Investor Presentation
February 2011
African Barrick Gold
2010 Prelims Presentation
Disclaimer
Important Notice
This presentation has been provided to you for information purposes only. It does not constitute an offer, solicitation, invitation or inducement to purchase, subscribe or otherwise acquire or
to sell or otherwise dispose of any securities of African Barrick Gold plc ("ABG") or engage in any investment activity in connection with the capital of ABG in any jurisdiction. The information
or opinions contained in this presentation shall not form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment or investment
decision whatsoever in connection with ABG.
The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. ABG explicitly disclaims any
responsibility, obligation or undertaking to update or revise any information contained in this presentation after its date, whether as a result of new information, future events or otherwise.
No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any
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Certain information, statements, beliefs and opinions in this presentation are forward looking. Forward-looking statements are statements that are not historical facts. These statements
include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production,
operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates,"
"believes," "intends," "estimates" and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors. Although ABG’s management
believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various
risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those
expressed in, or implied or projected by, forward-looking information and statements contained in this presentation. Factors that could cause or contribute to differences between the actual
results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward
price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG’s ability
to successfully integrate future acquisitions, to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources
or reserves and to timely and successfully process its mineral reserves, trespass, theft and vandalism, changes in its business strategy, as well as risks and hazards associated with the
business of mineral exploration, development, mining and production. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any
forward-looking statements in this presentation speak only as of the date of this presentation and only reflect information available at the time of preparation. Subject to the requirements of
the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking
statements contained in this presentation, whether as a result of new information, future events or otherwise.
No statements made in this presentation regarding expectations of future profits are profit forecasts or estimates, and no statements made in this presentation should be interpreted to mean
that ABG’s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG or any other level.
You are reminded that you have received this presentation subject to the disclaimer and important notices contained herein and on the basis that you are a person to whom this presentation
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VIOLATION OF APPLICABLE SECURITIES LAWS.
1
ABG – a strong platform for growth
2
Location of assets
A major gold producer with significant growth optionality
Dar es Salaam
Buzwagi
Bulyanhulu
North Mara
Tulawaka
Mining operations
Over 700Koz of current gold production
Resource base of 26.9Moz
$434m net cash position
Four operating mines, stable environment
TANZANIA
Delivering on our strategy
3
Optimise
Expand
Grow Further grow asset base
organically and through
targeted acquisitions
Grow current production
through low capital high return
asset optimisation
Maintain efficient and
consistent production base
from existing operations
Growth – advanced projects complement strong financial position
4
Existing operations – Bulyanhulu
Three months
ended 31 March
Year ended
31 December
(Reviewed) 2011 2010 2010
Underground ore tonnes hoisted (ktpa) 267 245 958
Ore milled (ktpa) 253 231 954
Head grade (g/t) 8.9 9.0 9.2
Mill recovery (%) 91.8% 91.9% 92.2%
Ounces produced (oz) 66,265 61,669 259,873
Ounces sold (oz) 69,107 67,193 262,442
Cash costs/ounces sold ($/oz)
Cash costs/tonne milled ($/t)
584
159
513
149
539
148
Capital expenditure ($’000s) 16,216 13,401 80,539
5
Key operating statistics
Upper East
Zone
Existing
1.8km
decline
Optimisation project – Upper East Zone
Completed review of planning models and action plan
formulated
Dewatering and rehabilitation of existing decline underway
Feasibility study contract award made and work commenced
with completion targeted during the first half of 2011
Project execution decision following feasibility study
completion and work starting shortly after
Existing operations – North Mara
6
Key operating statistics
Three months ended
31 March
Year ended
31 December
(Reviewed) 2011 2010 2010
Tonnes mined (ktpa) 6,136 4,510 20,106
Ore tonnes mined (ktpa) 279 683 2,624
Ore milled (ktpa) 750 647 2,860
Head grade (g/t) 2.0 3.2 2.8
Mill recovery (%) 78.7% 81.2% 82.9%
Ounces produced (oz) 37,599 53,908 212,947
Ounces sold (oz) 35,950 54,468 218,684
Cash costs/ounces sold ($/oz)Cash costs/tonne milled ($/t)
76036
44537
472
36
Capital expenditure ($’000s) 27,675 16,460 91,442
Optimisation project – Gokona/Nyabigena Underground
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12300
12300
12500
12500
12700
12700
12900
12900
13100
13100
13300
13300 13500
500 500
600 600
700 700
800 800
900 900
1000 1000
1100 1100
1200 1200
1300 1300
1400 1400
GKD180W6
23m @ 8.61g/t
GKD214W2
17m @ 12.11g/t
GKD160 16m @ 11.9g/t
40 - 6020 - 40<20
60 – 80>80
Au_grammeter
200m
Stage 2 Pit
Proposed
Stage 3 Pit
Assays PendingDD Complete
Fault
Legend
Abandoned
Gokona Fault
Gokona West Fault
GKD169
30m @ 8.00g/t incl 4m @ 42.6g/t
GKD239
13m @ 6.71g/t incl 1m @ 74.3g/t
GKD240NSR
GKD242
13m @ 2.72g/t incl 6m @ 4.35g/t
GKD244
GKD246
GKD247W14m @ 8.78g/t & 7m @ 14.6g/t
Positive scoping study completed for the Gokona-Nyabigena
underground project
Feasibility study underway and scheduled for completion
during H1 2011
Initial high-grade resource of 370koz @ 8.29 g/t announced
during Q4 2010
Existing operations – Buzwagi
7
Key operating statistics
Three months ended
31 March
Year ended
31 December
(Reviewed) 2011 2010 2010
Tonnes mined (ktpa) 5,326 4,562 18,848
Ore tonnes mined (ktpa) 1,032 1,172 4,285
Ore milled (ktpa) 841 890 3,553
Head grade (g/t) 2.4 2.2 2.0
Mill recovery (%) 86.9% 80.2% 81.0%
Ounces produced (oz) 56,313 51,304 186,091
Ounces sold (oz) 54,101 51,082 198,221
Cash costs/ounces sold ($/oz)Cash costs/tonne milled ($/t)
66743
58534
685
38
Capital expenditure ($’000s) 2,984 5,434 29,781
Optimisation project – Golden Ridge satellite deposit
Infill resource drilling and metallurgical drilling completed
Geotechnical studies & metallurgical test work for feasibility
study completed
Environmental and social impact assessments continue
Initial mineral resource declared – 527Koz @ 2.94g/t
indicated and 152Koz @ 2.52g/t Inferred
Feasibility study on track for completion in H1 11
Existing operations – Tulawaka
8
Key operating statistics
Reflected as 70%
Three months ended
31 March
Year ended
31 December
(Reviewed) 2011 2010 2010
Underground ore tonnes hoisted (ktpa) 30 19 103
Ore milled (ktpa) 77 83 340
Head grade (g/t) 5.9 4.1 4.1
Mill recovery (%) 93.6% 93.6% 93.2%
Ounces produced (oz) 13,731 10,214 42,094
Ounces sold (oz) 12,845 11,980 44,736
Cash costs/ounces sold ($/oz)
Cash costs/tonne milled ($/t)
738
123
558
81
709
93
Capital expenditure ($’000s) (100%) 3,895 2,279 15,513
100m
20000 20100 20200 20300 20400 20500 20600 20700 20800
850 850
900 900
950 950
1000 1000
1050 1050
1100 1100
1150
1200 1200
West East
Surface
MINED OUT
PIT
2010 – Q4 Intersections
2010 – PRE Q4 Intersections
Reserve
Mined Stope
Level 10
ZONE
150ZONE
250
ZONE 400 ZONE 550MAGAZINE
ZONE
ZONE 800
1150
Underground exploration & definition drilling to extend the East
Zone underground resource continues
Drilling to date shows the mineralised quartz veins extend at
least down to Level 10 at Zone 150
Encouraging results show support for life of mine being further
extended
9
Exploration and Project Development Pipeline
10
2011 has started on track
Three months
ended
31 MarchYear Ended
31
December2011 2010
Operating results
Tonnes mined (kt) 11,760 9,337 40,016
Ore tonnes mined (kt) 1,608 2,119 7,970
Recovery rate (percent) 87.2% 85.0% 86.1%
Average grade (grams per ton) 3.2 3.5 3.3
Attributable Gold production
(ounces)1 173,907 177,095 700,934
Per ounce data ($)
Average spot gold price 1,386 1,109 1,225
Average realised gold price 1,392 1,110 1,240
Total cash costs per ounce sold 658 516 569
Three months ended
31 MarchYear Ended
31
December$’000s (Unaudited) 2011 2010
Revenue 266,627 221,618 975,021
Cost of sales (168,152) (136,470) (589,039)
Gross profit 98,475 85,148 385,982
Corporate administration (12,858) (7,617) (35,436)
Other charges (12,128) (5,088) (40,894)
Profit before net finance costs 73,861 72,595 310,854
Net finance expense (1,881) (487) (1,777)
Net profit before taxation 71,980 72,108 309,077
Taxation expense (20,168) (19,055) (86,471)
Net profit attributable to equity
shareholders50,362 53,054 218,103
EPS (cents) 12.3 12.9 53.2
2011 milestones
11
Golden Ridge – declaration of initial resource Completed
Nyanzaga Project – resource update Ongoing
Tulawaka - mine life extension to mid 2012 Completed
Bulyanhulu Upper East – completion of feasibility study Ongoing
Golden Ridge – completion of feasibility study Ongoing
North Mara Underground – completion of feasibility study Ongoing
Tulawaka – further mine life extension Ongoing
North Mara Underground – resource update Ongoing
Buzwagi – stabilise production at targeted run rate Ongoing
Deliver on operational targets Ongoing
12
Appendix
ABG Senior Management Team
13
Greg Hawkins, Chief Executive Officer
Greg Hawkins is the Chief Executive Officer of the ABG Group. He was previously employed by Barrick where he served as Chief
Financial Officer of the Australia Pacific Business Unit from June 2006 onwards. From 1999 to 2006, Greg served in finance
management roles for Barrick Australia/Africa, and for Homestake Mining before its acquisition by Barrick. He previously held roles
as the Finance Manager for Normandy Mining and as an Audit Manager for Deloitte.
Kevin Jennings, Chief Financial Officer
Kevin Jennings is the Chief Financial Officer of the ABG Group. He was previously employed by Barrick where he served as Vice-
President of Corporate Development. Kevin has held a variety of senior management positions in the mining industry over the last
ten years, including Director Business Optimisation at Xstrata plc, Director Strategic Business Analysis at Falconbridge Ltd, and CFO
at American Racing Equipment Inc, a wholly owned subsidiary of Falconbridge.
Marco Zolezzi, Chief Operating Officer
Marco Zolezzi is Chief Operating Officer of the ABG Group. Prior to this, he was Director of Technical Services for Barrick’s Australia
Pacific Region since 2006. Marco has held a number of senior project roles in the industry including five years with Newcrest Mining
as General Manager of the Telfer Mine and 13 years with WMC Resources in a number of senior operational and technical roles. He
has over 30 years of experience in complex open pit and underground operations in Australia and South Africa with a variety of
operational, technical and project management roles.
Andrew Wray, Head of Corporate Development and Investor Relations
Andrew Wray is the Head of Corporate Development and Investor Relations for the ABG Group. He was previously employed by JP
Morgan Cazenove in the Corporate Finance Team. Andrew has over 10 years of experience in advising a range of mining and other
companies in their capital-raising activities and in other strategic objectives. Prior to joining JP Morgan, he worked for the Kuwait
Investment Office in London, dealing with their portfolio of investments in Spain.
Peter Spora, Vice President - Exploration
Peter Spora is the Vice President, Exploration of the ABG Group. He was previously employed by Barrick where he served as
Principal Geologist Africa from 2006 to 2008 and Exploration Manager Africa from 2008. Peter has over 15 years of experience as a
geologist in Australia and Africa. He is currently the Chairman of the Exploration Committee of the Tanzanian Chamber of Minerals
and Energy, and is a member of the Society of Economic Geologists.
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