South America region

Peru

Cerro Corona

      Sept
2012
  June
2012
 
  Gold produced - 000’oz 41.3   39.8  
  Copper produced - tonnes 8,868   9,234  
  Total equivalent gold - 000’ eqoz 82.7   84.9  
  Total equivalent gold sold - 000’ eqoz 82.7   81.2  
  Yield - gold - g/t 0.8   0.8  
           - copper - % 0.6   0.6  
           - combined - g/t 1.6   1.6  
  Total cash cost - US$/eqoz 474   482  
  Notional cash expenditure - US$/eqoz 829   708  
  NCE margin - % 52   48  
  Gold price * - US$/oz 1,636   1,617  
  Copper price * - US$/t 7,648   7,956  

* Average daily spot price for the period used to calculate total equivalent gold ounces produced.

Gold produced increased from 39,800 ounces in the June quarter to 41,300 ounces in the September quarter. Copper production decreased from 9,234 tonnes to 8,868 tonnes. Equivalent gold produced decreased by 3 per cent from 84,900 ounces in the June quarter to 82,700 ounces in the September quarter. This decrease was as a result of less tonnes milled during the September quarter, due to the harder material processed in the September quarter and the lower copper price relative to the gold price (price factor) during the quarter. The September quarter price factor was 4.67 compared with 4.92 in the June quarter.

Concentrate with a payable content of 42,090 ounces of gold was sold at an average price of US$1,644 per ounce and 8,760 tonnes of copper was sold at an average price of US$7,045 per tonne, net of treatment and refining charges. Total equivalent gold sales amounted to 82,700 ounces for the September quarter, compared with 81,200 ounces in the June quarter.

Tonnes mined increased from 4.10 million tonnes in the June quarter to 4.37 million tonnes in the September quarter due to changes in the mine schedule. Ore mined increased by 8 per cent from 2.03 million tonnes to 2.19 million tonnes. Gold and copper yields were similar to the June quarter at 0.8 grams per tonne and 0.6 per cent respectively.

Ore processed decreased from 1.67 million tonnes to 1.57 million tonnes. Gold head grade increased from 1.13 grams per tonne to 1.26 grams per tonne and gold recovery decreased from 68.4 per cent to 67.9 per cent. Copper head grade remained constant at 0.68 per cent, with copper recovery increasing from 84.7 per cent to 86.1 per cent.

Operating costs, including gold-in-process movements, increased from US$35 million (R282 million) in the June quarter to US$37 million (R302 million) in the September quarter, mainly due to an increase in tonnes mined, repairs at the process plant and an increase in statutory workers participation in profits. Total cash cost decreased from US$482 per equivalent ounce to US$474 per equivalent ounce mainly due to the increase in ounces sold during September quarter.

Operating profit increased from US$76 million (R615 million) in the June quarter to US$107 million (R881 million) in the September quarter, mainly as a result of higher revenue due to price adjustments resulting from higher forward metal prices.

Capital expenditure increased from US$21 million (R165 million) in the June quarter to US$25 million (R206 million) in the September quarter. The higher expenditure was due to on-going construction activities at the tailings facility.

Notional cash expenditure increased from US$708 per equivalent ounce in the June quarter to US$829 per equivalent ounce in the September quarter. This increase was attributable to higher operating costs and capital expenditure as well as lower equivalent ounces produced. The NCE margin increased from 48 per cent in the June quarter to 52 per cent in the September quarter due to the higher gold price partly offset by the higher NCE in the September quarter.