South America region

Peru

Cerro Corona

		June 2011	March 2011
Gold produced	- 000’oz	41.1	40.6
Copper produced	- tonnes	9,814	9,685
Total equivalent gold produced	- 000’ eq oz	101.0	108.1
Total equivalent gold sold	- 000’ eq oz	101.5	112.2
Yield - gold	- g/t	0.8	0.8
- copper	- %	0.60	0.64
- combined	- g/t	1.8	2.1
Total cash cost	- US$/eq oz	408	387
Notional cash expenditure	- US$/eq oz	526	537
NCE margin	- %	62	61
Gold price *	- US$/oz	1,499	1,383
Copper price *	- US$/t	9,176	9,648

* Average daily spot price for the period used to calculate total equivalent gold ounces produced.

Gold produced increased from 40,600 ounces in the March quarter to 41,100 ounces in the June quarter. Copper production increased from 9,685 tonnes to 9,814 tonnes. Despite this, equivalent production decreased from 108,100 ounces to 101,000 ounces due to lower copper prices relative to gold prices in the June quarter. Concentrate with a payable content of 42,196 ounces of gold was sold at an average price of US$1,502 per ounce and 9,998 tonnes of copper were sold at an average price of US$8,444 per tonne, net of treatment and refining charges.

The higher gold and copper production in the June quarter was due to a 9 per cent increase in ore processed (1.72 million tonnes compared with 1.58 million tonnes in the previous quarter). The increased production was attributable to higher plant availability during the June quarter and higher throughput.

Total tonnes mined increased from 3.29 million tonnes in the March quarter to 3.48 million tonnes in the June quarter. Ore mined at 1.71 million tonnes was 2 per cent higher than the 1.67 million tonnes in the previous quarter, reflecting the higher plant availability and tonnage treated. The strip ratio for the June quarter was 1.04, compared with 0.97 in the previous quarter.

Gold yield was similar to the previous quarter at 0.8 grams per tonne, and copper yield was marginally lower at 0.60 per cent compared with 0.64 per cent in the March quarter.

Net operating costs decreased from US$44 million (R305 million) in the March quarter to US$38 million (R258 million) in the June quarter, mainly due to lower workers’ statutory participation in profits in line with lower earnings and a lower gold-in-process charge. Total cash cost increased from US$387 per equivalent ounce in the March quarter to US$408 per equivalent ounce in the June quarter, primarily due to lower equivalent ounces sold during the June quarter.

Operating profit decreased from US$112 million (R785 million) in the March quarter to US$104 million (R704 million) in the June quarter, due to the lower spot copper price received during the June quarter.

Capital expenditure was similar at US$16 million (R106 million) with expenditure mainly on the tailings facility.

Notional cash expenditure decreased from US$537 per equivalent ounce in the March quarter to US$526 per equivalent ounce in the June quarter mainly due to the effect of the lower working costs. The NCE margin increased from 61 per cent to 62 per cent.