GROWING THE PRODUCTION PROFILE GENERATING FREE CASH FLOW BUILDING A - PowerPoint PPT Presentation

GROWING THE PRODUCTION PROFILE GENERATING FREE CASH FLOW BUILDING A GROWTH PIPELINE Q4 F2009 RESULTS Johannesburg Johannesburg 6 August 2009

2 Emergency Procedures INTRODUCTION INTRODUCTION • In the event of an emergency an alarm will sound. • Exit premises through doors on the north side of room. • Congregate on lawns to the north of the building. • Await further instructions • Await further instructions. SAFETY FIRST

3 Forward Looking Statement INTRODUCTION INTRODUCTION Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic business and political conditions in South important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Introduction Introduction Ni k H ll Ni k H ll Nick Holland Nick Holland d d Chief Executive Officer Chief Executive Officer

5 Programme INTRODUCTION INTRODUCTION Nick Holland Introduction Chief Executive Officer Paul Schmidt Financial Review Chief Financial Officer Vishnu Pillay South Africa Review Head of South Africa Glenn Baldwin Glenn Baldwin Australasia Review Head of Australasia Peter Turner West Africa Review West Africa Review H Head of West Africa d f W Af i Juan Luis Kruger South America Review Head of South America Head of South America Nick Holland Conclusion Chief Executive Officer

6 Q4 F2009: Salient Features INTRODUCTION INTRODUCTION Gold production • Up 4% to 906 koz. G ld P i Gold Price • Down 12% to R253,162/kg. D 12% t R253 162/k Cash costs • Down 6% to R140,916/kg. NCE • Down 5% to 203,042/kg. Operating profit • Down 16% to R3,338 million. Normalised earnings • Down 31% to R949 million. N t (l Net (loss)/profit )/ fit attributable to ordinary • R(293) million shareholders shareholders • Final dividend of R0.80 Final dividend (total for year R1.10) THIRD QUARTER OF PRODUCTION GROWTH

7 Q4 F2009: Salient Features INTRODUCTION INTRODUCTION Operational Turnaround Beatrix Beatrix Successful implementation of turnaround strategy. Cerro Corona A great quarter – achieving name plate capacity. A t t hi i l t it Mill commissioning issues resolved. Tarkwa Through-put approaching nameplate capacity Through put approaching nameplate capacity. F2010 Target of 300koz p.a. South Deep South Shaft Complex refurbished mechanised fleet in place South Shaft Complex refurbished, mechanised fleet in place. Build-up commenced. Driefontein and Kloof Re-stabilised after seismic accidents. Main development increased by 17%. Development & Flexibility 46% of flat end development mechanised. p PRODUCTION MACHINE STABILISED

8 Q4 F2009: Salient Features INTRODUCTION INTRODUCTION International Growth Pipeline St Ives, Athena & Hamlet Athena box-cut started, first ore Q1 F2011. Sino Gold 19.9% stake sold for US$282 million In Eldorado shares. Glencar board agrees to recommended offer of £28 million. Glencar Mining plc Ownership increased to 29.9%. Chucapaca Project Gold Fields now the operator. Resource definition drilling continues, scoping study by Q4 F2010. Talas Project Resource definition underway, internal scoping study due by Q4 F2010. UPGRADING THE GROWTH PORTFOLIO

9 What we delivered in F2009 INTRODUCTION INTRODUCTION Best safety year ever! Safety Establishing a safe production culture. Establishing a safe production culture. Fatalities reduced from 47 in F2008 to 21 in F2009. M j Major SA projects completed. SA j t l t d Infrastructure Rehabilitation I f t t R h bilit ti External audits nearing completion. 35km of critical support completed. Secondary Support 78% completion of “A priority” support. Ops plan supports F2014 target: 750koz to 800 koz. South Deep Ore body modelled: detailed design and schedule for build-up. Ore body modelled: detailed design and schedule for build up. Vent Shaft on track, sub 95 Level development increasing, Tailings Storage Facility contract awarded. STABILISING THE PRODUCTION MACHINE

10 What we delivered in F2009 INTRODUCTION INTRODUCTION International Growth Projects Cerro Corona, Tarkwa CIL expansion and new mines at St Ives completed. Regionalisation Strategy New strategic focus based on Regionalisation model rolled out. Growth Pipeline New near mine exploration pipeline defined. Greenfields portfolio upgraded four advanced exploration projects Greenfields portfolio upgraded, four advanced exploration projects. Uranium Resource defined, Feasibility Study due end Q2 F2010. MAJOR PROJECTS COMPLETED

11 What we delivered in F2009 INTRODUCTION INTRODUCTION F2009 Production Growth A GROWING PRODUCTION PROFILE

12 What we delivered in F2009 INTRODUCTION INTRODUCTION F2010 US$/oz Cost Analysis GROWING THE FREE CASH FLOW MARGIN

13 What we delivered in F2009 INTRODUCTION INTRODUCTION NCE FOR NINE MONTHS ENDED MARCH 2009 1000 903 900 783 785 773 774 800 679 700 600 S$/oz 500 400 US 300 300 200 100 0 A AngloGold Ashanti l G ld A h ti G ld Fi ld Gold Fields H Harmony Peer Average P A B Barrick Gold i k G ld Newmont N t NCE: Notional Cash Expenditure = total operating costs plus all capital Source: Company Reports, JP Morgan Note: Newmont does not report royalty costs separately. Royalty costs stated here are JP Morgan estimates and actuals could differ. NCE COMPETITIVE AGAINST OUR PEERS

14 What we delivered in F2009 INTRODUCTION INTRODUCTION Nick Holland Chief Executive Officer Vishnu Pillay Vishnu Pillay Head of South Africa Region Head of South Africa Region Glenn Baldwin Head of Australasia Region Juan Luis Kruger Jua u s uge Head of South America Region ead o Sout e ca eg o Peter Turner Head of West Africa Region Paul Schmidt Chief Financial Officer Michael Fleischer General Counsel Italia Boninelli Head of Human Resources Willie Jacobsz Head of Investor Relations Ben Zikmundovsky Head of International Projects & Technical Jimmy Dowsley Head of Corporate Development Tommy McKeith Head of Exploration FULL LEADERSHIP TEAM IN PLACE

Financial Review Financial Review P P Paul Schmidt Paul Schmidt l S h l S h idt idt Chief Financial Officer Chief Financial Officer

16 Salient Features FINANCIAL REVIEW FINANCIAL REVIEW Q4 F2009 Q3 F2009 906 871 Attributable gold production 000oz 8.56 9.93 Exchange rate ZAR/US$ 920 906 US$/oz 1,213 1,382 A$/oz R Revenue 253,162 289,095 R/kg 7,779 8,510 Rm 4,441 , 4,524 , Operating costs, net Operating costs, net Rm 3,338 3,986 Operating profit Rm Operating margin 43 47 % 140,916 140 916 150 301 150,301 R/kg R/kg Total cash costs 512 471 US$/oz 203,042 213,403 R/kg Notional cash expenditure (NCE) 738 668 US$/oz

17 Income Statement FINANCIAL REVIEW FINANCIAL REVIEW Q4F2009 Q3F2009 3,338 3,986 Operating profit Rm (1,067) (1,141) Amortisation & depreciation Rm 2,271 2,845 Net operating profit Rm (171) ( ) (164) ( ) Finance cost a ce cost Rm (76) 129 (Loss)/Gain on Foreign Exchange Rm 71 71 (5) (5) Gain/(Loss) on Financial Instruments G i /(L ) Fi i l I t t R Rm (158) (115) Other costs Rm (171) (134) Exploration Rm 1,766 2,556 Profit before tax & exceptional items Rm

18 Income Statement FINANCIAL REVIEW FINANCIAL REVIEW Q4F2009 Q3F2009 1,766 2,556 Profit before tax & exceptional items Rm (1,253) (203) Exceptional items Rm (657) (943) Mining & income tax Rm (144) ( ) 1,409 , Net (loss)/profit ( ) p Rm 149 103 Net profit attributable to minority shareholders Rm (293) (293) 1 307 1,307 R Rm Net (loss)/profit attributable to ordinary shareholders SA cps (46) 195 949 1,369 Rm Normalised earnings 140 204 SA cps