BEATRIX MINE

In the quarter ended Jun30/09, gold production at Beatrix increased by 28 per cent from 2,489 kilograms (80,000 ounces) in the March quarter to 3,199 kilograms (102,900 ounces) in the June quarter. This is due to improved mining volumes and quality factors, resulting in an increase in tons milled from 629,000 tons to 774,000 tons. The yield increased from 4.0 grams per ton in the March quarter to 4.1 grams per ton for the June quarter, mainly as a result of a decrease in stope width and higher values mined. Total main development increased by 11 per cent for the quarter from 7,251 metres to 8,065 metres. The main on-reef development decreased from 1,765 metres to 1,476 metres and main off-reef metres increased from 5,485 metres to 6,590 metres. The average value of the main on-reef development increased from 819 centimetre grams per ton for the March quarter to 1,131 centimetre grams per ton for the June quarter. Operating costs increased by 4 per cent from R508 million (US$51 million) in the March quarter to R528 million (US$61 million) in the June quarter. The increase in costs was mainly due to additional overtime worked, incentives paid to employees for improved production, as well as an increase in electricity costs. Total cash cost decreased by 18 per cent from R193,532 per kilogram in the March quarter to R157,862 per kilogram in the June quarter.

Gold production at Beatrix decreased by 25 per cent from 3,320 kilograms (106,700 ounces) in the December quarter to 2,489 kilograms (80,000 ounces) in the March quarter. Tons milled decreased from 798,000 tons to 629,000 tons as a result of lower volumes achieved across the three main production shafts due to limited flexibility, hoisting constraints as a result of a number of stoppages due to electronic problems with 3 shaft’s rock winder and a slow start-up after the Christmas break. Yield decreased from 4.2 grams per ton in the December quarter to 4.0 grams per ton for the March quarter, mainly as a result of an increase in stope width and lower values mined.

Gold production at Beatrix increased by 5 per cent from 3,156 kilograms (101,500 ounces) in the September quarter to 3,320 kilograms (106,700 ounces) in the December quarter. This is lower than the guidance of 3,450 kilograms (111,000 ounces) due to reduced mining volumes, flooding of the winder room at 4 shaft following excessive rain and increased ore accumulations underground resulting in a deterioration in the mine call factor quarter on quarter. Tons milled increased from 790,000 tons to 798,000 tons and the yield increased from 4.0 grams per ton in the September quarter to 4.2 grams per ton for the December quarter, due to an improved mining mix. The overall tonnage increase is as a result of continued mine clean-up and a slightly higher stope width.