Australasia region

Australia

St Ives

Gold production increased from 108,700 ounces in the June quarter to 115,000 ounces in the September quarter on the back of increased throughput at the Lefroy mill.

At the underground operations, ore mined increased from 401,600 tonnes at 4.5 grams per tonne in the June quarter to 427,000 tonnes at 4.9 grams per tonne in the September quarter. The increased tonnes were generated from the Athena mine which reached commercial levels of production during the September quarter, as scheduled. Improved grades were mainly from Argo, after some lower grade areas were mined in the June quarter.

At the open pit operations total ore tonnes mined decreased from 1,038,000 tonnes at 1.7 grams per tonne in the June quarter to 992,000 tonnes at 1.5 grams per tonne in the September quarter. The decrease in the September quarter was due to fleet moving from mining operations to pre-strip operations in line with the mine schedule. Ore was predominantly sourced from the lower grade Leviathan pit during the quarter while pre-stripping progressed at the Formidable, Mars/Minotaur link and Diana pits. These pits are scheduled to come into production in the December 2011 quarter.

Total tonnes processed was similar quarter on quarter at 1.68 million tonnes and 2.1 grams per tonne. At Lefroy, tonnes milled increased from 1.15 million tonnes to 1.24 million tonnes, at a similar head grade of 2.8 grams per tonne. Gold produced from Lefroy increased from 100,700 ounces to 106,600 ounces. At the heap leach facility gold production increased from 8,000 ounces to 8,400 ounces due to improved recoveries.

Net operating costs increased from A$103 million (R740 million) in the June quarter to A$106 million (R791 million) in the September quarter. The increase in costs was due to a greater drawdown of open pit stockpiles. Total cash cost decreased from A$959 per ounce (US$1,015 per ounce) to A$927 per ounce (US$978 per ounce) as a result of the higher gold production.

Operating profit increased from A$51 million (R365 million) to A$81 million (R599 million) due to the increased production and the higher gold price.

Capital expenditure increased from A$39 million (R275 million) to A$52 million (R384 million) with the majority of additional expenditure incurred in pre-stripping the Formidable, Mars/Minotaur link and Diana pits.

Notional cash expenditure increased from A$1,295 per ounce (US$1,371 per ounce) in the June quarter to A$1,328 per ounce (US$1,401 per ounce) in the September quarter due to the increased capital expenditure. The NCE margin increased from 9 per cent to 18 per cent.

Agnew

Gold production increased from 50,400 ounces in the June quarter to 53,700 ounces in the September quarter.

Ore mined from underground decreased from 183,000 tonnes at a head grade of 8.8 grams per tonne in the June quarter to 148,000 tonnes at a head grade of 11.1 grams per tonne in the September quarter. Underground tonnes were negatively impacted by rehabilitation work in the Rajah orebody and a delay in completing necessary infrastructure in the Main orebody. Both of these issues have since been overcome. Ore mined from the Songvang open pit increased from 90,000 tonnes to 135,000 tonnes at a consistent head grade of 1.7 grams per tonne. Gold production from Songvang increased from 2,900 ounces to 9,600 ounces quarter on quarter.

Tonnes processed increased from 231,000 tonnes in the June quarter to 262,000 tonnes in the September quarter, with a decrease in the combined yield from 6.8 grams per tonne to 6.4 grams per tonne, as the tonnes mined from underground were supplemented with lower grade surface material from the Songvang open pit.

Net operating costs increased from A$32 million (R227 million) in the June quarter to A$35 million (R262 million) in the September quarter, mainly due to the increased ore production from the Songvang open pit during the quarter. Total cash cost per ounce increased from A$641 per ounce (US$679 per ounce) to A$667 per ounce (US$704 per ounce) as more ounces were produced from the higher cost open pit source.

Operating profit increased from A$41 million (R291 million) in the June quarter to A$55 million (R404 million) in the September quarter due to increased production and a higher gold price.

Capital expenditure increased from A$17 million (R124 million) in the June quarter to A$20 million (R151 million) in the September quarter. This included A$9 million spent on underground development and A$4 million on a new ventilation system, incorporating a return air shaft and primary ventilation fans for the extension of Waroonga underground mine.

Notional cash expenditure increased from A$979 per ounce (US$1,037 per ounce) in the June quarter to A$1,047 per ounce (US$1,105 per ounce) in the September quarter due to increased capital expenditure. The NCE margin increased from 31 per cent to 37 per cent.