Australasia region

St Ives

      Sept
2012
  June
2012
 
  Gold produced - 000’oz 106.6   111.2  
  Yield - heap leach - g/t 0.3   0.4  
            - milling - g/t 2.5   2.7  
            - combined - g/t 1.8   2.0  
  Total cash cost - A$/oz 890   908  
    - US$/oz 922   920  
  Notional cash expenditure - A$/oz 1,813   1,561  
    - US$/oz 1,879   1,581  
  NCE margin - % (13)   3  

Gold production decreased by 4 per cent from 111,200 ounces in the June quarter to 106,600 ounces in the September quarter in line with the current mine schedule.

At the underground operations, ore mined increased from 320,000 tonnes at 5.6 grams per tonne in the June quarter to 354,000 tonnes at 5.4 grams per tonne in the September quarter. This was as a result of increased tonnage from the slightly lower grade Cave Rocks.

At the open pit operations, total ore tonnes mined decreased marginally from 1.21 million tonnes at 1.5 grams per tonne in the June quarter to 1.19 million tonnes at 1.4 grams per tonne in the September quarter. The transition to owner-operator has commenced, with A$21 million of mobile equipment purchased during the quarter and A$31 million expended on the project to date. The total cost of the project is anticipated at A$92 million by completion date in 2014.

Total tonnes processed increased from 1.76 million tonnes at a yield of 2.0 grams per tonne in the June quarter to 1.85 million tonnes at a yield of 1.8 grams per tonne in the September quarter. Throughput at the Lefroy mill increased from 1.19 million tonnes to 1.23 million tonnes, partly offsetting the lower yield which decreased from 2.7 grams per tonne to 2.5 grams per tonne, reflecting the reduced grade milled from all ore sources. Gold production from the Lefroy plant decreased from 104,100 ounces to 100,600 ounces.

At the heap leach facility, tonnes processed increased from 566,000 tonnes at a head grade of 0.69 grams per tonne in the June quarter to 623,000 tonnes at a head grade of 0.68 grams per tonne in the September quarter. However, due to recovery times at the heap leach operation gold production decreased from 7,100 ounces to 6,000 ounces.

Operating costs, including gold-in-process movements decreased from A$103 million (R837 million) in the June quarter to A$96 million (R822 million) in the September quarter. The decrease in costs was due to a smaller drawdown of stockpiles, compared with the June quarter and reduced open pit costs. Total cash cost decreased from A$908 per ounce (US$920 per ounce) to A$890 per ounce (US$922 per ounce) due to the lower operating cost.

Operating profit at A$74 million (R636 million) in the September quarter was similar to the A$76 million (R617 million) recorded during the June quarter.

Capital expenditure increased from A$74 million (R606 million) to A$99 million (R833 million) due to increased expenditure on Bellerophon and Hamlet mine development and infrastructure, as well as the purchase of open pit mobile equipment due to the transition to owner-mining.

Notional cash expenditure increased from A$1,561 per ounce (US$1,581 per ounce) in the June quarter to A$1,813 per ounce (US$1,879 per ounce) in the September quarter due to the increase in capital expenditure and decrease in production. The NCE margin decreased from 3 per cent to a negative 13 per cent as a result of the higher NCE in the September quarter. Once capital, costs and production reach steady state during calendar 2013 the NCE is expected to be maintained at around A$1,250 per ounce.

Agnew

      Sept
2012
  June
2012
 
  Gold produced - 000’oz 47.6   37.2  
  Yield - g/t 5.6   4.5  
  Total cash cost - A$/oz 727   916  
    - US$/oz 754   928  
  Notional cash expenditure - A$/oz 1,078   1,507  
    - US$/oz 1,117   1,526  
  NCE margin - % 32   6  

Gold production increased by 28 per cent from 37,200 ounces in the June quarter to 47,600 ounces in the September quarter.

Ore mined from underground increased from 153,000 tonnes at a head grade of 7.9 grams per tonne to 191,000 tonnes at a head grade of 8.5 grams per tonne. This increase in tonnes and grades was mostly from the high grade Kim mine in accordance with the revised mining schedule for the second half of the year.

Tonnes processed increased from 255,000 tonnes in the June quarter to 265,000 tonnes in the September quarter, which included 77,000 tonnes of surface stockpile material processed from Songvang compared with 110,000 tonnes in the June quarter. The combined yield increased from 4.5 grams per tonne in the June quarter to 5.6 grams per tonne in the September quarter reflecting the increase in higher grade underground tonnes. The yield from the Songvang ore was similar quarter on quarter at 1.5 grams per tonne.

Net operating costs, including movements in gold-in-process, were similar to the June quarter at A$35 million (R300 million). Total cash cost decreased from A$916 per ounce (US$928 per ounce) to A$727 per ounce (US$754 per ounce) mainly due to the increased gold production.

Operating profit increased from A$24 million (R199 million) in the June quarter to A$40 million (R341 million) in the September quarter as a result of the 28 per cent increase in gold production.

Capital expenditure decreased from A$21 million (R173 million) in the June quarter to A$15 million (R124 million) in the September quarter. Capital expenditure included A$8 million on underground development and A$5 million on exploration. The decrease in expenditure in the September quarter was due to A$5 million spent on additional mining equipment in the June quarter.

Notional cash expenditure decreased from A$1,507 per ounce (US$1,526 per ounce) in the June quarter to A$1,078 per ounce (US$1,117 per ounce) in the September quarter, as a result of the increased gold production and the lower capital expenditure. The NCE margin increased from 6 per cent to 32 per cent due to the lower NCE.