2006
Quarterly Report 30 June 2006

CONSOLIDATED BALANCE SHEET

  At At At At
  30 Jun 31 Mar 31 Dec 30 Jun
  2006 2006 2005 2005
US$000     (Restated) + (Restated) +
Assets        
Non-current assets        
Property, plant and equipment 228 426 214 716 202 636 178 449
Cost 272 047 253 375 236 331 205 136
Accumulated depreciation and amortisation (43 621) (38 659) (33 695)  (26 687)
Deferred stripping costs - -

- +

 - +
Deferred taxation 2 385 2 866 2 957 + -
Long-term ore stockpiles 26 841 24 710 22 176 + 21 195 +
Total non-current assets 257 652 242 292 227 769 + 199 644 +
Current assets        
Deferred stripping costs - - - + - + 
Inventories and stockpiles 39 956 30 495 34 210 + 9 404 +
Receivables 49 554 49 907 47 918 41 949
Cash and cash equivalents 151 531 158 139 152 452 56 556
Total current assets 241 041 238 541 234 580 + 107 909 +
Total assets 498 693 480 833 462 349 + 307 553 +
Shareholders' equity 303 123 294 049 301 822 + 198 486 +
Minority interest 3 436 2 617 1 395 -954
Total equity 306 559 296 666 303 217 + 197 532 +
Non-current liabilities        
Long-term borrowings 37 593 48 786 49 538 68 755
Loans from minority shareholders in subsidiaries 2 633 2 533 2 483 2 441
Financial liabilities - forward gold sales 50 261 48 710 34 151 12 993
Provision for rehabilitation 9 661 9 571 9 480 8 872
Total non-current liabilities 100 148 109 600 95 652 93 061
Current liabilities        
Financial liabilities - forward gold sales 24 168 18 158 8 939 1 037
Current portion of long-term borrowings 24 779 23 504 22 991 1 692
Accounts payable and accrued liabilities 36 077 28 500 28 813 14 231
Taxation payable 6 962 4 405 2 737 -
Total current liabilities 91 986 74 567 63 480 16 960
Total equity and liabilities 498 693 480 833 462 349 + 307 553 +

+   Restated due to change in accounting policy relating to deferred stripping. See note on accounting policies.


Main balance sheet movements for the six months ended 30 June 2006 were as follows :

  • Property, plant and equipment increased due to work performed on Phase 2 at Loulo, as well as the commencement of construction of the underground mine at Yalea at Loulo.

  • Inventories and stockpiles increased due to higher gold stock on hand compared to December, due to the timing of gold shipments. Warehouse inventories also increased in line with the stocking policy during the wet season.

  • Receivables remained constant, however an agreement was reached with the Government of Mali on a repayment plan of fuel taxes and VAT at Morila. Judgment granting a final order for the liquidation of MDM Ferroman (Pty) Ltd ("MDM") was given on August 2, 2006. This opened the way for the company to proceed with additional claims against MDM for amounts advanced to MDM in excess of the lump sump contract.

  • The decrease in long-term borrowings mainly reflects the first payment made of US$8.4 million on the Loulo project finance loan, as well as payments made on the Loulo CAT finance lease.

  • The increase in financial liabilities of forward gold sales is due to an increase in the negative marked-to-market valuation of contracts held at 30 June 2006. The gold price was US$613.50 at 30 June 2006.

  • The increase in accounts payable and accrued liabilities reflects increased drilling activity during the period at Loulo as well as the procurement of equipment and materials for the underground project at Loulo.

  • Taxation payable relates to income taxes at Morila following the end of the five year tax holiday in November 2005.
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