South America Region – Cerro Corona Investor Visit – Cajamarca, Peru Day 2 | 15 November 2011
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 or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; 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 forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. 2
Safety First 3
Cerro Corona: Project Location 4
Cerro Corona: Project Location Location Map � The Cerro Corona orebody is a copper- gold porphyry � Cerro Corrona mining operation is located 1.5km west-northwest of the village of Hualgayoc � 600km north-northwest of Lima and 80km 400 km 250 Km by paved road from Cajamarca Salaverry Port Salaverry Port � Concentrates are transported 400km to the Salaverry Port TRC Concentrate TRC Concentrate Warehouse warehouse 5
Key Milestones Delivered a world-class project in record time 31 August December Certifications January ISO Dec 2009 � End Transition � Ramp up � Project acquisition OHSAS Jun 2010 � � from Construction completed completed to Operation Integrated System Aug 2011 � Jan - 06 Jul - 08 Aug - 08 Sep - 08 Dec - 08 2009 2010 2011 30 September 2008 26 July 2008 2009, 2010,2011 Start-up: � � Peru’s safest open First shipment � pit operation First rock to plant � 6
Cerro Corona Operation Layout 7
Lif of Mine Reserves (December 2010) Tons (Mt) Gold Grade (g/t) Copper Grade (%) Gold (koz) Copper (Mlb) Proved 42.2 1.04 0.56 1,405 520 Probable 44.1 0.89 0.46 1,267 444 TOTAL 86.3 0.96 0.51 2,672 965 8
Process Flow Sheet OPEN PIT CONCENTRATE 400 t/d (21% Cu, 1oz/t Au) CRUSHING GRINDING FLOTATION TONNAGE 20K t/d (0.5% Cu, 1g/t Au) Tails TAILING DAM 9
Utilities � Power � 220 MW Power line from Cajamarca Norte to Cerro Corona sub-stations. � Cerro Corona consumption: 20 MW � Water � Water for process: Recycling from TMF. � Water-balance: Rainfall & Diversion channels � Permitting – Approved in 2010/2011 � EIS permitting: 4th Modification. � Closure plan: 2nd Modification. � Salaverry Port EIS amendment. 18
Safety Statistics “If we cannot mine safely, we will not mine” Lost Time Injuries Medically Treated Injuries 3 3 1 1 2 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Hazards Reported Minor Injuries 23 1629 1508 1412 1397 18 16 1180 15 15 1081 1003 993 13 12 12 808 8 565 7 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 19
KPI - Throughput Throughput (tph) 800 800 777 775 775 750 729 700 650 615 600 2008 2009 2010 2011 YTD Actual (tph) Design (tph) ________________________ Note: 2011 YTD for the 10 months ending October 2011 20
KPI – Plant Availability Plant Availability (%) 100 98 95.42 96 95.17 94 91.32 91.09 92 91.32 90 88 86 84 82 80.81 80 2008 2009 2010 2011 YTD Actual (%) Design (%) ________________________ Note: 2011 YTD for the 10 months ending October 2011 21
KPI – Gold Head Grade Au Head Grade (g/t) 1.24 1.25 1.22 1.20 1.20 1.20 1.16 1.15 1.10 1.08 1.05 1.00 1.01 1.01 0.95 2008 2009 2010 2011 YTD (*) Actual (g/t) Base Case (g/t) ________________________ Note: 2011 YTD for the 10 months ending October 2011 22
KPI – Copper Head Grade Cu Head Grade (%) 0.90 0.85 0.84 0.80 0.80 0.75 0.75 0.74 0.74 0.70 0.65 0.65 0.63 0.60 0.54 0.55 0.50 2008 2009 2010 2011 YTD Actual (%) Base Case (%) ________________________ Note: 2011 YTD for the 10 months ending October 2011 23
KPI – Gold Recovery Au Recovery (%) 70 68 66 65.2 64 64.4 63.7 62 60 58 56 54 54.0 52 50 2008 2009 2010 2011 YTD Actual (%) ________________________ Note: 2011 YTD for the 10 months ending October 2011 24
KPI – Copper Recovery Cu Recovery (%) 88 83 82.7 82.9 80.2 78 73 68 63 60.9 58 2008 2009 2010 2011 YTD Actual (%) ________________________ Note: 2011 YTD for the 10 months ending October 2011 25
KPI – Gold Production Au produced (oz) 150 000 132,420 127,278 130 000 119,563 118,648 115,618 110 000 115,030 90 000 70 000 65,635 50 000 32,937 30 000 2008 (Aug-Dec) 2009 (Jan-Oct) 2010 (Jan-Oct) 2011 (Jan-Oct) Actual (oz) Base Case (oz) 26
KPI – Copper Production Cu produced (t) 40 000 35,132 35 000 32,206 30,079 30 000 26,791 25 000 25,954 22,867 20 000 15 000 15,465 10 000 7,007 5 000 2008 (Aug-Dec) 2009 (Jan-Oct) 2010 (Jan-Oct) 2011 (Jan-Oct) Actual (t) Base Case (t) 27
KPI – Gold Equivalent Production Equivalent Ounces Produced (oz) 360 000 341,982 312,395 310 000 274,607 260 000 268,415 250,922 238,377 210 000 152,768 160 000 110 000 73,977 60 000 2008 (Aug-Dec) 2009 (Jan-Oct) 2010 (Jan-Oct) 2011 (Jan-Oct) Actual (eq oz) 28
KPI – Operating Expenditure Operating expenditure (2008 – 2011) 158 156 160 550 500 514 140 450 470 123 120 400 406 388 350 100 300 80 250 60 200 150 38 40 100 20 26.0 25.6 24.7 50 23.2 0 0 2008 2009 2010 2011 YTD Operating Costs (US$m | LHS)) Operation Cost/Eq ounce (US$/oz | RHS) Operating cost/tonne milled (US$/t | RHS) ________________________ Note: 2011 YTD for the 9 months ending September 2011 29
KPI – Captital Expenditure Capital expenditure (2008 – 2011) 300 3600 3292 3200 244 250 2800 200 2400 2000 150 1600 100 1200 85 70 800 49 50 257 400 172 162 0 0 2008 2009 2010 2011 YTD Capex (US$m | LHS) Capex/Eq ounce (US$/oz | RHS) ________________________ Note: 2011 YTD for the 9 months ending September 2011 30
KPI – NCE & NCE margin | Total Cash Cost & Operating margin Key financial metrics 1800 80 72 71 1560 1600 70 62 1400 60 61 1200 56 50 43 1000 40 35 800 626 30 557 600 532 426 20 380 361 363 400 10 200 0 0 2008 2009 2010 2011 YTD NCE (US$m | LHS) Total Cash Cost (US$m | LHS) Operating Margin (% | RHS) NCE Margin (% | RHS) ________________________ Note: 2011 YTD for the 9 months ending September 2011 31
Optimization Projects Cerro Corona optimization projects underway � Optimization program launched Q4 2010 � Actual results show a 2%-3% increase in recoveries � Metallurgical task team in place Recovery and Grades 100 1.75 � Main projects implemented 95 � Improve reagent dosing and addition 1.55 90 � RST&CST characterization 85 1.35 � Expert control system – rougher flotation Recovery % 80 Grade 1.15 75 � Main projects underway 70 0.95 � Improve mechanical slurry conditioning 65 � Gravimetric concentration 0.75 60 � Expert control system – cleaning flotation 55 0.55 � Automatic reagent dosing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Au Recovery Cu Recovery Au Grade Cu Grade � Pebble crusher � Phase II Mine to Mill 32
Cerro Corona: Production Plan (2011-2024) Ore Life of Mine Tonnes (millions) 86.3 Au grade (g/t) 0.96 Cu grade (%) 0.51 Au recovery (%) 73.2 Cu recovery (%) 87.9 Concentrate Life of Mine Tonnes (‘000) 1,672 Au grade (g/t) 36 Cu grade (%) 23 Au ounces (‘000oz) 1,876 Cu tonnes (‘000t) 369 Au-eq ounces 1 (‘000) 4,197 ____________________________ 1. Au Price US$1,400/oz; Cu Price US$8,600/t 33
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