Group attributable equivalent gold production, increased by 17 per cent from 477,000 ounces for the March 2013 quarter to 557,000 for the March 2014 quarter, mainly due to the inclusion of production from the Yilgarn South assets in the March 2014 quarter.

At the South Africa region, gold production at South Deep decreased by 6 per cent from 1,959 kilograms (63,000 ounces) in the March 2013 quarter to 1,840 kilograms (59,200 ounces) in the March 2014 quarter.

At the West Africa operations, total managed gold production decreased by 10 per cent from 213,400 ounces for the March 2013 quarter to 191,900 for the March 2014 quarter. At Tarkwa, gold production decreased by 15 per cent from 170,100 ounces to 145,200 ounces mainly due to cessation of crushing and stacking operations at the heap leach facilities. At Damang, gold production increased by 8 per cent from 43,300 ounces to 46,700 ounces mainly due to higher mill throughput in the March 2014 quarter.

In South America, gold equivalent production at Cerro Corona increased by 5 per cent from 76,900 ounces in the March 2013 quarter to 80,500 in the March 2014 quarter mainly due to increased ore processed partially offset by lower gold and copper grades.

At the Australia operations, gold production increased by 68 per cent from 145,700 ounces in the March 2013 quarter to 245,200 in the March 2014 quarter mainly due to the acquisition of the Yilgarn South assets. At St Ives, gold production decreased by 5 per cent from 102,000 ounces to 96,600 ounces, mainly due to cessation of crushing and stacking at the heap leach facility and lower underground head grade. The heap leach facility produced 900 ounces in the March 2014 quarter compared with 4,900 ounces in the March 2013 quarter. At Agnew/Lawlers, gold production increased by 35 per cent from 43,700 ounces to 59,200 ounces, mainly due to the inclusion of Lawlers. At Darlot and Granny Smith gold production amounted to 22,900 ounces and 66,500 ounces, respectively.

Income statement

Revenue decreased by 11 per cent from US$805 million in the March 2013 quarter to US$715 million in the March 2014 quarter due to the lower gold price received. The average gold price decreased by 21 per cent from US$1,625 per ounce to US$1,283 per ounce. The average Rand/US dollar exchange rate weakened by 22 per cent from R8.89 in the March 2013 quarter to R10.85 in the March 2014 quarter. The average Rand/Australian dollar exchange rate weakened by 5 per cent from R9.22 to R9.70. The average Australian/US dollar exchange rate weakened by 14 per cent from A$1.00 = US$1.04 to A$1.00 = US$0.89.

Net operating costs increased by 5 per cent from US$401 million to US$423 million.

At South Deep in South Africa, net operating costs increased by 5 per cent from R679 million (US$76 million) in the March 2013 quarter to R714 million (US$66 million) in the March 2014 quarter. This was mainly due to annual wage increases, an increase in employees and the increase in the electricity tariff. All-in sustaining costs of US$1,345 per ounce and total all-in cost of US$1,597 per ounce in the March 2014 quarter compared with US$1,823 per ounce and US$2,225 per ounce, respectively, in the March 2013 quarter.

At the West Africa operations, net operating costs decreased by 19 per cent from US$169 million in the March 2013 quarter to US$137 million in the March 2014 quarter. At Tarkwa, net operating costs decreased by 29 per cent from US$135 million to US$96 million. Annual wage increases and increased power rates were offset by cost reductions as well as lower contractor and consumable stores costs resulting from the heap leach closure. Net operating costs were also lower due to a smaller drawdown of stockpiles in the March 2014 quarter, specifically, the drawdown of stockpiles of US$1 million in the March 2014 quarter compared with US$11 million in the March 2013 quarter. At Damang, net operating costs increased by 21 per cent from US$34 million to US$41 million due to the US$5 million larger gold-in-process credit in the March 2013 quarter. All-in sustaining costs and total all-in cost for the region amounted to US$1,039 per ounce in the March 2014 quarter compared with US$1,358 per ounce in the March 2013 quarter.

At Cerro Corona in South America, net operating costs decreased by 37 per cent from US$38 million in the March 2013 quarter to US$24 million in the March 2014 quarter mainly due to less employees following retrenchments in the second half of 2013 and the lower reagents and grinding media prices, as well as a higher build-up of inventory in March 2014. Gold-in-process credit of US$13 million due to shipment schedules at the end of the March 2014 quarter compared with gold-in-process credit of US$5 million at the end of the March 2013 quarter. All-in sustaining costs and total all-in cost amounted to US$97 per ounce in the March 2014 quarter compared with US$150 per ounce in the March 2013 quarter. All-in sustaining costs and total all-in cost, on a gold equivalent basis amounted to US$581 per ounce in the March 2014 quarter compared with US$794 per ounce in the March 2013 quarter.

At the Australia operations, net operating costs increased by 92 per cent from A$114 million (US$119 million) in the March 2013 quarter to A$219 million (US$196 million) in the March 2014 quarter mainly due to the inclusion of the Yilgarn South assets.

At St Ives, net operating costs increased from A$85 million (US$88 million) to A$97 million (US$87 million) mainly due to a A$9 million larger gold-in-process charge as well as a 12 per cent increase in underground ore mined in the March 2014 quarter. At Agnew, net operating costs increased by 40 per cent from A$30 million (US$31 million) to A$42 million (US$37 million) due to additional costs from Lawlers. At Darlot, net operating costs were A$24 million (US$22 million). At Granny Smith, net operating costs were A$56 million (US$50 million). All-in sustaining costs and total all-in cost for the region amounted to A$1,234 per ounce (US$1,103 per ounce) in the March 2014 quarter compared with A$1,217 per ounce (US$1,263 per ounce) in the March 2013 quarter.

The Group all-in sustaining costs of US$1,066 per ounce and total all-in cost of US$1,114 per ounce in the March 2014 quarter compared with US$1,303 per ounce and US$1,476 per ounce, respectively, in the March 2013 quarter.

Operating profit decreased from US$404 million to US$292 million as a result of the above.

Amortisation for the Group increased from US$137 million in the March 2013 quarter to US$159 million in the March 2014 quarter due to the inclusion of the Yilgarn South assets, partially offset by lower amortisation at St Ives due to its lower cost base as a result of the December 2013 quarter impairments.

Net interest paid increased from US$10 million to US$19 million due to an increase in borrowings during the second half of 2013.

The share of equity accounted losses after taxation decreased from US$9 million to US$1 million and related to the ongoing study and evaluation costs at the Far Southeast project (FSE). This decrease reflects the Group’s decision in May 2013 to deliberately cut back on Growth and International projects expenditure.

Exploration expenditure, which is all greenfields expenditure (brownfields expenditure is capitalised), decreased from US$24 million to US$12 million due to the Group’s decision to deliberately reduce expenditure on greenfields exploration activities, in favour of increased brownfields exploration.

The Group did not incur any expenditure on feasibility and evaluation costs in the March 2014 quarter compared with US$13 million in the March 2013 quarter in line with the above.

Non-recurring costs of US$27 million in the March 2014 quarter compared with US$44 million in the March 2013 quarter. The nonrecurring expenses in the March 2014 quarter included mainly retrenchment costs of US$19 million at all the operations of which US$16 million was incurred at the Ghanaian operations and US$5 million on the impairment of the Group’s associate stake in Bezant Resources PLC, acquired in January 2013.

The non-recurring expenses in the March 2013 quarter included US$5 million relating to business process re-engineering and restructuring costs mainly at South Deep and Tarkwa, as well as US$36 million relating to costs incurred on the unbundling of Sibanye.

Royalties of US$22 million in the March 2014 quarter compared with US$28 million in the March 2013 quarter, in line with the lower revenue.

Taxation of US$29 million in the March 2014 quarter compared with US$83 million in the March 2013 quarter. The reduction was due to lower profit before taxation.

Net earnings of US$2 million in the March 2014 quarter compared with net earnings of US$35 million in the March 2013 quarter.

Normalised earnings of US$21 million in the March 2014 quarter compared with normalised earnings of US$68 million in the March 2013 quarter.

Cash flow

Cash inflow from operating activities for continuing operations of US$198 million in the March 2014 quarter compared with US$200 million in the March 2013 quarter.

Cash outflows from investing activities for continuing operations decreased from US$257 million to US$144 million, mainly due to lower capital expenditure.

Capital expenditure decreased from US$244 million in the March 2013 quarter to US$141 million in the March 2014 quarter due to a deliberate cut back in response to the lower gold price and due to key infrastructure required for the production build-up having been largely completed at South Deep. At the South Africa region, capital expenditure at South Deep decreased from R551 million (US$62 million) to R282 million (US$26 million).

At the West Africa region, capital expenditure decreased from US$99 million to US$46 million mainly due to no capital waste strip at Damang and lower capital expenditure on mining fleet at Tarkwa. In South America, at Cerro Corona, capital expenditure decreased from US$14 million to US$7 million due to lower expenditure on the tailings storage facility. At the Australia region, capital expenditure increased from A$55 million (US$57 million) to A$71 million (US$63 million). Lower expenditure at St Ives and Agnew were offset by the inclusion of the Yilgarn South assets.

Net cash inflow before dividends and financing amounted to US$54 million in the March 2014 quarter compared to a net cash outflow of US$46 million in the March 2013 quarter.

Net cash inflow from financing activities for continuing operations of US$9 million in the March 2014 quarter compared with US$116 million in the March 2013 quarter. Both related to long term and short term loans received and repaid.

The net cash inflow for continuing operations of US$47 million in the March 2014 quarter compared with an outflow of US$3 million in the March 2013 quarter. After accounting for a positive translation adjustment of US$2 million, the cash inflow for continuing operations in 2014 was US$49 million. The cash balance at the end of March 2014 was US$374 million compared with US$569 million at the end of March 2013.