Results centre

• Revenue of US$1,218 million, up 25% on 2010.
• EBITDA² of US$544 million, up 30% on 2010.
• Record cash margin² of US$895 per ounce, an increase of 33% on 2010.
• Net profit attributable to owners of US$275 million, with EPS of US67.0 cents, up 26% on 2010.
• Operational cash flow of US$498 million, an increase of 44% on 2010.
• Cash position of US$584 million as at 31 December 2011.
• Proposed final dividend of US13.1 cents per share; total dividend for 2011 of US16.3 cents per share, up 208% on 2010.

• Attributable gold sales¹ for the year of 699,539 ounces (Group sales¹ of 724,574 ounces), a 3% decrease on 2010.
• Attributable gold production¹ of 688,278 ounces (Group production¹ of 713,508 ounces), 2% below 2010 production.
• Increase in full year production at Bulyanhulu, Buzwagi and Tulawaka, with lower production at North Mara due to the planned focus on waste stripping.
• Cash costs² of US$692 per ounce, an increase of 22% on 2010 due principally to a combination of industry cost inflation, increased diesel usage and higher headcount.
• Launch of the ABG Development (Maendeleo) Fund, the largest community development fund in Tanzania.
• Highly successful drilling campaign at Nyanzaga led to a fourfold increase in the in-pit Mineral Resource at the Tusker deposit to 3.5Moz Au Indicated and 0.6Moz Au Inferred.

Our focus for 2011 was to continue to build on the foundations of 2010 and to have stable and consistent operational delivery. We have made significant progress in this respect despite the headwinds we faced, primarily from the unreliable power situation in Tanzania as well as the more generalised industry cost pressures. As a result of our continued capital investment and the recruitment of further operational expertise, we enter 2012 from a position of strength, having further enhanced our platform for future growth.

We are aiming to develop the business further through the following key objectives for 2012:

• achieving attributable group production between 675,000-725,000 ounces;
• maintaining total cash cost of between US$790-860 per ounce sold; and direct cash operating cost of between US$740–US$810 per ounce sold;
• increasing group throughput and recoveries;
• completing feasibility studies at our brownfield projects;
• achieving growth in our overall resource base;
• improving further our safety record;
• continuing the development of our sustainability practices; and
• continuing our focus on opportunities for strategic acquisitions to expand our footprint throughout Africa.

Given the mine sequencing at each of our operations together with the forecast grade profiles it is our expectation that our production is likely to be split 45:55 between the first and second halves of the year, with correspondingly higher cash costs in the first half of the year and lower in the second. At a mine level, our expectation is for broadly similar production levels to 2011 at our Bulyanhulu, Buzwagi and Tulawaka operations, with higher production expected at North Mara in the second half of the year, with the completion of the waste stripping programme and access to higher grade material.

During 2012, we expect to see additional cost pressures at Buzwagi as we will be mining close to the reserve grade of 1.5g/t, which will necessitate mining and processing significantly higher levels of ore in order to maintain production rates.

FY2011 Preliminary Results – February 2012 (PDF, 2.1MB)

FY2011 Preliminary Results Presentation – February 2012 (PDF, 1.6MB)