You are on page 1of 70

Gold Sector Review

6th Feb 2013

WHITMAN HOWARD MINING EQUITY RESEARCH

Mining Sector
Stocks Included:
African Barrick Gold Agnico Eagle Alacer Gold Alamos Gold Allied Nevada Gold AngloGold Ashanti Apex Minerals Argonaut Gold Atna Resources Aura Minerals AuRico Gold Aurizon Mines Avocet Mining B2 Gold Banro Corp Barrick Gold Besra Gold Brigus Gold Buenaventura Centamin Egypt Centerra Gold CGA Mining China Gold Intl Coeur DAlene Crocodile Gold DRD Gold Dundee Precious Dynacor Eldorado Gold Endeavour Mining Gold Fields Evolution Mining Gold One Gold Resource Corp Goldcorp Golden Star Resources Gryphon Gold Harmony Gold High River Gold Highland Gold IAMGOLD Jaguar Mining Kingsgate Consols. Kingsrose Mining Kinross Lake Shore Gold Luna Gold Mandalay Resources McEwan Mining Medusa Mining Nevsun Resources New Dawn Mining New Gold Newcrest Mining Newmont Mining Nord Gold Northern Star Res. Nova Gold Oceana Gold Orvana Minerals Osisko Mines Pan African Resources Perseus Mining Petropavlovsk Polymetal Intl Polyus Gold Primero Mining Ramellius Resources Randgold Resources Red 5 Ltd Regis Resources Resolute Mining Richmont Mines Rio Alto Mining St Andrew Goldfields St Barbara San Gold Saracen Minerals SEMAFO Signature Metals Silver Lake Resources Tanami Gold Teranga Gold Timmins Gold Troy Resources Unity Mining Veris Gold Yamana Gold

The Major Gold Producers


A sector steeped in mediocrity
In this review, we analyse more than 85 of the major globally listed gold producers and continue to despair in a sector steeped in mediocrity. We continue to struggle to find producers who can consistently meet our plus 25% annualised return on shareholders funds criteria. The sector has focussed on production and per ounce valuations for too long and will be forced to focus on shareholders returns as competition increases for the investor dollar. Gold Exchange Traded Funds offer similar gold price exposure, but with none of production, operating cost, political or management risks associated with gold producers. Elsewhere, we felt eleven stocks had the potential to meet or exceed our interest criteria. Only Nevsun Resources (NSU-TSX) has lived up to its potential, although both Centamin (CEY) and Nord Gold (NORD) have continued to produce returns that are only slightly shy of our demanding criteria. Others such as AngloGold Ashanti (AGD/AMG-JSE/ AU-NYSE/AGG-ASX), Buenaventura (BVN-NYSE/BUE-LM), Alamos Gold (AGI-TSX), CGA Mining (CGA-TSX/CHX-ASX), DRD Gold (DRD-JSE), Kingsrose Mining (KRM-ASX) and Perseus Mining (PRU-ASX/TSX) have disappointed for a variety of reasons. Gold Resource (GORO-NYSE) which was dismissed from this list as it was very expensive, quickly ran into production issues which impacted the share price, however recent results indicate a recovery to superior returns. As this recovery in annualised shareholders return has not been reflected in any pick up in share price, Gold Resource now joins the list of companies to watch closely. A new crop of potential high performers have been identified, Dynacor Gold (DNGTSX) and Mandalay Resources (MND-TSX) are the most consistent, while recent numbers from Argonaut Gold (AR-TSX), Northern Star Resources (NST-ASX), Rio Alto Mining (RIO-TSX/BVL), Teranga Gold (TGZ-TSX/ASX), Timmins Gold (TMMTSX/TGD-NYSE) and Veris Gold (VG-TSX), suggest they too should be monitored to see if a high return trend is permanently established.

Roger Bade - Mining Analyst +44 (0)20 7087 4578


R.Bade@whitman-howard.com

Neil Pidgeon - Mining Sales +44 (0)20 7087 4577


N.Pidgeon@whitman-howard.com

www.whitman-howard.com

This document is a marketing communication and is not independent research prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to a prohibition on dealing ahead of the dissemination of investment research. Please see disclaimer for further information.

6th Feb 2013

The Major Gold Producers

Gold Review Introduction


Our analysis of the majority of the major globally listed gold producers (more than 85) exposes a sector steeped in mediocrity. The sector has focussed on production and per ounce valuations for too long and will be forced to focus on shareholders returns as competition increases for the investor dollar. In this sector this is from gold Exchange Traded Funds, which offer similar gold price exposure, but with none of production, operating cost, political or management risks associated with gold producers. We analyse those gold producers that may meet our return criteria and introduce their poorly performing competitors. As a result of our analysis, we would focus on Nevsun Resources (NSU-TSX), Dynacor Gold (DNG-TSX), Gold Resource Corp (GORO-NYSE), and Mandalay Resources (MND-TSX) and would pay close attention to updates from Argonaut Gold (AR-TSX), Northern Star Resources (NST-ASX), Rio Alto Mining (RIO-TSX/BVL), Teranga Gold (TGZ-TSX/ASX), Timmins Gold (TMM-TSX/TGD-NYSE) and Veris Gold (VG-TSX). We reiterate that we are not gold bugs, hence we do wish to add to the airwaves with a view on the gold price, other than to point out that if a gold mining company is not making decent returns now at almost US$1,700 per ounce (/oz), it will never do so, and certainly not at our preferred conservative long term gold price scenario of $1,000/oz. With over 85 listed major gold producing companies worldwide, and many hundreds of listed juniors in the UK, Australia, Canada, South Africa and the USA, we also appreciate that covering this sector properly may be a major effort. In Appendix 1 we briefly introduce the major gold companies that we have analysed. Appendix 2 contains the annualised returns on shareholders funds information for each company. With gold mining shares underperforming the physical metal and Exchange Traded Funds, in order to focus on the fundamentals we will only consider those gold majors that generate consistently a plus 25% return on shareholders equity. As noted very few gold companies are able to produce this sort of return on a consistent basis; hence a considerable cull of companies, many of them well known producers, can be undertaken. Therefore in this review we will not be considering African Barrick Gold (ABG), Agnico Eagle Mines (AEM-TSX), Alacer Gold (ASR-TSX), Alamos Gold (AGI-TSX), Allied Nevada Gold (ANV-TSX), AngloGold Ashanti (AGD/ANG-JSE/AU-NYSE/AGGASX), Apex Minerals (AXM-ASX), Atna Resources (ATN-TSX), Aura Minerals (ORATSX), AuRico Gold (AUQ-TSX/NYSE), Aurizon Mines (ARZ-TSX), Avocet Mining (AVM), B2Gold (BTO-TSX), Banro Corp (BAA-TSX/NYSE), Barrick Gold (ABXTSX/NYSE), Besra Gold (Olympus Pacific Minerals) (BEZ-ASX/TSX), Brigus Gold (BRD-TSX), Buenaventura (BVN-NYSE/BUE-BVL), Centamin Egypt (CEY), Centerra Gold (CG-TSX), China Gold International Resources (CGG-TSX/2099.HK), Coeur dAlene Mines (CDE-NYSE/CDM-TSX), Crocodile Gold (CRK-TSX), DRD Gold (DRDJSE), Dundee Precious Metals (DPM-TSX), Eldorado Gold (EGO-TSX), Endeavour Mining (EDV-TSX/EVR-ASX), Evolution Mining (EVN-ASX), Gold Fields (GFI-JSE), Goldcorp (G-TSX), Gold One International (GDO-JSE/ASX), Golden Star Resources (GSC-TSX/GSS-NYSE), Gryphon Gold (GGN-TSX), Harmony Gold Mining (HARJSE/HMY-NYSE), Highland Gold (HGM), IAMGOLD (IAG-TSX), Jaguar Mines (JAGTSX), Kingsgate Consolidated (KCN-ASX), Kingsrose Mining (KRM-ASX), Kinross Gold (K-TSX), Lake Shore Gold (LSG-TSX/NYSE), Luna Gold (LGC-TSX/BVL), McEwan

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Mining (MUX-TSX/NYSE), Medusa Mining (MML/MML-ASX), New Dawn Mining (ND-TSX), New Gold (NGD-TSX), Newcrest Mining (NCM-ASX), Newmont Mining Corp (NEM-NYSE), Nord Gold (NORD), Oceana Gold (OGC-ASX), Orvana Minerals (ORC-TSX), Osisko Mining (OSK-TSX), Pan African Resources (PAF), Perseus Mining (PR-TSX/ASX), Petropavlovsk (POG), Polymetal International (POLY), Polyus Gold (POLG), Primero Mining (PPP-TSX), Ramellius Resources (RMS-ASX), Randgold Resources (RRS), Red 5 Limited (RED-ASX), Regis Resources (RRL-ASX), Resolute Mining (RSG-ASX), Richmont Mines (RIC-TSX), St Andrew Goldfields (SAS-TSX), St Barbara (SBM-ASX), San Gold Corp (SGR-TSX), Saracen Mineral Holdings (SAR-ASX), SEMAFO (SMF-TSX), Signature Metals (SBL-ASX), Silver Lake Resources (SLR-ASX), Tanami Gold (TAM-ASX), Troy Resources (TRY-ASX/TSX), Unity Mining (UML-ASX), and Yamana Gold (YAU), as these companies do not come close to meeting our shareholder return criteria and show no evidence of much improvement going forward.

Shareholders return calculations


As noted above we focus on annualised shareholders returns. This is calculated as the shareholder return for the period divided by shareholders equity. With quarterly numbers, we times the quarterly shareholders return by four and divide by the end period shareholders funds, to get an annualised number. For interims, or half year results, we multiply the shareholders return by 2 and divide it by the end period shareholders funds, again to get an annualised number. For annual or full year results the full year shareholders return is divided by the end period shareholders funds. The shareholders return, or total profit for the period attributable to shareholders, or owners of the parent, is calculated from the companys profit and loss account and is often given in the companys statement of comprehensive income. Hence this number is made up of net income attributable to shareholders, plus or minus any adjustments for foreign exchange movements, taxation, write off of assets, or profits or losses on the sale of assets. It is important to ensure that this number excludes minority, or non-controlling interests. Shareholders funds, or equity attributable to shareholder, or just equity, is given in the companys balance sheet. Again it is important to exclude minority interests and it is equally important to exclude minority interests from both numbers! As shareholders equity moves from quarter to quarter, or from half to half, the full year shareholders return, wont necessarily be the average of the four quarters, or the two halves. The annual return is also not necessarily the sum of the four quarterly shareholders return divided by four, as quarterly and interim data are unaudited and can change as the year progresses. In our calculations we have aimed for three sets of annualised shareholders returns from consecutive periods, either quarterly, or half and full years. If a shareholder return is negative, we have given the shareholders return a zero value. If quarterly data is available we have used it, even if the half yearly and annual data is readily available. For those Australian and UK companies that dont issue quarterly financial information, we have only used interim and final numbers in our calculations. For those that have occasionally issue quarterly data, we will use this to the detriment of half yearly numbers, once the company has confirmed that it will continue to issue those quarterly numbers. This often happens when an Australian company obtains a Canadian listing. They then should issue quarterly numbers, but they often dont.

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

To further complicate matters, Australian companies tend to have a June year end; whereas UK listed producers tend to have a December year end. Hence our table (Appendix 2) has gaps in it, but certainly trends can be established. Gold mining companies and well behaved investors have been conditioned to search for gold production and production cost information, the cost to shareholders of generating this production is often ignored. At the peak of the Tech boom in the early 2000s, we attended a seminar that attempted to convince us that Earnings Before Interest Tax Depreciation and Amortisation was the way forward, such that price earnings multiples could be said to be redundant. In fact all it did was to reemphasise how expensive Tech stocks really were! Hence if gold producing companies look expensive on traditional valuation grounds, they probably are and there is no need to invent a new valuation tool to show that they arent. The reasons why a gold mining company may have a poor return on equity are varied, their costs may be high and rising, production may have been disappointing, their taxation planning may be a mess and hence tax rates are too high, the company may have paid too much for past acquisitions and as, by and large, these companies hold too much cash and hence have too little gearing on their balance sheets, although often with such poor returns on equity, this may be a good thing, as gearing would only make things worse! Fortunately there are a few gold mining companies that have a decent track record, although some have distorted their returns owing to derivative success, or sharp movements in deferred tax. Those that fall into this category have underlying returns that approach the mediocre mean.

Conclusion Gold Producers with plus 25% shareholders returns


We will only consider those gold producers that consistently generate an above 25% annualised return on shareholders funds; however we will monitor those that are on an improving trend. Argonaut Gold (AT-TSX) has popped its head above the parapet with a good quarter to end September 2012. This was caused by higher production at both of its mines particularly helped by higher grades at El Castillo. With strong production continuing into Q4, it is hoped that this momentum can continue, although some uncertainty may have been caused by their bid for Prodigy Gold. They trade on a prospective earnings multiple of around 12 times which appears up with events. Dynacor Gold Mines (DNG-TSX) has an enviable track record of superior returns from its gold processing operations in Peru. However even though the share price has doubled since the beginning of October 2012, it is still only capitalised at around C$50m. Following the recent pull back, it trades at a little over 4 times prospective earnings multiple which seems attractive. Gold Resource Corporation (GORO-NYSE) has been a top performer for some time, and this may be expected to continue as their El Aguila gold mine in Mexico is performing strongly. After a blip in Q2 2012, owing to production issues, the company has roared back with a strong September 2012 quarter, while Q4 production numbers indicate that this momentum should continue. The company trades on a prospective earnings multiple of around 22 times, which is not cheap, but this masks the 6 cent per share monthly dividend and 5.3% dividend yield at the current $13.50 share price.

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Mandalay Resources (MND-TSX) has recorded two cracking quarters and has indicated that with record production in Q4 this good performance should be maintained. However following a strong share price run to almost $1.20, this is now being reflected with a 12 times prospective earnings multiple. Q4 numbers really need to exceed 5 cents per share of earnings, versus 3 cents in Q3 2012, for this share price momentum to be maintained. Nevsun Resources (NSU-TSX) has successfully financed and brought on stream Eritreas first large scale gold mine. After a major production blip, operational performance appears to be improving and if this continues without the share price recovering, an opportunity may be presented. At around $4.10 per share, they trade on a price earnings multiple of a tad more than 4.5 times. Northern Star Resources (NST-ASX) recorded a fall in its outstanding return in the year to end June 2012. It appears growth pains have caught up with it, with increases in depreciation, administration and exploration affecting the result. Nevertheless with an annualised return just hovering below threshold and a very strong past track record future results will be examined with interest. The September 2012 quarterly reported indicated that they are track with plans to generate $65-86m of surplus cash flow in the current year to end June 2013. After 6 cents of earnings in the year to end June 2012 10 cents would put them on a demanding 10 times prospective earnings multiple at a share price of around A$1.00. Rio Alto Minings (RIO-TSX/BVL) September 2012 results were poor and were hit by a near 50% tax rate. This brought a good run that lasted two quarters to an end. With Q4 production only meeting mid-range of that forecast and a continuing high tax rate, one suspects that poor quarterly numbers are set to become normal. At around $5.20 per share they trade at around a 10.5 times multiple, which is not cheap. Teranga Gold (TGZ-TSX/ASX) has shown consistent mediocre performance, however they have roared to life in Q3, as production at their Sabodala mine ramped up. At around $1.75 they trade at around 8 times prospective earnings. This is not cheap considering, they pay no tax. It is not clear what has caused the recent significant fall in share price. Timmins Gold (TMM-TSX/TGD-NYSE) is a gold producer that has had a few good quarters, the latest being the most recent. With continuing strong production numbers, strong performance seems likely to continue. At around $2.75 per share they trade at around an 10.5 times prospective multiple. This appears up with events. Veris Gold (VG-TSX) is even more striking as a one quarter wonder with strong numbers in Q3 2012 following a string of losses. It will be interesting how robust their numbers will prove to be particularly with a down Q4 on winter weather production issues already warned. It seems likely that this disappointment will just prevent the group reporting a profit for 2012. If Q3 earrings are annualised, at around $1.60 per share they trade on a 4.5 times prospective multiple, which appears up with events without evidence that positive momentum can be maintained into 2013.

Previous watch list


We should undertake some self-flagellation on the companies that we highlighted in our previous study. This was on the premise of identifying those with the potential of sustaining 20% annualised returns on shareholders funds. It comes as no surprise that only two out of eighteen companies managed this feat, Gold Resource (GORONYSE) and Nevsun Resources NSU-TSX).

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

We should have stuck with our strict plus 25% criteria, rather than hope underpformers would take advantage of the decent gold price. To be fair Centamin (CEY) has maintained its plus 20% performance, but has yet to hit a 25% annualised return on shareholders funds. With higher taxes to come in Egypt, it may never reach that level of performance, while the political situation in that country is likely to remain a very significant short term share price determinant. Alamos Gold (AGI-TSX) has only produced one quarter of above 20% annualised return on shareholders funds and they since have returned to the mediocrity category AngloGold Ashanti (AGD/AMG-JSE/AU-NYSE/AGG-ASX) was previously a stand out performer, but recent strike action in South Africa has killed performance. The search for a new Chief Executive Officer may dampen returns in the short term, as the successful candidate may ask for a large write down, before he or she arrives. A spin out of the South African interests in a deal similar to that underway by Gold Fields (GFI-JSE) would be welcome. Atna Resources (ATN-TSX) had passed the threshold for excitement in early 2011, but only due to large income tax credits. Recent results indicate it has slipped back to generating subnormal returns, like its peers. Buenaventura (BVN-NYSE/BUE-LM) returns have been declining as production is flat, and yet costs appear to be rising faster than the gold price. This decline may continue for a few more quarters, but the company does have a number of new projects that are set to come on stream and hence contribute to earnings. CGA Mining (CGA-TSX/AGX-ASX) has in the past produced volatile returns and this has continued, in spite of increasing production. No sign of any ability to achieve plus 25% returns has been shown. Centerra Gold (CG-TSX) has provided strong returns on equity in the past, but the recent deterioration appears permanent. As for Centamin (CEY) the political situation, this time in Kyrgyzstan, is likely to remain a very significant short term share price determinant. DRD Gold (DRD-JSE) appear to shown that top returns seen in 2011 have passed. This is in spite of the removal of their Buffelsfontein millstone. Kingsrose Mining (KRM-ASX) is currently in recovery mode after a fatality at their new mine in Indonesia caused its temporary closure. They may bounce back into contention as a top returner by the end of this year. Nord Gold (NORD) is in the process of buying the remaining High River Gold minorities. Elsewhere returns appear to be on an improving trend and it may break into contention Perseus Mining (PRU-ASX/TSX) is an emerging West African gold producer. Production has just started at its Ghanaian gold mine, but this is not passing through into earnings. With some production issues, the share price has been under pressure, while the loss of their long standing Chief Executive Officer has not turned the ship around and more radical restructuring may be required. Primero Mining (PPP-TSX) appeared in our table of top performers mainly due to profits on sales of other assets and positive tax movements, rather than any operational prowess. Recent results have shown a fall back into the also ran category.

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Randgold Resources (RRS) poor recent record of returns on equity continues into Q4 2012. It now has to face political turmoil in Mali. Resolute Mining (RSG-ASX) benefits from low cost and increasing production in Mali and Tanzania and is busy buying back stock for cancellation. However, overall a major boost to returns seems likely only to occur post the expansion of their Syama gold mine in Mali. Political risk in achieving this has of course increased. St Andrew Goldfields (SAS-TSX) produced decent returns in 2011, following the opening of their Holt mine and mill. However recent returns have collapsed following a fall in production in Q1 2012, caused by costlier development work, shaft repairs and lower mill recoveries. A return to past glory cannot be ruled out, but a fall into mediocrity seems to have occurred. Saracen Mineral Holdings (SAR-ASX) recent results have been on a declining trend as prior hedging profits have fallen away. Returns may not improve until 2013, when higher grade material is set to be mined.

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Appendix 1 Company Descriptions


African Barrick Gold (ABG)
Return on Equity
10.0% 9.0% 8.0% 7.0%

African Barrick Gold is 73.9% owned by Barrick Gold (ABX-T/NYSE). In August 2012 Barrick announced it was in talks with China National Gold Corp with regard to its possible sale of this stake. China National Gold indicated that they would extend this bid to the minority holders. African Barrick Gold owns four producing mines in Tanzania, Bulyanhulu, Buzwagi, North Mara, and Tulawaka. The Company is also developing two additional gold projects; Nyanzaga and Golden Ridge.

ROE %

6.0% 5.0% 4.0%

3.0%
2.0%

1.0%
0.0% Jun'11 Dec '11 African Barrick Gold Jun '12

Source:

Company Data

Bulyanhulu is a narrow vein sulphide deposit containing gold, silver and copper. The operation is located in the northwestern Kahama district and has gold reserves of over 10.6 Moz, giving it a 25+ year mine life. The plant is currently processing 3,000 tonnes (t) of ore a day and produced 262,034 oz in 2011, an increase of 1% over 2010. Buzwagi is an open pit operation is also located in the Kahama district. The shearhosted quartz-veined deposit currently has gold reserves of 2.8 Moz, giving it a 12 year mine life. The current processing capacity is 12,000 tonnes of ore a day. Production for 2012 increased 6% from 2011 to 196,540 oz. North Mara, located in the northeast of Tanzania has proven and probable mineral reserves of 3.5 Moz, giving it 10 years of operation. Gold production has dropped 20% from 2011 to 170,832 oz, largely due to mining lower grade ore which also resulted in a 72% increase in cash costs per ounce. Tulawaka, in northwest Tanzania, comprises two ore bodies, with the East Zone being the main exploited deposit, whilst the West is being explored and developed. Total gold production for 2011 was 58,871 oz, a 40% increase over the year, owing to better grades and greater recoveries. The current mine life of the East Zone is expected to last until the end of the year. The Nyanzaga exploration project has indicated resource of 82 million tonnes grading 1.42 grammes per tonne (g/t) gold containing 3.75 Moz of gold at a 0.45 g/t cut-off. The Golden Ridge prospect currently has an indicated resource of 527,000 oz @ 2.94g/t Au; the Company is continuing to drill this prospect with a feasibility study due this year. In August 2012 Barrick Gold announced the possible sale of African Barrick Gold to the Chinese, but after much due diligence the two parties couldnt agree on valuation and African Barrick Gold has resolved to improve its returns.

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Agnico Eagle Mines (AEM-TSX)


Agnico Eagle Mines (AEM) operates three mines in Canada, one in Finland and another in Mexico. The Company is expecting to produce 1,025,000 oz of gold in 2012 and 990,000 oz in 2013. Return on Equity
14.0% 12.0% 10.0%

LaRonde is an underground mine based in northwest Qubec, Canada and has been in operation since 1988. The mine has compliant reserves of 33 Mt grading 4.4 g/t, containing 4.7 Moz of gold, giving it a mine life until 2026. In 2012, AEM hopes to extract 157,500 oz at a cost of $570 per oz (/oz) in 2012. Lapa is AEMs highest grade mine with 2.4 Mt at 6.54g/t containing 501,000 oz of gold in-situ giving the project a life until 2015. The mine is located 11 kilometres (km) east of LaRonde. The Company hopes to produce 100,000 oz of gold in 2012 at a cost of $750/oz.

ROE %

8.0% 6.0% 4.0%

2.0% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Agnico Eagle

Source:

Company Data

Meadowbank is AEMs largest gold producing asset. Located in the wilds of Nunavut, Canada, the project comprises a reserve of 24.5 Mt grading 2.8 g/t and containing 2.2 Moz, giving a life until 2017. The open pit operation is hoping to produce 295,000 oz of gold in 2012, but at high cost of $1,040/oz. Kittila is an open pit and underground mining operation located in northern Finland. The reserves are 35 Mt grading 4.7 g/t containing 5.2 Moz of gold giving it a mine life until 2044 (it opened in 2009). AEM hopes that Kittila will produce 150,000 oz of gold in 2012 at a cost of $650/oz. Pinos Altos is another open pit and underground operation located in northern Mexico. The operation has reserves of 47 Mt grading 2.1g/t of gold and 58.9g/t of silver, containing 3.1 Moz of gold and giving the project a mine life until 2029. The mine is one of the largest in operation and employs almost 1,100 people. AEM expects that Pinos Altos will produce 205,000 oz, with Creston Mascota, a nearby satellite operation producing an additional 31,000 oz.

Alacer Gold (ASR-TSX)


Return on Equity
25.0%

Alacer Gold (ASR) focuses on gold production in Turkey and Australia. In 2011 the Company produced 421,000 oz of gold and is hoping to nearly double that by 2015. The Companys largest operation is the pler mine in Turkey. This mine is 80% owned by Alacer with the remaining 20% owned by Lidya Mining, a subsidiary of Calik Holdings, a Turkish conglomerate. The mine currently consists of an open pit, heap leach operation for the oxide ore that produced 185,000 oz of gold in 2011. A feasibility study is also currently underway to assess the economics of mining their sulphide ore that apparently contains over 2 Moz of gold. The mine currently has reserves of 95 Mt grading 1.4g/t and containing 4.4 Moz of gold. In Kalgoorlie, Australia, the Frogs Leg is a joint venture operation with La Mancha Resources (LMA-TSX) (51%) where Alacer owns the remaining 49%. The underground mine produced 57,000 oz in 2011 (ASRs share) and has reserves of 2.1 Mt grading 5.6 g/t for 385,000 oz of gold. It is not clear what intentions the new Egyptian owners of La Mancha have for Frogs Leg, but presumably Alacer have preemption rights. The Higginsville operation in located south of Kalgoorlie and is solely owned by ASR. The underground and open pit operation produced 146,000 oz of gold in 2011.

20.0%

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Alacer Gold

Source:

Company Data

www.whitman-howard.com

6th Feb 2013

The Major Gold Producers

Current reserves of 7.9 Mt grading 3.5 g/t for 875,000 oz of gold, should give at least another 5 years of production. ASRs smaller producing South Kalgoorlie open pit operation was acquired in 2011 as part of the merger with Avoca Resources. The mine produced 31,000 oz of gold in 2011 and currently has reserves of 542,000 oz as well as 2.8 Moz in measured and indicated resources.

Alamos Gold (AGI-TSX)


Return on Equity
25.0%

Alamos Gold (AGI) currently operates the Mulatos Mine, located in Sonora State, Mexico. The project was acquired by the Company in 2003, with the mine going into production three years later. The open pit heap leach operation produced 153,000 oz in 2011, down 2% from 2010. The Company is aiming to produce 200-220,000 oz this year, with an operating cash cost of $365-$390/oz, which would be in line with the costs they have been experiencing in the past two years. This increase in production will be helped by a gravity mill to process higher grade ore from the Escondida zone which is predicted to add an additional 67,000 oz to the current heap leach operation. The company is looking to develop a second mine at its Agi Dagi/Kirazli gold project in Turkey. A Preliminary Feasibility Study on a US4492.3m ($424.4m up front) project, producing on average 166,000 ozpa for 9 years depends on high gold prices to show superior economics. An after-tax Internal Rate of Return of a mere 1.5% at $1,000/oz gold and $15/oz silver doesnt sound particularly encouraging. Alamos has recently bid US$780m for the Canadian developer Aurizon Mines (ARZTSX) in an all share offer.

20.0%

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Alamos Gold

Source:

Company Data

Allied Nevada Gold (ANV-TSX)


Return on Equity
14.0% 12.0% 10.0%

Allied Nevada Gold (ANV) has gold projects in, as the name suggests, Nevada, USA. The Hycroft mine is an open pit heap leach operation. ANV invested just under $900m to upgrade the processing facilities to increase throughput, but also allow the mining of the sulphide ore. The plan was to have two identical processing lines, each processing 60,000 tonnes per day (tpd) of ore with one concentrating on the oxide, whilst the other processes the sulphide material. At full production capacity of 120,000 tpd, ANV is hoping to produce an average of 556,000 oz of gold a year at a cost of $304/oz (offset by silver credits from 27 Moz/year). Current reserves stand at 12.6 Moz of gold and measured and indicated resources of 8 Moz. The Hasbrouck project is an advanced developed project with inferred resources of 1.2 Moz of gold and 29 Moz of silver. Estimated after-tax and royalty Net Present Value of $98.7m at a 6% discount rate and an after-tax and royalty, Internal Rate of Return of 60% is very attractive. The mine should come into production in 2015 and could produce 135,000 oz of gold and 530,000 oz of silver a year. ANV has other early stage exploration projects in Nevada.

ROE %

8.0% 6.0% 4.0%

2.0% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Allied Nevada Gold

Source:

Company Data

www.whitman-howard.com

10

6th Feb 2013

The Major Gold Producers

AngloGold Ashanti (AGD/ANG-JSE/AU-NYSE/AGG-ASX)


Return on Equity
50.0% 45.0% 40.0% 35.0%

AngloGold Ashanti (ANG) has producing gold assets worldwide. In South Africa, the Company has 4 mines in the Vaal River region: Great Noligwa (94,000 oz per annum (ozpa)), Kopanang (307,000 ozpa), Moab Khotsong (266,000 ozpa), and Surface operations (reprocessing marginal ore, tailings etc. 164,000 ozpa). ANG also operates 3 mines in the West Wits: Mponeng (500,000 ozpa), Suvuka (49,000 ozpa), and TauTona (244,000 ozpa). The South African operations contribute around 37% of ANGs overall production with Mponeng being the largest contributor. In 2011 the 7 mines produced 1.624 Moz of gold at an average cash cost of $694/oz. The Company employs 32,082 people, including contractors, throughout their South African operations, while these operations have reserves of 32.4 Moz and resources of 98 Moz. In Continental Africa, ANG has another 8 mine complexes, employing an additional 16,539 people. In Mali: Morila (99,000 ozpa), Sadiola (121,000 ozpa), and Yatela (29,000 ozpa). In Ghana: Iduapriem (199,000 ozpa) and Obuasi (313,000 ozpa). In Guinea the Siguiri project produces 249,000 ozpa; in Namibia the smaller Navachab operation produces 66,000 ozpa, whilst their largest operation is the Geita Mine in Tanzania that produces 494,000 ozpa of gold. In 2011, aggregate Continental African output of gold increased by 5% to 1.57 Moz; 36% of ANGs total production. Average costs increased by 7% to $765/oz and their Continental Africa assets have reserves of 23.49 Moz and total resources of 66 Moz. In the Americas, ANGs largest mine is AGA Minerao in Brazil that produces 361,000 ozpa; their other, smaller asset in Brazil is the Serra Grande mine which produces 67,000 ozpa. In Argentina the Cerro Vanguardia mine produces 196,000 ozpa and the final project in the Americas is the Cripple Creek & Victor mines located in the United States producing 267,000 ozpa. The Americas assets produced a 6% increase to an aggregate of 891,000 ozpa in 2011, a 21% contribution to ANGs total output. Cash costs increased by 22% to $528/oz. In Western Australia, ANG operates the Sunrise Dam mine, an open pit and underground operation. Production dropped 38% in 2011; this was due to high-wall slips and floods from extreme rainfall that affected production for six months. As a result of this, costs increased by 46% to $1,431/oz. Sunrise Dam contributed 6% to ANGs total production in 2011. The company has endured strike action at its South African mines. This has led to calls for it to spin out these operations in a similar transaction to that proposed by Gold Fields (GFI-JSE). With the departure of its well-regarded Chief Executive Officer to Anglo American (AAL) the search is on for a suitable replacement.

ROE %

30.0% 25.0% 20.0% 15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

AngloGold Ashanti

Source:

Company Data

www.whitman-howard.com

11

6th Feb 2013

The Major Gold Producers

Apex Minerals (AXM-ASX)


Return on Equity
40.0% 35.0% 30.0% 25.0%

Apex Minerals has gold operations at Wiluna in Western Australia, and is focussed on developing a sustainable production of around 17,000 ounces a quarter.

ROE %

20.0%

15.0%
10.0% 5.0% 0.0% Jun'11 Dec '11 Apex Minerals Jun '12

Source:

Company Data

Argonaut Gold (AR-TSX)


Argonaut Golds primary gold assets are the producing El Castillo Mine in Durango, the advanced exploration stage San Antonio project in the State of Baja California Sur, the past producing and advanced exploration stage La Colorada Mine in Sonora, as well as the exploration-stage La Fortuna Project also in Durango and 11 gold exploration projects located in the Sonora Mojave Megashear, all in Mexico. Return on Equity
35.0% 30.0% 25.0%

The total gold resource for Argonaut exceeds 6.2 Moz of M&I resource and 213,000 oz of inferred material. The La Colorada project holds a notable silver resource as well. El Castillo is Argonauts 100% owned open pit, heap leach gold mine located one hour north of the state capital Durango. El Castillo hosts 1.23 Moz of compliant Proven and Probable (P&P) Gold Reserves and 1.7 Moz of Measured and Indicated Resources (including P&P). The mine commenced construction and operations in 2007 with commercial production reported in 2008. El Castillo saw significant growth, with a $15m investment in the infrastructure of the property. The production profile was brought up to a 72,000 ounce run rate by Q4 2010, within just 1 year of acquiring ownership of the company. A $5m investment in drilling at the property increased from the resource from less than 0.6 Moz to the current level of resources remaining. La Colorada originally operated as a high-grade underground mine, which closed at the start of the Mexican Revolution in 1914. During the period 1993-2000 Eldorado Gold Corp developed a bulk tonnage heap leach operation from several open pits; although the operation was sold in late 2000, production continued by a private Mexican owner until April 2002, yet La Colorada was never shut down for the lack of gold. The combined Measured & Indicated resource in the initial estimate for La Colorada project contains 605,000 oz of gold and 5.13 Moz of silver within 19.25 Mt averaging 0.98g/t Au and 8.3g/t Ag. An additional 582,000 oz of gold and 6.19 Moz of silver are contained within the 20.07 Mt inferred resource, averaging 0.90g/t Au and 9.6g/t Ag, at the same 0.3g/t gold cut-off. 2012 guidance is for 75-80,000 oz of gold production at El Castillo and 13-17,000 oz of gold production at La Colorada at cash costs of $625 -$650/oz.

ROE %

20.0% 15.0% 10.0%

5.0% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Argonaut Gold

Source:

Company Data

www.whitman-howard.com

12

6th Feb 2013

The Major Gold Producers

Argonaut has just announced plans to merge with Prodigy gold via an all share deal, which will give prodigy shareholders 22% of the larger group. Prodigy is developing the Magino gold project in Ontario, Canada.

Atna Resources (ATN-TSX)


Atna owns an operating gold mine in Nevada, USA and is re-developing a former open pit gold mine in Nevada. Return on Equity
12.0% 10.0% 8.0%

In May 2009, Atna announced the restart of gold production at the wholly owned Briggs Mine in Inyo County, California, USA. The Company expects to produce approximately 213,000 oz of gold over the life of mine with an annual average full year production rate that ranges from 40,000 to 50,000 oz per year, with residual gold recovery in 2017. In 2004, Atna entered into an agreement to earn a 70% interest in the Pinson property, a formerly producing open pit mine in Nevada, USA. A total of $14m was spent by Atna from 2004 through 2006 to earn its 70% interest. In 2006, Barrick Gold (ABX-NYSE) exercised a claw-back right and subsequently spent $36m to re-earn a 70% interest in the property, with Atna's interest reducing to 30%. In August 2011, Atna acquired Barricks 70% interest in the four square miles of land (2,480 acres) containing all areas of past gold production and the area containing the currently estimated mineral resources. Additionally, Atna and Barrick executed a non-exclusive Ore Milling and Gold Purchase Agreement to process Pinson ores at Barrick's Goldstrike processing facilities in Nevada. Atna's wholly owned, Reward gold mine project is located in south-western Nye County about 5.5 miles south-south-east of Beatty, Nevada. The Reward mine is expected to produce approximately 139,000 oz of gold over a four year mine life at estimated average cash cost of $580/oz of gold produced. Current gold mine development work includes the completion of design engineering, development of contractor bid packages, and initial infrastructure development.

ROE %

6.0% 4.0% 2.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Atna Resources

Source:

Company Data

Aura Minerals (ORA-TSX)


Auras portfolio includes the San Andres Gold Mine in Honduras, the Sao Francisco and Sao Vicente gold mines in Brazil, the copper-gold-silver Aranzazu Project in Mexico and the feasibility Stage copper-gold-iron ore Serrote project in Brazil. Return on Equity
1.4% 1.2% 1.0%

At Aranzazu, 2012 production targeted 13 million to 14 million pounds of copper, 7,500 to 8,500 ounces of gold, and 145,000 to 155,000 ounces of silver.

ROE %

0.8% 0.6% 0.4%

0.2% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Aura Minerals

Source:

Company Data

www.whitman-howard.com

13

6th Feb 2013

The Major Gold Producers

AuRico Gold (AUQ-TSX/NYSE)


Return on Equity
60.0% 50.0% 40.0%

AuRico is a company in transition having just sold its flagship Ocampo mine in Mexico to Carlos Slims Minera Frisco (MFRISCO-BNV) for US$750m of cash. It now has four operating properties, including the El Chanate mine in Sonora State and the El Cubo project in Guanajuato State. AuRico took over Northgate Minerals Corporation, a gold and copper producer with mining operations, development projects and exploration properties in the Americas and Australia, in 2011. Northgate owned and operated the Fosterville and Stawell gold mines in Victoria, Australia, and was building the Young-Davidson gold mine in northern Ontario, Canada, which was targeting a 15-year mine life with average annual production of 180,000 oz of gold commencing in 2012. Fosterville and Stawell were sold in 2012, Acquired in April 2011, El Chanate Mine is located 37 km northeast of Caborca in Sonora State, Mexico. Historical workings suggest the area has been mined for gold since the early 19th century. The current open pit mine has now been developed below the level of those historical small-scale mine workings. The open pit mine plan covers an area approximately 1,700 m long, 780 m wide, and 280 m deep. El Chanate utilises conventional three stage crushing and heap leaching, with gold bearing solutions being processed in an ADR (Adsorption-Desorption-Recovery) plant, followed by electro-winning and refining. Following the Northgate takeover, AuRico retained the Young-Davidson gold mine project. This is located near the town of Matachewan, approximately 60 km west of Kirkland Lake in Northern Ontario. The property consists of contiguous mineral leases and claims totalling 11,000 acres and is situated on the site of two past producing mines that produced 1 Moz in the 1930s1950s. The new Young-Davidson gold mine achieved the first gold pour on April 30, 2012. Currently on schedule, Young-Davidson is expected to reach commercial production in the third quarter of 2012. Initial production will come from an open pit forecast to produce 65-75,000 oz in 2012 and 135-155,000 oz in 2013. The mine is expected to ramp-up to over 250,000 oz of annual production by 2016. With the recent closure of the Ocampo sale the company has said that it will return a significant amount of capital to its shareholders.

ROE %

30.0% 20.0% 10.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

AuRico Gold

Source:

Company Data

Aurizon Mines (ARZ-TSX)


Return on Equity
25.0%

Aurizon Mines has a one producing mine and many exploration projects in Quebec, Canada. The producing Casa Berardi underground mine produced 164,000 oz at an average grade of 8g/t of gold in 2011. The project is located 95 km north of La Sarre. They have recently been bid for by Alamos Gold (AGI-TSX) in a US$780m all share offer.

20.0%

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Aurizon Mines

Source:

Company Data

www.whitman-howard.com

14

6th Feb 2013

The Major Gold Producers

Avocet Mining (AVM)


Return on Equity
25.0%

20.0%

Avocet owns 90% of the Inata gold mine in Burkina Faso. The deposit at Inata currently comprises a Mineral Resource of 3.46 Moz and a Mineral Reserve of 1.85 Moz. Inata poured its first gold in December 2009 and produced 167,000 oz of gold in 2011. Other assets in Burkina Faso include eight exploration permits surrounding the Inata Gold Mine in the broader Blahouro region. The most advanced of these projects is at Souma, some 20 km from Inata, where a Mineral Resource of 0.56 Moz has been estimated.

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Avocet Mining

Source:

Company Data

In Guinea, Avocet owns twelve exploration licenses in the north east of the country. Exploration started in 2005 and the project at Tri-K is the most advanced. Within the Tri-K project, Koulkoun has a Mineral Resource of 1.83 Moz and Kodiran a resource of 0.4 Moz.

B2Gold (BTO-TSX)
Return on Equity
20.0% 18.0% 16.0% 14.0%

ROE %

12.0% 10.0% 8.0% 6.0% 4.0% 2.0%

B2Gold Corp. is a Vancouver based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia, Uruguay and Namibia. B2 Gold has just merged with fellow gold producer and developer CGA Mining, via a share exchange with 62% of the enlarged group to be owned by B2Gold shareholders. B2Gold was founded in 2007 by the former executive and management team of Bema Gold Corporation. Bema grew from a junior explorer to an international gold producer that was acquired by Kinross Gold (K-TSX) through a C$3.5bn transaction in February 2007. In addition to its near term production growth profile, B2Golds corporate objective is to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions. a Libertad Mine is located 178 km east of the Nicaraguan capital of Managua. B2Gold acquired 100% interest in the open pit gold mine in March 2009. La Libertad Mine began operating as a heap leach mine in 1996. Operations were suspended in 2007 after studies showed that gold recovery could be improved from approximately 40% through heap leaching, to over 90% using a conventional milling operation. After investing over $70m in a new Semi-Autogenous Mil (SAG) and ball mill grinding circuit, carbon-in-pulp recovery tanks, and a tailings storage facility, La Libertad Mine is currently ramping up to its full processing capacity of 5,500 tonnes of ore per day. The Limon Mine is located in northwestern Nicaragua approximately 100 km north of Managua and 20 km from the Pan-American Highway. B2Gold holds a 95% interest in the Limon Mine, with the remaining 5% being held by Inversiones Mineras S.A., a holding company representing unionised mine workers in Nicaragua. The Limon Mine concession includes numerous epithermal gold-quartz veins and has been in operation as an underground and open pit gold mine since 1941 and to date has produced approximately 3 Moz of gold. It is projected to produce 48,000-50,000 oz of gold in 2012, an increase from 2011 production of 45,037 oz of gold. Operating cash costs for 2012 are projected at $700-$725/oz. Exploration continues at El Limon with two drill rigs exploring both near surface and underground targets with the goal of increasing the five year mine life and testing higher grade targets.

0.0%
Jun'11 Sep '11 Dec '11 B2 Gold Mar '12 Jun '12 Sept '12

Source:

Company Data

www.whitman-howard.com

15

6th Feb 2013

The Major Gold Producers

B2Gold has an option to acquire a 60% interest in the Trebol, Pavon and San Pedro properties in Nicaragua, as part of its joint venture with Radius Gold (RDU-TSX-V), by spending a total of $4m on exploration on any one, or more of the properties, within 4 years from the date of the agreement. When B2Gold has spent the money, it will own a 60% interest in all of the properties and a joint venture will be formed whereby which each party will contribute its pro-rated share of the exploration costs. The Primavera gold-copper project, part of the Borosi concession option agreement with the Company, whereby the Company may earn up to a 51% interest in specific concessions within the Borosi area by spending C$8.0m by June 2014. Once the earnin is complete, the Company may elect to carry an individual prospect within the concession area through to a Preliminary Feasibility Study for an additional 14% interest in the prospect. To December 31, 2011, the Company has funded approximately $4.5m on exploration. The Company is the operator of the project. Late in 2011, the Company completed the acquisition of a 92% interest in the Otjikoto project in Namibia, by completing a business combination with Auryx Gold by offering B2Gold shares. The Otjikoto gold project is located 300 km north of Namibias capital city of Windhoek. Pit optimisation has resulted in an updated indicated mineral resource of 24.93 Mt at a grade of 1.74 g/t gold containing 1.39 Moz, on a 100% basis, using a cut-off grade of 0.4 g/t gold. When a cut-off grade of 0.5 g/t gold is used, the Otjikoto project has an updated indicated mineral resource of 21.37 Mt at a grade of 1.95g/t gold containing 1.34 Moz on a 100% basis, within the optimised pit shell. B2Gold is conducting an aggressive 2012 exploration, feasibility and development program and is set to spend $43.5m to further drill test the exploration potential of the property, complete a feasibility study in Q4 2012 and concurrently commence planning for mine construction. Based on current projections the Otjikoto gold mine would commence production in late 2014. The Bellavista property is located within the Costa Rican Gold Belt, approximately 70 km northeast of the capital San Jos. The Bellavista Mine was previously operated by Glencairn Gold Corporation as a heap leach operation. Mining operations were suspended by Glencairn in July 2007 due to indications of a potential massive ground movement, which in part were caused by water saturation due to abnormally high rainfall during the preceding several years. Following the suspension of mining operations, Glencairn undertook a program of rinsing the heap leach with fresh water to remove cyanide from the heap, and a monitoring program to evaluate ground movement concerns. In October 2007, a landslide at the Bellavista Mine occurred resulting in damage to the East side of the heap leach pad and the recovery plant. The preventative measures taken by Glencairn apparently averted a potential environmental disaster. Since October 2007 until now, Glencairn and B2Gold have conducted a number of mitigations measures, extensive monitoring programs and site reclamation. Tetra Tech Inc., working directly for the Secretaria Tecnica National Ambiental (SETENA) which is the lead regulatory agency in Costa Rica, recently completed environmental and closure audits which show that the landslide has remained stable since the initial movement in October 2007 and there has been no contamination of surface and groundwater as a result of this incident. The B2Golds reclamation activities continue with the planting of over 1,000 trees on portions of the waste dump area and with work programs focused on controlling runoff from rain storms and keeping water levels from building up in the slide area.

www.whitman-howard.com

16

6th Feb 2013

The Major Gold Producers

B2Gold is investigating various alternatives relating to the Bellavista property, including the potential for reopening the mine on the Bellavista property using different technologies, including a milling and carbon-in-leach process. The Gramalote property is located approximately 230 km northwest of the Colombian capital of Bogota and approximately 80 km northeast of Medellin the regional capital of the Department of Antioquia. The Gramalote property is a 49% 51% B2Gold AngloGold Ashanti (AU-NYSE) joint venture, with AngloGold as the operator. The Mocoa copper (Cu)-molybdenum (Mo) porphyry deposit is located approximately 465 km southwest of the Colombian capital of Bogota and 10 km north of the town of Mocoa, an agricultural centre and the capital of Department of Putumayo. CGA Mining owns and operates Masbate the largest gold producing mine in the Philippines, where the processing plant has a capacity of 4 Mtpa and produced 190,000 oz of gold in 2011.It should produce over 200,000 oz this year. The project has a total measured and indicated resource base of 5.13 Moz, total inferred resources of 2.83 Moz and proven and probable reserves of 3.1 Moz of gold. The Company has recently been producing gold at a cash cost of $750-850/oz. The Company is also aggressively exploring their tenements in near proximity to the mine to further expand their resource. They plan to spend $20m on drilling 100,000 metres. CGA has a 20% interest in Ratel Gold (RTG-TSX) that now holds the Segilola gold and the Mkushi copper projects, previously held by CGA, as well as a 10% interest in Sierra Mining.

Banro Corp (BAA-TSX/NYSE)


Return on Equity
100.0%
90.0%

Banro is a Canadian gold company with production from its first gold project, Twangiza, which is located in the Democratic Republic of the Congo (DRC). Banro is also focused on the development of its second open pit project Namoya and is undertaking exploration on two further fully permitted and licensed projects, Kamituga and Lugushwa. All Banro's current projects lie along the 210 km long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC where has identified 6.74 Moz of measured and indicated resources, plus inferred resources of 4.59 Moz.

80.0%
70.0%

ROE %

60.0%
50.0%

40.0%
30.0% 20.0% 10.0% 0.0% Jun'11 Sep '11 Dec '11 Banro Corp Mar '12 Jun '12 Sept '12

Source:

Company Data

Banro's Twangiza oxide mine began production in October 2011, but has suffered a number of start-up issues such that its projected production of some 120,000 oz of gold during its first full year of operation is unlikely to have been achieved.

www.whitman-howard.com

17

6th Feb 2013

The Major Gold Producers

Barrick Gold (ABX-TSX/NYSE)


Return on Equity
30.0% 25.0% 20.0%

Barrick operates globally, with a portfolio of 26 operating mines and advanced exploration and development projects located on some of the most prolific and prospective mineral trends. Barrick also currently owns 73.9% of African Barrick Gold (ABG), but has indicated that it is set to sell this holding to China National Gold Corp. At the end of 2011, Barricks proven and probable mineral reserves were 139.9 Moz of gold, 1.07 billion ounces of silver contained within gold reserves and 12.7 billion pounds of copper. In 2011, Barrick produced 7.7 Moz of gold at total cash costs of $460/oz, or net cash costs of $339/oz. For 2012, Barrick expects gold production of 7.3-7.8 Moz at total and net cash costs of $520-560/oz and $400-450/oz, respectively. Barrick is targeting growth in gold production to approximately 9 Moz by 2016, driven largely by the Pueblo Viejo and Pascua-Lama projects, which are on track to enter production in mid-2012 and mid-2013, respectively. These two mines are expected to contribute about 1.5 Moz of annual production, provide combined annual average EBITDA of about $2.5bn, and have a positive impact on Barrick's cost structure. The Companys operation in North America consists of Goldstrike, Round Mountain, Bald Mountain, Cortez, Turquoise Ridge, Ruby Hill and Marigold in Nevada and Golden Sunlight in Montana, USA and Hemlo in Canada. The region also includes the Pueblo Viejo joint-venture (60%) project, currently under construction in the Dominican Republic. North America is Barricks largest producing region with production of 3.38 Moz of gold in 2011, or 44% of total production, at total cash costs of $426/oz. This region has 59.0 Moz of proven and probable gold reserves, representing 42% of the Company's total. In 2012, gold production is expected to be 3.425-3.60 Moz at total cash costs of $475-525/oz. Pueblo Viejo is expected to commence operations in the second half of 2012 and contribute approximately 100,000-125,000 oz to Barricks total, at total cash costs of $400-500/oz, as it ramps up to full production in 2013. Beyond 2012, Barrick have identified various opportunities to add production within North America, including the potential expansion of their current Turquoise Ridge underground operation into a large scale open pit to mine low-grade mineralisation; the recent discoveries known as Goldrush in Nevada, together with possibilities for extension at the Cortez Hills Lower Zone and other satellite deposits; the use of thiosulphate technology at Goldstrike to extend the life of the autoclaves; and the expansion of the open pit mine life at Hemlo. Barricks South America region consists of the Pierina and Lagunas Norte gold mines in Peru; the Veladero gold mine in Argentina; the Pascua-Lama project on the Chile and Argentina border; and the Cerro Casale project in Chile. The region hosts 52.8 Moz of gold or 38% of the Companys overall compliant proven and probable gold reserves. In 2011, South America produced 1.9Moz of gold at total cash costs of $358/oz. In 2012, gold production is expected to be in the range of 1.55-1.70 Moz with total cash costs around $430-480/oz. Barrick have identified various opportunities to add production within South America, including extending mining at Lagunas Norte, as a result of incremental sulphide mineralisation, which has the potential to benefit life of mine production and an optimised leach pad solution at Veladero, which would accelerate the processing of inventory.

ROE %

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Barrick Gold

Source:

Company Data

www.whitman-howard.com

18

6th Feb 2013

The Major Gold Producers

Barricks Australia Pacific region is comprised of 8 operating gold mines: the Kalgoorlie (50% interest), Kanowna, Plutonic, and Yilgarn South (Granny Smith, Darlot and Lawlers) gold mines in Western Australia; the Cowal gold mine in New South Wales; and the Porgera (95%) gold mine in Papua New Guinea. At the end of 2011, Barricks Australia Pacific region contained 15.4 Moz of proven and probable gold reserves, representing 11% of the Company's total reserve base. The region produced 1.9 Moz of gold in 2011 at total cash costs of $621/oz. In 2012, gold production in the region is expected to be 1.80-1.95 Moz of gold at total cash costs of $700-$750/oz. The Company has identified various opportunities to add gold production within Australia Pacific, including a potential expansion at Cowal that could extend the mine life by about five years and an expansion at Granny Smith below the current underground mine. Barrick's copper business unit consists of the Zaldvar copper mine in Chile and the recently acquired Lumwana copper mine in Zambia, in addition to one advanced project currently under construction the Jabal Sayid copper mine in Saudi Arabia expected to enter production in the second half of 2012. In 2011, copper production was 451 Mlbs (204,500 tonnes) at total cash costs of $1.75/lb. Copper reserves increased to 12.7 billion pounds, measured and indicated copper resources increased to 15.3 billion pounds and inferred copper resources increased to 19.9 billion pounds.

Besra Gold (Olympus Pacific Minerals) (BEZ-ASX/TSX)


Return on Equity
14.0% 12.0% 10.0%

Besra Gold is the renamed Olympus Pacific Minerals and is focused on South East Asia and is currently the largest gold producer in Vietnam with the Bong Mieu and Phuoc Son gold operations. The Company is also developing the Bau gold field in Malaysia and exploring the Capcapo gold field in the Philippines. The Bong Mieu gold plant processes ore from an open pit and underground operation. The Phuoc Son plant (commissioned in 2011) processes ore from two underground operations. The two operations produced a total of 42,868 oz of gold, a 29% increase from 2010. With the ramp up in production from Phuoc Son, the Company estimates 2012 gold production to increase to 60-70,000 oz.

ROE %

8.0% 6.0% 4.0%

2.0% 0.0%
Jun'11 Sep '11 Dec '11 Besra Gold Mar '12 Jun '12 Sept '12

Source:

Company Data

www.whitman-howard.com

19

6th Feb 2013

The Major Gold Producers

Brigus Gold (BRD-TSX)


Return on Equity
30.0% 25.0% 20.0%

Brigus Gold is an emerging mid-tier gold producer with projects in Ontario and Saskatchewan, Canada. With approximately 1.86 Moz of gold in reserves, increased cash flow, and projects ready for development, Brigus Gold claims to be well positioned for growth. It combines current production with an excellent development pipeline in primarily low-risk operating jurisdictions. The Company's Black Fox Mine located near Timmins, Ontario is currently producing gold and is on track for increased production in the upcoming years - generating steady cash flow for expansion. In 2011, the Company announced a new gold resource 4 km southeast of its Black Fox Mine. This new addition expands the Black Fox Complex resource by more than 50% and provides Brigus with a near term development opportunity. To date, Brigus has systematically explored 25% of the Black Fox Complex, leaving significant upside potential on the property.

ROE %

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Brigus Gold Mar '12 Jun '12 Sept '12

Source:

Company Data

Buenaventura (BVN-NYSE/BUE-LM)
Return on Equity
30.0% 25.0% 20.0%

Buenaventura is a leading mining company that produces precious metals from mining rights in Peru. Since its inception in 1953, Buenaventura has focused on exploration and exploitation activities both on its own and through joint ventures. Buenaventura is among the main gold and silver producers in the world and owns two growing underground gold mines, as well as the world's 4th largest silver mine. It owns a 43.65% stake in Yanacocha, Latin America's largest gold mine, which is amongst the most profitable in the world.

ROE %

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Buenaventura

It is pursuing an aggressive exploration program, helped by it holding of one of the largest land packages in Peru. It has been listed on the Lima Stock Exchange since 1971 and The New York Stock Exchange since 1996.

Source:

Company Data

Centamin Egypt (CEY/CEE-TSX)


Return on Equity
30.0% 25.0% 20.0%

Centamin plc is an Arabian-Nubian Shield focused mineral exploration, development and mining company. Centamins principal asset, the Sukari Gold Mine, began production in 2009 and is the first large scale modern gold mine in Egypt. Their operating experience in Egypt is claimed to give them significant first-mover advantage in acquiring and developing other gold projects in the prospective region and beyond. Centamin achieved robust financial results in 2011 with production of over 202,000 oz, which coupled with a rising realised gold price, delivered strong earnings.

ROE %

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Centamin Egypt

Source:

Company Data

Centamin is aiming to grow production from the Sukari Gold Mine to 500,000 ozpa of gold. They are investing $287m in the Stage 4 Expansion Project, to double the processing plants capacity from 5 Mtpa to 10 Mtpa, with commissioning of Stage 4 due to begin in Q1 2013. Centamin has a large resource and reserve base and through the continued exploration of Sukari Hill and the 160 km2 Sukari tenement area there is significant upside potential. In addition, the Company took their first strategic step into diversifying geographically with the acquisition of Sheba Exploration in Q3 2011,

www.whitman-howard.com

20

6th Feb 2013

The Major Gold Producers

which has interests in 4 exploration licences in Ethiopia. Exploration work will continue on these licences in 2012. Following the Egyptian revolution, Centamins attractive operating agreement has come under pressure and it is evident that eventually Centamin will lose this concession or be forced to pay more for it.

Centerra Gold (CG-TSX)


Return on Equity
30.0% 25.0% 20.0%

Centerra Gold is the largest Western-based gold company in Central Asia with gold production of 642,380 oz in 2011 and proven and probable reserves of 8.1 Moz of contained gold as at end December 2011. Major assets include the Kumtor mine in the Kyrgyz Republic, which produced more than 8.4 Moz of gold between 1997 and the end of 2011, and the Boroo mine in Mongolia, which began commercial production in March 2004 and had produced approximately 1.5 Moz of gold by the end of 2011.

ROE %

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Centerra Gold

Source:

Company Data

Kumtor is the largest foreign-owned gold mine in the former Soviet Union, while Boroo is Mongolia's largest hard rock gold mine. Promising exploration properties include Kumtor, with the high-grade underground, Stockwork and SB Zones, which are open along strike and at depth, multiple targets adjacent to Kumtor, and the Gatsuurt property near Boroo. Since 2008, Centerra has formed promising new exploration joint ventures in Russia, Turkey, Mongolia and China. Centerra has allocated $45m for exploration activities in 2012. In 2012 Centerra has endured a number of operating and political challenges to Kumtor, it presumably could lose the mine or be forced to pay more to the Kyrgyz state going forward.

CGA Mining
As noted, CGA Mining has just merged with B2 Gold.

China Gold International Resources (CGG-TSX/2099.HK)


Return on Equity
10.0% 9.0% 8.0% 7.0%

China Gold International Resources is based in Canada but operates both the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of China. CGG's objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects in China and internationally. China Gold International is uniquely positioned as the only overseas flagship vehicle of China National Gold which is a Chinese state owned enterprise and the largest gold producer in China. CGG has the advantage of leveraging China National Gold's international project pipeline, their relationships with local governments in China, as well as their engineering, operating, and financing capabilities globally.

ROE %

6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

China Gold International

Source:

Company Data

www.whitman-howard.com

21

6th Feb 2013

The Major Gold Producers

Coeur dAlene Mines (CDE-NYSE/CDM-TSX)


Return on Equity
35.0% 30.0% 25.0%

Coeur DAlene Mines (CDM) is primarily a silver player based in the US, but is also a developing gold producer. CDM is hoping to produce 210,000-230,000 oz of gold this year. The Company owns the Rochester (Nevada, USA), Kensington (Alaska, USA), Palmarejo (Mexico), San Bartolom (Bolivia), Martha (Argentina) and Endeavor (Australia) mines. All of CDMs mines produce gold and silver in dor form apart from the Martha Mine in Argentina, which produces a gold and silver concentrate. CDMs assets contain a total of 2.27 Moz in proven and probable reserves, 1.6 Moz in measured and indicated and 926,000 oz of gold in indicated resources.

ROE %

20.0% 15.0% 10.0%

5.0% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Coeur D'Alene Mines

Source:

Company Data

Crocodile Gold (CRK-TSX)


Return on Equity
0.6% 0.5% 0.4%

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and the State of Victoria. In the Northern Territory, Crocodile Gold is currently mining from its flagship property, Cosmo Underground, with production ramping up throughout 2012. Ore is processed at the Union Reefs Mill with a capacity of 2.4 Mtpa. Properties in the Northern Territory contain 3.175 Moz of NI 43-101 compliant measured and indicated resources and 2.14 Moz of inferred resources. These resources are inclusive of mineral reserves.

ROE %

0.3% 0.2% 0.1%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Crocodile Gold

Source:

Company Data

In the State of Victoria, Crocodile Gold is operating two producing mines: Fosterville and Stawell. Each underground mine operates with its own 1 Mtpa production facilities. These properties contain an additional 3.732 Moz of measured and indicated resources and 622,000 oz of inferred. These are exclusive of mineral reserves which total 472,000 ounces. The Company has an extensive exploration program in place in the Northern Territory and is exploring on several key properties on its 3,150 sqkm land package. Crocodile Golds main exploration focus is on the Cosmo property and the Union Reefs and Maud Creek project areas. In the State of Victoria, the Company has exploration programs in place designed to expand the resource base of each mine property.

www.whitman-howard.com

22

6th Feb 2013

The Major Gold Producers

DRD Gold (DRD-JSE)


Return on Equity
40.0% 35.0%

DRD Gold (DRD) is a mid-tier South African gold producer which reprocesses old tailings dams located in Witwatersrand basin just outside Johannesburg in South Africa. It also has a 50% venture in an early stage exploration project on Zimbabwes Greenstone Belt. The Crown project is the worlds largest gold surface tailings retreatment facility; here they reprocess tailings located to the south of Johannesburgs central business district. The plant can process up to 100,000 tonnes per month from current proven and probable reserves of 56 Mt grading 0.4 g/t containing 712,000 oz of gold. Measured and indicated resources stand at 351 Mt grading 0.28 g/t, containing 3.2Moz of gold. Ergo was established in 2007 as a joint venture between DRD and Mintails (MLIASX), primarily to recover and treat 186 Mt of surface tailings contained in the Elsburg Tailings Complex over 12 years. Ergo has a network of surface rights that provide access to a further 600 Mt of surface tailings deposited across the western, central and eastern Witwatersrand. DRD also process the tailings from the ERPM underground mine that was shut in 2008.

30.0%
25.0%

ROE %

20.0% 15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 DRD Gold Mar '12 Jun '12 Sept '12

Source:

Company Data

Dundee Precious Metals (DPM-TSX)


Return on Equity
25.0%

20.0%

DPM is a Canadian-based, international mining company engaged in the acquisition, exploration, development and mining and processing of precious metal properties. DPMs business objectives are to identify, acquire, finance, develop and operate lowcost, long-life mining properties. The Company's principal operating assets include the Chelopech operation, which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Kapan operation, which produces a gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 51.4% owned subsidiary, Avala Resources (AVZ-TSX-V), its 47.7% interest in Dunav Resources (DNV-TSX-V) and its 10.7% interest in Sabina Gold & Silver (SBBTSX).

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Dundee Precious Metals

Source:

Company Data

Dynacor Gold Mines (DNG-TSX)


Return on Equity
100.0% 90.0% 80.0% 70.0%

Dynacor Gold Mines 220 tonnes per day gold ore-processing facility is located in southern Peru. The company purchases gold ore from government approved miners from all over Peru, processes the ore and then sells the gold and silver on the world market. The gold processing low risk business model generates the cash flow necessary for the exploration of its mining properties and pays all the companys administrative expenses. Thus, it claims to avoid diluting its shareholders by repeated financings that characterize junior gold exploration companies.

ROE %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Dynacor Gold Mines

Source:

Company Data

Their Tumipampa advanced exploration property is located in the heart of a fast evolving mining region of Peru and is surrounded by senior mining companies whom are developing large scale skarn/porphyry copper/gold mines. Dynacor has a $5.5m exploration campaign underway on the Tumipampa property which is a multielement rich property hosting three types of mineralisation: a copper and gold skarn

www.whitman-howard.com

23

6th Feb 2013

The Major Gold Producers

deposit more than 4 km long, more than fifteen gold/silver veins with potential for near-term production and a disseminated gold deposit. Dynacor Gold Mines has a strategic reserve of 4,100 hectares of greenfields exploration projects. One project, Casaden, is located in northern Peru and is a gold play located very close (17 km) to the south of the Yanacocha gold mine which is the largest gold mine in South America. The four others are located in southern Peru and include one silver project and 3 gold/copper projects. None of these exploration properties has been explored to date.

Eldorado Gold (EGO-TSX)


Return on Equity
14.0% 12.0% 10.0%

Eldorado Gold operate seven mines: the Kilada (100% owned) and Efemukuru (100%) gold mines in Turkey; the White Mountain (95%), Tanjianshan (TJS; 90%) and Jinfeng (82%) gold mines in China; the Vila Nova iron ore mine (100%) in Brazil, and the Stratoni zinc, lead and silver mine (95%) in Greece. In China they are constructing the Eastern Dragon (95%) gold mine, which is expected to commence production in Q3, 2012. Eldorado became the first North American gold producer to build a gold mine and produce gold in China when TJS began commercial production in 2007. Eldorado Gold is now the largest foreign gold producer in China. The Company is continuing to progress existing late-stage developments in Greece and Brazil. At the Perama Hill (100%) gold project, they submitted the full Environmental Impact Assessment (EIA) at the end of March 2012 and they expect to receive all permits and licenses in Q4 2012. At the Tocantinzinho (100%) gold project in Brazil, completion of the feasibility study is expected in Q3 2012, with the EIA due in early 2013. In February 2012, Eldorado acquired European Goldfields, with projects in Greece and Romania, for $2.5bn. At the end of 2011, Eldorado had 19 Moz of proven and probable gold reserves, out of a 22.89 Moz of measured and indicated gold resources. In addition they carry 8.56 Moz of inferred gold resources. The Company estimates 2012 gold production of 730-775,000 oz of gold at a cash operating cost of $430-450/oz.

ROE %

8.0% 6.0% 4.0%

2.0% 0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Eldorado Gold

Source:

Company Data

Endeavour Mining (EDV-TSX/EVR-ASX)


Return on Equity
12.0% 10.0% 8.0%

Endeavour owns two gold mines producing approximately 200,000 oz per year in Ghana and Burkina Faso, and has just acquired Avion Gold which adds two operating gold mines in Mali. The Tabakoto mine (80% owned) is located is southwestern Mali, close to the Senegal border. Production was restarted in 2009 and in 2011 Tabakoto produced 91,200 oz of gold. Mining in 2012 is from two open pits, as well as the Tabakoto underground mine. Ore is processed through a 2,000 tpd plant that is being expanded to 4,000 tpd and gold is recovered through a standard gravity-CIL process. Development has begun on a second underground mine, Segala, which represents approximately half of mineral resources. Underground drilling continues to convert resources into reserves. In addition, there are numerous opportunities to target additional resources on the Tabakoto property as well as the nearby Kofi project. The Nzema mine (90% owned) is located in south-western Ghana, approximately 280 km west of Ghana's capital city, Accra. Nzema began full scale production in April 2011 and produced 90,026 oz during 2011. The Nzema mine consists of open pit contractor mining from a chain of shallow oxide pits along the Salman trend, plus the Anwia deposit 8 km west of the plant. Ore is processed at the 1.6 Mtpa to 2.1 Mtpa

ROE %

6.0% 4.0% 2.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Endeavour Mining

Source:

Company Data

www.whitman-howard.com

24

6th Feb 2013

The Major Gold Producers

plant (depending on ore type) and gold is recovered through a standard gravity-CIL process. The processing plant is connected to the national power grid. Exploration is currently underway to explore additional oxide resources with the objective of increasing mine life. In addition, the potential of the underlying sulphide mineralisation along the Salman trend is being evaluated through a Preliminary Economic Assessment to be delivered by the end of 2012. The Youga mine (90% owned) is located approximately 180 km southeast of Ouagadougou, the capital city of Burkina Faso. Youga has been in production since 2008 and produced 87,264 oz of gold in 2011. Ore is processed through a conventional gravity-CIL plant with a design capacity of 1.0 Mtpa. Youga is a hard rock, drill and blast open pit operation that employs contractor mining. Grid power is delivered to site from Ghana via a 21 km transmission line. Exploration in 2012 is expected to increase resources and reserves and mine life. In addition, Endeavour is preparing a Preliminary Economic Assessment on the Ouar deposit which is located 40 km to the northeast of Youga to explore the economics of either a standalone operation or trucking the Ouar material to the Youga plant. Avion Gold owns 80% of the Tabakoto and Sgala gold projects in Mali. The current mineral reserve estimate (as of Jan 1, 2012) of 6.91 million tonnes grading 3.73 g/t Au totalling 827,100 oz of gold, for the Tabakoto project property, demonstrates several sources of open pit and good grade underground mineral resource, thus providing significant flexibility for future mining plans. Tabakoto is located is southwestern Mali, close to the Senegal border. Production was restarted in 2009 and in 2011 Tabakoto produced 91,200 oz of gold. Mining in 2012 is from two open pits, as well as the Tabakoto underground mine. Ore is processed through a 2,000 tpd plant that is being expanded to 4,000 tpd and gold is recovered through a standard gravity-CIL process. Development has begun on a second underground mine, Segala, which represents approximately half of mineral resources. Underground drilling continues to convert resources into reserves. In addition, there are numerous opportunities to target additional resources on the Tabakoto property as well as the nearby Kofi project. Additionally, mineral resources have grown considerably at Avions 1,600 km Hounde exploration property in Burkina Faso.

Evolution Mining (EVN-ASX)


Return on Equity
3.5% 3.0% 2.5%

Evolution Mining is a growth focused Australian gold company. It owns and operates four gold and silver mines in Queensland and Western Australia and is developing a fifth gold-silver-copper project in Queensland. The company holds 100% interest in all of its operations. Evolution Mining was created in late 2011 to form a mid-tier Australian gold producer through a merger of Catalpa Resources Ltd and Conquest Mining Ltd and the concurrent acquisition of Newcrest Minings interests in the Cracow and Mt Rawdon mines.

ROE %

2.0% 1.5% 1.0% 0.5% 0.0% Jun'11 Dec '11 Evolution Mining Jun '12

Source:

Company Data

www.whitman-howard.com

25

6th Feb 2013

The Major Gold Producers

Gold Fields (GFI-JSE)


Return on Equity
30.0% 25.0% 20.0% 15.0% 10.0% 5.0%

Gold Fields is one of the worlds largest unhedged producers of gold with attributable annualised production of 3.5 Moz of gold from eight operating mines, in South Africa (KDC, Beatrix and South Deep), Ghana (Tarkwa and Damang), Australia (Agnew and St Ives) and Peru (Cerro Corona). The company has just announced the proposed spin-out of its South African interests with the exception of South Deep forming a new South African listed company Sibanye Gold.

ROE %

0.0%
Jun'11 Sep '11 Dec '11 Gold Fields Mar '12 Jun '12 Sept '12

Source:

Company Data

The South African operations contain a total attributable gold reserve of 580 Mt grading 3.3 g/t containing 61.1 Moz of gold and resources of 1,028 Mt grading 4.8 g/t containing 160.2 Moz of gold. For 2011, KDC produced 1.1 Moz at a total cash cost of $946/oz, Beatrix produced 347,000 oz at a total cash cost of $957/oz and South Deep produced 273,000 oz at a total cash cost of $1,073/oz. In Ghana, the total gold reserves 326 Mt grading 1.3 g/t and containing 13.7 Moz of gold. Resources for the two projects stand at 481 Mt grading 1.6 g/t and containing 25 Moz of gold. In 2011, the Tarkwa mine produced 717,000 oz at a total cash cost of $556/oz, whilst Damang produced 218,000 oz at a total cash cost of $701/oz. In Australia, the Agnew project produced 194,000 oz in 2011 at a total cash cost of $969/oz, whilst the St Ives operation produced 465,000 oz costing $901/oz. The two deposits have total reserve of 45 Mt with an average grade of 2.8 g/t containing 4.1 Moz. The current mineral resource for the two projects totals 87 Mt with an average grade of 3.3 g/t and containing 9.1 Moz of gold. The Peruvian operation consists of the Cerro Corona, a copper operation with gold credits. The current gold reserve stands at 110 Mt grading 0.9 g/t containing just over 3 Moz of gold, the resources amount to 151 Mt grading 0.8 g/t containing around 3.9 Moz of gold. In 2011 the Cerro Corona mine produced 385,000 oz of gold at a total cash cost of $437/oz.

Goldcorp (G-TSX)
Return on Equity
10.0% 9.0% 8.0% 7.0%

Located in one of the worlds most prolific gold districts in Ontario, Canada, Red Lake is Goldcorps top producer, yielding in excess of 650,000 oz annually at low cash costs. The High Grade Zone is the backbone of the underground Red Lake gold mine, with an average grade of more than two ounces of gold per tonne. Recent investments in infrastructure and development have positioned this renowned mine for many more years of long-term sustainable production.

ROE %

6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

0.0%
Jun'11 Sep '11 Dec '11 Goldcorp. Mar '12 Jun '12 Sept '12

The Cochenour project is an important part of Goldcorps future plans in the Red Lake district, providing sustained, high-quality gold production beginning in 2014. Annual gold production is expected to average 250-275,000 oz, over an approximate 20-year mine life at a total cash cost below $350/oz. The Cochenour/Bruce Channel deposit is located down-dip from the historic Cochenour mine. To access the resource, the existing Cochenour shaft is being widened, while at the same time a 5 km underground drift is under construction that will allow efficient ore hauling from Cochenour to the existing processing facilities at Red Lake's Campbell milling operation. The drift also opens up exploration, at depth, of 5 km of untested ground in one of the worlds richest gold districts.

Source:

Company Data

www.whitman-howard.com

26

6th Feb 2013

The Major Gold Producers

The Cochenour-Red Lake haulage drift is advancing at a rate of approximately 18 feet a day, and is over 43% complete. Once in operation, the haulage drift is expected to handle approximately 1,500 tpd of ore. Exploration drilling from the surface has also ramped up. Porcupine, also in Ontario, consists of the Hoyle Pond and Dome underground mines, several large tonnage stockpiles, and a central milling facility. Progress is steadily advancing on a deep underground shaft (winze) that will provide increased access to recently discovered zones. Since achieving its first commercial production in April 1997, Musselwhite mine, also in Ontario, has produced over 3 Moz of gold. The 2010 discovery of the Lynx zone, a zone of higher-grade ore above the cornerstone PQ Deeps underground operation, has created the potential to significantly enhance economics and extend productive mine life. Exploration continues to test other high-potential lateral targets and extension of existing gold structures. Located in Nevada, USA, Marigold is a large open pit mine in Nevada's historic Battle Mountain Trend that has been in production for over two decades. Originally a modest, conventional milling operation, the mine was converted into a large run-ofmine heap leach operation, producing an expected 75,000 oz of gold for Goldcorp in 2012. Along with higher gold prices, recent exploration activities have increased the mines life by an estimated 11 years and transformed several small pits into a single, continuous pit approximately three miles in length. The operation is jointly owned by Goldcorp (66.7%) and Barrick Gold (ABX-NYSE). The Wharf mine, South Dakota, USAs, only operating gold mine is an open pit, heap leach operation. Successful exploration has continued to grow gold reserves and extend the mines life. The property consists of several areas of adjoining gold mineralisation, which have been mined as a series of open pits. Marlin in Guatemala has been in production since late 2005, operating as both an open pit and an underground mine. Open pit operations will cease in 2012 as the final, higher-grade portion of the open pit is mined, and the mine will become an underground operation only. The recent discovery of a new bonanza grade veinthe Delmy vein, which is located near the Marlin deposit and within the existing mining areawill contribute significantly to the mines future production. Underground development is in progress towards this vein. A 37.5% owned project, the Alumbrera mining operation in Argentina is one of the world's largest and lowest cost gold and copper operations. Its gold production is significant, but declining; at 130,000 oz of gold. The operation's ownership structure is 50% Xstrata (XTA) (the operator), 37.5% Goldcorp, and 12.5% Yamana Gold (YAU). Productivity of this mining operation is in decline, and because the existing open pit mine dominates the very limited area in which mineral rights are held, further exploration work will be limited. In 2011, Goldcorp and Xstrata completed an option agreement with Yamana Gold (YAU) whereby the Alumbrera joint venture would have the exclusive option with respect to acquiring Yamana's 100% Interest in the Agua Rica project located 35 km to the southeast. This option agreement represents a low-risk opportunity for Goldcorp to participate in the potential of the Agua Rica project. San Martin in Honduras commenced reclamation and closure activities following the last full year of commercial production in 2007. In 2008, the San Martin mine camp was donated by Goldcorp to the San Martin Foundation. Today, chickens, pigs and cattle are farmed on the 1,500 hectare former mine site by the people of the Valle de Siria.

www.whitman-howard.com

27

6th Feb 2013

The Major Gold Producers

In 2010, the Peasquito mine in Mexico achieved commercial production on schedule and on budget. Over a 22-year life, Peasquito is expected to produce an annual average of 500,000 oz of gold, 28 Moz of silver, 450 Mlbs of zinc and 200 Mlbs of lead. Peasquito will be Mexico's largest open pit mine, consisting of two open pits - Peasco and Chile Colorado - containing gold, silver, lead and zinc. Exploration continues to expand the high-grade manto deposits beneath the Peasquito pit. Assay results have demonstrated significant potential for concurrent, high-grade production from mantos below the current pits, later in the life of the mine. In operation since 2007, Los Filos is currently the largest gold mine in Mexico (although its production is expected to be surpassed by the Peasquito mine in 2012). The Los Filos operation consists of two open pit mines Los Filos and El Bermejo and one underground mine. Current exploration efforts are targeted at the 4P project, located along a ridge in the west part of the Los Filos intrusive. Further drilling is planned at 4P with the aim of developing an open pit mine that will be integrated into the existing operations. The underground mine in operation is a supplementary source of production at Los Filos. Recent exploration is now proving the continuity of the El Bermejo pit to the north and south, and of Los Filos to the south towards the 4P area. Located in Chihuahua State, Mexico, El Sauzal has been a reliable, low cost gold producer and an important foundation for Goldcorp's Mexican operations. Exploration efforts are focused on identifying new gold reserves to extend mine life beyond 2014. A conventional open pit mine and mill operation, El Sauzal has proven and probable reserves of 260,000 oz of gold as of December 31, 2011 and had gold production of 100,500 oz in 2011, with forecast production of approximately 80,000 oz in 2012. Over its life El Sauzal has produced over 1.5 Moz of gold at low cash costs. Trini Pit at El Sauzal is expected to provide more than 218,000 oz of gold in two phases. The environmental permit for the first stage of stripping of the Trini pit was received during the third quarter of 2011. Exploration for potential reserves continues in the surrounding areas. The lonore project in Quebec, Canada is one of the significant projects in the Goldcorp development pipeline. On target for first production in 2014, development is proceeding on schedule. A 2011 pre-feasibility study update for lonore calls for robust, low-cost gold production in the heart of one of the most attractive mining jurisdictions in the world. In conjunction with refinements to earlier technical work, the new development plan details a doubling of the plant throughput to 7,000 tpd, contributing to an average of more than 600,000 oz of gold production per year over an approximate 15-year mine life. The deposit remains open at depth and future exploration success creates the potential for further gold production upside. Life-ofmine cash costs are expected to be below $400/oz. The South Arturo project consists of a series of sediment hosted Carlin-style gold deposits adjacent to and including the former Dee gold mine, 35 km northwest of Elko, Nevada, USA. Goldcorp and Barrick Gold (ABX-NYSE) drilled approximately 65,000 m of mostly infill drilling to improve resource confidence and have initiated scoping level, environmental, engineering and metallurgical studies to provide guidance in the further development of the South Arturo Project as an open pit mine. Exploration drilling continues on other adjacent targets. Pueblo Viejo is located in the Dominican Republic, approximately 100 km northwest of the capital city of Santo Domingo. Goldcorp holds a 40% interest, with the project operator Barrick Gold (ABX-NYSE) owning the remaining interest. Pueblo Viejo is one of the largest gold assets in the world, and is poised to become a world-class

www.whitman-howard.com

28

6th Feb 2013

The Major Gold Producers

operation with a projected mine life of more than 30 years. With proven and probable gold reserves of 25.3 Moz, Goldcorps interest represents 10.1 Moz. During 2012, the project will move into commercial production and become a significant long-term contributor to Goldcorps production growth. By the end of 2011, overall construction was approximately 90% complete, with first production expected mid2012. Estimated production for 2012 is 85,000 oz. The 2010 acquisition of the Cerro Negro Project in Argentina established an important operating base in one of the worlds great gold producing regions. Cerro Negro is an advanced-stage, high-grade vein system located in the Santa Cruz province of Argentina, which contains several high-grade vein structures, including the Mariana Central, Mariana Norte, San Marcos and Eureka. Since acquiring the property gold reserves and resources have nearly doubled, and new discoveries support expectations that Cerro Negro will be a long-lived, high quality asset with low production costs. Cerro Negro's ideal physical setting and easily accessible veins will apparently result in near-term, cash flow-accretive gold production at a relatively small capital investment of $800m. An updated feasibility study in 2011 dramatically expanded the production profile at Cerro Negro. Based on expected throughput of 4,000 tpd, annual gold production in the first five years of full production is now expected to average 550,000 oz at cash costs of less than $200/oz. First gold production is expected in the second half of 2013. Cerro Blanco in Guatemala is a classic hot springs gold deposit with typical bonanzatype gold mineralisation. At the end of 2010, the deposit contained 1.3 Moz of indicated gold resources at an average grade of 15.64 g/t and 0.7 Moz of inferred gold resources at an average grade of 15.31 g/t. At the property, planning and site based preparation is underway to demonstrate key concepts prior to a feasibility study that began in 2011. While initial exploration was geared toward a potential open pit mine, subsequent drilling identified a number of narrow, higher-grade intercepts, and the development scope changed to underground mining with potential synergies to the Marlin property. To determine the ability to mine underground in this geothermal area, two drifts are being mined, from the north and south ends of the deposit (1,315 m in total), later declining into the ore body. Mining of the two declines is paused until the water table has been lowered and ventilation fans are in place. The Guatemalan Ministry of Environment and Natural Resources (MARN) approved the groundwater discharge (as anticipated in the original Environmental Impact Assessment), and water is now pumped directly from underground and processed in a water treatment plant which removes naturally-occurring groundwater constituents prior to discharging. The El Morro project represents Goldcorps re-entry into Chile. They hold 70% and are the projects operator, with the remaining 30% held by New Gold (NGD-TSX). El Morro promises to be a major low-cost gold and copper producer with significant exploration potential, long mine life and strong future cash flow. At December 31, 2010, proven and probable reserves (in situ) totalled 8.4 Moz of gold. In January 2012 the Goldcorp Board of Directors approved the decision to proceed with construction which will commence in September 2012 and extend over a five-year period at a capital cost of $3.9bn. Initial production is expected in 2017 with full production expected in 2018. Over its 17-year mine life, El Morro is expected to produce an average of over 210,000 oz of gold per year to Goldcorp's account. Lifeof-mine cash costs are expected to be approximately $700/oz of gold on a byproduct basis and approximately $550/oz of gold on a co-product basis. Progress has been made in negotiations with potential providers of power, port facilities and pipeline engineering, and desalination plant components are being reviewed. Future

www.whitman-howard.com

29

6th Feb 2013

The Major Gold Producers

exploration efforts will test the potential bulk-mineable gold and copper production below the current pit bottom. The Noche Buena gold/silver project in Mexico, near to Peasquito, is currently in the feasibility phase and a feasibility study is expected mid-2012. Recent studies have apparently confirmed the potential for a profitable operation that would contribute to Peasquitos long-term production. Noche Buena covers approximately 24 km2, adjacent to and contiguous with the northern border of the Peasquito concession block. Measured and indicated resources are nearly 1.0 Moz of gold and 32.4 Moz silver. Exploration continues, with the objective of extending the high-grade gold resources. Noche Buena could come into production as early as 2015. The Camino Rojo gold/silver project, near the Peasquito mine, is in the feasibility study phase and a feasibility study is expected mid-2012. The acquisition of Camino Rojos 3,389 km2 concession in 2010 nearly quadrupled Goldcorps land holdings in the area. The project area includes the Represa deposit, which contains measured and indicated resources of 2.8 Moz gold and 52.6 Moz silver. Total inferred resources are 0.4 Moz of gold and 5.9 Moz of silver.

Gold One International (GDO-JSE/ASX)


Return on Equity
9.0% 8.0% 7.0% 6.0%

Gold One International is a mid-tier mining group with gold operations and gold and uranium prospects across Southern Africa and is majority-owned by a consortium comprising Baiyin Non-Ferrous Group Co. Limited, the China-Africa Development Fund, and Long March Capital Limited. Gold One remains focused on developing and mining low technical risk, high margin precious metal resources. The Companys flagship Modder East gold mine, commissioned in 2009, distinguishes itself from most other gold mines in South Africa owing to its shallow nature (300 to 500 m below surface) and continues to ramp up production, having produced 123,179 oz in 2011. At the beginning of 2012, the group expanded further with the acquisition of Rand Uranium (Pty) Limited consisting of the Cooke underground operations and the Randfontein Surface Operations located in the West Rand, 30 km from Johannesburg. The Cooke underground operations continue to deliver in line with expectations and are currently the subject of a turnaround intervention. Through Gold Ones purchase of Rand Uranium (Pty) Limited, the group has also acquired one of the worlds most advanced uranium projects, which envisages recovering uranium, gold and sulphur from the Cooke Tailings Dam and underground ores. On 2 March 2012 Gold One also announced that it entered into a binding letter agreement with First Uranium Corporation (FIU-TSX/FUM-JSE) to acquire 100% of the Ezulwini Mining Company (Pty) Limited, giving the Company access to a gold plant with nameplate capacity of up to 200,000 tonnes per month and a uranium plant with nameplate capacity of up to 100,000 tonnes per month. Like other South African gold producers production has recently been interrupted by strike action. In addition their prominent Chief Executive Officer has just left to head up the Gold Fields (GFI-TSX) spin out Sibanye Gold.

ROE %

5.0%

4.0%
3.0% 2.0% 1.0% 0.0% Jun'11 Dec '11 Gold One Jun '12

Source:

Company Data

www.whitman-howard.com

30

6th Feb 2013

The Major Gold Producers

Gold Resource Corp (GORO-NYSE)


Return on Equity
200.0% 180.0% 160.0% 140.0%

Gold Resource Corporation is a mining company focused on production and pursuing development of select, high-grade gold and silver projects that feature low operation costs and produce high returns on capital. The Company has 100% interest in six high-grade gold and silver properties in Mexico's southern state of Oaxaca. The Company's flagship property, its El Aguila Project, commenced commercial production in July 2010. The Company began processing ore from its Arista Underground Polymetallic Deposit, in March 2011.

ROE %

120.0% 100.0% 80.0% 60.0% 40.0% 20.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Gold Resource Corp

Gold Resource Corporation offers shareholders the option to convert their monthly cash dividends into physical gold and / or silver and take delivery of their precious metals. The June 2012 dividend declaration marks a major milestone for the Company by bringing the total dividends declared since July 2010 commercial production to $1.01 per common share, exceeding the Companys Initial Public Offering (IPO) on a price per share basis. Gold Resource Corporation went public in September 2006 at $1.00 per common share.

Source:

Company Data

Golden Star Resources (GSC-TSX/GSS-NYSE)


Return on Equity
9.0% 8.0%

7.0%
6.0%

Golden Star is a mid-tier gold mining company over a quarter-century old and total historical production of over 2 Moz of gold. The Company has two operating mines situated along the prolific Ashanti Gold Belt in Ghana, West Africa. Their growth strategy is the result of exploration and expansion activities at both Bogoso/Prestea and Wassa/HBB. The Bogoso/Prestea mining complex consists of several open pit operations along 30 km of the Ashanti Trend feeding both refractory and non-refractory ores to the two processing plants. The oxide plant is a conventional carbon-in-leach (CIL) operation and can process up to 1.5 Mtpa of ore. The 2.7 Mtpa sulphide plant at Bogoso processes an extensive refractory ore inventory and utilises bio-oxidation to oxidise the sulphides, followed by a CIL circuit to extract the gold. The Wassa mine is an open pit operation utilising a conventional CIL processing plant. Ore is sourced from the nearby Wassa pits and the satellite pits at Benso and HwiniButre. Over its 25-plus year history, Golden Star has maintained an aggressive exploration program, with an annual exploration budget of $10-20m. While the majority of exploration activities are proximal to operations in Ghana, they have a property portfolio that includes projects in Sierra Leone, Cte dIvoire, Burkina Faso, and Niger in West Africa and Brazil in South America. Golden Stars goal is to grow its business in Ghana, other selected countries in West Africa through organic growth and accretive acquisitions.

ROE %

5.0% 4.0% 3.0% 2.0% 1.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Golden Star Resources

Source:

Company Data

www.whitman-howard.com

31

6th Feb 2013

The Major Gold Producers

Gryphon Gold (GGN-TSX)


Return on Equity
100.0% 90.0% 80.0% 70.0%

Gryphon Gold is a U.S. based mine development company whose principal asset is the 23.5 square mile Borealis property located in the Walker Lane gold belt of Western Nevada. 1.4 million ounces of measured and indicated gold resources and 1.1 million ounces of inferred gold resources have been accredited to the one-square-mile Central Borealis zone. Previous operators mined and heap leached over 600,000 ounces from this zone during their collective 10-year tenure. There are at least five other highly prospective zones that are currently being explored that have the potential to host significant gold resources.

ROE %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Gryphon Gold

Source:

Company Data

Harmony Gold Mining (HAR-JSE/HMY-NYSE)


Return on Equity
20.0% 18.0% 16.0% 14.0%

ROE %

12.0% 10.0% 8.0% 6.0% 4.0% 2.0%

In FY11, Harmony produced 1.3 Moz of gold, making it one of the worlds largest gold mining companies. The groups operations are located primarily on the Witwatersrand Basin in South Africa, encompassing ten underground operations, an open pit mine and several surface operations which exploit the gold-bearing reefs of the Witwatersrand Basin. The Bambanani mine is located in the Free State Province, near the town of Welkom. It comprises one shaft feeding the Free State One Plant.

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Harmony Gold Mining

The Doornkop mine is located in the province of Gauteng, near the town of Randfontein. The mine is a joint venture with African Vanguard Resources (Pty) Ltd, a Black Economic Empowerment (BEE) partner that owns 26% of the asset. The Evander operations consist of four operating shafts, Evander 2 and 5 (operating as one unit), and Evander 7 and 8. The Joel mine is located in the Free State province, near the town of Theunissen. The mine comprises two shafts and ore is transported to the central plant near Virginia. At the end of May 2012 Pan African Resources (PAF) announced an intention to acquire Evander for ZAR1.5bn (115m). Evander's total underground compliant resource represents 32.5 Moz (147 Mt @ 6.88 g/t) and a reserve of 7.6 Moz (29.5 Mt @ 8.02 g/t). Its operations comprise, an operating shaft in the form of Evander 8 shaft which has an expected life of mine of more than ten years and is expected to produce approximately 100,000 oz of gold per annum; various development projects comprising Evander South, Rolspruit and Poplar; surface resources comprising existing tailings dumps, the processing of which is currently being considered in terms of a project named Project Libra; metallurgical processing facilities known as the Kinross plant which uses a hybrid Carbon-InPulp/Carbon-In-Leach (CIP/CIL) process. Harmonys Kalgold mine is an open pit operation located near the town of Mafikeng in North West Province. A CIL plant is located on site. The mine was acquired by Harmony in July 1999. Kusasalethu mine straddles both Gauteng and North West Province, and is located near the town of Carletonville. The mine was acquired by Harmony in January 2001.

Source:

Company Data

www.whitman-howard.com

32

6th Feb 2013

The Major Gold Producers

The Masimong mine is located in the Free State province, near the town of Riebeeckstad. The mine comprises No 5 shaft, which is the operating shaft, and No 4 shaft, which was closed, but is still used for ventilation purposes and as a second escape route. The Phakisa mine is located in the Free State province, near the town of Odendaalsrus. The mine was brought into production in FY08 and comprises a single shaft system extending to a depth of 2,427 m below surface. Phoenix is a tailings retreatment operation, located at and adjacent to Harmonys current and historical mining operations in the Free State province. Located 20 km north of Welkom, Target mine consists of a single surface shaft system with a sub-shaft and a decline. In the second half of FY10, a Pamodzi asset (Loraine 3) was incorporated into this operation and renamed Target 3 shaft. Ore is processed at the Target plant adjacent to 1 shaft. Both mechanised (86%) and conventional (14%) mining occur on the geologically complex Elsburg and Dreyerskraal reefs, with mining operations extending to a depth of some 2,350 m. The Tshepong mine is located in the Free State province, near the town of Odendaalsrus. The mine comprises a vertical shaft transporting ore to Free State 1 Plant. The Virginia operations comprise the Harmony 2, Merriespruit 1 and 3, Unisel and Brand shafts. They are located in the Free State province, near the town of Virginia. Harmonies also has a 50% interest in the Morobe Mining Joint Venture (MMJV) which includes Hidden Valley, an open pit gold and silver mine, the Wafi-Golpu project and extensive exploration tenements in Papua New Guinea (PNG). Hidden Valley mine, part of the 50:50 joint venture between Harmony and Newcrest (NCM-ASX), is in a highly prospective area of Morobe Province PNG, some 300 km northwest of Port Moresby. Hidden Valley, with its significant gold and silver reserves, is Harmonys first offshore greenfields project, and is an important step in the Companys strategy for geographical and asset diversification. Hidden Valley has two open pits in production, some 5 km apart: the Hamata pit exploits the Hamata gold orebody, and the larger Hidden Valley pit exploits the Hidden Valley and Kaveroi gold and silver orebodies. The joint venture is actively exploring on the mining lease and if additional resources are identified, the life of the operation could be extended, while potential plant expansion studies are being reviewed. Like other South African gold producers Harmony has suffered from strike action this autumn.

High River Gold (HRG-TSX)


High River is just about to be taken over by Nord Gold (NORD).

www.whitman-howard.com

33

6th Feb 2013

The Major Gold Producers

Highland Gold (HGM)


Return on Equity
30.0% 25.0% 20.0%

ROE %

Highland Gold has two operating gold mines in Russia. The producing Mnogovershinnoye (MNV) mine is located in the Khabarovsk region and the Novoshirokinskoye (Novo) mine located in the Chita region. Highland Gold is also developing the Taseevskoye mine, a brownfield deposit also located in the Chita region. MNVs JORC compliant reserves stand at 4.1 Mt grading 4.65 g/t contained 633,000 oz of gold. The mine also has 6.1 Mt grading 4.5 g/t containing 887,000 oz of gold in measured and indicated resources. The Novo mine contains JORC proven and probable reserves (from 2008) of 7.8 Mt grading 7.4 g/t and containing 1.88 Moz of gold. The JORC measured and indicated resource base stands at 8.1 Mt grading 8.5 g/t and containing 2.1 Moz of gold. Highland Gold also has the Unkurtash exploration project in Kyrgyzstan and has recently disclosed that the total JORC compliant resource base has increased by 1.1 Moz, to a total of 3 Moz of contained gold. The Company recently acquired the Klen gold deposit in Chukotka, northeast Russia, for which it paid US$69m in cash. The deposit will be mined open pit using gravity and cyanide processing. Around 36,000m of drilling and a further 13,000m of trenching have given the deposit a Russian C1+C2 (inferred and indicated) resource estimate of 18.6 tonnes or around 590,000 oz of gold.

15.0% 10.0% 5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Highland Gold

Source:

Company Data

IAMGOLD (IAG-TSX)
Return on Equity
70.0% 60.0% 50.0%

IAMGOLD is a leading mid-tier gold mining company producing approximately 1 Moz annually from five gold mines (including current joint ventures). Rosebel is located in Suriname, Essakane is in Burkina Faso, Sadiola and Yatela are in Mali and Doyon is located in Qubec, Canada. The Company also operates Niobec, also in Qubec, the worlds second largest producer of niobium, which it produces to the tune of more than 4.5 million kilograms per annum and owns a rare earth element resource close to its niobium mine.

ROE %

40.0% 30.0% 20.0%

10.0% 0.0%
Jun'11 Sep '11 Dec '11 IAMGOLD Mar '12 Jun '12 Sept '12

IAMGOLD has just acquired Trelawney Mining for around C$600m thus gaining access to the Cote Lake gold project in Ontario, Canada.

Source:

Company Data

www.whitman-howard.com

34

6th Feb 2013

The Major Gold Producers

Jaguar Mining (JAG-TSX)


Return on Equity
25.0%

Jaguar's gold operations, Turmalina, Pacincia and Caet, are located in the Iron Quadrangle region, a prolific greenstone belt near the city of Belo Horizonte in the state of Minas Gerais, Brazil. Belo Horizonte serves as the commercial centre for Brazil's mining industry and has excellent infrastructure to support world-class mining operations. Jaguar controls 38,220 hectares of mineral concessions in the Iron Quadrangle. Significant planned expansion includes the Gurupi Project, an open pit gold mining operation in the state of Maranho in Northern Brazil, where Jaguar controls 166,513 hectares. Jaguar is also engaged in gold exploration at a greenfield site in the state of Cear covering 35,363 hectares.

20.0%

ROE %

15.0%

10.0%

5.0%

0.0%
Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Jaguar Mining

Source:

Company Data

Kingsgate Consolidated (KCN-ASX)


Return on Equity
12.0%
10.0% 8.0%

The Company owns and operates the low cost Chatree gold mine in central Thailand, the Challenger underground gold mine in South Australia and following the November 2011 acquisition of Laguna Resources NL, is undertaking a feasibility study on the advanced Arqueros silver/gold project in the highly prospective Maricunga Gold Belt in Central Chile. A strong commitment to near mine exploration is growing the reserve/resource position and supporting a major expansion of operations in Thailand to a rate of 200,000 ozpa. At Challenger, a renewed focus on the exploration potential close to the surface is claimed to be delivering results. Over the next three years Kingsgate's gold production is forecast to grow to over 400,000 ozpa. The company is also advancing its Bowdens silver exploration project in New South Wales Australia.

ROE %

6.0%

4.0%
2.0% 0.0% Jun'11 Dec '11 Kingsgate Consolidated Jun '12

Source:

Company Data

www.whitman-howard.com

35

6th Feb 2013

The Major Gold Producers

Kingsrose Mining (KRM-ASX)


Return on Equity
40.0%
35.0% 30.0% 25.0%

Kingsrose Mining is a specialist high grade, narrow vein underground gold miner with an operating gold mine and a developing gold mine on the Island of Sumatra in Indonesia. In January 2009, Kingsrose shareholders approved the acquisition of 85% of the advanced Way Linggo high grade, underground gold/silver mining project, located in Lampung Province, Southern Sumatra, Indonesia. The Way Linggo Project comprises the development of an underground mine to exploit, initially, a high-grade epithermal quartz vein, known as the "North Vein". The Project is at an advanced development stage and is located in a highly prospective epithermal geological setting. Various other highly prospective targets have been identified and will form the basis of an extensive exploration program, both near mine and regionally. The Project is undertaken by the 85% subsidiary of the Company, PT Natarang Mining, pursuant to a 4th generation Contract of Work agreement with the Indonesian government. At Talang Santo 7 km to the north a new gold mine is being developed, with ore to be processed at Wey Linggo. Owing to a recent fatality, development at Talang Santo has been temporally suspended. This has led to reduced group gold production as increased Talang Santo production was planned to offset declining Wey Linggo production.

ROE %

20.0% 15.0%

10.0%
5.0% 0.0% Jun'11 Dec '11 Kingsrose Mining Jun '12

Source:

Company Data

Kinross Gold Corp (K-TSX)


Return on Equity
8.0% 7.0%

Kinross is a Canadian-based gold mining company with operations in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and the United States. Kinross acquired a 100% interest in the Fort Knox open pit mine in Alaska in 1998. The mine is located within the Fairbanks mining district, a northeast trending belt of lode and placer gold deposits that comprise one of the largest gold producing areas in the state of Alaska. Access to the Fort Knox mine, from the nearby city of Fairbanks, is by 34 km of paved highway, followed by 8 km of unpaved road. The area has a sub-Arctic climate with long cold winters and short summers

6.0%
5.0%

ROE %

4.0% 3.0% 2.0% 1.0% 0.0%

Jun'11

Sep '11

Dec '11 Kinross

Mar '12

Jun '12

Sept '12

Source:

Company Data

The deposit at Fort Knox is mined by conventional open pit methods. Mining is carried out on a year-round basis, seven days a week and high-grade ore is processed at the carbon-in-pulp mill, which has a daily capacity of between 33,000 and 45,000 tonnes. Fort Knox mines and stockpiles large volumes of low grade ore and mineralised waste material that cannot be economically processed at the existing mill. The new heap leach facility allows the mine to process some of these low-grade materials, as well as zones of lower-grade ore that have not yet been mined. Production from the heap leach began in late 2009. The 100% Kinross owned Kettle River-Buckhorn properties are located in the State of Washington, USA. The properties cover approximately 3,075 hectares. Kinross acquired Kettle River through its acquisition of Echo Bay in January 2003. At the time, the mine was undergoing care and maintenance. Kinross resumed operations on the Emanuel Creek deposit in December 2003, which was completed in November 2005. In August 2006, Kinross acquired the Buckhorn gold deposit, located approximately 76 km by road from Kinross' Kettle River gold milling facility. Originally conceived as

www.whitman-howard.com

36

6th Feb 2013

The Major Gold Producers

an open pit mine, Buckhorn was redesigned and developed as an underground mine, and the Kettle River Mill was refurbished to process the ore. The primary mining method employed is cut and fill, with a target production rate of 900 tpd. Buckhorn mine ore is trucked 75 km to the Kettle River Mill, which has a 1,800 tpd capacity. Kinross acquired its 50% ownership interest in the Round Mountain gold mine and became the operator on 31 January 2003, upon completion of the merger with Echo Bay. Barrick Gold (ABX-NYSE) owns the remaining 50% interest in the joint venture, known as the Smoky Valley Common Operation. Round Mountain is an open pit mining operation located in Nye County, Nevada. Gold production in the Round Mountain district dates back to 1906. A hundred years later, Round Mountain mine reached the significant milestone of 10 Moz poured, achieved over a 20-year period. Round Mountain uses conventional open pit mining methods and recovers gold using four independent processing operations. These include crushed ore leaching (reusable pad), run-off mine ore leaching (dedicated pad), milling and the gravity concentration circuit. Most of the ore is heap leached, with higher grade oxidised ores crushed and placed on the reusable pad. Lower grade ore, ore removed from the reusable leach pad, and stockpiled ore that was previously leached, are placed on the dedicated pad. The Paracatu mine in Brazil is a large scale open pit operation located near the city of Paracatu, and approximately 230 km from the capital Braslia. Kinross first acquired an ownership interest in the Paracatu mine upon completion of the merger with TVX on 31 January 2003. On 31 December 2004, Kinross purchased the remaining 51% from Rio Tinto (RIO). In 2006, Kinross began an expansion of the mill facilities, which is expected to triple throughput to 61 Mtpa. Production of gold from the expansion plant began in September 2008. The expansion is expected to extend the life of the mining operation to 2042. Kinross acquired its 50% ownership interest in the Crixs underground mine in Brazil upon completion of the merger with TVX in January 2003. AngloGold Ashanti (AGD/ANG-JSE/AU-NYSE)/AGG-ASX) is the other 50% owner and operator. The mine itself is located in the State of Goias, approximately 260 km northwest of Brasilia. The Crixs mine consists of two operating underground gold mines accessed by decline, Mina III and Mina Nova; three orebodies that have been accessed by underground development, Corpo SUL, Corpo IV, and Corpo V; and two orebodies under evaluation, Forquilha and Palmeiras. The mining methods used are primarily mechanised cut-and-fill and room-and-pillar and ore is transported to surface by 25 tonne trucks. The operation runs 24/7. Mining started in 1987 with ore being stockpiled on the surface. Development was largely completed by the end of 1989, enabling successful testing of the metallurgical circuit to take place through the fourth quarter of 1989. Initial dor bullion, associated with this testing, was poured on November 1989 with maiden gold sales occurring in January 1990. The Maricunga open pit mine is located in the Maricunga mining district in centraleast Chile. The property is approximately 120 km east of Copiap and is 4,2004,500m above sea level. Kinross acquired its original 50% interest and became operator of the mine in June 1998, through the Kinam merger. In February 2007, Kinross acquired the remaining 50% through the acquisition of Bema Gold Corporation. Commercial production began in October 1996. Five years later, mining activities were suspended and the operation was placed on care and maintenance due to low gold prices. In late 2002, a multi-phase exploration program commenced and in 2003 it was determined that the mine would be recommissioned. The mine went into commercial production in the fourth quarter of 2005 and achieved its average targeted production rate of 40,000 tpd in November 2005. The Maricunga mine is a three-stage crushing and heap leach operation with a capacity of 11 Mtpa.

www.whitman-howard.com

37

6th Feb 2013

The Major Gold Producers

The La Coipa open pit mine is located in the Atacama Region of northern Chile, approximately 1,000 km north of Santiago and 140 km northwest of the community of Copiap. Kinross acquired ownership interest in La Coipa upon completion of the combination with TVX in January 2003. In December 2007, Kinross purchased the remaining 50% from Goldcorp (G-TSX) and became the operator. The overall operation consists of six deposits known as Ladera-Farellon, Coipa Norte, Brecha Norte, Can-Can, Chimberos and Puren. The La Coipa mine currently operates four open pits (Ladera Ferellon, Coipa Norte, Brecha Norte and Puren). Kinross acquired a 75% interest in the Kupol project in Russia in February 2007, through the acquisition of Bema Gold. In April 2011, Kinross acquired the 25% of Kupol it did not already own through its subsidiary, Chukotka Mining and Geological Company, giving Kinross 100% ownership of the Kupol mine. The Kupol deposit is located in the Chukotka Autonomous Okrug of the Far East Region of the Russian Federation. The total distance between the Kupol property and Bilibino, the nearest major city, is approximately 200 km. The Kupol mine consists of a high-grade gold and silver vein, which remains open along strike. Development and construction of the project began in 2005. In May 2008, Kinross announced that the mill had begun processing ore and that the Kupol mine had produced its first ounce of gold-silver dor. In early 2011, Kupol produced its 2 millionth ounce of gold. Kupol has also produced over 20 Moz of silver since the beginning of its operations. Kinross acquired its 100% interest in the Tasiast gold mine in September 2010, upon completing its acquisition of Red Back Mining. The Tasiast mine is an open pit operation located in northwestern Mauritania and is approximately 300 km north of the capital Nouakchott. The Tasiast expansion project is Kinross' top development priority and is the cornerstone asset in the Company's long-term growth strategy. Tasiast is located within an extensive gold system that is largely underexplored. The deposit is open along strike and at depth. Gold mineralisation occurs in two parallel trends: the Piment Zone, which is continuous over a 4.5 km strike length, and the Greenschist Zone (West Branch), with a strike length of approximately 1.5 km. Kinross will focus its 2012 exploration efforts at Tasiast along the mine corridor, and testing high-quality geological, geochemical and geophysical targets throughout the 80 km greenstone belt. Kinross is currently analysing process options for the Tasiast expansion, including milling, heap leaching and different combinations of both, and is expected to make a preliminary selection of a processing option at the end of the second quarter of 2012. The Company is targeting to commence construction of the new production facilities in mid-2013, and to ramp up production in 2015. The construction period and start dates are expected to be confirmed following completion of the project feasibility study, expected in the first half of 2013. Tasiast began commercial operations in 2008. Current mining operations consist of conventional open pit mining methods. High grade ore processing is based on three stage crushing, ball milling, and a carbon-in-leach circuit. Lower grade oxide ore is processed in a run-ofmine heap leach facility. In 2011, Kinross completed the construction of the West Branch dump leach and ADR (Adsorption, Desorption and Refining) facilities, the initial phase of the project expansion at Tasiast. Kinross also acquired the Chirano mine from Red Back Mining in September 2011. Chirano is located in southwestern Ghana, approximately 100 km southwest of Kumasi, Ghana's second largest city. Chirano achieved its first gold pour in October 2005, and consists of 11 deposits: Akwaaba, Suraw, Akoti South, Akoti North, Akoti Extended, Paboase, Tano, Obra South, Obra, Sariehu and Mamnao. The mine is within the Bibiani gold belt and the mining plan at the time of Kinross' acquisition of Red Back calls for the exploitation of 11 gold deposits spread along a strike length of

www.whitman-howard.com

38

6th Feb 2013

The Major Gold Producers

approximately 10 km by both open pit and underground mining methods. Ore production at Paboase, an underground deposit for which an inaugural probable reserve of 920,000 oz was released in July 2010, commenced in late 2011. Open pit and underground ore are processed at the Chirano plant. The capacity of the mill is approximately 3.5 Mtpa. Processing involves crushing, ball mill grinding, leaching, and CIL. Gold is recovered by an elution circuit which removes gold from activated carbon.

Lake Shore Gold (LSG-TSX/NYSE)


Return on Equity
100.0% 90.0% 80.0% 70.0%

Lake Shore Gold Corp is a gold mining company that is positioned for rapid production growth at low operating costs. The Company has four wholly owned, multi-million ounce gold deposits and two operating mines in the century-old Timmins Gold Camp. At their Timmins West Mine gold production is expected to increase sharply over the next year and reach over 150,000 ounces by 2014, with cash costs around US$600 per ounce. The Company is also recording limited production at the Bell Creek Mine while it continues to evaluate the high-potential North A Deep Zone, where a high percentage of the current 0.6 Moz of measured and indicated resources and approximately 1.0 Moz of inferred resources, are located. Material from the Companys two mines is delivered to its wholly owned milling facility at the Bell Creek Complex, where a 50% expansion to a capacity of 3,000 tonnes per day, is progressing towards completion in 2013.

ROE %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Lake Shore Gold

Source:

Company Data

Luna Gold (LGC-TSX/BVL)


Return on Equity
60.0% 50.0% 40.0%

Luna Gold Corp. is in the business of exploring, operating and developing gold resource properties in Brazil. Luna Gold is focused on expanding production towards 100,000 ounces per annum from their Aurizona gold mine. Additionally, the Company is actively exploring for new gold resources at its wholly owned Luna Greenfields area. Luna Gold Corp. completed a 44,000 metre drill program in December 2011 which significantly increased the size of the Aurizona gold resource estimate. Measured and indicated gold resources now total 78.0 Mt at 1.26 g/t gold, or 3.17 Moz of gold, an increase of 250% from the previous mineral resource estimate published in January 2009. Inferred gold resources now total 15.2 Mt at 1.47 g/t for 0.72 Moz gold, an increase of 79% on the January 2009 mineral resource estimate.

ROE %

30.0% 20.0% 10.0% 0.0%

Jun'11

Sep '11

Dec '11 Luna Gold

Mar '12

Jun '12

Sept '12

Source:

Company Data

www.whitman-howard.com

39

6th Feb 2013

The Major Gold Producers

Mandalay Resources (MND-TSX)


Return on Equity
80.0% 70.0%

60.0%
50.0%

40.0% 30.0% 20.0% 10.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Mandalay Resources

Mandalay, through the subsidiary AGD, owns 100% and operates the Costerfield gold-antimony mine in Victoria, Australia, having purchased it on December 1, 2009, from Western Coal. The Company restarted capital development and mining immediately, ramping through year-end 2010 to the planned production rate of >5000 tonnes per month. In 2010 and again in 2011, the Company generated new reserves deeper on the Augusta E and W lodes currently being mined, to approximately replace depleted reserves. In 2011, the Cuffley lode was discovered and by the end of the year, an initial high-grade inferred resource was established that forms the basis for a Preliminary Economic Analysis slated for completion in mid-2013. Costerfield offers current gold and antimony production, the potential for significant near-term production expansion and mine life extension in the Cuffley lode, and exposure to discovery potential for new veins in the district. Compaia Minera Cerro Bayo (Cerro Bayo or CMCB) owns and operates multiple underground silver/gold mines in the Cerro Bayo district, Region XI, Chile. The mines feed a single conventional floatation plant. Ag-Au concentrate from the plant is sold to smelters in Asia and North America. Mandalay Resources Corp. purchased 100% of CMCB, which was on care and maintenance at the time, in August, 2010. CMCB restarted mining in September, 2010, recommenced processing in January, 2011, and shipped its first gold-silver concentrate in February, 2011. The mine reopened with about three years of mine life but, by the end of 2011, exploration had doubled reserves to support a six-year mine life. Ramp-up to the currently planned 1,200 tpd ore processing rate is anticipated to be completed by the fourth quarter of 2012, with a feasibility study and decision for expansion to approximately 1,600 tpd to be delivered by year-end 2012.

Source:

ROE %

Company Data

McEwan Mining (MUX-TSX/NYSE)


Return on Equity
100.0% 90.0% 80.0% 70.0%

ROE %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

Formed following the merger with Minera Andes, whose shareholders received 0.45 of an exchangeable share of McEwen Mining Minera Andes Acquisition Corp (MAQ-TSX) for each Minera Andes share held. These exchangeable shares of McEwen Mining - Minera Andes Acquisition Corp are convertible on a one-for-one basis at any time into shares of McEwen Mining. McEwen Mining will have an aggregate of 267,084,203 shares of common stock outstanding and issuable upon the exchange of exchangeable shares. The new McEwan Mining has a 49% interest in Minera Santa Cruz, owner of the San Jos silver-gold mine that is located near Goldcorp's (G-TSX) Cerro Negro project in Argentina; and 100% of Phase I of the El Gallo complex in Sinaloa, Mexico. The company also a has a number of development projects: Phase II of the El Gallo complex in Sinaloa, Mexico; The Gold Bar project in Nevada; as well as the Los Azules copper deposit in San Juan, Argentina. They also have a large portfolio of exploration properties in Santa Cruz province Argentina, surrounding the San Jos mine and Goldcorp's Cerro Negro project in addition to significant land packages in Nevada adjoining Barrick's (ABX-TSX) Cortez mine and surrounding their El Gallo complex in Mexico.

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

McEwen Mining

Source:

Company Data

www.whitman-howard.com

40

6th Feb 2013

The Major Gold Producers

Medusa Mining (MML/MML-ASX)


Return on Equity
50.0%
45.0%

Medusa's corporate strategy is to become a mid-tier, 400,000 ozpa, low-cost gold producer focused solely on the Philippines. The Company has completed the two-phase expansion of its high grade underground Co-O Mine to a production level of 100,000 annualised ounces. The Company has approved a Phase 3 expansion to build an expanded mill with capacity for 200,000 ozpa of production. Current drilling is verifying and expanding the Bananghilig deposit with the aim of defining 1 Moz of compliant reserves to initiate feasibility studies.

40.0%
35.0%

ROE %

30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jun'11 Dec '11 Medusa Mining Jun '12

Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800 km.

Source:

Company Data

Nevsun Resources (NSU-TSX)


Return on Equity
60.0% 50.0% 40.0%

Nevsun Resources is a growing high grade, low cost gold producer focused on its Bisha Mine in Eritrea, East Africa. Bisha is a large precious and base metal volcanogenic massive sulphide deposit that went into commercial gold-silver production in February 2011. The Bisha Mine, with 12+ years of current reserves, ranks as one of the highest grade open pit mines in the world. After a successful 2011, producing 379,000 oz of gold, the copper expansion is under construction. In 2013, the Company hopes that Bisha will transition into low cost copper, gold, and silver producer.

ROE %

30.0% 20.0% 10.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Nevsun Resources

Source:

Company Data

Bisha has received continuous support from the Eritrean government, who purchased a 30% interest, in addition to a legislated 10% free carried interest. The Bisha Project was equity financed, with no debt or hedge, which leaves Nevsun with full exposure to current high metal prices.

New Dawn Mining (ND-TSX)


Return on Equity
30.0% 25.0% 20.0%

New Dawn is a Zimbabwe-focused junior gold company that is currently focused on expanding its gold mining operations in Zimbabwe. New Dawn owns 100% of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine. In addition, New Dawn owns approximately 85% of the Dalny Mine, the Golden Quarry Mine and the Venice Mine (currently not in operation) and a portfolio of prospective exploration acreage in Zimbabwe. These six mines, five of which are currently operational, are divided into three significant gold camps, and have a combined milling capacity of 2,000 tonnes per day.

ROE %

15.0% 10.0% 5.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

New Dawn Mining

Source:

Company Data

In addition to gold production, New Dawn is also actively exploring on highly prospective ground employing modern exploration techniques and deploying capital in Zimbabwe, a country that is proven to be geologically rich, highly prospective, and significantly under explored.

www.whitman-howard.com

41

6th Feb 2013

The Major Gold Producers

New Gold (NGD-TSX)


Return on Equity
16.0% 14.0%

New Gold is an intermediate gold mining company with a portfolio of four producing assets and two significant development projects. New Golds New Afton project in British Colombia, Canada, met its targeted June 2012 production start and began commercial production in August 2012. Together with the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia, the Company is forecasting 405,000445,000 oz of gold production in 2012. In addition, New Gold owns 30% of the worldclass El Morro project located in Chile and 100% of the exciting Blackwater project in Canada.

12.0%
10.0%

ROE %

8.0% 6.0% 4.0% 2.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

New Gold Inc.

Source:

Company Data

Newcrest Mining (NCM-TSX)


Return on Equity
10.0%
9.0%

Newcrest is Australia's largest gold producer and one of the world's top 5 gold mining companies by production, reserves and market capitalisation. Newcrest has a portfolio of predominantly low cost, long life operating mines, a strong pipeline of growth projects and highly prospective brown and greenfield exploration projects. The Company has a substantial reserve and resource base, with current gold reserves representing more than 25 years of future production. As at end December 2011, it had compliant gold reserves of 79.1 Moz and copper reserves of 8.46 Mt and gold resources of 149.7 Moz and copper resources of 20 Mt.

8.0%
7.0%

ROE %

6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Jun'11 Dec '11 Newcrest Mining Jun '12

Source:

Company Data

Newcrest has interests in six production provinces in four countries using a variety of low cost bulk mining methods for large orebodies, together with selective underground mining methods to optimise high-grade epithermal deposits. Current operations include: Cadia Valley Operations, comprising Cadia Hill and Ridgeway (near Orange, New South Wales, Australia), Telfer (Pilbara Region, Western Australia), Gosowong (Indonesia), Lihir (Papua New Guinea (PNG)), Hidden Valley (PNG) and Bonikro (in the Ivory Coast, West Africa). The Company is currently evaluating three major prospects with significant metal endowments, namely Wafi-Golpu in PNG, Namosi in Fiji and O'Callaghans in Western Australia. In addition, Newcrest is currently exploring for gold and gold-copper deposits in Australia, Indonesia, PNG, Fiji and the Ivory Coast. Discovery of new orebodies remains an important element in Newcrest's strategy to maximise shareholder returns over the long term. A key objective of the Company's exploration activities is to control large prospective mineral districts in order to secure long term mining operations, while enhancing the potential for further discoveries. After production of 2.29 Moz in the year to end June 2012, for the year ended 30 June 2013, Newcrest as a result of declining grades and depletion, is targeting gold production of 2.32.5 Moz. However, with a number of longer term production expansions coming to fruition production in the year to end June 2017 is expected to grow to 3.1-3.5 Moz.

www.whitman-howard.com

42

6th Feb 2013

The Major Gold Producers

Newmont Mining Corp (NEM-NYSE)


Return on Equity
16.0% 14.0%

Newmont is a major gold producer with operations in Australia, New Zealand, Indonesia, Ghana, US and Canada, Mexico and Peru. During the past decade, Newmont's Asia Pacific region has grown to become the Company's largest asset. Newmont acquired its Australian, New Zealand and Indonesian assets as part of the acquisition of Normandy Mining in 2002, and mining in Indonesia began in the late 1990s. Newmont also has the Martha open pit and Favona underground mines in Waihi, New Zealand.

12.0%
10.0%

ROE %

8.0% 6.0% 4.0% 2.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Newmont Mining Corp.

Source:

Company Data

Boddington Australia's newest gold mine commenced plant start-up in July 2009. At year end 2010 the mine had reserves of 20 Moz of gold. Production began in 1995 from a complex of open pits and two underground mines at Jundee, in the heart of the remote Yandal goldfield. In 2010, Jundee poured 335,153 oz of gold and at year end had proven and probable reserves of 760,000 oz. The Super Pit is a famous landmark in Kalgoorlie-Boulder, 600 km east of Perth. Once known as the "richest square mile of gold on earth," mining of the famous Golden Mine began in the early 1890s. The "Super Pit" and Mount Charlotte underground mine, has since produced nearly 50 Moz of gold. The operation produced 754,000 oz of gold in 2010 and at year end had proven and probable reserves of 7.54 Moz. Approval has been granted and operations commenced on the Golden Pike Cutback. Newmonts Tanami Operations is located on Aboriginal freehold land in the remote Tanami Desert of the Northern Territory. Mining for gold began in the early 1900s and, most recently, from the late-1980s to present day. Production in 2010 was from the Callie underground operation, at Dead Bullock Soak, with ore processed at the Granites Mill, more than 40 km to the east. At the end of 2010, Callie had 2 Moz of compliant gold reserves. In July 2011, a decision was announced to invest $450m on a deep shaft project that has the potential to extend the mine life. On the remote and tropical island of Sumbawa, the PT Newmont Nusa Tenggara (PTNNT) operation at Batu Hijau is surrounded by lush green forest and is close to the beaches of the Indian Ocean. They have been producing copper concentrate that contains small quantities of gold since 2000. At the current production rate, the open pit mine is expected to operate for the next two decades. Waihi Gold includes the Martha open pit and Favona underground mines in the town of Waihi, about 150 km south of Auckland on New Zealands North Island. Historical mining dates back to the 1878. Total production in 2010 was 108,000 oz of gold and 522,129 oz of silver. At the end of 2010, Waihi had proven and probable reserves of 460,000 oz. A new underground project, Trio, can be accessed from the existing Favona portal and has been granted resource and land use consents to proceed. Newmont's Ahafo operation and Akyem project in Ghana, West Africa, comprise about 20% of their core assets worldwide. Developing Ahafo proved challenging, as the ore deposit was located beneath an area inhabited by about 1,700 households from two primary traditional areas, Ntotroso and Kenyase 2, both of which are near the mine. As a result, Newmont Ghana created a range of policies and procedures to resettle and compensate people for losses suffered from development. During the past five years, the Akyem project has been subject to a thorough environmental impact study, public consultation process and an independent review

www.whitman-howard.com

43

6th Feb 2013

The Major Gold Producers

process. Following completion of further economic and power analysis to ensure sustainability, the project will advance to its next phase of development. As early as the 1920s, Newmont had taken interest in a handful of U.S. mining, smelting and gold companies many of which sustained the Company during the Great Depression. By the 1930s, they acquired three more gold companies in Canada, and opened two lead and zinc mines in Colorado. Newmont ventured into Mexico in the late 1940s, when asked by cash-strapped Mobil to help finance offshore drilling. Their most revolutionary North American discovery occurred in the early 1960s, when Newmont geologists discovered in Nevada sub-microscopic, disseminated gold, yielding more than 10 Moz over the next 25 years. Newmont has been pouring gold in Nevada for nearly 50 years along a 100 mile stretch of highway in the north section of the state. Their Nevadan properties operate as an integrated unit, and together, they boast the widest variety of processing methods of any gold mining complex in the world. This allows them to maximise economic recovery of gold from a wide range of ore types and grades. Operations include 14 open pit and four underground mines and 14 processing facilities. In addition to gold, these operations produce silver and copper. Located in Northern Canada, Hope Bay is an 80 km long district in the Canadian Arctic, which Newmont controls 100%. Newmont continues to evaluate development options and economic feasibility for the Hope Bay project, comparatively with other development opportunities within the Company's wider project pipeline. In January 2012, the Company announced care and maintenance funding for the Hope Bay project that will focus on maintaining the highest safety standards, as well as environmental and regulatory compliance for the project. However this project was not included as part of the Companys 2017 strategic growth plan, nor capital expenditure outlook for 2012. Newmont holds a 44% ownership interest in the open pit La Herradura operation, located 400 km south of Mesquite in the northern Mexican state of Sonora. Fresnillo (FRES) owns the remaining interest in the mine and is the operator. On July 23, 2009, Newmont announced the transfer of its interest in Empresa Minera Inti Raymi S.A., which owned the Kori Kollo gold mine and Kori Chaca gold mine in Bolivia, to Compania Procesadora de Minerales S.A., a company controlled by Newmont's long-time Bolivian partner Jose Mercado. Located high in the Andes Mountains of Peru, Yanacocha is the largest gold producer in Latin America. With three active open pits, production has exceeded 26 Moz since the mine opened in 1993. Although just 6 miles away from the city of Cajamarca, much work has been done to build roads and improve basic infrastructure for the operation in the area. The Conga Project in Peru involves surface mining of a large copper porphyry deposit also containing gold that is located 24 km northeast of their Yanacocha Gold Mine, which is also a joint venture between Newmont and Buenaventura. Full funding for the project was approved by Newmonts Board of Directors in July 2011.

www.whitman-howard.com

44

6th Feb 2013

The Major Gold Producers

Nord Gold (NORD)


Return on Equity
30.0% 25.0% 20.0%

Nord Gold is Russias third largest gold producer; it also has operations in Burkina Faso, Guinea and Kazakhstan mainly via their 97.9% holding of High River Gold the minorities of which has been mainly bought in. High River currently has four producing mines. Zun-Holba and Irokinda are situated in the Lake Baikal region of Russia and produce approximately 125,000 oz of gold per annum. Recently, two new open pit gold mines have come into production, TaparkoBouroum in Burkina Faso and Berezitovy in Russia.

ROE %

15.0% 10.0% 5.0% 0.0%

Jun'11

Sep '11

Dec '11 Nord Gold

Mar '12

Jun '12

Sept '12

Source:

Company Data

The Taparko-Bouroum Gold Mine is located in the Namantenga Province of Burkina Faso, West Africa. The mine currently has gold reserves (proven and probable) of 7.1 Mt grading 2.72 g/t containing 629,000 oz of gold. Measured and indicated resources are 9.4 Mt grading 2.48 g/t containing 756,000 oz. The mine is operated by SOMITA SA, a company that is 90% owned by High River and 10% by the Government of Burkina Faso. The Berezitovy property is located in the Tindinski District, Amur Oblast, Russia. The property comprises of one Mineral Licence covering a total area of 1,810 hectares. The mine currently has gold reserves (proven and probable) of 18.3 Mt grading 1.63 g/t containing 963,000 oz of gold. Measured and indicated resources are 21.1 Mt grading 1.58 g/t containing 1 Moz of gold. The Zun-Holba mine is an underground cut and fill mining operation with a conventional carbon-in-pulp (CIP) processing plant. It is located in the Republic of Buryatia, Russia, approximately 315 km by road from the Trans-Siberian Railroad, at the southwest end of Lake Baikal. The mine currently has gold reserves (proven and probable) of 260,000 t grading 9.4 g/t containing 78,000 oz of gold. Measured and indicated resources are 212,000 t grading 12.1 g/t containing 82,000 oz of gold. The Irokinda Mine is a producing underground room and pillar mining operation with a gravity and flotation processing plant. The mine currently has gold reserves (proven and probable) of 322,000 t grading 9.2 g/t containing 95,000 oz of gold. Measured and indicated resources are 200,000 t grading 15.6 g/t containing 100,000 oz of gold. In addition to High River Gold, they own Suzdal which is an underground gold mine in eastern Kazakhstan, approximately 55 km southwest of the city of Semipalatinsk. The open pit mines of Zherek and Balazhal are nearby and are currently under technological review. They acquired Suzdal when they bought Celtic Resources Holdings in January 2008. Acquired earlier in 2007 Nord Gold also owns the Neryungri and Aprelkovo gold mines in Russia. Neryungri is an open pit gold mine in the Republic of Yakutia, approximately 200 km from the town of Chara and is accessible from an all-weather road. Aprelkovo is an open pit gold mine in the Trans Baikal region, about 200 km from the city of Chita and is easily accessible by a paved road. LEFA is an open pit mine operated by Crew Gold and consisting of two material deposits. Nord Gold acquired a 50.17% controlling stake in Crew Gold in July 2010, which was increased in stages to a 93.4% interest by September 2010. In January 2011, they acquired 100% of Crew Gold. LEFA is approximately 700 km northeast of Conakry, Guineas capital and largest city. Commercial production began in 2008.

www.whitman-howard.com

45

6th Feb 2013

The Major Gold Producers

Northern Star Resources (NST-ASX)


Return on Equity
70.0%
60.0%

Northern Star Resources is an emerging mid-tier gold producer and exploration company operating in the highly prospective regions of the Ashburton, Pilbara, Murchison and Kimberley, Western Australia. Northern Stars key operational asset is the high grade, high margin Paulsens Gold Mine. Exploration highlights include the recently acquired Ashburton Gold Project with advanced satellite gold deposits inclusive of low cost historical mines and the Cheroona copper/gold project, located in a potentially emerging copper/gold-rich VMS camp close to Sandfire Resources (SFR-ASX) high grade copper-gold De Grussa deposit in similar host rocks.

50.0%

ROE %

40.0%

30.0%
20.0%

10.0%
0.0% Jun'11 Dec '11 Northern Star Resources Jun '12

Source:

Company Data

Oceana Gold (OGC-ASX)


Return on Equity
14.0% 12.0% 10.0%

OceanaGold is a significant Asia Pacific gold producer with three operating gold mines and a portfolio of development and exploration assets in the South Island of New Zealand and the northern Philippines. OceanaGold has built a strong business in New Zealand, operating three mines Macraes Open Pit, Frasers Underground and the Reefton Open Pit mines. In the northern Philippines, construction of the high grade gold-copper Didipio Project commenced in June 2011 and is expected to commission in Q4 2012.

ROE %

8.0% 6.0%

4.0% 2.0%
0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Oceana Gold

Source:

Company Data

Orvana Minerals (ORV-TSX)


Return on Equity
40.0% 35.0%

Orvana owns and operates the El Valle-Boins/Carls gold-copper project in Northern Spain and the Don Mario Mine in eastern Bolivia, and is developing the Copperwood copper project in the Upper Peninsula of Michigan, United States. Orvanas goal is to grow and diversify its portfolio of precious and selected base metals assets. With a growing pipeline of promising mineral assets and an experienced management team, Orvana is poised to become a multi-mine gold and copper producer.

30.0%
25.0%

ROE %

20.0% 15.0% 10.0% 5.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Orvana Minerals

Source:

Company Data

The El Valle-Boins/Carls Project is located in the Rio Narcea Gold Belt in Northern Spain, close to the port city of Avils. In September 2009, Orvana acquired Kinbauri Gold for the El Valle-Boins/Carls Project, which is an excellent fit with Orvanas strategic growth plans and its experience bringing underground mines into production. The Copperwood Project is located in the western Upper Peninsula, Michigan, USA, approximately 30 kilometres from the inactive White Pine Mine where nearly 2 million tonnes of copper was produced between 1953 and 1996. Orvana acquired the Copperwood project in 2008 by entering into 20 year mineral

www.whitman-howard.com

46

6th Feb 2013

The Major Gold Producers

leases covering 712 hectares within the Western Syncline in the Upper Peninsula of the State of Michigan. In September, 2010, the Company entered into a 30 year mineral lease agreement on 226 hectares east of and adjacent to the Copperwood mineral leases obtained in 2008. In August, 2010, Orvana purchased the surface rights that correspond to the aforementioned 30 year mineral lease, as well as approximately 480 hectares, in order to provide alternatives for infrastructure and access. In February, 2012 the Company announced the results of an NI 43-101 compliant Feasibility study which presents a 13-year underground operation that applies conventional drill-and-blast methods and room-and-pillar mining The Don Mario district is located in the Chiquitos Province of eastern Bolivia and has three main mineral deposits of which the largest is the Don Mario Lower Mineralized Zone (LMZ) low-cost gold mine. This low-cost gold deposit was depleted in the fourth quarter of fiscal 2009 after producing more than 420,000 ounces of gold. The second, lower-grade, Las Tojas gold deposit, commenced production in August 2009 and was depleted in April of 2011. The third deposit, the Upper Mineralized Zone (UMZ) open-pit copper gold-silver deposit commenced Commercial production in January 2012. The UMZ has an estimated mine life of nine years.

Osisko Mining (OSK-TSX)


Return on Equity
10.0% 9.0% 8.0% 7.0%

Osisko Mining Corporation is a mining company based in Montreal, Quebec, Canada. The Company is focused on acquiring, exploring, developing and mining gold properties, with the aim of becoming a leading mid-tier gold producer. Its flagship project is the Canadian Malartic gold mine located in the Abitibi mining district. Following the pouring of the first gold bar in April 2011, commercial production began in May 2012. Canadian Malartic currently represents the single biggest gold reserve in production in Canada with proven and probable reserves of 10.7 Moz of gold, and is still growing through drilling on adjacent mineralised zones.

ROE %

6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Osisko Mines

Source:

Company Data

The Company is also pursuing exploration on a number of properties, including the Hammond Reef Gold Project in Northern Ontario. This project currently hosts a compliant inferred resource of 6.70 Moz of gold, offering Osisko the potential to become a one million ounce per year gold producer by 2016. The company is in the process of acquiring for shares Queenston Mining (QMI-TSX) which has a number of gold exploration targets in the Kirkland East area of Ontario. Queenston is currently actively exploring to extend resources at the upper Beaver, Bidgood and Upper Canada deposits in the Kirkland East camp. To this end it has just closed the sale of its Kirkland Lake assets to Kirkland Lake Gold (KGI) for $60m plus a royalty. At upper Beaver a national Instrument 43-101 compliant Preliminary Economic Assessment modelled a 2,000 tonne per day underground operation costing C$418m estimated at US41,275 per ounce gold and $3/lb. copper, a post-tax Internal rate of return of 22.1% and a $233m after-tax Net Present Value assuming a 5% discount rate. Tax reduced the NPV by 32.2%.

www.whitman-howard.com

47

6th Feb 2013

The Major Gold Producers

Pan African Resources (PAF)


Return on Equity
25.0%

20.0%

Pan African Resources is a precious metals producer operating in South Africa, with a gold exploration project in Mozambique that the Company is looking to divest. The Companys main gold operation is the Barberton mine which first produced gold in 1886, after the discovery of the first gold nugget by Edwin Bray. The Barberton mining complex consists of three mines: Fairview, Consort and Sheba. At present Barberton produces approximately 100,000 oz of gold per annum at an average cash cost of approximately $45/oz. Barberton Mines is the birthplace of BIOX (Biological Oxidation), an environmentally friendly process of releasing the gold from the sulphide that surrounds, using organisms that perform this process naturally. Barberton is still used as the training facility for all BIOX plants globally. The Company owns 100% of Phoenix Platinum who have rights to contained Platinum Group Metals (PGM's) in historical and future chrome tailings produced from the Bushveld in South Africa. A processing plant costing around 8.5m is under construction. At the end of May 2012 Pan African agreed with Harmony Gold Mining (HARJSE/HMY-NYSE) to acquire the deep Witwatersrand style Evander good mine for ZAR 1.5bn (115m). Evander, currently a wholly owned subsidiary of Harmony, mines and produces gold and related products and is located in Mpumalanga, South Africa. Evander's total underground compliant resource represents 32.5 Moz (147 Mt @ 6.88 g/t) and a reserve of 7.6 Moz (29.5 Mt @ 8.02g/t). Its operations comprise, an operating shaft in the form of Evander 8 shaft, which has an expected life of mine of more than ten years and is expected to produce approximately 100,000 oz of gold per annum; various development projects comprising Evander South, Rolspruit and Poplar; surface resources comprising existing tailings dumps, the processing of which is currently being considered in terms of a project named Project Libra; metallurgical processing facilities known as the Kinross plant which uses a hybrid carbon-inpulp/carbon-in-leach (CIP/CIL) process.

ROE %

15.0%

10.0%

5.0%

0.0% Jun'11 Dec '11 Pan African Resources Jun '12

Source:

Company Data

Perseus Mining (PRU-TSX/ASX)


Return on Equity
30.0% 25.0% 20.0%

Perseus Mining is an advanced West African emerging gold producer with two projects at different stages of evaluation and development. Perseus Mining's lead project is the Edikan Gold Mine (EGM), formerly known as the Central Ashanti Gold Project (CAGP), in Ghana, where production started in August 2011 and entered commercial production in January 2012. EGM comprises a group of large gold deposits located in the Ashanti gold belt. Current compliant reserves stand at 3.3 Moz with additional measured and indicated resources totalling 5.6 Moz with additional inferred resources of 1.71 Moz. Part of EGM, the Bokitsi deposit has indicated resources of 212,000 oz of gold and additional inferred resources containing 89,000 oz of gold, while in March 2012 measured and indicated resources at Esuajah North deposit at EGM increased 341,000 oz to 920,000 oz. Located east of EGM, the Grumesa Project has 0.5 Moz of measured & indicated resources and an addition 0.25Moz in the inferred category. The increase at Esuajah North lifted the Companys global measured and indicated resources to more than 6.8 Moz of gold. The Tengrela Gold Project in Ivory Coast has current indicated resource of 0.9 Moz. In addition they have outlined 0.3 Moz of inferred resources at Sissingue and 0.66 Moz

ROE %

15.0% 10.0% 5.0% 0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Perseus Mining

Source:

Company Data

www.whitman-howard.com

48

6th Feb 2013

The Major Gold Producers

in total reserves. Sissingue is the first of nine prospects on the project to be tested by reverse circulation and air core drilling. Perseus has recently progressed its development, lodging an Environmental and Social Impact Assessment with Ivorian authorities in September 2011, and awarding a design contract for the Sissingue processing facility with commercial production at EGM underway, they hope to produce at the initial rate of about 220,000 oz of gold in year one and increase this to about 300,000 ozpa by 2013. The Company is targeting production at Tengrela in 2013. Tengrela has the potential to become a significant contributor to their goal to develop into a 400,000 ozpa gold producer by 2013.

Petropavlovsk (POG)
Return on Equity
16.0%
14.0% 12.0% 10.0%

Petropavlovsk is one of the largest Russian gold producers. The Company produced 630,100 oz of gold in 2011 and is targeting a further increase in gold production in 2012 to 700,000 oz. POG has four mines with their operations based in the Amur region of Eastern Russian. The Company operates four gold mines: Pioneer, Malomir, Pokrovskiy, and Albyn. The projects were acquired as predevelopment and early stage exploration targets. In addition to these mines, Petropavlovsk has a large number of licences to mine alluvial gold.

ROE %

8.0% 6.0%

4.0%
2.0% 0.0% Jun'11 Dec '11 Petropavlovsk Jun '12

Source:

Company Data

The Companys assets contain 10.2 Moz of compliant proven and probable ore reserves at an average grade of 1.13 g/t, 14.4 Moz of measured and indicated resources at an average grade of 1.09 g/t and an additional 10.2 Moz of inferred resources grading 0.83 g/t. The Company also owns a 65.6% stake in IRC (1029-HK), which is a producer and developer of ilmenite and iron ore with core assets also located in the Russian Far East.

Polymetal International (POLY)


Return on Equity
35.0%
30.0%

Polymetal International plc is a leading precious metals producer in Russia and a leading gold producer in Kazakhstan. In 2010, the Company was the fourth largest gold producer in Russia by production volume and its largest silver producer by production volume, ranked eighth worldwide. The Company has increased its annual gold equivalent production from 333,000 oz in 2003 to 810,000 oz in 2011. This is broken down into six main operations: the Dukat (36,000 oz), Amursk (29,000 oz), Omolon (43,000 oz), Voro (157,000 oz), Varvara (92,000 oz) and Khakanja (84,000 oz) gold mines.

25.0%

ROE %

20.0%

15.0%
10.0%

5.0%
0.0% Jun'11 Dec '11 Polymetal Intl Jun '12

Source:

Company Data

www.whitman-howard.com

49

6th Feb 2013

The Major Gold Producers

Polyus Gold (POLG)


Return on Equity
14.0%
12.0%

Polyus Gold is the largest gold producer in Russia and one of the top 10 gold miners globally by ounces produced (1.5 Moz in 2011). The Company holds the worlds third largest gold reserves with about 91 Moz of compliant proven and probable gold reserves. The Company has nine operating mines, in addition to alluvial operations in Russia and Kazakhstan. The Companys primary operations are located in Russias Eastern Siberia, the Far East and Kazakhstan.

10.0%

ROE %

8.0%

6.0%
4.0%

2.0%
0.0% Jun'11 Dec '11 Polyus Gold Jun '12

Source:

Company Data

Olimpiada is Polyus Golds largest operation and is located in the Krasnoyarsk region, Eastern Siberia, Russia. The mine began production in 1996 and currently accounts for over a third of total gold output. The ore mined at the site is processed at two plants with a combined capacity of 8 Mtpa. In 2011 the operation produced 566,000 oz of gold. The open pit operation currently has compliant gold reserves (proven and probable) of 32.1 Moz and gold resources (measured, indicated and inferred) of 47.5 Moz. The Blagodatnoye open pit is located 25 km from Olimpiada and is the Companys second largest mine. Commissioned in July 2010, it currently has a processing capacity of 6 Mtpa of ore. The Company is planning to further expand the production capacity to 8 Mtpa that will increase annual output to 450,000 oz of gold a year, up from the 363,000 oz produced in 2011. Current compliant gold reserves (proven and probable) amount to 9.9 Moz and gold resources (measured, indicated and inferred) stand at 13.1 Moz. Titimukhta is a small open pit operation located in close proximity to the Olimpiada project. The mine was commissioned in 2009 and in May this year Polyus increased mine throughput to 2.4 Mtpa of ore. In 2011 Titimukhta produced 109,000 oz of gold and has compliant gold reserves (proven and probable) of 2.2 Moz and gold resources (measured, indicated and inferred) of 3 Moz. The Verninskoye open pit mine is located in the of Bodaybo area of the Irkutsk region. This greenfield operation is planning to ramp up production throughout 2012 from the existing 2.2 Mtpa, to 3.6 Mtpa of ore. Last year the mine produced 12,000 oz of gold, but has gold reserves (proven and probable) of 5.8 Moz and gold resources (measured, indicated and inferred) of 9.6 Moz. The Company operates many alluvial deposits in the Bodaybo district of the Irkutsk region that have been developed for over 160 years, since the mid-1840s. In 2011, a mining fleet upgrade provided significant increase in gold output from the alluvial operations. 2011 production was 210,000 oz with 1.7 Moz in compliant gold reserves (proven and probable) and 2.9 Moz in gold resources (measured, indicated and inferred). Kuranakh is located in the Yakutia region of north-eastern Siberia. The open pit mine has been producing gold for four decades and currently has a processing capacity of 3.6 Mtpa that produced 117,000 oz of gold last year. Kuranakh has compliant gold reserves (proven and probable) of 1.7 Moz and 6.9 Moz in gold resources (measured, indicated and inferred). Polyus Golds Kazakhstan operations include the Aksu, Bestobe and Zholymbet underground and open pit mines in Northern Kazakhstan and the Akzhal heap leach

www.whitman-howard.com

50

6th Feb 2013

The Major Gold Producers

operation in Eastern Kazakhstan. Overall 2011 gold production from the Companys Kazakh operations amounted to 117,000 oz. Total compliant gold reserves (proven and probable) currently stand at 2.9 Moz, with 8.8 Moz in resources (measured, indicated and inferred).

Primero Mining (PPP-TSX)


Return on Equity
35.0% 30.0% 25.0%

Primero Mining Corp. is a Canadian-based precious metals producer and owns 100% of the San Dimas gold-silver mine in Mexico. San Dimas consists of five ore zones or blocks: San Antonio West, Sinaloa Graben, Central Block, Tayoltita and Arana Hanging Wall block. All mine production is processed through the Tayoltita mill. All of the San Dimas mines are underground operations using mechanised cut-and-fill mining methods. After milling, cyanidation, precipitation and smelting, dor bars are poured and then transported to refineries in the United States. Over the last ten years previous owners Wheaton River and then Goldcorp (G-TSX) invested in a major capital program that has significantly upgraded tailings management, will increase production and achieve a lower cost structure. The San Dimas gold-silver deposit is one of the most significant precious metal deposits in Mexico in a very large 15 km2 mining district. Historical production from the San Dimas district is estimated at 11 Moz of gold and 582 Moz of silver, affirming it as a world class epithermal mining province. The Tayoltita mine is the oldest operating mine in the San Dimas area. The main access is a 4.4 km tunnel from a portal approximately 3 km to the northeast of the Tayoltita mill site. Primero has just announced plans to acquire for shares Cerro Resources (CJOASX/TSX-V), which is developing the Cerro Del Gallo gold project in Mexico. Cerro holds 69.2% of Cerro Del Gallo with Goldcorp (G-TSX) holding the balance. Goldcorp has reduced its holding in Primero to 32.2% and presumably will be diluted further.

ROE %

20.0% 15.0%

10.0% 5.0%
0.0%

Jun'11

Sep '11

Dec '11

Mar '12

Jun '12

Sept '12

Primero Mining

Source:

Company Data

Ramellius Resources (RMS-ASX)


Return on Equity
25.0%

The 100% owned Wattle Dam Gold Mine is located 70 km south of Kalgoorlie and approximately 25km southwest of Kambalda in the Eastern Goldfields of Western Australian. Open cut mining commenced in March 2006. Underground development started in May 2009, and maiden underground ore production occurred in November 2009. Since 2006, Wattle Dam has produced over 225,000 oz of gold and a record annual production of 100,000 oz was achieved in the 2010-2011 financial year. Annualised underground production currently stands at 65,000 oz per year with the mine life extending to December 2013 (1,300oz per vertical metre). Gold production (milled) for the September 2011 quarter was 39,057 tonnes at a recovered grade of 12.4 g/t Au for 15,601 oz produced. Wattle Dam ore contributed 27,967 tonnes at 14.7 g/t for 13,186 oz and non-Wattle Dam sources produced 11,090 tonnes at 6.8 g/t for 2,415 oz. Ramelius purchased Mt Magnet Gold NL and the Mt Magnet gold project from Harmony Gold (Australia) Pty Ltd in July 2010 for A$40 million. The Mt Magnet project has previously produced over 5 million ounces of gold and has potential for significant new discoveries. In April 2011 the Ramelius Board approved the

20.0%

ROE %

15.0%

10.0%

5.0%

0.0% Jun'11 Dec '11 Ramellius Resources Jun '12

Source:

Company Data

www.whitman-howard.com

51

6th Feb 2013

The Major Gold Producers

redevelopment of Mt Magnet, with open pit mining initially focusing on a series of large open pit cutbacks to the Mars, Saturn and Titan pits, collectively referred to as the Galaxy mining area.

Randgold Resources (RRS)


Return on Equity
25.0%

20.0%

Randgold Resources currently operates four gold mines: Morila, Loulo and Gounkoto in Mali and Tongon in the Ivory Coast. The Company is currently developing a fifth mine, Kibali in the Democratic Republic of the Congo (DRC), and this is scheduled to start producing at the end of 2013. The Loulo and Gounkoto mines, also known as the Loulo-Gounkoto complex is located in west Mali, bordering Senegal. Randgold owns 80% of the complex with the State of Mali owning the remaining 20%. Loulo has compliant gold resources (measured and indicated) of 59 Mt grading 4.53 g/t containing 8.6 Moz of gold. Current reserves (proven and probable) stand at 41.7 Mt grading 4.83 g/t and containing 6.4 Moz of gold in-situ. In 2011 Loulo produced 208,000 oz at an average head grade of 2.8g/t and at a total cash cost of $952/oz. Loulo has recently had a third mill commissioned which has increased annual throughput from 330,000 to 450,000 tonnes a month. Gounkoto produced 137,000 oz of gold averaging a head grade of 5.1 g/t, at a total cash cost of $536/oz, in 2011. Compliant gold reserves (proven and probable) stand at 16.9 Mt grading 5 g/t and containing 2.76 Moz of gold in-situ. The project has gold resources (measured and indicated) of 23 Mt grading 5 g/t containing 3.77 Moz of gold in-situ. The Morila mine is located 280 km southeast of the Malian capital, Bamako. The mine is a joint venture between Randgold (40%), AngloGold Ashanti (AGD/ANGJSE/AU-NYSE/AGG-ASX) (40%) and the State of Mali (20%). Randgold has been operating Morila since February 2008. The mine is currently processing stockpiles and reprocessing tailings and in 2011, it produced 248,000 oz of gold at an average grade of 1.9 g/t, with a total cash cost of $782/oz. The Morila mine has compliant gold reserves (proven and probable) of 8 Mt grading 1.2 4g/t containing 320,000 oz of gold in-situ. Measured resources contain 320,000 oz and inferred resources contained 660,000 oz of gold. The Tongon mine is located within the Nielle exploration permit in the north of the Ivory Coast, 55 km south of the border with Mali. Tongon SA is owned by an Ivorian company, Socit des Mines de Tongon SA, of which Randgold has an 89% interest, the government of Cte dlvoire 10% and 1% is held by a local company. The operation produced 250,000 oz of gold with an average grade of 2.9 g/t and a total cash cost of $557/oz. Tongon has compliant gold reserves (proven and probable) of 33 Mt grading 2.6 g/t containing 2.77 Moz of gold. Gold resources (measured and indicated) stand at 36 Mt grading 2.67 g/t containing 3.1 Moz of gold. The Kibali mine development in the DRC is the largest project undertaken to date by Randgold. With a reserve base at plus 10 Moz and still growing, it will rank as one of the largest gold mines in Africa. The Kibali project is a gold development property which covers an area of 1,836 km2 on the Moto Goldfields in the north east of the DRC. It is located some 560 km north east of the city of Kisangani and 150 km west of the Ugandan border town of Arua. Kibali is a joint venture between Randgold (45%), AngloGold Ashanti (45%) and a Congolese parastatal, Sokimo (10%). The project development is being managed by Randgold which will also operate the mine. It is envisaged that the Kibali mine will comprise an integrated open pit and

ROE %

15.0%

10.0%

5.0%

0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Randgold Resources

Source:

Company Data

www.whitman-howard.com

52

6th Feb 2013

The Major Gold Producers

underground operation with the core capital programme scheduled to run over the next four years. The mine is scheduled for commissioning at the end of 2013. It is anticipated that the project will ultimately be supplied by four hydropower stations supported by a thermal power station for low rainfall periods and back-up. The Massawa gold project is a grassroots exploration discovery in eastern Senegal, straddling Randgolds original Kanoumering and Kounemba exploration permits.

Red 5 Limited (RED-ASX)


Return on Equity
4.5%

Red5 Limiteds principal asset is the Siana Gold Project in the Philippines held under a Mineral Production Sharing Agreement (MPSA) by a Red 5 Philippine compliant company. The second asset is the Mapawa MPSA, 30km north of Siana which has the potential to provide satellite ore to the Siana development. The property is also prospective for a gold porphyry discovery. The company is currently without a Chief Executive Officer, but an appointment is imminent.

4.0%
3.5% 3.0%

ROE %

2.5% 2.0% 1.5%

1.0%
0.5% 0.0% Jun'11 Dec '11 Red 5 Limited Jun '12

Source:

Company Data

Regis Resources (RRL-ASX)


Return on Equity
35.0% 30.0% 25.0%

Regis operates the Duketon gold project located in the Laverton region 350 km north-northeast of Kalgoorlie in Western Australia. The project comprises an extensive tenement packaging covering over 2,000 km of ground. Within this tenement package is the Moolart Well Gold Mine and Garden Well Gold deposit and 9 satellite deposits including: Erlistoun, Anchor, Petra, Dogbolter, Russells Find, Reichelts Find, King John, Baneygo and Rosemont.

ROE %

20.0% 15.0% 10.0% 5.0% 0.0% Jun'11 Dec '11 Regis Resources Jun '12

Source:

Company Data

Resolute Mining (RSG-ASX)


Return on Equity
25.0%

20.0%

ROE %

15.0%

Resolute is an unhedged gold producer with three operating gold mines in Australia and Africa. Production of around 410,000 oz of gold is expected in the coming year, which is a 20% increase on the 330,000 oz produced last year. Importantly, the average group cash cost is expected to fall to around $730/oz, from $908/oz recorded in 2011. Improved production outlook is driven by the Syama Gold Project, which is located in the south of Mali, West Africa approximately 30 km from the Cte d'Ivoire border and 300 km southeast of the capital Bamako. Resolute has an 80% interest in the project through its equity in Socit des Mines de Syama S.A. (SOMISY). The Malian Government holds a 20% interest in SOMISY, 15% of which is free carried. Ore for the Syama Operations was sourced from the Syama open pit. Due to the refractory nature of the ore it is treated using conventional four-stage crushing, ballmilling, sulphide flotation and dewatering, roasting, calcine leaching and elution at

10.0%

5.0%

0.0% Jun'11 Dec '11 Resolute Mining Jun '12

Source:

Company Data

www.whitman-howard.com

53

6th Feb 2013

The Major Gold Producers

the targeted rate of 2.4 Mtpa. Better plant throughput and grade are expected in 2012, giving rise to a major lift in production and reduction in cash cost per ounce at this operation. An increase in Syama reserves has extended the overall mine life through the planned deepening of the main pit. This, along with adding an oxide circuit to the plant to treat the ore from deposits discovered along strike of the main pit, should see Syama move to over 300,000 ozpa of production. Plans are also well advanced for a grid power connection at Syama which will deliver significant cost savings and other operational benefits. The Ravenswood gold mine is located approximately 95 km southwest of Townsville and 65 km east of Charters Towers in northeast Queensland, Australia. Resolute has a 100% interest in the mine through its subsidiary Carpentaria Gold. Ore for the Ravenswood Operations was sourced from the Mt Wright underground mine and low grade stockpiles from Sarsfield, Nolans and Bucks Reef. The ore is treated using conventional three stage crushing, ball milling and carbon-in-pulp processing at the rate of 4.5 Mtpa. The Golden Pride mine is located in Tanzania, East Africa, 750 km northwest of the port of Dar es Salaam and 200 km south of Lake Victoria. Resolute has a 100% interest in the project through its Tanzanian subsidiary, Resolute (Tanzania) Limited. Ore for the Golden Pride Operations was sourced from the Golden Pride open pit with supplementary feed from on-site low-grade stockpiles. The ore is treated using conventional crushing, SAG and ball-milling with carbon-in-pulp processing at the rate of 2.4 Mtpa. Golden Pride is moving into its final period of operation. Resolute have an approved closure plan for the operation and are well advanced in work to meet this. Of growing importance in Tanzania is the Nyakafuru project, given the strong gold price. A scoping study on the potential to develop this project utilising a relocated Golden Pride plant is underway. Resolutes exploration budget for the coming year is $20m, which is double that spent in each of the last few years. One of the key targets is for additional oxide resources along the Syama strike, where success has already been reported. Another is further drilling of the breccia pipe targets at Ravenswood, in particular the Welcome Breccia and Golden Valley breccia complex.

Richmont Mines (RIC-TSX)


Return on Equity
25.0%

20.0%

ROE %

15.0%

10.0%

5.0%

In the spring of 2001, Richmont Mines bought 50% of the mining rights of the Perron, Beaufor, Pascalis, Colombire and Courvan properties in Quebec, Canada for C$1.8m. In September 2001, Richmont Mines undertook construction work to secure the crown pillar, and in January 2002, resumed commercial production at the mine jointly with Louvem Mines. The Beaufor Mine has produced gold on an annual basis since then. In June 2010, Richmont became the 100% owner of the Beaufor property, following the Companys acquisition of the outstanding 30% of Louvem shares not previously owned by Richmont
Jun '12 Sept '12

0.0% Jun'11 Sep '11 Dec '11 Mar '12

Richmont Mines

Source:

Company Data

In 1985, drilling approximately 2 km south of the Kremzar Mine in Ontario, Canada intersected a series of sub parallel lenses containing gold mineralisation within deformed rocks of the Goudreau Lake Deformation Zone. These lenses are known as the Lochalsh, Island Gold, Shore, and Goudreau Lake Zones. During 1989 and 1990, an underground infrastructure was built into the Island deposit beneath Goudreau Lake from an adit on the north shore. A bulk sample weighing 4,167 tonnes was extracted and processed at the on-site Kremzar Mill. Encouraging results were obtained from exploration work conducted from 1996 to 2002 and in 2004 an

www.whitman-howard.com

54

6th Feb 2013

The Major Gold Producers

exploration program was initiated in order to complete a resource estimate. In January 2005, Richmont Mines became operator of the project, while commercial production started in October 2007. Richmont acquired Patricia Minings 45% interest in December 2008, becoming 100% owner of the property and operations. The Francoeur property was first staked in 1923 following a gold discovery, which later became known as Zone No.1. A considerable amount of exploration and development has been carried out on the property since this discovery. Successive underground developments over the years have led to the discovery of additional reserves along the Francoeur-Wasa shear zone and several ore bodies were mined. In fact, this property has produced over 500,000 oz of gold from approximately 2.6 Mt of ore with a recovered grade of 6.07 g/t of gold. From 1991 through to 2001, Richmont produced more than 345,000 oz of gold from the No. 3 Deposit, one of the main ore bodies located in the Francoeur-Wasa shear zone. Despite the discovery of the West Zone at the time, commercial production at the Francoeur Mine was stopped in 2001, when the prevailing gold price was under $300/oz. As a result of the higher gold price over the last few years, Richmont reassessed the resources of the Francoeur Mine. In 2009, in order to update the information on the West Zone, Richmont completed a compliant technical report. After more than two months of preparation work, dewatering of the mine began in July 2009, and was completed at the end of May 2010. Surface infrastructure for the mine has been fully recommissioned, and drift excavation to reach the West Zone began in July 2010. After a phase of definition drilling and stope preparation, gold production from the West Zone was expected to begin in Q3 2012, but owing to high costs Richmont decided to mothball the mine. Richmont is also the 100% owner of the adjacent Arncoeur and Norex properties, which cover the lateral and down-dip extensions of the known gold mineralisation.

Rio Alto Mining (RIO-TSX/BVL)


Return on Equity
100.0%
90.0%

Rio Alto Mining is a Canadian based resource company focused on the development of the 21,000 ha La Arena gold / copper project, located in north central Peru, the most prolific gold mining district in the country. The district is home to a number of world class and medium size gold mines including Barrick Gold's (ABX-NYSE) Lagunas Norte Mine, 15 km west of La Arena (2011 production: 763,000 ounces of gold), Newmont's (NEM-NYSE) Yanacocha Mine, 100 km to the north (2009 production: 2.1 Moz of gold), and 10 km to the north of the privately owned La Virgen Mine (2010 production: approx. 81,000 ounces of gold).

80.0%
70.0%

ROE %

60.0%
50.0%

40.0%
30.0% 20.0% 10.0% 0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Rio Alto Mining

Source:

Company Data

La Arena contains 3.9 Moz of gold and 2.0 billion pounds (bnlbs) of copper in measured & indicated resources with additional inferred resources of 2.2 Moz gold and 2.1 bnlbs of copper. First gold production at La Arena occurred in May 2011 and 114,081 oz of gold was poured during the first two quarters of 2012. Rio Alto is also in the business of acquiring, exploring, and developing gold resources and advanced stage projects in Peru and Latin America.

www.whitman-howard.com

55

6th Feb 2013

The Major Gold Producers

St Andrew Goldfields (SAS-TSX)


Return on Equity
40.0%
35.0% 30.0% 25.0%

St Andrew Goldfields (SAS) is a Canadian based gold mining and exploration Company with an extensive land package in the Timmins mining district, northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt. SAS currently operates the Holt, Holloway and Hislop Mines, and is targeting annual gold production of 90,000- 100,000 oz for 2012. SAS is also advancing its exploration activities on this exciting 120 km long package which straddles the Porcupine-Destor Fault Zone, host to numerous gold deposits and mines in the region. The Company, using its extensive geological database, targeted exploration at numerous sites and has focused the 2012 exploration program on areas that lie in close proximity to the existing mines and infrastructure, and to follow up on advanced exploration projects to add to the resource and reserve levels. In 2011 the Company increased its resource levels by 34%, and advanced the Taylor Project through the pre-feasibility stage.

ROE %

20.0% 15.0% 10.0%

5.0%
0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

St Andrew Goldfields

Source:

Company Data

St Barbara (SBM-ASX)
Return on Equity
25.0%

20.0%

ROE %

15.0%

St Barbara is one of Australias largest ASX listed gold producers and explorers. St Barbara's key assets include its Leonora and Southern Cross Operations, both of which are located in Western Australia. It has Mineral Resources of 7.6 Moz of gold including Ore Reserves of 2.8 Moz of gold as at end June 2011, as well as an extensive landholding comprising granted tenements and tenement applications of over 5,000 km. The Leonora Operations comprise the Gwalia 1.2 Mtpa processing plant, the Gwalia underground mine and the King of the Hills mine, as well as nearby development opportunities. St Barbara's Gwalia gold mine was successfully commissioned in October 2008, with production expected to exceed 175,000 oz in financial year 2012. Gwalia is the cornerstone asset for St Barbara with an indicative mine life exceeding nine years and high grade mineralisation below the current reserves. King of the Hills commenced production in June 2011 and is expected to produce 55,000 to 60,000 oz, over its remaining life of at least 4 years. The Southern Cross Operations comprise the Marvel Loch 2.2 Mtpa processing facility, the Marvel Loch underground mine and a number of development opportunities. The Southern Cross Operations have produced a minimum of 120,000 oz for each of the last four years. Currently the two gold operations produce in aggregate over 250,000 oz of gold per annum. At the end of June 2012, St Barbara announced an agreed bid for Allied Gold (pitched at a 92.3% premium over the previous days Allied Gold share price. Post announcement the St Barbara share price has fallen almost 40%, but from mid July 2012 has shown signs of recovery. Allied Gold had two prime producing assets, the Simberi gold mine in Papua New Guinea and the Gold Ridge mine on the Solomon Islands. Simberi was commissioned in February 2008 and has produced over 250,000 oz of gold to date. The project is located in the Tabar Islands group which is 60 km from Lihir Island. Allied is currently undertaking a feasibility study for incorporating a 2.4 million tonne per annum (Mtpa) roaster that will allow gold bearing sulphide ores to

10.0%

5.0%

0.0% Jun'11 Dec '11 St Barbara Jun '12

Source:

Company Data

www.whitman-howard.com

56

6th Feb 2013

The Major Gold Producers

be processed. In addition, an expansion of the oxide processing facilities to 5 Mtpa could allow +300,000 oz per annum from Simberi. The project currently has 6 Moz of measured, indicated and inferred resources. In late 2009, Allied Gold acquired TSX listed Australian Solomons Gold and their 110,000 oz per annum Gold Ridge mine on Guadalcanal Island. Allied spent A$150m refurbishing the plant to lift throughput from 2 Mtpa to 2.5 Mtpa and this was completed in March 2011. The mine is expected to produce 100,000 oz of gold in 2012.

San Gold Corp (SGR-TSX)


Return on Equity
2.0%
1.8%

1.6%
1.4%

ROE %

1.2%
1.0%

Mining operations are located in the Rice Lake Greenstone Belt, 250 km northeast of Winnipeg in Bissett, Manitoba, Canada. The Rice Lake Mine, which has formed the core of mining operations since 1934, now provides an extensive network of workings that extends deep below the surface and accesses a large number of ore bodies. Many new high-grade, near surface discoveries have been made recently outside the project's historic mining unit in the Hinge district, the 007 deposit, in the Hanging Wall deposits and along the Normandy Creek Shear. Production has increased rapidly as these new discoveries have been brought online.

0.8%
0.6% 0.4% 0.2% 0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

San Gold Corp

Source:

Company Data

Saracen Mineral Holdings (SAR-ASX)


Saracen Mineral Holdings Limited is a Western Australian mid-tier gold producer with production beginning at the Carosue Dam gold project in early 2010. The Companys assets span the world class mining district of South Laverton situated 120 km North East of Kalgoorlie. This includes around 200 granted tenements and applications pending spread over 2,500 km2. In February 2006, Saracen purchased its tenement holdings including the 2.4 Mtpa Carosue Dam processing facility, accommodation village and other related mine infrastructure.

Return on Equity
40.0%

35.0%
30.0% 25.0%

ROE %

20.0% 15.0%

10.0%
5.0% 0.0% Jun'11 Dec '11 Saracen Minerals Jun '12

Further to this, the Companys exploration and development efforts have seen substantial increases in gold resources and reserves, presently standing at around 3.6 Moz and 825,000 oz respectively. Saracen completed a Definitive Feasibility Study on the South Laverton gold project in December 2008 and quickly progressed to achieve gold production at a rate of around 120,000 ozpa from the first quarter of 2010. The Whirling Dervish deposit is located 1 km to the North of the Carosue Dam processing plant. The ore zone is of considerable width (25-30m) with grades above 2 g/t. The open pit provides a low cost mill feed source in close proximity to the processing facilities. Stage 1 of the Whirling Dervish pit was mined at the recommencement of operations in early 2010. Mining of stage 2 of the Whirling Dervish pit will be concluded by the end of 2011, with options being considered for the third stage of the pit to be mined during 2012. Karari pit was previously mined in several stages over four years by Sons of Gwalia and was one of the original pits that constituted the justification for the construction of the Carosue Processing facility in 1999. The pit lies approximately 0.5 km to the South of the Carosue Dam processing plant, with all ore being directly hauled to the

Source:

Company Data

www.whitman-howard.com

57

6th Feb 2013

The Major Gold Producers

mill in mining trucks. Historically, this was a high tonnage deposit which lends itself to additional cutbacks and potentially a bulk mining method for an underground operation. Over its four year life 4.7 Mt of ore averaging 1.8g/t equating to 278,000 oz, were mined from the Karari deposit. 2012 will see an underground scoping study completed to assess the viability of an underground operation at Karari. The Twin Peaks deposit is located approximately 12.5 km to the north of the Carosue Dam processing facility. Saracen has been unable to drill at the highly prospective Twin Peaks deposit, since it acquired ownership of the Carosue Dam assets in 2006, due to constraints deriving from heritage issues associated with the Lake Rebecca exclusion zone. Saracen has been working through a Section 18 application with the Department of Indigenous Affairs and has recently been granted access to explore on these tenements and drilling recommence in late 2011. The Porphyry deposit lies approximately 48 km north of the Carosue Dam processing plant. The Porphyry mining area has a long history of gold mining, having been mined intermittently over the past 75 years. Porphyry is a large mineralised body with published resources of around 435,000 oz and open pit reserves of 78,000 oz. Phase 1's pit design has a strip ratio of 1.6:1 with the overall open-cut strip ratio of 3:1. Saracen commenced mining of stage 1 of the Porphyry deposit cutback late in 2009. A new section of haul road was constructed early in 2010, between the Carosue Dam processing plant and the Porphyry mine, connecting Porphyry into the existing haul road network. This haul road also connected the Wallbrook, Margaret, Million Dollar and Enterprise deposits into the haulage network at Carosue Dam. The Million Dollar deposit is located approximately 1 km to the south of the Porphyry Pit. An existing shallow pit was mined by Edjudina Gold Mines at Million Dollar during the late 1980s at the same time as mining was taking place underground at Porphyry. During this time approximately 133,000 t @ 2.02 g/t for 8,600 oz were mined from Million Dollar. The Enterprise deposit lies approximately 4 km to the East of the Porphyry deposit. Mining at Enterprise commenced March quarter 2011, with production planned to be conducted whilst mining both the Porphyry and Margaret deposits, enabling scheduling flexibility as well as synergies to be drawn from shared office and workshop facilities. The Margaret deposit is located approximately 4 km to the East of the Porphyry pit and lies 300 metres to the west of the Enterprise deposit. The Wallbrook mining centre is located approximately 11 km south of Porphyry and 40 km north of the Carosue plant; it was acquired in 2007 from Jackson Gold. The Wallbrook area consists of four known deposits, Eleven Bells, Redbrook, Red Flag, and Crusader, all within a 2 km strike distance. Mineralisation at Wallbrook extends to surface and provides the plant with easily accessible oxidised material required for blending purposes. There is significant upside potential at Wallbrook with mineralisation extensions possible at depth and laterally. Saracens interpretation of the ore zone suggests that it is more suited to taking larger mechanised zones at a lower cut-off grade. The Porphyry haul road was constructed between the Carosue Dam plant and the Porphyry pit early in 2010 and traverses to the west of Wallbrook and will provide access back to the Carosue Dam processing plant approximately 36 km to the South. Deep South is located approximately 80 km north of the Carosue Dam processing plant and is accessible via the Safari Bore haul road. An open pit was mined at Deep

www.whitman-howard.com

58

6th Feb 2013

The Major Gold Producers

South in 2004 by Sons of Gwalia and produced a little over 300,000 t of ore at a grade of 2.6 g/t for 25,000 oz of gold. Saracen plans to mine a cutback around this pit in the current life of mine plan. Safari Bore was also previously mined by Sons of Gwalia and is located 4 km to the West of Deep South. There is potential for a cut-back to be mined on the existing pit, which would have synergies if mined concurrently with the nearby Deep South pit. Red October open cut is situated on the margins of Lake Carey approximately 120 km north east of the Carosue Dam processing plant and 15 km south of the Sunrise Dam operations. Scoping studies have identified potential for an underground operation. The Butcher Well gold project lies approximately 10 km to the south west of the Red October deposit and hosts a group of gold deposits, including Old Camp, Enigmatic, Hronsky, Enigmatic North, Sizzler, Butcher Well North, Marchaleyo and Jericho, all of which are situated within a 4.5 km strike in a north-south direction. Three open pits, Hronsky, Enigmatic, and Butcher Well North, were mined as part of the Butcher Well group of deposits in the 1990s, for a combined total of 0.69 Mt at 2.84g/t, for approximately 63,000 oz of gold, by Mt Burgess. A significant exploration program is to be conducted in 2012 in an attempt to delineate sufficient reserves to justify the construction of a northern processing plant. The proposed Red October haul road is planned to run from Safari Bore to Butcher Well, which will then link Butcher well to the existing Carosue Dam haulage network. The Tin Dog deposit is strategically located between Saracen's Red October and Deep South deposits, just to the West of the planned Red October haul road, with any gold discoveries potentially being mined as part of a larger gold mining and processing operation in the northern area

www.whitman-howard.com

59

6th Feb 2013

The Major Gold Producers

SEMAFO (SMF-TSX)
Return on Equity
25.0%

20.0%

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. The Mana property is located approximately 200 km west of Ouagadougou, the capital of Burkina Faso. It is host to their flagship Mana Mine, an open pit mining operation inaugurated in mid-2008.

ROE %

15.0%

10.0%

5.0%

0.0% Jun'11 Sep '11 Dec '11 SEMAFO Mar '12 Jun '12 Sept '12

Source:

Company Data

The permitted property at Mana currently covers 2,119 km of land over the prospective Hound belt. In September 2011, they announced plans to increase Mana's processing capacity by 6,000 tpd to 14,000 tpd which could produce as much as an additional 120,000 ozpa. The Samira Hill Mine is located on the 50 km gold belt commonly referred to as the Samira Horizon. It is approximately 90 km west of Niamey, the capital of Niger. The Kiniero Mine is located in central Guinea, approximately 650 km east of the capital of Conakry.

Signature Metals (SBL-ASX)


Return on Equity
100.0% 90.0%

80.0%
70.0%

ROE %

60.0%
50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Jun'11 Dec '11 Signature Metals Jun '12

Signature Metals has assembled a package of quality resource projects in Africa. The Companys flagship asset is the 70% owned Konongo Gold Project in the world class Ashanti Gold Belt of Ghana. The Company also controls large exploration licences and applications in Kenya and Uganda that are prospective for iron ore, nickel and copper. Signature is 76% owned by LionGold Corp Past production from Konongo totalled 1.6 million ounces at a head grade of 11.8 g/t gold and the Company is focussed on developing it into a plus 100,000 ozpa gold producer from the existing JORC Resources of over 1.2 Moz. The Konongo Gold Project comprises 192 km of granted tenure and contains 16 known gold deposits along 12 kilometres of strike of the Ashanti Gold Belt. The project currently has JORC compliant resources of 23.4 Mt at a grade of 1.95 g/t in the indicated and inferred categories for a total of 1.47 Moz of gold. Additionally, significant infrastructure remains on site including a 350,000 tpa CIL plant.

Source:

Company Data

www.whitman-howard.com

60

6th Feb 2013

The Major Gold Producers

Silver Lake Resources (SLR-ASX)


Return on Equity
18.0%

Silver Lake has just merged with Integra Resources, with Silver Lake becoming the successor company. Silver Lake is an ASX 200 gold producing and exploration company with a resource base of 4.5 Moz in highly prospective regions including Mount Monger and Murchison goldfields and the Great Southern district of Western Australia. Silver Lake's strategy is to develop large production centres at Mount Monger, in the Murchison and the Great Southern with multiple mines at each centre.

16.0%
14.0% 12.0%

ROE %

10.0% 8.0% 6.0%

4.0%
2.0% 0.0% Jun'11 Dec '11 Silver Lake Resources Jun '12

Source:

Company Data

Silver Lake's Mount Monger underground operation contains the Daisy Milano, Daisy East, Rosemary & Haoma mines and is situated 50 km south east of Kalgoorlie. Mount Monger has additional multi mine potential underpinned by emerging open pit production from the Wombola Dam, Wombola Pit and Magic deposits. Gold ore from Mount Monger is transported to Silver Lake's 900,000 tpa Lakewood Gold Processing Facility located 5 km south east of Kalgoorlie and 45 km from the Daisy Milano mine. Lakewood is currently undergoing stage two of its upgrade to take it to a 1,000,000 tpa processing facility by 2013. In the Murchison, Silver Lake's strategy to develop a second mining operation with multiple mines feeding a central processing facility will be realised with mining infrastructure well underway with expected first production date in early 2013. Accordingly, the focus is on extending resources, particularly below 100 metres depth, to sustain a 100,000 ozpa operation. A 1.2 Mtpa mill has been acquired for this project and is currently being refurbished. Silver Lake's exploration programme is targeting 5 Moz Au in resource by 2013. In addition, there is significant potential to increase the resource beyond that target over time. Integra Mining poured first gold from its flagship Randalls Gold Project 60 km east of Kalgoorlie, Western Australia in September 2010. Commissioning of the project was completed at the end of February 2011, with commercial production commencing in March 2011. The Randalls Project has a consolidated gold resource of 27 Mt grading 2.4 g/t gold for 2.1 Moz, with Integra forecasting an average cash production cost of $750-850/oz for FY2012. For much of FY13, process facility feed will be sourced 50-50 from the high-grade Maxwells open pit and the stockpile of medium-grade ore. This will maintain a circa 2.7 g/t gold head grade. A 25% upgrade of their Salt Creek processing facility to 1 Mtpa was completed in August 2011. Pre-stripping of the Majestic open pit is expected to commence in March 2013 and will provide initially modest volumes of higher-grade feed. This will replace the mill feed from the stockpiled ore from around May 2013 onwards and will result in higher feed grades going into FY2014, as Majestic ramps up to full production capacity. As the Majestic gold deposit approaches full production, the cash cost of production is forecast to be maintained at around $750/oz in the June quarter 2013, as expected feed grades increase to plus 3 g/t gold. Integra has a strong track record of discovery success within its tenements, including Salt Creek in 2007, the Majestic discovery in 2010 and more recently the Imperial discovery in 2011. The Majestic and Imperial discoveries are located 22 km to the north of the Randalls Gold Processing Facility. An inferred maiden resource of 260,000 oz at 2.1 g/t gold was announced for the Majestic Deposit in January 2011. Integra will maintain an active exploration program in the region to further increase

www.whitman-howard.com

61

6th Feb 2013

The Major Gold Producers

its resource and reserve base to drive production growth and extend the life of its mining operations.

Tanami Gold (TAM-ASX)


Return on Equity
1.2% 1.0% 0.8%

The Company's 100% owned Coyote Gold Project is located in northern Western Australia. Coyote is an underground mining operation which feeds into the Company's centrally located 350,000 tpa treatment plant. Over the past twelve months, a number of operational improvements at the Coyote gold mine have resulted in the significant increase in gold production, a decrease in operating costs and a steady underground development program. The Company has improved key components of its infrastructure, developed a robust and greatly enhanced conceptual exploration model targeting additional underground resources and has embarked on a significant replacement and rebuilding program for its underground mining equipment. The Central Tanami Project is the Company's advanced flagship development asset, acquired in March 2010 from Newmont Asia Pacific. The 100% owned Project is located in the Northern Territory approximately 90 km east of the Coyote Gold Mine. Between 1987 and 2005 approximately 2.0 Moz were mined from 43 open pits. When combined with the plus 10 Moz endowment of Newmont's CallieGranites production centre - which occurs within a geologically similar host sequence - the region is one of the most productive gold mining centres in Australia.

ROE %

0.6% 0.4% 0.2% 0.0% Jun'11 Dec '11 Tanami Gold Jun '12

Source:

Company Data

Teranga Gold Corp (TGZ-TSX/ASX)


Return on Equity
35.0%
30.0% 25.0%

Teranga Gold Corporation is a Canadian-based gold company which was created to acquire the Sabodala gold mine and a large regional exploration land package, located in Senegal, West Africa. The Sabodala gold mine, which came into operation in 2009, is located 650 km east of the capital of Senegal, Dakar, within the West African Birimian geological belt in Senegal, and about 90 km from major gold mines in Mali. As of end December 2011, the Sabodala gold mine had proven and probable reserves of approximately 1.70 Moz of gold included in measured and indicated resources of 2.14 Moz and inferred mineral resources of 1.51 Moz. In addition to the Sabodala Mine License, the Company holds one of the largest exploration land positions in south-eastern Senegal with a direct, or majority controlling joint venture, interest in eleven exploration permits currently permitting exploration activity on approximately 1,330km. Management believes that the combination of its operations and prospective land position provides the basis for growth in reserves, production, earnings and cash flow as new discoveries are made and processed through the Companys existing mill.

ROE %

20.0% 15.0% 10.0% 5.0% 0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Teranga Gold Corp

Source:

Company Data

www.whitman-howard.com

62

6th Feb 2013

The Major Gold Producers

Timmins Gold (TMM-TSX/TGD-NYSE)


Return on Equity
50.0%
45.0%

40.0%
35.0%

ROE %

30.0%
25.0%

Timmins Gold Corp is strategically positioned for continuous growth as a gold production and development company. Focused in Mexico, the Company owns and operates the San Francisco Gold Mine in Sonora State, an open pit heap leach operation from which Timmins Gold has scheduled annual production in excess of 100,000 ounces of gold. Exploration success has significantly increased gold resources and reserves in all categories. Current drilling around the mine is expected to further increase reserves and resources. Timmins Gold will also be exploring on a regional scale on its approximately 200,000 hectares of claims contiguous to the Mine along the highly prolific Northern Sonora Gold District. Timmins Gold has also commenced drilling on their San Onesimo property in Zacatecas located by Goldcorp's (G-TSX) Peasquito mine and near its Camino Rojo deposit. Timmins Gold's growth plans consist of current drilling at San Francisco, advancement of its other exploration projects and accretive transactions.

20.0%
15.0% 10.0% 5.0% 0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Timmins Gold

Source:

Company Data

Troy Resources (TRY-ASX/TSX)


Return on Equity
25.0%

20.0%

Troy Resources is a junior gold producer with operations at Andorinhas in Para State, Brazil and Casposo in San Juan Province, Argentina. In March 2009 Troy announces it has reached agreement with Intrepid to acquire its 100% interest in the Casposo deposit in San Juan Province in Argentina, funded out of cash reserves. The Andorinhas Project is located in the Para State of north central Brazil, close to the town of Rio Maria and covers an area of 138,178 hectares. The project has a JORC defined resource, calculated by Snowden Mining, of 4 Mt grading 3.4 g/t and containing 435,000 oz of gold.

ROE %

15.0%

10.0%

5.0%

0.0% Jun'11 Dec '11 Troy Resources Jun '12

Source:

Company Data

www.whitman-howard.com

63

6th Feb 2013

The Major Gold Producers

Unity Mining (UML-ASX)


Return on Equity
16.0%

14.0%
12.0% 10.0%

ROE %

8.0% 6.0%

Unity Mining Limited is an Australian gold explorer and producer which owns and operates the Henty Gold Mine on the West Coast of Tasmania and is involved in gold exploration in West Africa through its investment in GoldStone Resources (GRL). Unity also holds tenure over the Bendigo Goldfield in Victoria where it has embarked on a plan to realise the value of its Kangaroo Flat gold plant and Bendigo exploration tenements. The Henty Gold Mine has produced about 1.2 million ounces of gold over a 15 year period. Unity Mining acquired Henty in July 2009. Recent exploration success has significantly extended the mine life, and continued exploration on the significant near mine tenement package remains a key focus. The company has just merged with Cortona Resources who are developing the Dargues gold project in New South Wales.

4.0%
2.0% 0.0% Jun'11 Dec '11 Unity Mining Jun '12

Source:

Company Data

Veris Gold (VG-TSX)


Return on Equity
90.0%
80.0% 70.0%

Veris Gold is the renamed Yukon Nevada Gold whose primary asset is the permitted and operating Jerritt Canyon gold mine located 50 miles north of Elko, Nevada, USA. The Company also holds a diverse portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the former producing Ketza River mine. The Company's focus has been on the re-development of the Jerritt Canyon mining and milling facility.

60.0%
ROE %
50.0% 40.0%

30.0%
20.0% 10.0% 0.0% Jun'11 Sep '11 Dec '11 Veris Gold Mar '12 Jun '12 Sept '12

Source:

Company Data

Yamana Gold (YAU)


Return on Equity
12.0%
10.0%

Yamana Gold has a diversified portfolio of assets providing sustainable gold production supported by a large resource base. Production is expected to increase by over 60% to be at a sustainable level of approximately 1.75 million gold equivalent ounces by 2014. The 100% owned Chapada open pit gold-copper mine located northwest of Braslia in Gois State, Brazil began commercial production in 2007. Annual capacity of the flotation plant was increased to 22 Mtpa in 2010, a 10% increase over 2009 and 38% higher than the feasibility study throughput level. Early in 2011, the mine plan was updated to maintain the increased throughput level for the next 15 years with the integration of output from the Suruca gold deposit, which is expected to start contributing to production in 2014. Suruca is located 6 km northeast of Chapada and was discovered in 2009. The high grade underground gold-silver El Pen mine is located in northern Chile, 160 km southeast of Antofagasta. Commercial production began in 2000, and an expansion of the Merrill-Crowe processing plant to 4,500 tpd was completed in 2010.

8.0%
ROE %
6.0%

4.0%
2.0% 0.0% Jun'11 Sep '11 Dec '11 Mar '12 Jun '12 Sept '12

Yamana Gold

Source:

Company Data

www.whitman-howard.com

64

6th Feb 2013

The Major Gold Producers

Exploration continues to extend and upgrade known deposits and make new discoveries such as the Pampa Augusta Victoria and Elizabeth vein systems. The Mercedes gold-silver mine in northern Sonora State commenced production in November 2011 with commercial production from February this year. Gold is extracted by agitated leaching with counter current decantation and Merrill-Crowe processing. Yamana anticipates continued exploration success will increase the mine life and annual production. The Gualcamayo mine, an open pit, heap leach, gold operation with three substantial zones of gold mineralisation, is located in the northern San Juan province of Argentina. Commercial production began in 2009, after 20 months of construction. In 2010 a decision was made to develop the underground QDD Lower West deposit, located below the main open pit, which will increase expected annual production to over 200,000 ozpa beginning in 2014. The Jacobina mine in Bahia State in north-eastern Brazil consists of a complex of underground gold mines and a 6,500 tpd carbon-in-pulp processing plant. Commercial production began in 2005. The higher grade Lagartixa zones were discovered in 2009. In 2010, mineral resources were upgraded at the Morro do Vento and Canavieiras deposits. Mineral reserves increased 20% in 2011, with a 10% increase in mineral reserve grade. Since acquisition of the mine, gold mineral reserves have increased 64%, representing a five year consecutive increase. These grade increases are expected to facilitate higher future production levels. Located 73 km south of Santiago in central Chile, Minera Florida is an underground gold-silver mine which has been in operation for over 20 years. The very high grade Victoria vein structure was discovered in 2010, adding to previous exploration successes and increasing grade and total mineral resources. Planning is underway to re-process tailings, which will increase annual production by up to 40,000 oz beginning in April 2012. Ore is treated in a 2,000 tpd plant incorporating flotation and the Merrill-Crow process. Located in Bahia State in northeast Brazil, the Fazenda Brasileiro underground gold mine has been in operation for over 20 years, and has consistently replaced its mineral reserves as they have been mined. Two new discoveries in 2009 include the Lagoa do Gato and CLX2 zones, the latter being easily and immediately accessible from existing mine workings, suggest there is potential to continue this trend. Total gold mineral reserves increased by 104% in 2011. Ore is processed in a 3,500 tpd carbon-in-pulp plant. Located in northwest Argentina, Yamana maintains a 12.5% equity interest in the Alumbrera mine (Xstrata (XTA) 50% and Goldcorp (G-TSX) 37.5%). The operation commenced open pit mining in 1997 and is one of the worlds largest copper and gold mining operations, and is amongst the worlds lowest cash cost copper producers. Annual dividends from the Alumbrera property contribute to cash flow helping to fund further gold production growth. Yamana is acquiring TSX listed Extorre Gold Mining. Extorre has exploration and development stage precious metals projects, the most advanced of which is its Cerro Moro project, a high grade, gold silver deposit with approximately 1.36 Moz of gold equivalent indicated mineral resources and 1.05 Moz of gold equivalent inferred mineral resources, located in the province of Santa Cruz in Argentina.

www.whitman-howard.com

65

6th Feb 2013

The Major Gold Producers

Appendix 2

Annualised Return on Shareholders Funds

Name African Barrick Gold Agnico Eagle Alacer Gold Alamos Gold Allied Nevada Gold AngloGold Ashanti Apex Minerals Argonaut Gold Atna Resources Aura Minerals AuRico Gold Aurizon Mines Avocet Mining B2 Gold Banro Corp Barrick Gold Besra Gold Brigus Gold Buenaventura Centamin Egypt Centerra Gold CGA Mining China Gold International Coeur D'Alene Mines Crocodile Gold DRD Gold Dundee Precious Metals Dynacor Gold Mines Eldorado Gold Endeavour Mining Evolution Mining Gold Fields Gold One Gold Resource Corp Goldcorp. Golden Star Resources Gryphon Gold Harmony Gold Mining

Sept '12 12.50% 8.20% 16.80% 8.90% 13.40% 29.50% 2.40% 0.00% 6.10% 6.20% 0.00% 10.60% 0.00% 9.80% 0.00% 16.20% 20.50% 24.70% 0.00% 11.70% 7.90% 0.00% 0.00% 13.40% 8.20% 50.50% 5.20% 0.00% 12.20% 31.80% 8.90% 0.00% 0.00% 6.40%

Jun '12 4.70% 5.30% 9.80% 16.60% 4.10% 21.90% 0.00% 13.20% 8.50% 0.00% 3.90% 10.00% 0.90% 9.30% 0.00% 12.10% 0.00% 0.80% 17.80% 18.20% 0.00% 0.00% 3.90% 4.30% 0.00% 18.50% 1.20% 27.30% 3.20% 3.90% 3.00% 18.40% 0.00% 18.00% 4.90% 2.20% 0.00% 8.40%

Mar '12 9.70% 15.00% 21.00% 8.30% 45.30% 12.40% 8.80% 0.00% 8.20% 0.20% 0.00% 11.70% 0.00% 17.00% 0.00% 10.80% 25.20% 0.00% 21.10% 0.70% 4.00% 25.30% 0.00% 14.20% 1.80% 43.30% 4.70% 0.00% 14.20% 65.20% 8.80% 8.20% 0.00% 10.30%

Dec '11 1.90% 0.00% 20.20% 15.30% 12.60% 17.60% 0.00% 26.50% 10.90% 0.00% 52.50% 13.50% 12.70% 17.00% 0.00% 3.80% 11.70% 4.70% 15.30% 18.90% 4.10% 1.80% 7.80% 28.70% 0.00% 35.10% 12.50% 2.80% 10.30% 0.00% 0.00% 21.80% 4.80% 174.30% 7.00% 6.80% 0.00% 15.00%

Sep '11 0.00% 12.00% 4.20% 10.80% 36.50% 12.50% 7.00% 0.00% 13.20% 22.60% 7.70% 10.70% 0.00% 24.70% 0.00% 28.10% 22.30% 23.00% 0.00% 5.90% 7.60% 27.80% 0.00% 22.50% 21.80% 51.10% 12.90% 10.00% 28.10% 109.60% 6.40% 0.00% 0.00% 18.30%

Jun'11 9.10% 7.20% 18.00% 12.60% 2.70% 39.70% 36.50% 12.50% 7.30% 1.30% 7.70% 9.50% 21.80% 18.60% 0.00% 21.90% 0.00% 0.00% 26.60% 20.70% 26.00% 7.40% 8.70% 1.80% 0.50% 0.00% 5.20% 87.70% 9.70% 8.80% 0.00% 11.60% 8.00% 24.50% 9.50% 0.00% 0.00% 5.00%

www.whitman-howard.com

66

6th Feb 2013

The Major Gold Producers

Name High River Gold Mines Highland Gold IAMGOLD Jaguar Mining Kingsgate Consolidated Kingsrose Mining Kinross Lake Shore Gold Luna Gold Mandalay Resources McEwen Mining Medusa Mining Nevsun Resources New Dawn Mining New Gold Inc. Newcrest Mining Newmont Mining Corp. Nord Gold Northern Star Resources Oceana Gold Orvana Minerals Osisko Mines Pan African Resources Perseus Mining Petropavlovsk Polymetal Intl Polyus Gold Primero Mining Ramellius Resources Randgold Resources Red 5 Limited Regis Resources Resolute Mining Richmont Mines Rio Alto Mining St Andrew Goldfields St Barbara San Gold Corp Saracen Minerals SEMAFO

Sept '12 18.00% 9.40% 0.00%

7.10% 0.00% 13.50% 29.50% 0.00% 29.10% 0.00% 3.00% 14.40% 24.50%

Jun '12 17.50% 12.30% 6.60% 0.00% 9.70% 28.90% 3.70% 0.00% 51.10% 67.80% 0.00% 17.70% 27.90% 5.80% 4.00% 7.50% 11.50% 0.00% 23.20%

Mar '12 27.90% 27.90% 14.30% 4.70%

3.40% 0.00% 0.00% 0.00% 0.00% 30.50% 1.40% 5.70% 15.00% 20.50%

Dec '11 15.00% 26.80% 14.90% 0.00% 10.50% 34.70% 0.00% 0.00% 0.00% 2.80% 0.00% 14.90% 35.60% 5.40% 5.50% 8.90% 0.00% 8.40% 60.90%

Sep '11 25.50% 22.40% 6.00% 0.00%

5.60% 0.00% 11.30% 54.50% 0.00% 46.50% 26.40% 7.70% 14.20%

Jun'11 22.10% 23.50% 57.90% 19.50% 0.00% 16.50% 6.60% 0.00% 0.00% 9.30% 0.00% 43.00% 54.90% 9.80% 14.70% 6.50% 10.80% 0.00% 62.30%

0.00% 0.00% 6.00% 0.00%

8.20% 16.60%

0.90% 21.70% 16.20% 0.00% 5.10%

0.60% 37.50% 3.10% 18.50% 0.00% 1.70% 9.40% 9.40% 11.20% 0.00% 19.70% 4.10% 28.70% 20.90% 0.00% 64.20% 11.80% 22.80% 0.00% 8.90% 0.00%

0.00% 6.90% 15.60%

14.20% 15.60%

5.90% 87.10% 7.50% 0.00% 17.80%

12.10% 0.00% 9.10% 13.20% 27.90% 13.80% 11.10% 11.70% 28.60% 7.40% 21.10% 0.00% 19.70% 23.50% 18.20% 0.00% 36.60% 17.20% 1.50% 9.70% 20.60%

9.40% 2.30% 0.00%

30.10% 20.70%

20.60% 0.00% 25.90% 1.90% 20.20%

3.60% 0.00% 0.00% 23.10% 0.00% 14.40% 31.10% 7.00% 3.60% 19.60% 23.40% 0.00% 16.30% 15.40% 18.20% 0.00% 0.00% 19.60% 0.00% 37.90% 22.10%

www.whitman-howard.com

67

6th Feb 2013

The Major Gold Producers

Name Signature Metals Silver Lake Resources Tanami Gold Teranga Gold Corp Timmins Gold Troy Resources Unity Mining Veris Gold Yamana Gold
Source: Company Data

Sept '12

31.20% 39.20%

37.00% 3.10%

Jun '12 0.00% 16.10% 0.00% 17.60% 20.70% 23.70% 14.50% 0.00% 2.30%

Mar '12

0.00% 17.40%

0.00% 9.00%

Dec '11 0.00% 9.50% 0.00% 18.50% 44.50% 19.60% 10.60% 0.00% 4.20%

Sep '11

0.00% 16.30%

0.00% 6.30%

Jun'11 0.00% 10.70% 1.00% 0.00% 29.60% 0.00% 0.00% 80.50% 10.60%

www.whitman-howard.com

68

6th Feb 2013

The Major Gold Producers

www.whitman-howard.com

69

6th Feb 2013

The Major Gold Producers

Disclaimer
I, Roger Bade hereby certify that the views about the companies and their securities discussed in this report are accurately expressed and I have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Whitman Howard publishes investment recommendations, which reflect the analysts assessment of a stocks potential absolute total return. Our research offers 3 recommendations: BUY stocks are expected to have an absolute total return of at least 20%. HOLD stocks are expected to have an absolute total return of between 0-20%. SELL stocks are those which expect to produce a negative return. The time horizon for which the recommendation is deemed valid is 12 months unless otherwise specified in the particular research. Information relating to any company or security is for information purposes only and should not be interpreted as a solicitation to buy or sell any security or to make any investment. The Information in this communication has been compiled from sources believed to be reliable but it has not been independently verified. No representation is made as to its accuracy or completeness, no reliance should be placed on it and no liability is accepted for any loss arising from reliance on it. All expressions of opinion are subject to change without notice. Opinion may be personal to the author and may not reflect the opinions of Whitman Howard Limited (WHL). WHLs Research publications are not for Retail Clients as defined by the Financial Services Authority (FSA). The information contained in research publications are obtained from various sources believed to be reliable, but have not been independently verified by WHL. WHL does not warrant the completeness or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information, except to the extent required by applicable law. Research publications are for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of any securities, or for engaging in any other transaction. Research publications are not for private individuals. Any opinions, projections, forecasts or estimates in research reports are those of the author only, who has acted with a high degree of expertise. They reflect only the current views of the author at the date of the report and are subject to change without notice. WHL has no obligation to update, modify or amend any publication or to otherwise notify a reader or recipient of a publication in the event that any matter, opinion, projection, forecast or estimate contained herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. The analysis, opinions, projections, forecasts and estimates expressed in research reports were in no way affected or influenced by the issuer. The authors of research publications benefit financially from the overall success of WHL. The investments referred to in research publications may not be suitable for all recipients. Recipients are urged to base their investment decisions upon their own appropriate investigations that they deem necessary. Any loss or other consequence arising from the use of the material contained in a research publication shall be the sole and exclusive responsibility of the investor and WHL accepts no liability for any such loss or consequence. In the event of any doubt about any investment, recipients should contact their own investment, legal and/or tax advisers to seek advice regarding the appropriateness of investing. Some of the investments mentioned in research publications may not be readily liquid investments. Consequently it may be difficult to sell or realize such investments. The past is not necessarily a guide to future performance of an investment. The value of investments and the income derived from them may fall as well as rise and investors may not get back the amount invested. Some investments discussed in research publications may have a high level of volatility. High volatility investments may experience sudden and large falls in their value which may cause losses. International investing includes risks related to political and economic uncertainties of foreign countries, as well as currency risk. To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of research publications or their contents. WHL has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research business. Chinese Wall procedures are in place between the research analysts and staff involved in securities trading for the account of WHL or clients to ensure that price sensitive information is handled according to applicable laws and regulations. United Kingdom: Research publications are for persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Articles 19(5) (Investment professionals) and 49(2) (High net worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. Any investments to which the research publications relate are available only to such persons, and other classes of person should not rely on the research publications. For the purpose of UK regulation, WHL produces both independent and non-independent research which is a marketing communication under the FSA Conduct of Business rules and has not been prepared in accordance with the legal requirements to promote independence of investment research nor is it subject to the prohibition on dealing ahead of the dissemination of investment research. However, the firm does have procedures in place to manage conflicts which may arise in the production of research, please refer to WHL research policy, which, inter alia, prevents dealing ahead. The research and conflicts of interest policies can be obtained from the Compliance Officer at WHL. Authorised and regulated by the Financial Services Authority No. 514466. Registered in England & Wales No. 06944529. EU Investors: This communication is issued by Whitman Howard Limited which is authorised and regulated in the United Kingdom by the Financial Services Authority in connection with its distribution and for the conduct of designated investment business in the European Economic Area. The registered address Whitman Howard Limited is 8th Floor, Marble Arch Tower, 55 Bryanston Street, London, W1H 7AA. Other countries: Laws and regulations of other countries may also restrict the distribution of this report. Persons in possession of Research publications should inform themselves about possible legal restrictions and observe them accordingly.

www.whitman-howard.com

70