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HARNESSING THE BULL MARKET HARNESSING THE BULL MARKET FOR FREE CASH FLOW FOR FREE CASH FLOW Glenn Baldwin Executive Vice President and Head of Australasia Forward Looking Statements INTRODUCTION INTRODUCTION Certain statements in this

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HARNESSING THE BULL MARKET HARNESSING THE BULL MARKET FOR FREE CASH FLOW FOR FREE CASH FLOW Glenn Baldwin

Executive Vice President and Head of Australasia

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INTRODUCTION INTRODUCTION

Forward Looking Statements

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 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

  • r implied by such forward looking statements. Such risks, uncertainties

and other 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

  • f the AIDS crisis in South Africa. These forward looking statements speak
  • nly as of the date of this document.

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

  • f unanticipated events.
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UNHEDGED

Notional Cash Expenditure (NCE) Total cash costs + All Capital

FREE FREE CASH CASH FLOW FLOW

TARGET

~4 moz run rate annualised

NCE of ~US$725/oz @ R:US$8.00

(Copper at US$6,000/ton and Gold at US$800/oz)

SAFETY SAFETY

BUILDING UP TO 4 MOZ PRESENTED 9 MAY 2008

KEY DELIVERABLES KEY DELIVERABLES

Strategy To Release Value

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SOUND BASE STRATEGIC FOCUS

  • 1. Step Change In Safety
  • 2. Complete Infrastructure Rehabilitation
  • 3. Deliver Capital Growth Projects
  • 4. Sweat The Assets
  • 5. No M & A Heroics

Strategy To Release Value

GOALS ACHIEVED GOALS ACHIEVED

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Strategy To Release Value

STEP CHANGE IN SAFETY

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35

F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009

Fatal injury frequency rate Serious injury frequency rate

F2009 – year to March; Frequency Rate per million hours worked

IF WE CANNOT MINE SAFELY WE WILL NOT MINE IF WE CANNOT MINE SAFELY WE WILL NOT MINE

GOALS ACHIEVED GOALS ACHIEVED

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Tarkwa CIL Expansion

  • CIL plant expansion – commissioning problems

resolved

  • Achieving 1 mtpm design capacity

Cerro Corona Ramp-up

  • Achieving stability
  • Capital high in F2010 - completing starter dams
  • Delivered on production of 28 000 tons copper

and 140 000 oz gold

St Ives Underground

  • Underground mines increased production by 10%
  • Reserve Extensions at Belleisle and Argo
  • Athena: > 1moz of resource inventory
  • Conceptual study – Jun 09

Strategy To Release Value

MAJOR CAPITAL SPENT DELIVER CAPITAL PROJECTS

GOALS ACHIEVED GOALS ACHIEVED

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MEDIUM-TERM TARGET ~ 950K - 1 MOZ PER QUARTER

Strategy to Release Value

F2007

PRODUCTION INCREASING STEADILY

1 Attributable Production

Estimate Actual

F2009 F2008

GOALS ACHIEVED GOALS ACHIEVED

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300 350 400 450 500 550 600 650 700

Q1F08 Q2F08 Q3F08 Q4F08 Q1F09 Q2F09 Q3F09 Q4F09E

S

  • uth Afric

a Ghana Aus tralia Peru Group

US$/oz

Estimate Actual

Q4 estimate at US$1: R9.00

IMPACT OF INCREASED PRODUCTION CASH COSTS IMPROVING

KEY DELIVERABLES KEY DELIVERABLES

Strategy To Release Value

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50 100 150 200 250 300 350

Q1F 08 Q2F 08 Q3F 08 Q4F 08 Q1F 09 Q2F 09 Q3F 09 Q4F 09E

US $ 'm

S A G hana Aus tralia C erro C

  • rona

Estimate Actual

F2008 F2009 Q4 estimate at US$1: R9.00

CAPEX = US$225 MILLION PER QUARTER SOUTH DEEP CAPITAL BUILD UP IN F2010

Strategy To Release Value

GOALS ACHIEVED GOALS ACHIEVED

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300 400 500 600 700 800 900 1000 Q1F08 Q2F08 Q3F08 Q4F08 Q1F09 Q2F09 Q3F09 Q4F09E

S

  • uth Africa

Ghana Australia Peru Group NC E US$/oz

Estimate Actual

NCE TARGET

Q4 estimate at US$1: R9.00

STRONG CASH GENERATION NCE TARGET ACHIEVED

Strategy To Release Value

GOALS ACHIEVED GOALS ACHIEVED

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Strategy To Release Value

F2009 F2007 F2008

IMPROVED MARGINS CASH POSITIVE

GOALS ACHIEVED GOALS ACHIEVED

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  • F2010 Target

~ 300 koz p.a.

Accelerate South

Shaft refurbishment

Accelerate depletion

  • f current mine
  • F2014 Target

800 koz p.a

750 koz from

mechanised mining (Upper Elsburgs)

50 koz from low

profile mechanised mining (VCR)

OLD MINE CURRENT MINE PHASE 1 PHASE 2 SV1 AREA

South Shaft Complex SV-1 Shaft

UNCLE HARRY’S

Wrench Fault Twin Shaft Complex 110 L 95 L 87 L

300K OZ BY F2010 SOUTH DEEP BUILD-UP

SOUTH DEEP SOUTH DEEP

Strategy To Release Value

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ARGO Reserve : 1.37Mt@6.47g/t for 285Koz Resource : 4.42Mt @ 7.34g/t for 1.04Moz Drill Holes 1.5Moz 6.1m@6.1g/t 15m@14.3g/t 7.6m@7.4g/t Drill Holes 750Koz 12m@21.9g/t 9m@10.3g/t 13m@7.6g/t

Ounces are inventory unless otherwise indicated

ST IVES ST IVES

Strategy To Release Value

SIGNIFICANT CAMP DEVELOPING ARGO-ATHENA-HAMLET

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Resource

Historic Tailings Under- ground

Resource

mt

402 205 Metal grade - U3O8

g/t

55 95 Metal grade – Au

g/t

0.34

  • Metal content -

U3O8

mlbs

58 41 Metal content – Au

moz

4.2

  • Process
  • Drilling completed
  • SAMREC Resource in Jun 09
  • Pre feasibility studies close to

complete

  • External review – completed in

Jun 09

  • Combined bankable feasibility

study – completed by Dec 09

  • Board decision early 2010

THE FIFTH MINE IN SOUTH AFRICA

URANIUM URANIUM

Strategy To Release Value

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15 South America

TARGET: ~1 MOZ

West Africa

TARGET: ~1 MOZ

South Africa

Base load: ~2.3moz

Australasia

TARGET: ~1 MOZ

Leverage existing footprint Four autonomous, incentivized regions Rule of fives now rule of twos

Exploration success

REGIONALISATION REGIONALISATION

Strategy To Release Value

FOUR AUTONOMOUS REGIONS

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APP Nabire Bakti JV

Hualgayoc JV

Delamarian SBX JV’s Toodoggone JV SW Ghana Mt Carlton JV Agnew St Ives Jinshu JV Perth Santiago Denver Accra Exploration Offices Talas JV Lima Batangas JV Vancouver Bamako Northern Ghana Chucapaca JV Chucapaca Regional Tacna Sankarani Komana Mines Clancy JV’s Kisenge 100% Gold Fields JV’s Gold Fields Operated JV’s Partner Operated

REGIONALISATION REGIONALISATION

Strategy To Release Value

South America

TARGET: ~1 Moz

West Africa

TARGET: ~1 Moz

Australasia

TARGET: ~1 Moz

South Africa

BASE LOAD: ~2.3Moz to 2.5Moz

LEVERAGE OFF EXISTING FOOTPRINT

Komana and Sankarani

  • Camp-scale project
  • Multiple deposits feeding central mill
  • Reasonable infrastructure
  • Well developed gold industry

Komana and Sankarani

  • Camp-scale project
  • Multiple deposits feeding central mill
  • Reasonable infrastructure
  • Well developed gold industry

Talas JV

  • Preliminary resource – July 2009
  • Initial scoping study – Jan 2010
  • District scale potential – largely

untested

  • World class belt

Talas JV

  • Preliminary resource – July 2009
  • Initial scoping study – Jan 2010
  • District scale potential – largely

untested

  • World class belt

Near Mine Exploration Chucapaca

  • Exciting new discovery
  • Robust widths and grades
  • Scoping study – Mar 2010
  • 51% - 49% JV with Buenaventura

Chucapaca

  • Exciting new discovery
  • Robust widths and grades
  • Scoping study – Mar 2010
  • 51% - 49% JV with Buenaventura
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Greenfields Discovery Chucapaca JV (BVN)

EXPLORATION EXPLORATION

Heterolithic breccia Sedimentary breccia Quartzites Limestone - mudstone Sandstones Sandstones & shales Carbonaceous shales Drillholes LITHOLOGY

200 m

N

CP08-18A 45.7m @ 3.36g/t Au (176m) CP08-05 59.8m @ 3.13g/t Au, 15g/t Ag & 0.49% Cu (157m) 58.7m @ 1.94g/t Au (241m) CP08-20 130.1m @ 1.99g/t Au, 13.4g/t Ag & 0.36% Cu (122m) CP08-27 170m @ 3.3g/t Au (80m) Include 64m @ 5.8g/t (to EOH) CP08-21 54m @ 2.64g/t Au (246m) CP08-28 44.05m @ 8.95g/t (182.4m) CP08-14 95.8m @ 1.44g/t Au, 15.6g/t Ag & 0.2% Cu (42.6m)

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Komana and Sankarani JVs (GCE)

EXPLORATION EXPLORATION

BM East

Sindo Fie River Bada

Selen 1 Finguana W

FINGUANA BOKORO KABAYA S

YATELA SADIOLA LOULO SYAMA MORILA KALANA KOMAN KOMANA

Yanfolila belt

KOMANA WEST Section 1241800N Looking NE

KOMANA

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Talas JV

EXPLORATION EXPLORATION

250 500 km

Southern Tian Shan Northern and middle Tian Shan Major mesothermal-type gold deposits Porphyry Copper

Russia China Kazakhstan Tajikistan Uzbekistan Kyrgyzstan China

Daugystau 6 Moz. Muruntau 110 Moz. Zarmita n 6 Moz. Jilau 3 Moz.

Kumtor 10Moz. Oyu Tolgoi 50Moz

Kharmagtai > 5 Moz

Tashkent Bishkek Almat y Beijing Ulaanbata r

Suture Talas-Fergana Fault

Almalyk >2BT @ 0.4% Cu 0.4g/t Au

Tuwu

Talas JV +3Moz Mongolia

Arxi 5Moz

Requires a long term approach Building a presence

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WELL SUPPORTED FUNDAMENTALS COMPELLING

CONCLUSION CONCLUSION

The Gold Market

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+ Higher production + Lower input costs + Lower capex

CONCLUSION CONCLUSION

Strategy To Release Value Lower Lower NCE NCE

IMPROVED FREE CASH FLOW HIGHER GOLD PRICE