Australasia region

St Ives

Gold production decreased by 8 per cent by from 120,300 ounces in the March quarter to 111,200 ounces in the June quarter, in line with the current mine schedule.

At the underground operations, ore mined decreased from 398,000 tonnes at 5.0 grams per tonne in the March quarter to 320,000 tonnes at 5.6 grams per tonne in the June quarter, reflecting reduced tonnage from Cave Rocks which is undergoing further development to open up new mining areas.

At the open pit operations, total ore tonnes mined increased from 1.10 million tonnes at 1.5 grams per tonne in the March quarter to 1.21 million tonnes at 1.5 grams per tonne in the June quarter. Planning for the transition to owner-operator is under way to ensure a smooth transition during the second half of 2012.

Total tonnes processed at 1.76 million tonnes and yield of 2.0 grams per tonne was similar to the March quarter. At the Lefroy mill, yield decreased from 2.9 grams per tonne in the March quarter to 2.7 grams per tonne in the June quarter, reflecting the reduced high-grade tonnes milled from underground ore sources. Throughput decreased from 1.22 million tonnes in the March quarter to 1.19 million tonnes in the June quarter. Gold production from Lefroy mill decreased from 113,000 ounces to 104,100 ounces. At the heap leach facility tonnes processed increased from 553,000 tonnes at a head grade of 0.81 grams per tonne in the March quarter to 566,000 tonnes at a head grade of 0.69 grams per tonne in the June quarter, resulting in decreased gold production from 7,300 ounces to 7,100 ounces.

Operating costs, including gold-in-process movements, decreased from A$106 million (R868 million) in the March quarter to A$103 million (R837 million) in the June quarter. The decrease in costs was due to a smaller drawdown of open pit stockpiles, compared with the March quarter, due to increased availability of fresh material from open pit operations. Total cash cost increased from A$861 per ounce (US$908 per ounce) to A$908 per ounce (US$920 per ounce) due to the lower ounces produced.

Operating profit decreased from A$86 million (R707 million) in the March quarter to A$75 million (R617 million) in the June quarter as a result of the lower production.

Capital expenditure increased from A$49 million (R402 million) to A$74 million (R606 million) due to increased expenditure on Cave Rocks mine development and a new tailings facility.

Notional cash expenditure increased from A$1,243 per ounce (US$1,310 per ounce) in the March quarter to A$1,561 per ounce (US$1,581 per ounce) in the June quarter due to an increase in capital expenditure and a decrease in production. The NCE margin decreased from 22 per cent to 3 per cent as a result of the higher NCE and lower revenue.

Agnew

Gold production was similar to the March quarter at 37,200 ounces.

Ore mined from underground increased from 113,000 tonnes at a head grade of 8.5 grams per tonne in the March quarter to 153,000 tonnes at a head grade of 7.9 grams per tonne in the June quarter. This represents an improvement on the previous quarter, although below target, due to the revised stoping plan at Main Lode as a result of complex ground conditions and the need to paste fill large areas of Kim to maintain the correct sequence for geotechnical stability. The lower grade was due to mining of the lower grade fringes of the Kim high grade core during this transition period.

Tonnes processed increased from 224,000 tonnes in the March quarter to 255,000 tonnes in the June quarter and included surface stockpile material from Songvang. The combined yield decreased from 5.1 grams per tonne in the March quarter to 4.5 grams per tonne in the June quarter, reflecting a build-up in gold-in-circuit at the end of the June quarter.

Net operating costs decreased from A$36 million (R293 million) in the March quarter to A$35 million (R285 million) in the June quarter, mainly due to the lower mining costs resulting from the closure of the Songvang pit. Total cash cost decreased from A$929 per ounce (US$979 per ounce) to A$916 per ounce (US$928 per ounce), mainly due to the lower operating cost.

Operating profit increased from A$23 million (R188 million) in the March quarter to A$24 million (R199 million) in the June quarter.

Capital expenditure increased from A$11 million (R92 million) in the March quarter to A$21 million (R173 million) in the June quarter. Capital expenditure included A$9 million on underground development, A$5 million on extensional exploration at the Waroonga underground complex, and A$5 million spent on mining equipment.

Notional cash expenditure increased from A$1,299 per ounce (US$1,369 per ounce) in the March quarter to A$1,507 per ounce (US$1,526 per ounce) in the June quarter, mainly due to the timing of capital expenditure. The NCE margin decreased from 18 per cent in the March quarter to 6 per cent in the June quarter due to the higher NCE.