Review of Operations (Unreviewed)

Quarter ended 31 December 2018 compared with quarter ended 30 September 2018

South Africa region

South Deep Project

Regrettably, a tragic accident occurred on 12 October 2018 fatally injuring Mr. Ananias Mosololi. The mine was issued with a Section 54 instruction, halting mobile machinery and secondly to conduct an investigation. A partial upliftment was issued on 18 October 2018 with a full upliftment on 31 October 2018. 18 days of production was either lost or significantly impacted.

South Deep embarked on a restructuring process as reported in the September quarter. The prescribed consultation process was concluded on 28 October 2018 culminating in the retrenchment of 1,092 permanent employee’s and 420 contractors. The majority union, the NUM, obtained a certificate of non-resolution from the CCMA and issued a notice of intended industrial action on 31 October 2018. The protected industrial action commenced on 2 November 2018 and lasted 6 weeks. Employees participating in the industrial action blocked all roads to the mine, limiting access and the ability to continue with any mining operations. Production was therefore suspended and essential services continued intermittently when access was possible. Negotiations with all levels of the union (branch, regional and national) concluded on 18 December 2018 with the signing of a new agreement that ended the industrial action. The mine resumed operations gradually from 15 December 2018. The process had a profound impact on production with the operations suspended for 41 days with a preceding “go slow” and acts of sabotage. It took an additional 8 days to start-up the underground sections post 15 December 2018.

Gold production subsequently decreased by 78 per cent from 1,539 kilograms (49,489 ounces) in the September quarter to 343 kilograms (11,019 ounces) in the December quarter.

Total underground tonnes mined decreased by 75 per cent from 319,000 tonnes in the September quarter to 79,000 tonnes in the December quarter. Ore tonnes mined decreased by 78 per cent from 277,000 tonnes to 62,000 tonnes, while underground waste mined decreased by 60 per cent from 42,000 tonnes to 17,000 tonnes. Access development in the reef areas decreased by 76 per cent from 48,800 tonnes to 11,800 tonnes. It was constrained by continued ground support and rehabilitation requirements. Underground reef grade mined decreased by 24 per cent from 6.14 grams per tonne to 4.67 grams per tonne due to a decrease in stoping grade from 7.11 grams per tonne in the September quarter to 4.78 grams per tonne in the December quarter as a result of loading the remainder of the broken stoping volume from the suspended lower grade 87 1W area. Total gold mined from underground decreased by 84 per cent from 1,697 kilograms (54,600 ounces) in the September quarter to 280 kilograms (9,000 ounces) in the December quarter, in line with volumes and grade.

Total tonnes milled decreased by 59 per cent from 387,000 tonnes in the September quarter to 159,000 tonnes in the December quarter. Reef yield decreased 6 per cent from 5.63 grams per tonne to 5.30 grams per tonne in line with the lower reef grade.

Surface tailings material treated decreased by 4 per cent from 73,000 tonnes to 70,000 tonnes.

Gold recovered from underground amounted to 333 kilograms (10,700 ounces) and included 53 kilograms (1,700 ounces) released from gold-in-process. In addition, 10 kilograms (320 ounces) were recovered from the treatment of surface material.

Destress mining decreased by 70 per cent from 4,356 square metres in the September quarter to 1,323 square metres in the December quarter partly due to a new destress support design implemented in October 2018. In addition to the normal tendon and mesh support the design includes for shotcrete to be applied on the side walls over the mesh. This design will improve support effectiveness, excavation durability, reduce support rehabilitation cycles and reduce rock burst risk. Implementing the new design and catching up with the backlog of ground support in previously mined excavations, impacted destress progress negatively. However, the benefits of the new support protocols are expected to be significant.

Longhole stoping decreased by 84 per cent from 188,300 tonnes to 29,700 tonnes. Development decreased by 62 per cent from 1,190 metres in the September quarter to 452 metres in the December quarter. Development in the current mine areas decreased by 58 per cent from 518 metres in the September quarter to 217 metres in the December quarter. Development North of Wrench decreased by 54 per cent from 512 metres in the September quarter to 235 metres in the December quarter. New mine capital development on 100 level was suspended from the end of July 2018 as this activity was ahead of schedule and crews were re-allocated. New mine development amounted to 160 meters in the September quarter and to nil meters in the December quarter.

The current mine contributed 69 per cent of the total ore tonnes in the December quarter compared with 53 per cent in the September quarter with the balance from North of Wrench. The decrease in the North of Wrench contribution was mainly due to lower destress performance as discussed above. The tonnage contribution from longhole stoping decreased by 14 per cent from 59 per cent in the September quarter to 45 per cent in the December quarter due to lower stope availability.

Cost of sales before amortisation and depreciation decreased by 19 per cent from R941 million (US$66 million) to R763 million (US$52 million). Cost of sales before gold inventory change and amortisation and depreciation decreased from R975 million (US$69 million) in the September quarter to R638 million (US$43 million) in the December quarter mainly due to lower salaries and wages, contractors and consumable costs in the December quarter due to the industrial action. This was partially offset by a gold-in-process charge to cost of R125 million (US$9 million) in the December quarter compared with a credit to cost of R34 million (US$3 million) due to the drawdown of stockpiles in the December quarter.

Capital expenditure decreased by 17 per cent from R214 million (US$15 million) in the September quarter to R177 million (US$12 million) in the December quarter.

Sustaining capital expenditure increased by 5 per cent from R146 million (US$10 million) in the September quarter to R153 million (US$11 million) in the December quarter due to an increase in major component and rebuild costs for the mine’s fleet. Non-sustaining capital expenditure decreased by 65 per cent from R69 million (US$5 million) to R24 million (US$1 million) due to the suspension of the new mine development.

All-in sustaining costs increased by 142 per cent from R758,304 per kilogram (US$1,663 per ounce) in the September quarter to R1,834,112 per kilogram (US$3,906 per ounce) in the December quarter mainly due to lower gold sold and higher sustaining capital expenditure, partially offset by lower cost of sales before amortisation and depreciation.

Total all-in cost increased by 134 per cent from R804,998 per kilogram (US$1,764 per ounce) in the September quarter to R1,881,395 per kilogram (US$3,986 per ounce) in the December quarter due to the same reasons as for all-in sustaining costs, partially offset by lower non-sustaining capital expenditure.

West Africa region

Ghana

Tarkwa

Gold production increased by 6 per cent from 126,500 ounces in the September quarter to 134,000 ounces in the December quarter mainly due to higher yield.

Total tonnes mined, including capital waste stripping, increased by 2 per cent from 22.0 million tonnes in the September quarter to 22.5 million tonnes in the December quarter. Ore tonnes mined increased by 14 per cent from 3.5 million tonnes to 4.0 million tonnes due to increased mining volumes at Pepe and Akontansi pits in line with the mining plan.

Operational waste tonnes mined increased by 12 per cent from 6.7 million tonnes to 7.5 million tonnes due to accelerated mining at Akontansi and Pepe pits to expose ore. Capital waste tonnes mined decreased by 7 per cent from 11.8 million tonnes to 11.0 million tonnes. Mined grade increased by 2 per cent from 1.21 grams per tonne to 1.23 grams per tonne. Gold mined increased by 15 per cent from 136,400 ounces to 157,200 ounces as a result of increased ore tonnes mined. The strip ratio decreased from 5.3 to 4.7.

The CIL plant throughput was similar at 3.5 million tonnes. Yield increased by 6 per cent from 1.14 grams per tonne to 1.21 grams per tonne mainly due to higher grade ore mined and processed.

Cost of sales before amortisation and depreciation, increased by 9 per cent from US$76 million to US$83 million mainly due to increased operational tonnes mined, partially offset by a gold-in-process credit to costs of US$4 million in the December quarter compared with a charge to costs of US$3 million in the September quarter.

Capital expenditure decreased by 11 per cent from US$38 million to US$34 million due to lower capital stripping.

All-in sustaining costs and total all-in cost decreased by 5 per cent from US$972 per ounce in the September quarter to US$924 per ounce in the December quarter due to higher gold sold and lower capital expenditure, partially offset by increased cost of sales before amortisation and depreciation.

Damang

Gold production decreased by 22 per cent from 51,300 ounces in the September quarter to 40,000 ounces in the December quarter mainly due to lower head grade and tonnes processed as a consequence of a planned 16 day plant shutdown to replace the SAG mill shell.

Total tonnes mined, including capital stripping, decreased by 7 per cent from 11.4 million tonnes in the September quarter to 10.6 million tonnes in the December quarter mainly due to space constraints at the Amoanda pit given its level of maturity, which was factored in to the operational plan.

Ore tonnes mined increased by 8 per cent from 1.32 million tonnes in the September quarter to 1.43 million tonnes in the December quarter mainly from Amoanda pit area where the ore zones are exposed. Total waste tonnes mined decreased by 9 per cent from 10.1 million tonnes to 9.2 million tonnes in line with the operational plan. Capital waste tonnes included in total waste tonnes decreased by 16 per cent from 8.1 million tonnes to 6.8 million tonnes due to lower stripping volumes from the Amoanda and Saddle pits which are at the later stages of the current cutback. Operational waste tonnes mined increased by 20 per cent from 2.0 million tonnes to 2.4 million tonnes also in line with the operational plan. In the December quarter total tonnes mined at Amoanda pit were 2.4 million tonnes and at DPCB were 8.2 million tonnes.

Head grade mined decreased by 13 per cent from 1.72 grams per tonne to 1.50 grams per tonne due to lower grade mined at the south of Amoanda pit. Gold mined decreased by 5 per cent from 72,700 ounces to 68,800 ounces. The strip ratio decreased from 7.7 to 6.4 due to exposed ore surfaces mined at the Amoanda pit.

Tonnes processed decreased by 10 per cent from 1.08 million tonnes in the September quarter to 0.97 million tonnes in the December quarter due to lower plant overall equipment availability as a result of a planned shutdown to replace the SAG mill shell. Yield decreased by 17 per cent from 1.55 grams per tonne to 1.28 grams per tonne due to lower feed grade mined as a consequence of an increase in stockpiled tonnes processed. The SAG mill shell replacement was completed ahead of schedule during December, by which time the target of 2018 has been achieved. The strategic decision was taken to feed additional tonnes from low grade stockpile in order not to jeopardise the 2019 plan, which required a high-grade stockpile as per the 2019 plan. In the December quarter, tonnes milled were sourced as follows: 0.84 million tonnes at 1.44 grams per tonne from the pits and 0.13 million tonnes at 1.03 grams per tonne from stockpiles. This compared with 1.02 million tonnes at 1.75 grams per tonne from the pits and 0.06 million tonnes at 1.07 grams per tonne from stockpiles in the September quarter.

Cost of sales before amortisation and depreciation, increased by 14 per cent from US$29 million to US$33 million mainly due to higher operating tonnes mined.

Capital expenditure decreased by 11 per cent from US$35 million in the September quarter to US$31 million in the December quarter as a result of lower capital waste tonnes mined.

Sustaining capital expenditure decreased by 25 per cent from US$4 million to US$3 million. Non-sustaining capital expenditure decreased by 10 per cent from US$31 million to US$28 million mainly due to lower capital waste mined (6.8 million tonnes in the December quarter compared with 8.1 million tonnes mined in the September quarter).

All-in sustaining costs increased by 37 per cent from US$682 per ounce in the September quarter to US$937 per ounce in the December quarter mainly due to lower gold sold and higher cost of sales before amortisation and depreciation, partially offset by lower sustaining capital expenditure.

All-in costs increased by 24 per cent from US$1,288 per ounce in the September quarter to US$1,601 per ounce in the December quarter due to the same reasons above, partially offset by lower non-sustaining capital expenditure.

At the end of the December 2018 quarter, and 24 months into the Damang Reinvestment Project (DRP), total material mined amounted to 86 million tonnes, 23 per cent ahead of the project schedule. Gold produced during the same period was 324,300 ounces, 38 per cent above the DRP ounces of 235,574. The new SAG mill shell has been installed successfully. The project capital spent to date is US$271 million versus the original DRP budget of US$228 million.

Asanko (Equity accounted Joint Venture)

Gold production of 59,800 ounces for the three months ended December 2018 compared with 39,100 ounces for the two months ended September 2018.

Total tonnes mined of 9.7 million tonnes for the three months ended December 2018 compared with 7.1 million tonnes for the two months ended September 2018. Ore tonnes mined of 1.4 million tonnes for the three months ended December 2018 compared with 1.2 million tonnes for the two months ended September 2018. Head grade mined of 1.51 grams per tonne for the three months ended December 2018 compared with 1.64 grams per tonne for the two months ended September 2018.

Total waste tonnes mined of 8.4 million tonnes for the three months ended December 2018 compared with 6.0 million tonnes for the two months ended September 2018. The strip ratio of 6.1 for the three months ended December 2018 compared with 5.1 for the two months ended September 2018.

The plant throughput of 1.2 million tonnes for the three months ended December 2018 compared with 0.9 million tonnes for the two months ended September 2018. Yield of 1.46 grams per tonne for the three months ended December 2018 compared with 1.54 grams per tonne for two months ended September 2018.

Cost of sales before amortisation and depreciation of US$53 million for the three months ended December 2018 compared with US$30 million for the two months ended September 2018 in line with the increase in production.

Sustaining capital expenditure for the three months ended December 2018 was US$10 million and non-sustaining capital expenditure was US$10 million mainly due to expenditure on the haul road and other expenditure related to the Esaase project. This compared with US$8 million and US$1 million for the two months ended September 2018 for sustaining and non-sustaining capital expenditure, respectively.

Gold Fields’ 45 per cent share of gold produced and gold sold amounted to 26,900 ounces and 27,800 ounces for the three months ended December 2018, respectively and 17,600 ounces and 18,100 ounces, respectively, for the two months ended September 2018. Gold Fields share of cost of sales before amortisation and depreciation was US$24 million for the three months ended December 2018 and US$14 million for the two months ended September 2018. Gold Fields share in sustaining capital expenditure for the three months ended December 2018 was US$5 million and US$4 million for the two months ended September 2018. Our share in non-sustaining capital expenditure for the three months ended December 2018 was US$5 million and US$nil for the two months ended September 2018.

All-in sustaining costs and total all-in for the three months ended December 2018 of US$1,105 per ounce and US$1,266 per ounce compared with US$1,018 per ounce and US$1,039 per ounce for the two months ended September 2018, respectively.

South America region

Peru

Cerro Corona

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

Gold production increased by 19 per cent from 40,700 ounces in the September quarter to 48,400 ounces in the December quarter due to higher grades mined and processed. Copper production increased by 5 per cent from 8,437 tonnes to 8,849 tonnes due to higher grade mined and processed. Equivalent gold production increased by 12 per cent from 83,200 ounces to 93,200 ounces mainly due to higher grade processed in line with the mining sequence.

Gold head grade increased by 18 per cent from 1.14 grams per tonne to 1.35 grams per tonne and gold recoveries increased from 66.1 per cent to 68.3 per cent, in line with the mining sequence. Copper head grade increased by 3 per cent from 0.58 per cent to 0.60 per cent and copper recoveries increased from 86.2 per cent to 90.3 per cent. Gold yield increased by 27 per cent from 0.77 grams per tonne to 0.98 grams per tonne due to higher head grade and recovery. Copper yield increased by 14 per cent from 0.51 per cent to 0.58 per cent due to higher head grade and recovery.

In the December quarter, concentrate with a payable content of 45,494 ounces of gold was sold at an average price of US$1,227 per ounce and 8,369 tonnes of copper was sold at an average price of US$5,426 per tonne, net of treatment and refining charges. This compared with 38,980 ounces of gold that was sold at an average price of US$1,206 per ounce and 8,191 tonnes of copper that was sold at an average price of US$5,335 per tonne, net of treatment and refining charges, in the September quarter.

Total tonnes mined decreased by 3 per cent from 5.44 million tonnes in the September quarter to 5.25 million tonnes in the December quarter mainly due to lower waste mined in line with the mining sequence. Ore mined increased by 5 per cent from 1.74 million tonnes to 1.82 million tonnes. Operational waste tonnes mined decreased by 7 per cent from 3.70 million tonnes to 3.43 million tonnes in line with the mining plan. The strip ratio decreased from 2.12 to 1.89.

Ore processed decreased by 6 per cent from 1.71 million tonnes to 1.60 million tonnes due to lower plant utilisation as a result of the planned plant shutdown in the December quarter.

Cost of sales before amortisation and depreciation, decreased by 3 per cent from US$39 million to US$38 million mainly due to a US$5 million gold-in-process credit to cost in the December quarter compared with US$1 million in the September quarter as a result of an increase in stockpiles.

Capital expenditure increased by 18 per cent from US$11 million to US$13 million due to an increase in construction activities at the tailings dam and reallocation of infrastructure related to expansion to 2030.

All-in sustaining costs and total all-in cost per gold ounce decreased by 43 per cent from US$443 per ounce in the September quarter to US$252 per ounce in the December quarter mainly due to higher by-product credits and increased gold sold, partially offset by increased capital expenditure. All-in sustaining costs and total all-in cost per equivalent ounce decreased by 6 per cent from US$691 per equivalent ounce to US$649 per equivalent ounce due to the same reasons as above, as well as higher gold equivalent ounces sold.

Australia region

St Ives

Gold production, decreased by 1 per cent from 89,200 ounces in the September quarter to 87,900 ounces in the December quarter. Total ore tonnes mined decreased by 25 per cent from 0.8 tonnes in the September quarter to 0.6 million tonnes in the December quarter.

Total underground ore tonnes mined increased by 17 per cent from 275,300 tonnes in the September quarter to 323,200 tonnes in the December quarter. At the Hamlet underground operation, ore tonnes mined decreased by 11 per cent from 83,300 tonnes in the September quarter to 73,800 tonnes in the December quarter.

Head grade increased by 10 per cent from 3.41 grams per tonne to 3.76 grams per tonne with higher grade stopes mined during the December quarter as per the mining schedule. Gold mined from Hamlet underground decreased by 2 per cent from 9,100 ounces to 8,900 ounces.

Operations at the Invincible underground mine continued to grow. Ore tonnes mined increased by 30 per cent from 192,000 tonnes in the September quarter to 249,400 tonnes in the December quarter. Head grade mined decreased by 10 per cent from 4.16 grams per tonne to 3.76 grams per tonne due to development carried out in December quarter in lower grade areas of the mine, resulting in a decrease in grades from development ore. Gold mined from Invincible underground increased by 17 per cent from 25,700 ounces to 30,100 ounces.

Total tonnes mined at the open pits, decreased by 30 per cent from 4.7 million tonnes in the September quarter to 3.3 million tonnes in the December quarter.

At the open pit operations, ore tonnes mined decreased by 50 per cent from 0.6 million tonnes in the September quarter to 0.3 million tonnes in the December quarter with Neptune open pit the only source of ore, following the completion of mining activities at the Invincible open pit stage 5 in the September quarter.

Grade mined from open pits, decreased by 40 per cent from 2.35 grams per tonne to 1.40 grams per tonne reflecting the lower grade ore mined from Neptune and no high grade ore delivered from Invincible following the completion of stage 5. Gold mined from the open pits decreased by 69 per cent from 41,600 ounces to 13,100 ounces. In the December quarter, tonnes mined were sourced as follows: 0.3 million tonnes at 1.40 grams per tonne from Neptune and nil from Invincible. This compared with 0.3 million tonnes at 3.28 grams per tonne from Invincible and 0.3 million tonnes at 1.15 grams per tonne from Neptune in the September quarter.

Operational waste tonnes mined decreased by 55 per cent from 1.1 million tonnes in the September quarter to 0.5 million tonnes in the December quarter and capital waste tonnes mined decreased by 17 per cent from 3.0 million tonnes to 2.5 million tonnes. The decrease in waste tonnes mined was due to the completion of Invincible stage 5 with the mining fleet utilised at Neptune open pit and also performing rehabilitation works at historic waste rock dumps. Total material movements at the open pits decreased by 30 per cent from 4.7 million tonnes to 3.3 million tonnes. The strip ratio increased from 7.4 to 10.6 driven by pre strip activity at Neptune.

Ounces mined at the total St Ives complex decreased by 32 per cent from 76,500 ounces in the September quarter to 52,200 ounces in the December quarter due to a 50 per cent reduction in ore tonnes mined at the open pits with the completion of mining activities at Invincible open pit stage 5. At the end of the December quarter, stockpiled Neptune high-grade oxide material amounted to 47,700 ounces (763,100 tonnes at 1.94 grams per tonne), Invincible amounted to 100 ounces (2,000 tonnes at 1.94 grams per tonne) and A5 amounted to 7,900 ounces (174,000 tonnes at 1.41 grams per tonne). This compared with Neptune high-grade oxide material which amounted to 65,300 ounces (997,700 tonnes at 1.57 grams per tonne), Invincible amounted to 32,200 ounces (227,200 tonnes at 2.55 grams per tonne) and A5 amounted to 7,900 ounces (174,000 tonnes at 1.46 grams per tonne), at the end of the September quarter. Currently, Lefroy mill can only sustain a 25 per cent oxide material blend. The excess Neptune oxide material is stockpiled and fed to the mill so as to maintain the optimum blend.

Throughput at the Lefroy mill was similar at 1.08 million tonnes. Yield decreased by 2 per cent from 2.58 grams per tonne to 2.53 grams per tonne due to lower grades mined.

Cost of sales before amortisation and depreciation, increased by 28 per cent from A$65 million (US$48 million) to A$83 million (US$60 million). The increase was due to a gold inventory charge to costs of A$16 million (US$12 million) in the December quarter compared with A$nil (US$nil) in the September quarter.

Capital expenditure decreased by 6 per cent from A$50 million (US$36 million) to A$47 million (US$34 million) due to lower capital development at Hamlet underground. Capital expenditure at Hamlet of A$nil (US$nil) in the December quarter compared with A$3 million (US$2 million) in the September quarter.

All-in sustaining costs and total all-in cost increased by 13 per cent from A$1,355 per ounce (US$993 per ounce) in the September quarter to A$1,533 per ounce (US$1,109 per ounce) in the December quarter due to higher cost of sales before amortisation and depreciation and lower gold sold, partially offset by lower capital expenditure.

Agnew/Lawlers

Gold production increased by 2 per cent from 61,300 ounces in the September quarter to 62,400 ounces in the December quarter mainly due to higher grades mined and processed.

Ore mined from underground decreased by 1 per cent from 301,800 tonnes in the September quarter to 297,400 tonnes in the December quarter. Head grade mined decreased by 7 per cent from 6.97 grams per tonnes to 6.49 grams per tonne mainly due to a decrease in ore mined from Waroonga’s high grade Bengal area in the December quarter. Gold mined decreased by 8 per cent from 67,700 ounces to 62,000 ounces due to lower grades mined. In the December quarter tonnes mined were sourced as follows: 153,800 tonnes at 8.2 grams per tonne from Waroonga and 143,600 tonnes at 4.6 grams per tonne from New Holland. This compared with 153,200 tonnes at 10.2 grams per tonne from Waroonga and 148,600 tonnes at 3.7 grams per tonne from New Holland in the September quarter.

Tonnes processed decreased by 10 per cent from 310,400 tonnes in the September quarter to 279,800 tonnes in the December quarter due to planned mill maintenance and unplanned jaw crusher maintenance in the December quarter. The combined yield increased by 13 per cent from 6.15 grams per tonne to 6.93 grams per tonne due to the processing of high grade stockpiled material sourced from Waroonga’s Bengal area in the September quarter, and the processing of a historic New Holland stockpile which returned a positive grade reconciliation.

Cost of sales before amortisation and depreciation, increased by 6 per cent from A$52 million (US$38 million) in the September quarter to A$55 million (US$39 million) in the December quarter mainly due to an increase in mining costs at Waroonga (A$3 million/US$2 million) as a result of increased ore development in the December quarter and mill maintenance cost (A$1 million/US$1 million) following the mill and crusher maintenance shutdown in the December quarter.

Capital expenditure increased by 13 per cent from A$24 million (US$18 million) to A$27 million (US$20 million) mainly due to increased expenditure on a new accommodation village in the December quarter.

All-in sustaining costs and total all-in cost increased by 9 per cent from A$1,300 per ounce (US$945 per ounce) in the September quarter to A$1,413 per ounce (US$1,013 per ounce) in the December quarter due to higher cost of sales before amortisation and depreciation and higher capital expenditure as well as lower gold sold.

Granny Smith

Gold production decreased by 2 per cent from 72,100 ounces in the September quarter to 71,000 ounces in the December quarter mainly due to lower tonnes processed.

Ore mined from underground increased marginally from 460,800 tonnes to 461,900 tonnes. Head grade mined increased by 4 per cent from 4.94 grams per tonne in the September quarter to 5.15 grams per tonne in the December quarter in line with the geotechnical sequencing. As a result, overall ounces mined increased by 5 per cent from 73,200 ounces in the September quarter to 76,500 ounces in the December quarter.

Tonnes processed decreased by 3 per cent from 478,700 tonnes in the September quarter to 464,000 tonnes in the December quarter due to timing of milling campaigns quarter on quarter. The yield increased by 2 per cent from 4.68 grams per tonne to 4.77 grams per tonne due to higher head grade mined.

Cost of sales before amortisation and depreciation, increased by 2 per cent from A$60 million (US$44 million) in the September quarter to A$61 million (US$44 million) in the December quarter mainly due to a A$1 million (US$1 million) increase in mining costs as a result of increased ore mined.

Capital expenditure decreased by 27 per cent from A$30 million (US$22 million) to A$22 million (US$15 million). The lower expenditure was due to lower mine capital development expenditure of A$3 million (US$2 million) with focus on ore development, lower exploration cost (A$3 million/US$2 million) and lower infrastructure expenditure following final payments for the new paste plant in the September quarter (A$3 million/US$2 million).

All-in sustaining costs and total all-in cost decreased by 8 per cent from A$1,311 per ounce (US$957 per ounce) to A$1,204 per ounce (US$862 per ounce) due to lower capital expenditure, partially offset by increased cost of sales before amortisation and depreciation and lower gold sold.