West Africa region

Ghana

Tarkwa

Gold production was steady quarter on quarter at 180,000 ounces.

Total tonnes mined, including capital stripping, was similar to the June quarter at 28.8 million tonnes in the September quarter, despite production being affected by excessive rainfall during the quarter. Ore mined at 5.2 million tonnes was similar to the June quarter. Mined grade at 1.24 grams per tonne was marginally higher than the 1.23 grams per tonne achieved during the June quarter.

The total feed to the CIL plant decreased from 2.92 million tonnes in the June quarter to 2.84 million tonnes in the September quarter due to a harder blend of ore processed. Yield was similar at 1.4 grams per tonne. The CIL plant produced 131,000 ounces for the September quarter compared with the 129,400 ounces in the June quarter.

Total feed to the North and South heap leach pads decreased from 2.97 million tonnes to 2.76 million tonnes at a similar yield. The high pressure grinding roller (HPGR) at the South heap leach processed 0.81 million tonnes, similar to the performance achieved during the previous quarter. Feed to the North heap leach reduced from 2.15 million tonnes to 1.95 million tonnes due to mechanical failure of the primary crusher, which as a result was non-operational for seven days. The heap leach process produced 49,000 ounces, compared with 51,400 ounces in the June quarter. The decrease was attributable to the decreased tonnage stacked on both facilities.

Net operating costs increased from US$88 million (R596 million) in the June quarter to US$102 million (R717 million) in the September quarter. This increase was mainly due to a lower gold-in-process credit of US$8 million (R55 million) in the September quarter compared with a credit of US$21 million (R140 million) in the June quarter. Total cash cost increased from US$534 per ounce in the June quarter to US$606 per ounce in the September quarter, mainly as a result of the lower gold-in-process credit and a higher royalty payment due to the higher gold price received.

Operating profit increased from US$185 million (R1,257 million) to US$206 million (R1,455 million).

Capital expenditure decreased from US$52 million (R354 million) in the June quarter to US$47 million (R332 million) in the September quarter, with the tailings dam expansion and pre-stripping being the major expenditure items. The decreased expenditure this quarter was due to the completion in the previous quarter of the acquisition of additional mining fleet required for the year.

Notional cash expenditure decreased from US$889 per ounce to US$869 per ounce due to the decrease in capital expenditure. The NCE margin increased from 41 per cent to 49 per cent.

Damang

Gold production decreased from 56,300 ounces in the June quarter to 54,300 ounces in the September quarter mainly due to power interruptions from the state utility infrastructure (ECG). Initiatives are in place, due to the continual instability of the power supply, to generate an on-mine power supply, as well as to reduce reliance on the ECG by tying into the national grid.

Total tonnes mined, including capital stripping, increased from 5.7 million tonnes in the June quarter to 6.7 million tonnes in the September quarter. This increase is in line with the strategy to expose long-term ore reserves and to increase the delivery of fresh ore to the mill. Ore mined at 1.2 million tonnes was similar to the previous quarter.

Tonnes processed decreased marginally from 1.27 million tonnes in the June quarter to 1.23 million tonnes in the September quarter as a result of the power interruptions highlighted above.

Net operating costs decreased from US$34 million (R229 million) in the June quarter to US$30 million (R214 million) in the September quarter due to an increased gold-in-process credit. Total cash cost decreased from US$660 per ounce to US$651 per ounce.

Operating profit increased from US$51 million (R348 million) in the June quarter to US$63 million (R442 million) in the September quarter as a result of the higher gold price received and lower operating cost.

Capital expenditure increased from US$17 million (R113 million) in the June quarter to US$26 million (R185 million) in the September quarter, with pre-stripping, mining fleet acquisitions and US$6 million spent on the Greater Damang pre-feasibility study being the major items.

Notional cash expenditure increased from US$876 per ounce in the June quarter to US$1,107 per ounce in the September quarter as a result of the increased capital expenditure. The NCE margin decreased from 42 per cent to 35 per cent.