West Africa Region West Africa: A million ounce region Largest gold - PowerPoint PPT Presentation

West Africa Region

West Africa: A million ounce region Largest gold producer in Ghana Gold Production 1 and NCE Margin (2008 – 2011) % koz % 1 200 50 1 000 40 MALI 800 30 600 20 Bamako Yanfolila Project 400 868 981 826 10 200 GHANA 0 0 Damang 2008 2008 2009 2009 2010 2010 2011E 2011E Accra Tarkwa Production NCE Margin EBITDA 3 (Group Contribution) NCE Margin Mineral Reserves & Resources 2 9 months to Sept 2011 (%) 9 months to Sept (%) 31 Dec 2010 (Moz) 15.6 12.3 10.1 8.0 40 40 28 Reserves Resources As at 31 Dec 2010 Proforma incl 90.0% interest Sept 2010 Sept 2011 ______________________________________ 1. Managed gold production g g p 2. Attributable gold reserves and resources 3. Attributable EBITDA 124

Ghana: Political & Fiscal Overview  Maturing democracy  Political Stable and predictable political environment Climate  New fiscal regime proposed  Democratic elections in December 2012  Infrastructure improvement (US$3bn loan - China Development Bank)  Bank of Ghana: interest rate unchanged at 12.5% Economic Economic  GDP growth at 12.2% Climate  Oil production reached 120k barrels/day (oil accounts for 6% of Ghana's domestic revenue and expected to double to US$2bn in 2012) 125

Proposed new fiscal regime announced in the Nov 2011 Budget  Increase in the corporate tax rate for mining companies to 35% from 25%   Th The National Stabilisation Levy of 5% pre-tax profit to be discontinued N ti l St bili ti L f 5% t fit t b di ti d  Windfall tax of 10% to be introduced – calculation mechanism not yet available y  Capital allowance of 20% per year for five years (previously 80% in year one)  Royalties to remain unchanged at 5% of Revenue 126

Achievements since 2008  Increased Tarkwa plant capacity from 5Mtpa to 12Mtpa CIL Plant Expansion p p p y p p  Increased Damang LOM from 2012 to beyond 2019 Exploration Success  7 – 10% increase in heap leach recovery on competent feed HPGR Trial Project  Tarkwa HME: transition complete for haul trucks & ancillary equipment Owner Maintenance & Mining  Damang: cost savings of US$18m since commencement  Tarkwa: cost price & usage saving: US$14m (January to September BPR launched 2011), throughput initiatives  Proof of concept study programme P f f t t d Damang Super-pit  A potential 4Moz reserve position* ____________________________ * Refer to the Exploration Target Statement for the Damang Super-pit Project in the Appendix 127

Strategic objectives  Maintain a >35% NCE margin  Stable production base Optimise Our Assets  BPR - control costs and manage NCE  Deliver optimal processing options at Tarkwa  Targeting 1.25Moz attributable production by 2015 (currently at 0.9Moz) Grow Grow  Aim to deliver 4Moz Damang Super-pit and double production at Damang Gold Fields  Deliver Yanfolila Project  Commitment to health and safety Secure  Focus on people p p Our Future  Further expand stakeholder engagement and continue to meet social contracts 128

Tarkwa: A steady contributor Production 1 (2008 – 2011) ‘000 ounces 800 700 700 600 500 500 400 735 665 629 300 200 100 0 2008 2009 2010 2011E _____________________________________ 1. Managed gold production 129

Tarkwa Expansion Project  Additional CIL shows improved site NPV versus Heap Leach base case Conceptual Study p y p p  8Mtpa CIL capacity to North Heap Leach Size of expansion  Current mining rates / fleet / installed processing capacity Synergies  Supported by reserve with low risk of capital – TSF is key Low Risk  Initial capital: ~US$400 to US$600 million  Maintain 750koz to 800koz per year for up to 5 years P Production profile d ti fil  Additional 1Moz produced over LOM due to improved recoveries  Provides additional capacity to upgrade and re-process South Heap Provides additional capacity to upgrade and re process South Heap S South heap leach th h l h Leach residue 130

Damang: A mine in transition Production 1 (2008 – 2011) ‘000 ounces 250 200 150 150 228 203 100 197 50 0 2008 2009 2010 2011E _____________________________________ 1. Managed gold production 131

Damang Super-pit: Targeting 4Moz* Damang Reserves (‘000 ounces) 6 000 Damang Super-pit Other 5.0Moz 5 000 1 000 4 000 3 000 2 000 4 000 952 1.3Moz 1 266 631 1 000 1 128 723 723 555 0 June 2008 June 2009 Dec 2010 Target 2012 ____________________________________ * Refer to the Exploration Target Statement for the Damang Super-pit Project in the Appendix 132

West Africa Region: Damang Superpit  Second drilling campaign completed (38,000m of 40m by 80m drilling)  Updated resource model being completed  6,300 m drilling to date – still open at depth Damang Superpit Conceptual Shell N Current Pit Surface -200m -400m -600m -800m Dec 2010 Reserve Shell Dec 2010 Reserve Shell Conceptual Extensional Pit Shell Conceptual Extensional Pit Shell ($1,000/oz) ($1300/oz) 3 km 133

Further upside potential at Damang Existing Plant Proposed Plant Meters Greater Amoanda Project planned for Super pit (In ‐ fill drilling) 2012 Greater Amoanda 14,000 Amoanda/Rex Cor. (First phase exploration) Rex Resource In-fill 12,000 Rex (In ‐ fill and Bonsa Hydrothermal 4,500 expansion Bonsa Hydrothermal drilling) Amoanda/Rex Corr. 8,000 (DD drilling of Structural /B.Fw t target) t) Epieso 4,000 Epieso ( First phase Total 42,500 exploration.) 0 4 Km 134

West Africa Region: Project Pipeline Targeting 1.25Moz attributable production Ad Advanced stage d t Early stage E l t P Pre-Feasibility & F ibili & Construction Exploration Feasibility Exploration  Mali Mali  Mali Mali  Ghana - Damang Ghana Damang − Kangari – Yanfolila – Damang Super-pit − Sankarani  Ghana - Damang  Ghana - Tarkwa − Solana – Amoanda/ Tomento – CIL Expansion Extension E i  Ghana - Damang – SHL Re-processing – Extended Damang Pit − Bonsa North − Rex South − Chida Chid − Epieso − Abosso Deeps  Ghana - Northern Region g  Ghana – Tarkwa  Asheba Growth Pipeline p Delineation e eat o Proving o g Delivery e e y 135 136

West Africa Region: Yanfolila Project A Camp-scale opportunity  Second strong foothold in a highly prospective g g y p p region  Starter project of ~200kozpa with significant growth prospects beyond this MALI  Leverage existing infrastructure Bamako Yanfolila Project  Track record of project delivery in Ghana Track record of project delivery in Ghana GHANA GHANA Damang Accra Tarkwa 136

West Africa Region: 5-year target Targeting a 1.25 million attributable ounce region Yanfolila Damang Current Base Super-pit 1.25Moz in production or Tarkwa development expansion Tarkwa ~700koz Damang ~200koz 200koz West Africa West Africa 2011 2015 Target 137