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Statement of consolidated cash flows

for the year ended 31 December 2006

US$000
Notes 
Group
31 Dec
2006
 
Group
31 Dec
2005
(Restated)~
 
       
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
Profit after tax
  
50 876 
47 856 
Income tax expense
  
23 097 
170 
Profit before income tax
  
73 973 
48 026~
Net interest received
  
(1 559)
(203)
Depreciation and amortisation
  
22 844 
11 910 
Other losses/(gains) - net
  
653 
(45)
Effect of roll forward of hedges
  
4 413 
Unwind of discount on provisions for environmental rehabilitation
  
541 
254 
Share-based payments
  
2 369 
2 243 
 
  
103 234 
62 185~
Effects of changes in operating working capital items:
  
  
  
receivables  
(9 640)
(12 101)
inventories and ore stockpiles
  
(19 428)
(34 569)~
accounts payable and accrued liabilities
  
9 469 
14 408 
Cash generated from operations before interest and tax
  
83 635 
29 923 
Interest received
  
7 384 
2 064 
Interest paid
  
(5 825)
(1 861)
Income tax paid
  
(14 784)
(390)
Net cash generated from operating activities
  
70 410 
29 736 
       
CASH FLOW FROM INVESTING ACTIVITIES
 
 
 
Additions to property, plant and equipment*
  
(61 508)
(73 217)
Repayments from/(financing of) contractors
24 
105 
(11 276)
Net cash used by investing activities
  
(61 403)
(84 493)
       
CASH FLOW FROM FINANCING ACTIVITIES
 
 
 
Ordinary shares issued
  
3 653 
105 248 
Long term loans repaid
  
(21 756)
(1 156)
Long term loans received*
  
24 877 
Cash (used by)/generated from financing activities
  
(18 103)
128 969 
 
  
  
  
NET (DECREASE)/INCREASE IN CASH AND EQUIVALENTS
  
(9 096)
74 212 
CASH AND EQUIVALENTS AT BEGINNING OF YEAR
  
152 452 
78 240 
CASH AND CASH EQUIVALENTS AT END OF YEAR
  
143 356 
152 452 
       
Cash at bank and in hand
  
10 948 
15 353 
Short term bank deposits
  
132 408 
137 099 
 
   
143 356 
152 452 

The effective interest rate on short term bank deposits was 4.82% (2005: 2.77%). These deposits have an average maturity of
30 days.

* Excluded from the comparatives is the Loulo power plant acquired in 2005 under a finance lease agreement of US$6.8 million.

~ Restated due to change in accounting policy relating to stripping costs. Refer note 6.

The notes are an integral part of these financial statements.