South Africa region

KDC

        June
2011
  March
2011
 
  Gold produced - 000’oz   272.5   262.6  
    - kg   8,475   8,169  
  Yield  - underground - g/t   6.0   6.6  
            - combined - g/t   3.2   3.2  
  Total cash cost - R/kg   225,133   206,916  
    - US$/oz   1,033   922  
  Notional cash expenditure - R/kg   290,289   264,341  
    - US$/oz   1,332   1,178  
  NCE margin - %   11   15  

Gold production increased from 262,600 ounces (8,169 kilograms) in the March quarter to 272,500 ounces (8,475 kilograms) in the June quarter. This increase was despite the negative impact of six public holidays, safety stoppages and interventions following seismic related events.

Underground tonnes milled increased from 1.09 million tonnes in the March quarter to 1.27 million tonnes in the June quarter. Underground yield decreased from 6.6 grams per tonne to 6.0 grams per tonne largely due to lower grades encountered on the western section of the mine. The decline in grade is considered temporary and has improved since quarter end. Surface tonnes milled decreased from 1.44 million tonnes to 1.38 million tonnes and the surface yield decreased from 0.7 grams per tonne to 0.6 grams per tonne.

Main development increased by 2 per cent from 11,545 metres to 11,740 metres, while on-reef development decreased by 14 per cent from 2,378 metres to 2,040 metres. The average development value decreased from 2,257 centimetre grams per tonne in the March quarter to 1,991 centimetre grams per tonne in the June quarter.

Operating costs increased from R1,721 million (US$247 million) to R1,915 million (US$282 million). This increase was mainly due to the 28 per cent annual electricity price increase, together with one month of higher winter tariff and an increase in material costs as a result of increased underground mine support costs. Total cash cost for the quarter increased from R206,916 per kilogram (US$922 per ounce) in the March quarter to R225,133 per kilogram (US$1,033 per ounce) in the June quarter.

Operating profit increased from R826 million (US$118 million) in the March quarter to R862 million (US$127 million) in the June quarter.

Capital expenditure increased from R439 million (US$63 million) to R545 million (US$80 million) mainly due to timing of expenditure on various projects and an increase in ore reserve development.

Notional cash expenditure increased from R264,341 per kilogram (US$1,178 per ounce) in the March quarter to R290,289 per kilogram (US$1,332 per ounce) in the June quarter primarily as a result of the higher operating costs and capital expenditure partially offset by higher production. The NCE margin decreased from 15 per cent to 11 per cent.

Beatrix

        June
2011
  March
2011
 
  Gold produced - 000’oz   98.0   74.4  
    - kg   3,048   2,314  
  Yield  - underground - g/t   4.5   4.4  
            - combined - g/t   2.8   2.5  
  Total cash cost - R/kg   203,871   232,411  
    - US$/oz   935   1,036  
  Notional cash expenditure - R/kg   255,118   300,173  
    - US$/oz   1,170   1,338  
  NCE margin - %   23   4  

Gold production increased from 74,400 ounces (2,314 kilograms) in the March quarter to 98,000 ounces (3,048 kilograms) in the June quarter.

Underground tonnes milled increased from 499,000 tonnes to 648,000 tonnes, in line with historic levels of output. Underground yield improved slightly from 4.4 grams per tonne to 4.5 grams per tonne. Surface tonnes milled increased from 409,000 tonnes to 422,000 tonnes. Surface yield was unchanged at 0.3 grams per tonne.

Main development increased from 5,135 metres in the March quarter to 6,682 metres in the June quarter. The on-reef development increased from 1,495 metres to 1,673 metres and the average main development value increased from 1,121 centimetre grams per tonne in the March quarter to 1,325 centimetre grams per tonne in the June quarter, and reflects the value variability of the zones being developed.

Operating costs increased from R549 million (US$79 million) in the March quarter to R625 million (US$92 million) in the June quarter. This increase was mainly due to increased production as well as the 28 per cent annual electricity price increase, together with one month of higher winter tariffs. Total cash cost decreased from R232,411 per kilogram (US$1,036 per ounce) to R203,871 per kilogram (US$935 per ounce) due to the higher production.

Operating profit increased from R174 million (US$25 million) in the March quarter to R385 million (US$56 million) in the June quarter.

Capital expenditure increased from R145 million (US$21 million) to R152 million (US$23 million) with the majority spent on infrastructure upgrades, the methane exploitation Clean Development Mechanism (CDM) project and ore reserve development.

Notional cash expenditure decreased from R300,173 per kilogram (US$1,338 per ounce) in the March quarter to R255,118 per kilogram (US$1,170 per ounce) in the June quarter due to the increased production. The NCE margin increased from 4 per cent to 23 per cent due to higher production partially offset by higher operating costs and higher capital expenditure.

South Deep project

        June
2011
  March
2011
 
  Gold produced - 000’oz   76.1   74.0  
    - kg   2,366   2,301  
  Yield  - underground - g/t   5.3   5.7  
            - combined - g/t   3.4   4.0  
  Total cash cost - R/kg   223,922   219,296  
    - US$/oz   1,027   977  
  Notional cash expenditure - R/kg   424,894   401,391  
    - US$/oz   1,949   1,789  
  NCE margin - %   (29)   (28)  

Gold production at South Deep increased from 74,000 ounces (2,301 kilograms) in the March quarter to 76,100 ounces (2,366 kilograms) in the June quarter. This was largely due to an 8 per cent increase in underground ore processed for the quarter to 419,000 tonnes. Although the reef tonnes broken decreased from 415,000 to 360,000 tonnes in the June quarter, underground ore production was augmented by clean-up of underground accumulations during the quarter. Production on the mine was affected by intermittent public holidays during the quarter and mechanised mining equipment breakdowns. In addition, a major fall of ground in the 95 1 West main ramp severely hampered production, with the area scheduled to be fully rehabilitated in the September quarter.

Total tonnes milled, which included 156,000 tonnes from surface sources and 115,000 tonnes of off-reef development, increased from 578,000 tonnes in the March quarter to 690,000 tonnes in the June quarter. The higher volume of ore processed was offset by lower grades, with the underground yield decreasing from 5.7 grams per tonne in the March quarter to 5.3 grams per tonne in the June quarter. The lower yield was due to a decrease in higher grade benching and long-hole stoping at 95 3 West and 2 West, as a result of breakdowns of long-hole drilling machines.

Development increased from 2,842 metres in the March quarter to 3,063 metres in the June quarter. The new mine capital development in phase 1, sub 95 level, increased from 1,143 metres in the March quarter to 1,173 metres in the June quarter. Development in the current mine areas above 95 level increased from 1,699 metres to 1,890 metres. Vertical development decreased from 261 metres in the March quarter to 181 metres in the June quarter. De-stress mining increased from 4,987 square metres in the March quarter to 5,529 square metres in the June quarter.

Operating costs increased from R512 million (US$73 million) in the March quarter to R533 million (US$79 million) in the June quarter. The increase was mainly due to the 28 per cent annual electricity price increase, together with one month of higher winter tariff. In addition, material costs increased due to the 19 per cent increase in tonnes milled. Total cash cost increased from R219,296 per kilogram (US$977 per ounce) to R223,922 per kilogram (US$1,027 per ounce).

Operating profit increased by 18 per cent from R207 million (US$30 million) in the March quarter to R245 million (US$36 million) in the June quarter due to the higher gold price received.

Capital expenditure increased from R411 million (US$59 million) in the March quarter to R472 million (US$69 million) in the June quarter, in line with the project plan. The majority of this capital expenditure was on development, the ventilation shaft deepening and infrastructure, trackless equipment, as well as construction of the new tailings dam facility.

Notional cash expenditure increased from R401,391 per kilogram (US$1,789 per ounce) in the March quarter to R424,894 per kilogram (US$1,949 per ounce) in the June quarter mainly due to the higher operating costs and higher capital expenditure.