Australasia region

Australia

St Ives

        June
2011
  March
2011
 
  Gold produced - 000’oz   108.7   120.5  
  Yield - heap leach - g/t   0.5   0.5  
           - milling - g/t   2.7   2.9  
           - combined - g/t   2.0   2.3  
  Total cash cost - A$/oz   959   860  
    - US$/oz   1,015   862  
  Notional cash expenditure - A$/oz   1,295   997  
    - US$/oz   1,371   1,000  
  NCE margin - %   9   28  

Gold production decreased from 120,500 ounces in the March 2011 quarter to 108,700 ounces in the June 2011 quarter because of unplanned downtime at the Lefroy mill due to a failure on the SAG mill motor and a decrease in high grade underground ore mined this quarter.

At the underground operations, ore mined decreased from 456,700 tonnes at 4.2 grams per tonne in the March quarter to 401,600 tonnes at 4.5 grams per tonne in the June quarter. The tonnage reduction reflects the scheduled closure of the Belleisle mine in May. Belleisle is being replaced by the Athena mine which will reach commercial levels of production during the September quarter. Overall grade improved due to increased tonnage and grades delivered from Athena.

At the open pit operations total ore tonnes mined increased from 948,000 tonnes at 1.9 grams per tonne in the March quarter to 1,038,000 tonnes at 1.7 grams per tonne in the June quarter. The reduction in grade was due to lower grades realised from Apollo, as this pit reached the end of its life.

Gold produced from the Lefroy mill decreased from 113,600 ounces in the March quarter to 100,700 ounces in the June quarter, due to the SAG mill motor failure, resulting in a 6 per cent reduction in throughput. Tonnes processed decreased from 1.22 million tonnes in the March quarter to 1.15 million tonnes in the June quarter. Mill head grade decreased marginally from 3.0 grams per tonne in the March quarter to 2.9 grams per tonne in the June quarter, reflecting an increase in open pit material treated during the June quarter.

Production from the heap leach facility increased from 6,900 ounces in the March quarter to 8,000 ounces in the June quarter, due to an increase in throughput of 135,000 tonnes, from 395,000 tonnes to 530,000 tonnes.

Net operating costs decreased from A$105 million (R736 million) in the March quarter to A$103 million (R740 million) in the June quarter. This decrease was primarily due to an inventory draw-down in the March quarter. Total cash cost increased from A$860 per ounce (US$862 per ounce) to A$959 per ounce (US$1,015 per ounce) due to the lower gold production.

Operating profit decreased from A$62 million (R435 million) to A$51 million (R365 million), due to the decrease in gold production.

Capital expenditure increased from A$24 million (R166 million) to A$39 million (R275 million) due primarily to mine development (A$24 million) and exploration (A$8 million). Increased spend on mine development occurred at Athena mine, the new Hamlet underground mine and at the Formidable open pit.

Notional cash expenditure increased from A$997 per ounce (US$1,000 per ounce) in the March quarter to A$1,295 per ounce (US$1,371 per ounce) in the June quarter. The NCE margin decreased from 28 per cent to 9 per cent due to higher capital expenditure and lower production.

Agnew

        June
2011
  March
2011
 
  Gold produced - 000’oz   50.4   37.9  
  Yield - g/t   6.8   6.4  
  Total cash cost - A$/oz   641   758  
    - US$/oz   679   760  
  Notional cash expenditure - A$/oz   979   1,155  
    - US$/oz   1,037   1,158  
  NCE margin - %   31   17  

Gold production increased from 37,900 ounces in the March quarter to 50,400 ounces in the June quarter. Ore mined from underground increased from 147,000 tonnes at a head grade of 8.2 grams per tonne in the March quarter to 183,000 tonnes at a head grade of 8.8 grams per tonne in the June quarter. Ore production commenced at the Songvang open pit in the June quarter, producing 90,000 ore tonnes at a head grade of 1.7 grams per tonne.

Tonnes processed increased from 184,000 tonnes in the March quarter to 231,000 tonnes in the June quarter, with an increase in yield from 6.4 grams per tonne to 6.8 grams per tonne as underground production and head grade increased. The tonnes mined from underground were supplemented with the lower grade surface material from the Songvang open pit.

Net operating costs increased from A$29 million (R204 million) in the March quarter to A$32 million (R227 million) in the June quarter, mainly due to ore production from the Songvang open pit during the quarter. Total cash cost per ounce decreased from A$758 per ounce (US$760 per ounce) to A$641 per ounce (US$679 per ounce) primarily due to the increased production. The increased underground production came without any increase in underground mining costs quarter on quarter.

Operating profit increased from A$24 million (R166 million) in the March quarter to A$41 million (R291 million) in the June quarter.

Capital expenditure increased from A$15 million (R105 million) in the March quarter to A$17 million (R124 million) in the June quarter. This included A$3 million spent on the Songvang open pit project and A$2 million on the new ventilation system, which includes a return air shaft and primary ventilation fans for the extension of Waroonga underground mine.

Notional cash expenditure decreased from A$1,155 per ounce (US$1,158 per ounce) in the March quarter to A$979 per ounce (US$1,037 per ounce) in the June quarter due to the increased production. The NCE margin increased from 17 per cent to 31 per cent.