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ST BARBARA LIMITED Investor Presentation 2012

Oct 23, 2012

65749_rns_2012-10-23_88c52b9c-1d80-484c-811f-0ed51a8aa62c.pdf

Investor Presentation

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St Barbara Limited ACN 009 165 066

Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999

www.stbarbara.com.au

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Presentation on the September 2012 Quarter

Attached is a presentation to analysts and investors by Tim Lehany, Managing Director and CEO.

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Ross Kennedy

Executive General Manager Corporate Services Company Secretary 24 October 2012

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September 2012 Quarterly Report Highlights

Tim Lehany, Managing Director & CEO

24 October 2012

1

Disclaimer

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This presentation has been prepared by St Barbara Limited (“Company”). The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should read this document in its entirety, consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice appropriate to their jurisdiction and consult a financial adviser if necessary. The Company is not licensed to provide financial product advice in respect of the Company’s securities.

This presentation may contain forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of gold. Forward-looking statements include those containing such words as anticipate, estimates, forecasts, should, will, expects, plans or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. Nothing in this document is a promise or representation as to the future. Actual results may vary from the information in this presentation and any variation may be material. Past performance is not an indication of future performance. Statements or assumptions in this presentation as to future matters may prove to be incorrect and any differences may be material. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions. Investors are cautioned not to place undue reliance on such statements.

This presentation has been prepared by the Company based on information available to it and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party.

The Company estimates its reserves and resources in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 2004 Edition ("JORC Code"), which governs such disclosures by companies listed on the Australian Securities Exchange.

Financial figures are in Australian dollars. Financial year is 1 July to 30 June.

2

September 2012 Quarterly Report Highlights

Highlights

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  • St Barbara gained control of the Allied Gold Mining Plc group on 7 September 2012, including:

  • Simberi in Papua New Guinea and

  • Gold Ridge in the Solomon Islands

  • Post-acquisition integration activities are well advanced and are progressing to schedule

  • Gold production expected to increase in Q2 and 2H FY13

  • FY13 guidance maintained for the Australian Operations

  • Expect to update Allied Gold’s previous guidance by 31 January 2013

3

September 2012 Quarterly Report Highlights

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Tragically, on 8 September, a local villager working at the Simberi Mine was fatally injured in an incident involving the aerial rope ore transport conveyor. Mining operations were suspended and recommenced following a mourning period. Personal safety is the foundation of our business, and we are rigorously reviewing the implications of this incident.

4

September 2012 Quarterly Report Highlights

Combined Quarterly Output

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Combined Output All Operations

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130
120
115 17
107
19
19 15 97
20
15
12 14
28
16 14
24 25
21 16 19
14 17
9
16
54
40 46 44
34
FY 12 FY 12 FY 12 FY 12 FY 13
Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep
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  • Chart compares total output quarter on quarter

  • St Barbara acquired Pacific Operations 7 Sep 2012

  • St Barbara attributable gold production next slide

  • Commentary on each operation follows

Gwalia King of the Hills Marvel Loch Simberi Gold Ridge Total

koz

Figures displayed to nearest thousand ounces.

5

September 2012 Quarterly Report Highlights

St Barbara Attributable Gold Production

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St Barbara Attributable Gold Production

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99
86
84
28 78
71
4
24 25 4
16
21 19
14 17
9
16
54
40 46 44
34
FY 12 FY 12 FY 12 FY 12 FY 13
Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep
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• Includes Pacific Operations from 7 September 2012

  • FY13 guidance for Australian Operations maintained

  • Commentary on each operation follows

Gwalia King of the Hills Marvel Loch Simberi Gold Ridge Total

koz

Figures displayed to nearest thousand ounces.

6

September 2012 Quarterly Report Highlights

Gwalia

Gold Production

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54
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46
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44

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40
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34

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  • June quarter was a record, due to high grade main lode stopes

  • Lower grade stopes in Q1

  • Change of mining contractor during Q1

  • Initial poor reliability of new haul trucks (now rectified)

  • Processed low grade underground ore and surface stockpiles

FY 12 FY 12 FY 12 FY 12 FY 13 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep koz

  • Processing recovery at 96%

  • Full year guidance maintained

7

September 2012 Quarterly Report Highlights

Gwalia grade and costs

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Grade

Mined Grade

  • Q1 mined grade 7.4 g/t Au in accordance with mine schedule

  • Majority of ore sourced from lower grade areas of South West Branch and South Gwalia Series

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10.5
8.1
7.5
9.3
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  • Reserve grade 8.7 g/t Au

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7.4
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Costs

  • Q1 costs of $853/oz almost entirely due to lower gold production

FY 12 FY 12 FY 12 FY 12 FY 13 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep g/t Au

8

September 2012 Quarterly Report Highlights

King of the Hills

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Gold Production

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17
16
16
14
9
FY 12 FY 12 FY 12 FY 12 FY 13
Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep
koz
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  • Production ahead of expectations

  • Q1 cash operating costs $754/oz (FY12 $753/oz)

  • Opportunities to expand mineral resources to be drill tested in FY13

9

September 2012 Quarterly Report Highlights

Southern Cross Operations

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Gold Production

28 25 24 21 19 FY 12 FY 12 FY 12 FY 12 FY 13 Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep koz

  • Marvel Loch underground production winding down

  • Underground mining expected to cease by end October 2012

  • Processing expected to continue until end November 2012

  • Operations generated positive net cash flows in Q1

10

September 2012 Quarterly Report Highlights

Integrating Pacific Operations

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  • Collaborative approach to integration at all levels of the organisation

  • Supply chain to be redesigned to improve logistics and reduce supply costs

  • St Barbara’s centralised procurement function rolling out supply contracts to leverage the benefit of existing and new group-wide contracts

  • Implementing expenditure controls to manage capital expenditure programs and reduce operating costs

  • Mine plans are being completely re-cast with focus on plan compliance and ore presentation

  • Close management of the oxide expansion and new power generation plant projects at Simberi

11

September 2012 Quarterly Report Highlights

Gold Ridge Operations Solomon Islands

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Gold Production
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  • St Barbara assumed control 7 September 2012

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20
19 19
17
14
FY 12 FY 12 FY 12 FY 12 FY 13
Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep
koz
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  • Production down due to poor mine planning and plan execution, ore handling and plant performance

  • Access to higher grade Kupers and Dawsons Pits washed away

  • Technical Services team deployed to site to improve mining efficiencies, materials handling, processing throughput and recoveries

  • Expect to see performance trend improving

12

September 2012 Quarterly Report Highlights

Simberi Operations

Papua New Guinea

Gold Production

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16
15
15
14
12
FY 12 FY 12 FY 12 FY 12 FY 13
Q1 Sep Q2 Dec Q3 Mar Q4 Jun Q1 Sep
koz
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  • St Barbara assumed control 7 September 2012

Production below expectations due to rope conveyor stoppages for 43 days

Production anticipated to increase with completion of oxide processing expansion project due March 2013

New power generators due December 2012, will assist to reduce operating costs

Supply chain to be redesigned to improve logistics and reduce supply costs

13

September 2012 Quarterly Report Highlights

FY13 focus on extending near mine reserves and targeting new discoveries

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  • Exploration spend $25+M Simberi

  • Active drilling programs Simberi • Ore bodies open • Near mine targets for exploration

  • Leonora Gold Ridge • Sulphide potential

  • • Gwalia open at depth • King of the Hills remains open along strike

  • • Attractive regional Gold Ridge targets. • Ore bodies open • Near mine targets for

  • East Lachlan exploration

  • Leonora • Regional exploration

  • Southern Cross

Southern Cross

  • Mineral resources identified East Lachlan

  • • Targets to follow up previous results • Prospective exploration area for copper-gold porphyry mineralisation

Tabar-Tatau

  • Exploration potential

  • Multiple drilling targets on both islands

14

September 2012 Quarterly Report Highlights

D&G Q1 Highlights

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  • Gold Mineralisation intercepted below and north of the Dawsons deposit at Gold Ridge, Solomon Islands. Results from hole GDC035 included (all intercepts down-hole, details in Table 1):

  • 4m @ 5.5 g/t Au from 3m;

  • 23m @ 5.4 g/t Au from 33m;

  • 8m @ 4.4 g/t Au from 144m.

  • At Botlu South West on Simberi Island, encouraging trench sampling results included 35m@ 6.1 g/t Au.

15

September 2012 Quarterly Report Highlights

Cash and debt as expected

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  • A$76 million cash at 30 September 2012

  • Interest bearing liabilities A$121 million[[2]] (inc. NAB/Barclays loan of A$117 million[[2]] )

  • Red Kite gold loan A$76 million[[2] ] (pre-existing Allied facility)

  • Gearing (inc. gold loan) at 30 September 2012 approx. 19%[ [1] ]

  • Litigation with GR Engineering settled

[1] Debt / debt + equity [2] As at 30 Sep 2012

16

September 2012 Quarterly Report Highlights

Conclusion

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  • Acquisition of Allied Gold completed

  • Integration well advanced

  • Production expected to increase in December 2012 quarter

  • and into second half of FY13

  • Update Allied Gold’s previous guidance from Pacific Operations expected by 31 January 2013

  • Drilling Programs targeting discoveries continuing at:

    • Gwalia region, Leonora, WA
  • Gold Ridge, Solomon Islands

  • Yilgarn Province, WA

  • Simberi, Papua New Guinea

  • East Lachlan, NSW

17

September 2012 Quarterly Report Highlights

Appendices

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18

September 2012 Quarterly Report Highlights

FY13 guidance Australian operations

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King of Gwalia Total the Hills Leonora Leonora Leonora

Gold production koz 175-190

55-60 230-250

Cash operating cost $/oz 670-700 840-870 710-745

Capex

$M

45-50

20-25

65-75

19

September 2012 Quarterly Report Highlights

Appendices

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20

September 2012 Quarterly Report Highlights

Combined Quarterly Output

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Production Summary
Consolidated
Mar Qtr
FY12
Jun Qtr
FY12
Sep Qtr
FY13
Gold Production
Gwalia
oz
King of the Hills
oz
Southern Cross
oz
Gold Ridge
oz
Simberi
oz
Consolidated
oz
Mined Grade
Gwalia
g/t Au
King of the Hills
g/t Au
Southern Cross
g/t Au
Gold Ridge
g/t Au
Simberi
g/t Au
Total Cash Operating Costs
Gwalia
$/oz
King of the Hills
$/oz
Southern Cross
$/oz
Consolidated
$/oz
Gold Ridge
$/oz
Simberi
$/oz

43,881
54,340
34,293

17,110
16,393
15,935

24,849
28,083
19,176

19,056
16,845
14,079

15,051
14,602
13,733
85,840
98,816
97,216

9.3
10.5
7.4

4.2
4.0
4.3

2.6
3.2
2.2

1.5
1.5
1.4

1.1
1.1
1.1
627
580
853
693
746
754
1,272
1,127
1,583
827
763
1,032
1,4721
1,8201
1,713

1,4451
1,5671
1,277

The combined quarterly gold production of St Barbara’s Australian and Pacific Operations is presented in the above table for comparative purposes, noting that gold production attributable to St Barbara from Simberi and Gold Ridge is measured from 7 September 2012.

21

1 Previously reported USD converted to AUD at average exchange rate for respective quarter

St Barbara Attributable Gold Production

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St Barbara Attributable
Gold Production
Production Summary
Consolidated
Sep Qtr
FY13
Production
Gwalia
oz
King of the Hills
oz
Southern Cross
oz
Gold Ridge1
oz
Simberi1
oz
Consolidated
oz
Mined Grade

Gwalia
g/t
King of the Hills
g/t
Southern Cross
g/t
Gold Ridge1
g/t
Simberi1
g/t
Total Cash Operating Costs
Gwalia
$/oz
King of the Hills
$/oz
Southern Cross
$/oz
Australia
$/oz
Gold Ridge1
$/oz
Simberi1
$/oz

34,293

15,935

19,176

4,057

4,269
77,730

7.4

4.3

2.2

1.3

1.1

853

754

1,583

1,032

1,838

1,251

~~2~~ 2

1 Pacific Operations attributable from 7 September 2012

September 2012 Quarterly Report Highlights

Gwalia

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Production Summary Mar Qtr Jun Qtr Sep Qtr
Gwalia FY12 FY 12 FY13
Underground ore mined t 145,609 161,989 137,693
Grade g/t 9.3 10.5 7.4
Low grade ore & stockpiles t 22,440 19,957 45,841
Grade g/t 2.6 2.3 1.4
Ore milled t 168,049 181,943 185,125
Grade g/t 8.4 9.6 6.0
Recovery % 97 97 96
Gold production oz 43,881 54,340 34,293

Cash Operating Costs
$ per ounce
Mining 465 384 598
Processing 99 87 143
Site services 68 59 114
Stripping and ore inventory adjustments (41) 11 (40)
591 541 815
By product credits (3) (3) (4)
Third party refining & transport 2 1 2
Royalties 37 41 40
Total cash operating costs 627 580 853
Depreciation and amortisation 232 220 238
Total operating costs 859 800 1,091

September 2012 Quarterly Report Highlights

~~2~~ 3

King of the Hills

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Production Summary Mar Qtr Jun Qtr Sep Qtr
King of the Hills FY12 FY12 FY13
Underground ore mined t 136,016 136,486 114,358
Grade g/t Au 4.2 4.0 4.3
Ore milled t 131,739 133,482 117,559
Grade g/t Au 4.3 4.0 4.4
Recovery % 94 95 95
Gold production oz 17,110 16,393 15,935
Cash Operating Costs $ per ounce
Mining 569 564 531
Processing 201 215 195
Site services 31 36 38
Stripping and ore inventory adjustments (132) (90) (33)
669 725 731
By product credits (17) (19) (19)
Third party refining & transport - 1 1
Royalties 41 38 41
Total cash operating costs 693 746 754
Depreciation and amortisation 298 299 350
Total operating costs 991 1,045 1,104

24

September 2012 Quarterly Report Highlights

Marvel Loch

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Production Summary
Marvel Loch
Mar Qtr
FY12
Jun Qtr
FY12
Sep Qtr
FY13
Underground ore mined
t
Grade
g/t Au
Ore milled
t
Grade
g/t Au
Recovery
%
Gold production
oz
Cash Operating Costs
Mining
Processing
Site services
Stripping and ore inventory adjustments
By product credits
Third party refining & transport
Royalties
Total cash operating costs
Depreciation and amortisation
Total operating costs
240,957
235,966
175,471
2.6
3.2
2.2
527,790
501,394
456,949
1.6
2.0
1.5
89
88
88
24,849
28,083
19,176
$per ounce
664
575
794
488
400
668
103
81
122
(11)
34
(33)
1,244
1,090
1,551
(17)
(5)
(6)
3
1
1
42
41
37
1,272
1,127
1,583
272
260
274
1,544
1,387
1,857

September 2012 Quarterly Report Highlights

Gold Ridge

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Gold Ridge
Production Summary Mar Qtr Jun Qtr Sep Qtr
Gold Ridge FY12 FY12 FY13
Ore mined t 493,309 532,253 420,005
Grade g/t 1.5 1.5 1.4
Ore milled t 538,609 472,609 435,081
Grade g/t 1.5 1.5 1.4
Recovery % 72 76 74
Gold production oz 19,056 16,845 14,079

Cash Operating Costs
$ per ounce[1]
Mining 292 430 465
Processing 534 731 732
Site services 352 346 411
Stripping and ore inventory adjustments (200)
(94) 64
1,083 1,307 1,672
By product credits (18) (10) (10)
Third party refining & transport 6 4 5
Royalties 31 54 46
Total cash operating costs 1,1021 1,3551 1,713
Depreciation and amortisation 2931 4471 390
Total operating costs 1,3951 1,8021 2,103

1 Previously reported USD figures converted at average exchange rate for respective quarter after adjusting Site Services costs for By Product Credits

26

September 2012 Quarterly Report Highlights

Simberi

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Simberi
Production Summary Mar Qtr Jun Qtr Sep Qtr
Simberi FY12 FY 12 FY13
Ore mined t 518,866 521,236 503,728
Grade g/t 1.1 1.1 1.1
Ore milled t 509,206 482,440 464,261
Grade g/t 1.1 1.1 1.1
Recovery % 86 83 83
Gold production oz 15,051 14,602 13,733

Cash Operating Costs

$ per ounce[1]
Mining 271 357 373
Processing 456 513 513
Site services 279 406 275
Stripping and ore inventory adjustments 12 (101) 59
1,018 1,175 1,220
By product credits (7) (6) (7)
Third party refining & transport 8 10 18
Royalties 41 40 46
Total cash operating costs 1,060 1,219 1,277
Depreciation and amortisation 310 334 329
Total operating costs 1,369 1,553 1,606
  • 1 Previously reported USD figures converted at average exchange rate for respective quarter after adjusting Site Services costs for By Product Credits

27

September 2012 Quarterly Report Highlights

Start safe, stay safe

Safety

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14.8
12.5
11.1
9.0
6.1
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  • Tragically, on 8 September, a local villager working at the Simberi Mine was fatally injured in an incident involving the aerial rope conveyor. Mining operations were suspended and recommenced following a mourning period

  • TRIFR for Australian Operations improved from 9.0 at June 2012 to 6.7 at September 2012

  • Overall TRIFR, including Pacific Operations, 6.1 at September 2012

FY 09 FY 10 FY 11 FY 12 Q1 TRIFR FY 13

(rolling 12 month average Total Recordable Injury Frequency Rate)

28

September 2012 Quarterly Report Highlights

Investor Relations Enquiries

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Ross Kennedy Executive General Manager Corporate Services E: [email protected]

Rowan Cole General Manager Corporate Services E: [email protected]

T: +61 3 8660 1900

29

September 2012 Quarterly Report Highlights

Competent persons statement

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The information in this report that relates to Exploration Results and Mineral Resources in Australia is based on information compiled by Mr. Phillip Uttley, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Phillip Uttley is a full-time employee of St Barbara Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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” (JORC Code). Mr. Uttley consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Ore Reserves in Australia is based on information compiled by Mr. John de Vries, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. de Vries is a full-time employee of St Barbara Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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” (JORC Code). Mr. de Vries consents to the inclusion in the statement of the matters based on his information in the form and context in which it appears.

The information in this document that relates to Exploration Results, Mineral Resources and Ore Reserves for Simberi and Gold Ridge, together with any related assessments and interpretations, has been based on information compiled by Colin Ross Hastings who is a Member of The Australasian Institute of Mining and Metallurgy. Colin Ross Hastings is a full-time employee of St Barbara Ltd. Colin Ross Hastings has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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’ (JORC Code). Colin Ross Hastings consents to the inclusion of the information relating to Exploration Results, Mineral Resources and Ore Reserves for Simberi and Gold Ridge contained in this document in the form and context in which it appears.

30

September 2012 Quarterly Report Highlights

Non-IFRS Measures

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We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS financial measures, including cash operating costs. We believe that these measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance.

Cash operating costs are calculated according to common mining industry practice using The Gold Institute (USA) Production Cost Standard (1999 revision).

31

September 2012 Quarterly Report Highlights