Quarter ended 30 September 2011 compared with quarter ended 30 September 2010

Group attributable equivalent gold production decreased by 1 per cent from 908,000 ounces for the quarter ended September 2010 to 900,000 ounces for the quarter ended September 2011.

At the South African operations gold production decreased from 497,000 ounces to 428,300 ounces. The majority of this decrease was due to the wage-related industrial action during the quarter, safety-related stoppages and slightly lower yields. KDC’s gold production decreased from 323,400 ounces to 279,200 ounces. Beatrix’s gold production decreased from 102,900 ounces to 84,700 ounces and South Deep’s gold production decreased from 70,700 ounces to 64,400 ounces.

At the West African operations, total managed gold production decreased from 242,000 ounces for the quarter ended September 2010 to 234,400 ounces for the quarter ended September 2011. At Tarkwa, gold production decreased from 185,500 ounces to 180,000 ounces due to slightly lower grades fed to the CIL plant. At Damang, gold production decreased from 56,500 ounces to 54,300 ounces.

In South America, gold equivalent production at Cerro Corona decreased from 105,800 ounces in the September 2010 quarter to 93,900 ounces in the September 2011 quarter, due to anticipated lower gold and copper grades and a lower copper to gold price ratio.

At the Australasia operations gold production increased by 10 per cent from 153,200 ounces in the September 2010 quarter to 168,700 ounces in the September 2011 quarter. St Ives decreased from 117,900 ounces to 115,000 ounces due to lower underground and open pit grades. This decrease in gold output was despite an increase in mining volumes as a portion of the increased production was stockpiled at quarter end. Production at Agnew increased from 35,300 ounces to 53,700 ounces. An additional 9,600 ounces were produced from the Songvang open pit which commenced in the June quarter, with the balance from increased production at Kim, where poor ground conditions impacted production last year.

Revenue increased by 22 per cent from R9,053 million (US$1,230 million) to R11,060 million (US$1,570 million). The average gold price increased by 33 per cent from R289,329 per kilogram (US$1,223 per ounce) in the quarter ended September 2010 to R385,684 per kilogram (US$1,702 per ounce) in the September 2011 quarter. The Rand strengthened from US$1 = R7.36 to US$1 = R7.05 or 4 per cent, while the Rand/Australian dollar weakened by 13 per cent from A$1 = R6.59 to A$1 = R7.44. The Australian dollar strengthened 18 per cent from 90 cents to 106 cents to the US dollar.

Net operating costs increased by 5 per cent from R5,132 million (US$697 million) to R5,404 million (US$766 million). Total cash cost for the Group increased from R164,898 per kilogram (US$697 per ounce) to R192,997 per kilogram (US$851 per ounce) due to a decrease in managed gold production and the increase in operating costs.

At the South African operations, operating costs increased by 2 per cent from R3,075 million (US$418 million) for the September 2010 quarter to R3,131 million (US$444 million) for the September 2011 quarter. This was due to annual wage increases and the 28 per cent electricity tariff increase, partly offset by cost saving initiatives at the operations. Total cash cost at the South African operations increased from R195,627 per kilogram to R235,780 per kilogram as a result of the above factors and the decrease in production.

At the West African operations, net operating costs decreased from US$143 million in the September 2010 quarter to US$132 million in the September 2011 quarter. At Tarkwa, net operating costs decreased from US$108 million to US$102 million due to a gold-inprocess credit and the conversion to owner maintenance, partly offset by an increase in power and fuel costs. At Damang, net operating costs decreased from US$35 million to US$30 million. This decrease was due to a gold-in-process credit and cost savings as a result of the introduction of owner mining. Total cash cost for the region was similar year on year at US$617 per ounce.

At Cerro Corona in South America, net operating costs increased from US$39 million in the September 2010 quarter to US$41 million in the September 2011 quarter, in line with the increase in workers’ statutory participation in profit. Total cash cost increased from US$354 per ounce for the September 2010 quarter to US$494 per ounce for the September 2011 quarter mainly due to the lower equivalent production and an increase in the workers’ statutory participation in profits.

At the Australasia operations, net operating costs increased from A$109 million in the September 2010 quarter to A$142 million in the September 2011 quarter. At St Ives, net operating costs increased from A$84 million to A$106 million mainly due to increased waste normalisation charges as a result of mining more ounces from the more expensive Leviathan pit and the gold-in-process credit at the end of September 2010. At Agnew, net operating costs increased from A$25 million to A$35 million due to the increase in production from mining the Songvang open pit, which became operational earlier this year. Total cash costs for the region increased from US$735 per ounce for the September 2010 quarter to US$844 per ounce for the September 2011 quarter.

Operating profit increased from R3,921 million (US$533 million) to R5,655 million (US$804 million).

Non-recurring costs amounted to R167 million (US$24 million) compared with R138 million (US$19 million) in the September 2010 quarter and included voluntary separation packages and BPR costs at all the operations.

Government royalties increased from R218 million (US$30 million) in the September 2010 quarter to R305 million (US$43 million) in the September 2011 quarter driven by the increase in revenue and an increase in the rate at Tarkwa and Damang, from 3 per cent to 5 per cent with effect from 1 April 2011.

Taxation increased from R632 million (US$86 million) in the September 2010 quarter to R1,223 million (US$174 million) in the September 2011 quarter in line with the higher taxable income.

Net earnings attributable to owners of the parent amounted to R2,055 million (US$293 million), compared with earnings of R701 million (US$95 million) for the quarter ended September 2010.

Earnings excluding non-recurring items, gains and losses on foreign exchange, financial instruments and gains or losses of associates after taxation, amounted to R2,111 million (US$301 million) for the quarter ended September 2011, compared with R1,016 million (US$138 million) for the quarter ended September 2010.