West Africa region

GHANA

Tarkwa

Six months ended
      June
2016
  June
2015
 
Gold produced 000’oz   273.5   292.0  
Yield – CIL plant g/t   1.25   1.33  
AISC and AIC US$/oz   993   1,106  

Gold production decreased by 6 per cent from 292,000 ounces for the six months ended 30 June 2015 to 273,500 ounces for the six months ended 30 June 2016 due to lower tonnes mined, lower plant throughput and lower grade.

Total tonnes mined, including capital stripping, decreased from 52.4 million tonnes for the six months ended 30 June 2015 to 51.3 million tonnes for the six months ended 30 June 2016. Ore tonnes mined decreased from 7.3 million tonnes to 6.5 million tonnes. Operational waste tonnes mined increased from 16.0 million tonnes to 16.9 million tonnes while capital waste tonnes mined decreased from 29.1 million tonnes to 27.6 million tonnes. Head grade mined increased from 1.43 grams per tonne to 1.44 grams per tonne. The strip ratio increased from 6.1 to 6.8.

The CIL plant throughput decreased from 6.81 million for the six months ended 30 June 2015 to 6.80 million tonnes for the six months ended 30 June 2016 due to unplanned downtime (both power and operational related). Realised yield from the CIL plant decreased from 1.33 grams per tonne to 1.25 grams per tonne due to lower head grades processed as a result of the blend between lower grade stockpiles, higher grade ore tonnes mined, related to timing differences between ore mined and ore feed to the plant.

Net operating costs, including gold-in-process movements, decreased by 7 per cent from US$168 million for the six months ended 30 June 2015 to US$156 million for the six months ended 30 June 2016 due to a net increase in gold-in-process and lower operating costs. The US$9 million build-up of stockpiles for the six months ended 30 June 2016 compared with a drawdown of US$nil million for the six months ended 30 June 2015.

Operating profit decreased from US$184 million for the six months ended 30 June 2015 to US$177 million for the six months ended 30 June 2016 as a result of the lower gold sales, partially offset by lower net operating costs.

Capital expenditure decreased by 32 per cent from US$133 million to US$91 million mainly due to the purchase of mining fleet for replacement in the six months ended June 2015. Mining fleet expenditure for the six months ended June 2015 was US$46 million compared with US$nil million for the six months ended June 2016.

All-in sustaining costs and total all-in cost decreased by 10 per cent from US$1,106 per ounce for the six months ended 30 June 2015 to US$993 per ounce for the six months ended 30 June 2016 due to lower net operating costs and lower capital expenditure.

Damang

Six months ended
      June
2016
  June
2015
 
Gold produced 000’oz   71.9   80.5  
Yield g/t   1.11   1.19  
AISC and AIC US$/oz   1,260   1,336  

Gold production decreased by 11 per cent from 80,500 ounces for the six months ended 30 June 2015 to 71,900 ounces for the six months ended 30 June 2016 mainly due to lower tonnes mined and processed and lower yield.

Total tonnes mined, including capital stripping, decreased from 10.5 million tonnes for the six months ended 30 June 2015 to 9.8 million tonnes for the six months ended 30 June 2016 due to the late start of mining at the Amoanda pit as a result of delays in securing Environmental Protection Agency (EPA) permit.

Ore tonnes mined decreased from 2.3 million tonnes to 1.4 million tonnes. Operational waste tonnes mined decreased from 8.2 million tonnes to 5.0 million tonnes as a result of only mining operational waste tonnes for the six months ended June 2015, while both operational waste tonnes and capital waste tonnes were mined for the six months ended June 2016. Capital waste of 3.4 million tonnes was mined at Amoanda pit for the six months ended June 2016. The six months to June 2015 had no capital waste. Head grade mined increased from 1.25 grams per tonne to 1.42 grams per tonne. The strip ratio increased from 3.5 to 6.0 due to capital stripping at the Amoanda pit.

Yield decreased from 1.19 grams per tonne to 1.11 grams per tonne due to an increase in lower grade stockpiles treated. For the six months ended June 2015, 1.79 million tonnes of fresh ore and oxides were milled at an average grade of 1.31 grams per tonne and 0.33 million tonnes of stockpiles were milled at an average grade of 1.34 grams per tonne. This compared with 1.15 million tonnes of fresh ore and oxides milled at an average grade of 1.44 grams per tonne and 0.86 million tonnes of stockpiles milled at an average grade of 0.90 grams per tonne for the six months ended June 2016.

Tonnes processed decreased from 2.11 million tonnes for the six months ended 30 June 2015 to 2.01 million tonnes for the six months ended 30 June 2016 due to a tailings line blockage for 10 days.

Net operating costs, including gold-in-process movements, decreased by 21 per cent from US$94 million to US$74 million mainly due to lower mining and consumable costs in line with the lower production as well as lower payroll costs as a result of retrenchments for the six months ended June 2016.

Operating profit increased from US$4 million for the six months ended 30 June 2015 to US$13 million for the six months ended 30 June 2016 due to lower net operating costs and higher gold prices achieved, partially offset by lower gold sold.

Capital expenditure increased by 38 per cent from US$8 million to US$11 million with the majority spent on waste stripping at Amoanda pit.

All-in sustaining costs and total all-in cost decreased by 6 per cent from US$1,336 per ounce for the six months ended 30 June 2015 to US$1,260 per ounce for the six months ended 30 June 2016 due to lower operating costs, partially offset by lower gold sold.