P. D. A. C. Mining Conference Toronto, Ontario, Canada March 6 9, - - PowerPoint PPT Presentation

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P. D. A. C. Mining Conference Toronto, Ontario, Canada March 6 9, 2011 Metro Toronto Convention Centre Cautionary note DISCLAIMER This Presentation is for information purposes in connection with the Avocet Mining PLCs (the


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SLIDE 1

March 6 – 9, 2011 Metro Toronto Convention Centre

  • P. D. A. C. Mining Conference – Toronto, Ontario, Canada
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SLIDE 2

Cautionary note

DISCLAIMER

  • This Presentation is for information purposes in connection with the Avocet Mining PLC‟s (the “Company‟s”) preliminary results presentation only.

While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly

  • disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility

for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

  • This Presentation may contain forward-looking statements regarding Avocet Mining PLC and its subsidiaries. These statements are based on various

assumptions made by the Company, which are beyond its control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or

  • ther comparable terminology. These forward looking statements are only predictions. Actual events or results may differ materially, and a number of

factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, such as filings made with the Oslo Stock Exchange or press releases.

  • This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and

nothing contained herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed in or sent into any jurisdiction where such distribution may be unlawful.

  • United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and

Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.

2

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SLIDE 3

Corporate overview

Market statistics*

OSE & AIM - AVM 218.0 p Market capitalisation US$698.7m Shares outstanding 197.5m Cash (31.01.11) US$51.7m Net debt (31.01.11) US$26.3m Enterprise value US$725.0m

Largest shareholders

  • Elliott

13.1 %

  • Datum

12.4 %

  • JP Morgan

9.7 %

  • BlackRock

7.7 %

Share price performance (12 months)

* All figures as of 18.02.11, unless otherwise stated

3

Directors

  • Russell Edey, Chairman
  • Harald Arnet
  • Mike Donoghue
  • Robert Pilkington
  • Barry Rourke
  • Brett Richards, CEO
  • Mike Norris, Finance Director

Exco

  • Brett Richards
  • Mike Norris
  • Peter Flindell
  • Richard Gray
  • Hans-Arne L‟orange

40 65 90 115 140 165 190 215 240 265

Feb-2010 May-2010 Aug-2010 Nov-2010 Feb-2011 AVOCET MINING GOLD FTSE GOLD MINES

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SLIDE 4

Q4 2010 operational highlights

Q4 Group gold production of 70,857 oz

  • Includes Inata production of 46,208 oz at a cash cost of US$511/oz

2010 full year production of 236,396 oz

  • Exceeded 2010 full year production guidance of 220,000 oz
  • 166% increase from previous year (2009: 109,548 oz)
  • 2010 Group cash cost: US$660/oz (2009: US$639/oz)

Inata plant expansion announced

  • LoM average production increase from 120,000 to 165,000 oz p.a.
  • US$25m of new capital in 2011 comprised of US$15m for third mining

fleet and US$10m for plant upgrades

Accelerated exploration programme initiated

  • 561,100 oz initial resource announced at Souma in Q4 2010
  • 200,000 m drilling campaign at Inata and surrounding Bélahouro district
  • Guinea: VTEM survey plus 100,000 m of drilling commenced in Q4 2010

4

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SLIDE 5

Cash and net debt

  • Cash at bank of

US$49.5m1

  • Net debt of

US$28.5m1

Project finance facility

  • US$65m project

finance facility with Macquarie Bank

  • Outstanding

balance1: US$53m

  • Repayment schedule
  • f US$6m per quarter

Gold hedge

  • 348,801 oz, at an

average US$970/oz1

  • Hedge delivery

schedule of ~25,000

  • z per quarter -

commenced Q3 2010

Corporate facility

  • US$25m corporate

revolving credit facility with Standard Chartered Bank, fully drawn

Financial summary

5

1 As of 31 December 2010

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SLIDE 6

Avocet in West Africa: 2010 achievements

 Commissioned Inata plant and ramp up to full production  Increased resources  Increased reserves and extend mine life  Identified larger mineralised structures within Bélahouro district  Commenced accelerated exploration programmes in Bélahouro  Announced maiden resource estimate at Souma Trend Commissioned second mining fleet at Inata  Initiated drilling programs on multiple projects in Guinea  Further increase Inata‟s reserves  Commission third mining fleet  Commission plant upgrades to enable LOM +165,000 oz p.a. plus surge  Guinean exploration: complete VTEM survey to identify drill targets

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SLIDE 7

Maximising value from South East Asian assets Realising and growing the potential of Inata Accelerated organic growth in West Africa Ready and prepared to act on value adding acquisitions News flow in 2011

Strategic direction and outlook

  • Conditional sale announced 24 December 2010
  • Cash consideration of US$200 million upon completion
  • Completion expected in Q2 2011
  • Resources and reserves updated in Q3 2010
  • On track for target of doubling Inata reserves by Q3 2011
  • Increase in plant capacity announced
  • 200,000 m drilling in and around Inata mining licence
  • Drilling commenced at Tri-K & Balandougou
  • Regular exploration updates in 2011
  • Continued review of M&A landscape in West Africa
  • Explorer and producer valuations in West Africa

irregularly calibrated at the moment 7

  • Regular drilling results throughout the year
  • Completion of sale of South East Asian assets (Q2)
  • Resource and reserve reports at Inata (Q2, Q3),

Koulékoun (Q2) and Balandougou (Q3)

  • Feasibility stage project within the Tri-K district (Q4)
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SLIDE 8
  • Successful production ramp up,

completed in Q3 2010

  • Production to increase from 137,732 oz

in 2010 to 165,000 oz in 2011

  • Cash costs competitive relative to West

African producers

  • Gold recoveries remain above

expectation at 93-95%

Inata: transforming the Company

8

  • 10,000

20,000 30,000 40,000 50,000 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Gold ounces produced

Gold production per quarter

Actual gold production Initial target: 120,000 oz p.a. equivalent Revised target: 165,000 oz p.a. equivalent

  • 100,000

200,000 300,000 400,000 500,000 600,000 700,000 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Ore tonnes processed

Ore tonnes processed per quarter

Actual tonnage processed Current nameplate capacity (2.25 Mt p.a.)

460 480 500 520 540 560 580 Q2 2010 Q3 2010 Q4 2010 Cash costs per ounce

Cash costs versus guidance

Inata cash costs Inata cost guidance (lower limit) Inata cost guidance (upper limit)

* Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5%

8

*

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SLIDE 9

Focused on West Africa

  • Conditional sale of assets in Asia for US$200

million cash announced Dec. 2010

  • Inata gold mine in Burkina Faso
  • 2010 production: 137,732 oz at US$531/oz
  • 2011 guidance: 165,000 oz
  • LoM cash costs: US$525-575/oz
  • 200,000 m drilling programme in progress

(DD/RC)

  • Targeting a doubling of Inata‟s reserves by Q3

2011

  • 100,000 m drilling programme in progress

(DD/RC)

  • Advancing Tri-K to feasibility study by year end

INATA (1.8 Moz) Tri-K (Koulékoun) (0.7 Moz) Bélahouro (0.6 Moz) Producing asset Exploration asset 100% Resources reported for each asset Mali Guinea Burkina Faso 9

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SLIDE 10

Conditional sale of South East Asian assets

  • Announced 24 December 2010
  • Completion expected in Q2 2011
  • Binding agreement signed for the

conditional sale of all South East Asian assets to J&Partners

  • J&Partners is a mining fund established by the

Indonesian family that sold Indonesia‟s 2nd largest mining contractor in November 2009

  • Following expiry of minority right of first refusal

exercise period, rights have either lapsed unexercised or been assigned to J&Partners; further issues remain to be addressed

  • Cash consideration of US$200m*
  • Initial consideration (received in escrow):

US$10m

  • Second tranche (received into escrow):

US$100m

  • Final tranche (on completion): US$90m

* On a cash free, debt free basis, and subject to working capital adjustment - actual proceeds may therefore be greater or less than US$200 million

10

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SLIDE 11

11

Operational review – Burkina Faso

Inata gold mine & Bélahouro district

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SLIDE 12

Gold mining and exploration in Burkina Faso

  • Mining code adopted in

2003

  • Stable political environment
  • 3-4 year tax holiday
  • 20% corporation tax
  • 3-5% royalty
  • 10% free carried interest
  • Rapidly expanding

mining sector

  • Only 1 gold mine operating in

2007

  • 6 gold mines operational
  • Mines produced over 700,000
  • unces in 2010
  • Over 20 listed gold

producers and explorers

  • perating in country

Prospective Birimian geology Gold deposit / resource 12 Inata (Avocet) 137,732 oz Mana (Semafo) 179,700 oz Youga (Etruscan) 82,400 oz Kalsaka (Cluff) 74,000 oz Essakane (IAMGold) 135,900 oz Taparko (High River) 120,000 oz * Producing gold mine; number of ounces shown represent 2010 gold production

* Taparko production for 12 months to 30 September 2010

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SLIDE 13

Inata: successful ramp-up completed

13

  • Q4 production: 46,208 oz
  • Increased 14% vs Q3 2010
  • Full year production of 137,732 oz
  • Production exceeded guidance of 120,000 oz
  • Costs in line with guidance of US$525-575/oz
  • Mining:
  • Ore mining in both Inata North and Central
  • Second mining fleet now fully operational and

mining rates now reflect new mine plan

  • Processing:
  • Operating above the 287 tph design capacity
  • Sustained high recoveries despite higher

throughput

Production statistics Q4 2010 Q3 2010 Ore mined (t) 638,000 481,000 Total movement (t) 5,007,000 3,100,000 Ore processed (t) 593,000 549,000 Average head grade (g/t) 2.68 2.43 Gold recovery rate (%) 94% 94% Gold production 46,208 40,461 132 114 209 211 170 201 511 526

  • royalties and overheads

Cash costs (US$/oz)

  • mining
  • processing

Total cash cost

  • Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that

government royalties for 2010 should be charged at 3% rather than 5%

  • Royalty rate from 2011: up to $1,000 Au price – 3%; $1,000 to $1,300 Au price – 4%;

>$1,300 Au price – 5%” *

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SLIDE 14

Inata: steady state production

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  • Increase in average life of mine production from

120,000 ounces p.a. to 165,000 ounces p.a. until 2016:

  • Based on increased Mineral Reserves (announced Q3

2010*) and further debottlenecking

  • Gold production to be maintained at current levels,

despite longer term decline in grade to reserve levels

  • Stripping to accelerate in Inata Central and South pits
  • Third mining fleet ordered and expected to commission

in Q3 2011

  • Higher strip ratio in 2011 likely to result in cash costs at

upper end of US$525-575/oz LoM range

  • Increase in production will further enhance

Avocet‟s exposure to the gold spot price

* Reserve increased by 25% to 1,081,500 ounces in Q3 2010

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SLIDE 15

Inata: understanding the potential

  • Latest drilling results announced 7 February 2011
  • 55,000 m of drilling completed
  • Assays received from 28,579 m of drilling, testing northern extensions of resource at Inata

North and Sayouba, as well as mineralisation below the current 1.84 Moz resource

Sayouba highlights:

  • 3 m @ 18.5 g/t Au from 31 m
  • 17 m @ 1.60 g/t Au from 81 m
  • 18 m @ 1.29 g/t Au from 158 m
  • incl. 5 m @ 2.81 g/t Au
  • 7 m @ 2.83 g/t Au from 125 m
  • incl. 3 m @ 5.86 g/t Au

Inata North highlights:

  • 39 m @ 3.01 g/t Au from 93 m
  • incl. 10 m @ 5.41 g/t Au
  • 28 m @ 3.13 g/t Au from 146 m
  • incl. 8 m @ 4.30 g/t Au
  • 29 m @ 2.23 g/t Au from 89 m
  • incl. 7 m @ 5.71 g/t Au

Inata North Inata Central Inata South Plant site 15 Sayouba

  • Near surface intercepts are broader than indicated by

previous wide-spaced exploration drill holes and of similar gold grade

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SLIDE 16

Bélahouro: VTEM survey results

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Gomde Barrage

WESTERN DOMAIN CENTRAL DOMAIN EASTERN DOMAIN

INATA Dynamite Miilam Gassel Garafo Fete Kole Pali Kourfadie Damba

Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology

Oka Gakinde

5km

Gomde Barrage

Key: Priority drilling target

N

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SLIDE 17

VTEM: multiple new targets highlighted

  • Multiple untested conductive units

west of Inata, highlighted by VTEM survey

  • Different geological setting to

Eastern Domain

  • Folded conductive units

(carbonaceous shale) surrounding

  • void conductive lows (granites)
  • Gold associated with folded

carbonaceous shale

  • Targets include:
  • Along-strike extensions to Inata
  • VTEM highlights multiple untested

conductive units west of Inata

3km

INATA MINING LICENCE Pali Kourfadie Damba Minfo Filio 17

Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology N

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SLIDE 18

Bélahouro: growing resources and reserves

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Programmes

Q4 ‘10 Jan ’11 Feb ‘11 Mar ‘11 Apr ‘11 May ‘11 Jun ‘11 Jul ‘11 Aug ‘11 Sep ‘11 Oct ‘11 Nov ‘11 Dec ‘11 Q1 ‘12 RC/DD drilling and resource model reports Inata mining licence D D D/R D R D R Filio D R Damba D D/R Kourfadie D Souma Trend R RAB Drilling Filio D Damba D Kourfadie D Key: Indicates period of exploration activity R = resource model report D = drilling results

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SLIDE 19

19

Operational review – Guinea

Tri-K, Balandougou, Kankan & Kolenda

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SLIDE 20

Gold mining and exploration in Guinea

Siguiri (7.8 Moz, Anglogold Ashanti) Kouroussa (1 Moz, Cassidy) Kineiro (1 Moz, SEMAFO) LEFA (5.2 Moz, Crew Gold) Prospective Birimian geology Gold deposit / resource Tri-K (0.7 Moz, Avocet)

  • Untapped mineral potential
  • Two +5Moz Au deposits
  • Three ~1Moz Au deposits
  • Extensive under-explored Birimian

geology

  • Two strongly mineralised belts extend

from Mali

  • Transition to civilian government
  • First free & fair election since 1952*
  • Elections concluded in December 2010,

declaring Alpha Condé as new president

* Based on views published by the Carter Centre (US-based NGO)

20 Project with gold resource in 2010 AVM permits

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SLIDE 21
  • Tri-K comprises three main licences:

Koulékoun, Kodiéran and Kodiafaran

  • Drilling of existing targets underway:
  • Goals of increasing Koulékoun resource and

establishing a maiden resource at Kodiéran

  • 48,000m RC drilling
  • 19,000m diamond drilling
  • Advancing Koulékoun to feasibility study in

2011

  • VTEM survey scheduled for H1 2011
  • Key stage in identifying new drill targets in

largely under-explored region

  • Total Tri-K resource target of 2 Moz

in 2011

  • Other programmes in Guinea:
  • Balandougou - mapping & RAB drilling
  • Kolenda & Kankan – trenching & RAB drilling

Tri-K: large mineralised region of Guinea

21

Koulékoun

666,500 ounces. Currently drilling

Kodiéran 1A

60 m @ 2.01 g/t Au 20 m @ 6.43 g/t Au Currently drilling

Kodiéran 1B

2 km long orpaillage Drilling planned in Q4

Kodiéran 2A Kodiafaran

5km

N

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SLIDE 22
  • Initial drilling results from

exploration at Kodiéran

  • Kodiéran located within the southern

section of the Tri-K project

  • 100% owned
  • Geophysical contact extending over

3 km in length

  • Prospect initially drilled in 2008, prior

to construction commencing at Inata

  • Drilling highlights include:
  • 31 m @ 5.51 g/t Au from 85 m (incl.

21 m @ 7.72 g/t Au)

  • 15 m @ 5.99 g/t Au from 63 m
  • 17 m @ 4.76 g/t Au from 101 m
  • Represents first 4,003 m of wider

100,000 m program remaining in Guinea for 2011

  • Further drilling planned across Tri-K

and Balandougou

Tri-K – encouraging drill results at Kodiéran

22

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SLIDE 23

Programmes

Q4 ‘10 Jan ’11 Feb ‘11 Mar ‘11 Apr ‘11 May ‘11 Jun ‘11 Jul ‘11 Aug ‘11 Sep ‘11 Oct ‘11 Nov ‘11 Dec ‘11 Q1 ‘12 Drilling & Resources Koulékoun D R D R D D/R Kodiéran D D/R D R Balandougou D D R D/R Regional Targets Tri-K D D Kankan D D Kolenda D D Key: Indicates period of exploration activity R = resource model report D = drilling results

Guinea: accelerating resource growth

23

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SLIDE 24

24

Inorganic opportunities in West Africa

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SLIDE 25

Gold mining in West Africa

Approx.

  • utline of

Birimian Greenstone Belt Inata Mine Avocet Mining-owned exploration project Source: Company data Mali Niger Côte d‟Ivoire Guinea Mauritania Senegal Ghana Burkina Faso Country Birimian Geology (km2) Gold Resources (Moz)

Ghana 45,000 110 Mali 124,000 33 Guinea 27,000 12 Burkina Faso 60,000 12 Cote d‟Ivoire 113,000 8 Senegal 6,000 3 25

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SLIDE 26

Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development

Exploration and development pipeline

N’Tjila

Koulékoun

Mali Burkina Faso Guinea

Souma Kodiéran Legend Bubble size reflects current resource estimate

26

Inata Filio Damba Balandougou

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SLIDE 27

Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development

Exploration and development - targets

N’Tjila

Koulékoun

Mali Burkina Faso Guinea

Souma Kodiéran Legend Bubble size reflects current target resource

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Inata Filio Damba Balandougou

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SLIDE 28

Maximising value from South East Asian assets Realising and growing the potential of Inata Accelerated organic growth in West Africa Ready and prepared to act on value adding acquisitions News flow in 2011

Strategic direction and outlook

  • Conditional sale announced 24 December 2010
  • Cash consideration of US$200 million upon completion
  • Completion expected in Q2 2011
  • Resources and reserves updated in Q3 2010
  • On track for target of doubling Inata reserves by Q3 2011
  • Increase in plant capacity announced
  • 200,000 m drilling in and around Inata mining licence
  • Drilling commenced at Tri-K & Balandougou
  • Regular exploration updates in 2011
  • Continued review of M&A landscape in West Africa
  • Explorer and producer valuations in West Africa

irregularly calibrated at the moment 28

  • Regular drilling results throughout the year
  • Completion of sale of South East Asian assets (Q2)
  • Resource and reserve reports at Inata (Q2, Q3),

Koulékoun (Q2) and Balandougou (Q3)

  • Feasibility stage project within the Tri-K district (Q4)
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SLIDE 29

Avocet Mining PLC

29

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SLIDE 30

30

Appendices

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SLIDE 31

Board of Directors and senior management

Exco Board of Directors

  • Appointed to the Board in July 2010. He retired as Chairman of AngloGold

Ashanti Ltd in May 2010 having been a member of the board since 1998. Non- executive Director of Old Mutual PLC and several companies in the Rothschild

  • Group. He took over as Chairman of Avocet in September 2010.

R P Edey Non-executive chairman

  • Brett was appointed CEO of the Company in July 2010, and brings significant

experience working in Africa and developing larger mining companies that will be invaluable in realising Avocet‟s potential. Brett is a HR and operations executive with previous experience at Katanga Mining Limited, Kinross and Co-Steel Inc.

Brett Richards CEO

  • Finance Director since July 2007 having previously been CFO since February
  • 2007. Chartered accountant at Coopers & Lybrand before holding senior

financial and operational roles at Rio Tinto PLC and Anglo American PLC.

Mike Norris Finance Director

  • The Chief Executive Officer of Datum AS, Avocet's second largest shareholder.
  • Mr. Arnet previously held the position of Senior Vice President, Corporate

Finance, Norway for Svenska Handelsbanken

H Arnet Non-executive Director

  • Managing Director of UBS Investment Bank and also a director of ASA Limited,

an investment trust investing principally in South African gold mining companies.

R A Pilkington Non-executive Director

  • A mining engineer with over 30 years experience in mining operations and new

mine developments in Africa, Australia, South East Asia and Europe.

M J Donoghue Non-executive Director

  • Appointed in July 2010. He served as a Partner at PricewaterhouseCoopers for

17 years, acting as an advisor and auditor for several large and medium-sized businesses in both the public and private sector before retiring in 2001. He is also Chairman of the Audit Committee.

B J W Rourke Non-executive director

  • Richard joined Avocet in June 2009 following

the acquisition of Wega Mining. He has had a successful career in developing mining companies, including 15 years working in South Africa for Gencor Ltd, and 10 years in West Africa for Golden Star Resources Ltd.

Richard Gray EVP Operations – West Africa

  • Peter is a geologist

with over 20 years experience in gold and copper exploration, resource evaluation and reserve development in South East Asia, Central Asia and North America. He joined the Group as Chief Geologist in May 2002 following 12 years with Newmont Mining Corporation.

Peter Flindell EVP Exploration

  • Hans-Arne

joined Avocet in June 2009 following the acquisition of Wega Mining. Previously he was Acting CEO of Wega Mining, having joined from Vyke Communications Plc, where he served as

  • CEO. Prior to that position, he was CEO of

Birdstep Technologies, Inc.

Hans-Arne L’orange EVP Business Development & Investor Relations

31

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SLIDE 32

Group Reserves and Resources

* Mineral Resources include Reserves. Note: the above figures are rounded up/down where appropriate. Dates for reserve and resource estimates are outlined in the following slides

AVOCET GROUP Gross Net attributable Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

  • Proven

15,760,000 1.92 972,000 13,924,200 1.92 862,550

  • Probable

10,195,000 2.17 712,800 9,516,400 2.17 670,900

  • Reserves subtotal

25,955,000 2.02 1,684,800 23,440,600 2.02 1,533,450 Mineral Resources*

  • Measured

28,394,000 1.48 1,351,400 24,229,400 1.48 1,165,600

  • Indicated

49,443,000 1.56 2,470,600 46,841,400 1.56 2,367,000

  • Measured + Indicated

77,847,000 1.53 3,822,000 71,079,800 1.53 3,532,600

  • Inferred

57,024,000 1.40 2,561,600 44,538,200 1.40 2,066,200

  • Resources subtotal

134,871,000 1.47 6,383,600 115,618,000 1.47 5,598,900 32

slide-33
SLIDE 33

Burkina Faso Reserves and Resources

Reserves as at 31 August 2010 Resources as at 30 June 2010 (Reserves were calculated at a 0.7 g/t Au cut-off and a stock pile is developed for all low grade ore (0.5 – 0.7 g/t Au) that will be processed towards the end of the mine‟s life.) Note: the above figures are rounded up/down where appropriate. * Mineral Resources include Reserves.

33

INATA & BELAHOURO Gross Net attributable Tonnes Grade (g/t) Contained Ounces Tonnes (Mt) Grade (g/t) Contained Ounces Mineral Reserves

  • Proven

10,540,000 2.09 707,500 9,486,000 2.09 636,750

  • Probable

5,760,000 2.01 374,000 5,184,000 2.01 336,600

  • Reserves subtotal

16,300,000 2.06 1,081,500 14,670,000 2.06 973,350 Mineral Resources*

  • Measured

12,520,000 1.74 701,900 11,268,000 1.74 631,700

  • Indicated

13,140,000 1.48 624,300 11,858,000 1.48 563,400

  • Measured + Indicated

25,670,000 1.61 1,326,200 23,135,000 1.61 1,195,100

  • Inferred

19,200,000 1.74 1,072,700 18,318,000 1.74 1,019,900

  • Resources subtotal

44,870,000 1.67 2,398,900 41,453,000 1.66 2,215,100

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SLIDE 34

TRI-K (KOULEKOUN) Gross Net attributable (100%) Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

  • Proven
  • Probable
  • Reserves subtotal

Mineral Resources*

  • Measured
  • Indicated
  • Measured + Indicated
  • Inferred

12,690,000 12,690,000 720,000 1.55 1.55 1.48 632,000 632,000 34,500 12,690,000 12,690,000 720,000 1.55 1.55 1.48 632,000 632,000 34,500

  • Resources subtotal

13,410,000 1.55 666,500 13,410,000 1.55 666,500

Guinea Reserves and Resources

Resources as at 31 December 2009 Note: the above figures are rounded up/down where appropriate. * Mineral Resources include Reserves.

34

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SLIDE 35

Malaysia Reserves and Resources

Reserves and resources as at 31 December „09. Note: the above figures are rounded up/down where appropriate. Above table includes stockpiles and Kurnia in the resources * Mineral Resources include Reserves.

PENJOM Gross Net attributable (100%) Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

  • Proven

1,311,000 1.69 71,100 1,311,000 1.69 71,100

  • Probable

3,922,000 2.51 316,500 3,922,000 2.51 316,500

  • Reserves subtotal

5,233,000 2.30 387,600 5,233,000 2.30 387,600 Mineral Resources*

  • Measured

1,311,000 1.69 71,100 1,311,000 1.69 71,100

  • Indicated

17,015,000 1.83 1,001,100 17,015,000 1.83 1,001,100

  • Measured + Indicated

18,326,000 1.82 1,072,200 18,326,000 1.82 1,072,200

  • Inferred

4,105,000 1.58 208,500 4,105,000 1.58 208,500

  • Resources subtotal

22,431,000 1.78 1,280,700 22,431,000 1.78 1,280,700

35

slide-36
SLIDE 36

Indonesia Reserves and Resources

* Mineral Resources include Reserves. Resources include North Lanut, Bakan and Doup projects, and as at 31 December 2009 Reserves figures are for North Lanut only (as at 31 December 2009). Attributable ounces are based on 80% ownership of North Lanut and Bakan, 60% ownership of Doup. Note: the above figures are rounded up/down where appropriate.

INDONESIA Gross Net attributable Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

  • Proven

3,410,000 1.52 166,400 2,728,000 1.52 133,120

  • Probable

428,000 1.24 17,100 342,400 1.24 13,680

  • Reserves subtotal

3,838,000 1.49 183,500 3,070,400 1.49 146,800 Mineral Resources*

  • Measured

13,776,000 1.24 548,700 11,020,800 1.24 438,960

  • Indicated

6,527,000 1.00 210,200 5,221,600 1.00 168,160

  • Measured + Indicated

20,303,000 1.16 758,900 16,242,400 1.16 607,120

  • Inferred

32,920,000 1.17 1,241,000 21,332,000 1.17 799,540

  • Resources subtotal

53,223,000 1.17 1,999,900 37,574,400 1.17 1,406,660

36

slide-37
SLIDE 37

Operational review – South East Asia

37

Penjom and North Lanut

slide-38
SLIDE 38
  • Combined gold production of 98,664 oz

in 2010

  • Penjom Q4 production of 11,934 oz at

cash cost of US$1,064/oz

  • Reflects lower grades and reduced

equipment availability

  • North Lanut Q4 production of 12,715 oz

at cash cost of US$722/oz

  • Production in line with guidance
  • Recoveries affected by high rainfall
  • Increased costs related to increase haul

distances and leach pad rehandling

  • 2011 production guidance
  • Total of 8,000 oz per month from South

East Asian assets until sale completes

South East Asia

38 Penjom North Lanut Ore mined (t) 137,000 341,000 Total movement (t) 3,910,000 675,000 Ore processed (t) 180,000 400,000 Average head grade (g/t) 2.36 1.88 Gold recovery rate (%) 87% 53% Gold production 11,934 12,715 667 383 255 186 142 153 1,064 722 Total cash cost Q4 2010 Production statistics Cash costs (US$/oz)

  • mining
  • processing
  • royalties and overheads
slide-39
SLIDE 39

Financial results – full year 2010

39

slide-40
SLIDE 40

Income statement – Q4

2010 2009

  • IFRS requires that South East Asia operations

be disclosed separately as Discontinued Operations on the basis that sale is probable

  • Share based payments reflect increase in

share price relative to FTSE Gold Mines Index

  • 2009 results only reflect South East Asian
  • perations. All costs at Inata were capitalised

during that period

  • Exceptional items reflect completion of non-

core asset disposals, Hounde, Merit Mining and Monument Mining

  • Finance costs capitalised in Q4 2009 in relation

to the Macquarie Project Finance Facility

  • Tax includes deferred tax movements (non-

cash) - at Inata, revised LoM plan & higher prices indicate more tax payable in later years

US$ million Continuing Discon- tinued Group Group UK West Africa Total South East Asia Revenue

  • 51.9

51.9 33.2 85.1 28.7 Cash costs

  • (23.6)

(23.6) (21.9) (45.5) (19.9) Other cost of sales 1.1 (1.6) (0.5) (3.5) (4.0) (2.4) Admin (1.9)

  • (1.9)
  • (1.9)

(0.3) Share based payments (5.2)

  • (5.2)
  • (5.2)

(0.8) EBITDA (5.9) 28.3 22.4 7.3 29.7 8.9 Depreciation

  • (13.0)

(13.0) (5.6) (18.6) (4.2) Exceptional items (4.4) 5.1 0.7 (0.2) 0.5 (10.5) Finance costs (0.5) (1.6) (2.1) (0.4) (2.5) (0.2) Profit before tax (10.7) 18.7 8.0 1.1 9.1 (6.0) Tax (1.6) (9.6) (11.2) (1.2) (12.4) (3.6) Profit after tax (12.3) 9.1 (3.2) (0.1) (3.3) (9.6) 40

slide-41
SLIDE 41

Income statement – full year

2010 2009

  • Excludes Inata operations in Q1 2010, prior to

reaching commercial production

  • Admin costs reflect full year of additional
  • verheads following Wega acquisition
  • Exceptional items: 2010 - OSE listing costs
  • ffset by profits on disposal; 2009 -

impairments in South East Asia

  • Finance costs represent interest on loans used

to fund Inata construction from 1 April

US$ million Continuing Discon- tinued Group Group UK West Africa Total South East Asia Revenue 132.8 132.8 121.8 254.6 108.8 Cash costs

  • (62.6)

(62.6) (80.3) (142.9) (70.0) Other cost of sales 0.6 (4.5) (3.9) (7.9) (11.8) (7.1) Admin (7.0)

  • (7.0)
  • (7.0)

(4.1) Share based payments (8.6)

  • (8.6)
  • (8.6)

(1.6) Changes in inventory

  • 4.0

4.0 (2.0) 2.0 4.0 EBITDA (15.0) 69.6 54.6 31.7 86.3 29.9 Depreciation (0.1) (32.5) (32.6) 15.4 (48.0) (13.3) Exceptional items (4.8) 5.1 0.3 (0.2) 0.2 (18.1) Finance costs (1.4) (3.4) (4.8) (0.1) (4.9) 0.3 Profit before tax (21.3) 38.8 17.5 16.1 33.5 (7.6) Tax (2.4) (9.6) (12.0) (3.3) (15.3) (3.3) Profit after tax (23.7) 29.2 5.5 12.8 18.2 (10.9) 41

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SLIDE 42

Cash flow

US$ million 2010 2009 Continuing Discon- tinued Group Group UK West Africa Total SE Asia EBITDA (15.0) 69.6 54.6 31.7 86.3 29.9 Working capital 0.1 (27.8) (27.7) (0.7) (28.5) (10.0) Share based payments 8.3

  • 8.3
  • 8.3

1.5 Provision/other 0.4

  • 0.4

0.9 1.3 3.0 Operating cash flow (6.3) 41.8 35.5 31.8 67.3 24.4 Interest (1.2) (4.0) (5.2) 0.1 (5.1) 0.1 Tax/other

  • (3.0)

(3.0) (0.7) Capex (0.1) (36.7) (36.8) (5.1) (41.9) (42.9) Exploration (0.3) (9.9) (10.2) (2.6) (12.7) (14.3) Wega acquisition

  • (20.1)

Disposals 9.9

  • 9.9
  • 9.9
  • Loans
  • (12.0)

(12.0)

  • (12.0)

34.2 Intercompany transfers (6.8) 27.8 21.0 (21.0)

  • Reclassify cash

17.7

  • 17.7

(17.7)

  • Net cash flow

13.0 7.0 20.0 (17.6) 2.5 (19.7) Opening cash 17.5 12.0 29.5 17.6 47.1 66.8 Closing cash 30.5 19.0 49.5

  • 49.5

47.1

42

  • West Africa Development

underpinned by cash flow in South East Asia

  • Significant first contribution from

Inata

  • 2010 capex at Inata - second mining

fleet, deposit on third fleet, plant enhancements during commissioning, & infrastructure

  • Disposal of Merit Mining &

Monument interests generated US$9.9m

slide-43
SLIDE 43

Balance sheet

US$ million 2010 2009 Continuing Discon- tinued Group Group UK West Africa Total South East Asia Goodwill

  • 13.6

13.6 10.3 Exploration 0.6 10.5 11.1 17.1 28.2 18.1 Tangible fixed assets 0.2 236.7 236.9 52.1 289.0 299.8 Other non-current assets 3.4 23.3 26.8 9.9 36.7 15.3 Net working capital (3.2) 11.3 8.1 16.2 24.3 (1.5) Net funds/(debt) 5.5 (34.0) (28.5)

  • (28.5)

(42.9) Other liabilities (4.9) (12.9) (17.8) (26.2) (44.0) (21.6) Net assets 1.7 234.9 236.6 82.6 319.2 277.4 43

  • Other non-current assets reflect

stake in Avion arising from Hounde disposal (2.7%)

  • Strong cash flows in resulted in

decrease in net debt to US$28.5m, despite debt repayments & investment in capex and exploration

  • Other liabilities reflect increase in

closure and provisions

slide-44
SLIDE 44

Cash costs and realised prices

44

2010 2009 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Production

  • Inata

19,838 31,225 40,461 46,208 137,732

  • North Lanut

11,370 11,184 12,311 12,715 47,580 11,297 11,899 12,333 11,365 46,894

  • Penjom

13,669 10,461 15,020 11,934 51,084 16,077 15,664 16,041 14,512 62,654 TOTAL 44,877 52,870 67,792 70,857 236,396 27,374 27,563 28,734 25,877 109,548 Cash costs

  • Inata
  • 569

526 511 531

  • North Lanut

635 678 657 722 674 488 501 507 710 550

  • Penjom

818 1,119 841 1,064 944 691 669 660 811 705 TOTAL 735 701 619 641 660 608 597 595 766 639 Group realised gold price 1,107 1,203 1,1391 1,2291 1,174 916 925 966 1,103 975

1 Reflects 26,135 and 25,064 ounces delivered into the Inata hedge in Q3 and Q4 respectively at US$970/oz