Second Quarter 2011 and Interim Results Period ending 30 June 2011 - PowerPoint PPT Presentation

Second Quarter 2011 and Interim Results Period ending 30 June 2011 11 August 2011

Forward Looking Statements 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 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 forward looking statements. Such risks, uncertainties and other important factors include among Such risks uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the temporary stoppages of mines for safety and unplanned maintenance reasons; 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 forward 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. 2

Overview

June 2011 Salient Features Increased production, good cost control and higher gold price boost earnings NCE margin (%) NCE margin (%)  5% increase in equivalent production to 872,000 ounces 21% 21% 21%  Operating margin increased to 47%  NCE margin of 21% for Q1 2011 and H1 2011 14% 14%  Good cost control across the Group  Rand denominated net operating costs up 1% y/y and 5% q/q  Net earnings 1 increase 15% to R1.3 billion, SA184 cps Q1 2011 Q2 2011 H1 2010 H1 2011 1 Normalised net earnings 4

June 2011 Salient Features Delivering the gold price to shareholders DPS (SA cents per share) DPS (SA cents per share) 100  Free cash flow of R669 million 1  Concluded the acquisition of minority interests 70 70 in Peru and Ghana  Good progress made on growth portfolio 50  Interim dividend of SA100 cps Dec-09 Jun-10 Dec-10 Jun-11 1 Cash generated from operations less capex 5

Growing the NCE Margin US$/oz 1600 1400 21% 1200 1000 800 600 400 Jun 2008 Jun 2008 Dec 2008 Dec 2008 Jun 2009 Jun 2009 Dec 2009 Dec 2009 Jun 2010 Jun 2010 Dec 2010 Dec 2010 Jun 2011 Jun 2011 Gold Price Cash Costs NCE 6

Creating a Globally Diversified Company 47% 50% 52% 59% 63% 53% 50% 48% 41% 37% 37% H1 2008 H1 2008 H1 2009 H1 2009 H1 2010 H1 2010 H1 2011 H1 2011 Pro-forma H1 2011 Pro-forma H1 2011 1 International Production SA Production 1 Gold equivalent attributable production 7

Improving the Profitability of the Portfolio Ounces % 1 100 000 45 1 000 000 40 900 000 35 800 000 30 700 000 25 600 000 500 000 500 000 20 20 400 000 15 300 000 10 200 000 200 000 5 100 000 0 0 H1 2008 H1 2008 H1 2009 H1 2009 H1 2010 H1 2010 H1 2011 H1 2011 1 International Production (lhs) International NCE margin (rhs) 1 Gold equivalent managed production 8

Australasia Region Overview Significant turnaround at Agnew  Q2 production of 159,000oz (Q1: 158,000oz)   33% increase in production to 50,400oz at Agnew  Transition to owner mining at St Ives (U/G) completed  Agnew Athena construction completed – ramping up to full Brisbane St Ives production production Kalgoorlie Perth  Hamlet construction underway Sydney  Melbourne Aim to replenish reserve depletion during 2011 Contribution to Group EBITDA; H1 2011 NCE margin; H1 y/y (%) 21 21 13 June 2010 June 2011

South Africa Region Overview Safety: the key to sustainable delivery  9% increase in production to 447,000oz  Solid performance from Beatrix - 32% increase in production to KDC Pretoria South Deep Johannesburg 98,000oz and an NCE margin of 23% Beatrix  Business Process Re-engineering delivering results Bloemfontein   Absorbed cost inflation (6% / increase in operating costs) Absorbed cost inflation (6% y/y increase in operating costs) D Durban b  Shaft Full Potential Programme aimed at stabilising production at KDC between 1.0 and 1.1Moz per annum Cape Town Contribution to Group EBITDA; H1 2011 NCE margin; H1 y/y (%) 14 14 6 4 -4 June 2010 June 2011 Incl South Deep Incl South Deep Excl South Deep Excl South Deep 10

South America Region Overview A major cash generator  Q2 gold equivalent production 1 101,000oz (Q1 2011 108 000 (Q1 2011: 108,000oz) ) Cerro Corona  2% decrease in NCE to US$526/oz PERU Lima  Buy-out of minority shares concluded y y Chucapaca Chucapaca Project  Ownership increased to 98.5% from 80.7%  Oxides and Resource expansion projects progressing well Contribution to Group EBITDA; H1 2011 NCE margin; H1 y/y (%) 61 52 June 2010 June 2011 1 Managed 11

West Africa Region Overview Acquisition of minorities completed  Q2 production 1 of 237,200oz (Q1: 241,600oz)  NCE of US$885/oz, 6% lower q/q  Concluded acquisition of minority interest  Ownership increased to 90.0% from 71.1% MALI  Transition to owner mining and maintenance at Damang completed at Damang completed Bamako Bamako Yanfolila Project  US$7 million in cost savings realised in Q2 2011  Cost per ton: GHANA • Pre transition $4.00 /t Tarkwa Accra Damang Damang • Q2 2011 Q2 2011 $2 70 /t (i $2.70 /t (incl. 30% electricity increase) l 30% l t i it i ) Contribution to Group EBITDA; H1 2011 NCE margin; H1 y/y (%) 37 32 June 2010 June 2011 1 Managed 12

Growth Portfolio

South Deep Project – South Africa Building a world-class mine Production Build-up (ounces) 800  Production of 76 100oz 3% increase q/q Production of 76,100oz, 3% increase q/q  Infrastructure projects tracking well 600  Development and de-stress mining rates 400 i improving i 200  11% increase q/q in de-stress mining to 5,529m 0 C2009 A C2010 A C2011 E C2012 E C2013 E C2014 E Capital Programme F2010 F2011 C2012 F2013 F2014 Status   Refrigeration Plant  Twin Vent Shaft  Tailings Storage Facility g g y  Plant Expansion  New Mine Development 14

Damang Super Pit Project - Ghana Targeting a four-fold increase in reserves to 4Moz at Damang Super Pit Damang Reserves (‘000 ounces) 6 000 6 000  Grade control model extrapolated to depth and evaluated for mining potential 5 000  25,000m Proof of Concept Drilling 4 000 completed to test extrapolated continuity 3 000  Second drilling campaign of 45,000m 50% complete 2 000  Pre Feasibility Study scheduled for early 2012 1 000  Production growth and life extension 0 June 2008 June 2009 Dec 2010 Target Damang Super Pit Other 15

Damang Super Pit Project - Ghana Damang Pit Cut-Back Huni Damang Juno current pit shell drill hole intersection 122m at 1.7 g/t Au surface topography 180m at 2.4 g/t Au 408m at 0.5 g/t Au g 605m at 0.6 g/t Au 605m at 0 6 g/t Au drill hole trace drill hole trace 72m at 3.9 g/t Au 270m at 1.0 g/t Au 425m at 0.7 g/t Au 351m at 1.2 g/t Au 144m at 3.9 g/t Au 189m at 0.6 g/t Au 72m at 0.8 g/t Au 168m at 0.6g/t Au 181m at 0.5g/t Au 402m at 1.1 g/t Au 351m at 0.8g/t Au 349m at 1.1 g/t Au 240m at 1.0 g/t Au 355m at 0.8 g/t Au 300m at 1.3 g/t Au 500m N 16

Damang Super Pit Project - Ghana Damang Super Pit Project Current Pit Reserve Shell ($1,000/oz) Reserve Shell ($1,000/oz) Greater Damang Extensional Shell ($925/oz) 3 km 3 km

Chucapaca JV Project - Peru Drilling extending current resource  Phase II drilling underway  Twelve drill rigs on site working on infill step out and geotechnical drilling  Twelve drill rigs on-site working on infill, step-out and geotechnical drilling  90,000 meters of drilling to date  Canahuire drilling returning positive results  Deposit open to the West and at depth  Improving grades  Updated resource expected September 2011  Updated resource expected September 2011  Initial metallurgical test work complete and optimisation study in progress  Environmental baseline study work for EIA underway f  Feasibility Study targeted for completion by H2 2012 18

Chucapaca JV Project - Peru 5.6 Million Ounce au-eq (May 2010) Resource Shell 1.3km 1.3km 350m Grades improving Model extending 19