Resolute Mining Limited — Annual Report 2010

Aug 29, 2010

APPENDIX 4E: PRELIMINARY FINAL REPORT

FOR THE YEAR ENDED 30 JUNE 2010

• Ravenswood gold mine in Queensland, Australia, produced 125,652 ounces (2009: 151,913 oz) at a cash cost of A$804/oz (2009: A$763/oz)

• Syama gold mine in Mali produced a total of 77,975 ounces (2009: 24,762 oz). For the 6 months to 30 June 2010, 41,689 ounces were produced at a cash cost of A$1,114/oz or (US$1,001/oz). The mine was considered to be in "pre-production" up to 31 December 2009.

DEVELOPMENT

Mali

• Feasibility study on treatment of Syama free milling ore completed and review work to determine best circuit design continues
• Commencement of a feasibility study into the supply and installation of a high voltage power grid connection from Sikasso (approximately 80km away) to Syama gold mine.
• The Finkolo Exploitation permit application, including the Tabakoroni Deposit Feasibility Study and Environmental and Social Impact Assessment was completed and submitted to the Mali Government for approval.

Queensland

• Completion of a new underground mine design and infill drilling resulted in the conversion of previously reported resources to proven and probable reserves of 6.17 mt @ 2.7g/t Au for 535,000 ounces. Diamond drilling is planned to further test the open down plunge extent of the Mt Wright deposit.

Tanzania

• Updated pit designs completed on Maji and Golden Pride saw incremental reserve additions of 880,000 t @ 1.8g/t Au for approximately 50,000 ounces.
• At Nyakafuru, an environmental scoping report was completed during the period. An Environmental and Social Impact Study along with the Nyakafuru Feasibility Study will now be submitted as part of the Nyakafuru Mining Lease application.

The information in this report as it relates to ore reserves, mineral resources or mineralisation is reported in accordance with the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is based on information compiled by R Bray, competent person as defined by the Code. R Bray has consented in writing to the inclusion in this report of the numbers based on the information in the form and context in which it appears. "Significant" drill results refer to results that are indicative of potentially economic mineralisation or that warrant follow-up work.

HIGHLIGHTS

• Strong underlying profit before unrealised treasury and tax of $36.0m
• Total gold production of over 350,000 ounces
• Production up 16% compared to the corresponding period
• Cash and bullion of $27.9m
• Over 40% reduction in hedge commitments.
• Ramp up of Syama and Mt Wright mines.
• Development and Exploration activities bring forward a wide range of growth opportunities
• 2010/11 forecast group production of 380,000 ounces

RESULTS

• Revenues from gold sales increased by 14% to $342.5m (2009: $299.7).
• Profit before unrealised treasury and tax increased by 28% to $36.0m (2009: $28.2m).
• Net loss of $56.6m (2009: $30.7m profit) primarily results from a $74.5m unrealised foreign exchange loss (2009: $0.3m gain) on loans with Resolute Mining subsidiaries. This relates to the accounting treatment of the Australian dollar denominated intercompany loan from Resolute Mining to its 80% owned Malian operating subsidiary, Societe des Mines de Syama S.A, more fully explained in the March quarterly report. It is important to note that the reported loss on this intergroup translation has no cashflow or economic impact on the Resolute Mining group.

OPERATIONS

• The Group gold production for the year was 352,302 ounces (2009: 303,722 oz) of gold at an average cash cost of A$741/oz (2009: A$714/oz).
• Golden Pride gold mine in Tanzania produced 148,675 ounces (2009: 127,047 oz) at a cash cost of A$583/oz (or US$514/oz) (2009: A$656/oz or US$486/oz).

EXPLORATION

Mali

Drilling focused on the Syama shear and greenstone belt to the north and south of Syama.

• Infill drilling at Tellem, Syama Extension and Alpha added combined resources totalling 5.82 mt @ 2.3 g/t Au for 428,000 ounces, at a 1.0 g/t cut off, to the resource inventory at Syama.
• Excellent intercepts were returned from wide spaced drilling on the 12km long Paysans-Senufo trend including 11m @ 3.17g/t Au from 21m, 7m @ 3.84g/t Au from 37m, 3m @ 6.38g/t Au from 26m, 20m @ 1.32g/t Au from 20m, and 8m @ 2.69g/t Au from 35m.

Queensland

• First pass diamond drilling at the Welcome Breccia prospect produced some exceptional drill intercepts including 18m @ 3.92g/t Au from 215m, 19m @ 4.52g/t from 359m, 113m @ 7.7g/t Au from 316m (including 19m @ 31.3g/t Au from 401m), and 53m @ 2.02g/t Au from 475m. Additional diamond drilling is planned to test the vertical and lateral extents of this potential new deposit. Several other Mt Wright style targets in the district are ready for ground geophysical work and/or drill testing.

Golden Pride Project, Tanzania

• A new Joint Venture agreement covering the Golden Pride West tenure was signed with Barrick East Africa Limited. Initial wide spaced reverse circulation drilling returned significant intercepts including 6m @ 3.48g/t from 100m, 18m @ 2.74g/t from 84m, and 9m @ 2.69g/t from 25m.
• In addition to a preliminary inferred resource of 1.85mt @ 1.2g/t Au for 71,000oz at Kavsav, significant reverse circulation drill intercepts have been returned from the China and Kilabili prospects including 10m @ 4.77g/t Au from 24m, 12m @ 1.84g/t Au from 40m, and 7m @ 2.12g/t Au from 43m. These results further emphasise the potential for economically viable satellite resources within trucking distance of Golden Pride.

Cote d'Ivoire

• Resolute has continued to secure significant land holdings over targeted portions of the largely underexplored Birimian greenstone belts in Cote d'Ivoire. First pass surface geochemical programs have already defined ten significant gold and pathfinder element anomalies that will undergo further exploration in the coming year.

CASH & BORROWINGS

• Group cash and bullion at 30 June 2010 was $27.9m (2009: $13.0m).
• Net operating cash inflows during the year (which include exploration expenditure) were $29.2m (2009: $55.3m). This does not include the $9.7m of bullion on hand at 30 June 2010 and has been

impacted by the commencement of corporate income tax payments in Tanzania.

• Net investing cash outflows of $51.5m (2009: $160.3m) with expenditure on evaluation and development areas of $39.6m (2009: $150.3m), including Syama pre production operating costs of $56.5m offset by pre-production sales revenue from gold shipped of $38.8m.
• Fund raising activities during the year ended 30 June 2010, by way of issuing shares, convertible notes and options, provided gross proceeds of $44.1m. Costs associated with the fund raisings were $2.4m.
• At 30 June 2010, Resolute's total face value of borrowings were A$134.9m (2009: A$137.4m) and comprised US$33.6m (or A$39.4m) owing on the Barclays senior debt facility, US$8.5m (or A$10.0m) of loans from Barclays used to purchase gold put options, A$75.6m owing to holders of Resolute Convertible Notes, hire purchase / finance leases totalling A$3.6m, and a A$6.4m bank overdraft facility. The borrowings amounts stated here differ to those shown on the balance sheet as these amounts exclude sunk-cost establishment fees and apportionments between debt and equity as required by accounting standards.
• Repayments of borrowings during the period totalled $14.4m (2009: $27.6m).
• Interest of $9.0m owing on the Resolute Convertible Notes for the 12 months ended 30 June 2010 was paid by way of an issue of Resolute ordinary shares.
• The quantity of hedging commitments decreased during the year ended 30 June 2010 by 114,423 ounces of gold, and as at 30 June 2010, Resolute has 155,080 ounces or 6% of its' attributable gold reserve committed to hedging contracts.
• The average cash price received per ounce of gold sold during the year was A$1,070/oz (2009: A$1,051/oz).

OUTLOOK

Forecast gold production for the Group for the year ending 30 June 2010 is 380,000 ounces at a cash cost of approximately A$870 per ounce (based on an assumed USD/AUD exchange rate of 90 cents). This forecast is sensitive to the ongoing plant optimisation at the Syama gold mine.

Golden Pride

As the Central Pit diminishes its productive areas, mining will focus on the South West Central Cutback.

Equipment availabilities, limited work area and remediation of existing slips in the pit continue to be the major operating challenges during the coming six months.

Mill throughput levels are expected to decline due to the hardness of the ore being treated, and in accordance with the Life of Mine plan, head grades

R a v e n s wood

a

c

S a r s field lo w g rad e o r e s t o c k pile s a r e e x p e c t e d to con tinu e t o b e t r e a t e d wi t h Mt W righ t o r e un til M a r ch 2011 .

G old p rod u c tio n is e x p e c t e d t o b e sligh tly u p in t he 2010 / 2 011 finan cial y e a r a s a r e s ult of t h e e x p e c t ed improvement in head grade outweighing the reduced mill throughput that will occur following the depletion of t h e S a r s field o r e s t ock pile s . C a s h c o s t s p e r o u n c e a re e x p e c t e d t o r e m ain at le v els simila r t o tho s e in 2009 / 1 0.

S y ama

T h e op timis a tion o f pla nt p e r f o r man c e con tinu e s a t t he S y a m a g old min e wi t h all a r e a s e x p e c ting improvement in the coming year. Mill throughout levels and recoveries are bo

th e x p e c t e d t o im p r o v e m a t e rially wit h h ead g rad e s to r e m ain a t simila r le v els t o 200 9/ 1 0.

G old p rod u c tio n is e x p e c t e d t o in c r e a s e sig nifican tly and c a s h c o s t s r edu c e in t h e 2010 /201 1 fina n cial y e a r.

P R S ULLIV AN

C hie f E x e c u tiv e Officer 30 Augu st 2010

YEAR ENDED 30 JUNE 2009 RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT

For the year ended 30 June 2010

TABLE OF CONTENTS

	Page
Appendix 4E	6
Consolidated Statement of Comprehensive Income	7
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	11
Consolidated Cash Flow Statement	13
Notes to the Financial Statements	15

REPORTING PERIOD

The reporting period is the year ended 30 June 2010 with the corresponding reporting period being for the year ended 30 June 2009.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Results				A$'000
Revenues from continuing operations	up	14%	to	342,484
Profit before unrealised treasury and tax	up	28%	to	36,024
Loss from continuing activities after income tax(Profit in the prior year)	down	n/a	to	(56,571)
Net loss attributable to members of the parent(Profit in the prior year)	down	n/a	to	(37,173)

Dividends	Amount persecurity	Franked amountper security
Final dividend ‐ no final dividend is proposed	n/a	n/a
Interim dividend	n/a	n/a
Record date for determining entitlements to the dividend	n/a

The above results should be read in conjunction with the notes and commentary contained within this report.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Note	For the yearended30‐Jun‐10$'000	For the yearended30‐Jun‐09$'000
Continuing Operations
Revenue from gold sales	3(a)	342,484	299,713
Costs of production relating to gold sales	3(b)	(229,007)	(200,589)
Gross profit before depreciation, amortisation and other
operating costs		113,477	99,124
Depreciation and amortisation relating to gold sales	3(c)	(43,141)	(27,578)
Other operating costs relating to gold sales	3(d)	(16,565)	(12,660)
Gross profit		53,771	58,886
Other revenue	3(e)	294	1,633
Other income	3(f)	11,620	10,858
Exploration expenditure		(9,280)	(11,543)
Share of associate's loss		(258)	‐
Administration and other expenses	3(g)	(8,903)	(27,564)
Profit before unrealised treasury, tax and finance costs		47,244	32,270
Finance costs	3(h)	(11,220)	(4,069)
Profit before unrealised treasury and tax		36,024	28,201
Treasury ‐ unrealised (losses)/gains	3(i)	(75,976)	1,141
(Loss)/profit before income tax		(39,952)	29,342
Income tax (expense)/benefit		(16,619)	1,334
Net (loss)/profit		(56,571)	30,676
Net (loss)/profit attributable to:
Members of the parent		(37,173)	30,676
Non‐controlling interest		(19,398)	‐
		(56,571)	30,676

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)

	Note	For the yearended30‐Jun‐10$'000	For the yearended30‐Jun‐09$'000
Other comprehensive (loss)/income
Exchange differences on translation of foreign operations:
‐ Members of the parent		(1,955)	9,816
‐ Non‐controlling interest		1,607	‐
Exchange differences on translation of foreign operations		(348)	9,816
Cash flow hedges: Transfer to statement of comprehensive
income, net of tax		(5,343)	(4,105)
Changes in the fair value of available for sale financial
assets, net of tax		(200)	301
Other comprehensive (loss)/income for the period, net of tax		(5,891)	6,012
Total comprehensive (loss)/income for the period		(62,462)	36,688
Total comprehensive (loss)/income attributable to:
Members of the parent		(44,671)	36,688
Non‐controlling interest		(17,791)	‐
		(62,462)	36,688
Earnings per share for net (loss)/profit attributable to theordinary equity holders of the parent:
Basic (loss)/earnings per share	5	(9.90)	10.30
Diluted (loss)/earnings per share	5	(9.90)	9.74

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	As at	As at
	30‐Jun‐10	30‐Jun‐09
	$'000	$'000
Current assets
Cash	18,259	12,701
Receivables ‐ gold bullion sales	9,662	257
Receivables ‐ other	6,533	4,396
Inventories	85,754	75,265
Available for sale financial assets	818	1,107
Financial derivative assets	89	‐
Other	3,866	6,258
Total current assets	124,981	99,984
Non current assets
Receivables	4,083	5,557
Financial derivative assets	901	6,457
Exploration and evaluation expenditure	10,970	8,928
Development expenditure	231,030	399,416
Property, plant and equipment	221,274	100,135
Deferred mining costs	13,504	17,188
Investment in associate	5,892	‐
Other	‐	1,408
Total non current assets	487,654	539,089
Total assets	612,635	639,073
Current liabilities
Payables	47,652	56,135
Interest bearing liabilities	29,445	24,277
Tax liabilities	3,454	2,160
Financial derivative liabilities	92,075	52,949
Provisions	10,933	6,936
Total current liabilities	183,559	142,457
Non current liabilities
Interest bearing liabilities	93,300	100,738
Financial derivative liabilities	21,026	62,358
Provisions	28,624	30,021
Deferred tax liabilities	3,049	‐
Other liabilities	37	193
Total non current liabilities	146,036	193,310
Total liabilities	329,595	335,767
Net assets	283,040	303,306

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

		As at	As at
		30‐Jun‐10	30‐Jun‐09
	Note	$'000	$'000
Equity attributable to equity holders of the parent
Contributed equity	6	237,083	209,680
Reserves		22,690	15,395
Retained earnings		41,058	78,231
Parent interest		300,831	303,306
Non‐controlling interest		(17,791)	‐
Total equity		283,040	303,306

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES INEQUITY

	Ordinaharry ses	ealisedNetunrgain/(loss)reserve	Hedgereserveforwardsn/()gailoss	tiblConvereuitynoteseqreserve	Shaptioreonsityequreserve	ploityEmyeeequbenefitresserve	eigForn currencynslationtrareserve	ainedRetnineargs	llingNonntro‐cointerest	alTot
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
At1July 2009	209,680	364	5,343	3,492	4,064	1,499	633	78,231	‐	303,306
alrehlossfortheiodt ofTotivetaxcompensper, neslatdiffllingForeigions ‐ Ncy ttron currenranerenceon‐con	‐	(200)	(5,343)	‐	‐	‐	(348)	(373),17	(198),39	(622),46
interest	‐	‐	‐	‐	‐	‐	‐	‐	1,607	1,607
ctioithTransanswowners
Shaisdressue	28,446	‐	‐	‐	‐	‐	‐	‐	‐	28,446
Shaistsresuecos	(1,043)	‐	‐	‐	‐	‐	‐	‐	‐	(1,043)
Options isd totiblholderdotesueconvere ns an
shareholdof tneters,ax	‐	‐	‐	‐	1,923	‐	‐	‐	‐	1,923
of cnd fl inofEquitytioninanciastrunts,netporompoume
diontaxtracttsananscos	‐	‐	‐	10,741	‐	‐	‐	‐	‐	10,741
Share‐bdploents toasepaymemyees	‐	‐	‐	‐	‐	522	‐	‐	‐	522
At30Ju2010ne	237,083	164	‐	14,233	5,987	2,021	285	41,058	(171),79	283,040

The above consolidatedstatement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES INEQUITY (continued)

	Ordinaharry ses	ealisedNetunrn/(gailoss)reserve	Hedgereserveionputoptsn/(loss)gai	Hedgereserveforrdswan/(loss)gai	Contiblvereuitynoteseqreserve	Shaptioreonsityequreserve	ploityEmyeeequbenefitresserve	eigForn currencynslationtrareserve	ainedRetnineargs	alTot
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
ly 2At1Ju008	171,867	63	(42)	9,490	‐	‐	1,103	(9,183)	47,555	220,853
fit/alrehive(loss) fheiodt ofTotor ttaxcompensproper, ne	‐	301	42	(4,147)	‐	‐	‐	9,816	30,676	36,688
ctioithTransanswowners
Shadisressue	40,411	‐	‐	‐	‐	‐	‐	‐	‐	40,411
Shaistsresuecos	(2,598)	‐	‐	‐	‐	‐	‐	‐	‐	(2,598)
Options isd totiblholderdotesueconvere ns an
shareholdof tneters,ax	‐	‐	‐	‐	‐	4,064	‐	‐	‐	4,064
of cnd fl inofEquitytioninanciastrunts,netporompoume
diontaxtracttsananscos	‐	‐	‐	‐	3,492	‐	‐	‐	‐	3,492
Share‐bdploents toasepaymemyees	‐	‐	‐	‐	‐	‐	396	‐	‐	396
At30Ju2009ne	209,680	364	‐	5,343	3,492	4,064	1,499	633	78,231	303,306

The above consolidatedstatement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED CASH FLOW STATEMENT

	As at30‐Jun‐10$'000	As at30‐Jun‐09$'000
Cash flows from operating activities
Receipts from customers	325,447	294,106
Payments to suppliers and employees	(275,625)	(226,139)
Interest received	290	425
Interest and other costs of finance paid	(3,188)	(3,776)
Proceeds from the sale of gold call options	‐	1,569
Expenditure on exploration	(9,280)	(10,861)
Income tax paid	(8,398)	‐
Net operating cash flows	29,246	55,324
Cash flows from investing activities
Payments for property, plant and equipment	(12,218)	(24,377)
Proceeds from sale of property, plant and equipment	48	315
Proceeds from the sale of subsidiaries	284	‐
Proceeds from sale of available for sale financial assets	‐	802
Expenditure on evaluation and development areas	(39,570)	(150,289)
Royalties received	‐	3,234
Proceeds from the Challenger royalty	‐	10,033
Net investing cash flows	(51,456)	(160,282)
Cash flows from financing activities
Proceeds from issues of ordinary shares	18,900	37,033
Cost of issuing ordinary shares	(1,038)	(5,297)
Proceeds from issues of convertible notes	23,864	51,722
Cost of issuing convertible notes	(1,332)	‐
Proceeds from issuing options	1,322	‐
Cost of issuing options	(67)	‐
Proceeds from borrowings	‐	24,978
Repayment of borrowings	(11,815)	(24,862)
Repayment of lease liability	(2,561)	(2,707)
Net financing cash flows	27,273	80,867
Net increase/(decrease) in cash and cash equivalents	5,063	(24,091)
Cash and cash equivalents at beginning of period	6,880	29,731
Exchange rate adjustment	(43)	1,240
Cash and cash equivalents at end of period	11,900	6,880

CONSOLIDATED CASH FLOW STATEMENT (continued)

	As at30‐Jun‐10$'000	As at30‐Jun‐09$'000
Cash and cash equivalents comprise the following:
Cash	18,259	12,701
Bank overdraft	(6,359)	(5,821)
	11,900	6,880

The above consolidated cash flow statement should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF PRELIMINARY FINAL REPORT

a) Corporate information

The preliminary final report of Resolute Mining Limited and its subsidiaries ("Resolute" or the "Group") for the full year ended 30 June 2010 was authorised for issue in accordance with a resolution of directors.

Resolute Mining Limited ("RML") is a company incorporated in Australia and limited by shares, which are publicly traded on the Australian Securities Exchange.

b) Basis of preparation

This report is based on accounts that are in the process of being audited.

This report does not include all notes normally included in an annual financial report. Accordingly this report is to be read in conjunction with the financial report for the year ended 30 June 2009 and any public announcements made by RML during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

NOTE 2: ANNUAL GENERAL MEETING

The annual general meeting will be held as follows:

Place:	To be advised
Date:	To be advised
Time:	To be advised
Approximate date the annual report will be available:	Late October 2010

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: (LOSS)/PROFIT FROM CONTINUING OPERATIONS

			For the yearended30‐Jun‐10$'000	For the yearended30‐Jun‐09$'000
(a)		Revenue from gold sales
		Gold sales at spot price (i)	393,936	329,587
		Realised loss on gold forward contracts	(59,084)	(35,859)
		Amortisation of the gold forward contract hedge reserve	334,8527,632	293,7285,985
			342,484	299,713
	(i)	Proceeds received on the sale of gold produced atthe Syama Project up until 31 December 2009 werecapitalised into pre‐production costs.
(b)		Costs of production relating to gold sales
		Costs of production (excluding gold in circuit inventories movement) (i)	234,139	199,202
		Gold in circuit inventories movement	(5,132)	1,387
			229,007	200,589
	(i)	Costs incurred on the production of gold at theSyamaProject up until31 December 2009 werecapitalised into pre‐production costs.
(c)		Depreciation and amortisation relating to gold sales
		Amortisation of evaluation, development & rehabilitation costs	18,445	10,252
		Depreciation of mine site properties, plant & equipment	24,696	17,326
			43,141	27,578
(d)		Other operating costs relating to gold sales
		Royalty expense	13,232	9,306
		Operational support costs	3,333	3,354
			16,565	12,660
(e)		Other revenue
		Interest income ‐ other persons/corporations	294	425
		Royalty income	‐	1,208
			294	1,633

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: (LOSS)/PROFIT FROM CONTINUING OPERATIONS (continued)

		For the yearended30‐Jun‐10$'000	For the yearended30‐Jun‐09$'000
(f)	Otherincome
	Rehabilitation provision adjustment from non operating mine sites	726	‐
	Profit on sale of Challenger Royalty	‐	10,033
	Realised gain on gold call options	1,522	‐
	Profit on sale of property, plant and equipment	1,934	‐
	Profit on sale of subsidiaries (i)	7,208	‐
	Other	230	825
		11,620	10,858

(i) On 7 May 2010, Resolute disposed of a number of Australian and Ghanaian subsidiaries to Viking Ashanti Limited. Proceeds received comprised of 23 million shares in Viking Ashanti Limited and a cash component. As a result of this transaction, Resolute holds 33.25% of the ordinary shares of Viking Ashanti Limited.

(g) Administration and other expenses

Other management and administration expenses	4,297	3,430
Non mine site insurance costs	737	1,331
Operating lease expenses	512	480
Loss on sale of property, plant and equipment	‐	134
Loss on sale of available forsale financial assets	28	436
Share based payments expense	522	396
Rehabilitation provision adjustment from non operating mine sites	‐	217
Depreciation of non mine site assets	271	183
Realised loss on gold put options	‐	2,397
Realised foreign exchange loss	1,327	1,765
Impairment of accounts receivable	‐	3,180
Impairment of available forsale financial assets	‐	3,140
Impairment of acquired exploration and evaluation assets	‐	10,172
Other	1,209	303
	8,903	27,564

(h) Finance costs

Interest and fees paid/payable to other entities	10,701	3,070
Rehabilitation provision discount adjustment	519	999
	11,220	4,069

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: (LOSS)/PROFIT FROM CONTINUING OPERATIONS (continued)

		For the yearended30‐Jun‐10$'000	For the yearended30‐Jun‐09$'000
(i)	Treasury ‐ unrealised (losses)/gains
	Unrealised gain on gold forward contracts	2,077	12,140
	Unrealised loss on gold put options	(5,467)	(118)
	Unrealised (loss)/gain on gold call options	(1,393)	1,393
	Unrealised foreign exchange gain/(loss)	3,351	(12,591)
	Unrealised foreign exchange (loss)/gain on loans with subsidiaries	(74,544)	317
		(75,976)	1,141

NOTE 4: DIVIDENDS PAID OR PROVIDED FOR

There were no dividends paid or provided for during the year.

FRANKING CREDITS

The amount of franking credits available forsubsequent financial years is as follows. The amount has been determined using a tax rate of 30%. 5,453 5,453

5,453	5,453

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5: EARNINGS PER SHARE

	Consolidated
	2010	2009
Basic earnings pershare
(Loss)/profit used in calculation of basic earnings pershare ($'000)	(37,173)	30,676
Weighted average number of ordinary shares outstanding during the
period used in the calculation of basic EPS	375,297,701	297,921,013
Basic EPS (cents pershare)	(9.90)	10.30
Diluted earnings pershare
(Loss)/profit used in calculation of basic earnings pershare ($'000)	(37,173)	30,676
Tax effected interest on convertible notes ($'000)	6,363	‐
Net (loss)/profit attributable to ordinary equity holders of the parents
adjusted for the effect of convertible notes ($'000)	(30,810)	30,676
Weighted average number of ordinary shares outstanding during the
period used in the calculation of basic EPS	375,297,701	297,921,013
Weighted average number of notional shares used in determining diluted EPS	n/a	17,103,396
Weighted average number of ordinary shares outstanding during the
period used in the calculation of diluted EPS	375,297,701	315,024,409
Number of potential ordinary shares that are not dilutive and hence
not included in calculation of diluted EPS	3,476,000	2,900,000
Diluted EPS (cents pershare)	(9.90)	9.74

Dilutive securities are not included in the calculation of diluted earnings per share because the result for the year ended 30 June 2010 was loss.

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6: ISSUED & CONTRIBUTED EQUITY

	Total	Number	Issue Price	Amount Paid
Ordinary securities	Number	Quoted		Per Security Up Per Security
A s at 30 June 2010	392,586,434	392,586,434
Changes during current period
Increases through exercise o f unlisted options	286,998	286,998	$0.42	$0.42
Increases through exercise o f listed optionsIncreases through placement o f shares to sophisticated	108,819	108,819	$0.60	$0.60
investors	30,000,000	30,000,000	$0.63	$0.63
Increases through conversion o f convertible notesIncreases through issue o f shares to convertible note	583,795	583,795	$0.50	$0.50
holders for interest owingIncreases through issue o f shares to convertible note	4,818,911	4,818,911	$0.94	$0.94
holders for interest owing	4,474,355	4,474,355	$1.02	$1.02
	Total	Number	Exercise	Expiry
	Number	Quoted	Price	Date
Options on issue
A s at 30 June 2010	55,000	‐	$1.12	23/03/2011
	255,000	‐	$1.32	24/10/2011
	213,000	‐	$2.12	22/05/2013
	75,000	‐	$1.62	29/08/2013
	1,250,000	‐	$1.63	1/10/2011
	1,173,002	‐	$0.42	31/01/2014
	95,974,716	95,974,716	$0.60	31/12/2011
	500,000	‐	$1.00	31/03/2012
	500,000	‐	$0.74	30/06/2012
	3,000,0001,064,000	‐‐	$0.72$1.09	24/10/201214/02/2015
Changes during current period
Lapsing o f unlisted options	40,000	‐	$1.41	21/12/2009
Lapsing o f unlisted options	80,000	‐	$1.32	24/10/2011
Lapsing o f unlisted options	24,000	‐	$2.12	22/05/2013
Lapsing o f unlisted options	24,000	‐	$1.62	29/08/2013
Lapsing o f unlisted options	345,000	‐	$0.42	31/01/2014
Exercise o f unlisted options	286,998	‐	$0.42	31/01/2014
Issue o f listed options	(16,097,461)	(16,097,461)	$0.60	31/12/2011
Exercise o f listed options	108,819	108,819	$0.60	31/12/2011
Issue o f unlisted options	(500,000)	‐	$0.74	30/06/2012
Issue o f unlisted options	(3,000,000)	‐	$0.72	24/10/2012
Issue o f unlisted options	(1,237,000)	‐	$1.09	14/02/2015
Lapsing o f unlisted options	173,000	‐	$1.09	14/02/2015
	TotalNumber	NumberQuoted	ExercisePrice	ExpiryDate
Convertible notes on issue
A s at 30 June 2010	151,152,268	151,152,268	$0.50	31/12/2012
Changes during current period
Issue o f notes pursuant to prospectus	34,090,911	34,090,911	$0.50	31/12/2012
Issue o f notes pursuant to debt conversion	14,201,475	14,201,475	$0.50	31/12/2012
Conversion o f convertible notes	(583,795)	(583,795)	$0.50	31/12/2012

NOTES TOTHE FINANCIAL STATEMENTS

NOTE 7: OPERATINGSEGMENTS

				UNALLOCATE	D
2010	RAVENSWOOD	GOLDENPRIDE	SYAMA	/CORPOTHER	TREASURY	TOTAL
	$'000	$'000	$'000	$'000	$'000	$'000
				(b)	(b)
Revenue
ldlesl cuGoat sottoextstosapernamers	8,61545	8611,44	0354,4	‐	‐	393,936
lld slesTotant gsegmeoarevenue	18,4655	181,446	4,0345	‐	‐	393,936
hCasostcs	()101,081	()86,617	()46,441	‐	‐	()234,139
iationd aisaionDerttprecanmo	()21,034	()6,155	()15,952	‐	‐	()43,141
()Otheringttsoperacosa	()6,112	()6,990	()291	()388	‐	()13,781
her/dm()Otin cteostcorporaasa	()53	‐	‐	()3,369	‐	()3,422
/ltbeforher()dSegingincntttretmeoperareseasury,oomeexpensesanu
tax	30,617	8681,4	()8,605	()3,757	‐	99,345
Finaostncecs	‐	‐	‐	‐	()11,220	()11,220
herlisedOttrereaasury	‐	‐	‐	‐	()51,257	()51,257
Segingltbeforlisedherntttretmeoperaresue unreaasury,o
/()incdtaxomeexpensesan	30,176	81,684	()8,650	()3,757	()62,477	36,976
herOtincome	38	9	‐	9,297	294	9,638
lordExpionituatexpenre	()1,865	()2,145	()2,995	()2,284	‐	()9,280
harf as'slosSiateoesocs	‐	‐	‐	()258	‐	()258
herOt	‐	‐	‐	()1,052	‐	()1,052
lisedUntrereaasury	‐	‐	‐	‐	()75,976	()75,976
()/benfitInctaxomeexpensee	()2,290	()15,555	‐	1,226	‐	()16,619
/fit(los)fteNettaxprosar	26,338	63,723	()11,645	3,172	()138,159	()56,571

NOTES TOTHE FINANCIAL STATEMENTS

NOTE 7: OPERATINGSEGMENTS (continued)

				UNALLOCAT	ED
2009	SOORAVENWD	GOLDENPRIDE	SYAMA	/OOCRPTHER	STREAURY	OTTAL
	$'000	$'000	$'000	$'000	$'000	$'000
				(b)	(b)
Revenue
ldlesl cuGoatsottoextstosapernamers	182,159	147,428	‐	‐	‐	329,587
lld slesTotantsegmegoarevenue	182,159	147,428	‐	‐	‐	329,587
hCaostscs	()115,919	()83,283	‐	‐	‐	()199,202
d aDeiationisaionrttprecanmo	()19,955	()7,623	‐	‐	‐	()27,578
heing()Otttsorperacosa	()7,254	()6,807	()2,103	‐	‐	()16,164
/a()Othedmin cteostcorrporasa	‐	‐	‐	()4,223	‐	()4,223
/ltbeforhe()Segingincntttreotmeoperareseasury,romeexpensesu
dtaxan	39,031	49,715	()2,103	()4,223	‐	82,420
Finaostncecs	‐	‐	‐	‐	()4,069	()4,069
heldOtisetrereraasury	‐	‐	‐	‐	()34,036	()34,036
ingltbeforlisedheSegntttreotmeoperaresue unreaasury,r
/()incdtaxomeexpensesan	39,031	49,715	()2,103	()4,223	()38,105	44,315
heOtincrome	‐	‐	‐	11,496	425	11,921
loriondituExpatexpenre	()894	()064,4	()3,223	()3,254	‐	()311,54
Asimirmsettpaen	()9,182	()3,180	‐	()4,130	‐	()16,492
ldUnisetrereaasury	‐	‐	‐	‐	1,141	1,141
/()befitInctaxomeexpensene	()1,760	‐	‐	3,094	‐	1,334
/fit(los)fteNetrtaprosax	27,240	42,489	()5,326	2,812	()36,539	30,676

( a ) Includes intersegment revenue and expenses.

( b ) This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this format by the Chief Operating Decision Makers, and forms part of the reconciliationof the results and positions of the operating segments to the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: NET TANGIBLE ASSETS

	As at	As at
	30‐Jun‐10	30‐Jun‐09
	$'000	$'000
Net tangible assets per share ($)	0.72	0.86

Signed in accordance with a resolution of directors.

P.R. Sullivan Director Perth, Western Australia 30 August 2010