CONSOLIDATED BALANCE SHEET

The increase of US$87.6 million in property, plant and equipment (at cost) since December 2007 is due primarily to expenditure incurred on the underground development work at Loulo amounting to US$33.6 million, power plant expansion of US$4.2 million, upgrades to the crushing plant and expenditure on the overland conveyer, stockpile and tailings facilities of US$21.6 million. Expenditure related to the Tongon project amounted to US$23 million this year and consists primarily of down payments on the mills and mill motors, as well as site establishment costs and infrastructure improvements. The rehabilitation asset at Loulo also increased by US$3 million, due to an increase in cash flows related to the closure plan at Loulo. Our share of the capital expenditure at Morila for the year ending 31 December 2008 amounted to US$1.5 million.
 
The increase in inventories and stockpiles (both long term and short term) is a result of increases in stockpiles mainly at Morila in line with the life of mine plan. In addition to this, the increase is also the result of increases in mining strategic stocks, reagents and grinding media at Loulo, due to increased demand for supplies and insurance spares resulting from the development of the underground mine. As previously noted, Morila will cease in pit mining in the second quarter of 2009, whereafter the stockpiles will be processed, which should result in a reduction in this balance as the asset is expensed through the income statement.
 
Available-for-sale financial assets consist of auction rate securities ("ARS") with a par value of US$49 million. During the second half of the year a provision of US$10.35 million was made against these ARS, following the deterioration of the underlying credit ratings of the collateral of certain of the ARS, as previously explained.
 
The decrease in financial liabilities of forward gold sales is due to a decrease in the negative marked-to-market valuation of contracts held at 31 December 2008 and the delivery of 80 496 ounces during the year. The gold price was US$865/oz at 31 December 2008.
 
The increase in taxation payable is related to an increase in corporate taxes payable at Morila due to higher profits before tax for the year ending 31 December 2008 compared to 31 December 2007.
 
The decrease in long-term receivables year on year is mainly due to a significant decrease in the TVA (VAT) balances at Morila, where the company has offset amounts owing against its corporate tax payments, royalties, and other taxes, as per our mining convention.
 
The increase in short term receivables year on year is partly due to an increase in TVA balances at Loulo since the end of the exoneration period on 8 November 2008, as well as advances made to contractors and an increase in insurance pre payments paid at Loulo.