Consolidated Statement of Financial Position

Property, plant and equipment at cost increased by US$422.9 million at cost for the year ended to 31 December 2010.  This can be attributed to continued capital expenditure across the group’s projects and operations.  Capital expenditure of US$239.6 million was spent on bringing the Tongon mine into production and US$33.2 million on the Kibali project.  During the year a further US$66.2 million was incurred on the Yalea and Gara underground projects at the Loulo mine, while an additional US$8.3 million was spent on the plant expansion and US$6.4 million on the power plant at the mine.  US$16.6 million and US$13.3 million was spent on the Gounkoto and Massawa feasibility projects respectively.  Capital expenditure also includes US$28.3 million in respect of the company’s share of the assets owned through a joint venture asset leasing company with DTP Terassement, the group’s open pit contractor, which owns the mining equipment and leases it to Randgold’s operations at Loulo, Tongon and Gounkoto.

The decrease in the long term ore stockpiles from US$34.2 million to US$9.1 million is due to the depletion of ore at Morila as the mine progresses towards the end of its life, currently expected to be 2013.

The decrease of US$4.0 million in non-current receivables from December 2009 to December 2010 is the result of prior year receivables being considered current at 31 December 2010.

The increase in current inventories and ore stockpiles of US$86.4 million in the current year is partly attributable to Tongon stockpiles now being included, following commencement of mining activities in April 2010, as well as Tongon dore at year end.  Gold in dore at Tongon amounted to 23 428 ounces at year end valued at a production cost of US$11.3 million (net realisable value of the gold at a gold price of US$1 410 at year end was US$33.0 million).  The increase also reflects the additional Tongon mine consumables balance.

The decrease in short term receivables is the primarily due to the settlement of US$26.0 million of TVA at Loulo and Morila, the settlement of contractor receivables and improved debtors management.

The decrease in cash and cash equivalents to US$366.4 million at 31 December 2010, down from US$589.7 million at 31 December 2009, is the consequence of significant investments in property, plant and equipment, as outlined above, offset by strong cash flows from operations and the cash received from the ARS settlement, TVA repayment at Loulo and Morila and the sale of Volta Resources shares.

During the year the number of Volta shares held decreased by 14 million as a result of sales in the market.  Consequently the current available-for-sale financial assets represent primarily an investment in 6 million Volta Resources shares with a market value at the year end of US$14.4 million.

The increase in deferred tax liability of US$12.6 million in the current year compared to US$4.8 million in the prior year is attributable to the continued capital development at the Loulo mine.

The increase in rehabilitation provisions from US$16.9 million at 31 December 2009 to US$29.6 million at 31 December 2010 is the result of the new provision for the Tongon mine of US$9.7 million, as well as an increase in the provision for the Loulo mine due to the larger footprint left by the additional pits.

The financial instruments liability decreased from US$25.3 million at 31 December 2009 to nil at the end of December 2010 following delivery into the final 41 748 ounces of the Loulo hedge programme.  The group is now fully exposed to the spot gold price on all gold sales.

The increase in trade and other payables of US$13.2 million in the current year mainly reflects the effect of additional contractors and accruals at Tongon mine of US$18.4 million, offset by movements in the balances elsewhere in the group.

The current tax payable balance of US$8.0 million at 31 December 2010 is higher than the balance of US$3.6 million at 31 December 2009 following the expiration of the Loulo tax exoneration period (November 2010) and the timing of tax payments at Morila.