KLOOF MINE

In the quarter ended Jun30/09, gold production at Kloof decreased by 7 per cent from 5,406 kilograms (173,800 ounces) in the March quarter to 5,004 kilograms (160,900 ounces) in the June quarter. This decrease was largely due to work stoppages as a result of the three fatalities and seismicity during the quarter. The implementation of new stope support standards had a negative effect on the mine’s performance for the quarter. Although there was an increase in underground tonnage from 543,000 to 638,000, this was offset by a decrease in yield from 9.8 grams per ton to 7.4 grams per ton. The high yield in the March quarter was due to clean-ups of high grade underground historic accumulations in the March quarter. The yield achieved in the June quarter is more representative of that expected going forward. Total main development increased by 28 per cent for the quarter and on-reef development increased by 29 per cent. This improvement in performance was attributed to additional crews deployed from the backlog secondary support to the development sections as secondary support backlog is caught up, as well as the further easing of constraints imposed by the Main shaft repairs. The average development value increased by 14 per cent to 1,932 centimetre grams per ton in the June quarter due to a higher VCR sampled at 2 sub vertical shaft. Operating costs were similar to last quarter at R763 million, but increased in dollar terms from US$76 million in the March quarter to US$89 million in the June quarter. The lower gold output resulted in a 9 per cent increase in total cash cost from R133,796 per kilogram to R145,284 per kilogram.

Gold production increased by 15 per cent from 4,717 kilograms (151,700 ounces) in the December quarter to 5,406 kilograms (173,800 ounces) in the March quarter. The increase in production was as a result of major clean-ups done during the quarter which improved the Mine Call Factor. As a result of the work stoppages due to safety and a slow start-up after the Christmas break, the underground tonnage decreased from 614,000 tons to 543,000 tons. The decrease in underground tonnage was offset by an increase in yield from 7.5 grams per ton to 9.8 grams per ton.

Dold production decreased by 3 per cent from 4,871 kilograms (156,600 ounces) in the September quarter to 4,717 kilograms (151,700 ounces) in the December quarter. This is 12 per cent higher than the market guidance given for the December quarter largely due to higher than planned grades. The quarter on quarter decrease in production of 154 kilograms was as a result of the planned decrease in toll mining of surface waste at South Deep due to priority given to their surface clean-up and down time on ball mills. Despite the continued impact of the Main shaft rehabilitation programme, a section 54 four-day mine-wide work stoppage resulting from a fatal at 8 shaft and a fire at 7 shaft which started in the previous quarter, underground tonnage increased from 603,000 tons to 614,000 tons. The increase in underground tonnage was offset by a decrease in yield from 7.7 grams per ton to 7.5 grams per ton.