE IN OPERATING PROFIT

14 14 Q2 F2010 FINANCIAL REVIEW Income Statement Q2 F2010 FINANCIAL REVIEW Q2F2010 Q2F2010 Q1F2010 Q1F2010 Rm Rm 2,322 2,322 1,613 1,613 Net operating profit Net operating profit (55) (132) Loss on financial instruments Rm (168) (133) Exploration Rm (117) (117) (252) (252) I t Interest and other t d th R Rm Rm 1,982 1,096 Profit before tax & exceptional items 432 666 Exceptional items Rm (832) (638) Mining & income tax Rm Rm 1,582 1,124 Net profit 1,409 1,007 Rm Net profit attributable to ordinary Net profit attributable to ordinary shareholders 200 143 SA cps 1,022 625 Rm Normalised earnings 145 89 SA cps 64% INCREASE IN NORMALISED EARNINGS

15 15 Q2 F2010 FINANCIAL REVIEW Cash Flow Statement Q2 F2010 FINANCIAL REVIEW Q2F2010 Q2F2010 Q1F2010 Q1F2010 2 105 2,105 1 263 1,263 Cash flows from operations Cash flows from operations Rm Rm - (564) Dividend paid Rm (1 965) (1,965) (1 743) (1,743) C Capital expenditure net it l dit t Rm (656) 630 Net loans (repaid)/received Rm (18) (25) Other activities Rm (534) (439) Net cash outflow Rm 84 (87) Currency translation adjustment Rm 2,278 2,804 Cash at beginning of period Rm 1,828 2,278 Cash at end of period Rm 67% INCREASE IN OPERATING CASH FLOW

16 16 Balance Sheet Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Q2F2010 Q1F2010 Loans - Long term Rm (4,823) (5,010) Loans - Short term Rm (3,674) (3,963) Gross debt Rm (8,497) (8,973) Less cash and deposits Rm 1,828 2,278 Net debt Rm (6,669) (6,695) Q1 $/R 7 37 Q1 $/R 7.37 Q2 $/R 7.65 NET DEBT TO EBITDA: 0.48

17 17 Financial Flexibility Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Headroom Available R Rand Denominated d D i t d US$ D US$ Denominated i t d R Rand Equivalent* d E i l t* Rm $m Rm Uncommitted Facilities Uncommitted Facilities 1 302 1,302 - 1 302 1,302 Committed Facilities 2,500 362 5,269 Total credit Total credit 3 802 3,802 362 362 6 571* 6,571* Debt Maturity Profile (R'm) as at December 2009 5,000 4 002 4,002 3 924 3,924 4,000 3,534 3,319 3,082 2,700 3,000 Utilised R8,497m 2,000 Facilities R15,068m Facilities R15,068m 940 940 741 741 741 741 582 1,000 Headroom R6,571* - Q3 F2010 Q4 F2010 F2011 F2012 F2013 *C *Converted at US$1 : 7.65 t d t US$1 7 65 CIRCA $1 BILLION OF HEADROOM

18 Interim Dividend Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Interim dividend of 50c per share. Amounts to 50% payout in terms of dividend policy Amounts to 50% payout in terms of dividend policy. 67% higher than interim dividend paid in F2009. g p CONSISTENT DIVIDEND PAYER

South Africa Region South Africa Region Vi h Vi h Vishnu Pillay Vishnu Pillay Pill Pill Head of the South Africa Region Head of the South Africa Region