Resolute Mining Limited — Annual Report 2012

Aug 27, 2012

FOR THE YEAR ENDED 30 JUNE 2012

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APPENDIX 4E
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HIGHLIGHTS

• Full year net profit after tax attributable to members up by 76% to $105m.

• Distribution to shareholders of 5 cents per share declared by directors

• Full year gold production of 398,451 ounces at a cash cost of $761/oz.

• Total market value of group cash, bullion and investments was $139m at 30 June 2012.

• Effectively ungeared balance sheet with conversion of all Convertible Notes and repayment of Senior Debt.

• Share Buyback Program implemented, with $31m worth of shares bought back by 30 June 2012.

• Unhedged production.

• Strong cash flows to fund identified optimisation and expansion pipeline.

FINANCIAL RESULTS

• Full year revenue from gold sales increased by 30% to $576.7m (2011: $445.1m).

• The average cash price received on the 353,321 ounces of gold sold during the year was $1,627/oz (2011: $1,337/oz).

• The average cash cost per ounce of gold produced during the year was $761/oz (2011: $908/oz).

• Net profit after tax attributable to members increased by 76% to $105.1m (2011: $59.7m) as a result of significant improvement in operating margins. This result includes a $44.9m unrealised foreign currency loss on intercompany loans with subsidiaries.

• Net operating cash inflows during the year (which include exploration expenditure) were $179.2m (2011: $58.6m).

• Net investing cash outflows of $93.3m (2011: $34.2m) with $43.1m accumulation of other financial assets, in line with Resolute’s Cash Management Policy to diversify surplus funds between cash, bullion and gold securities. Other key

investing outflows related to expenditure on plant, equipment, and development.

• Net financing outflows of $45.1m (2011: $31.8m) include $47.7m of borrowing repayments, $31.3m in share buy-backs and $31.9m of proceeds mostly from the exercise of options over Resolute shares.

• The directors have resolved to make a distribution to shareholders of 5 cents per share including a fully franked component of 2.7 cents per share. The payment is anticipated to occur by December 2012.This represents the first such payment by Resolute since 1999 and reflects the current financial strength of the group.

OPERATIONS

• The Group gold production for the year was 398,451 ounces (2011: 330,859) at an average cash cost of $761/oz (2011:$908/oz).

• Syama gold mine in Mali, Africa, produced 145,197 ounces (2011: 85,362) of gold at a cash cost of $784/oz (or US$813/oz) (2011: $1,209/oz or US$1,197/oz).

• Ravenswood gold mine in Queensland, Australia, produced 137,965 ounces (2011: 122,576) of gold at a cash cost of $756/oz (2011: $893/oz).

• Golden Pride gold mine in Tanzania, Africa, produced 115,289 ounces (2011: 122,921) of gold at a cash cost of $737/oz (or US$764/oz) (2011: $713/oz or US$708/oz).

DEVELOPMENT

Mali

• Definitive Feasibility Study confirmed the economic and technical viability of a major multifaceted expansion of the Syama Gold Mine that was subsequently approved by the Board of Resolute.

• Total gold reserves at Syama now stand at 3.64Moz including 0.56Moz in Oxide ore.

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FOR THE YEAR ENDED 30 JUNE 2012

• The Memorandum of Understanding for the proposed Sikasso-Syama power line connection was accepted by the relevant government agencies and submitted to Cabinet for final consideration. The transmission line survey that commenced in March was completed.

Queensland

• A Definitive Feasibility Study examining the reopening of the Sarsfield open pit at Ravenswood has delivered a positive outcome that is currently below internal return hurdles. However, a number of significant opportunities to improve the economics exist and are currently being investigated.

• Underground resource drilling below the current base of the mine at Mt Wright Underground returned significant results including 38m @ 5.05g/t Au from 130m, 58m @ 3.45g/t Au from 85m and 43m @ 3.84g/t Au from 98m.

Tanzania

• Scoping Study evaluation of development opportunities for the Nyakafuru project was completed by independent engineering consultants Mining One. The outcomes from their report are being reviewed and will be incorporated with results from the current resource expansion drilling program being carried out by the exploration team at Kanegele.

EXPLORATION

Exploration drilling was carried out in Mali, Tanzania and Queensland while target definition work continued in Cote d’Ivoire.

Tanzania

• An intensive reverse circulation drilling program, which commenced in late 2011, was designed to infill and upgrade the current resources at the Nyakafuru Project, 120km west of Golden Pride. A number of high grade intersections within and outside of the current published resources at the Voyager and Mentelle prospects included

• 12m@ 10.96g/t Au from 10m, 27m @ 8.60g/t Au from 16m, 12m @ 9.10g/t Au from 91m and 19m @ 16.69g/t Au from 107m and 16m @ 11.41g/t Au from 174m. Early drilling results from nearby Cullen prospect included 14m @ 6.81g/t Au from 2m.

• Diamond drilling also commenced on the Voyager-Mentelle deposits to improve both the geological model and test the continuity of mineralisation at depth. Results from the diamond drilling were also encouraging with significant intercepts of 34m @ 8.87g/t Au from 74m and 16m @ 6.65g/t Au from 123m.

Mali

• Assays were returned from a reverse circulation program completed in June 2011 at the Quartz Vein Hill Prospect, 7km north of Syama. Significant intercepts include 1 5m @ 4.45g/t Au from 4m, 18m @ 2.55g/t Au from 7m, 9m @ 4.92g/t Au from 18m, 21m @ 2.93g/t Au from 32m, 11m @3.81g/t Au from 1m, 14m @ 2.40g/t Au from 66m and 14m @ 2.77g/t Au from 7m.

• Widespread intensive air core drilling continued on a number of project areas. An IP survey carried out over the Tiagole area has identified a number of strong chargeability anomalies which require drill testing.

Queensland

• Drill testing of the Golden Valley breccia complex commenced with a program of three deep diamond drill holes. An interesting suite of rhyolite dykes, intrusive breccias and sericite altered granite was present in all holes with the last two holes displaying encouraging quartz-sulphide veining and associated alteration.

• Results have been received from diamond drill holes beneath the Nolan’s gold system, with the best intersection being 28m @ 4.61g/t Au from 194m.

• At the Welcome Prospect in Queensland, significant results were returned from reverse circulation drilling including 19m @ 1.58g/t Au from 132m, 16m @ 2.98g/t Au

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FOR THE YEAR ENDED 30 JUNE 2012

from 192m, 7m @ 7.84 g/t Au from 76m, 16m @ 3.16g/t Au from 148m, 5m @ 14.00g/t Au from 119m, 18m @ 5.32g/t Au from 106m and 16m @ 3.39g/t Au from 71m.

Endeavour Mining Corporation in the Finkolo Joint Venture in Mali. The purchase is by way of a cash payment of US$20m to be paid to Endeavour by Resolute and is currently awaiting the consent of the Minister of Mines in Mali.

CORPORATE

OUTLOOK

• Market value of group cash, bullion and investments at 30 June 2012 of $139m comprised $48.4m cash (30 June 2011: $25.7m), $42.3m in restricted cash (held as security against a liquid investment) (2011: nil), gold bullion held in metal accounts with a market value of $43.3m (2011: nil) and investments with a market value of $5.5m (2011: $4.0m). The restricted cash is recorded on the Consolidated Statement of Financial Position as Other Financial Assets. The 27,613 ounces of gold bullion on hand is recorded on the Consolidated Statement of Financial Position within Inventories at its production cost of $24.2m (not the $43.3m market value).

• The Company has moved to an effectively ungeared position following the conversion of all listed Convertible Notes on issue and the repayment of all of its Senior Debt. At 30 June 2012, Resolute’s total borrowings were $11.0m (30 June 2011: $126.0m). The significant reduction in borrowings during the period related to the conversion of $68.4m of Convertible Notes to Resolute shares and the voluntary prepayment of the remaining US$22.4m of Senior Debt. As at 30 June 2012, the weighted average interest rate payable on borrowings was 8.0%.

• Repayments of borrowings during the year totalled $47.7m (2011: $46.9m), including two voluntary principal repayments of US$12.4m and US$10.0m to Barclays/Investec in November and December respectively.

• $31.9m was raised through the exercise of options.

• $31.3m was utilised pursuant to the on market Share Buyback Program.

• In the March quarter, Resolute entered into a sale and purchase agreement to acquire the 40 per cent interest of its partner,

Operations

• Forecast gold production for the Group for the year ended 30 June 2013 is 415,000 ounces at a cash cost of approximately $830/oz (based on an assumed USD/AUD exchange rate of US$1.00).

• Resolute’s continued improvement in outlook is underpinned by ongoing progress being achieved at the flagship Syama operation in Mali. Plant throughput and head grades are expected to continue to improve over the period, resulting in another lift in production. This more than offsets the lower production from Golden Pride as that operation moves towards closure by the end of the financial year.

Development and Exploration

• In the coming year Resolute will advance works on the Syama Expansion Project which will include mobilisation of a new mining contractor and commencement of construction of a new oxide circuit and associated infrastructure.

• Work will also commence on installation of the grid power connection at Syama which will deliver significant cost savings and other operational benefits when completed.

• At Ravenswood in Queensland further optimisation work will be undertaken following the outcomes of the Sarsfield Feasibility study. The obtaining of regulatory approvals for this project is expected to be completed during the period. Development drilling to extend the depth of the Mt Wright ore body will also continue.

• Exploration will continue around Syama in Mali, the Golden Valley, Mt Success and Mt Douglas breccia complexes at Ravenswood and at the Nyakafuru project in Tanzania.

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FOR THE YEAR ENDED 30 JUNE 2012

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APPENDIX 4E
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The total exploration budget for the year is $20m.

Corporate

• The on market Share Buyback Program will continue on an opportunistic basis. A further $9.3m of buybacks have been completed since 30 June 2012.

• Cash generation is expected to continue. This provides a strong base for an active but disciplined examination of new growth opportunities balanced against consideration of shareholder returns.

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PR SULLIVAN Chief Executive Officer 28 August 2012

The information in this report that relates to the Mineral Resources and Ore Reserves is based on information compiled by Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Iain Wearing, a member of The Australian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Iain Wearing both have more than 5 years’ experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Richard Bray and Mr Iain Wearing are full time employees of Resolute Mining Limited Group and have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears.

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PRELIMINARY FINAL REPORT

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ACN 097 088 689

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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TABLE OF CONTENTS

	Page
Appendix 4E	7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	12
Consolidated Cash Flow Statement	14
Notes to the Financial Statements	15

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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REPORTING PERIOD

The reporting period is the year ended 30 June 2012 with the corresponding reporting period being for the year ended 30 June 2011.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Results Revenue from gold sales Net profit after tax attributable to members of the parent Profit before tax attributable to members of the parent	A$'000 up 30% to 576,710 up 67% to 127,674 up 76% to 105,103

Distributions Final (cents) Interim Record date for determining entitlements to the distribution	security Amount per	persecurity Franked amount
	5.0	2.7
	n/a	n/a
	To be advised

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

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note	For the year ended 30-Jun-12 $'000		For the year ended 30-Jun-11 $'000
Continuing Operations			445,055 (293,499) 151,556 (62,391) (23,276) 65,889 329 1,316 (8,726) (800) (9,757) (4,574) 730 34,742 79,149 (19,597) 59,552 (16,622) 42,930 59,700 (16,770) 42,930
Revenue from gold sales 3(a) Costs of production relating to gold sales 3(b)	576,710 (262,173)		445,055 (293,499)
Gross profit before depreciation, amortisation and other operating costs	314,537
Depreciation and amortisation relating to gold sales 3(c) Other operating costs relating to gold sales 3(d)	(73,221) (35,076)		(62,391) (23,276)
Gross profit	206,240
Other revenue 3(e) Other income 3(f) Exploration expenditure Share of associate's loss Administration and other expenses 3(g) Treasury - realised losses 3(h) Treasury - unrealised (losses)/gains 3(i) Treasury - movement on gold forward contracts closed out 5	1,504 345 (15,291) (1,285) (11,744) (175) (43,194) -		329 1,316 (8,726) (800) (9,757) (4,574) 730 34,742
Profit before interest and tax	136,400
Finance costs 3(j)	(11,970)		(19,597)
Profit before tax	124,430
Tax expense	(22,571)		(16,622)
Profit for the year Profit/(loss) attributable to: Members of the parent	101,859 105,103
Non-controlling interest	(3,244)		(16,770)
	101,859

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)

Note	For the year ended 30-Jun-12 $'000	For the year ended 30-Jun-11 $'000	For the year ended 30-Jun-11 $'000
Profit for the year (brought forward) Other comprehensive income/(loss) Exchange differences on translation of foreign operations: - Members of the parent - Non-controlling interest Changes in the fair value of available for sale financial assets, net of tax Other comprehensive income/(loss) for the year, net of tax Total comprehensive income for the year Total comprehensive income/(loss) attributable to: Members of the parent Non-controlling interest	101,859 15,604 3,028 (364) 18,268 120,127 120,343 (216) 120,127	42,930 (23,826) 1,438 (52)
		(22,440)
		20,490
		35,822 (15,332)
		20,490
Earnings per share for net profit attributable to the ordinary equity holders of the parent: Basic earnings per share 6 Diluted earnings per share 6	18.62 16.13	13.42 10.97

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Current assets	As at As at 30-Jun-12 30-Jun-11 $'000 $'000
Cash Other financial assets - restricted cash Receivables - gold bullion sales Receivables - other Inventories Available for sale financial assets Financial derivative assets Tax receivable	48,404 11,213 42,267 - - 14,465 5,957 4,033 141,901 96,464 374 692 2,364 11 621 -
Other Total current assets Non current assets Receivables Exploration and evaluation expenditure Development expenditure Property, plant and equipment	4,567 3,270
	246,455 130,148
	2,143 3,769 9,522 9,045 208,543 219,329 167,388 190,878
Deferred mining costs Investment in associate Total non current assets Total assets Current liabilities Payables Interest bearing liabilities	28,229 20,585 2,223 5,092
	418,048 448,698
	664,503 578,846
	42,948 47,433 7,878 23,539
Tax liabilities	- 2,725
Financial liabilities Provisions Total current liabilities Non current liabilities Interest bearing liabilities Provisions Deferred tax liabilities Total non current liabilities Total liabilities Net assets	- 18,910 21,573 14,455
	72,399 107,062
	3,142 78,341 45,483 38,000 486 1,125
	49,111 117,466
	121,510 224,528
	542,993 354,318

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

	As at As at 30-Jun-12 30-Jun-11 $'000 $'000
	368,047 287,125 2,424 (442) 205,861 100,758 576,332 387,441 (33,339) (33,123) 542,993 354,318
Equity attributable to equity holders of the parent Contributed equity
Reserves Retained earnings	2,424 (442) 205,861 100,758
Parent interest
Non-controlling interest	(33,339) (33,123)
Total equity

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
At 1 July 2011 Profit/(loss) for the period Other comprehensive (loss)/income, net of tax Total comprehensive (loss)/income for the period, net of tax Transactions with owners Shares issued Share issue costs Share buy-backs Equity portion of compound financial instruments, net of tax and transaction costs	287,125 112 13,764 5,987 3,236 (23,541) 100,758 (33,123) 354,318
	- - - - - - 105,103 (3,244) 101,859 - (364) - - - 15,604 - 3,028 18,268
	- (364) - - - 15,604 105,103 (216) 120,127 112,235 - - - - - - - 112,235 (41) - - - - - - - (41) (31,272) - - - - - - - (31,272) - - (13,764) - - - - - (13,764)
Share-based payments to employees At 30 June 2012	- - - - 1,390 - - - 1,390
	368,047 (252) - 5,987 4,626 (7,937) 205,861 (33,339) 542,993

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

At 1 July 2010	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	237,083 164 14,233 5,987 2,021 285 41,058 (17,791) 283,040
Profit/(loss) for the period - - - - - - 59,700 (16,770) 42,930 Other comprehensive income/(loss), net of tax - (52) - - - (23,826) - 1,438 (22,440) Total comprehensive income/(loss) for the period, net of tax - (52) - - - (23,826) 59,700 (15,332) 20,490 Transactions with owners Shares issued 53,107 - - - - - - - 53,107 Share issue costs (3,065) - - - - - - - (3,065) Equity portion of compound financial instruments, net of tax and transaction costs - - (469) - - - - - (469)	- - - - - - 59,700 (16,770) 42,930 - (52) - - - (23,826) - 1,438 (22,440)
Share-based payments to employees At 30 June 2011	- - - - 1,215 - - - 1,215
	287,125 112 13,764 5,987 3,236 (23,541) 100,758 (33,123) 354,318

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT
	Consolidated
	For the For the year ended year ended 30-Jun-12 30-Jun-11
	$'000 $'000
Cash flows from operating activities Receipts from customers Payments to suppliers, employees and others Income tax paid Exploration expenditure Interest paid Interest received	591,175 440,378 (362,597) (353,220) (23,425) (15,825) (15,881) (8,649) (11,604) (4,373) 1,504 329
Net cash flows from operating activities	179,172 58,640
Cash flows from investing activities Payments for property, plant & equipment Proceeds from disposal of property, plant & equipment Payments for other financial assets Payments for development costs Other Net cash flows from investing activities Cash flows from financing activities Proceeds from issuing ordinary shares Costs of issuing ordinary shares Payments for share buy backs Payments for close-out of derivatives funded with proceeds from issuing ordinary shares Repayment of borrowings Repayment of lease liability Proceeds from finance facility Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Exchange rate adjustment	(24,412) (20,415) - 71 (43,103) - (24,818) (13,225) (990) (673)
	(93,323) (34,242)
	31,911 41,826 (41) (3,065) (31,272) - - (30,368) (43,959) (44,243) (3,760) (2,705) 1,974 6,750
	(45,147) (31,805)
	40,702 (7,407) 3,671 11,900 (1,231) (822)
Cash and cash equivalents at the end of the period	43,142 3,671
Cash and cash equivalents comprise the following: Cash Bank overdraft	48,404 11,213 (5,262) (7,542)
	43,142 3,671

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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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 2012 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 2011 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 2012

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APPENDIX 4E: PRELIMINARY FINAL REPORT
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NOTE 3: PROFIT FROM CONTINUING OPERATIONS

NOTE 3: PROFIT FROM CONTINUING OPERATIONS
	For the For the year ended year ended 30-Jun-12 30-Jun-11 $'000 $'000 Consolidated
(a) Revenue from gold sales Gold sales at spot price Realised loss on gold forward contracts (b) Costs of production relating to gold sales Costs of production (excluding gold in circuit inventories movement) Gold in circuit inventories movement (c) Depreciation and amortisation relating to gold sales Amortisation of evaluation, development and rehabilitation costs Depreciation of mine site properties, plant and equipment (d) Other operating costs relating to gold sales Royalty expense Operational support costs Write-off of obsolete spares and consumables (e) Other revenue Interest income - other persons/corporations	576,710 462,911 - (17,856) 576,710 445,055 303,104 300,342 (40,931) (6,843) 262,173 293,499 36,342 23,712 36,879 38,679 73,221 62,391 28,676 19,541 4,284 3,735 2,116 - 35,076 23,276 1,504 329 1,504 329

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APPENDIX 4E: PRELIMINARY FINAL REPORT
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NOTE 3: PROFIT FROM CONTINUING OPERATIONS (continued)

NOTE 3: PROFIT FROM CONTINUING OPERATIONS (continued)
	For the For the year ended year ended 30-Jun-12 30-Jun-11 $'000 $'000 Consolidated
(f) Other income	258 1,073 - 139 87 104 345 1,316 5,151 4,379 618 714 821 770 1,390 1,215 197 250 8,177 7,328 186 - 1,584 - 1,201 1,361 596 1,068 3,567 2,429 11,744 9,757 (4,014) (3,909) 3,839 (665) (175) (4,574)
Rehabilitation provision adjustment from non operating mine sites
Profit on sale of property, plant and equipment Other
(g) Administration and other expenses Other management and administration expenses Non mine site insurance costs Operating lease expenses Share based payments expense Depreciation of non mine site assets Loss on sale of property, plant and equipment Impairment of investment in associate Impairment of accounts receivable Other
(h) Treasury - realised gains/(losses) Realised loss on gold put options Realised foreign exchange gain/(loss)

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APPENDIX 4E: PRELIMINARY FINAL REPORT
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NOTE 3: PROFIT FROM CONTINUING OPERATIONS (continued)

NOTE 3: PROFIT FROM CONTINUING OPERATIONS (continued)
	For the For the year ended year ended 30-Jun-12 30-Jun-11 $'000 $'000 Consolidated
	4,002 2,930 2,364 - (4,622) 7,991 (44,938) (10,191) (43,194) 730 10,445 18,612 1,525 985 11,970 19,597
(i) Treasury - unrealised (losses)/gains Unrealised gain on gold put options Unrealised gain on financial derivative assets Unrealised foreign exchange (loss)/gain Unrealised foreign exchange loss on loans with subsidiaries (i)
(i) Due to an accounting standard requirement the unrealised foreign exchange gains and losses on intercompany balances between entities in the Group are taken directly to the Group’s profit or loss.
(j) Finance costs Interest and fees paid/payable to other entities Rehabilitation provision discount adjustment

NOTE 4: DIVIDENDS PAID OR PROVIDED FOR

The directors have resolved to make a 5 cent distribution to shareholders including a fully franked component of 2.7 cents per share. The payment is expected to occur by December 2012.

FRANKING CREDITS

The amount of franking credits available for subsequent financial years is as follows. The amount has been determined using a tax rate of 30%. 7,417 7,417

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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NOTE 5: FINANCIAL LIABILITIES

• a) In October 2010, the Group completed the close out of its hedge book. Funding for the gold purchases to achieve this comprised approximately $30.368m from an equity raising and $47.991m of credit from the hedging counterparties, Barclays and Investec.

• b) During the year ended 30 June 2012 the remaining balance of the Barclays/Investec hedging credit facility of $18.909m was repaid in full, with the final repayment being made on 30 September 2011.

In addition, the remaining balance of the Barclays/Investec Senior Debt facility of $20.923m (US$22.425m) was repaid in full with the final repayment made on 30 December 2011.

• c) During the period 136,670,429 convertible notes were converted into equity resulting in a reduction in convertible note debt of $64.663m. This amount was transferred into contributed equity, along with the associated equity reserves of $13.764m.

NOTE 6: EARNINGS PER SHARE

Basic earnings per share Profit used in calculation of basic earnings per share ($'000) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic EPS Basic EPS (cents per share) Diluted earnings per share Profit used in calculation of basic earnings per share ($'000) Tax effected interest on convertible notes ($'000) Net profit attributable to ordinary equity holders of the parent adjusted for the effect of convertible notes ($'000) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic EPS Weighted average number of notional shares used in determining diluted EPS Weighted average number of ordinary shares outstanding during the period used in the calculation of diluted EPS Number of potential ordinary shares that are not dilutive and hence not included in calculation of diluted EPS Diluted EPS (cents per share)	Jun-12 Jun-11 105,103 59,700 564,360,652 444,809,350 18.62 13.42 105,103 59,700 - 8,305 Consolidated
	105,103 68,005 564,360,652 444,809,350 87,044,675 175,133,158
	651,405,326 619,942,508 977,400 1,873,000 16.13 10.97

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APPENDIX 4E: PRELIMINARY FINAL REPORT
30 JUNE 2012
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NOTE 7: ISSUED & CONTRIBUTED EQUITY

NOTE 7: ISSUED & CONTRIBUTED EQUITY
Ordinary securities	Total Number $'000 Number Quoted
As at 1 July 2011	467,638,948 467,638,948 287,125
Changes during current period, net of issue costs Increases through exercise of unlisted options Increases through exercise of listed options Increases through conversion of convertible notes (non cash, converted at a face value of 50 cents per share) Decrease through on market share buy backs As at 30 June 2012 Options on issue As at 30 June 2012	1,484,669 1,484,669 1,325 50,962,416 50,962,416 30,577 136,670,429 136,670,429 80,292 (22,327,839) (22,327,839) (31,272) 634,428,623 634,428,623 368,047 Total Number Exercise Expiry Number Quoted Price Date 195,000 - $2.12 22/05/2013 51,000 - $1.62 29/08/2013 517,333 - $0.42 31/01/2014 3,000,000 - $0.72 24/10/2012 556,000 - $1.09 14/02/2015 81,000 - $1.21 15/07/2015 135,000 - $1.43 15/11/2015 2,000,000 - $1.36 4/01/2016 996,000 - $1.43 24/01/2016 130,000 - $1.18 15/07/2016 782,400 - $1.85 26/01/2017 8,443,733 - $1.13

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30 JUNE 2012
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NOTE 7: ISSUED & CONTRIBUTED EQUITY (continued)

	Total	Number		Exercise	Expiry
	Number	Quoted		Price	Date
Options on issue (continued)
Changes during current period
Lapsing of unlisted options	(18,000)		-	$2.12	22/05/2013
Lapsing of unlisted options	(44,666)		-	$1.09	14/02/2015
Lapsing of unlisted options	(1,250,000)		-	$1.63	1/10/2011
Exercise of unlisted options	(163,334)		-	$0.42	31/01/2014
Exercise of listed options	(50,962,416)	(50,962,416)		$0.60	31/12/2011
Lapsing of listed options	(94,307)	(94,307)		$0.60	31/12/2011
Exercise of unlisted options	(500,000)		-	$1.00	31/03/2012
Exercise of unlisted options	(500,000)		-	$0.74	30/06/2012
Exercise of unlisted options	(138,334)		-	$1.09	14/02/2015
Exercise of unlisted options	(18,000)		-	$1.21	15/07/2015
Exercise of unlisted options	(125,000)		-	$1.32	24/10/2011
Exercise of unlisted options	(40,001)		-	$1.43	24/01/2016
Lapsing of unlisted options	(126,999)		-	$1.43	24/01/2016
Issue of unlisted options	823,200		-	$1.85	26/01/2017
Lapsing of unlisted options	(40,800)		-	$1.85	26/01/2017
	Total	Number		Conversion	Expiry
	Number	Quoted		Price	Date
Convertible notes on issue
As at 1 July 2011	136,862,475	136,862,475		$0.50	31/12/2012
Changes during current period
Conversion of convertible notes	(136,670,429)	(136,670,429)		$0.50	31/12/2012
Redemption of convertible notes	(192,046)	(192,046)		$0.50	31/12/2012
As at 30 June 2012	-		-	-	-

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30 JUNE 2012
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NOTE 8: OPERATING SEGMENTS

NOTE 8: OPERATING SEGMENTS
For the year ended 30 June 2012 Revenue Gold sales at spot to external customers (a) Total segment gold sales revenue Cash costs Depreciation and amortisation Other operating costs (b) Other corporate/admin costs (b) Segment operating result before treasury, other income/(expenses) and tax Other income Exploration expenditure Finance costs Abnormal and other items Segment operating result before treasury and tax Treasury - realised losses Treasury - unrealised losses Income tax (expense)/benefit Profit/(loss) for the year	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) 225,056 155,281 196,373 - - 576,710 UNALLOCATED
	225,056 155,281 196,373 - - 576,710 (104,292) (84,953) (113,859) - - (303,104) (29,637) (5,945) (37,639) - - (73,221) (12,519) 8,089 9,958 (1,174) - 4,354 - - - (4,304) - (4,304)
	78,608 72,472 54,833 (5,478) - 200,435 - - - 87 1,504 1,591 (4,630) (3,971) (4,846) (1,844) - (15,291) - - - - (11,970) (11,970) (2,307) - - (4,659) - (6,966)
	71,671 68,501 49,987 (11,894) (10,466) 167,799 - - - - (175) (175) - - - - (43,194) (43,194) - (22,661) - 90 - (22,571)
	71,671 45,840 49,987 (11,804) (53,835) 101,859

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NOTE 8: OPERATING SEGMENTS (continued)

NOTE 8: OPERATING SEGMENTS (continued)
For the year ended 30 June 2012	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) UNALLOCATED
Cash flow by segment, including receivables - gold bullion sales, and gold shipped but unsold and held in metal accounts Reconciliation of cash flow by segment to the cash flow statement: Movement in receivables - gold bullion sales Movement in bank overdraft Movement in gold shipped but unsold and held in metal accounts Transfer to restricted cash and included in Other Financial Assets Mark to market movement in unsold gold Exchange rate adjustment Movement in cash and cash equivalents per consolidated cash flow statement Capital expenditure Segment assets Segment liabilities	72,613 54,043 46,236 (5,387) (59,212) 108,293 14,465 2,280 (44,456) (42,267) 1,156 1,231 40,702 27,488 426 24,585 220 - 52,719
		40,702
		52,719
	124,776 73,418 358,645 107,660 4	664,503
	38,467 29,677 44,653 2,952 5,761	121,510

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NOTE 8: OPERATING SEGMENTS (continued)

NOTE 8: OPERATING SEGMENTS (continued)
For the year ended 30 June 2011 Revenue Gold sales at spot to external customers (a) Total segment gold sales revenue Cash costs Depreciation and amortisation Other operating costs (b) Other corporate/admin costs (b) Segment operating result before treasury, other income/(expenses) and tax Other income Exploration expenditure Finance costs Realised loss on gold forward contracts delivered into with production Abnormal and other items Segment operating result before treasury and tax Treasury - gains on gold forward contracts closed out Treasury - realised losses Treasury - unrealised gains Income tax expense Profit/(loss) for the year	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) 170,036 176,745 116,130 - - 462,911 UNALLOCATED
	170,036 176,745 116,130 - - 462,911 (109,435) (87,710) (103,197) - - (300,342) (24,791) (6,502) (31,098) - - (62,391) (5,672) (9,383) (4,175) (682) - (19,912) (64) - - (4,585) - (4,649)
	30,074 73,150 (22,340) (5,267) - 75,617 - - - 1,073 572 1,645 (2,374) (1,950) (2,933) (1,469) - (8,726) - - - - (19,597) (19,597) - - - - (17,856) (17,856) - - - (2,429) - (2,429)
	27,700 71,200 (25,273) (8,092) (36,881) 28,654 - - - - 34,742 34,742 - - - - (4,574) (4,574) - - - - 730 730 - (16,314) - (308) - (16,622)
	27,700 54,886 (25,273) (8,400) (5,983) 42,930

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NOTE 8: OPERATING SEGMENTS (continued)

NOTE 8: OPERATING SEGMENTS (continued)
For the year ended 30 June 2011	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) UNALLOCATED
Reconciliation of total segment revenue to statement of comprehensive income: Total segment gold sales revenue to external customers Realised loss on gold forward contracts Total revenue per statement of comprehensive income Cash flow by segment, including receivables - gold bullion sales Reconciliation of cash flow by segment to the cash flow statement: Movement in receivables - gold bullion sales Movement in bank overdraft Exchange rate adjustment Movement in cash and cash equivalents per consolidated cash flow statement Capital expenditure Segment assets Segment liabilities	462,911 (17,856) 445,055 23,541 60,409 (29,779) (3,193) (53,221) (2,243) (4,803) (1,183) 822 (7,407) 21,697 1,145 6,871 216 - 29,929	462,911 (17,856)
		445,055
		(7,407)
		29,929
	130,130 65,500 354,333 28,872 11	578,846
	39,257 24,392 37,064 10,557 113,258	224,528

(a) Revenue from external sales for each reportable segment is derived from several customers.

(b) Includes inter-segment revenue and expenditure.

(c) 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 reconciliation of the results and positions of the operating segments to the financial statements.

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APPENDIX 4E: PRELIMINARY FINAL REPORT
22
30 JUNE 2012
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NOTE 9: NET TANGIBLE ASSETS

NOTE 9: NET TANGIBLE ASSETS
	As at	As at
	30-Jun-12	30-Jun-11
	$'000	$'000
Net tangible assets per share ($)	0.86	0.76

Signed in accordance with a resolution of directors.

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P.R. Sullivan Director Perth, Western Australia 27 August 2012

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