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African Barrick Gold Investor Presentation Company Presentation February 2011 Disclaimer Important Notice This presentation has been provided to you for information purposes only. It does not constitute an offer, solicitation, invitation or


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Investor Presentation

February 2011

African Barrick Gold Company Presentation

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SLIDE 2

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

  • r 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 loss howsoever arising from any use of this presentation or its contents. 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,

  • perations, 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

  • r 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 may be lawfully made and delivered in accordance with the laws of the jurisdiction in which you are located. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, whether electronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS.

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SLIDE 3
  • 1. Overview & highlights

2

  • 2. Operational review

6

  • 3. Exploration & growth projects

11

  • 4. Conclusion

17

2

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SLIDE 4

Overview of ABG

  • LSE listed gold mining company with significant

production and reserve base – 2010 production of 701 koz – Reserves and resources of 26 Moz1

  • Four producing mines in Tanzania and significant

land holdings

  • Growth driven by organic expansion projects and

African consolidation opportunities – Targeting 1 Moz production by 2014 – Aiming to double production over 10 years

  • Experienced management team with strong
  • perational track record
  • Successful IPO and FTSE 100 inclusion in 2010

3

Location of assets

Significant production and reserve base to drive growth

Dar es Salaam Buzwagi Bulyanhulu North Mara Tulawaka

Mining operations

1 Figure as at 31 December 2009

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SLIDE 5

Operational Highlights to 31 December 2010

  • Full year 2010 production of 701 Koz, down 2%

year-on-year

  • Bulyanhulu and North Mara firmly on track
  • Buzwagi impacted by issues relating to transition
  • re and fuel theft

– Operational improvement initiatives on track – Planned monthly production reached in December

  • Tulawaka production influenced by new

equipment commissioning and lower grades year-

  • n-year
  • All organic growth projects on track

4

Strong platform with further growth expected as Buzwagi production ramps up

Year ended 31 December % change Y-o-Y 2010 2009 Operating results Tonnes mined (kt) 40,016 36,781 9% Ore tonnes processed (kt) 7,706 6,546 18% Recovery rate (percent) 86.1% 87.0%

  • 1%

Average grade (grams per ton) 3.3 3.9

  • 15%

Attributable gold production (koz) 701 716

  • 2%

Attributable gold sold (koz) 724 684 6% Average realised gold price ($/oz) 1,240 974 27% Copper production (‘000 pounds) 7,958 6,788 17%

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SLIDE 6

Financial Highlights to 30 September 20101

  • 9M 2010 revenues of $633m, up 35% year to

date

  • EBITDA of $286 million, up 58% year to date
  • Operational cash flow generated of $220m

year to date

  • Net income of $139m

– 87% higher year on year and greater than the FY 2009 result

  • Cash costs of $556/oz
  • Net cash balance of $401m (unaudited figure

as at 31 December 2010)

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Strong financial performance provides significant strategic flexibility

Nine months ended 30 September % change Y-o-Y $’000s (Unaudited) 2010 2009 Revenue 632,602 469,910 35% Cost of sales (380,875) (310,601) 23% Gross profit 251,727 159,309 58% Corporate administration (26,353) (27,804)

  • 5%

Other charges (12,286) (2,681) 358% Profit before net finance costs 204,478 121,835 68% Net finance expense (301) (5,867)

  • 95%

Net profit before taxation 204,177 115,968 76% Taxation expense (63,042) (34,763) 81% Net profit attributable to equity shareholders 139,098 74,557 87% EPS (cents) 33.9 18.2 87%

1 Full year 2010 financial results due to be released 16 February 2011
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SLIDE 7
  • 1. Overview & highlights

2

  • 2. Operational review

6

  • 3. Exploration & growth projects

11

  • 4. Conclusion

17

6

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Operational Details – Bulyanhulu

  • Continued positive progress throughout 2010
  • Production of 260 Koz up 4% YoY
  • Both grade and recoveries increased over the

year

  • Consistent operating performance throughout

the year

  • Continued investment to drive further cost

improvements and operating efficiencies

Year ended 31 December (Reviewed) 2010 2009 Underground ore tonnes hoisted (ktpa) 958 967 Ore milled (ktpa) 954 959 Head grade (g/t) 9.2 8.7 Mill recovery (%) 92.2% 92.1% Ounces produced (oz) 260 249 Ounces sold (oz) 262 255 Cash costs/ounces sold ($/oz)1 Cash costs/tonne milled ($/t) 1 544 142 644 169 Capital expenditure ($’000s) 1 57,127 35,304

7

Key operating statistics

1 Figures to 30 September 2010
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SLIDE 9

Operational Details – North Mara

  • Consistent production throughout the year
  • Production of 213 Koz in line with 2009
  • Head grade down 12% YoY, reflecting

expected processing of low grade stockpiles

  • Improvement in recoveries as a result of

plant optimization and ore feed blend

  • Continued focus on waste stripping in the

Gokona pit

  • Additional investment in water treatment

plant and tailings storage facility

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Key operating statistics

Year ended 31 December (Reviewed) 2010 2009 Tonnes mined (ktpa) 20,106 15,888 Ore tonnes mined (ktpa) 2,624 4,933 Ore milled (ktpa) 2,860 2,605 Head grade (g/t) 2.8 3.2 Mill recovery (%) 82.9% 79.7% Ounces produced (oz) 213 212 Ounces sold (oz) 219 209 Cash costs/ounces sold ($/oz) 1 Cash costs/tonne milled ($/t) 1 476 37 485 38 Capital expenditure ($’000s) 1 59,936 20,076

1 Figures to 30 September 2010
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SLIDE 10

Operational Details – Buzwagi

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Key operating statistics

Year ended 31 December (Reviewed) 2010 2009 Tonnes mined (ktpa) 18,848 19,843 Ore tonnes mined (ktpa) 4,285 5,034 Ore milled (ktpa) 3,553 2,671 Head grade (g/t) 2.0 2.5 Mill recovery (%) 81.0% 87.4% Ounces produced (oz) 186 189 Ounces sold (oz) 198 154 Cash costs/ounces sold ($/oz)1 Cash costs/tonne milled ($/t)1 630 36 323 19 Capital expenditure ($’000s) 1 17,140 103,343

  • Production of 186 Koz compared to 189 Koz in 2009 when

the mine started operations in Q2

  • During 2010, issues in processing the transition ore led to

delays in production ramp up and impacted process plant performance

  • Actions taken in response to discovery of fuel theft further

impacted production in late Q3 and Q4

  • A range of initiatives undertaken to address issues:

– New GM and senior team in place – Additional investment in process plant and mining fleet – Pit scheduling revised, including drill and blast and grade control programmes – Additional security measures

  • These initiatives are having the planned effect and the mine

reached targeted year end production run rates by the end

  • f the year
1 Figures to 30 September 2010
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SLIDE 11

Operational Details – Tulawaka

10

Key operating statistics

Reflected as 70% Year ended 31 December (Reviewed) 2010 2009 Underground ore tonnes hoisted (ktpa) 103 83 Ore milled (ktpa) 340 312 Head grade (g/t) 4.1 7.0 Mill recovery (%) 93.2% 94.1% Ounces produced (oz) 42 66 Ounces sold (oz) 45 65 Cash costs/ounces sold ($/oz)1 Cash costs/tonne milled ($/t)1 678 82 385 85 Capital expenditure ($’000s) (100%)1 10,725 2,795

  • Attributable production of 42 Koz for the year

down from 66 Koz in 2009 due to mine equipment availability and grade

  • Lower

grade

  • re

compared to prior year period, both from underground as well as from the low grade stockpiles processed

  • Additional haulage truck and loader capacity

put in place

  • Significant investment in exploration drilling to

increase reserves and extend mine life

1 Figures to 30 September 2010
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SLIDE 12
  • 1. Overview & highlights

2

  • 2. Operational review

6

  • 3. Exploration & growth projects

11

  • 4. Conclusion

17

11

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Tulawaka Underground Extension Programme

  • 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 extended

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Golden Ridge Feasibility Project

South North

Grade Thickness gm x metre

US$ 750 Pit RC Infill 2010

  • Infill resource drilling and metallurgical drilling completed
  • Geotechnical studies for feasibility study completed, geological model being updated
  • Advanced metallurgical testwork and environmental and social impact assessment continue
  • Working towards announcement of initial mineral resource
  • Feasibility study underway
  • Additional satellite deposit potential for Buzwagi identified at Jomu, with several high grade intersections:

– geological model completed – resource modeling underway

1.2km of 4km strike

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North Mara – Gokona-Nyabigena Underground Project

600m 800m 1000m 1200m 600m 800m 1000m 1200m 12400E 12600E 12800E 13000E 13200E

200m

Pit Stage 2 Pit Stage 3

17m @ 12.11g/t

West East

20 to 40 40 to 60 60 to 80 80 to 100 > 100 < 20

Grams X metres

13m @ 6.95g/t 14m @ 33.7g/t 23m @ 8.6g/t 13m @ 7.79g/t

Gokona East Zone Gokona West Zone Gokona Deeps Extension Target

600m 800m 1000m 1200m 600m 800m 1000m 1200m 12400E 12600E 12800E 13000E 13200E 600m 800m 1000m 1200m 600m 800m 1000m 1200m 12400E 12600E 12800E 13000E 13200E

200m 200m

Pit Stage 2 Pit Stage 3

17m @ 12.11g/t

West East

20 to 40 40 to 60 60 to 80 80 to 100 > 100 < 20

Grams X metres

13m @ 6.95g/t 14m @ 33.7g/t 23m @ 8.6g/t 13m @ 7.79g/t

Gokona East Zone Gokona West Zone Gokona Deeps Extension Target

  • 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

  • Aim to increase North Mara ounce profile and

extend mine life

  • Ongoing Exploration drilling targeting depth

extensions to both Gokona West and Gokona Deeps lodes

  • Targets are between 200m to 500m below the

planned final Stage 3 open pit

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Bulyanhulu Upper East Zone Update

Upper r 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 Existi ting g 1.8km decline cline

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Nyanzaga Project Update

  • Acquisition of Tusker Gold Limited completed in May

2010

  • Step-out and infill drilling programs on Tusker and

Kilimani resource areas commenced

  • Wide, higher grade zones detected on southern end of

Tusker prospect, closer to surface and also potential for higher grades at depth

  • Scoping study on Tusker and Kilimani resources

scheduled for later in 2011 with feasibility study commencing by year end 2011

  • Planning in progress for regional exploration programs

targeting geophysical and geochemical anomalies for further stand-alone and satellite deposits

Tusker

16

VTEM Target

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SLIDE 18
  • 1. Overview & highlights

2

  • 2. Operational review

6

  • 3. Exploration & growth projects

11

  • 4. Conclusion

17

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Conclusion

  • Significant production and resource base from which to grow our business going forward
  • Bulyanhulu and North Mara both operating at forecast production levels, with Buzwagi starting

to see the positive effects of operating initiatives taken, and focus at Tulawaka on extending mine life

  • Continuing focus on cost control in order to sustain profitability levels
  • All growth projects advancing in line with expectations
  • Strong cash flow generation and capital structure provide significant strategic flexibility

18

Strong position to continue growing the business